U.S. Markets closed

The Peck Company Holdings, Inc. Reclassifies Certain Items and Simplifies Third Quarter 2019 Financial Statements Included In Its November 12, 2019 Press Release

SOUTH BURLINGTON, Vt.--(BUSINESS WIRE)--

The Peck Company Holdings, Inc. (NASDAQ:PECK), a leading commercial solar engineering, procurement and construction (“EPC”) company (the “Company”), decided upon the recommendation of its auditor to reclassify certain due to/due from stockholder agreements to present the net financial balances at September 30, 2019. In addition, the Company modified its Condensed Statement of Changes in Stockholders’ Equity (unaudited) for simplification purposes. Such information has been included in the Company’s Quarterly Report for the third quarter ended September 30, 2019 (the “Form 10-Q”), but was not reflected in the financial statements included in the press release dated November 12, 2019, which reported the Company’s third quarter 2019 results.

There were no changes to the revenue or income previously reported in such press release.

The Peck Company Holdings, Inc.
Condensed Balance Sheets (Unaudited)
September 30, 2019 and December 31, 2018

 

 

 

September 30,
2019

 

 

December 31,
2018

 

Assets

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash

 

$

28,700

 

 

$

313,217

 

Accounts receivable, net of allowance

 

 

7,157,760

 

 

 

2,054,413

 

Costs and estimated earnings in excess of billings

 

 

3,427,990

 

 

 

718,984

 

Due from stockholders

 

 

0

 

 

 

2,858

 

Other current assets

 

 

210,852

 

 

 

0

 

Total current assets

 

 

10,825,302

 

 

 

3,089,472

 

 

 

 

 

 

 

 

 

 

Property and equipment:

 

 

 

 

 

 

 

 

Building and improvements

 

 

672,727

 

 

 

666,157

 

Vehicles

 

 

1,283,364

 

 

 

1,147,371

 

Tools and equipment

 

 

517,601

 

 

 

493,760

 

Solar arrays

 

 

6,386,025

 

 

 

6,386,025

 

 

 

 

8,859,717

 

 

 

8,693,313

 

Less accumulated depreciation

 

 

(2,037,996

)

 

 

(1,571,774

)

 

 

 

6,821,721

 

 

 

7,121,539

 

Other Assets:

 

 

 

 

 

 

 

 

Captive insurance investment

 

 

140,875

 

 

 

80,823

 

Due from stockholders

 

 

0

 

 

 

250,000

 

Cash surrender value - life insurance

 

 

279,219

 

 

 

224,530

 

 

 

 

420,094

 

 

 

555,353

 

Total assets

 

$

18,067,117

 

 

$

10,766,364

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

3,580,982

 

 

$

1,495,785

 

Accrued expenses

 

 

289,002

 

 

 

236,460

 

Billings in excess of costs and estimated earnings on uncompleted contracts

 

 

826,012

 

 

 

180,627

 

Accrued losses on contract in progress

 

 

0

 

 

 

9,128

 

Due to stockholders

 

 

442,489

 

 

 

33,463

 

Line of credit

 

 

5,000,000

 

 

 

972,524

 

Current portion of deferred compensation

 

 

27,057

 

 

 

27,057

 

Current portion of long-term debt

 

 

443,453

 

 

 

410,686

 

Total current liabilities

 

 

10,608,995

 

 

 

3,365,730

 

 

 

 

 

 

 

 

 

 

Long-term liabilities:

 

 

 

 

 

 

 

 

Deferred compensation, net of current portion

 

 

96,546

 

 

 

116,711

 

Deferred tax liability

 

 

1,527,311

 

 

 

0

 

Long-term debt, net of current portion

 

 

2,076,750

 

 

 

2,212,885

 

 

 

 

3,700,507

 

 

 

2,329,596

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock - $0.0001 par value 1,000,000 shares authorized, 0 issued and outstanding

 

 

0

 

 

 

0

 

Common stock - $0.0001 par value 49,000,000 shares authorized, 5,474,695 shares issued and outstanding and 3,234,301 shares issued and outstanding as of September 30, 2019 and December 31, 2018

 

 

547

 

 

 

323

 

Additional paid-in capital

 

 

423,306

 

 

 

552,630

 

Retained earnings

 

 

3,333,762

 

 

 

4,518,085

 

 

 

 

3,757,615

 

 

 

5,071,038

 

 

 

$

18,067,117

 

 

$

10,766,364

 

The Peck Company Holdings, Inc.
Condensed Statements of Operations (Unaudited)
For the three months and nine months ended September 30, 2019 and 2018

 

 

 

 

 

 

 

 

 

Three Months ended
September 30,

 

 

Nine Months ended
September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned revenue

 

$

11,749,580

 

 

$

3,991,209

 

 

 

21,878,170

 

 

$

13,023,359

 

Cost of earned revenue

 

 

10,308,936

 

 

 

2,885,146

 

 

 

17,846,681

 

 

 

9,882,268

 

Gross profit

 

 

1,440,644

 

 

 

1,106,063

 

 

 

4,031,489

 

 

 

3,141,091

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warehousing and other operating expenses

 

 

294,154

 

 

 

182,193

 

 

 

1,034,965

 

 

 

534,279

 

General and administrative expenses

 

 

967,196

 

 

 

380,153

 

 

 

1,980,886

 

 

 

1,225,948

 

Total operating expenses

 

 

1,261,350

 

 

 

562,346

 

 

 

3,015,851

 

 

 

1,760,227

 

Operating income

 

 

179,294

 

 

 

543,717

 

 

 

1,015,638

 

 

 

1,380,864

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(54,671

)

 

 

(49,785

)

 

 

(158,217

)

 

 

(91,639

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

124,623

 

 

 

496,932

 

 

 

857,421

 

 

 

1,289,225

 

Provision for income taxes

 

 

48,468

 

 

 

0

 

 

 

1,555,330

 

 

 

250

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

76,155

 

 

$

496,932

 

 

$

(697,909

)

 

$

1,288,975

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

5,474,695

 

 

 

3,234,501

 

 

 

4,071,497

 

 

 

3,234,501

 

Diluted

 

 

5,474,695

 

 

 

3,234,501

 

 

 

4,071,497

 

 

 

3,234,501

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.01

 

 

$

0.15

 

 

$

(0.17

)

 

$

0.40

 

Diluted

 

$

0.01

 

 

$

0.15

 

 

$

(0.17

)

 

$

0.40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PRO FORMA (C-corporation basis) (Note 1m)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

$

48,468

 

 

$

137,750

 

 

$

237,677

 

 

$

357,373

 

Net Income

 

 

76,155

 

 

 

359,182

 

 

 

619,744

 

 

 

931,852

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

5,474,695

 

 

 

3,234,501

 

 

 

4,071,497

 

 

 

3,234,501

 

Diluted

 

 

5,474,695

 

 

 

3,234,501

 

 

 

4,071,497

 

 

 

3,234,501

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.01

 

 

$

0.11

 

 

$

0.15

 

 

$

0.29

 

Diluted

 

$

0.01

 

 

$

0.11

 

 

$

0.15

 

 

$

0.29

 

The Peck Company Holdings, Inc.
Condensed Statement of Changes in Stockholders’ Equity (Unaudited)
September 30, 2019

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Paid-In

 

 

Retained

 

 

 

 

 

 

Shares

 

 

Amounts

 

 

Capital

 

 

Earnings

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of January 1, 2019

 

 

3,234,501

 

 

$

323

 

 

$

552,630

 

 

$

4,518,085

 

 

$

5,071,038

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash distributions to stockholders in 2019 prior to June 20

 

 

0

 

 

 

0

 

 

 

0

 

 

 

(486,414

)

 

 

(486,414

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of Rights to common shares

 

 

420,712

 

 

 

42

 

 

 

0

 

 

 

0

 

 

 

42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Combination with Peck Electric Co.

 

 

1,819,482

 

 

 

182

 

 

 

(182

)

 

 

0

 

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recapitalization costs

 

 

0

 

 

 

0

 

 

 

(128,918

)

 

 

0

 

 

 

(128,918

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss)

 

 

0

 

 

 

0

 

 

 

0

 

 

 

(774,064

)

 

 

(774,064

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance, June 30, 2019

 

 

5,474,695

 

 

 

547

 

 

 

423,530

 

 

 

3,257,607

 

 

 

3,681,684

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recapitalization costs

 

 

0

 

 

 

0

 

 

 

(224

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

76,155

 

 

 

76,155

 

Ending Balance, September 30, 2019

 

 

5,474,695

 

 

$

547

 

 

$

423,306

 

 

$

3,333,762

 

 

$

3,757,615

 

The Peck Company Holdings, Inc.
Condensed Statement of Changes in Stockholders’ Equity (Unaudited)
September 30, 2018

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Paid-In

 

 

Retained

 

 

 

 

 

 

Shares

 

 

Amounts

 

 

Capital

 

 

Earnings

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of January 1, 2018

 

 

200

 

$

6,000

 

 

$

546,953

 

 

$

3,955,942

 

 

$

4,508,895

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

0

 

 

 

0

 

 

 

0

 

 

 

787,793

 

 

 

793,793

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance, June 30, 2018

 

 

200

 

 

 

6,000

 

 

 

546,953

 

 

 

4,743,735

 

 

 

5,296,688

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

496,932

 

 

 

496,932

 

Ending Balance, September 30, 2018

 

 

200

 

 

$

6,000

 

 

$

546,953

 

 

$

5,240,667

 

 

$

5,793,620

 

The Peck Company Holdings, Inc.
Condensed Statements of Cash Flows (Unaudited)
For the Nine Months Ended September 30, 2019 and 2018

 

 

 

September 30,

2019

 

 

September 30,

2018

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(697,909

)

 

$

1,288,975

 

 

 

 

 

 

 

 

 

 

Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

466,222

 

 

 

296,125

 

Provision for deferred income taxes

 

 

1,527,311

 

 

 

0

 

 

 

 

 

 

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(5,103,347

)

 

 

391,852

 

Prepaid expenses

 

 

(210,852

)

 

 

(63,340

)

Costs and estimated earnings in excess of billings

 

 

(2,709,006

)

 

 

404,099

 

Cash surrender value - life insurance

 

 

(54,689

)

 

 

0

 

Accounts payable

 

 

2,085,197

 

 

 

(1,290,484

)

Accrued expenses

 

 

52,542

 

 

 

(176,957

)

Billings in excess of costs and estimated earnings on uncompleted contracts

 

 

645,385

 

 

 

(254,183

)

Accrued losses on contract in progress

 

 

(9,128

)

 

 

0

 

Due to stockholders

 

 

438,070

 

 

 

0

 

Deferred compensation

 

 

(20,165

)

 

 

0

 

Net cash (used in) provided by operating activities

 

 

(3,590,369

)

 

 

596,087

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchase of solar arrays and equipment

 

 

(39,243

)

 

 

(2,587,041

)

Loan to stockholder

 

 

(43,000

)

 

 

(250,000

)

Investment in captive insurance

 

 

(60,063

)

 

 

(43,340

)

Net cash used in investing activities

 

 

(142,295

)

 

 

(2,880,381

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Net borrowings on line of credit

 

 

4,027,476

 

 

 

1,233,836

 

Proceeds from long-term debt

 

 

0

 

 

 

645,525

 

Payments of long-term debt

 

 

(230,629

)

 

 

0

 

Recapitalization costs paid

 

 

(129,100

)

 

 

0

 

Stockholder distributions paid

 

 

(219,600

)

 

 

(137,494

)

Net cash provided by financing activities

 

 

3,448,147

 

 

 

1,741,867

 

Net decrease in cash

 

 

(284,517

)

 

 

(542,427

)

Cash, beginning of period

 

 

313,217

 

 

 

760,781

 

Cash, end of period

 

$

28,700

 

 

$

218,354

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid during the year for:

 

 

 

 

 

 

 

 

Interest

 

$

158,217

 

 

$

91,639

 

Income taxes

 

 

5,859

 

 

 

250

 

Supplemental disclosure of non-cash investing and financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

 

 

 

 

 

 

Four vehicles were purchased and financed for $127,161.

 

 

 

 

 

 

 

 

The Company accrued S-corporation distributions which have not been paid of $266,814.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

 

 

 

 

 

 

One vehicle was purchased and financed for $39,790

 

 

 

 

 

 

 

 

The accompanying notes found in the recently filed Form10-Q are an integral part of these unaudited condensed consolidated financial statements.

About The Peck Company Holdings, Inc.

Headquartered in South Burlington, VT, The Peck Company Holdings, Inc. is a 2nd-generation family business founded in 1972 and rooted in values that align people, purpose, and profitability. Ranked by Solar Power World as one of the leading commercial solar contractors in the Northeastern United States, the Company provides EPC services to solar energy customers for projects ranging in size from several kilowatts for residential properties to multi-megawatt systems for large commercial and utility scale projects. The Company has installed over 125 megawatts worth of solar systems since it started installing solar in 2012 and continues its focus on profitable growth opportunities. Please visit www.peckcompany.com for additional information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20191122005510/en/