The Peck Company filed their Q1 2020 earnings report; you can read the press release and full SEC filings online.

Peck Company Holdings NASDAQ

The company’s pipeline has increased to $40.8 million, an increase of 36% from the $30 million reported at the end of 2019. No specific volume in megawatt terms was included in the filing.

Gross profits were down for the quarter to $300,000 from $800,000 in Q1 2019. However, revenue was up a bit from $3.85 million to $3.98 million comparing the two periods.

The lesser profits, along with additional costs due to being a publicly traded company per Peck, meant an operating loss of $600,000 in Q1’20 versus Q1’19. Gross margins were 7.5% in the quarter.

Peck Company income Q1 2019 and 2020

Two items of interest in the filing were the line of credit available, as well as the value of solar arrays owned by the company. The line of credit was valued at just over $5.6 million, while the solar arrays were booked at just under $6.4 million. The line of credit might be more valuable to consider in terms of what it can be used to create – ie – develop and build projects that can be sold. The cost of the credit would be interesting to know.

The calculation of the value of the solar arrays is a second item that investors ought pick apart. Does the $6.4 represent the cost of the systems? Does it represent future cash flows? What about tax benefits, are they included?

Peck Company business model

Beyond the company’s performance, is a new relationship developed. Peck “announce(d) a new investment partnership designed to increase Peck’s access to capital for the construction of new solar projects”. The partnership is with “GreenSeed Investors LLC and its affiliate GreenBond Advisors LLC“.

The group’s business model is to offer capital to green investments. Bond’s market perceptions are as low risk monetary tools, thus one would assume that the cost of capital to Peck from GreenSeed would be quite agreeable. In 2019/Q4 earnings call, one of the callers specifically asked how Peck might fund future development of projects, and thus seemingly a valuable tool.

CommercialSolarGuy will report further on GreenSeed, both for purpose of elucidating readers, but also as a potential tool we might use.

While the price of the stock is up over 50% since the start of the year, it is still down significantly from its original offering price near $10/share. However, since their prior filing on March 20th for all of 2019, the stock is up over 100%.

The Peck Company

About John Fitzgerald Weaver

John Fitzgerald Weaver is a solar developer; known digitally as the 'Commercial Solar Guy.' As a project developer and installer, he’s sold and managed 50+ solar projects, valued over $25 million, ranging in size from 5kW to 1500kW. He’s been involved in many aspects of the solar supply chain –- as a company founder, developer, project manager, manufacturer, permit runner, salesman, contractor and financier. In his free time he tries to get away and clear his mind by climbing mountains, or more regularly by enjoying an IPA or scotch, and really loves the strange connection between politics, energy, finance, and environment in the energy world.