SUNation Energy Issues Letter to Shareholders in Conjunction With Filing of Form 10-K
SUNation Energy (NASDAQ: SUNE) has released its FY 2024 financial results and shareholder letter. The company reported total sales of $56.9 million, down from $79.6 million in 2023, though showing quarterly sequential growth throughout 2024. Despite challenges, gross margin improved to 35.9% from 34.8%, and operating expenses decreased by 7% to $32.7 million.
Key developments include securing $20 million in gross proceeds through a securities purchase agreement, enabling the elimination of $12.6 million in secured debt. The company expects to save approximately $1.4 million in annual interest expense for 2025. Q1 2025 outlook projects cash and cash equivalents of $1.4 million, up from $0.8 million, with total debt reduced to $9.3 million from $19.1 million.
The company's strategy focuses on organic growth through lower customer acquisition costs, expanded solar services, and potential strategic acquisitions in select markets.
SUNation Energy (NASDAQ: SUNE) ha pubblicato i risultati finanziari per l'anno fiscale 2024 e la lettera agli azionisti. L'azienda ha registrato vendite totali per 56,9 milioni di dollari, in calo rispetto ai 79,6 milioni del 2023, pur mostrando una crescita sequenziale trimestrale durante tutto il 2024. Nonostante le difficoltà, il margine lordo è migliorato al 35,9% dal 34,8%, mentre le spese operative sono diminuite del 7%, attestandosi a 32,7 milioni di dollari.
Tra gli sviluppi chiave, la società ha ottenuto 20 milioni di dollari di proventi lordi tramite un accordo di acquisto di titoli, permettendo di eliminare un debito garantito di 12,6 milioni di dollari. Si prevede un risparmio annuo di circa 1,4 milioni di dollari sugli interessi per il 2025. Le previsioni per il primo trimestre del 2025 indicano liquidità e mezzi equivalenti pari a 1,4 milioni di dollari, in aumento rispetto a 0,8 milioni, con un debito totale ridotto a 9,3 milioni da 19,1 milioni.
La strategia aziendale si concentra sulla crescita organica attraverso una riduzione dei costi di acquisizione clienti, l'espansione dei servizi solari e potenziali acquisizioni strategiche in mercati selezionati.
SUNation Energy (NASDAQ: SUNE) ha publicado sus resultados financieros del año fiscal 2024 y la carta a los accionistas. La compañía reportó ventas totales de 56,9 millones de dólares, una disminución respecto a los 79,6 millones de 2023, aunque mostrando un crecimiento secuencial trimestral durante todo 2024. A pesar de los desafíos, el margen bruto mejoró al 35,9% desde 34,8%, y los gastos operativos disminuyeron un 7%, hasta 32,7 millones de dólares.
Entre los desarrollos clave, la empresa aseguró 20 millones de dólares en ingresos brutos mediante un acuerdo de compra de valores, lo que permitió eliminar una deuda garantizada de 12,6 millones de dólares. Se espera un ahorro anual de aproximadamente 1,4 millones de dólares en gastos por intereses para 2025. La perspectiva para el primer trimestre de 2025 proyecta efectivo y equivalentes de efectivo por 1,4 millones, frente a 0,8 millones, con una deuda total reducida a 9,3 millones desde 19,1 millones.
La estrategia de la compañía se centra en el crecimiento orgánico mediante la reducción de costos de adquisición de clientes, la expansión de servicios solares y posibles adquisiciones estratégicas en mercados seleccionados.
SUNation Energy (NASDAQ: SUNE)가 2024 회계연도 재무 결과와 주주 서한을 발표했습니다. 회사는 총 매출액이 5690만 달러로 2023년의 7960만 달러에서 감소했으나, 2024년 내내 분기별 연속 성장을 보였습니다. 어려움에도 불구하고, 총이익률은 34.8%에서 35.9%로 개선되었고, 영업비용은 7% 감소한 3270만 달러를 기록했습니다.
주요 발전 사항으로는 증권 매입 계약을 통해 2000만 달러의 총 수익을 확보하여 1260만 달러의 담보 부채를 상환할 수 있었습니다. 회사는 2025년 이자 비용을 연간 약 140만 달러 절감할 것으로 예상합니다. 2025년 1분기 전망은 현금 및 현금성 자산이 140만 달러로 80만 달러에서 증가하고, 총 부채는 1910만 달러에서 930만 달러로 감소할 것으로 예상됩니다.
회사의 전략은 고객 유치 비용 절감, 태양광 서비스 확대, 그리고 선별된 시장에서의 전략적 인수를 통한 유기적 성장을 중심으로 하고 있습니다.
SUNation Energy (NASDAQ : SUNE) a publié ses résultats financiers pour l’exercice 2024 ainsi que la lettre aux actionnaires. La société a enregistré un chiffre d’affaires total de 56,9 millions de dollars, en baisse par rapport à 79,6 millions en 2023, tout en affichant une croissance séquentielle trimestrielle tout au long de 2024. Malgré les défis, la marge brute s’est améliorée à 35,9 % contre 34,8 %, et les charges d’exploitation ont diminué de 7 %, pour s’établir à 32,7 millions de dollars.
Parmi les faits marquants, la société a levé 20 millions de dollars de produits bruts via un accord d’achat de titres, ce qui a permis d’éliminer une dette garantie de 12,6 millions de dollars. Elle prévoit une économie d’environ 1,4 million de dollars par an sur les charges d’intérêts pour 2025. Les perspectives pour le premier trimestre 2025 anticipent une trésorerie et des équivalents de trésorerie de 1,4 million de dollars, en hausse par rapport à 0,8 million, avec une dette totale réduite à 9,3 millions contre 19,1 millions.
La stratégie de l’entreprise mise sur une croissance organique via une réduction des coûts d’acquisition client, l’expansion des services solaires et des acquisitions stratégiques potentielles sur certains marchés ciblés.
SUNation Energy (NASDAQ: SUNE) hat seine Finanzergebnisse für das Geschäftsjahr 2024 und den Aktionärsbrief veröffentlicht. Das Unternehmen meldete einen Gesamtumsatz von 56,9 Millionen US-Dollar, was einen Rückgang gegenüber 79,6 Millionen US-Dollar im Jahr 2023 darstellt, jedoch im Verlauf des Jahres 2024 ein vierteljährliches Wachstum zeigte. Trotz Herausforderungen verbesserte sich die Bruttomarge von 34,8 % auf 35,9 %, und die Betriebskosten sanken um 7 % auf 32,7 Millionen US-Dollar.
Wesentliche Entwicklungen umfassen die Sicherung von 20 Millionen US-Dollar Bruttoerlös durch eine Wertpapierkaufvereinbarung, welche die Tilgung von 12,6 Millionen US-Dollar besichertem Schulden ermöglichte. Das Unternehmen erwartet für 2025 eine jährliche Zinsersparnis von etwa 1,4 Millionen US-Dollar. Der Ausblick für das erste Quartal 2025 prognostiziert liquide Mittel von 1,4 Millionen US-Dollar, ein Anstieg von 0,8 Millionen, bei einer Reduzierung der Gesamtverschuldung von 19,1 Millionen auf 9,3 Millionen US-Dollar.
Die Unternehmensstrategie konzentriert sich auf organisches Wachstum durch niedrigere Kundenakquisitionskosten, den Ausbau von Solardienstleistungen und potenzielle strategische Übernahmen in ausgewählten Märkten.
- Secured $20 million in gross proceeds from institutional investors
- Eliminated $12.6 million in secured debt, reducing annual interest expense by $1.4 million
- Improved gross margin to 35.9% from 34.8%
- Reduced operating expenses by 7% to $32.7 million
- Customer acquisition costs decreased by 8% year-over-year
- Sequential quarterly sales growth throughout 2024
- Total sales declined to $56.9 million from $79.6 million in 2023
- Operating loss increased to $12.3 million from $7.5 million in 2023
- $3.1 million non-cash goodwill impairment charge for Hawaii Energy Connection
- $750,000 intangible asset impairment loss
Insights
SUNation shows mixed 2024 results with revenue decline but improving margins, significant debt reduction, and $20M fundraising supporting potential turnaround.
SUNation's 2024 financials reveal a company in transition, with revenue dropping to
The
While operating losses widened to
SUNation's strategic focus on service revenue from existing installations (including non-SUNation systems) represents a potentially lucrative opportunity with higher margins than new installations. The company's dual growth strategy—organic expansion combined with targeted acquisitions—is logical given the fragmented nature of the residential solar market, though execution risks remain significant.
Schedules Corporate Update Call for April 23, 2025
RONKONKOMA, N.Y., April 17, 2025 (GLOBE NEWSWIRE) -- SUNation Energy, Inc. (Nasdaq: SUNE) (“SUNation” or the “Company”), a leading provider of sustainable solar energy and backup power to households, businesses, municipalities, and for servicing existing systems, today issued a Letter to Shareholders from CEO Scott Maskin in connection with the filing of the Company’s Form 10-K for the year ended December 31, 2024 (“FY 2024”) on April 15, 2025. A copy of the Company’s Form 10-K is available at www.sec.gov.
Dear Fellow Shareholder:
I am writing to you with a renewed sense of optimism for SUNation’s future, tremendous pride in the dedication and hard work of our team, and appreciation for the continuing faith of our residential and commercial customers in our ability to provide an outstanding end-to-end solar experience. Over the last several quarters, we have made it a priority to address a variety of legacy financial, operational, and governance issues that impeded our growth potential, which included recruiting a new leadership team and a refreshed Board of Directors with relevant industry, capital markets, and public company experience.
This journey has not been easy, but nothing worth doing ever is. Many of these decisions were among the most difficult of my career, with a significant impact to our people and our investors; they were, however, necessary. While we still have work to do, we believe that we have positioned the Company to resume growth and thrive in the years ahead.
Our results for 2024 reflect both the encouraging and unpredictable aspects of our industry, as well as the specific issues that affected our operations. The last two years have been some of the most challenging in our space, and some companies – many larger than us – have not survived. While being a smaller company can make us more vulnerable to the effects of macro conditions, it also provides us with a significant advantage - specifically, the ability to act quickly and with resolve.
As we look ahead to 2025, we see a significant opportunity to pursue a myriad of commercial and residential opportunities in our core markets and surrounding regions, consider strategic acquisition opportunities, and fortify our operations to support a pivot to sustainable growth and profitability. For full year 2024 results, and other recent developments, please review our annual report on Form 10-K, which we filed on April 15, 2025, and can be found at www.sec.gov, free of charge.
2024 Performance Overview and Recent Events
Full Year 2024
- Total sales of
$56.9 million declined as expected from last year’s sales of$79.6 million driven by a decrease in residential and commercial solar projects, as well as lower service revenue. However, sales increased on a consecutive basis for each quarter of 2024 with Q4 2024 sales of$15.4 million up9.3% from Q1 2024 sales of$13.2 million . - Over
50% of our installed jobs in 2023 and 2024 came from referrals or repeat customers, a rate that ranks among the best in our industry. This also helped drive down year-over-year customer acquisition costs by approximately8% . - Gross margin for 2024 improved to
35.9% from34.8% , reflecting tighter controls over direct costs. - Total operating expenses declined by nearly
7% to$32.7 million from$35.2 million . - The decline in total operating expenses in 2024 was offset by a
$3.1 million non-cash goodwill impairment charge associated with Hawaii Energy Connection (“HEC”) and a$750,000 intangible asset impairment loss related to technology related intangible assets within the HEC segment; there were no such charges realized in 2023. - A series of cost optimization and efficiency measures implemented in 2024 are expected to produce annual selling, general and administrative expense cost savings in 2025 of over
$2.0 million . - Operating loss from continuing operations was
$12.3 million compared to$7.5 million in 2023
Recent Developments
- We secured
$20 million in aggregate gross proceeds via a securities purchase agreement with certain institutional investors (“the Offering”). - This fresh capital allowed us to eliminate
$12.6 million of secured debt and other long-term contractual obligations. This included the repayment in full of$9.4 million of senior and junior secured debt that removed an average annual cash drain of approximately$3.4 million through 2027, and the payment in full of a$2.5 million earn out consideration. - This reduction in debt has produced material benefits, including lowering our annual interest expense for 2025 by an estimated
$1.4 million , while enhancing cash flows that provide the flexibility necessary to invest appropriately in our long-term expansion and/or other strategic options.
Q1 2025 Outlook
We expect that our financial position for the first quarter ended March 31, 2025 will reflect the positive effects of this deleveraging and the cost containment initiatives that began in 2024, including:
- cash and cash equivalents of approximately
$1.4 million , up from cash and cash equivalents of$0.8 million at December 31, 2024; cash at March 31, 2025 did not include$5 million in gross proceeds raised as part of the Offering that closed in early April 2025. - total debt of approximately
$9.3 million , a$9.8 million reduction from$19.1 million at December 31, 2024; this reduction does not include the impact of the above-mentioned$2.5 million earn out payment.
The Path Forward
Our strategy is designed to provide customers with sustainable energy security by leveraging our people, technology, and processes to deliver solutions that improve the performance, increase the reliability, and reduce the cost of energy.
Our industry is highly fragmented, consisting primarily of small, regional companies that control the majority of installations. We believe that this creates a great opportunity for a company like SUNation. With our corporate transformation substantially complete, an injection of fresh capital, and our outlook for the solar industry positive, we believe that the best pathway for long-term growth is a combination of organic expansion initiatives, while pursuing net profitable accretive strategic acquisition opportunities.
With respect to organic growth, we will continue to focus on lowering customer acquisition costs by capitalizing on our premier referral rates, achieve economies of scale that support a lower cost of goods sold, and explore opportunities that widen the scope of solar services to become a one-stop shop for solar and storage-related needs. By leveraging our two-decade reputation for high quality and dependable solar installation, we are investing heavily in the operations of our roofing division, a natural extension of our solar offerings, as well as strengthening our outreach to non-SUNation clients in need of service for their existing PV and battery systems. We also believe that we can increase our service revenue by addressing service gaps created by solar providers that are no longer in business.
Our approach to any potential acquisitions will be deliberate and thoughtful, with a focus on well-run residential and commercial solar companies in a select group of states that contain markets with the factors that are necessary for fruitful expansion. We believe that regional companies with robust corporate support are best suited to navigate their respective state and regulatory operating environments. Our acquisition criteria includes exposure to battery storage and value-added energy services, opportunities that can deliver meaningful cost and revenue synergies, and compatible business cultures, with a focus on the customer. Our goal is to achieve scale while maintaining the regional identity and connection to the community that these companies have developed over the years.
We believe that SUNation’s value proposition of energy independence, our sterling reputation, customer-centric approach, and diversified service portfolio will help us navigate the macroeconomic environment, including tariffs, government subsidies, and interest rates.
In Closing
I founded SUNation in 2003 and built it into one of the largest and most respected solar installers on Long Island. This was accomplished through hard work, a respect for the customer, and surrounding myself with the best possible team. In 2022 we acquired HEC and E-GEAR, both Hawaii-based sustainable energy solution providers, as a reflection of our commitment to capitalize on the growing demand for solutions that provide home energy security.
After more than two decades, we are just beginning.
I am optimistic about the future of the solar and storage industry and SUNation. Our industry creates good paying jobs and generates substantial revenue at the regional level, positioning us as a significant contributor to the national energy mix alongside oil, coal, gas, and wind. Importantly, our distributed energy solutions fortify local energy infrastructures, making us a vital part of energy security. Our industry is resilient and has always aligned with economic expansion – a stronger economy equals strong energy demand.
I remain committed to capitalizing on the significant opportunities inherent in our industry and delivering long-term value to our shareholders.
Respectfully submitted,
Scott Maskin
Chief Executive Officer
Corporate Update Call / Submit Question in Advance
Management will host a Corporate Update call on Wednesday, April 23 at 10:00 am ET. Interested parties may participate in the call by dialing:
- Domestic: (800) 715-9871
- International: (646) 307-1963
- Passcode: 5681681
The conference call will also be accessible via the Investor Relations section of the Company’s web site at https://ir.sunation.com/news-events or via this link: https://edge.media-server.com/mmc/p/2sjxvf6u.
Questions may be submitted in advance to ir@sunation.com with the subject line “Corporate Update Questions.” The deadline for submitting questions is April 22 at 5:00 PM ET.
About SUNation Energy, Inc.
SUNation Energy, Inc. is focused on growing leading local and regional solar, storage, and energy services companies nationwide. Our vision is to power the energy transition through grass-roots growth of solar electricity paired with battery storage. Our portfolio of brands (SUNation, Hawaii Energy Connection, E-Gear) provide homeowners and businesses of all sizes with an end-to-end product offering spanning solar, battery storage, and grid services. SUNation Energy, Inc.’s largest markets include New York, Florida, and Hawaii, and the company operates in three (3) states.
Forward Looking Statements
Our prospects here at SUNation Energy Inc. are subject to uncertainties and risks. This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. The Company intends that such forward-looking statements be subject to the safe harbor provided by the foregoing Sections. These forward-looking statements are based largely on the expectations or forecasts of future events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond the control of management. Therefore, actual results could differ materially from the forward-looking statements contained in this presentation. The Company cannot predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. The reader should consider statements that include the words "believes", "expects", "anticipates", "intends", "estimates", "plans", "projects", "should", or other expressions that are predictions of or indicate future events or trends, to be uncertain and forward-looking. We caution readers not to place undue reliance upon any such forward-looking statements. The Company does not undertake to publicly update or revise forward-looking statements, whether because of new information, future events or otherwise. Additional information respecting factors that could materially affect the Company and its operations are contained in the Company's filings with the SEC which can be found on the SEC's website at www.sec.gov.
| Contacts: | |
| Scott Maskin Chief Executive Officer +1 (631) 823-7131 smaskin@sunation.com SUNation Energy Investor Relations IR@sunation.com | |
FAQ
What were SUNation Energy's (SUNE) total sales for FY 2024?
How much debt did SUNE eliminate with its recent financing?
What is SUNation's (SUNE) projected annual interest savings for 2025?
How did SUNE's gross margin perform in 2024 compared to 2023?
What is SUNE's customer referral rate for installed jobs?
