HENDERSON, Nev., Jan. 11, 2024 (GLOBE NEWSWIRE) — Solar Integrated Roofing Corp. (OTC: SIRC) (“SIRC” or “the Company”), an integrated, single-source solutions provider of solar power, roofing and EV charging systems answers Investor Questions. Brad Rinehart, CEO tackles the questions brought forward from Investors. “I have always been transparent and open with our investors and will continue to do so as we enter 2024. While there are still challenges ahead, SIRC has made significant progress and I expect the year to be a positive growth year for all companies under the SIRC umbrella.”
Companies under the SIRC Umbrella
SIRC will be making the move to consolidate brands and run them as DBA’s under the SIRC name. Consolidating brands not only makes accounting, banking, and insurance easier but will also reduce administrative costs. McKay and Montross brands will be consolidated as the roofing branch and will retain the McKay Roofing name. Milholland will remain the residential solar arm. PLEMCo will retain its identity as it remains strong in government contracting, EVSE, BESS, and commercial solar projects. A project is underway to remove the remaining brands from both websites.
Does SIRC have a COO?
During the October investor update podcast, Brad Rinehart announced the promotion of Mohammad Suri to COO. Since taking the reins in the COO role, Mohammad has been working closely and providing leadership to both the roofing and solar divisions in addition to managing the operations at PLEMCo. During the same update, it was announced that Julie Brehm would move to Senior Vice President, Sales and Marketing for all SIRC sales functions.
Why did SIRC sell Balance?
SIRC is a construction company in the renewable energy space while Balance Claims is an adjusting service function in the roofing industry. Given the uncertainty in the insurance industry, especially as large insurers exit the Florida, Texas, and California markets, and some stop covering roofs altogether, I felt it would be best to divest Balance and use those proceeds for the other construction divisions. Balance will be much better positioned to serve their markets under their new ownership structure and SIRC will be able to use those proceeds to support construction activities in the other operating divisions. It was a good decision for SIRC and for Balance.
Is SIRC cash flow positive?
At this time, Q4 financials have not yet been completed. Cash flow in Q4 was better than Q3 and continues to improve. On-going focus has allowed SIRC to continue to increase profitable revenue and reduce costs. The previously announced 3A10 process, along with operating cash flow, has allowed for the continuation of debt reduction. Quarterly financial statements will continue to be posted for shareholders, which is the best source of public financial information.
If I want to refer someone for roofing/solar projects, how would I do that?
All websites have contact information links to fill out and submit. When submitting, please note you are a shareholder so that can be taken into pricing consideration.
Why did you decide to stay on and become CEO when Dave Massey left?
I ask myself that every day! I am very loyal to the people that work here, our suppliers, our customers, and our shareholders. I firmly believe that we can be a viable construction business in the renewable energy space and continue to grow from there. Over the past 15 years, I made a point to find positions where I can make a difference, not only for the company, but for society in general. I spent a few years working with Sable Systems which makes advanced scientific test equipment to measure the metabolism in everything from fruit flies to blue whales. They provided advanced equipment to Big Pharma and leading Research Institutions globally. They are making a difference in scientific and medical advancements. Prior to that I was with the world’s largest eyeglass lens manufacturer, helping people see. Renewable energy, done correctly, can help sustain the planet we all live on for future generations. I think that is an important and worthwhile field to be part of.
How are you doing in re-filing the Form 10?
The intent is to file an S1 or Form 10 early this year. The previous accounting firm exited the portion of the market that services PCAOB audit requirements causing a short delay. The search for a new accounting firm that can meet our needs going forward is underway. We have re-stated 2022 which will require an audit review from the new firm as well as a complete audit for 2023.
We have seen the lawsuit against Dave Massey. Why did you decide to file the lawsuit?
I don’t want to spend too much time dwelling on the past and cannot comment on ongoing litigation to a great degree. The more I learned about past practices and decisions, the more I felt compelled to do what we can to protect and retrieve shareholder assets where we can. As an employee of the company, I am entrusted with protecting and using those resources to the best of my ability on behalf of shareholders. Dave Massey was in the same role, and in my opinion he did not always use resources for the benefit of the company and shareholders. When that trust has been violated, one avenue to recover assets is through litigation.
How does SIRC market and secure roofing and solar work? The SoCal market is crowded and depressed and I see almost zero marketing effort on behalf of SIRC. Help us understand how SIRC goes to market in the residential roofing and solar market.
Our roofing brands, McKay and Montross, have long established relationships in the southern California market. These relationships provide continuous referrals for both commercial and residential roofing work. The sales representatives in the roofing sector have also established themselves in the market and they do an excellent job in securing organic and referral work. It helps that our teams are very efficient and cost competitive and demand continues to outpace supply in the roofing market.
Residential solar has been redirected into two main areas. One, combination jobs (roof replacement and solar installation) where we can do both under one contract and one financing arrangement. Two, SunPower by Milholland is a powerful residential solar brand where we can offer a top-tier solar product at fair margins. We are seeing more emphasis placed on solar and battery storage combination projects which is additional revenue for SIRC and gives the homeowner more energy independence. Fair and profitable residential sales will continue to grow under these two initiatives. For the first time ever, a marketing budget and outreach plan has been established and will begin towards the middle/end of Q1 which will also help drive these channels.
At this point where SIRC truly turns the corner, is there any reason why our CEO would not consider investing his own cash in the business to make some handsome returns for himself? For me, this is the defining moment when I consider buying more shares.
There are rules for insiders in buying and selling shares of a company. My compensation is heavily share based, so I accumulate shares as part of my compensation. My base compensation is 60% of what the previous CEO’s were paying themselves. I have no intention of selling any shares while I am CEO of SIRC, and I do not plan on going anywhere in the foreseeable future. I plan to see this through, get the company turned around and growing, get it fully reporting on the OTC, and eventually uplisted to a different exchange. At that point, I might buy or sell some shares, and I might not.
What excites you about 2024?
PLEMCo was recently awarded a new Commercial Solar and EVSE project for LA County for $900,000. This is one of many combination projects including commercial solar and EVSE that PLEMCo is uniquely qualified to perform. PLEMCo is currently in the process of reviewing and bidding for a multitude of projects similar in size and scope for a variety of government entities.
There is a large increase in commercial solar projects in California and SIRC is actively bidding on over 20 sites. Many of these projects include either EVSE or at least the stub down work for EVSE in the near future. We are also seeing a large increase in EVSE projects out for bid. Our focus on commercial roofing and residential roofing/solar jobs are also a very strong growth market for us.
In the federal government sector, the addition of a dedicated person has already proven to be the right move. We anticipate seeing a significant amount of EV charging equipment sales as one of our vendor partners appears to be passing FEDRamp in Q1 which clears the path for BPA sales. Growing the right revenue streams while aggressively reducing costs has put us on an exciting path for the future.
Which will happen first? The Chicago Bears win 10 games in a season or SIRC does $100 million in profitable revenue?
Wow. If SIRC had the number 1 and number 9 picks in the upcoming NFL draft. Both are possible in 2024 and very achievable in 2025.
About Solar Integrated Roofing Corp.
Solar Integrated Roofing Corp. (OTC: SIRC) is an integrated, single-source solutions provider of solar power, roofing and EV charging systems, specializing in commercial and residential properties throughout North America. The Company serves communities by delivering the best experience through constant innovation & legacy-focused leadership. For more information, please visit the Company’s Investor Relations website at www.solarintegratedroofing.com, Corporate website at https://www.sirc.com or join us on Twitter, LinkedIn or Facebook.
Press Release Contact:
Julie Brehm
jbrehm@sircfamily.com
www.globenewswire.com
https://www.globenewswire.com/news-release/2024/01/11/2808194/0/en/Solar-Integrated-Roofing-Corp-Answers-Investor-Questions.html
