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--- Implements Temporary Cost Reduction Measures Resulting in Expected Savings of $400,000 per Month ---
--- Company to Announce 2019 Fourth Quarter and Full-Year Financial Results and Host Conference Call on March 30 ---
ROSEVILLE, Calif., March 23, 2020 (GLOBE NEWSWIRE) -- Sunworks, Inc. (SUNW), a provider of solar power solutions for agriculture, commercial and industrial (ACI), public works and residential markets, provided an update on the current impact of the COVID-19 (Coronavirus) (the “Virus”) pandemic.
The company provided the following update related to the impact resulting from the Virus:
No Sunworks employees have been infected by the Virus.
Sunworks continues to serve customers based on its qualification as an “Essential Business” as defined by county agencies “shelter-in-place” directives. As an essential business, Sunworks employees are allowed to leave their residence to continue working.
Sunworks operates in the energy industry, which is federally identified as a critical infrastructure sector. Therefore, Sunworks is able to continue conducting business despite the California Department of Public Health mandate that all individuals living in the State of California must stay at their place of residence.
Sunworks has implemented temporary cost reduction measures resulting in expected savings of $400,000 per month, or 30% of total operating expenses.
The company expects first and second quarter revenue to be impacted by the current business environment and near-term uncertainty.
Chuck Cargile, Sunworks Chief Executive Officer said, “Like most corporations, Sunworks is experiencing disruption in our business as we work to navigate the restrictions and guidelines put in place by local, state and federal agencies to combat the COVID-19 pandemic. As an organization, we are taking unprecedented actions to protect the health and safety of our employees and our community. We are permitted to continue conducting business and are standing strong, ready to support our customers as they look to pursue new initiatives and advance installations on current projects. Unfortunately, many of our customers, suppliers and business partners are significantly disrupted and the impact of the current environment on their operations will undoubtedly affect our business. We do not yet know the extent or duration of the disruption we are currently experiencing. In the near-term we are standing in solidarity with these organizations to find ways to support them, while making tough decisions and taking the necessary measures to preserve our cash and ensure that we will be able to support them over the long-term.”
The company noted a number of proactive steps taken to protect the business, including:
Established an internal leadership committee to manage overall response to the ongoing issues resulting from the Virus.
Terminated or temporarily laid off 59 employees, representing a 33% reduction from the beginning of the year headcount.
Reduced an additional 23 employees to part time, with commensurate reduction in pay.
The CEO and all other board members have suspended receiving any compensation.
Nine other leaders of Sunworks agreed to temporarily reduce their salaries by at least 50%.
Mr. Cargile concluded, “We have taken aggressive steps to minimize our cash spend, while continuing to fulfill our obligations to customers and generate revenue and cash. I am grateful for the dedication of the employees who have embraced these changes in order to support our customers and our shareholders. We will continue to be nimble in our execution and respond accordingly in these challenging and uncertain times.”
Fourth Quarter and Year-End Earnings Details
Sunworks will report its 2019 fourth quarter and full-year financial results after the close of the market on Monday, March 30, 2020.
Management will host a conference call to discuss fourth quarter results and its business outlook on the same day at 4:30 p.m. ET (1:30 p.m. PT). To access the call, please dial 1-877-407-0778 (toll free) or 1-201-689-8565 (international). The conference call will also be broadcast live over the Internet, which can be accessed via the Investor Relations section of Sunworks' web site at http://ir.sunworksusa.com. All participants should call or access the website approximately 5 minutes before the conference begins. The webcast will be available for replay for at least 90 days. A telephonic replay of this conference call will also be available by dialing 1-919-882-2331 and using the replay ID # 33817 until 11:59 p.m. ET on April 13, 2020.
About Sunworks, Inc.
Sunworks, Inc. (NASDAQ:SUNW) is a premier provider of high performance solar power systems. Sunworks is committed to quality business practices that exceed industry standards and uphold its ideals of ethics and safety. Sunworks continues to grow its presence, expanding nationally with regional and local offices. The company strives to consistently deliver high quality, performance-oriented solutions for customers in a wide range of industries including agricultural, commercial and industrial, federal, public works, and residential. Sunworks’ dedication to excellence is reflected in its 25-year warranty, a benchmark that it stands by to support its customers above and beyond their expectations. Sunworks’ diverse, seasoned workforce includes distinguished veterans who bring a sense of pride, discipline, and professionalism to their interaction with customers. All Sunworks’ employees uphold its 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," “will,” "may," "intend," "expect" and similar expressions identify such forward-looking statements. Forward-looking statements include all statements other than statements of historical fact contained in this press release, including statements regarding the Company’s future revenue and operating income. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they 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, regulatory, environmental and other factors affecting the Company and its operations, markets and products; the impact of COVID-19 and the related federal, state and local restrictions on the Company’s operations and workforce, the impact of COVID-19 and such restrictions on our customers, and the impact of COVID-19 on the Company’s supply chain and availability of shipping and distribution; the prospects for sales, lower revenues, failure to earn profit, higher costs than expected, potential operating losses, ownership dilution, the inability to repay debt, the inability to complete projects within anticipated timeframes and costs, the impact of tariffs imposed by governmental bodies, the impact on the national and local economies resulting from terrorist actions; and other factors detailed in reports filed by the Company. You should also review the risks described in “Risk Factors” in Part I, Item 1A of Sunworks, Inc.’s Annual Report on Form 10-K and in the other reports and documents Sunworks file with the Securities and Exchange Commission from time to time.
Any forward-looking statement made by us in this press release is based only on information currently available to us and reflects only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
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