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Sunworks CEO Issues Letter to Shareholders
Marketwired
ROSEVILLE, CA--(Marketwired - April 21, 2016) - Sunworks, Inc. (SUNW), a provider of solar power solutions for commercial and residential markets, issued the following Letter to Shareholders from its Chairman and Chief Executive Officer, James B. Nelson.
To Our Fellow Shareholders,
Last year was an extraordinary one for our company as Sunworks emerged as a profitable public company in the solar industry - a unique status. Sunworks earned more than $1 million in net income on record setting revenue of $53.7 million. This profitable growth reflects strong underlying performance across each of our operating units which are founded on delivering cost effective solutions in a reliable and dependable manner with extreme attention to customer satisfaction.
In 2015, each of the original operating entities we acquired, Solar United Network, MD Energy and Elite Solar, all achieved rapid organic growth, and prospects for 2016 look even stronger. We finished the year with contracted backlog of approximately $47.5 million, a record for our company. This foundation gives us a clear line of sight to achieving our conservative 2016 revenue guidance of $100 million. Just as important, we expect to deliver stronger profitability in 2016 as well.
This is an exciting time to be in the solar business as the industry is truly still in its infancy and highly fragmented, particularly in the western region of the U.S. where we primarily operate today. There is a significant opportunity for consolidation available to companies such as ours that have the balance sheet and cash flow generating abilities to accelerate growth through acquisitions. We see solid inorganic opportunities as the commercial segment of the solar industry continues its rapid growth, and the residential segment is being propelled by powerful market and regulatory trends. We intend to make additional strategic investments in organic initiatives and new acquisitions that integrate seamlessly with our existing operations and that we believe will create long-term shareholder value by taking a disciplined approach to investing. We have a proven history of making successful acquisitions, and we anticipate continuing our methodical approach to make sure we acquire the right companies, in the right geographies, and most especially, the right people to drive long-term success. Internally, we anticipate making investments that will drive our installation cost down and will increase customer satisfaction-while expanding our geographic footprint.
As the federal and local regulatory environments continue to evolve and embrace solar as an alternative energy source, we believe the opportunities for growth in this industry are expansive. The social trends of fighting climate change are extremely supportive of solar energy and we expect will also be a catalyst for enabling millions of households and commercial businesses to choose solar as a clean, renewable and affordable energy source.
A cornerstone of our success in this rapidly growing industry has been to deliver solar systems that provide tangible benefits with a focus on complete customer satisfaction. We are committed to doing what we say we will do. We believe this approach to caring for our customers has been a key enabler to the profitable growth of our company. We have clear guiding principles for our business that we believe will position our company to capitalize on market trends and enable continued, profitable growth. As a low-cost provider with reliable delivery and financing alternatives that are advantageous to our customers, we are determined to provide the best value in solar solutions. By staying true to our unique business model that combines organic and inorganic profitable growth with our customers' best interests at the center of all that we do, we have differentiated ourselves from our competitors and are reinforcing the positive image associated with our brand.
Our approach to growing our business profitably through investment and caring for our customers is what sets us apart competitively and as an investment opportunity. To better communicate our vision and unify our operating businesses, we recently underwent a major rebranding exercise that included name and logo changes. As you are already aware, we are now operating under the "Sunworks" brand and trading under a new ticker symbol, "SUNW." This brand transformation better reflects who we are as a company and provides us with a common corporate identity and broader market presence under which we can continue to grow.
I am optimistic about where our company is headed and honored to lead our outstanding team through the next wave of growth.
On behalf of the entire board and management team, I would to thank all of our employees, customers and shareholders for their continued support.
Sincerely,
James B. Nelson
CEO and Chairman of the Board
About Sunworks, Inc.
Sunworks, Inc. (formerly known as Solar3D, Inc.) a leading provider of solar power solutions, is focused on the design, installation and management of solar power systems for commercial, agricultural and residential customers. Sunworks, is one of the fastest growing solar systems providers in the western United States, delivering 2.5 kilowatt to multi-megawatt commercial systems. The Company's mission is to further the widespread adoption of solar power by deploying affordable, state-of-the-art systems and developing breakthrough new solar technologies. The Company's focus is on putting the customer first, providing the best value systems in the industry, and delivering on what is promised.
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. Further information on potential factors that could affect the Company's financial results, can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 and its reports on Form 8-K filed with the Securities and Exchange Commission (SEC).
