UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 13, 2017
SUNWORKS, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 001-36868 | 01-0592299 | ||
(State or other jurisdiction of incorporation or organization) |
(Commission File Number) |
IRS Employer Identification No.) |
1030 Winding Creek Road, Suite 100 Roseville, CA |
95678 | |
| (Address of Principal Executive Offices) | (Zip Code) |
(916) 409-6900
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| [ ] | Written communications pursuant to Rule 425 under the Securities Act |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition.
On March 13, 2017, Sunworks, Inc. (the “Company”) issued a press release announcing its preliminary unaudited full-year 2016 results and outlook for 2017. A copy of the Company’s press release is attached as Exhibit 99.1 to this current report on Form 8-K.
The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as expressly set forth in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| 99.1 | Press Release dated March 13, 2017 |
| 2 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| SUNWORKS, INC. | ||
| Date: March 13, 2017 | By: | /s/ James B. Nelson |
| Name: | James B. Nelson | |
| Title: | Chief Executive Officer | |
| 3 |
Exhibit 99.1
Sunworks Announces Preliminary Unaudited Full-Year 2016 Results and Provides 2017 Outlook
ROSEVILLE, CA —(Marketwired - March 13, 2017) - Sunworks, Inc. (SUNW), a leading provider of solar power solutions, today announced preliminary financial results for the fourth quarter and 12 months ended December 31, 2016.
Based on preliminary, unaudited financial information, the Company expects:
Full Year 2016
| ● | Revenue of approximately $86.5 million, an increase of 61% compared to $53.7 million in 2015 | |
| ● | Adjusted EBITDA loss of approximately $1.6 million compared to adjusted EBITDA of $2.6 million in 2015 | |
| ● | Order backlog as of December 31, 2016 of $48.5 million, compared to $47.5 million as of December 31, 2015 |
Fourth Quarter 2016
| ● | Revenue of approximately $18.5 million, compared to $17.3 million for the three months ended December 31, 2015 | |
| ● | Adjusted EBITDA loss of approximately $2.9 million, compared to positive EBITDA of $1.5 million for the three months ended December 31, 2015 |
2017 Outlook
| ● | Management expects full year 2017 revenue to increase more than 30% versus 2016 and anticipates Sunworks will be profitable for the full year | |
| ● | Current order backlog of approximately $60 million, reflecting an all-time record in secured, future revenue |
Jim Nelson, Sunworks’ Chief Executive Officer commented, “2016 was a year of significant growth and strategic expansion for Sunworks, highlighted by year-over-year revenue growth of more than 60%. Strategically, we expanded our addressable market, while making significant investments in equipment, personnel and systems to bolster our sales and operations to enable us to capitalize on additional growth opportunities in 2017 and beyond.”
“During the fourth quarter, sales and profitability were negatively impacted by a few factors including installation timing delays due to unprecedented levels of rain on the West Coast, customer-driven scheduling demands, local permitting challenges that caused certain projects to slip into 2017 and some other non-cash adjustments,” added Mr. Nelson. “Our sales for the full year were below the $95 to $105 million we had expected, which impacted profitability in the quarter.”
Mr. Nelson concluded, “While our financial results may vary from quarter to quarter, our backlog is currently at historically high levels, providing a solid foundation and visibility for our growth throughout 2017. Although we expect the first quarter revenue to continue to be slow due to the unusually rainy season in California, the momentum we built in 2016 coupled with an expanding pipeline, and solidified by our strong backlog gives us great confidence for 2017. In addition, we have taken proactive steps and continue to sharpen our approach to modify our cost structure to lower the fixed cost component. This lower cost structure will be better aligned with our strategy and enhance our ability to grow the business profitably. Equally as important, we believe we can reduce the impact of future volatility on our results when unexpected industry or macro-environment events occur as they undoubtedly will.”
Fourth Quarter 2016 Earnings Release and Conference Call
Sunworks will provide additional information to investors when the company announces its complete and audited results for the fourth quarter and full-year 2016 before the market opens on Wednesday, March 29, 2017.
The Company will host a conference call and live webcast to discuss its results on March 29, 2017 at 10 a.m. Eastern Time. To access the call, please dial 1-(866)-682-6100 (toll-free) or 1-(862)-255-5401 (International). The conference call will also be webcast live on the Investor Relations section of the company’s website at ir.sunworksusa.com
Following the conclusion of the live call, a replay of the webcast will be available on the Investor Relations section of the Company’s website for at least 90 days. A telephonic replay of the conference call will also be available from 12 p.m. ET on March 29, 2017 until 11:59PM ET on May 12, 2017 by dialing 1-877-481-4010 (United States) or 1-919-882-2331 (international) and using the replay ID number 10280.
About Sunworks
Founded in 1983, Sunworks, Inc. has emerged as a premier provider of solar power solutions for both consumers and businesses. We’re committed to quality construction practices that always exceed industry standards and uphold our ideals of ethics and safety.
Today, Sunworks continues to grow its presence, expanding nationally with regional and local offices. We strive to consistently deliver high quality, performance oriented solutions for the agriculture, commercial, federal, public works, residential, and utility industries. Our dedication to excellence is reflected in our 25-year warranty, a benchmark that we stand by in order to support our customers above and beyond their expectations.
Sunworks fields a diverse, seasoned workforce that includes distinguished veterans who are devoted to providing the very best customer experience. All of our employees, from technicians to executives, 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,” “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. These forward-looking 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 and other factors affecting the Company and its operations, markets, products, and prospects for sales, failure to commercialize our technology, failure of technology to perform as expected, failure to earn profit or revenue, higher costs than expected, persistent operating losses, ownership dilution, inability to repay debt, failure of acquired businesses to perform as expected, 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.