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Energy Connect Group, Inc. (fka ECNG)

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Last Post: 3/3/2011 6:34:07 PM - Followers: 2 - Board type: Free - Posts Today: 0

 

Company Overview

EnergyConnect Group, Inc. (EnergyConnect Group), formerly Microfield Group, Inc. provides a range of demand response services to the electric power industry, through its subsidiary EnergyConnect, Inc (ECI). The Company's customers are the regional grid operators who pay it market rates for reductions in electrical demand during periods of high prices or peak demand and for being on stand by to reduce electric power demand on request at periods of capacity limitations or in response to grid emergencies. The Company's suppliers are large commercial and industrial consumers of electricity who it pays to shift their demand for electricity from high priced hours in the day to lower priced hours. It also pays these participating energy consumers to be on stand by to curtail electric demand on request. EnergyConnect Group's products can be grouped into three main categories: energy, capacity and reserves.

Profitability
Gross Margin (TTM) 35.3%
Net Profit Margin (TTM) -16.2%
 
Operating Margin (TTM) -11.4%
Pretax Margin (TTM) -16.2%
Valuation   Financial Strength
P/E excluding extraordinary items (TTM) --
P/E Normalized (MRFY) --
P/Sales (TTM) 0.7x
P/Tangible book (MRQ) --
P/Cash Flow (TTM) --
 
Current Ratio (MRQ) 1.04
Quick Ratio (MRQ) 1.04
LT Debt/Equity (MRQ) 67.03
Total Debt/Equity (MRQ) 67.03
Payout Ratio (TTM) --
Management Effectiveness   Growth
Return on Assets (TTM) -37.6%
Return on Equity (TTM) -318.3%
Return on Investments (TTM) -163.6%
 
Sales (5Yr) -11.4%
Earnings Per Share (EPS)(TTM) 90.6%
Dividend Growth (5Yr) --
Income Statement   Per Share Data
Revenue (MRQ) 851K
EBITDA (MRQ) -2.1M
Earnings before taxes (MRQ) -2.3M
Net Income (MRQ) -2.3M
Normalized earnings before taxes (MRQ) -2.3M
Normalized Net Income (MRQ) -2.3M
 
EPS excluding extraordinary items (TTM) -0.03
EPS Normalized (MRFY) -0.03
Rev per share (TTM) 0.21
BV per share (MRQ) 0.00
Tangible BV per share (MRQ) -0.01
Cash per share (MRQ) 0.01
Cash flow per share (TTM) -0.03
Indicated Annual Dividend (US) --
Short Interest    
Shares Short (Current Month) --
Short Ratio --
Short Interest as % of Float --
Shares Short (Prior Month) --
*Data updated twice a month by the 18th and 29th respectively

 

Company Contact
Address
5335 Sw Meadows Road
Suite 325
Lake Oswego, OR 97035
Telephone (503) 603-3500
Fax 0
Website http://www.energyconnect...

Company Contact:
 
Andrew Warner, CFO
EnergyConnect, Inc.
(408) 898-4592
AWarner@energyconnectinc.com
 
Investor Relations
 
Timothy Dien
Lippert / Heilshorn & Associates, Inc.
(415) 433-3777
TDien@lhai.com
 
 
EnergyConnect Group, Inc. Reports First Quarter 2010 Results
First Quarter Revenue of $7.0 million, compared to $1.2 million a year ago –
First Quarter EPS was $0.02, compared to Loss Per Share of $0.02 a year ago –
Company Reiterates Annual 2010 Guidance: Revenue Increase of 35% to 40% and Positive Annual 2010 Non-GAAP Adjusted EBITDA  –
 
San Jose, CA – May 11, 2010 - EnergyConnect Group, Inc. (OTCBB: ECNG), a leading provider of smart grid demand response services and technologies, reported results for its first quarter ended April 3, 2010.
 
Kevin Evans, EnergyConnect’s president and CEO,   said, “The first quarter of 2010 was an exciting time for EnergyConnect. We completed the selling season in our Capacity business and grew our total Capacity by 33%, to 400 Megawatts (MW). As we sold over 100 MWs of Capacity transactions in the first quarter, the remaining 300 MWs will be recognized in the second and third quarter of 2010.  On the economic side of the business, we are encouraged by the Federal Energy Regulatory Commission’s (FERC) Notice of Proposed Rulemaking (NOPR) on Demand Response.  In general, we continue to see improvements in the economy and energy prices are showing signs of rebounding.  In addition, we remain well positioned with our software-as-a-Service technology platform as customers begin to focus on reducing their overall cost of energy.”
 
First Quarter Financial Results
Revenue for the first quarter of 2010 was $7.0 million, compared to $1.2 million in the first quarter of 2009, due to a capacity transaction completed in the first quarter. Operating income for the period totaled $2.3 million, compared to operating loss of $2.0 million in the first quarter of 2009. Net income for the first quarter 2010 was $2.1 million, or $0.02 per diluted share, compared to a loss of $2.1 million, or $0.02 per share in the first quarter 2009.

 
Company Outlook
Andrew Warner, EnergyConnect’s CFO, said, “Typically, our capacity revenue recognition model translates into 25% being recognized in the second quarter and 75% in the third quarter.  Now, following the transaction in the first quarter of 2010, that revenue split should apply for the balance of our capacity business. We remain confident we will meet our annual guidance for 2010, achieving revenue growth of 35% to 40% over last year and deliver positive Non-GAAP Adjusted EBITDA for 2010.”

 
Based on the current market outlook, the company reiterates it expects full year 2010 revenue to be in the range of $27 million to $28 million, and expects to be Non-GAAP Adjusted EBITDA positive for the year.

 
 

 

Discussion of Non-GAAP Financial Measures
We intend to utilize a number of different financial measures, both GAAP and Non-GAAP, in analyzing and assessing the overall business performance, for making operating decisions and for forecasting and planning future periods. We consider the use of Non-GAAP financial measures helpful in assessing our current financial performance and prospects for the future. While we intend to use Non-GAAP financial measures as a tool to enhance our understanding of certain aspects of our financial performance, we do not consider these measures to be a substitute for, or superior to, the information provided by GAAP financial measures. Consistent with this approach, we believe that disclosing Non-GAAP financial measures provides useful supplemental data that, while not a substitute for GAAP financial measures, allows for further transparency in the review of our financial and operational performance.
 
We believe that EBITDA is used by investors and analysts as an alternative to GAAP measures when evaluating our performance in comparison to other companies. In order to fully assess our financial operating results, we believe that EBITDA will be an appropriate measure of evaluating our operating performance, because it eliminates the effects of financing and accounting decisions. This measure is also significant to institutional lenders, and is considered an important internal benchmark of our performance. We intend to use EBITDA to measure our performance against internal performance targets, which are based on EBITDA. In addition, we intend to further exclude stock-based compensation and other non-cash charges in calculating Non-GAAP Adjusted EBITDA. We believe excluding stock-based compensation and other non-cash charges, allows for greater transparency in the review our financial and operational performance.

 
Conference Call
The company will host a conference call and webcast today, May 11 th , at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time, to discuss its first quarter 2010 financial results. To listen to the call live, please dial 877-407-9039 or 201-689-8470, internationally, at least 10 minutes before the start of the conference.
 
EnergyConnect will also use an online, real-time slide presentation that will run concurrently with the conference call.   To participate in viewing these slides during the presentation, a link is provided through the Investors section of the EnergyConnect website: http://www.energyconnectinc.com/investors/financials/ .
 
A telephone replay will be available for two business days by dialing 877-660-6853, or 201-612-7415, and entering Account # 3055 and Conference ID #349866. A replay will also be available at the web address above for 90 days.
 
Forward-Looking Statements
This press release includes statements that may constitute “forward-looking” statements. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause or contribute to such differences that include, but are not limited to, competitive factors, the success of new products in the marketplace, dependence upon third party vendors, and the ability to obtain financing. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

 
 

 

About EnergyConnect
EnergyConnect Group Inc. delivers industry leading Demand Response solutions to commercial, educational and industrial consumers, enabling them to manage their electricity use in response to market prices (Economic), regional power shortages (Capacity), or cost avoidance measures. The EnergyConnect Software-as-a-Service (SaaS) technology platform provides a scalable, cost-effective, clean technology to enhance the grid’s efficiency and reliability.  For more information, visit http://www.energyconnectinc.com.

 

 
– Tables Follow –

 
 

 

ENERGYCONNECT GROUP, INC.
CONSOLIDATED BALANCE SHEET
($)

 
   
April 3,
   
January 2,
 
   
2010
   
2010
 
   
(Unaudited)
       
             
Cash
  $ 150,704     $ 1,062,306  
Certificates of deposit
    100,200       100,200  
Accounts receivable, net
    9,742,693       6,811,495  
Other current assets
    139,138       137,042  
                 
Total current assets
    10,132,735       8,111,043  
                 
Intangibles, net
    1,338,994       1,398,761  
Other long term assets
    285,289       265,120  
                 
Total assets
  $ 11,757,018     $ 9,774,924  
                 
                 
Accounts payable and accrued expenses
  $ 5,944,569     $ 7,508,561  
Other current liabilities
    207,795       324,886  
                 
Total current liabilities
   
6,152,364
      7,833,447  
                 
Note Payable, net of discount
    3,297,570       1,912,937  
                 
Total liabilities
   
9,449,934
      9,746,384  
                 
Shareholders’ equity
    2,307,084       28,540  
                 
Total liabilities and shareholders’ equity
  $ 11,757,018     $ 9,774,924  

 
 

 

ENERGYCONNECT GROUP, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
($000’s, except share data)
(Unaudited)

 
   
Three months ended
 
   
April 3,
   
April 4,
 
   
2010
   
2009
 
             
Revenue
  $ 7,024     $ 1,210  
Cost of revenue
    2,455       642  
                 
Gross profit
    4,569       568  
                 
Sales, general and administrative
    2,076       2,402  
Stock-based compensation
    185       169  
                 
Total operating expenses
    2,261       2,571  
                 
Income (loss) from operations
    2,308       (2,003 )
                 
Interest expense, net and other
    (226 )     (79 )
                 
                 
Net Income (loss)
  $ 2,082     $ (2,082 )
                 
                 
Net Income (loss) per share:
               
Basic and diluted
  $ 0.02     $ (0.02 )
                 
                 
Shares used in per share calculations:
               
Basic
    95,749,193       95,179,961  
                 
Diluted
    120,694,405       95,179,961  
 
 
 

 
 
Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA
(Unaudited)

 
We believe that the presentation of Non-GAAP financial measures provide important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations.  While we use Non-GAAP financial measures as a tool to enhance our understanding of certain aspects of our financial performance, we do not consider these measures to be a substitute for, or superior to, the information provided by GAAP financial measures.  Consistent with this approach, we believe that disclosing Non-GAAP financial measures to the readers of its financial statements provides such readers with useful supplemental data that, while not a substitute for GAAP financial measures, allows for greater transparency in the review of its financial and operational performance.

 
We intend to use EBITDA and Non-GAAP Adjusted EBITDA to measure our performance against internal targets. EBITDA is calculated by adding net interest expense, taxation expense, depreciation expense and amortization expense to Net Income to arrive at Earnings Before Interest, Tax, Depreciation and Amortization. Non-GAAP Adjusted EBITDA is calculated by additionally adding back other non-cash expenses, specifically stock-based compensation expense to arrive at Non-GAAP Adjusted EBITDA.

 
ENERGYCONNECT GROUP, INC.
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDA
($000’s)

 
   
April 3,
   
January 2,
 
   
2010
   
2010
 
   
(Unaudited)
   
(Unaudited)
 
             
GAAP Net Income (loss)
  $ 2,082     $ (2,082 )
ADD: Stock- based compensation
    185       169  
ADD: Depreciation and amortization expense
    93       96  
ADD: Interest Expense, net and other
    226       79  
                 
                 
Adjusted EBITDA
    2,586       (1,738 )
 
PostSubject
#131   Oh well... I sold my remaining position at Huggy Bear 03/03/11 06:34:07 PM
#130   Topped out...EnergyConnect shareholders will receive $0.2253 per share bradakus 03/03/11 12:30:06 PM
#129   One analyst has set a price target of MoneyBob 03/03/11 12:29:40 PM
#128   looks like this one is dying slowly...hope that MoneyBob 03/03/11 12:18:40 PM
#127   Thank you...watching it close at the moment. I MoneyBob 03/03/11 11:46:58 AM
#126   thanks, good luck to everyone else in the stock. timhyma 03/03/11 11:44:37 AM
#125   nice job...I don't blame ya :) MoneyBob 03/03/11 11:43:25 AM
#124   Sold my position at .216, happy with the timhyma 03/03/11 11:39:14 AM
#123   yeah the traffic is definitely there now...stock is MoneyBob 03/03/11 11:38:13 AM
#122   3.2mil shares traded <vbg>. timhyma 03/03/11 11:29:01 AM
#121   I didn't want to wait too long so MoneyBob 03/03/11 09:47:39 AM
#120   Takes a little time for the street to bradakus 03/03/11 09:42:41 AM
#119   I thought so too...just wish it would keep MoneyBob 03/03/11 09:40:32 AM
#118   It spiked today after the buyout news but MoneyBob 03/03/11 09:39:42 AM
#117   This is a big deal..... bradakus 03/03/11 09:34:05 AM
#116   Thursday, March 03 2011 9:00 AM, EST MoneyBob 03/03/11 09:32:25 AM
#115   Some volume today, but not much movement. timhyma 12/03/10 09:34:01 PM
#114   Thanks for your honest thoughts. I'm still optimistic timhyma 11/11/10 12:15:24 AM
#113   Another note of caution, from page 4 of Huggy Bear 11/10/10 08:36:41 PM
#112   I think that the Q looks pretty good. Huggy Bear 11/10/10 08:27:34 PM
#111   Hank- any thoughts on the Q? timhyma 11/09/10 08:55:36 PM
#110   Company Outlook timhyma 11/09/10 08:43:03 PM
#109   The Q is out and it looks pretty jmurfk 11/09/10 05:24:02 PM
#108   Today after hours we get a chance to Huggy Bear 11/09/10 08:31:43 AM
#107   must be getting ready for the next run <bg> timhyma 11/09/10 08:00:36 AM
#106   Very interesting indeed, and looks like some players Huggy Bear 11/08/10 08:28:04 AM
#105   Adding some finance dudes to the game- could timhyma 11/08/10 07:54:13 AM
#104   I havent called anyone at the company or Huggy Bear 11/05/10 08:38:30 PM
#103   I guess we will see come next Tuesday. Huggy Bear 11/01/10 08:44:09 AM
#102   I'm holding a few shares from last December, timhyma 10/31/10 06:26:57 PM
#101   I'm still here, at an avg of 8 Huggy Bear 10/28/10 08:30:31 AM
#100   anyone still here? timhyma 10/27/10 10:09:07 AM
#99   Spent the week in Sturgis, so have some timhyma 08/15/10 07:41:08 AM
#98   Team, I will be resigning my post as moderator Harleyman 08/11/10 03:11:31 PM
#97   ECNG.. $0.185.. 10 bagger 08/11/10 10:10:59 AM
#96   Expecting .02 here, but would love to see Harleyman 08/09/10 10:37:04 AM
#95   Any thoughts on tomorrows release of the second mooremi9 08/09/10 10:15:21 AM
#94   Check out the chart in the ibox, setting Harleyman 08/06/10 10:37:06 AM
#93   I see that, nice!!! Harleyman 08/05/10 10:09:31 AM
#92   New 52-week high this morning <g> timhyma 08/05/10 10:08:43 AM
#91   If we take out .21 today or tomorrow, Harleyman 08/05/10 08:57:07 AM
#90   News for 'ECNG' - (EnergyConnect Transforms Demand Response Harleyman 08/05/10 08:28:04 AM
#89   Nice job Malc! .40 a share will Harleyman 08/04/10 06:44:55 PM
#88   ECNG is gaining some nice ground back in Huggy Bear 08/04/10 06:29:45 PM
#87   Malc, I completely agree with the scenario you pointed Harleyman 07/24/10 09:59:19 AM
#86   Nice 10% gain on very solid volume for Huggy Bear 07/23/10 04:26:03 PM
#85   Earnings will be released after the bell on Harleyman 07/21/10 08:26:08 AM
#84   understood, it's just symantics, a way for me Harleyman 05/26/10 01:18:47 PM
#83   There are no free shares in my mind.. 10 bagger 05/26/10 01:02:05 PM
#82   There are no free shares in my mind.. 10 bagger 05/26/10 01:01:51 PM
PostSubject
Consent Preferences