The U.S. CLEAN Future Could Be a Sizable Catalyst for Microgrids
Financialnewsmedia.com News Commentary
PALM BEACH, Florida, Feb. 11, 2020 /PRNewswire/ -- The CLEAN (Climate Leadership and Environmental Action for our Nation's) Future Act could be a substantial catalyst for microgrids. Reportedly, it will include grants and support for microgrids and energy storage, according to Microgrid Knowledge. "Among other things, the bill provides creates a grant program to develop energy storage and microgrid projects in rural communities and promotes the development of microgrids for critical infrastructure." Plus, according to the Committee on Energy & Commerce, this is part of its attempt to achieve a 100% clean economy over the next 30 years. That news is creating sizable, exciting opportunity for top companies like CleanSpark, Inc. (NASDAQ:CLSK), Taubman Centers Inc. (NYSE:TCO), Macerich Co. (NYSE:MAC), Generac Holdings Inc. (NYSE:GNRC), and Ballard Power Systems Inc. (NASDAQ:BLDP).
CleanSpark, Inc. (NASDAQ:CLSK) BREAKING NEWS: CleanSpark, Inc., a software and services company which offers proprietary software and controls for microgrid and distributed energy resource management systems and innovative software marketing and design services, is pleased to announce and provide a statement on the Company's financial results presented in its Form 10-Q. We move into 2020 having achieved one of CleanSpark's primary stated goals of up-listing to the Nasdaq stock exchange. This up-listing to Nasdaq is a major corporate achievement reflecting growing momentum and financial performance throughout 2019. We believe our Nasdaq listing will help to increase long-term shareholder value by improving awareness, liquidity, and expanding our investor base to include more institutional investors.
We are well capitalized and positioned to continue to leverage our mPulse and mVSO software platform. We have committed to focus our fiscal year 2020 on revenue growth as we continue our path to profitability through both sales and acquisitions. CleanSpark has now delivered its sixth consecutive record-setting quarter, creating a significant increase in year-over-year revenues. As we have expanded our product offerings and customer base, we are optimistic that we will continue to see increased adoption of our solutions. As a result, we expect our year-over --year quarterly revenues continue to increase through our 2020 fiscal and calendar year. We are focusing on marketing our Software as a Service (SaaS) platform mVSO which generates revenues recurring in nature and carry high margins. Our expectation is that our SaaS revenues will continue to increase rapidly over the fiscal year ending 2020 as we further increase our marketing efforts to take advantage of the opportunities we see in front of us. More specifically, our plan is to focus on a highly targeted online campaign paired with traditional marketing. We are targeting $1.0 million in annualized SaaS revenue under contract before the end of calendar 2020. Based upon historical trends, we expect this revenue to carry profit margins of 70-85%.
In addition to our online marketing efforts we have continued to increase our sales team who are focused on mPulse controls sales and expect these efforts to continue to increase revenue outputs. We currently have $1.0 million in mPulse and energy storage orders under contract, which we expect to deliver over the next two quarters. We are targeting $3.5 million in mPulse and energy storage sales over the next calendar year. We are limited to some degree by the long sales cycles associated with system integration, but as our adoption rate increases and our contracted pipeline continue to build we expect our mPulse and energy storage sales to increase significantly into 2021 and beyond. Based upon historical trends, we expect these revenues to carry profit margins between 20-70% depending on total system size. Our sales in fiscal 2020 have largely been led by sales of our equipment division with over $2.6 Million in new orders received this fiscal year to date, with most orders being placed by repeat customers. We expect this trend of increased sales to continue throughout 2020. Currently, we have a total of $5.1 million in equipment purchase orders under contract which we expect to deliver over the next two quarters. We are targeting $7.0 million in delivered equipment sales prior to the end of fiscal 2020. We expect this revenue to carry profit margins of 9-12%, based on historical trends.
We have also begun to further diversify our revenue streams with a strong focus on increasing profit margins. As part of this strategic initiative, on January 31, 2020, CleanSpark completed the acquisition of p2klabs, Inc., a design and innovation consulting firm that specializes in applying transformational design, technology, and business methodologies to transform and grow businesses. This acquisition enables CleanSpark to accelerate the development and deployment of its software platforms and expand overall sales and marketing capabilities. The addition of p2klabs adds significant depth in software sales experience and a top-tier sales and marketing team. As a result of the acquisition, Mr. Amer Tadayon has joined the CleanSpark executive team as the Company's Chief Revenue Officer to oversee our sales and marketing strategy. Mr. Tadayon has more than 25 years of experience working with world-class companies including IBM, Cognizant and frog Design. We expect the acquisition to not only enhance and increase our existing software platform sales, but we also expect it to add up to $2.0 million in new services-based revenue directly related to the acquired business over the next twelve months. Based upon historical trends, we expect this revenue to carry profit margins of 55-65%.
Other related developments from around the markets include:
Taubman Centers Inc. (NYSE:TCO) announced that they have entered into a definitive agreement under which Simon will acquire an 80% ownership interest in The Taubman Realty Group Limited Partnership. Simon, through its operating partnership, Simon Property Group, L.P., will acquire all of Taubman common stock for $52.50 per share in cash and the Taubman family will sell approximately one-third of its ownership interest at the transaction price and remain a 20% partner in TRG. TRG is engaged in the ownership, management and/or leasing of 26 super-regional shopping centers in the U.S. and Asia. TRG's ownership includes 24 high-quality retail assets (including 21 in the United States and 3 in Asia), consisting of approximately 25 million feet of gross leasable area, and will continue to be managed by its existing executive team, under the leadership of Taubman Chairman, President and Chief Executive Officer Robert S. Taubman, in partnership with Simon. The parties have agreed to work together to implement best practices to achieve operational efficiencies and will eliminate Taubman's public company costs immediately following closing. The transaction has been unanimously recommended by a Special Committee of independent directors of Taubman and approved unanimously by the Boards of Directors of both companies. Simon expects to fund the total required cash consideration of approximately $3.6 billion with existing liquidity.
Macerich Co. (NYSE:MAC) announced results of operations for the quarter ended December 31, 2019, which included net income attributable to the Company of $26.9 million or $.19 per share-diluted for the quarter ended December 31, 2019 compared to net income of $11.7 million or $.08 per share-diluted attributable to the Company for the quarter ended December 31, 2018. For the fourth quarter 2019, funds from operations-diluted, excluding financing expense in connection with Chandler Freehold, was $148.1 million or $.98per share-diluted compared to $165.7 million or $1.09 per share-diluted for the quarter ended December 31, 2018.
Generac Holdings Inc. (NYSE:GNRC) continues expansion in the clean energy business with today's release of a new line of Generac PWRcell Automatic Transfer Switch (ATS) solutions. With these new products, Generac's PWRcell system represents the industry's first integrated whole-home energy storage system, where other systems require multiple storage devices or multiple vendors. Beginning today, customers with the new PWRcell ATS will no longer have to sacrifice necessities during a utility outage. The smart technology in the new PWRcell switches helps homeowners save money and reduce hassle. In many energy efficient homes, this product enables homeowners to power their whole home during an outage rather than having to select which circuits have power and which do not. This solution also helps to reduce install time and cost by eliminating the need to wire a separate protected loads panel. Additionally, customers who want to participate in renewable energy credit programs will no longer have to make a choice between making money from their solar system and having power during an outage. Because the PWRcell inverters are compatible with equipment required for utility company energy credit programs, PWRcell switch solutions make it possible for the inverter to support backup power applications and maximize potential earnings. "We are continuously expanding our line of Clean Energy products and this is proof of Generac's commitment to the solar + storage industry," said Adam Schroeder, Clean Energy Solutions Product Manager at Generac. "The PWRcell switches are another tool to seamlessly manage a home's power."
Ballard Power Systems Inc. (NASDAQ:BLDP) will hold a conference call on Thursday, March 5, 2020 at 8 a.m. Pacific Time (11:00 a.m. Eastern Time) to review fourth quarter and full year 2019 operating results.
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