Sunworks, Inc. announced financial results for the first quarter ended March 31, 2018.
Chuck Cargile, Sunworks Chief Executive Officer said, "Our first quarter 2018 financial results were consistent with our expectations - marked by low seasonal installation revenue but also reflected lower operating expenses for the third straight quarter and a near 50% increase in new project bookings compared with the first quarter of 2017. We are confident that the new project bookings secured in the first quarter will drive higher quarterly revenue and operating profit in subsequent quarters."
First Quarter 2018 Summary:
- New bookings of $37.5 million reported for the first quarter of 2018 - an increase of 45.9% versus the $25.7 million reported in the prior year first quarter.
- Revenue of $13.4 million for the first quarter of 2018 declined 6.3% versus the comparable period of 2017 due primarily to continued weakness in the overall market for residential solar installations.
- Gross margin of 17.9% for the first quarter of 2018 versus 19.4% for comparable period of 2017. The company noted that there were no significant negative adjustments to cost of sales during the quarter indicating that the clean-up of estimates for jobs in progress was concluded in the fourth quarter of 2017.
- Selling, general and administrative expenses of $4.1 million for the first quarter of 2018 declined 23.8% versus the comparable period of 2017.
- Management noted that although it is difficult to predict the quarterly timing of installation revenue, they expect to generate more than $72 million of revenue in the remaining quarters of 2018, which will represent a double-digit percentage increase compared with the full year of 2017.
- Management expects the company to generate positive earnings before interest, taxes, depreciation, amortization and stock compensation expense (Adjusted EBITDA) for the full year of 2018.
- The company expects to generate positive cash flow for the remainder of 2018.
Commenting on the outlook for 2018, Mr. Cargile stated, "We are far from complete with the transformation of Sunworks, but we continue to make positive progress. After the end of the first quarter, we secured a $3.75 million loan, which is non-dilutive to our shareholders and will provide us with the liquidity we need to complete the installations from our current projects in progress as well as the high level of new project bookings we have received in 2018. We also strengthened our board of directors with the addition of Daniel Gross and Joshua Schechter. While one-time expenses related to this financing and the changes to our board may impact our profitability in the second quarter, our focus is to return to sustainable profitability in the second half of the year and generate positive cash flow from operations. We are well positioned to achieve positive adjusted EBITDA for the full year of 2018 and we are committed as an organization to enhance value for all of our shareholders."