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Principal Solar Inc is a renewable energy company. It buys, owns, and operates solar power projects. Power generated by the Company can be sold to the power grid through traditional utility companies under long-term fixed or escalating price power purchase agreements. It strategically invests in organizations, people, properties, and technologies that create and deliver next-generation opportunities in the renewable energy sectors and natural gas.

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IPO Outlook: Wingstop&#39;s &#39;Atomic&#39; IPO To Top New Issues This Week

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#TheWingExperts fast casual restaurant chain Wingstop (NASDAQ: <a class="ticker" href="/stock/wing#NASDAQ">WING</a>) prepares for its IPO Friday, June 12. The company initially planned to raise $75 million by offering 5.8 million shares between $12 and $14 per share amid strong demand from investors for restaurant IPOs.
That range has since been updated to between $16 and $18 per share, according to an amended S-1 filing, Benzinga Pro reports.
&nbsp;Wingstop will list on the NASDAQ under the ticker WING. At the midpoint of the range, the company&rsquo;s market cap would be $372 million.

	Wingstop's closest publicly-traded competitor is Buffalo Wild Wings (NASDAQ: <a class="ticker" href="/stock/bwld#NASDAQ">BWLD</a>). The Dallas-based company started in Texas in 1994 and has pioneered the concept of chicken wings as the &ldquo;center of the plate&rdquo; for all occasions.

	The company focuses on chicken, fries, and sides. Ninety percent of its revenue is from its core demographic of 18-34 year Millennials that have grown to love the fast casual restaurant concept as seen with Chipotle (NYSE: <a class="ticker" href="/stock/cmg#NYSE">CMG</a>) and Shake Shack (NYSE: <a class="ticker" href="/stock/shak#NYSE">SHAK</a>).

	Wingstop believes that the company&rsquo;s simple and efficient franchise model of, &ldquo;chicken, fries, sides, repeat,&rdquo; has allowed it to scale to 745 locations across 37 states and 6 countries over the last 20 years.

	At the end of Q1 in March 2015, its restaurant base was 97 percent franchised with 726 locations and 19 company-owned restaurants. The restaurant&rsquo;s low initial capital investment and strength in the fast casual space has helped franchisees generate strong operating margins, consistent free cash flow and capital efficient growth. The company&rsquo;s same store sales have increased 11 years through 2014 and its restaurant count has grown at a CAGR of 15.3 percent.

	<h3>Financials</h3>

	Total revenue, including royalties and franchise fees as well as company-owned restaurant sales equaled $19 million for Q1 of 2015 compared with $16.8 million at the end of Q1 in 2014. Revenue increased due to an increase in the number of franchise stores from 608 to 726 and the domestic same store sales growth of 10.7 percent from primarily an increase in transaction counts.

	Revenue over the last three years grew year over from $25.1 million in 2012 to $30.2 million in 2013 and to $38.0 million in 2014. The majority of the company's royalty agreements require franchisees to pay 5.0 percent of gross sales net of discounts.

	The good news for franchisees is that upon opening, the restaurant does not experience the typical &ldquo;honeymoon effect" often cited in the industry. Wingstop&rsquo;s S-1, in particular, notes that growth remains consistent with the average store doing $820,000 of revenue its first 52 weeks in business. In 2014, 59 of 82 new restaurant openings were by existing franchisees.

	The company is able to improve cost controls by leveraging fixed costs with labor, for example. Labor costs decreased as a percentage of sales from 22.5 percent in 2014 to 20.6 percent in 2015.

	Net income decreased to $2.55 million in Q1 of 2015 from $2.98 million over the same time period in 2014. Net income grew year over from 2012 to 2014 from $3.58 million, $7.53 million, and $8.98 million respectively.

	Shifting to the balance sheet, the company has $2.90 million in cash, $114 million in total assets and, $133 million in total debt. Prior to the offering, the company is 85 percent owned by Atlanta-based private equity firm Roark Capital Management and after the offering will maintain 69.9 percent.

	When Roark acquired Wingstop in 2010, it issued a press release in which its managing director Steve Romaniello said &ldquo;Roark invests in franchises with a proven track record in the marketplace and potential for significant growth. With 27 consecutive quarters of positive same-store sales, Wingstop is a clear leader in its category.&rdquo; At the time, the deal was valued between $80 and $90 million or about 7 to 8 times Ebitda. Wingstop has paid a $48 million dividend to Roark this year as well as a $38.5 million dividend in 2014 and a $19.3 million dividend in 2012.

	The fast casual restaurant industry is expected to exceed $54 billion in annual sales by 2018, up 57 percent from $34.5 million currently, according to Technomic. The company&rsquo;s domestic restaurant count increased 43.3 percent since the end of 2011 with restaurant openings continuing to increase each year. With the company&rsquo;s fast growth and market appeal, it aims to capture market share away from its competition as it plans to expand to 2,500 locations.

	<h3>Conclusion And Pricing Info</h3>

	Given Wingstop&rsquo;s strong year over year growth, simple and efficient franchise model, and timing in the fast casual space, this looks to be a hot IPO issue.

	Wingstop expects the next proceeds of this offering to equal $22.9 million to go toward the repayment of $19.6 million in debt and a $3.3 million management fee to terminate its agreement with Roark Capital Management.

	<h3>Other Offerings</h3>

	Thursday June 11

	Invuity (NASDAQ: <a class="ticker" href="/stock/ivty#NASDAQ">IVTY</a>) 4.0 million shares expect to price at a range of $14 to $16 per share through Piper Jaffray, Leerink, and Stifel.

	Axovant Sciences (NYSE: <a class="ticker" href="/stock/axon#NYSE">AXON</a>) 17.9 million shares expect to price at a range of $13 to $15 per share through Jeffries, Evercore, and RBC Capital Markets.

	Friday June 12

	Biotie Therapies (NASDAQ: <a class="ticker" href="/stock/biti#NASDAQ">BITI</a>): 3.37 million shares expect to price at $14.82 through RBC Capital Markets, Stifel, and JMP Securities.

	Peoples Utah Bancorp (NASDAQ: <a class="ticker" href="/stock/pub#NASDAQ">PUB</a>): 2.5 million shares expect to price at a range of $13 to $14 per share through D.A. Davidson, Sandler O&rsquo;Neill + Partners, and FIG partners

	Principle Solar (NASDAQ: <a class="ticker" href="/stock/psww#NASDAQ">PSWW</a>): 2.5 million shares expect to price at a range of $9 to $11 per share through Northland Securities.

	Wingstop: 5.8 million shares expect to price $16 to $18 per share through Morgan Stanley, Jeffries, and Baird.

	Yulong Eco-Materials (NASDAQ: <a class="ticker" href="/stock/yeco#NASDAQ">YECO</a>): 2.3 million shares expect to price at a range of $6.25 to $7.25 per share through Axiom Capital Management and Northland Securities.

IPO Outlook: Wingstop's 'Atomic' IPO To Top New Issues This Week

Here&#39;s something to consider, if you&#39;re looking at investment in alternative energy suppliers: Every four minutes in 2013, according to a <a href="http://www.seia.org/research-resources/solar-market-insight-report-2013-q2">Solar Energy Industry Association </a>report, a solar energy project was installed on a U.S. rooftop.

	Solar energy is still in its infancy, <a href="http://www.instituteforenergyresearch.org/energy-overview/solar/">reportedly</a> providing just two-tenths of one percent of the total energy consumed in the U.S. But solar power installations also reached a record high of 13 percent this year, compared to just five percent in 2008.

	With all these new solar panels popping up on people&#39;s homes and businesses, there&#39;s been some pushback from traditional power utilities &ndash; who have seen their customber base diminish as a growing number of people get &ldquo;off the grid.&rdquo;

	Earlier this year, the <a href="http://www.eei.org/ourissues/finance/Documents/disruptivechallenges.pdf">Edison Electric Institute</a> (EEI) &ndash; an assocation representing U.S. investor-owned electric companies &ndash; warned those firms of the financial risks they face from alternative energy&#39;s &ldquo;disruptive challenges,&rdquo; including lower utiliity revenues, higher costs and &ldquo;lower profitability protential, particularly over the long-term.&rdquo;
Related: <a href="http://www.benzinga.com/news/13/12/4182130/china-lunar-probe-launches-new-discussion-of-private-space-companies">China Lunar Probe Launches New Discussion Of Private Space Companies</a>

	But growing use of alternative energy, especially solar power, is also creating new investment opportunities.

	The <a href="http://www.bizjournals.com/dallas/blog/2013/12/principal-solar-gets-backing-from.html">Dallas Business Journal</a> recently took a look at Principal Solar (OTC: <a class="ticker" href="/stock/psww#OTC">PSWW</a>), a Texas-based group that is working to create the world&#39;s first solar utility. Principal Solar plans to begin acquiring large-scale solar farms in 2014 &ndash; and has asked Carlyle Capital Markets&nbsp;(CCMI) to guide its funding strategy.

	&ldquo;As we move our business activities into high gear and prepare for the acquisition of many solar projects, CCMI will provide the financial services necessary to build the capital structure required to fuel significant growth,&rdquo; Principal Solar (PSI) CEO Michael Gorton, said in a <a href="http://www.principalsolar.com/newsroom.html">press statement</a>. &quot;PSI is building its business at a time when the bankability of solar has never been greater.&rdquo;

	With Carlyle&#39;s backing, Principal Solar is reportedly looking to invest up to $100 million next year in solar utilities across the country.

	&quot;That&rsquo;s where we&rsquo;ve got our eye, where we intend to do large scale utility projects,&quot; Dan Bedell, Principal&#39;s executive vice president of strategic and corporate development, told the Dallas Businesss Journal. &quot;If we could do that tomorrow, we would do that tomorrow.&quot;

	<a href="http://news.nationalgeographic.com/news/energy/2013/12/131226-utilities-dispute-net-metering-for-solar/">National Geographic</a>, meanwhile, reports some traditional utilities want larger fees from solar powered homes &ndash; contending that solar power users aren&#39;t paying their fair share for access to the electric grid they must still use, as well as the long-term investments made towards upgrading that grid.

	&quot;It&#39;s not about lost revenue,&rdquo; David Owens, The EEI&#39;s executive vice president of business operations at the Edison Electric Institute (EEI), told the magazine. &quot;We want to make sure the grid is maintained, that it can be enhanced, and that cost shifting does not occur.&quot;

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