BURLINGTON, Vt.--(BUSINESS WIRE)--The Peck Company (or “Peck” or “the Company”) (NASDAQ:PECK), a leading commercial solar engineering, procurement and construction (EPC) company, today provided an update to investors on the Company’s business and strategic growth plan as a public company.
“The Peck Company is focused on constructing our energy future by building solar power systems required for our world’s clean energy transformation,” said Jeffrey Peck, Chief Executive Officer. “We are committed to transparent communications with our investors and we want all of our stakeholders to have a clear view of Peck’s business, our proven track record of profitable growth and our roadmap for continued growth as a public company.”
The Peck Company Business Overview and History
The Peck Company is the largest commercial solar EPC company in the Northeast and ranked 60th in the U.S. by Solar Power World. Peck is a second-generation family business founded in 1972 by Harvey Peck as a traditional electrical contractor. The Company’s core values are to align people, purpose, and profitability, and since taking leadership of Peck in 1994, CEO Jeffrey Peck has applied these core principals to Peck’s expansion into the solar industry. Today, Peck is guided by the mission to facilitate the reduction of carbon emissions through the expansion of clean, renewable energy and believes leveraging its core values to deploy resources toward profitable business is the only sustainable strategy to achieve these objectives.
The Peck Company primarily provides EPC services to solar energy customers for projects ranging in size from several kilowatts for residential loads to multi-megawatt systems for large commercial and utility projects. To date, Peck has installed over 100MW of solar systems since inception and is focused on profitable growth opportunities.
Peck has tripled in size since 2007 by growing its solar customer base starting in 2013 and continuing to serve the needs of existing electrical and data customers. Jeffrey Peck made the decision to enter the solar EPC business only after equipment costs dropped to the point where installation could be profitable. Peck has installed some of the largest commercial and utility-scale solar arrays in the state of Vermont. The Company’s reliable union crews are expert constructors, and union access to an additional workforce makes The Peck Company ready for rapid expansion to other Northeast states while maintaining control of operating costs.
Peck also makes prudent investments in solar development projects and currently owns approximately three megawatts of operating solar arrays operating under long-term Power Purchase Agreements (“PPAs”). The reliability of these long-term recurring revenue streams combined with Peck’s in-house development and construction capabilities makes this asset class a strategic long-term investment opportunity for Peck.
Approximately 70% of the Company’s revenue is derived from solar business, approximately 30% of revenue is derived from electrical and data business and less than 1% of revenue is currently derived from recurring revenue of company-owned solar arrays.
The Peck Company is strategically positioned geographically in the Northeast. Peck has historically operated exclusively in Vermont, which is one of the most attractive states for investment in solar arrays, with industry analysis suggesting over a 14% Internal Rate of Return (IRR) on solar investment in the state and an 8 year project payback. Almost the entirety of the Northeast region of the country is ranked in the top 10 markets based on return metrics to the array owner, including the top 3 markets which include Massachusetts (1), New Jersey (2), and Rhode Island (3), in addition to New York, which is the largest regional market and ranked 8th. By leveraging Peck’s existing infrastructure and labor relationships with the International Brotherhood of Electrical Workers (IBEW), the Company is uniquely positioned to expand into these important addressable markets with limited investment in additional infrastructure or capital equipment.
Peck’s capabilities allow for expansion into high-growth adjacent markets. The Company’s core capabilities have developed Peck’s business in solar array installation, traditional electric, and data services. Peck is well-positioned to deploy these capabilities to other large, rapidly growing renewable end markets; namely EV charging stations and energy storage. Both of these markets represent adjacent, high growth expansion opportunities for Peck, and both require minimal investment of resources, infrastructure or capital spend given its complementary nature to Peck’s existing capabilities.
The Peck Company is deploying a multi-pronged growth strategy with the following core pillars:
- Organic growth by leveraging existing relationships to expand across the northeast;
- Accretive M&A of other profitable businesses to expand geographic footprint, capabilities, and cash flow; and
- Investment into solar arrays that produce a steady stream of recurring revenue.
Organic growth from Peck’s existing customers will come from national developers requesting EPC services for project sizes ranging from the residential to the utility scale. The ideal project size range for Peck is from 100kW to 10MW, which is considered commercial to small utility and is where the scale, margin, and risk are optimized. In addition, Peck remains opportunistic for smaller residential projects when marketing costs are minimized or for larger utility projects when margins can be preserved.
Additionally, accretive M&A activity is an important focus for Peck in order to accelerate revenue growth and cash flow. While geographic expansion is prioritized for the Northeast, prudent acquisitions in other geographies will also be considered depending on the strategic fit and profitability characteristics.
The goal of solar array asset investments is long-term recurring revenue from the sale of power produced by the array asset. Peck’s EPC capabilities provide the company with a unique investment opportunity in the renewable energy space because Peck can enter the solar array value chain at any scale or stage. De-risked fully-operational solar arrays with reliable off-takers can be purchased by and operated by Peck. The Company believes it has the flexibility and capability to be opportunistic about prudent solar array asset investments at any stage.
Jeffrey Peck concluded, “We are pleased to provide this update to investors and look forward to sharing our progress as we execute our growth strategy.”
About The Peck Company
Headquartered in South Burlington, VT, The Peck Company, 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 the largest commercial solar contractor in the Northeast and one of the largest in U.S., The Peck Company provides engineering, procurement and construction (EPC) services to solar energy customers for projects ranging in size from several kilowatts for residential loads to multi-megawatt systems for large commercial and public works projects. The Peck Company has installed over 100MW of solar systems since inception and is focused on profitable growth opportunities. Please visit www.peckcompany.com for additional information.
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, effective tax rate, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition.
The forward-looking statements included in this press release are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the risk factors described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.
All forward-looking statements included in this press release are based on information currently available to us, and we assume no obligation to update any forward-looking statement except as may be required by law.