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.
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version on businesswire.com: https://www.businesswire.com/news/home/20191122005510/en/
IR Contact: J. Charles Assets Jay Hetrick 407-627-0169
jayhetrick@jcharlesassets.com JCharlesAssets.com
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