Leading Solar
EPC is Focused on Constructing our Energy Future and Profitable
Growth Opportunities
The Peck Company (or “Peck” or
“the Company”) (NASDAQ:PECK), a leading commercial solar
engineering, procurement and construction (EPC) company, today
provided an update to investors on the Company’s business and
strategic growth plan as a public company.
“The Peck Company is focused
on constructing our energy future by building solar power systems
required for our world’s clean energy transformation,” said Jeffrey
Peck, Chief Executive Officer. “We are committed to transparent
communications with our investors and we want all of our
stakeholders to have a clear view of Peck’s business, our proven
track record of profitable growth and our roadmap for continued
growth as a public company.”
The Peck Company Business Overview and History
The Peck Company is the
largest commercial solar EPC company in the Northeast and ranked
60th in the U.S. by Solar Power World. Peck is a second-generation
family business founded in 1972 by Harvey Peck as a traditional
electrical contractor. The Company’s core values are to align
people, purpose, and profitability, and since taking leadership of
Peck in 1994, CEO Jeffrey Peck has applied these core principals to
Peck’s expansion into the solar industry. Today, Peck is guided by
the mission to facilitate the reduction of carbon emissions through
the expansion of clean, renewable energy and believes leveraging
its core values to deploy resources toward profitable business is
the only sustainable strategy to achieve these
objectives.
The Peck Company primarily
provides EPC services to solar energy customers for projects
ranging in size from several kilowatts for residential loads to
multi-megawatt systems for large commercial and utility projects.
To date, Peck has installed over 100MW of solar systems since
inception and is focused on profitable growth
opportunities.
Peck has tripled in size since
2007 by growing its solar customer base starting in 2013 and
continuing to serve the needs of existing electrical and data
customers. Jeffrey Peck made the decision to enter the solar EPC
business only after equipment costs dropped to the point where
installation could be profitable. Peck has installed some of the
largest commercial and utility-scale solar arrays in the state of
Vermont. The Company’s reliable union crews are expert
constructors, and union access to an additional workforce makes The
Peck Company ready for rapid expansion to other Northeast states
while maintaining control of operating costs.
Peck also makes prudent
investments in solar development projects and currently owns
approximately three megawatts of operating solar arrays operating
under long-term Power Purchase Agreements (“PPAs”). The reliability
of these long-term recurring revenue streams combined with Peck’s
in-house development and construction capabilities makes this asset
class a strategic long-term investment opportunity for
Peck.
Approximately 70% of the
Company’s revenue is derived from solar business, approximately 30%
of revenue is derived from electrical and data business and less
than 1% of revenue is currently derived from recurring revenue of
company-owned solar arrays.
Growth Strategy
The Peck Company is
strategically positioned geographically in the Northeast. Peck has
historically operated exclusively in Vermont, which is one of the
most attractive states for investment in solar arrays, with
industry analysis suggesting over a 14% Internal Rate of Return
(IRR) on solar investment in the state and an 8 year project
payback. Almost the entirety of the Northeast region of the country
is ranked in the top 10 markets based on return metrics to the
array owner, including the top 3 markets which include
Massachusetts (1), New Jersey (2), and Rhode Island (3), in
addition to New York, which is the largest regional market and
ranked 8th. By leveraging Peck’s existing infrastructure and labor
relationships with the International Brotherhood of Electrical
Workers (IBEW), the Company is uniquely positioned to expand into
these important addressable markets with limited investment in
additional infrastructure or capital equipment.
Peck’s capabilities allow for
expansion into high-growth adjacent markets. The Company’s core
capabilities have developed Peck’s business in solar array
installation, traditional electric, and data services. Peck is
well-positioned to deploy these capabilities to other large,
rapidly growing renewable end markets; namely EV charging stations
and energy storage. Both of these markets represent adjacent, high
growth expansion opportunities for Peck, and both require minimal
investment of resources, infrastructure or capital spend given its
complementary nature to Peck’s existing capabilities.
The Peck Company is deploying
a multi-pronged growth strategy with the following core
pillars:
- Organic growth by leveraging existing relationships to expand
across the northeast;
- Accretive M&A of other profitable businesses to expand
geographic footprint, capabilities, and cash flow; and
- Investment into solar arrays that produce a steady stream of
recurring revenue.
Organic growth from Peck’s existing customers will come from
national developers requesting EPC services for project sizes
ranging from the residential to the utility scale. The ideal
project size range for Peck is from 100kW to 10MW, which is
considered commercial to small utility and is where the scale,
margin, and risk are optimized. In addition, Peck remains
opportunistic for smaller residential projects when marketing costs
are minimized or for larger utility projects when margins can be
preserved.
Additionally, accretive M&A activity is an important focus
for Peck in order to accelerate revenue growth and cash flow. While
geographic expansion is prioritized for the Northeast, prudent
acquisitions in other geographies will also be considered depending
on the strategic fit and profitability characteristics.
The goal of solar array asset investments is long-term recurring
revenue from the sale of power produced by the array asset. Peck’s
EPC capabilities provide the company with a unique investment
opportunity in the renewable energy space because Peck can enter
the solar array value chain at any scale or stage. De-risked
fully-operational solar arrays with reliable off-takers can be
purchased by and operated by Peck. The Company believes it has the
flexibility and capability to be opportunistic about prudent solar
array asset investments at any stage.
Jeffrey Peck concluded, “We
are pleased to provide this update to investors and look forward to
sharing our progress as we execute our growth strategy.”
About The Peck Company
Headquartered in South Burlington, VT, The Peck Company, is a
2nd-generation family business founded in 1972 and rooted in values
that align people, purpose, and profitability. Ranked by Solar
Power World as the largest commercial solar contractor in the
Northeast and one of the largest in U.S., The Peck Company provides
engineering, procurement and construction (EPC) services to solar
energy customers for projects ranging in size from several
kilowatts for residential loads to multi-megawatt systems for large
commercial and public works projects. The Peck Company has
installed over 100MW of solar systems since inception and is
focused on profitable growth opportunities. Please visit
www.peckcompany.com for additional information.
Forward-Looking Statements
This press release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, which are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, as amended. Words or phrases such as
"may," "should," "expects," "could," "intends," "plans,"
"anticipates," "estimates," "believes," "forecasts," "predicts" or
other similar expressions are intended to identify forward-looking
statements, which include, without limitation, earnings forecasts,
effective tax rate, statements relating to our business strategy
and statements of expectations, beliefs, future plans and
strategies and anticipated developments concerning our industry,
business, operations and financial performance and condition.
The forward-looking statements included in this press release
are based on our current expectations, projections, estimates and
assumptions. These statements are only predictions, not guarantees.
Such forward-looking statements are subject to numerous risks and
uncertainties that are difficult to predict. These risks and
uncertainties may cause actual results to differ materially from
what is forecast in such forward-looking statements, and include,
without limitation, the risk factors described from time to time in
our filings with the Securities and Exchange Commission, including
our Annual Report on Form 10-K.
All forward-looking statements included in this press release
are based on information currently available to us, and we assume
no obligation to update any forward-looking statement except as may
be required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20190625005572/en/
Media: Cory Ziskind ICR cory.ziskind@icrinc.com
646-277-1232
Investors: Michael Callahan ICR
michael.callahan@icrinc.com 203-682-8311
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