Sunworks, Inc. 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
- 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."