Sunworks Provides Preliminary Second Quarter 2023 Business Update

PROVO, UT / ACCESSWIRE / August 2, 2023 / Sunworks, Inc. (NASDAQ:SUNW), a leading provider of solar power and battery storage solutions for residential, agriculture, commercial, industrial, and public works markets, today announced select preliminary operational and financial data for the three months ended June 30, 2023.

PRELIMINARY UNAUDITED SECOND QUARTER 2023 RESULTS

• Total revenue of range between $33.0 and 35.0 million
• Total Adjusted EBITDA range between ($10.0) and ($11.5) million
• Residential Direct sales channel represented approximately 45% of new originations
• Total backlog of approximately $84 million
• Approximately $­4.8 million in cash and restricted cash as of June 30, 2023

MANAGEMENT COMMENTARY

"Following a period of strong residential origination activity in the first quarter, demand conditions softened during the second quarter in several markets, including California, where consumers adapted to the NEM 3.0 transition," stated Gaylon Morris, Chief Executive Officer of Sunworks. "Further, with the rise in interest rates, customers have contended with a higher overall cost of ownership, even though the long-term economics of solar remain highly favorable. These factors, together with utility approval delays in California, reduced our productivity during the second quarter, resulting in lower fixed cost absorption. In view of the current operating environment, we've taken decisive action to further right-size our cost structure, including a reduction in force. While the Residential business manages through this transitional period, our Commercial segment continues to execute well, while continuing to build a strengthening sales pipeline, which is supportive of a targeted return to positive free cash flow generation."

NON-GAAP FINANCIAL MEASURES

EBITDA is a non-GAAP financial measure defined as net income (loss) excluding interest, taxes and depreciation and amortization. Adjusted EBITDA is further adjusted for non-cash stock-based compensation expense, goodwill impairment and acquisition transaction expenses. Adjusted EBITDA is a key measure used by the Company to evaluate operating performance, generate future operating plans and make strategic decisions for the allocation of capital. The Company presents Adjusted EBITDA to provide information that may assist investors in understanding its financial results. However, Adjusted EBITDA is not intended to be a substitute for net income (loss).