The 2019 year is off to a fast start for Solar Integrated Roofing Corporation (OTC: SIRC) as the company continues to build on its moves of late 2018. If 2018 was a year to refocus and reenergize, SIRC has set the stage for 2019 to be a year of continued expansion and growth of its national footprint.
More than a solar company and more than a roofing company, SIRC seeks to position itself as an integrated solar and roofing installation company that specializes in commercial and residential properties. The company’s business model aims to combine solar installation into residential roofing projects and help homeowners save money by eliminating their electric bills – with no money out of pocket.
In an interview with SmallCapVoice’s Online Business Briefing, David Massey, CEO of SIRC set forth his confidence that all the pieces are now in place to continue to pursue an aggressive growth strategy for 2019. Massey is aiming for 400% growth and a 10%-15% profit rate at year end.
Setting the Stage
SIRC set the stage with several acquisitions started in late 2018 and is moving towards closure of its first acquisition of 2019, a well-established, 35-year-old, San Diego County based roofing company with revenues of $4.4 million for fiscal 2018. In addition, SIRC announced on January 29, 2019 that the company had signed a Letter of Intent to acquire a well-established South Orange County roofing company with $3 million in revenues. These will be the first of several planned deals the company expects to close early in the year as it builds a footprint in the California roofing industry ahead of the looming 2020 implementation of California’s new solar energy code requirements.
Recently, the California Energy Commission (CEC) passed an update to the state’s 2019 Title 24, Part 6, Building Energy Efficiency Standards. These changes mandate that beginning in January 2020 all new home construction under three stories tall must include solar panels. In addition, the existing tax credit and its sunset clause, as well as record rainfall in California, have set 2019 up as a big year for the roofing industry in California. Because of these groundbreaking changes in California Energy Codes, Massey is preparing for 90%-95% of SIRC’s roofing installations to also include solar installations.
Continued Growth into 2019
Also strengthening from within, SIRC has hired a new CFO, Nick R. Jones, who comes to SIRC with a background in acquisitions. Jones has promptly wrapped up the current audit and will take the lead in valuating future acquisitions for SIRC.
On January 15, 2019, SIRC announced a term sheet had been agreed upon by both parties in the acquisition of one of the largest direct mail companies in San Diego. The move is intended to support and significantly expand SIRC’s marketing reach. Acquisition of the company, which specializes in generating home improvement leads and showed a $600,000 gross profit for fiscal year 2017, will allow SIRC to efficiently tap into the market and uncover consistent revenue and growth throughout the year.
To support its growth and revenue goals, service will be a major focus in 2019. SIRC is adding both roofing and solar service sections to help homeowners maintain their systems and to provide annual inspections. These ongoing service contracts will form the backbone of a steady revenue stream.
Building Shareholder Value
SIRC is looking forward to a breakout year in 2019 with plans for several additional acquisitions and up-listing to the OTC QX market, the premier OTC market tier. Up-listing will allow SIRC stock to be quoted and traded by a wide range of institutional and retail brokers. SIRC stock will be one to watch as the company experiences significant growth and builds exceptional shareholder value in 2019.
About the Author
Stuart Smith is the CEO and Founder of SmallCapVoice.com. SmallCapVoice.com. is a recognized corporate investor relations firm, with clients nationwide, known for its ability to help emerging growth companies build a following among retail and institutional investors. SmallCapVoice.com utilizes its stock newsletter to feature its daily stock picks, audio interviews, as well as its clients’ financial news releases. SmallCapVoice.com also offers individual investors all the tools they need to make informed decisions about the stocks they are interested in. Tools like stock charts, stock alerts, and Company Information Sheets can assist with investing in stocks that are traded on the OTC BB and Pink Sheets. To learn more about SmallCapVoice.com and their services, please visit https://www.smallcapvoice.com/the-small-cap-daily-small-cap-newsletter/