Announces Participation in the 30th Annual ROTH
Conference on March 12th Company Schedules Fourth-Quarter and
Full-Year 2017 Earnings Release and Conference Call for March 28th
Sunworks, Inc. (Nasdaq:SUNW), a provider of solar power solutions
for agriculture, commercial and industrial (ACI), public works and
residential markets, today provided an update based on unaudited
financial results for the fourth quarter and full year of 2017 and
its expectations for 2018.
Chuck Cargile, Sunworks Chief Executive Officer said, “2017 was
an important and pivotal transition year for Sunworks that included
significant restructuring and operational enhancements that will
position us for profitable growth in 2018. I am encouraged with the
progress we are making and believe our results in 2018 will reflect
the benefits of our efforts. While the independent audit of our
financial results is substantially complete, an annual investor
conference is taking place before we will report our results for
the fourth quarter and audited full year, so we are providing the
following update.”
2017 Update:
- Revenue for the fourth quarter of 2017 is expected to be
slightly higher than the $18.4 million recorded in the prior year
fourth quarter and net loss for the quarter is expected to be less
than the $3.7 million loss in the fourth quarter of
2016.
- Full year revenue is expected to decline approximately 10% from
the prior year $86.4 million. The company noted that the
overall solar industry experienced significant disruption during
2017, primarily resulting from the ongoing discussions related to
tariffs and quotas on imported panels. The tariff issue was
decided in January 2018.
- Gross margin for the full year of 2017 is expected to decline
because of many older projects completed in the second half of 2017
at profit levels well below original expectations.
- Operating expenses for the full year are expected to decline by
approximately $10 million, or one-third, because of the company’s
aggressive restructuring of the business during the year.
Excluding stock-based compensation, the company anticipates total
operating expenses to decline more than 20% year-over-year.
Chuck Cargile, Sunworks Chief Executive Officer
said, “As previously disclosed, we conducted a thorough review of
all projects in process and in backlog during the second half of
2017 to ensure that all cost estimates and percentages of
completion were appropriate. As a result, we incurred significant
charges that negatively impacted our gross margins for the third
and fourth quarter of the year. Based on this in-depth review, we
believe the gross margins in the second half of 2017 will reflect a
low-water mark and we will deliver improved gross margins over the
course 2018. In addition, we have put in place a rigorous review
and approval process for all new projects to ensure that going
forward, all cost estimates are acceptable and will only lead to
better gross margins throughout the life of the project. Also,
during the second half of the year, we significantly re-aligned our
cost structure. We anticipate our fourth quarter operating expenses
will be approximately 30% lower than the prior year fourth
quarter. Our total employee headcount today is almost 20
percent below the peak in August of 2017. We have made cuts
in our discretionary spending, reduced the size of our board of
directors and streamlined our management team, all while
maintaining our ability to improve our business and serve our
customers.”
2018 Expectations:
- New projects booked in the first quarter are expected to exceed
$30 million, with the majority expected to result in installation
revenue in 2018.
- Based on backlog and the momentum of new sales, the company
expects full year revenue to increase in the range of 10 percent to
20 percent year-over-year.
- The company expects to be profitable for the full year of
2018.
Commenting on the outlook for 2018, Mr. Cargile
stated, “We are happy to have 2017 behind us and are optimistic
about our position for 2018. The negative overhang from the trade
tariff decision appears to be dissipating and the results of our
internal improvement initiatives are taking hold. We have
significant momentum in terms of new orders, having already booked
more than $25 million of new projects in 2018, including one new
project exceeding $10 million and several other
multi-million-dollar projects. We also expect to benefit from the
profit improvement actions implemented in 2017. While we are
experiencing typical first quarter seasonality to start to the
year, we expect our enhanced business discipline, processes and
controls to lead to more predictable and profitable results. We are
excited about the opportunities for Sunworks in 2018 and
beyond.”
ROTH Conference Presentation and
Webcast
Chuck Cargile, Chief Executive Officer will present at the 30th
Annual ROTH Conference on Monday, March 12, 2018 at 12:30 pm PT
(3:30 pm ET). An audio webcast of the company’s group
presentation will be broadcasted live and will be achieved for at
least 90 days on the investor relations section of the Sunworks
website at http://ir.sunworksusa.com.
Investors attending the conference who wish to
meet Mr. Cargile for a one-on-one meeting should contact their ROTH
sales representative or Hayden IR at sunw@haydenir.com.
Fourth Quarter and Full Year 2017
Earnings Release
The Company expects to report its fourth quarter
and full year 2017 financial results after the market closes on
Wednesday, March 28, 2018.
Management will host a conference call to
discuss these results on Wednesday March 28, 2018 at 5 p.m. ET (2
pm PT). To access the call, please dial 1-877-407-0778 (toll free)
or 1-201-689-8565. The conference call will also be broadcast live
over the Internet, which can be accessed via the Investor Relations
section of Sunworks’ web site at http://ir.sunworksusa.com. All
participants should call or access the website approximately five
minutes before the conference begins.
The webcast will be available for replay for at
least 90 days. A telephonic replay of this conference call will
also be available by dialing 1-877-481-4010 (toll free) and using
the replay ID #26784 until 5 p.m. ET on April 11, 2018.
About Sunworks, Inc.
Sunworks, Inc. (NASDAQ:SUNW) is a premier
provider of high performance solar power systems. We are committed
to quality business practices that exceed industry standards and
uphold our ideals of ethics and safety.
Sunworks continues to grow its presence,
expanding nationally with regional and local offices. We strive to
consistently deliver high quality, performance-oriented solutions
for customers in a wide range of industries including agricultural,
commercial and industrial, federal, public works, and
residential.
Our dedication to excellence is reflected in our
25-year warranty, a benchmark that we stand by to support our
customers above and beyond their expectations.
Sunworks’ diverse, seasoned workforce includes
distinguished veterans who bring a sense of pride, discipline, and
professionalism to their interaction with customers.
All our employees uphold our company’s guiding
principles each day. Sunworks is a member of the Solar Energy
Industries Association (SEIA) and is a proud advocate for the
advancement of solar power. For more information, visit
www.sunworksusa.com
Safe Harbor Statement
Matters discussed in this press release contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. When used in this press
release, the words "anticipate," "believe," "estimate," “will,”
"may," "intend," "expect" and similar expressions identify such
forward-looking statements. Actual results, performance or
achievements could differ materially from those contemplated,
expressed or implied by the forward-looking statements contained
herein. Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, these statements are
based largely on the expectations of the Company and are subject to
a number of risks and uncertainties. These risks include, but are
not limited to, risks and uncertainties associated with: the impact
of economic, competitive, regulatory, environmental and other
factors affecting the Company and its operations, markets,
products, and prospects for sales, lower revenues, failure to earn
profit, higher costs than expected, persistent operating losses,
ownership dilution, inability to repay debt, failure of acquired
businesses to perform as expected, the inability to complete
projects within anticipated timeframes and costs, the impact of
tariffs imposed by governmental bodies, the impact on the
national and local economies resulting from terrorist actions, and
U.S. actions subsequently; and other factors detailed in reports
filed by the Company. We also refer you to the risks described in
“Risk Factors” in Part I, Item 1A of Sunworks, Inc.’s Annual Report
on Form 10-K and in the other reports and documents we file with
the Securities and Exchange Commission from time to time.
Any forward-looking statement made by us in this
press release is based only on information currently available to
us and speaks only as of the date on which it is made. We undertake
no obligation to publicly update any forward-looking statement,
whether written or oral, that may be made from time to time,
whether as a result of new information, future developments or
otherwise.
Investor Relations Contact:
Rob Fink Hayden IR646-415-8972
rob@haydenir.com
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