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.
| ||||||||
September 30,
| December 31,
| |||||||
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.
| ||||||||||||||||
Three Months ended
| Nine Months ended
| |||||||||||||||
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.
| ||||||||||||||||||||
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.
| ||||||||||||||||||||
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.
| ||||||||
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/
Contacts:
J. Charles Assets
Jay Hetrick
407-627-0169
jayhetrick@jcharlesassets.com
JCharlesAssets.com
