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Sunworks Reports Third Quarter 2017 Financial Results

Published on 15 Nov 2017
Sunworks 
Sunworks, Inc. announced financial results for the third quarter and nine months ended September 30, 2017.

Q3 2017 Summary:

- Revenue of $18.8 million, an increase of 7.1% compared to $17.6 million recorded in the year-ago quarter

- Gross margin of 16.5% compared to 26.5% in the year-ago quarter 

- Net loss of $2.0 million compared to net loss of $6.1 million in the year-ago quarter

- Record backlog at September 30, 2017 of $63.8 million

Chuck Cargile, Sunworks Chief Executive Officer said, "Several projects totaling approximately $4 million, which we expected to begin during the quarter slipped into the fourth quarter. In addition, we experienced more than $1 million of cost over-runs on four large projects completed in the quarter, which began in the first half of 2016. One of my primary initiatives since joining Sunworks as its new CEO in April was to improve our processes and controls and to strengthen our organization to enhance the predictability of our financial results. This process is taking longer than anticipated, but I am confident that orders scheduled to be installed going forward will benefit from stronger processes."

Mr. Cargile continued, "I remain optimistic about Sunworks' future. We booked a record $38 million in new sales during the third quarter, resulting in our record backlog for projects scheduled to be completed primarily in the next 12 months. The increasing sales momentum we are experiencing reflects our progress in penetrating new public works programs and the continued strength of our ACI business. In addition, we continue to manage our operating expenses to ensure greater profitability as the record new sales convert to increasing revenue. Lastly, I am very encouraged by the strong profit performance from our residential business which delivered revenue of $6.6 million in the quarter and almost $1 million of operating profit."

Third Quarter 2017 Summary

Revenue from ACI customers represented approximately 65% of total revenue and revenue from residential customers represented 35% for the third quarter of 2017. 

Gross profit was $3.1 million, or 16.5% gross margin, for the three months ending September 30, 2017 compared to $4.7 million, or 26.5% gross margin, for the three months ending September 30, 2016. The decrease in gross margin was primarily a result of approximately $1.3 million in cost overruns on certain large projects originally began in 2016, which were completed in the quarter.

Net loss for the three months ending September 30, 2017 was $2.0 million, or $0.09 per share versus a net loss of $6.1 million, or $0.29 per share, for the corresponding period in 2016.

Year-to-Date 2017 Summary

Revenue for the nine months ending September 30, 2017 was $58.2 million compared to $68.0 million for the nine months ending September 30, 2016. Gross profit was $12.6 million, or 21.7% of sales, for the first nine months of 2017 compared to $19.4 million, or 28.5% of sales, for the first nine months of 2016.

Net loss was $3.8 million, or $0.17 per share for the first nine months of 2017 compared to the net loss of $5.7 million or $0.29 per share, for the same period last year.

Balance Sheet

The company had $6.4 million in cash and cash equivalents as of September 30, 2017 compared to $11.1 million as of December 31, 2016. In the third quarter of 2017 the cash balance increased by $2.2 million.

As of September 30, 2017, the company had $2.2 million of debt outstanding, inclusive of convertible debt, compared to $2.3 million as of December 31, 2016.


Source: SUNworks
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