SunWorks Inc (SUNWQ)

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What is encouraging.

Charles Cargile

- Our results reflect progress we are making in transforming Sunworks into a business with sustainable profitability and cash generation. Our financial model is improving with higher gross margins and lower operating expenses which drove a positive adjusted EBITDA for the quarter.

- Our estimated gross margin on new project proposals in 2018 is approximately 23%. And projects we won, the gross margin is estimated at 22%. It's also important to note that in the third quarter, we did not experience any significant downward adjustments in project margins, to have tangible evidence that we're more disciplined in pricing proposals and successful and winning projects with higher margins and more efficient in our execution of projects. All of this helping us to minimize or avoid margin slippage.

- Our total backlog of projects scheduled for installation in the next four quarters remains at a healthy level approximately $52 million, and were poised to have strong orders to close out the year

- Although our improvements in the business have taken longer than I would like. The improvements are real and they are sustainable. As we improve our profit and cash position. We become better positioned to take on new business and resume revenue growth. And as we grow the top line, we'll leverage this revenue growth for enhanced profitability.

Higher profit jobs, strong backlog, East Coast expansion, and a stronger handle of cost.

Sunworks Expands Addressable Market with New Projects in Massachusetts and New Jersey

https://www.wsj.com/articles/PR-CO-20181218-905814

Yes there is still work needed to be clean up,

- We are still working through a number of older projects that we won a year or longer ago. And these projects were often won at very low margin and often without through estimating and planning from a project management standpoint.

but it looks like things just might be turning around here.