LEHI, Utah - Complete Solar, Inc. (NASDAQ:CSLR), a provider of solar technology, services, and installation, has announced the acquisition of assets from Core Energy, a solar engineering, procurement, and construction firm based in Logan, Utah. The deal also includes the transfer of 37 Core Energy employees to Complete Solar, among them CEO Cole Farmer, who will now oversee Sales and Marketing for the company.
The acquisition, which occurred earlier this week, resulted in a modest increase in Complete Solar's workforce, from 106 to 113 employees, due to stringent cost management and a focus on merit-based retention.
Farmer, a prominent figure in Utah’s "Solar Valley" since his time at Vivint in 2014, brings significant industry experience to his new role. He previously led Core Energy to a peak revenue of $143 million in 2022 before the market downturn.
T.J. Rodgers, CEO of Complete Solar, highlighted Farmer's expected contributions to the company's growth, particularly in California's Central Valley, which is considered the largest solar market in the U.S. Rodgers emphasized the importance of integrating the Core Energy team to enhance installation rates across California, complementing Complete Solar's existing operations in Los Angeles and San Diego.
In line with the company culture, all new employees from Core Energy have been granted stock options, a practice Rodgers likened to Silicon Valley's approach to employee wealth-sharing.
This transaction is part of Complete Solar's strategy to consolidate its market position and enhance its end-to-end customer offerings, which include financing, project fulfillment, and customer service. The company's digital platform, combined with premium solar products, aims to provide comprehensive clean energy solutions for customers transitioning to energy-efficient lifestyles.
The information in this article is based on a press release statement from Complete Solar, Inc.
In other recent news, Complete Solaria has successfully cleared $67.6 million in debt and secured new capital. The company settled agreements with its two private equity providers, Carlyle and Kline Hill Partners, with an investment from the company's CEO, T.J. Rodgers.
Interestingly, both private equity partners reinvested the $18 million settlement back into the company, effectively doubling Rodgers' initial investment and providing Complete Solaria with an additional $18 million in working capital.
In terms of financial performance, Complete Solaria reported a substantial drop in revenue from $20.7 million to $10.0 million, attributed to working capital challenges. Despite this, the firm managed to maintain a gross margin of 24% and expects an increase to over 30% in the upcoming quarter.
On the leadership front, T.J. Rodgers has taken over as CEO, replacing Chris Lundell, and Aaron Semliatschenko has been appointed as the new Vice President of U.S. Operations. The company also reduced its workforce from 428 to 109 employees as part of cost-cutting measures. These are some of the recent developments at Complete Solaria.
InvestingPro Insights
Complete Solar, Inc. (NASDAQ:CSLR) has recently made a strategic move to strengthen its position in the solar industry by acquiring assets from Core Energy. This acquisition is a significant step for the company, which is currently navigating the challenges of a volatile market. Here are some insights based on real-time data and InvestingPro Tips that could provide additional context for investors considering CSLR's financial health and market performance:
InvestingPro Data:
- Market Cap (Adjusted): 85.92M USD, indicating the company's current valuation in the market.
- Revenue Growth (Last twelve months as of Q1 2024): 28.84%, showing a healthy increase in revenue year-over-year.
- 1 Month Price Total Return (As of a recent date in 2024): 22.38%, reflecting a strong short-term uptick in the company's share price.
InvestingPro Tips:
- Complete Solar operates with a significant debt burden, which could be a concern as it may have trouble making interest payments on debt, especially relevant as the company expands its operations post-acquisition.
- Despite the challenges, the company has demonstrated a strong return over the last month, with a 22.38% price total return, signaling investor confidence in the short term.
For investors looking for a more comprehensive analysis, there are additional InvestingPro Tips available that can provide deeper insights into Complete Solar's financial health and market outlook. To explore these further, visit https://www.investing.com/pro/CSLR and remember to use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 15 additional InvestingPro Tips listed for CSLR that could help investors make informed decisions.
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