SUNW stock is moving higher in early trading on January 8, 2020, after the company announced $11.5 million in new commercial projects in December.
Sunworks, Inc. (Nasdaq: SUNW), a provider of solar power solutions for agriculture, commercial and industrial (ACI), public works and residential markets, today announced that the company has been awarded commercial project wins of $11.5 million in new commercial projects during the final month of 2019.
The company noted that more than 40 new ACI contracts were signed in December bringing the fourth quarter new bookings total to more than $20 million – marking the highest level of new project wins in seven quarters.
Chuck Cargile, Sunworks Chief Executive Officer, noted, “We closed 2019 with momentum on the new orders front and enter the year with an estimate of more than $44 million of ACI and Public Works backlog scheduled for installation in 2020. Included in the total was a $6 million project for an agricultural producer in Nevada. This solar system will substantially reduce the company’s utilities costs associated with field irrigation and protect against future utility rate increases. The remaining project wins vary in size and scope and reflect the success of the year-end push by our sales team.”
Mr. Cargile continued, “Our bookings growth is encouraging. However, we are expecting our fourth quarter 2019 revenue, gross margin and Adjusted EBITDA to decline sequentially from the third quarter of 2019, primarily as a result of delays related to PG&E approvals and permits. Prior to these delays, our expectations were that revenue and gross margin would increase sequentially from the third quarter of 2019 and that our Adjusted EBITDA would be positive. Importantly, we anticipate lower sequential operating expenses in the fourth quarter of 2019, and we expect our cash balance as of December 31, 2019 to be higher than the third quarter of 2019.”
On November 26, 2019, Sunworks, Inc. (Nasdaq: SUNW) announced it has received approval to commence construction of a public works project for a state-sponsored institution in Northern California. This project was secured through an established Sunworks development partner. As part of this multi-megawatt project Sunworks will construct multiple carports and parking canopy systems that will directly reduce energy costs and advance sustainability goals for our customer.
Sunworks’ Chief Executive Officer, Chuck Cargile said, “The public works market in California continues to grow as renewable energy initiatives and state mandates to reduce greenhouse gas emissions advance. The scale and scope of public works projects represent a significant opportunity for Sunworks and further demonstrates the progress we have made in establishing and cultivating relationships with influential partners. Increasingly, government-owned and sponsored facilities are seeking solutions to reduce carbon footprints and lower operating costs, creating a growing opportunity for Sunworks. We are particularly pleased with this project due it’s size, the revenue it will contribute in the first half of 2020, and the fact that it is a follow-on project with one of our key development partners.”
Sunworks has extensive experience as an engineering, procurement and construction contractor partnering with solar power developers that specialize on public sector agencies to construct solar projects in California.
On November 21, 2019, Sunworks, Inc. (Nasdaq: SUNW) announced it has been awarded an engineering, procurement and construction (EPC) contract to develop a 653kW ground mount solar system for a privately-held dairy farm in California’s Central Valley.
Sunworks’ Chief Executive Officer, Chuck Cargile, said, “This project expands our agricultural, commercial and industrial (ACI) pipeline, and reinforces our presence in the California market. The system will reduce operating costs for Lima Ranch Dairy and enable them to better control the costs and access to electricity. We expect to recognize revenue related to this project in the second and third quarters of 2020.”
Mr. Cargile continued, “We are experiencing strong new project orders in the fourth quarter of this year, increasing our backlog for revenue in 2020.”
Lima Ranch Dairy Farm Owner, Jack Hamm, said, “Milking is an energy intensive process and the expense required to run compressors, refrigeration, water pumping, and ventilation systems is one of our highest recurring operating costs. The implementation of solar allows us to reduce that expense while promoting clean, renewable energy. Sunworks has a strong reputation and long track record for helping similarly sized growers and processors integrate agriculture-optimized solar technology that are cost effective. From our first meeting, it was clear that they understood our challenges and sustainability goals which made them a no brainer partner for this project.”