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im Buying a holding all I can.!!
totaly agree!!! POWR look awesome!!
This stock took a massive beating.
Shorts will be covering ...
In case anyone was wondering .... the stock was brought down to Book Value as per the financials.
I doubt that this will make it back to $18-19, but the sell-off seems overdone.
Shorts will likely take their profits and will buy this up.
POWR Revenues Virtually Double to $39.7 Million, E.P.S. is $0.05, and Backlog Builds to $158 Million
http://www.cnbc.com/id/46672187
PowerSecure Announces $20 Million of New Utility Infrastructure Awards
WAKE FOREST, N.C.--(BUSINESS WIRE)--Jan. 5, 2012-- PowerSecure International, Inc. (Nasdaq: POWR) today announced it has been awarded a new contract to serve two separate divisions of a major investor-owned utility. The award includes transmission and distribution construction and maintenance services, and is expected to generate $20 million of revenue over the two-year contract period. The Company expects to realize approximately one third of the revenue from this contract in 2012, and two-thirds of the revenue in 2013, although these estimates could fluctuate depending on specific work assignments. This new business will be included in the Company’s revenue backlog published and updated in conjunction with its quarterly earnings releases.
Sidney Hinton, CEO of PowerSecure, said, "We are very excited to announce this new contract. 2011 was a record year for our Utility Infrastructure business, and this new two-year award builds on this success. We are committed to delivering great service to these two divisions of a major utility, and demonstrating our strong value proposition.”
PowerSecure Announces $15 Million of New Awards for Distributed Generation Systems and Utility Infrastructure Projects
WAKE FOREST, N.C.--(BUSINESS WIRE)-- PowerSecure International, Inc. (Nasdaq: POWR) today announced it has received $15 million of new business awards. The new awards include $10 million of orders for the Company’s Interactive Distributed Generation® (IDG®) smart grid power systems, and $5 million of Utility Infrastructure projects.
The $10 million of new IDG projects includes awards to provide smart grid power systems to a wide range of customers, including hospital, pharmaceutical, industrial, military, and retail facilities. Approximately $4 million of this new business is turn-key, project-based revenue, which the Company expects to recognize primarily in 2012, and approximately $6 million of this new business is for PowerSecure-owned recurring revenue contracts, which are expected to be recognized over the next 5-7 years. The $5 million of new Utility Infrastructure awards include transmission and distribution construction and maintenance for utilities, including a contract to serve a new utility with these services. The majority of the utility infrastructure work is expected to be performed and recognized over the next 24 months.
Sidney Hinton, CEO of PowerSecure, said, "We are pleased to announce these new awards, which include a nice mix of distributed generation and utility infrastructure projects, including both turn-key sales and recurring revenue contracts. Our new distributed generation recurring revenue contracts include additional store locations for a major retailer, as we continue to demonstrate our value and earn additional opportunities to serve them. And our new utility infrastructure work is a direct result of cross selling and extending a utility relationship that began with them experiencing our distributed generation products -- and we are blessed to be able to serve them in this additional capacity.”
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers. PowerSecure’s Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company is a pioneer in developing Interactive Distributed Generation® systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power at peak power times, 2) provide utilities with dedicated electric power generation capacity to utilize for demand response purposes, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with transmission and distribution infrastructure construction and maintenance services, and engineering and regulatory consulting services. The Company’s Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting products for grocery, drug, and convenience stores, and its SecureLiteTM and PowerLiteTM street lights for utilities and municipalities which are available through its EnergyLite business unit. Additional information is available at www.powersecure.com.
All forward-looking statements contained in this release are made within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the amount and timing of the revenues associated with the new business discussed in this press release; the Company’s outlook, prospects and expectations for revenues, net income, and E.P.S. results and growth generally; the anticipated results of the Company’s products, services, and technologies; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, those risks, uncertainties and other factors identified from time to time in the Company's most recent Annual Report on Form 10-K, as well as in subsequent filings with the Securities and Exchange Commission, including reports on Forms 10-Q and 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
PowerSecure International, Inc.
Chris Hutter, 919-453-1760
Chief Financial Officer
Source: PowerSecure International, Inc.
Copyright Business Wire 2011
POWR.. $5.42 PowerSecure Introduces New Energy Efficient SuperTubeTM LED Light Replacement for Traditional Overhead Fluorescent Lighting....
WAKE FOREST, N.C.--(BUSINESS WIRE)-- PowerSecure International, Inc. (Nasdaq: POWR) today announced it has introduced its new SuperTubeTM, an energy efficient LED-based light, designed to replace and upgrade commercial overhead T8 and T12 fluorescent lighting. The new technology is market ready, and the first installation of SuperTubes and power drivers was completed at a customer facility right after receiving UL certification. This first SuperTube installation instantly and significantly improved the energy efficiency and quality of light in the facility.
Sidney Hinton, CEO of PowerSecure, said, "We are very excited to introduce our new SuperTube light to the marketplace. We invested the last twelve months developing this technology to deliver a product that maximizes lighting quality at the lowest possible cost. The market for energy efficient overhead LED lights to replace fluorescent T8 and T12’s is simply enormous, and we believe we have a great product designed to address key needs in the marketplace. The most important of these attributes is that the SuperTube improves the quality of light in the workplace significantly, and delivers a strong energy efficient return on investment for our customers. I am pleased to report that our first installation was a terrific success, as I was blessed to witness the installation and hear our customer’s praise for the SuperTube first hand – which was reinforced by the fact that they have already ordered a second shipment.”
The SuperTube is specifically designed for indoor T8 and T12 retrofit applications, and to deliver strong returns on investment for customers installing the lights. They are engineered to deliver up to 75% energy savings compared to traditional fluorescent lighting, and improve the quality of light in the workplace. They are also designed to significantly reduce maintenance cost, due to their long light life of approximately ten years which would require the utilization of four fluorescents over the same period. Importantly, the lights are easy to retrofit, which keeps the cost of installation low, and enables customers to complete energy efficiency projects expeditiously.
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers. PowerSecure’s Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company is a pioneer in developing Interactive Distributed Generation® systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power at peak power times, 2) provide utilities with dedicated electric power generation capacity to utilize for demand response purposes, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with transmission and distribution infrastructure construction and maintenance services, and engineering and regulatory consulting services. The Company’s Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting products for grocery, drug, and convenience stores, its SecureLiteTM and PowerLiteTM street lights for utilities and municipalities, and its SuperTubeTM T8 and 2x2 LED overhead lights which are available through its EnergyLite business unit. Additional information is available at www.powersecure.com.
All forward-looking statements contained in this release are made within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the amount and timing of the revenues associated with the new products discussed in this press release; the Company’s outlook, prospects and expectations for revenues, net income, and E.P.S. results and growth generally; the anticipated results of the Company’s products, services, and technologies; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, those risks, uncertainties and other factors identified from time to time in the Company's most recent Annual Report on Form 10-K, as well as in subsequent filings with the Securities and Exchange Commission, including reports on Forms 10-Q and 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
PowerSecure International, Inc.
Chris Hutter, 919-453-1760
Chief Financial Officer
Source: PowerSecure International, Inc.
POWR.. $6.32.. Sold half the position today.. Up 52% since my purchase.. hank
POWR.. $.4.62 PowerSecure Reports Third Quarter Results
Growth Progression Continues, Revenues Increase 45% to a Record $38 Million, and Backlog Grows to $149 Million
WAKE FOREST, N.C.--(BUSINESS WIRE)--
PowerSecure International, Inc. (Nasdaq: POWR) today reported its third quarter 2011 results, including record revenue of $38.2 million which increased 45% on a year-over-year basis compared to the third quarter of 2010, and increased 27% on a sequential basis compared to the second quarter of 2011. Third quarter 2011 diluted earnings per share (“E.P.S.”) were $0.05, which compares on a year-over-year basis to $0.03 in the third quarter of 2010, and on a sequential basis to $0.90 of GAAP E.P.S. and $0.00 of Non-GAAP E.P.S. in the second quarter of 2011. The Company’s Non-GAAP E.P.S. for the second quarter of 2011 includes adjustments to GAAP E.P.S. to exclude the gain on the sale of its non-core WaterSecure business and charges related to the exit of its PowerPackages business (see Non-GAAP reconciliation, below). Third quarter 2011 diluted E.P.S. from continuing operations were $0.05, which compares on a year-over-year basis to ($0.01) in the third quarter of 2010, and on a sequential basis to $0.90 of GAAP E.P.S. and $0.00 of Non-GAAP E.P.S. in the second quarter of 2011.
The Company’s record third quarter revenue of $38.2 million continues the consistent growth progression demonstrated throughout 2011, with revenue increases across business lines driven by the expansion of its base of utility partners, a growing customer roster, and the introduction and sales of new products and services:
($ in 000's) 4Q10 1Q11 2Q11 3Q11
Revenue by Product/Service
Distributed Generation 10,254 11,202 12,856 19,999
Utility Infrastructure 6,785 7,578 11,510 13,300
Energy Efficiency 3,966 4,933 5,851 4,930
Total Revenue 21,005 23,713 30,217 38,229
The Company also announced that an additional $14 million of new business has been added to its revenue backlog from new business received in late-October. This new business is in addition to the $15 million of new awards announced on October 11, 2011. As a result, the Company’s revenue backlog stands at $149 million, representing revenue expected to be recognized after September 30, 2011, for periods including the fourth quarter of 2011 onward. This backlog figure compares to $147 million of revenue backlog announced in conjunction with the Company’s second quarter earnings release issued on August 4, 2011.
Sidney Hinton, CEO of PowerSecure, said, “2011 is a very gratifying year for the PowerSecure team, as our growth initiatives have accelerated our top-line growth, and we are realizing the positive bottom-line impact of these revenue increases as the year unfolds. We are building a business platform with increasing diversity in areas where we can utilize our core competencies to serve a growing list of utility partners and customers with products and services that have significant long-term potential. We are building a strong foundation to achieve our mid-range goal of $300 million in revenue and double-digit operating margins by 2015. Importantly, we are achieving our near-term results while at the same time succeeding in our long-term strategic objectives of growing our product lines and growing our Distributed Generation recurring revenue business, which posted another record quarter. Our growth strategies are working, and we are pleased with the progress we are making toward unlocking our revenue and profit potential.”
The Company’s $11.9 million, or 45.3% year-over-year quarterly revenue increase, was driven by an increase in Distributed Generation revenues of $6.3 million, or 46.1%, as well as an increase in Utility Infrastructure revenues of $7.2 million, or 118.1%, partially offset by a decrease in Energy Efficiency revenues of $1.6 million, or 24.5%. On a sequential basis, compared to the second quarter of 2011, the Company’s $8.0 million , or 26.5% revenue increase was driven by an increase in Distributed Generation revenues of $7.1 million, or 55.6%, and an increase in Utility Infrastructure revenues of $1.8 million, or 15.6%, partially offset by a decrease in Energy Efficiency revenues of $0.9 million, or 15.7%.
The Company’s third quarter gross margin as a percentage of revenue was 30.5% compared to 32.6% in the third quarter of 2010 and 25.4% in the second quarter of 2011. The lower year-over-year gross margins were driven by approximately $0.8 million, or 2.0 percentage points, of additional fuel costs incurred from the extensive operation during the months of July and August of a PowerSecure-owned distributed generation system which serves a Midwest utility, due to record Summer heat causing high demand on the utility system. Excluding this incremental fuel cost, the Company’s third quarter gross margin was 32.5%. Additionally, period-to-period gross margins were affected, as they are each quarter, by the specific mix of projects completed in each period, and by the relative mix of higher-margin Distributed Generation revenues compared to lower-margin Utility Infrastructure service revenues in each period.
The Company’s strong quarterly revenue and profit results were achieved while at the same time the platform of Company-owned recurring revenue Distributed Generation projects continued to build. The Company invested $3.8 million in capital to deploy systems under high margin long-term recurring revenue contracts, although these projects result in deferred current period revenue and profit recognition. Since the start of 2011, the Company has invested $11.4 million of capital to deploy these projects in support of its long-term growth and profit objectives. These investments have grown its recurring revenue business to record levels, with third quarter recurring revenue reaching $4.1 million, which would have been approximately $3.8 million excluding the incremental operation of the Distributed Generation system discussed above due to the extraordinary Summer heat. This adjusted figure is approximately double compared to the prior year’s third quarter.
Operating expenses for the third quarter of 2011 were $11.3 million on a GAAP basis, and $10.8 million on a Non-GAAP basis after adjusting for $0.5 million of operating expenses related to the wind-down of the Company’s PowerPackages business, which it is in the process of exiting (see Non-GAAP financial measures, below). This compares to $9.5 million in the third quarter of 2010. The year-over-year increase in operating expenses is due to “step-up investments” the Company has made to expand and grow each of its Interactive Distributed Generation, Utility Infrastructure, and Energy Efficiency businesses. These expenses support new product and customer development, engineering, personnel and equipment, as well as additional sales and marketing activities, and include increases in depreciation from capital expenditures for recurring revenue distributed generation systems.
During the third quarter of 2011 the Company also realized revenue of $1.6 million and gross margin of $0.4 million from the sale of inventory related to the wind-down of its PowerPackages business. These inventory sales, combined with $0.5 million of PowerPackages operating expenses discussed above, generated a pre-tax loss from PowerPackages exit activities of $0.1 million. In addition, the Company recognized a pre-tax gain of just under $0.1 million related to positive adjustments to the purchase price of the sale of its WaterSecure investment, which was completed in the second quarter. In accordance with GAAP, each of these items was recorded as a component of continuing operations during the third quarter. However, because these businesses have been sold or are in the process of being exited by the Company, Non-GAAP Pro-forma results of operations are provided below to adjust for this small WaterSecure gain on sale and PowerPackages wind-down loss (see Non-GAAP financial measures, below). Adjusting for these items, Non-GAAP diluted E.P.S. was $0.05 for the Company’s third quarter, essentially the same as GAAP diluted E.P.S of $0.05.
The Company’s $149 million revenue backlog and the estimated timing of revenue recognition are outlined below, including “project-based revenues” expected to be recognized as projects are completed, and “recurring revenues” expected to be recognized over the life of the contracts:
Revenue Backlog expected to be recognized after September 30, 2011
Anticipated Estimated Primary
Description Revenue Recognition Period
Project-based Revenue -- Near term $59 Million 4Q11 through 2Q12
Project-based Revenue -- Long term $21 Million 3Q12 through 2013
Recurring Revenue $69 Million 4Q11 through 2019
Revenue Backlog expected to be recognized after September 30, 2011 $149 Million
Note: Anticipated revenue and estimated primary recognition periods are subject to risks and uncertainties
as indicated in the Company's safe harbor statement, below. Consistent with past practice, these figures
are not intended to constitute the Company's total revenue over the indicated time periods, as the Company
has additional, regular on-going revenues. Examples of additional, regular recurring revenues include
revenues from the engineering fees, and service revenue, among others. Numbers may not add due to rounding.
Orders in the Company’s revenue backlog are subject to delay, deferral, acceleration, resizing, or cancellation from time to time. Given the irregular sales cycle of customer orders, and especially of large orders, the revenue backlog at any given time is not necessarily an accurate indication of our future revenues.
The Company will host a conference call commencing today at 5:30 p.m. eastern time to discuss its third quarter 2011 results, business operations, strategic initiatives and prospects for the future. The conference call will be webcast live and can be accessed from the Investor Relations section of the Company's website at www.powersecure.com. Participants can also access the call by dialing 888-679-8034 (or 617-213-4847 if dialing internationally), and providing pass code 33260174. If you are unable to participate during the live webcast, a replay of the conference call will be available beginning today at 8:30 p.m. eastern time through midnight on December 1, 2011. To listen to the replay, dial toll-free 888-286-8010 (or 617-801-6888 if dialing internationally), and enter pass code 53518420. In addition, the webcast will be archived on the Company's website at www.powersecure.com.
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers. PowerSecure’s Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company is a pioneer in developing Interactive Distributed Generation® systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power at peak power times, 2) provide utilities with dedicated electric power generation capacity to utilize for demand response purposes, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with transmission and distribution infrastructure construction and maintenance services, and engineering and regulatory consulting services. The Company’s Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting products for grocery, drug, and convenience stores, and its SecureLiteTM and PowerLiteTM street lights for utilities and municipalities which are available through its EnergyLite business unit. Additional information is available at www.powersecure.com.
This press release contains forward-looking statements within the meaning of and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the outlook for the Company's future revenues, earnings, margins, cash resources and cash flow and other financial and operating information and data; the Company's future business operations, strategies and prospects; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, the on-going downturn, disruption and volatility in the economy, financial markets and business markets and the effects thereof on the Company's markets and customers, the demand for its products and services, and the Company's access to capital; the size, timing and terms of sales and orders, including the Company's revenue backlog discussed in this press release, and the risk of customers delaying, deferring or canceling purchase orders or making smaller purchases than expected; the effects of the sale of Southern Flow business and WaterSecure investment and the Company's strategy of monetizing its non-core businesses on the Company’s financial condition and results of operations; the effects of exiting the Company’s PowerPackages business, including current and future charges related to the exit plan, and timing of the completion of the exit and wind-down activities; the timely and successful development, production and market acceptance of new and enhanced products, services and technologies of the Company; the ability of the Company to obtain adequate supplies of key components and materials of sufficient reliability and quality for its products and technologies on a timely and cost-effective basis and the effects of related warranty claims and disputes; the ability of the Company to successfully expand its core distributed generation products and services, to successfully develop and achieve market acceptance of its new energy-related businesses, to successfully expand its recurring revenue projects, to manage its growth and to address the effects of any future changes in utility tariff structures and environmental requirements on its business solutions; the effects of competition; changes in customer and industry demand and preferences; the ability of the Company to continue the growth and diversification of its customer base; the ability of the Company to attract, retain, and motivate its executives and key personnel; changes in the energy industry in general and the electricity, oil, and natural gas markets in particular, including price levels; the effects of competition; the ability of the Company to secure and maintain key contracts and relationships; the effects of pending and future litigation, claims and disputes; and other risks, uncertainties and other factors identified from time to time in its reports filed with or furnished to the Securities and Exchange Commission, including the Company's most recent Annual Report on Form 10-K, as well as subsequently filed reports on Form 10-Q and Form 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
PowerSecure International, Inc.
Consolidated Statements of Operations (unaudited)
($000's except per share data)
Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,
2011 2010 2011 2010
Revenue 38,229 26,316 92,159 76,509
Cost of sales 26,582 17,747 65,183 50,098
Gross Profit 11,647 8,569 26,976 26,411
Operating expenses
General and administrative 9,168 7,388 25,596 21,176
Selling, marketing, and service 1,279 1,383 3,657 3,777
Depreciation and amortization 858 756 2,499 2,011
Total operating expenses 11,305 9,527 31,752 26,964
Operating income (loss) 342 (958) (4,776) (553)
Other income (expense)
Gain on sale of unconsolidated affiliate 44 0 21,830 0
Equity income from unconsolidated affiliate 0 598 1,559 2,435
Management fees from unconsolidated affiliate 0 136 282 432
Interest income and other income 31 24 73 77
Interest expense (168) (177) (454) (457)
Income (loss) before income taxes 249 (377) 18,514 1,934
Income tax benefit (provision) 493 (42) (1,763) (475)
Net income (loss) from continuing operations 742 (419) 16,751 1,459
Discontinued operations - income from operations (net of tax) 0 777 0 1,587
Discontinued operations - gain on sale (net of tax) 0 0 5,636 0
Net income (loss) 742 358 22,387 3,046
Net income attributable to noncontrolling interest 230 132 573 (15)
Net income (loss) attributable to PowerSecure International, Inc. 972 490 22,960 3,031
Summary of Amounts Attributable to PowerSecure International, Inc. shareholders
Income from continuing operations (net of tax) 972 (287) 17,324 1,444
Income from discontinued operations (net of tax) 0 777 5,636 1,587
Net income (loss) attributable to PowerSecure
International, Inc.
972 490 22,960 3,031
EARNINGS PER SHARE AMOUNTS ("E.P.S") ATTRIBUTABLE TO
POWERSECURE INTERNATIONAL, INC. SHAREHOLDERS:
Continuing Operations
Basic 0.05 (0.01) 0.92 0.08
Diluted 0.05 (0.01) 0.91 0.08
Discontinued Operations
Basic 0.00 0.04 0.30 0.09
Diluted 0.00 0.04 0.29 0.08
Net Income
Basic 0.05 0.03 1.22 0.17
Diluted 0.05 0.03 1.20 0.16
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic 18,966 18,640 18,848 17,942
Diluted 19,163 18,640 19,122 18,447
PowerSecure International, Inc.
Condensed Consolidated Balance Sheets (unaudited)
($000's)
September 30, December 31,
ASSETS 2011 2010
CURRENT ASSETS:
Cash and cash equivalents 32,692 8,202
Trade receivables, net of allowance for doubtful accounts 47,322 29,290
Assets of discontinued operations held for sale 0 12,183
Inventories 24,441 25,011
Current deferred income taxes 1,667 1,731
Prepaid expenses and other current assets 658 933
Total Current Assets 106,780 77,350
PROPERTY, PLANT, AND EQUIPMENT:
Equipment 35,660 24,946
Furniture and fixtures 281 280
Land, building, and improvements 5,874 5,720
Total property, plant, and equipment at cost 41,815 30,946
Less accumulated depreciation and amortization 7,485 5,899
Property, plant, and equipment, net 34,330 25,047
OTHER ASSETS:
Goodwill 7,970 7,970
Deferred income taxes, net of current portion 154 1,244
Restricted annuity contract 2,358 2,306
Intangible rights and capitalized software, net of accum amort 1,768 1,942
Investment in unconsolidated affiliate 195 4,346
Other assets 273 324
Total other assets 12,718 18,132
TOTAL ASSETS 153,828 120,529
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable 8,549 8,438
Accrued and other liabilities 16,629 10,986
Liabilities of discontinued operations held for sale 0 1,411
Current income taxes payable 395 251
Current unrecognized tax benefit 287 954
Current portion of capital lease obligations 828 796
Total current liabilities
26,688 22,836
LONG-TERM LIABILITIES
Revolving Line of Credit 10,000 5,000
Capital lease obligations, net of current portion 3,022 3,647
Unrecognized tax benefit 731 749
Other long-term liabilities 2,236 1,053
Total long-term liabilities 15,989 10,449
STOCKHOLDERS' EQUITY
Preferred stock - undesignated
0 0
Preferred stock - Series C 0 0
Common stock 190 187
Additional paid-in-capital 116,308 114,791
Accumulated deficit (6,529) (29,489)
Total PowerSecure International, Inc. stockholders' equity 109,969 85,489
Noncontrolling Interest 1,182 1,755
Total stockholders' equity 111,151 87,244
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 153,828 120,529
PowerSecure International, Inc.
Condensed Consolidated Statement of Cash Flows (unaudited)
($000's)
Nine Months Ended
September 30, September 30,
2011 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) 22,387 3,046
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
Gain on sale of unconsolidated affiliate (21,830) 0
Income from discontinued operations (5,636) (1,587)
Depreciation and amortization 2,499 2,011
Stock compensation expense 1,376 1,270
Distributions to noncontrolling interest shareholder 0 (877)
Loss on writedown or disposal of equipment 420 29
Deferred income taxes 1,154 0
Equity in income of unconsolidated affiliate (1,559) (2,435)
Distributions from unconsolidated affiliate 1,537 2,225
Changes in operating assets and liabilities, net of
effect of acquisitions:
Trade receivables, net (18,032) (5,927)
Inventories 570 (2,249)
Other current assets and liabilities (248) 402
Other noncurrent assets and liabilities 1,163 429
Accounts payable 111 169
Restructuring charges 0 (325)
Accrued and other liabilities 5,537 (2,938)
Net cash provided by (used in) continuing operations (10,551) (6,757)
Net cash provided by (used in) discontinued operations 0 1,808
Net cash provided by (used in) operating activities (10,551) (4,949)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, plant and equipment (13,743) (3,695)
Additions to intangible rights and software development (365) (518)
Acquisitions 0 (4,413)
Proceeds from sale of property, plant and equipment 12 21
Proceeds from sale of unconsolidated affiliate 25,974 0
Proceeds from sale of discontinued operations 16,515 0
Discontinued operations investing activities 0 (147)
Net cash provided by (used in) investing activities 28,393 (8,752)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings (payments) on revolving line of credit 5,000 7,500
Proceeds from sale-leaseback transactions 2,097 0
Payments on capital lease obligations (593) (563)
Proceeds from stock option and warrant exercises, net of shares tendered 144 1,263
Net cash provided by (used in) financing activities 6,648 8,200
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 24,490 (5,501)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 8,202 20,169
CASH AND CASH EQUIVALENTS AT END OF PERIOD 32,692 14,668
PowerSecure International, Inc.
Non-GAAP Pro-forma Financial Measures - 3Q11
Results of Operations Excluding PowerPackages Business Exit and WaterSecure Gain
Adjustments for PowerPackages Exit Activities
and WaterSecure Gain on Sale
As Reported
3Q11
WaterSecure
Gain on Sale
PowerPackages
Exit Activities
Pro-forma
3Q11
Revenue 38,229 (1,645) 36,584
Cost of sales 26,582 (1,210) 25,372
Gross Profit 11,647 0 (435) 11,212
Gross Profit % Revenue 30.5% 30.6%
Operating expenses
General and administrative 9,168 (376) 8,792
Selling, marketing, and service 1,279 (161) 1,118
Depreciation and amortization 858 858
Total operating expenses 11,305 0 (537) 10,768
Operating income (loss) 342 0 102 444
Other income (expense)
Gain on sale of unconsolidated affiliate 44 (44) 0
Equity income from unconsolidated affiliate 0 0
Management fees from unconsolidated affiliate 0 0
Interest income and other income 31 31
Interest expense (168) (168)
Income (loss) before income taxes 249 (44) 102 307
Income tax benefit (provision) 493 17 (38) 471
Net income (loss) from continuing operations 742 (28) 64 778
Discontinued operations - income from operations (net of tax) 0 0 0 0
Discontinued operations - gain on sale (net of tax) 0 0 0 0
Net income (loss) 742 (28) 64 778
Net income attributable to noncontrolling interest 230 230
Net income (loss) attributable to PowerSecure International, Inc. 972 (28) 64 1,008
Summary of Amounts Attributable to PowerSecure International, Inc. shareholders
Income from continuing operations (net of tax) 972 (28) 64 1,008
Income from discontinued operations (net of tax) 0 0 0 0
Net income (loss) attributable to PowerSecure International, Inc. 972 (28) 64 1,008
EARNINGS PER SHARE AMOUNTS ("E.P.S") ATTRIBUTABLE TO
POWERSECURE INTERNATIONAL, INC. SHAREHOLDERS:
Continuing Operations
Basic 0.05 0.00 0.00 0.05
Diluted 0.05 0.00 0.00 0.05
Discontinued Operations
Basic 0.00 0.00 0.00 0.00
Diluted 0.00 0.00 0.00 0.00
Net Income
Basic 0.05 0.00 0.00 0.05
Diluted 0.05 0.00 0.00 0.05
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic 18,966 18,966 18,966 18,966
Diluted 19,163 19,163 19,163 19,163
PowerSecure International, Inc.
Non-GAAP Pro-forma Financial Measures -- 2Q11
Results of Operations Excluding WaterSecure Gain on Sale and PowerPackages Exit Plan Charges
Adjustments for WaterSecure Gain on Sale,
and PowerPackages Exit Plan Charges
As Reported
2Q11
WaterSecure
Gain on Sale
PowerPackages
Charges
Pro-forma
2Q11
Revenue 30,217 30,217
Cost of sales 22,547 (1,692) 20,855
Gross Profit 7,670 0 1,692 9,362
Gross Profit % Revenue 25.4% 31.0%
Operating expenses
General and administrative 8,509 (383) 8,126
Selling, marketing, and service 1,220 1,220
Depreciation and amortization 835 835
Total operating expenses 10,564 0 (383) 10,181
Operating income (loss) (2,894) 0 2,075 (819)
Other income (expense)
Gain on sale of unconsolidated affiliate 21,786 (21,786) 0
Equity income from unconsolidated affiliate 548 548
Management fees from unconsolidated affiliate 114 114
Interest income and other income 22 22
Interest expense (144) (144)
Income (loss) before income taxes 19,432 (21,786) 2,075 (279)
Income tax benefit (provision) (2,339) 2,622 (250) 34
Net income (loss) from continuing operations 17,093 (19,164) 1,825 (245)
Discontinued operations - income from operations (net of tax) 0 0 0 0
Discontinued operations - gain on sale (net of tax) 0 0 0 0
Net income (loss) 17,093 (19,164) 1,825 (245)
Net income attributable to noncontrolling interest 159 159
Net income (loss) attributable to PowerSecure International, Inc. 17,252 (19,164) 1,825 (86)
Summary of Amounts Attributable to PowerSecure International, Inc. shareholders
Income from continuing operations (net of tax) 17,252 (19,164) 1,825 (86)
Income from discontinued operations (net of tax) 0 0 0 0
Net income (loss) attributable to PowerSecure International, Inc. 17,252 (19,164) 1,825 (86)
EARNINGS PER SHARE AMOUNTS ("E.P.S") ATTRIBUTABLE
TO
POWERSECURE INTERNATIONAL, INC. SHAREHOLDERS:
Continuing Operations
Basic 0.91 (1.02) 0.10 0.00
Diluted 0.90 (1.00) 0.10 0.00
Discontinued Operations
Basic 0.00 0.00 0.00 0.00
Diluted 0.00 0.00 0.00 0.00
Net Income
Basic 0.91 (1.02) 0.10 0.00
Diluted 0.90 (1.00) 0.10 0.00
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic 18,857 18,857 18,857 18,857
Diluted 19,146 19,146 19,146 19,146
Non-GAAP Pro-forma Financial Measures:
Our references to our third quarter 2011 “Non-GAAP Pro-forma” financial measures of revenue, gross profit, gross margin as a percentage of revenue, operating expenses, operating income, net income from continuing operations, net income, net income attributable to PowerSecure International, Inc., diluted E.P.S. from continuing operations, diluted E.P.S. from discontinued operations, and diluted E.P.S. discussed and shown above constitute non-GAAP financial measures. They refer to our GAAP results, adjusted to show the results 1) without the gain on the sale of our WaterSecure investment (identified in our financial statements as our unconsolidated affiliate), with the third quarter 2011 amount representing a small positive adjustment from the gain on the sale which was announced and recorded in the Company’s second quarter of 2011, and 2) without the wind-down activity and charges related to the plan to exit our PowerPackages business, which was announced and initiated in the Company’s second quarter of 2011. For each of these two items we are utilizing a 37.5% effective tax rate to calculate their impact on net income.
Our references to our second quarter 2011 “Non-GAAP Pro-forma” financial measures of revenue, gross profit, gross margin as a percentage of revenue, operating expenses, operating income, net income from continuing operations, net income, net income attributable to PowerSecure International, Inc., diluted E.P.S. from continuing operations, diluted E.P.S. from discontinued operations, and diluted E.P.S. discussed and shown above constitute non-GAAP financial measures. They refer to our GAAP results, adjusted to show our results 1) without the gain on the sale of the WaterSecure investment (identified in our financial statements as our unconsolidated affiliate), 2) without the charges related to the write-down of assets in conjunction with our plan to exit our PowerPackages business, and 3) after allocating the tax expense incurred in our second quarter to each of the elements of our Non-GAAP Pro-forma reconciliation utilizing the second quarter of 2011’s effective tax rate, reflecting that virtually all of our tax net operating loss carry forwards (“NOL’s”) will be utilized as a result of the gain on the sale of our WaterSecure business.
We believe providing non-GAAP measures which show our pro-forma results with these items adjusted is valuable and useful as it allows our management and our board of directors to measure, monitor and evaluate our second and third quarter 2011 operating performance with the same consistent financial context as the business was managed and evaluated throughout the 2011 fiscal year. Additionally, because our WaterSecure business was sold in June, 2011, and our PowerPackages exit plan was also initiated in June, 2011, these Non-GAAP Pro-forma measures are not indicative of our current or future results.
We believe these Non-GAAP Pro-forma measures also provide meaningful information to investors in terms of enhancing their understanding of our second and third quarter 2011 operating performance and results, as they allow investors to more easily compare our financial performance on a consistent basis with the way it was reported and evaluated throughout 2011. These Non-GAAP Pro-forma measures also correspond with the way the majority of analysts’ current financial estimates are calculated. Our Non-GAAP Pro-forma measures should be considered only as supplements to, and not as substitutes for or in isolation from, our other measures of financial information prepared in accordance with GAAP, such as GAAP revenue, operating income, net income from continuing operations, net income, net income attributable to PowerSecure International, Inc., diluted E.P.S. from continuing operations, diluted E.P.S. from discontinued operations, and diluted E.P.S.
PowerSecure International, Inc.
Chris Hutter, 919-453-1760
Chief Financial Officer
Source: PowerSecure International, Inc.
POWR.. $4.15
I've been adding to a position in POWR today as this is another company that seems on the verge of explosive earnings..
PowerSecure Announces Actions to Enhance Focus on Core Business
Wake Forest, N.C. – June 2, 2011 – PowerSecure International, Inc. (Nasdaq: POWR) today announced it has taken actions to enhance its focus on its core business, including the sale of its non-core WaterSecure business, and the exit of its PowerPackages business.
The Company reported that its WaterSecure operations, which holds a minority interest in a water recycling and disposal business in Colorado, has been monetized through the sale of the business assets to an unaffiliated third party. As a result of the sale, which was an all-cash transaction completed on June 2, 2011, the Company expects to receive approximately $27 million of cash proceeds, including approximately $25 million in connection with the closing of the sale, and approximately $2 million which was placed in escrow and will be distributed in twelve months subject to customary post-closing adjustments and contingencies. PowerSecure will record a pre-tax gain on the sale of approximately $21 million in its second quarter ended June 30, 2011.
The results of the Company’s WaterSecure operations, including the gain on the sale, will be reported as continuing operations in its consolidated financial statements. The Company also reported that the WaterSecure transaction would utilize the majority of its $25 million of tax net operating loss carry-forwards in 2011, which will minimize the Company’s cash tax liability from the sale, but will also result in an increased effective tax rate in future periods which the Company expects will approximate statutory tax rates.
The Company also reported that in conjunction with its on-going efforts to enhance its focus on its core business, it will exit its PowerPackages business. PowerPackages is a medium speed generator business the Company entered into mid-2009. The Company has initiated a plan to exit the business by December 31, 2011. The Company expects to incur losses from the impairment of long-lived assets associated with the business, as proceeds from the disposition of the business are expected to be less than its carrying value of approximately $4 million. The Company also expects to incur additional expenses related to the exit plan, including employee and facility-related costs. As a result, the Company expects to record pre-tax charges related to the PowerPackages business during its second quarter ended June 30, 2011, of $2-4 million. The results of the Company’s PowerPackages operations, including the charges related to this exit plan, will be reported as continuing operations in its financial statements for the period ended June 30, 2011, and will remain in continuing operations until the disposition of the business is complete and operations cease, at which time it will be reclassified in to discontinued operations for all prior and subsequent periods.
Sidney Hinton, CEO of PowerSecure, said, “The sale of WaterSecure, in conjunction with the sale of Southern Flow earlier this year, completes our strategy of monetizing our non-core businesses to enhance our focus on our core Energy and Smart Grid Solutions business. This transaction provides us with significant capital to support the continuing growth of our core business, and enables us to deploy our capital more efficiently into areas of higher return. We want to thank our partners who operated our WaterSecure operations for their years of service and partnership, and we wish them well in their exciting new beginning.” Mr. Hinton continued, “Additionally, after a thoughtful evaluation of the best and highest use of our time and resources, we have decided to exit our PowerPackages business. While we continue to believe the business has a strong value proposition, we also believe it is important that we hone our focus on the business opportunities that have the most near and mid-term revenue and profit potential, and the exit of this business will save our Company approximately $1 million in on-going expenses annually.”
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers. PowerSecure’s Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company’s Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights® LED lighting products for grocery, drug, and convenience stores, and its SecureLite and PowerLite street lights for utilities and municipalities which are available through its EnergyLite business unit. The Company is a pioneer in developing Interactive Distributed Generation® systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power at peak power times, 2) provide utilities with dedicated electric power generation capacity to utilize for demand response purposes, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with transmission and distribution infrastructure construction and maintenance services, and engineering and regulatory consulting services. Additional information is available at www.powersecure.com.
This press release contains forward-looking statements within the meaning of and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the outlook for the Company’s future revenues, earnings, margins, cash resources and cash flow and other financial and operating information and data; the Company’s future business operations, strategies and prospects; management estimates of the proceeds and gains related to the sale of its WaterSecure operations, as well as charges, costs and cash expenditures expected to be incurred in connection with the discontinuance of the PowerPackages business, as well as future savings after exiting the business; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, higher than expected of different PowerPackages disposition expenses, lower than expected of different proceeds realized from the WaterSecure sale due to escrow reductions of additional liabilities paid; the recent downturn, disruption and volatility in the economy, financial markets and business markets and the effects thereof on the Company’s markets and customers, the demand for its products and services, and the Company’s access to capital; the size, timing and terms of sales and orders, including the Company’s revenue backlog discussed in this press release, and the risk of customers delaying, deferring or canceling purchase orders or making smaller purchases than expected; the effects of the sales of its Southern Flow and WaterSecure operations and the Company’s strategy of monetizing its non-core businesses on the Company’s financial condition and results of operations; the timely and successful development, production and market acceptance of new and enhanced products, services and technologies of the Company; the ability of the Company to obtain adequate supplies of key components and materials of sufficient reliability and quality for its products and technologies on a timely and cost-effective basis and the effects of related warranty claims and disputes; the ability of the Company to successfully expand its core distributed generation products and services, to successfully develop and achieve market acceptance of its new energy-related businesses, to successfully expand its recurring revenue projects, to manage its growth and to address the effects of any future changes in utility tariff structures and environmental requirements on its business solutions; the effects of competition; changes in customer and industry demand and preferences; the ability of the Company to continue the growth and diversification of its customer base; the ability of the Company to attract, retain, and motivate its executives and key personnel; changes in the energy industry in general and the electricity, oil, and natural gas markets in particular, including price levels; the effects of competition; the ability of the Company to secure and maintain key contracts and relationships; the effects of pending and future litigation, claims and disputes; and other risks, uncertainties and other factors identified from time to time in its reports filed with or furnished to the Securities and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K, as well as subsequently filed reports on Form 10-Q and Form 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
Contact
Chris Hutter
Chief Financial Officer
PowerSecure International, Inc.
(919) 453-1760
POWR.. $.4.62..
PowerSecure’s Proprietary IDG® PowerBlock Generator Technology Protects West Coast Data Center During Blackout
Business Wire - Sep 09 12:00 EDT
WAKE FOREST, N.C.--(BUSINESS WIRE)-- PowerSecure International, Inc. (Nasdaq: POWR) today reported its proprietary IDG® PowerBlock generator technology operated flawlessly to support a West Coast data center during the recent blackout. PowerSecure’s PowerBlock system carried the full load of the facility for the eleven hour duration of the blackout, protecting the data center’s operations until utility power was restored. The widespread nature and timing of the outage also impacted the ability of the data center to ensure its fuel supply was adequate – and PowerSecure’s employees quickly initiated actions on behalf of the customer to ensure fuel was readily available for any possible outage duration.
The event demonstrated the power of the combination of the reliability of PowerSecure’s proprietary generator technology, customer-centric dedicated employees and their strong focus on customer service, and PowerSecure’s “coast-to-coast” IDG power system network. PowerSecure’s IDG Smart Grid Monitoring team and fleet of standby power systems ensure that customers across the country receive immediate backup power in the event of an outage, and work with utilities to assist in the identification of outage locations. PowerSecure has approximately 1,000 IDG® power systems deployed to protect facilities against interruptions, spoilage, and enable customers to remain fully operational throughout power outage events.
Sidney Hinton, CEO of PowerSecure, said, "We couldn’t be more proud of our team, their dedication to the customer, and the technology we have developed. We stand ready to serve our customers and utility partners across the country 24 x 7.”
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers, as well as Energy Services to the oil and natural gas industry. PowerSecure’s Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company’s Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting product that saves grocery, drug, and convenience stores 70% off the cost to operate traditional fluorescent lighting in their refrigerated cases. The Company is a pioneer in developing Interactive Distributed Generation® systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power at peak power times, 2) provide utilities with dedicated electric power generation capacity to utilize for demand response purposes, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with transmission and distribution infrastructure construction and maintenance services, and engineering and regulatory consulting services. The Company provides Energy Services to the oil and natural gas industry through its Southern Flow and WaterSecure business units. Additional information is available at www.powersecure.com.
All forward-looking statements contained in this release are made within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the outlook for the businesses discussed in this press release and the Company’s future revenues, earnings, margins, and other financial and operating information and data; the Company’s outlook, prospects and expectations for revenues, net income, and E.P.S. results and growth generally, and related to the events described herein; the anticipated results of the Company’s products, services, and technologies; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, those risks, uncertainties and other factors identified from time to time in the Company's most recent Annual Report on Form 10-K, as well as in subsequent filings with the Securities and Exchange Commission, including reports on Forms 10-Q and 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
PowerSecure International, Inc.
Chris Hutter, 919-453-1760
Chief Financial Officer
Source: PowerSecure International, Inc.
POWR.. $4.62..
PowerSecure’s IDG® Power Systems Protect East Coast Facilities from Power Losses During Hurricane Irene, Utility Crews Assist with Power Restoration Efforts
Business Wire - Aug 29 12:00 EDT
WAKE FOREST, N.C.--(BUSINESS WIRE)-- PowerSecure International, Inc. (Nasdaq: POWR) today reported its Interactive Distributed Generation® (IDG®) standby power systems operated to support utilities and their commercial and industrial customers during over 130 power outage events caused by Hurricane Irene. PowerSecure’s IDG monitoring team has been in “storm mode” for over a week, continuously monitoring customer’s East Coast facilities “24 x 7” to protect their operations from costly interruptions and spoilage. PowerSecure’s IDG systems supported, and continue to support, a wide range of critical facilities, including hospitals, industrial sites, military installations, commercial locations, and schools – some of which were utilized as public shelters during the hurricane.
PowerSecure also reported that its Utility Services team has deployed crews to hurricane-ravaged areas along the East Coast to assist utilities with power restoration efforts. PowerSecure’s team is supporting utilities’ efforts to restore power as quickly as possible – and continues to actively deploy resources to assist utilities with their most critical needs. Given the widespread damage, it is anticipated PowerSecure’s crews could be deployed for these emergency services well into next week.
Sidney Hinton, CEO of PowerSecure, said, "Our IDG and Utility Services teams have been and continue to be in full storm mode supporting utilities and their commercial and industrial customers before, during, and after Hurricane Irene. We are blessed to be able to serve in these times of need, and our thoughts and prayers go out to those impacted by the devastating storms and for the safety of emergency teams assisting in the aftermath. Throughout the hurricane season, we will continue to closely monitor any developing storms, ensuring that our IDG systems are standing by to protect our customers’ facilities in the event of a power loss, and deploying our Utility Services teams to assist utilities with power restoration efforts as quickly and safely as possible.”
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers. PowerSecure’s Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company is a pioneer in developing Interactive Distributed Generation® systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power at peak power times, 2) provide utilities with dedicated electric power generation capacity to utilize for demand response purposes, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with transmission and distribution infrastructure construction and maintenance services, and engineering and regulatory consulting services. The Company’s Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting products for grocery, drug, and convenience stores, and its SecureLiteTM and PowerLiteTM street lights for utilities and municipalities which are available through its EnergyLite business unit. Additional information is available at www.powersecure.com.
All forward-looking statements contained in this release are made within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the amount and timing of the revenues associated with the activities and events discussed in this press release; the Company’s outlook, prospects and expectations for revenues, net income, and E.P.S. results and growth generally; the anticipated results of the Company’s products, services, and technologies; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, those risks, uncertainties and other factors identified from time to time in the Company's most recent Annual Report on Form 10-K, as well as in subsequent filings with the Securities and Exchange Commission, including reports on Forms 10-Q and 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
PowerSecure International, Inc.
Chris Hutter, Chief Financial Officer
919-453-1760
Source: PowerSecure International, Inc.
POWR.. $4.62.. PowerSecure Reports Second Quarter Results
Business Wire - Aug 04 16:15 EDT
Revenue Accelerates, Business Diversification Continues, and Recurring Revenue Reaches Record Levels
WAKE FOREST, N.C.--(BUSINESS WIRE)-- PowerSecure International, Inc. (Nasdaq: POWR) today reported its second quarter 2011 results. Second quarter 2011 revenues were $30.2 million, which compares on a sequential basis to $23.7 million in the first quarter of 2011, and on a year-over-year basis to $29.7 million in the second quarter of 2010. Diluted earnings per share (“E.P.S.”) were $0.90, which compares on a sequential basis to $0.25 in the first quarter of 2011, and on a year-over-year basis to $0.07 in the second quarter of 2010. Diluted E.P.S. from continuing operations were $0.90 which compares on a sequential basis to ($0.05) in the first quarter of 2011, and on a year-over-year basis to $0.06 in the second quarter of 2010.
During the second quarter of 2011 the Company took actions to further enhance its core business focus and provide capital to invest in attractive high margin business opportunities (including its distributed generation recurring revenue projects). These actions included selling its ownership interest in its non-core WaterSecure business and initiating a plan to exit its PowerPackages business. In conjunction with the previously completed sale of its Southern Flow business in January of this year, these actions have provided the Company with $42 million of additional capital to fuel its growth strategy. The Company has invested $7.6 million of capital in recurring revenue distributed generation projects since the start of 2011. These investments have accelerated its recurring revenue business growth, with second quarter recurring revenue achieving a record-high level of $2.5 million, a 43% increase over the prior year’s second quarter, and a $10 million annualized revenue run-rate.
Sidney Hinton, CEO of PowerSecure, said, “Our second quarter results demonstrate our team’s success in building a strong utility-focused business with a diverse portfolio of products and services and growing recurring revenue streams. In fact, two significant second quarter accomplishments include recording the highest revenue quarter in our Company’s history for our Utility Infrastructure and our IES LED lighting divisions, with strong growth in the breadth of our products/services and customer base in each of these early stage businesses. The revenue acceleration we realized from the first to the second quarter, which was up 27%, drove continued diversity in our business, as our second quarter revenues consisted of 43% Distributed Generation, 38% Utility Infrastructure, and 19% Energy Efficiency products and services. The headline on the quarter is that our growth strategies are working, and the investments we have made to broaden our product offerings and customer base are developing nicely and provide us with a strong set of growth catalysts for the future.”
Mr. Hinton added, “We are also very pleased with the growth of our recurring revenue business, and the achievement of record distributed generation recurring revenue in our second quarter, which is now operating at a $10 million annualized run-rate. We have focused on building our portfolio of recurring revenue projects as an element of our overall strategy to enhance long-term shareholder value. This strategy has required the sacrifice of some near-term revenue and profit recognition, however, and the large amount of second quarter activity related to installing recurring revenue projects negatively impacted our revenue and gross margin by approximately $6.5 million and $2.3 million, respectively, as revenue from these projects will be recognized over their 5-15 year contract period. That said, we are very excited about the growth we are seeing in this very profitable business model, and believe it will have a positive impact on shareholder value as our portfolio of these projects continues to build.”
The Company’s second quarter results included revenue growth on a sequential and year-over-year basis of 27.4% and 1.6%, respectively. On a sequential basis, compared to the first quarter of 2011, Distributed Generation revenues increased 14.8%, Utility Infrastructure revenues increased 51.9%, and Energy Efficiency revenues increased 18.6%. On a year-over-year basis, compared to the second quarter of 2010, Distributed Generation revenues were lower by 27.7%, Utility Infrastructure revenues increased 91.1%, and Energy Efficiency revenues were lower by 1.4%.
The Company’s revenue gains were offset by lower second quarter gross margin as a percentage of revenue, which was 25.4% on a GAAP basis, and 31.0% on a Non-GAAP basis after adjusting for $1.7 million of charges related to the Company’s plan to exit its PowerPackages business (see Non-GAAP financial measures, below). This compares to 32.3% in the first quarter of 2011, and 32.7% in the second quarter of 2010. The lower second quarter gross margin was driven by the large number of recurring revenue distributed generation projects installed during the period, which resulted in lower amounts of revenue and profit recognized in the second quarter. Additionally, the lower gross margins were a result of the specific mix of projects completed in each period, and higher Utility Infrastructure revenues which generally carry lower margins.
Operating expenses for the second quarter of 2011 were $10.6 million on a GAAP basis, and $10.2 million on a Non-GAAP basis after adjusting for $0.4 million of charges related to the Company’s plan to exit its PowerPackages business (see Non-GAAP financial measures, below). This compares to $9.9 million in the first quarter of 2011, and $9.3 million in the second quarter of 2011. The year-over-year increase in operating expenses is due to “step-up investments” the Company has made to expand and grow each of its Interactive Distributed Generation, Utility Infrastructure, and Energy Efficiency businesses. These include expenses related to new product and customer development, engineering, personnel and equipment, as well as additional sales and marketing activities, and increases in depreciation from capital expenditures for recurring revenue distributed generation systems.
During the second quarter of 2011 the Company recognized a pre-tax gain of $21.8 million related to the sale of its WaterSecure investment, and recorded charges of $2.1 million related the PowerPackages exit plan (including $1.7 million in cost of sales, and $0.4 million in operating expense), each of which were recorded as components of continuing operations. The Company provided Non-GAAP Pro-forma results of operations to adjust for the WaterSecure gain and PowerPackages charges (see Non-GAAP financial measures, below). Adjusting for items, Non-GAAP diluted E.P.S. was $0.00 for the Company’s second quarter.
The Company’s revenue backlog stands at $147 million, representing revenue expected to be recognized after June 30, 2011, for periods including the third quarter of 2011 onward. This backlog figure includes $15 million of new business announced on July 13, 2011, and approximately $8 million of additional new business which the Company was awarded in late-July. The Company’s revenue backlog and the estimated timing of revenue recognition are outlined below, including “project-based revenues” expected to be recognized as projects are completed, and “recurring revenues” expected to be recognized over the life of the contracts:
Revenue Backlog expected to be recognized after June 30, 2011
Anticipated Estimated Primary
Description Revenue Recognition Period
Project-based Revenue -- Near term $62 Million 3Q11 through 1Q12
Project-based Revenue -- Long term $17 Million 2Q12 through 2013
Recurring Revenue $68 Million 3Q11 through 2019
Revenue Backlog expected to be recognized after June 30, 2011 $147 Million
Note: Anticipated revenue and estimated primary recognition periods are subject to risks and uncertainties as indicated in the Company's safe harbor statement, below. Consistent with past practice, these figures are not intended to constitute the Company's total revenue over the indicated time periods, as the Company has additional, regular on-going revenues. Examples of additional, regular recurring revenues include revenues from the engineering fees, and service revenue, among others. Numbers may not add due to rounding.
Orders in the Company’s revenue backlog are subject to delay, deferral, acceleration, resizing, or cancellation from time to time. Given the irregular sales cycle of customer orders, and especially of large orders, the revenue backlog at any given time is not necessarily an accurate indication of our future revenues.
The Company will host a conference call commencing today at 5:30 p.m. eastern time to discuss its second quarter 2011 results, business operations, strategic initiatives and prospects for the future. The conference call will be webcast live and can be accessed from the Investor Relations section of the Company's website at www.powersecure.com. Participants can also access the call by dialing 888-713-4205 (or 617-213-4862 if dialing internationally), and providing pass code 85448748. If you are unable to participate during the live webcast, a replay of the conference call will be available beginning today at 8:30 p.m. eastern time through midnight on September 1, 2011. To listen to the replay, dial toll-free 888-286-8010 (or 617-801-6888 if dialing internationally), and enter pass code 84742099. In addition, the webcast will be archived on the Company's website at www.powersecure.com.
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers. PowerSecure’s Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company’s Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights® LED lighting products for grocery, drug, and convenience stores, and its SecureLite and PowerLite street lights for utilities and municipalities which are available through its EnergyLite business unit. The Company is a pioneer in developing Interactive Distributed Generation® systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power at peak power times, 2) provide utilities with dedicated electric power generation capacity to utilize for demand response purposes, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with transmission and distribution infrastructure construction and maintenance services, and engineering and regulatory consulting services. Additional information is available at www.powersecure.com.
This press release contains forward-looking statements within the meaning of and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the outlook for the Company's future revenues, earnings, margins, cash resources and cash flow and other financial and operating information and data; the Company's future business operations, strategies and prospects; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, the recent downturn, disruption and volatility in the economy, financial markets and business markets and the effects thereof on the Company's markets and customers, the demand for its products and services, and the Company's access to capital; the size, timing and terms of sales and orders, including the Company's revenue backlog discussed in this press release, and the risk of customers delaying, deferring or canceling purchase orders or making smaller purchases than expected; the effects of the sale of Southern Flow business and WaterSecure investment and the Company's strategy of monetizing its non-core businesses on the Company’s financial condition and results of operations; the effects of exiting the Company’s PowerPackages business, including current and future charges related to the exit plan, and timing of the completion of the exit and wind-down activities; the timely and successful development, production and market acceptance of new and enhanced products, services and technologies of the Company; the ability of the Company to obtain adequate supplies of key components and materials of sufficient reliability and quality for its products and technologies on a timely and cost-effective basis and the effects of related warranty claims and disputes; the ability of the Company to successfully expand its core distributed generation products and services, to successfully develop and achieve market acceptance of its new energy-related businesses, to successfully expand its recurring revenue projects, to manage its growth and to address the effects of any future changes in utility tariff structures and environmental requirements on its business solutions; the effects of competition; changes in customer and industry demand and preferences; the ability of the Company to continue the growth and diversification of its customer base; the ability of the Company to attract, retain, and motivate its executives and key personnel; changes in the energy industry in general and the electricity, oil, and natural gas markets in particular, including price levels; the effects of competition; the ability of the Company to secure and maintain key contracts and relationships; the effects of pending and future litigation, claims and disputes; and other risks, uncertainties and other factors identified from time to time in its reports filed with or furnished to the Securities and Exchange Commission, including the Company's most recent Annual Report on Form 10-K, as well as subsequently filed reports on Form 10-Q and Form 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
PowerSecure International, Inc.
Consolidated Statements of Operations (unaudited)
($000's except per share data)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2011 2010 2011 2010
Revenue 30,217 29,733 53,930 50,193
Cost of sales 22,547 20,000 38,601 32,351
Gross Profit 7,670 9,733 15,329 17,842
Operating expenses
General and administrative 8,509 7,326 16,428 13,788
Selling, marketing, and service 1,220 1,348 2,378 2,394
Depreciation and amortization 835 671 1,641 1,255
Total operating expenses 10,564 9,345 20,447 17,437
Operating income (loss) (2,894) 388 (5,118) 405
Other income (expense)
Gain on sale of unconsolidated affiliate 21,786 0 21,786 0
Equity income from unconsolidated affiliate 548 807 1,559 1,837
Management fees from unconsolidated affiliate 114 142 282 296
Interest income and other income 22 23 42 53
Interest expense (144) (139) (286) (280)
Income (loss) before income taxes 19,432 1,221 18,265 2,311
Income tax benefit (provision) (2,339) (228) (2,256) (433)
Net income (loss) from continuing operations 17,093 993 16,009 1,878
Discontinued operations - income from operations (net of tax) 0 291 0 810
Discontinued operations - gain on sale (net of tax) 0 0 5,636 0
Net income (loss) 17,093 1,284 21,645 2,688
Net income attributable to noncontrolling interest 159 40 343 (147)
Net income (loss) attributable to PowerSecure International,
Inc.
17,252 1,324 21,988 2,541
Summary of Amounts Attributable to PowerSecure International, Inc. shareholders
Income from continuing operations (net of tax) 17,252 1,033 16,352 1,731
Income from discontinued operations (net of tax) 0 291 5,636 810
Net income (loss) attributable to PowerSecure International,
Inc.
17,252 1,324 21,988 2,541
EARNINGS PER SHARE AMOUNTS ("E.P.S") ATTRIBUTABLE TO
POWERSECURE INTERNATIONAL, INC. SHAREHOLDERS:
Continuing Operations
Basic 0.91 0.06 0.87 0.10
Diluted 0.90 0.06 0.86 0.10
Discontinued Operations
Basic 0.00 0.01 0.30 0.04
Diluted 0.00 0.01 0.29 0.04
Net Income
Basic 0.91 0.07 1.17 0.14
Diluted 0.90 0.07 1.15 0.14
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic 18,857 17,933 18,788 17,587
Diluted 19,146 18,566 19,113 18,136
PowerSecure International, Inc.
Condensed Consolidated Balance Sheets (unaudited)
($000's)
June 30, December 31,
ASSETS 2011 2010
CURRENT ASSETS:
Cash and cash equivalents 36,148 8,202
Trade receivables, net of allowance for doubtful accounts 41,869 29,290
Assets of discontinued operations held for sale 0 12,183
Inventories 26,028 25,011
Current deferred income taxes 1,667 1,731
Prepaid expenses and other current assets 776 933
Total Current Assets 106,488 77,350
PROPERTY, PLANT, AND EQUIPMENT:
Equipment 31,257 24,946
Furniture and fixtures 280 280
Land, building, and improvements 5,627 5,720
Total property, plant, and equipment at cost 37,164 30,946
Less accumulated depreciation and amortization 6,857 5,899
Property, plant, and equipment, net 30,307 25,047
OTHER ASSETS:
Goodwill 7,970 7,970
Deferred income taxes, net of current portion 154 1,244
Restricted annuity contract 2,341 2,306
Intangible rights and capitalized software, net of accum amort 1,853 1,942
Investment in unconsolidated affiliate 1,445 4,346
Other assets 287 324
Total other assets 14,050 18,132
TOTAL ASSETS 150,845 120,529
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable 7,339 8,438
Accrued and other liabilities 14,618 10,986
Liabilities of discontinued operations held for sale 0 1,411
Current income taxes payable 989 251
Current unrecognized tax benefit 954 954
Current portion of capital lease obligations 818 796
Total current liabilities
24,718 22,836
LONG-TERM LIABILITIES
Revolving Line of Credit 10,000 5,000
Capital lease obligations, net of current portion 3,233 3,647
Unrecognized tax benefit 749 749
Other long-term liabilities
2,182 1,053
Total long-term liabilities
16,164 10,449
STOCKHOLDERS' EQUITY
Preferred stock - undesignated
0 0
Preferred stock - Series C 0 0
Common stock 190 187
Additional paid-in-capital 115,862 114,791
Accumulated deficit (7,501) (29,489)
Total PowerSecure International, Inc. stockholders' equity 108,551 85,489
Noncontrolling Interest 1,412 1,755
Total stockholders' equity 109,963 87,244
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 150,845 120,529
PowerSecure International, Inc.
Condensed Consolidated Statement of Cash Flows (unaudited)
($000's)
Six Months Ended
June 30, June 30,
2011 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) 21,645 2,688
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
Gain on sale of unconsolidated affiliate (21,786) 0
Income from discontinued operations (5,636) (810)
Depreciation and amortization 1,641 1,255
Stock compensation expense 926 988
Distributions to noncontrolling interest shareholder 0 (877)
Loss on writedown or disposal of equipment 428 3
Deferred income taxes 1,154 0
Equity in income of unconsolidated affiliate (1,559) (1,837)
Distributions from unconsolidated affiliate 607 1,618
Changes in operating assets and liabilities, net of
effect of acquisitions:
Trade receivables, net (12,580) (9,031)
Inventories (1,016) (5,440)
Other current assets and liabilities 895 578
Other noncurrent assets and liabilities 1,132 193
Accounts payable (1,099) 1,952
Restructuring charges 0 (325)
Accrued and other liabilities 3,525 (411)
Net cash provided by (used in) continuing operations (11,723) (9,456)
Net cash provided by (used in) discontinued operations 0 956
Net cash provided by (used in) operating activities (11,723) (8,500)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, plant and equipment (9,040) (2,489)
Additions to intangible rights and software development (268) (432)
Acquisitions 0 (4,413)
Proceeds from sale of property, plant and equipment 0 6
Proceeds from sale of unconsolidated affiliate 25,610 0
Proceeds from sale of discontinued operations 16,515 0
Discontinued operations investing activities 0 (63)
Net cash provided by (used in) investing activities 32,817 (7,391)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings (payments) on revolving line of credit 5,000 0
Proceeds from sale-leaseback transactions 2,097 0
Payments on capital lease obligations (393) (373)
Proceeds from stock option and warrant exercises, net of shares tendered 148 69
Net cash provided by (used in) financing activities 6,852 (304)
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 27,946 (16,195)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 8,202 20,169
CASH AND CASH EQUIVALENTS AT END OF PERIOD 36,148 3,974
Non-GAAP Pro-forma Financial Measures:
Our references to our second quarter 2011 “Non-GAAP Pro-forma” financial measures of revenue, gross profit, gross margin as a percentage of revenue, operating expenses, operating income, net income from continuing operations, net income, net income attributable to PowerSecure International, Inc., diluted E.P.S. from continuing operations, diluted E.P.S. from discontinued operations, and diluted E.P.S. discussed above and shown below constitute non-GAAP financial measures. They refer to our GAAP results, adjusted to show our results 1) without the gain on the sale of the WaterSecure investment (identified in our financial statements as our unconsolidated affiliate), 2) without the charges related to the write-down of assets in conjunction with our plan to exit our PowerPackages business, and 3) after allocating the tax expense incurred in our second quarter to each of the elements of our Non-GAAP Pro-forma reconciliation utilizing the third quarter of 2011’s effective tax rate, reflecting that virtually all of our tax net operating loss carry forwards (“NOL’s”) will be utilized as a result of the gain on the sale of our WaterSecure business.
We believe providing non-GAAP measures which show our pro-forma results with these items adjusted is a valuable and useful as it allows our management and our board of directors to measure, monitor and evaluate our second quarter 2011 operating performance with the same consistent financial context as the business was managed and evaluated throughout the 2011 fiscal year. Additionally, because our WaterSecure business was sold in June, 2011, and our PowerPackages exit plan was also initiated in June, 2011, these Non-GAAP Pro-forma measures are not indicative of our current or future results.
We believe these Non-GAAP Pro-forma measures also provide meaningful information to investors in terms of enhancing their understanding of our second quarter 2011 operating performance and results, as they allow investors to more easily compare our financial performance on a consistent basis with the way it was reported and evaluated throughout 2011. These Non-GAAP Pro-forma measures also correspond with the way the majority of analysts’ current financial estimates are calculated. Our Non-GAAP Pro-forma measures should be considered only as supplements to, and not as substitutes for or in isolation from, our other measures of financial information prepared in accordance with GAAP, such as GAAP revenue, operating income, net income from continuing operations, net income, net income attributable to PowerSecure International, Inc., diluted E.P.S. from continuing operations, diluted E.P.S. from discontinued operations, and diluted E.P.S.
PowerSecure International, Inc.
Non-GAAP Pro-forma Financial Measures
Results of Operations Excluding WaterSecure Gain on Sale and PowerPackages Exit Plan Charges
Adjustments for WaterSecure Gain on Sale,
and PowerPackages Exit Plan Charges
As Reported
2Q11
WaterSecure
Gain on Sale
PowerPackages
Charges
Pro-forma
2Q11
Revenue 30,217 30,217
Cost of sales 22,547 (1,692) 20,855
Gross Profit 7,670 0 1,692 9,362
Gross Profit % Revenue 25.4% 31.0%
Operating expenses
General and administrative 8,509 (383) 8,126
Selling, marketing, and service 1,220 1,220
Depreciation and amortization 835 835
Total operating expenses 10,564 0 (383) 10,181
Operating income (loss) (2,894) 0 2,075 (819)
Other income (expense)
Gain on sale of unconsolidated affiliate 21,786 (21,786) 0
Equity income from unconsolidated affiliate 548 548
Management fees from unconsolidated affiliate 114 114
Interest income and other income 22 22
Interest expense (144) (144)
Income (loss) before income taxes 19,432 (21,786) 2,075 (279)
Income tax benefit (provision) (2,339) 2,622 (250) 34
Net income (loss) from continuing operations 17,093 (19,164) 1,825 (245)
Discontinued operations - income from operations (net of tax) 0 0 0 0
Discontinued operations - gain on sale (net of tax) 0 0 0 0
Net income (loss) 17,093 (19,164) 1,825 (245)
Net income attributable to noncontrolling interest 159 159
Net income (loss) attributable to PowerSecure International, Inc. 17,252 (19,164) 1,825 (86)
Summary of Amounts Attributable to PowerSecure International, Inc. shareholders
Income from continuing operations (net of tax) 17,252 (19,164) 1,825 (86)
Income from discontinued operations (net of tax) 0 0 0 0
Net income (loss) attributable to PowerSecure International, Inc. 17,252 (19,164) 1,825 (86)
EARNINGS PER SHARE AMOUNTS ("E.P.S") ATTRIBUTABLE TO
POWERSECURE INTERNATIONAL, INC. SHAREHOLDERS:
Continuing Operations
Basic 0.91 (1.02) 0.10 0.00
Diluted 0.90 (1.00) 0.10 0.00
Discontinued Operations
Basic 0.00 0.00 0.00 0.00
Diluted 0.00 0.00 0.00 0.00
Net Income
Basic 0.91 (1.02) 0.10 0.00
Diluted 0.90 (1.00) 0.10 0.00
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic 18,857 0 0 18,857
Diluted 19,146 0 0 19,146
PowerSecure International, Inc.
Chris Hutter, 919-453-1760
Chief Financial Officer
Source: PowerSecure International, Inc.
POWR.. $4.62.. PowerSecure Announces $15 Million of New Business Awards, Including New Micro-grid and SmartStationTM Projects
Business Wire - Jul 13 08:30 EDT
WAKE FOREST, N.C.--(BUSINESS WIRE)-- PowerSecure International, Inc. (Nasdaq: POWR) today announced it has received $15 million of new business awards, including an order for its breakthrough Micro-grid system, as well as two orders to upgrade utility substations with PowerSecure SmartStationTM technology. The Company has invested in the development of both of these products as a means to serve its utility partners with industry-leading technologies that complement its traditional utility infrastructure products and services.
Sidney Hinton, CEO of PowerSecure, commented, “We are thrilled with the new orders we are announcing today, especially that we will be deploying another Micro-grid project, and that we have the opportunity to serve utilities with two SmartStationTM technology awards. It is gratifying to see our team’s vision to develop these new technologies be met with growing interest and success in the marketplace. Our team has invested two years of hard work and amazing ingenuity to develop these products for the Utility Infrastructure channel, and the traction we are showing is very exciting.”
The $15 million of new awards announced today include $7 million of IDG Smart Grid Power System orders, $6 million of Utility Infrastructure projects, and $2 million of LED lighting products. The Company expects the majority of these projects to be completed, and the revenue recognized, over the four quarters beginning with the third quarter of 2011, with the exception of $1 million of IDG system revenue related to a new long-term recurring revenue contract. These new orders will be included in the Company’s backlog reported in conjunction with its second quarter 2011 earnings release.
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers. PowerSecure’s Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company’s Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting products for grocery, drug, and convenience stores, and its SecureLiteTM and PowerLiteTM street lights for utilities and municipalities which are available through its EnergyLite business unit. The Company is a pioneer in developing Interactive Distributed Generation® systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power at peak power times, 2) provide utilities with dedicated electric power generation capacity to utilize for demand response purposes, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with transmission and distribution infrastructure construction and maintenance services, and engineering and regulatory consulting services. Additional information is available at www.powersecure.com.
All forward-looking statements contained in this release are made within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the amount and timing of the revenues associated with the new business discussed in this press release; the Company’s outlook, prospects and expectations for revenues, net income, and E.P.S. results and growth generally; the anticipated results of the Company’s products, services, and technologies; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, those risks, uncertainties and other factors identified from time to time in the Company's most recent Annual Report on Form 10-K, as well as in subsequent filings with the Securities and Exchange Commission, including reports on Forms 10-Q and 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
PowerSecure International, Inc.
Chris Hutter, 919-453-1760
Chief Financial Officer
Source: PowerSecure International, Inc.
Copyright Business Wire 2011
POWR $4.62.. PowerSecure Announces Actions to Enhance Focus on Core Business
Business Wire - Jun 02 16:30 EDT
WAKE FOREST, N.C.--(BUSINESS WIRE)-- PowerSecure International, Inc. (Nasdaq: POWR) today announced it has taken actions to enhance its focus on its core business, including the sale of its non-core WaterSecure business, and the exit of its PowerPackages business.
The Company reported that its WaterSecure operations, which holds a minority interest in a water recycling and disposal business in Colorado, has been monetized through the sale of the business assets to an unaffiliated third party. As a result of the sale, which was an all-cash transaction completed on June 2, 2011, the Company expects to receive approximately $27 million of cash proceeds, including approximately $25 million in connection with the closing of the sale, and approximately $2 million which was placed in escrow and will be distributed in twelve months subject to customary post-closing adjustments and contingencies. PowerSecure will record a pre-tax gain on the sale of approximately $21 million in its second quarter ended June 30, 2011.
The results of the Company’s WaterSecure operations, including the gain on the sale, will be reported as continuing operations in its consolidated financial statements. The Company also reported that the WaterSecure transaction would utilize the majority of its $25 million of tax net operating loss carry-forwards in 2011, which will minimize the Company’s cash tax liability from the sale, but will also result in an increased effective tax rate in future periods which the Company expects will approximate statutory tax rates.
The Company also reported that in conjunction with its on-going efforts to enhance its focus on its core business, it will exit its PowerPackages business. PowerPackages is a medium speed generator business the Company entered into mid-2009. The Company has initiated a plan to exit the business by December 31, 2011. The Company expects to incur losses from the impairment of long-lived assets associated with the business, as proceeds from the disposition of the business are expected to be less than its carrying value of approximately $4 million. The Company also expects to incur additional expenses related to the exit plan, including employee and facility-related costs. As a result, the Company expects to record pre-tax charges related to the PowerPackages business during its second quarter ended June 30, 2011, of $2-4 million. The results of the Company’s PowerPackages operations, including the charges related to this exit plan, will be reported as continuing operations in its financial statements for the period ended June 30, 2011, and will remain in continuing operations until the disposition of the business is complete and operations cease, at which time it will be reclassified in to discontinued operations for all prior and subsequent periods.
Sidney Hinton, CEO of PowerSecure, said, “The sale of WaterSecure, in conjunction with the sale of Southern Flow earlier this year, completes our strategy of monetizing our non-core businesses to enhance our focus on our core Energy and Smart Grid Solutions business. This transaction provides us with significant capital to support the continuing growth of our core business, and enables us to deploy our capital more efficiently into areas of higher return. We want to thank our partners who operated our WaterSecure operations for their years of service and partnership, and we wish them well in their exciting new beginning.” Mr. Hinton continued, “Additionally, after a thoughtful evaluation of the best and highest use of our time and resources, we have decided to exit our PowerPackages business. While we continue to believe the business has a strong value proposition, we also believe it is important that we hone our focus on the business opportunities that have the most near and mid-term revenue and profit potential, and the exit of this business will save our Company approximately $1 million in on-going expenses annually.”
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers. PowerSecure’s Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company’s Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights® LED lighting products for grocery, drug, and convenience stores, and its SecureLite and PowerLite street lights for utilities and municipalities which are available through its EnergyLite business unit. The Company is a pioneer in developing Interactive Distributed Generation® systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power at peak power times, 2) provide utilities with dedicated electric power generation capacity to utilize for demand response purposes, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with transmission and distribution infrastructure construction and maintenance services, and engineering and regulatory consulting services. Additional information is available at www.powersecure.com.
This press release contains forward-looking statements within the meaning of and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the outlook for the Company's future revenues, earnings, margins, cash resources and cash flow and other financial and operating information and data; the Company's future business operations, strategies and prospects; management estimates of the proceeds and gains related to the sale of its WaterSecure operations, as well as charges, costs and cash expenditures expected to be incurred in connection with the discontinuance of the PowerPackages business, as well as future savings after exiting the business; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, higher than expected of different PowerPackages disposition expenses, lower than expected of different proceeds realized from the WaterSecure sale due to escrow reductions of additional liabilities paid; the recent downturn, disruption and volatility in the economy, financial markets and business markets and the effects thereof on the Company's markets and customers, the demand for its products and services, and the Company's access to capital; the size, timing and terms of sales and orders, including the Company's revenue backlog discussed in this press release, and the risk of customers delaying, deferring or canceling purchase orders or making smaller purchases than expected; the effects of the sales of its Southern Flow and WaterSecure operations and the Company's strategy of monetizing its non-core businesses on the Company’s financial condition and results of operations; the timely and successful development, production and market acceptance of new and enhanced products, services and technologies of the Company; the ability of the Company to obtain adequate supplies of key components and materials of sufficient reliability and quality for its products and technologies on a timely and cost-effective basis and the effects of related warranty claims and disputes; the ability of the Company to successfully expand its core distributed generation products and services, to successfully develop and achieve market acceptance of its new energy-related businesses, to successfully expand its recurring revenue projects, to manage its growth and to address the effects of any future changes in utility tariff structures and environmental requirements on its business solutions; the effects of competition; changes in customer and industry demand and preferences; the ability of the Company to continue the growth and diversification of its customer base; the ability of the Company to attract, retain, and motivate its executives and key personnel; changes in the energy industry in general and the electricity, oil, and natural gas markets in particular, including price levels; the effects of competition; the ability of the Company to secure and maintain key contracts and relationships; the effects of pending and future litigation, claims and disputes; and other risks, uncertainties and other factors identified from time to time in its reports filed with or furnished to the Securities and Exchange Commission, including the Company's most recent Annual Report on Form 10-K, as well as subsequently filed reports on Form 10-Q and Form 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
PowerSecure International, Inc.
Chris Hutter, 919-453-1760
Chief Financial Officer
Source: PowerSecure International, Inc.
Copyright Business Wire 2011
POWR.. $4.62 PowerSecure Reports First Quarter Results
Business Wire - May 05 16:15 EDT
Revenues Grow ‘Across the Board’ in Distributed Generation, Energy Efficiency, and Utility Infrastructure Businesses
WAKE FOREST, N.C.--(BUSINESS WIRE)-- PowerSecure International, Inc. (Nasdaq: POWR) today reported its first quarter 2011 results. First quarter 2011 revenues were $23.7 million compared to $20.5 million in the first quarter of 2010, driven by revenue growth in each of its Energy and Smart Grid Solutions businesses including Distributed Generation, Utility Infrastructure, and Energy Efficiency. Diluted earnings per share (“E.P.S.”) were $0.25 compared to $0.07 in the first quarter of 2010, and diluted E.P.S. from continuing operations was a loss of ($0.05) compared to income of $0.04 in the first quarter of 2010. The Company recognized an after-tax gain of $5.6 million during the first quarter of 2011 related to the completion of the sale of its non-core Southern Flow business, which is recorded as discontinued operations.
Sidney Hinton, CEO of PowerSecure, said, “We are very pleased with our first quarter results, with our revenues showing ‘across-the-board’ gains in all three of our strategic growth areas of Distributed Generation, Utility Infrastructure, and Energy Efficiency – on both a sequential and year-over-year basis. The investments we made in 2010 to broaden our product offerings and customer base provide us with a strong set of growth catalysts, and these initiatives are beginning to enhance our top-line results. Additionally, our operating expenses, which are lower on a sequential basis, reflect the fact that we are strongly focused on maximizing the productivity of these investments, and delivering our businesses’ full revenue and profit potential.”
Mr. Hinton added, “We also continue to invest in our growing Distributed Generation recurring revenue business model. In fact, 34% of the Distributed Generation systems we installed during the first quarter were PowerSecure-owned systems, under contracts which generate recurring revenues over a 5-15 year period. The fact that 34% of our installations were for these company-owned projects makes our 7.5% year-over-year increase in our Distributed Generation revenues even more significant, as we are sacrificing near-term revenue recognition from these projects to build our recurring revenue business and enhance long-term shareholder value.”
The Company’s results were driven by year-over-year revenue growth in its core Energy and Smart Grid Solutions segment of 15.9%, including growth in its Interactive Distributed Generation revenues of 7.5%, Utility Infrastructure revenues of 41.1%, and Energy Efficiency revenues of 5.6%. These revenue gains were offset by lower first quarter gross margin as a percentage of revenue, which was 32.3% compared to 39.6% in the first quarter of 2010, driven by differences in the gross margins of the mix of projects completed in each period. Operating expenses for the first quarter of 2011 were $9.9 million, $0.4 million lower on a sequential basis than the fourth quarter of 2010, and $1.8 million higher on a year-over-year basis than the first quarter of 2010. The year-over-year increase in operating expenses is due to investments the Company has made in business expansion in each of its Interactive Distributed Generation, Utility Infrastructure, and Energy Efficiency businesses. These include investments in new product and customer development, engineering, personnel and equipment, as well as additional sales and marketing activities, and increases in depreciation from capital expenditures for Distributed Generation systems deployed to support the Company’s growing recurring revenue business. The Company’s Energy Services Segment, which consists of its WaterSecure investment, also contributed $1.2 million of pre-tax income in both the first quarter of 2011 and the first quarter of 2010.
The Company’s revenue backlog stands at $146 million, representing revenue expected to be recognized after March 31, 2011, for periods including the second quarter of 2011 onward. The Company’s revenue backlog and the estimated timing of revenue recognition are outlined below, including “project-based revenues” expected to be recognized as projects are completed, and “recurring revenues” expected to be recognized over the life of the contracts:
Revenue Backlog expected to be recognized after March 31, 2011
Anticipated Estimated Primary
Description Revenue Recognition Period
Project-based Revenue -- Near term $60 Million 2Q11 through 4Q11
Project-based Revenue -- Long term $17 Million 1Q12 through 2013
Recurring Revenue $69 Million 2Q11 through 2019
Revenue Backlog expected to be recognized after March 31, 2011 $146 Million
Note: Anticipated revenue and estimated primary recognition periods are subject to risks and uncertanities
as indicated in the Company's safe harbor statement, below. Consistent with past practice, these figures
are not intended to constitute the Company's total revenue over the indicated time periods, as the Company
has additional, regular on-going revenues. Examples of additional, regular recurring revenues include
revenues from the engineering fees, and service revenue, among others. Numbers may not add due to rounding.
Orders in the Company’s revenue backlog are subject to delay, deferral, acceleration, resizing, or cancellation from time to time. Given the irregular sales cycle of customer orders, and especially of large orders, the revenue backlog at any given time is not necessarily an accurate indication of our future revenues.
The Company will host a conference call commencing today at 5:30 p.m. eastern time to discuss its first quarter 2011 results, business operations, strategic initiatives and prospects for the future. The conference call will be webcast live and can be accessed from the Investor Relations section of the Company's website at www.powersecure.com. Participants can also access the call by dialing 888-713-4216 (or 617-213-4868 if dialing internationally), and providing pass code 64096406. If you are unable to participate during the live webcast, a replay of the conference call will be available beginning today at 8:30 p.m. eastern time through midnight on June 2, 2011. To listen to the replay, dial toll-free 888-286-8010 (or 617-801-6888 if dialing internationally), and enter pass code 17220879. In addition, the webcast will be archived on the Company's website at www.powersecure.com.
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers. PowerSecure’s Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company’s Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights® LED lighting products for grocery, drug, and convenience stores, and its SecureLite and PowerLite street lights for utilities and municipalities which are available through its EnergyLite business unit. The Company is a pioneer in developing Interactive Distributed Generation® systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power at peak power times, 2) provide utilities with dedicated electric power generation capacity to utilize for demand response purposes, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with transmission and distribution infrastructure construction and maintenance services, and engineering and regulatory consulting services. Additional information is available at www.powersecure.com.
This press release contains forward-looking statements within the meaning of and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the outlook for the Company's future revenues, earnings, margins, cash resources and cash flow and other financial and operating information and data; the Company's future business operations, strategies and prospects; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, the recent downturn, disruption and volatility in the economy, financial markets and business markets and the effects thereof on the Company's markets and customers, the demand for its products and services, and the Company's access to capital; the size, timing and terms of sales and orders, including the Company's revenue backlog discussed in this press release, and the risk of customers delaying, deferring or canceling purchase orders or making smaller purchases than expected; the effects of the sale of Southern Flow and the Company's strategy of monetizing its non-core businesses on the Company’s financial condition and results of operations; the timely and successful development, production and market acceptance of new and enhanced products, services and technologies of the Company; the ability of the Company to obtain adequate supplies of key components and materials of sufficient reliability and quality for its products and technologies on a timely and cost-effective basis and the effects of related warranty claims and disputes; the ability of the Company to successfully expand its core distributed generation products and services, to successfully develop and achieve market acceptance of its new energy-related businesses, to successfully expand its recurring revenue projects, to manage its growth and to address the effects of any future changes in utility tariff structures and environmental requirements on its business solutions; the effects of competition; changes in customer and industry demand and preferences; the ability of the Company to continue the growth and diversification of its customer base; the ability of the Company to attract, retain, and motivate its executives and key personnel; changes in the energy industry in general and the electricity, oil, and natural gas markets in particular, including price levels; the effects of competition; the ability of the Company to secure and maintain key contracts and relationships; the effects of pending and future litigation, claims and disputes; and other risks, uncertainties and other factors identified from time to time in its reports filed with or furnished to the Securities and Exchange Commission, including the Company's most recent Annual Report on Form 10-K, as well as subsequently filed reports on Form 10-Q and Form 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
PowerSecure International, Inc.
Consolidated Statements of Operations (unaudited)
($000's except per share data)
Three Months Ended
March 31, March 31,
2011 2010
Revenue 23,713 20,460
Cost of sales 16,054 12,351
Gross Profit 7,659 8,109
Operating expenses
General and administrative 7,919 6,462
Selling, marketing, and service 1,158 1,046
Depreciation and amortization 806 584
Total operating expenses 9,883 8,092
Operating income (loss) (2,224 ) 17
Other income (expense)
Equity income 1,011 1,030
Management fees 168 154
Interest income and other income 20 30
Interest expense (142 ) (141 )
Income (loss) before income taxes (1,167 ) 1,090
Income tax benefit (provision) 83 (205 )
Net income (loss) from continuing operations (1,084 ) 885
Discontinued operations - income from operations (net of tax) 0 519
Discontinued operations - gain on sale (net of tax) 5,636 0
Net income (loss) 4,552 1,404
Less: Net (income) loss attributable to noncontrolling interest 184 (187 )
Net income (loss) attributable to PowerSecure International, Inc. 4,736 1,217
Summary of Amounts Attributable to PowerSecure International, Inc. shareholders
Income (loss) from continuing operations (net of tax) (900 ) 698
Income (loss) from discontinued operations (net of tax) 5,636 519
Net income (loss) attributable to PowerSecure International, Inc. 4,736 1,217
EARNINGS PER SHARE AMOUNTS ("E.P.S") ATTRIBUTABLE TO
POWERSECURE INTERNATIONAL, INC. SHAREHOLDERS:
Continuing Operations
Basic (0.05 ) 0.04
Diluted (0.05 ) 0.04
Discontinued Operations
Basic 0.30 0.03
Diluted 0.30 0.03
Net Income
Basic 0.25 0.07
Diluted 0.25 0.07
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic 18,719 17,237
Diluted 18,719 17,692
PowerSecure International, Inc.
Condensed Consolidated Balance Sheets (unaudited)
($000's)
March 31, December 31,
ASSETS 2011 2010
CURRENT ASSETS:
Cash and cash equivalents 14,890 8,202
Trade receivables, net of allowance for doubtful accounts 32,672 29,290
Assets of discontinued operations held for sale 0 12,183
Inventories 29,863 25,011
Current deferred income taxes 1,731 1,731
Prepaid expenses and other current assets 928 933
Total Current Assets 80,084 77,350
PROPERTY, PLANT, AND EQUIPMENT:
Equipment 29,080 24,946
Furniture and fixtures 280 280
Land, building, and improvements 5,735 5,720
Total property, plant, and equipment at cost 35,095 30,946
Less accumulated depreciation and amortization 6,481 5,899
Property, plant, and equipment, net 28,614 25,047
OTHER ASSETS:
Goodwill 7,970 7,970
Deferred income taxes, net of current portion 1,244 1,244
Restricted annuity contract 2,324 2,306
Intangible rights and capitalized software, net of accum amort 1,959 1,942
Investment in unconsolidated affiliate 4,732 4,346
Other assets 299 324
Total other assets 18,528 18,132
TOTAL ASSETS 127,226 120,529
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable 9,392 8,438
Accrued and other liabilities 13,260 10,986
Liabilities of discontinued operations held for sale 0 1,411
Current income taxes payable 139 251
Current unrecognized tax benefit 954 954
Current portion of capital lease obligations 807 796
Total current liabilities 24,552 22,836
LONG-TERM LIABILITIES
Revolving Line of Credit 5,000 5,000
Capital lease obligations, net of current portion 3,441 3,647
Unrecognized tax benefit 749 749
Deferred Compensation 1,136 1,053
Total long-term liabilities 10,326 10,449
Commitments and contingencies 0 0
STOCKHOLDERS' EQUITY
Preferred stock - undesignated
0 0
Preferred stock - Series C 0 0
Common stock 188 187
Additional paid-in-capital 115,342 114,791
Accumulated deficit (24,753 ) (29,489 )
Total PowerSecure International, Inc. stockholders' equity 90,777 85,489
Noncontrolling Interest 1,571 1,755
Total stockholders' equity 92,348 87,244
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 127,226 120,529
PowerSecure International, Inc.
Condensed Consolidated Statement of Cash Flows (unaudited)
($000's)
Three Months Ended
March 31, March 31,
2011 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) 4,552 1,404
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
Income from discontinued operations (5,636 ) (519 )
Depreciation and amortization 806 584
Stock compensation expense 480 494
Distributions to noncontrolling interest shareholder 0 (598 )
Deferred income taxes 0 0
Equity in income of unconsolidated affiliate (1,011 ) (1,030 )
Distributions from unconsolidated affiliate 607 809
Changes in operating assets and liabilities, net of
effect of acquisitions:
Trade receivables, net (3,382 ) (1,222 )
Inventories (4,852 ) (4,375 )
Other current assets and liabilities (106 ) 357
Other noncurrent assets 25 35
Accounts payable 954 5,304
Restructuring charges 0 (248 )
Accrued and other liabilities 2,166 (3,453 )
Unrecognized tax benefits 0 0
Deferred compensation obligation 83 83
Restricted annuity contract (18 ) (22 )
Net cash provided by (used in) continuing operations (5,332 ) (2,397 )
Net cash provided by (used in) discontinued operations 0 592
Net cash provided by (used in) operating activities (5,332 ) (1,805 )
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment (4,180 ) (1,102 )
Additions to intangible rights and software development (192 ) (286 )
Acquisitions 0 0
Proceeds from sale of property, plant and equipment 0 5
Proceeds from sale of discontinued operations 16,515 0
Discontinued operations investing activities 0 (21 )
Net cash provided by (used in) investing activities 12,143 (1,404 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings (payments) on revolving line of credit 0 0
Proceeds from sale-leaseback transactions 0 0
Payments on capital lease obligations (195 ) (185 )
Proceeds from stock option and warrant exercises, net of shares tendered 72 (162 )
Net cash provided by (used in) financing activities (123 ) (347 )
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 6,688 (3,556 )
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 8,202 20,169
CASH AND CASH EQUIVALENTS AT END OF PERIOD 14,890 16,613
PowerSecure International, Inc.
Chris Hutter, Chief Financial Officer, 919-453-1760
Source: PowerSecure International, Inc.
Copyright Business Wire 2011
POWR is a good company I use to work for them.Good leadership.I see them back at $10.00 before years up!
POWR.. $4.17...PowerSecure Hosts Congressman Brad Miller, Jobs Growth Highlighted
PowerSecure International, Inc. (Nasdaq: POWR) reported Congressman Brad Miller visited its Wake Forest headquarters, highlighting the Company’s significant jobs growth which is being fueled by strong growth in its Utility Infrastructure business. So far in 2011, the Company has created 80 new jobs, a 20% increase in employees, primarily to support its high growth Utility Infrastructure business. This business was up 68% during the first half of 2011 versus the same period in 2010, and the Company continues to see strong growth, with revenues expected to be up over 70% in second half of 2011 versus the same period in 2010, and expected full year 2011 revenue of over $40 million.
Driving the Company’s Utility Infrastructure revenue growth, which includes providing transmission and distribution engineering, construction, and maintenance services to electric utilities, is an increase in the number of utilities utilizing PowerSecure’s services, as well as a broadening of services provided to the Company’s existing utility customers. In just the past thirty days, the Company has initiated new relationships and deployed additional crews for three separate divisions of two large investor-owned utilities. In addition, the Company’s Utility Infrastructure team was recently very active in helping utilities along the East Coast with power restoration in areas hardest hit by Hurricane Irene.
Sidney Hinton, PowerSecure’s CEO, said, “We are very pleased to be able to host Congressman Miller and introduce him to our Company. His passion for innovation and appreciation for practical energy solutions that drive strong, sustainable benefits in the marketplace made a terrific impression on our team. Congressman Miller has been a strong supporter of the State of North Carolina and the thirteenth Congressional District for five terms, and we were thrilled to have the opportunity to share our business with him.”
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers, as well as Energy Services to the oil and natural gas industry. PowerSecure’s Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company’s Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting product that saves grocery, drug, and convenience stores 70% off the cost to operate traditional fluorescent lighting in their refrigerated cases. The Company is a pioneer in developing Interactive Distributed Generation® systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power at peak power times, 2) provide utilities with dedicated electric power generation capacity to utilize for demand response purposes, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with transmission and distribution infrastructure construction and maintenance services, and engineering and regulatory consulting services. The Company provides Energy Services to the oil and natural gas industry through its Southern Flow and WaterSecure business units. Additional information is available at www.powersecure.com.
All forward-looking statements contained in this release are made within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the outlook for the businesses discussed in this press release and the Company’s future revenues, earnings, margins, and other financial and operating information and data; the Company’s outlook, prospects and expectations for revenues, net income, and E.P.S. results and growth generally, and related to the events described herein, including expectations for its Utility Infrastructure business and revenue; the anticipated results of the Company’s products, services, and technologies; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, those risks, uncertainties and other factors identified from time to time in the Company's most recent Annual Report on Form 10-K, as well as in subsequent filings with the Securities and Exchange Commission, including reports on Forms 10-Q and 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
POWR.. $8.61 PowerSecure’s Smart Grid Power System Programs for Major Retailers Expand
Company Announces $10 Million of New Business Awards
WAKE FOREST, N.C.--(BUSINESS WIRE)-- PowerSecure International, Inc. (Nasdaq: POWR) today announced that it has received $10 million of new awards for its Interactive Distributed Generation® (IDG®) smart grid power systems. The majority of this new business is a second award from a major U.S. retail chain to install IDG systems for an expanded number of stores, increasing a program which began in mid-2010. Additionally, the Company announced today that it has entered into new master agreements with two additional major U.S. retail chains to deploy IDG systems, the number and specific locations for which are in development. The Company’s IDG systems will deliver these retailers with a more efficient power source during peak power periods, and dependable standby power “24 x 7”.
The $10 million of new business announced today includes $9 million of recurring revenue contracts for the second award of IDG systems for the first-mentioned retailer. These systems are expected to be installed during the first half of 2011, and the revenues from this contract are expected to be recognized over a five year period. The Company is not providing an estimate at this time on the revenue expected from the second and third-mentioned retailers in this release, as these programs are still in development. The awards announced today also include a $1 million award to deploy an IDG system for a large manufacturing operation, and this award is expected to be recognized as project-based revenue during the first half of 2011.
Sidney Hinton, CEO of PowerSecure, said, "We are very excited about these new programs with retailers. We have been blessed to receive an earlier-than-expected expansion of the program we started this summer with one major U.S. retailer, and also establish master agreements with two additional retailers. Our IDG systems have a track record of delivering the retailers we already serve a very strong value proposition, and we have hundreds of retail stores and distribution centers in our smart grid programs today. We are especially pleased that we are able to serve these new retailers under our recurring revenue model. We are eager to demonstrate our value with these initial installations, with the goal of earning the opportunity to support even larger numbers of store and distribution center locations with our IDG systems in the future.”
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers, as well as Energy Services to the oil and natural gas industry. PowerSecure’s Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company’s Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting product that saves grocery, drug, and convenience stores 70% off the cost to operate traditional fluorescent lighting in their refrigerated cases. The Company is a pioneer in developing Interactive Distributed Generation® systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power at peak power times, 2) provide utilities with dedicated electric power generation capacity to utilize for demand response purposes, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with transmission and distribution infrastructure construction and maintenance services, and engineering and regulatory consulting services. The Company provides Energy Services to the oil and natural gas industry through its Southern Flow and WaterSecure business units. Additional information is available at www.powersecure.com.
All forward-looking statements contained in this release are made within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the outlook for the businesses discussed in this press release and the Company’s future revenues, earnings, margins, and other financial and operating information and data; the Company’s outlook, prospects and expectations for revenues, net income, and E.P.S. results and growth generally, and related to the events described herein; the anticipated results of the Company’s products, services, and technologies; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, those risks, uncertainties and other factors identified from time to time in the Company's most recent Annual Report on Form 10-K, as well as in subsequent filings with the Securities and Exchange Commission, including reports on Forms 10-Q and 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
PowerSecure International, Inc.
Chris Hutter, Chief Financial Officer, 919-453-1760
Source: PowerSecure International, Inc.
Copyright Business Wire 2010
POWR.. Credit facility Extention..
PowerSecure Extends Credit Facility to 2013
Powersecure International, (MM) (NASDAQ:POWR)
Intraday Stock Chart
Today : Tuesday 16 November 2010
PowerSecure International, Inc. (Nasdaq: POWR) today announced it has completed a multi-year extension of its $50 million revolving credit facility, revising the facility’s expiration date from November 12, 2011 to November 12, 2013. The extension continues the Company’s access to significant capital resources to finance strategic growth initiatives across its business platforms. The facility is backed by a bank syndicate led by Citibank (as Administrative Agent and Co-Syndication Agent), and includes Suntrust Bank (as Co-Syndication Agent), and BB&T (as Documentation Agent).
The facility was extended on similar terms to its previous structure, including $50 million of total revolving debt capacity, and the ability to further extend the facility beyond its November 12, 2013 revolver expiration for amounts related to capital invested in PowerSecure-owned Interactive Distributed Generation systems, by converting these amounts into a term loan due two-years after the revolver expires (in effect, providing financing through November 12, 2015 for Company-owned recurring revenue projects). The facility extension also includes minor changes to update financial covenants, interest rates, and investment baskets, including: 1) a reduction in the fixed charge covenant to provide the Company with more favorable allowances, 2) an increase in the tangible net worth covenant to reflect the Company’s higher level of tangible net worth since the facility was initially established, 3) a modest twenty-five basis point increase in the Company’s interest rate reflecting current conditions in the banking markets, and 4) a refresh of the Company’s $20 million acquisition allowance without lender consent.
As is customary with facilities of this type, the Company must maintain certain levels of profitability and EBITDA ratios, asset levels, and tangible net worth levels in order to be in compliance with the terms of the underlying credit agreement and to fully utilize the facility. The terms and a copy of the facility extension, which was accomplished through an amendment of the Company’s previous credit facility, are contained in a current report on Form 8-K filed with the Securities and Exchange Commission.
Sidney Hinton, CEO of PowerSecure, said, “We are very pleased to announce this extension of our credit facility, which reflects our strong financial position and provides us with the on-going ability to invest in growth opportunities across our business areas. We are extremely proud to be backed by such a strong bank group, and we are grateful to Citibank, Suntrust, and BB&T for their confidence in us to extend our facility through 2013.”
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers, as well as Energy Services to the oil and natural gas industry. PowerSecure’s Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company’s Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting product that saves grocery, drug, and convenience stores 70% off the cost to operate traditional fluorescent lighting in their refrigerated cases. The Company is a pioneer in developing Interactive Distributed Generation® systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power at peak power times, 2) provide utilities with dedicated electric power generation capacity to utilize for demand response purposes, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with transmission and distribution infrastructure construction and maintenance services, and engineering and regulatory consulting services. The Company provides Energy Services to the oil and natural gas industry through its Southern Flow and WaterSecure business units. Additional information is available at www.powersecure.com.
POWR.. $8.749.. Earnings..
PowerSecure Reports Third Quarter Results
Revenue Increases 13% to $31 Million, and Backlog Reaches All-Time High $138
Million
WAKE FOREST, N.C., Nov 04, 2010 (BUSINESS WIRE) -- PowerSecure International,
Inc. (POWR) today reported its third quarter fiscal 2010 revenues were $31.4
million, and diluted E.P.S. was $0.03. On a year-to-date basis, the Company's
revenues were $90.4 million, and diluted E.P.S. was $0.16. Additionally, the
Company reported that its revenue backlog stands at an all time high $138 million
as a result of new business awards earned during the last three months.
The Company's third quarter 2010 revenues of $31.4 million increased 13.3%
compared to the third quarter of 2009. This growth was driven by year-over-year
revenue growth in the Company's Interactive Distributed Generation business of
29.4%, Utility Infrastructure business of 37.9%, and Energy Services business of
22.9%, partially offset by lower revenues in its Energy Efficiency business of
23.9%. The Company's revenue growth combined with continued strong gross margin
results, which were 34.8% of revenue, to deliver a 6.6% increase in gross profit,
to $10.9 million. These gains were offset by a year-over-year increase in
operating expenses of $3.1 million, driven by investments the Company is making
in business expansion and new product development in each of its Interactive
Distributed Generation, Utility Infrastructure, and Energy Efficiency growth
areas. As a result, diluted E.P.S. for the third quarter of 2010 was $0.03 per
share compared to $0.09 per share in the third quarter of 2009.
Sidney Hinton, CEO of PowerSecure, said, "We are very pleased with our third
quarter results. Our top line exceeded our expectations, our gross margins remain
very strong, and the investments we are making in each of our businesses position
us for even higher levels of growth and profitability in the future.
Additionally, the new business we were awarded over the last few months provides
us with an all time high backlog of $138 million, which is a full $48 million
greater than our backlog at this time last year. Our backlog includes
significantly more medium and long-term revenue bookings, providing a great
foundation for growth -- including very good progress in building our 2011
revenue base."
Mr. Hinton continued, "The investments we are making in new product development
and technology provide us with a strong set of growth catalysts in each of our
business areas, and the capability to generate even higher levels of
profitability in the future. As we said last quarter, we remain highly attentive
to any changes in the state of the economic recovery in the near-term, while at
the same time we are very positive about the targeted investments we are making
to enhance our capabilities and product offerings to deliver our businesses' full
growth potential."
For the third quarter of 2010, the Company's Energy and Smart Grid Solutions
segment revenues were $26.3 million, increasing $2.7 million, or 11.6%, compared
to the third quarter of 2009. This segment includes the strategic business areas
of Energy Efficiency, Interactive Distributed Generation, and Utility
Infrastructure. These three business areas realized the following revenue
variances in the third quarter of 2010 compared to the third quarter of 2009:
1) Interactive Distributed Generation: Third quarter 2010 Interactive Distributed
Generation (IDG) revenues increased 29% compared to the third quarter of 2009.
This increase was driven by a 19% increase in the Company's project-based
revenues from sales of IDG systems, a 6% increase in recurring revenues from IDG
systems, and a 48% increase in NexGear switchgear revenues. Total recurring
revenues from IDG systems for the third quarter were $1.8 million, slightly
higher on a sequential basis than the second quarter, establishing a new record
for any quarter in the Company's history.
2) Energy Efficiency: Third quarter 2010 Energy Efficiency revenues were 24%
lower than the third quarter of 2009. This was driven by $3.1 million of lower
revenues from the Company's EfficientLights LED lighting products, which totaled
$5.1 million, due to a surge in EfficientLights installations during last year's
third quarter. On a sequential basis, EfficientLights revenues for the third
quarter 2010 were slightly higher than the second quarter of 2010. Additionally,
the Company's recently acquired LED lighting company, IES Lighting, contributed
$1.0 million of revenue to third quarter 2010 results.
3) Utility Infrastructure: Third quarter 2010 Utility Infrastructure revenues
increased 38% compared to the third quarter of 2009. As expected, this was driven
by substantial increases in the Company's Utility Services revenues, including
transmission and distribution system construction and maintenance services.
For the third quarter of 2010, the Company's Energy Services segment realized a
22.9% year-over-year increase in revenues from its Southern Flow business, due to
the improved conditions in the natural gas markets and new growth initiatives.
The Company's WaterSecure business contributed third quarter income of $0.7
million, up 37% on a year-over-year basis. The Company's WaterSecure results were
also positively impacted by improved conditions in the natural gas markets, as
well as year-over-year increases in oil prices.
Third quarter 2010 operating expenses were $11.1 million compared to $8.1 million
in the third quarter of 2009. The year-over-year increase was primarily due to
investments to support new and future business growth in the Company's
Interactive Distributed Generation, Energy Efficiency, and Utility Infrastructure
businesses, including new product development, engineering, personnel, and
equipment. Additionally, the Company realized increases in selling expense due to
higher revenue, and increases in depreciation from capital expenditures for IDG
systems owned under the Company's growing recurring revenue business. On a
sequential basis, the Company's third quarter 2010 operating expenses were
essentially even with the second quarter 2010.
As of the date of this press release, the Company's revenue backlog expected to
be recognized after September 30, 2010 is $138 million. This includes revenue
included in the new business announcement made on October 20, 2010, and compares
to $127 million of revenue backlog reported with the Company's second quarter
earnings release (issued on August 5, 2010). The Company's revenue backlog and
the estimated timing of revenue recognition is outlined below, including
"project-based revenues" expected to be recognized as projects are completed, and
"recurring revenues" expected to be recognized over the life of the contracts:
Revenue Backlog to be recognized after September 30, 2010
AnticipatedEstimated Primary
DescriptionRevenueRecognition Period
----------------------------------------------------------------------------------------
Project-based Revenue -- Near term$42 Million4Q10 through 2Q11
Project-based Revenue -- Long term$35 Million3Q11 through 2Q13
Recurring Revenue$61 Million4Q10 through 2019
-------------
Revenue Backlog to be recognized after September 30, 2010$138 Million
Note: Anticipated revenue and estimated primary recognition
periods are subject to risks and uncertanities
as
indicated in the Company's safe harbor statement, below. Consistent
with past practice, these figures
are not intended to
constitute the Company's total revenue over the indicated time
periods, as the Company
has additional, regular on-going
revenues. Examples of additional, regular recurring revenues include
revenues
from the Company's Southern Flow business, engineering fees, and
service revenue, among others.
Numbers may not add due
to rounding.
The Company will host a conference call commencing today at 5:30 p.m. eastern
time to discuss its third quarter 2010 results, business operations, strategic
initiatives and prospects for the future. The conference call will be webcast
live and can be accessed from the Investor Relations section of the Company's
website at http://www.powersecure.com. Participants can also access the call by
dialing 888-713-4209 (or 617-213-4863 if dialing internationally), and providing
pass code 72264542. If you are unable to participate during the live webcast, a
replay of the conference call will be available beginning today at 8:30 p.m.
eastern time through midnight on December 2, 2010. To listen to the replay, dial
toll-free 888-286-8010 (or 617-801-6888 if dialing internationally), and enter
pass code 132837375. In addition, the webcast will be archived on the Company's
website at http://www.powersecure.com.
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid
Solutions to electric utilities, and their commercial, institutional, and
industrial customers, as well as Energy Services to the oil and natural gas
industry. PowerSecure's Energy and Smart Grid Solutions businesses provide
products and services in the areas of Energy Efficiency, Interactive Distributed
Generation, and Utility Infrastructure. The Company's Energy Efficiency business
provides customers with energy efficient lighting technologies that deliver
improved quality of light, including its proprietary EfficientLights LED lighting
product that saves grocery, drug, and convenience stores 70% off the cost to
operate traditional fluorescent lighting in their refrigerated cases. The Company
is a pioneer in developing Interactive Distributed Generation(R) systems with
sophisticated, proactive smart grid capabilities, including the ability to 1)
forecast electricity demand and electronically deploy the systems to deliver more
efficient, and environmentally friendly power at peak power times, 2) provide
utilities with dedicated electric power generation capacity to utilize for demand
response purposes, and 3) provide customers with the most dependable standby
power in the industry. PowerSecure also provides utilities with transmission and
distribution infrastructure construction and maintenance services, and
engineering and regulatory consulting services. The Company provides Energy
Services to the oil and natural gas industry through its Southern Flow and
WaterSecure business units. Additional information is available at
http://www.powersecure.com.
This press release contains forward-looking statements within the meaning of and
made pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are all statements other than
statements of historical facts, including but not limited to statements
concerning the outlook for the Company's future revenues, earnings, margins, cash
resources and cash flow and other financial and operating information and data;
the Company's future business operations, strategies and prospects; and all other
statements concerning the plans, intentions, expectations, projections, hopes,
beliefs, objectives, goals and strategies of management, including statements
about other future financial and non-financial items, performance or events and
about present and future products, services, technologies and businesses; and
statements of assumptions underlying the foregoing. Forward-looking statements
are not guarantees of future performance or events and are subject to a number of
known and unknown risks, uncertainties and other factors that could cause actual
results to differ materially from those expressed, projected or implied by such
forward-looking statements. Important risks, uncertainties and other factors
include, but are not limited to, the recent downturn, disruption and volatility
in the economy, financial markets and business markets and the effects thereof on
the Company's markets and customers, the demand for its products and services,
and the Company's access to capital; the size, timing and terms of sales and
orders, including the Company's revenue backlog discussed in this press release,
and the risk of customers delaying, deferring or canceling purchase orders or
making smaller purchases than expected; the timely and successful development,
production and market acceptance of new and enhanced products, services and
technologies of the Company; the ability of the Company to obtain adequate
supplies of key components and materials of sufficient reliability and quality
for its products and technologies on a timely and cost-effective basis and the
effects of related warranty claims and disputes; the ability of the Company to
successfully expand its core distributed generation products and services, to
successfully develop and achieve market acceptance of its new energy-related
businesses, to successfully expand its recurring revenue projects, to manage its
growth and to address the effects of any future changes in utility tariff
structures and environmental requirements on its business solutions; the effects
of competition; changes in customer and industry demand and preferences; the
ability of the Company to continue the growth and diversification of its customer
base; the ability of the Company to attract, retain, and motivate its executives
and key personnel; changes in the energy industry in general and the electricity,
oil, and natural gas markets in particular, including price levels; the effects
of competition; the ability of the Company to secure and maintain key contracts
and relationships; the effects of pending and future litigation, claims and
disputes; and other risks, uncertainties and other factors identified from time
to time in its reports filed with or furnished to the Securities and Exchange
Commission, including the Company's most recent Annual Report on Form 10-K, as
well as subsequently filed reports on Form 10-Q and Form 8-K. Accordingly, there
can be no assurance that the results expressed, projected or implied by any
forward-looking statements will be achieved, and readers are cautioned not to
place undue reliance on any forward-looking statements. The forward-looking
statements in this press release speak only as of the date hereof and are based
on the current plans, goals, objectives, strategies, intentions, expectations and
assumptions of, and the information currently available to, management. The
Company assumes no duty or obligation to update or revise any forward-looking
statements for any reason, whether as the result of changes in expectations, new
information, future events, conditions or circumstances or otherwise.
PowerSecure International, Inc.
Consolidated Statements of Operations (unaudited)
($000's except per share data)
Three Months EndedNine Months Ended
----------------------------- ----------------------
September 30,September 30,September 30,September 30,
2010200920102009
------------------------------------------------
Revenue31,40627,72190,39472,576
Cost of sales20,48017,46958,04048,195
--------------------------
Gross Profit10,92610,25232,35424,381
--------------------------
Operating expenses
General and administrative8,7686,39925,10118,511
Selling, marketing, and service1,5039973,9432,797
Depreciation and amortization8326572,2321,762
--------------------------
Total operating expenses11,1038,05331,27623,070
--------------------------
Operating income (loss)(177)2,1991,0781,311
Other income (expense)
Equity income5984292,4351,307
Management fees136106432309
Interest income and other income303686127
Interest expense(177)(144)(457)(463)
------- ------------ ----------- ------------
Income (loss) before income taxes4102,6263,5742,591
Income tax benefit (provision)(52)(423)(528)(473)
------- ------------ ----------- ------------
Net income (loss)3582,2033,0462,118
Less: Net income attributable to noncontrolling interest132(549)(15)(914)
-------------- ----------- ------------
Net income (loss) attributable to PowerSecure International, Inc.4901,6543,0311,204
==========================
EARNINGS PER SHARE AMOUNTS ("E.P.S") ATTRIBUTABLE TO
POWERSECURE INTERNATIONAL, INC. SHAREHOLDERS:
Basic0.030.100.170.07
==========================
Diluted0.030.090.160.07
==========================
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic18,64017,21817,94217,158
==========================
Diluted19,02817,46718,44717,174
==========================
PowerSecure International, Inc.
Condensed Consolidated Balance Sheets (unaudited)
($000's)
September 30, December 31,
ASSETS20102009
--------------
CURRENT ASSETS:
Cash and cash equivalents14,66820,169
Trade receivables, net of allowance for doubtful accounts34,60728,332
Inventories24,16321,632
Deferred income taxes2,7132,713
Prepaid expenses and other current assets9031,300
--------------
Total Current Assets77,05474,146
--------------
PROPERTY, PLANT, AND EQUIPMENT:
Equipment26,22222,252
Furniture and fixtures683671
Land, building, and improvements4,9044,802
--------------
Total property, plant, and equipment at cost31,80927,725
Less accumulated depreciation and amortization7,0195,413
--------------
Property, plant, and equipment, net24,79022,312
--------------
OTHER ASSETS:
Goodwill13,2017,256
Restricted annuity contract2,2872,220
Intangible rights and capitalized software, net of accum amort1,9981,320
Investment in unconsolidated affiliate4,1293,974
Other assets166249
--------------
Total other assets21,78115,019
TOTAL ASSETS123,625111,477
==============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable5,2624,116
Accrued and other liabilities17,47620,379
Restructuring charges payable0325
Current income taxes payable50
Current unrecognized tax benefit954327
Current portion of capital lease obligations787756
--------------
24,48425,903
Total current liabilities
--------------
LONG-TERM LIABILITIES
Revolving Line of Credit7,5000
Capital lease obligations, net of current portion3,8514,445
Unrecognized tax benefit6921,169
Deferred Compensation970721
--------------
Total long-term liabilites13,0136,335
--------------
STOCKHOLDERS' EQUITY
00
Preferred stock - undesignated
Preferred stock - Series C00
Common stock187172
Additional paid-in-capital113,939110,911
Accumulated deficit(29,920)(32,951)
------- -------- ----
Total PowerSecure International, Inc. stockholders' equity84,20678,132
Noncontrolling Interest1,9221,107
--------------
Total stockholders' equity86,12879,239
--------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY123,625111,477
==============
PowerSecure International, Inc.
Condensed Consolidated Statement of Cash Flows (unaudited)
($000's)
Nine Months Ended
----------------------------------------
September 30,September 30,
20102009
-------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)3,0462,118
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
Depreciation and amortization2,2321,762
Stock compensation expense1,2701,202
Distributions to noncontrolling interest shareholder(877)0
(Gain) loss on disposal of miscellaneous assets3732
Equity in income of unconsolidated affiliate(2,435)(1,307)
Distributions from unconsolidated affiliate2,2251,618
Changes in operating assets and liabilities, net of
effect of aquisitions:
Trade receivables, net(5,927)(4,842)
Inventories(2,249)(5,234)
Other current assets and liabilities402631
Other noncurrent assets9753
Accounts payable169(539)
Restructuring charges(325)(1,096)
Accrued and other liabilities(2,938)(3,526)
Unrecognized tax benefits150188
Deferred compensation obligation249249
Restricted annuity contract(67)(65)
---------------------- ---------- ---
Net cash provided by (used in) operating activities(4,941)(8,756)
---------------------- ---------- ---
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, plant and equipment(3,850)(2,202)
Additions to intangible rights and software development(518)(442)
Acquisitions(4,413)(800)
Proceeds from sale of property, plant and equipment2112
-------------------------------
Net cash provided by (used in) investing activities(8,760)(3,432)
---------------------- ---------- ---
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings (payments) on revolving line of credit7,5000
Proceeds from sale-leaseback transactions00
Payments on capital lease obligations(563)(534)
Proceeds from stock option and warrant exercises, net of shares1,263298
tendered
-------------------------------
Net cash provided by (used in) financing activities8,200(236)
------------------------------- ---
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS(5,501)(12,424)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR20,16924,316
-------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD14,66811,892
===============================
SOURCE: PowerSecure International, Inc.
PowerSecure International, Inc.
Chris Hutter, Chief Financial Officer, 919-453-1760
Copyright Business Wire 2010
POWR.. $9.40
PowerSecure Announces Schedule for Its Third Quarter 2010 Earnings Release and Conference Call
Business Wire - Oct 21 at 16:30
Company Symbols: NASDAQ-NMS:POWR
WAKE FOREST, N.C.--(BUSINESS WIRE)-- PowerSecure International, Inc. (Nasdaq: POWR) has scheduled its third quarter 2010 earnings release and conference call for Thursday, November 4, 2010, after the market close. The Company will issue its third quarter 2010 earnings release at approximately 4:15 p.m. eastern time, and will hold its earnings conference call from 5:30-6:30 p.m. eastern time.
The conference call will be webcast live and can be accessed from the Investor Relations section of the Company's website at www.powersecure.com. Participants can access the call by dialing 888-713-4209 (or 617-213-4863 if dialing internationally), and providing pass code 72264542.
PowerSecure is offering call participants a pre-registration option that expedites access to the call and minimizes hold times. Pre-registrants will be issued a pin number to be used when dialing into the live call which will provide quick access to the conference call by bypassing the operator. Pre-registration is not mandatory. Those who would like to take advantage of pre-registration can do so by accessing the following website:
https://cossprereg.btci.com/prereg/key.process?key=P4JX7R4JX
If you are unable to participate during the live webcast, a replay of the conference call will be available beginning at 8:30 p.m. eastern time on November 4, 2010 through midnight eastern time on December 2, 2010. To listen to the replay, dial 888-286-8010 (or 617-801-6888 if dialing internationally), and enter pass code 13283735. In addition, the webcast will be archived on the Company's website at www.powersecure.com.
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers, as well as Energy Services to the oil and natural gas industry. PowerSecure's Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company's Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting products that save grocery, drug, and convenience stores 70% off the cost to operate traditional fluorescent lighting in their refrigerated cases. The Company is a pioneer in developing Interactive Distributed Generation(R) systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast peak electricity demand and electronically deploy more efficient, and environmentally friendly power, 2) provide utilities with dedicated electric power generation assets for their demand response needs, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with transmission and distribution infrastructure construction and maintenance, as well as consulting and engineering services. The Company provides Energy Services to the oil and natural gas industry through its Southern Flow and WaterSecure business units. Additional information is available at www.powersecure.com.
Source: PowerSecure International, Inc.
POWR.. $9.40 DD PowerSecure Announces $18 Million of New Awards for Its Smart Grid IDG(R) Power Systems and Utility Infrastructure Projects
Business Wire - Oct 20 at 07:30
Company Symbols: NASDAQ-NMS:POWR
WAKE FOREST, N.C.--(BUSINESS WIRE)-- PowerSecure International, Inc. (Nasdaq: POWR) today announced it has received $18 million of new awards for its Interactive Distributed Generation(R) smart grid power systems (IDG(R) systems) and utility infrastructure projects. These awards include several large projects the Company will complete for institutional and industrial customers on behalf of top U.S. investor-owned electric utilities. The investments are being made to provide efficient electrical capacity for peak power periods, increase backup power resources, and upgrade electrical systems.
$14 million of new business is for IDG Systems, and $4 million is for utility infrastructure projects. Of the $14 million of IDG System revenue, $13 million is for project-based business and $1 million is for recurring revenue contracts. The project-based IDG Systems and the Utility Infrastructure projects are expected to be completed, and revenue recognized, primarily during the first half of 2011. The IDG Systems for the $1 million of recurring revenue contracts are also expected to be installed during the first half of 2011, with associated revenues recognized over a five year period.
Sidney Hinton, CEO of PowerSecure, said, "We are very pleased to announce these new awards for IDG Systems and utility infrastructure projects. We are completing these projects in partnership with major utilities, and they are driven by the need for practical energy efficiency projects which generate strong financial returns for utilities' customers and their grid systems. These new projects provide us with a nice head start on new business awards for 2011 in both our distributed generation and utility infrastructure businesses."
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers, as well as Energy Services to the oil and natural gas industry. PowerSecure's Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company's Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting product that saves grocery, drug, and convenience stores 70% off the cost to operate traditional fluorescent lighting in their refrigerated cases. The Company is a pioneer in developing Interactive Distributed Generation(R) systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power at peak power times, 2) provide utilities with dedicated electric power generation capacity to utilize for demand response purposes, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with transmission and distribution infrastructure construction and maintenance services, and engineering and regulatory consulting services. The Company provides Energy Services to the oil and natural gas industry through its Southern Flow and WaterSecure business units. Additional information is available at www.powersecure.com.
All forward-looking statements contained in this release are made within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the amount and timing of the revenues associated with the new business discussed in this press release; the Company's outlook, prospects and expectations for revenues, net income, and E.P.S. results and growth generally; the anticipated results of the Company's products, services, and technologies; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, those risks, uncertainties and other factors identified from time to time in the Company's most recent Annual Report on Form 10-K, as well as in subsequent filings with the Securities and Exchange Commission, including reports on Forms 10-Q and 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
Source: PowerSecure International, Inc.
POWR.. $9.40 DD
PowerSecure initiated with a Buy at Merriman
Fly On The Wall - Oct 05 at 08:10
Company Symbols: NASDAQ-NMS:POWR
Merrmian thinks PowerSecure shares can trade to $12-$15 over the next 12-18 months.
POWR.. $9.40 DD PowerSecure Announces $15 Million of New Awards for its Smart Grid IDG(R) Power Systems
Business Wire - Sep 09 at 08:30
Company Symbols: NASDAQ-NMS:POWR
WAKE FOREST, N.C.--(BUSINESS WIRE)-- PowerSecure International, Inc. (Nasdaq: POWR) today announced it has received $15 million of new awards for its Interactive Distributed Generation(R) smart grid power systems (IDG(R) systems). This new business includes a recurring revenue contract with a multi-billion dollar industrial manufacturer to deploy IDG systems to support a production site. Additionally, the awards announced today include IDG system installations for a data center, a hospital, and a major food manufacturer.
The $15 million of new Interactive Distributed Generation business includes $4 million of project-based business and an $11 million recurring revenue contract. The project-based business is expected to be completed, and revenue recognized, primarily during the fourth quarter of 2010 and the first quarter of 2011. The distributed generation system for the recurring revenue contract is expected to be installed during the second quarter of 2011, with associated revenues recognized over a fifteen year period.
Sidney Hinton, CEO of PowerSecure, said, "We are very pleased to announce these new business awards, including a large recurring revenue contract with a major industrial manufacturer. We continue to see our IDG systems being adopted by an increasingly diversified customer base. We are excited about the opportunity to deploy our systems on behalf of our utility partners to support such a terrific group of customers, and to deliver them a strong return on their investment."
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers, as well as Energy Services to the oil and natural gas industry. PowerSecure's Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company's Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting product that saves grocery, drug, and convenience stores 70% off the cost to operate traditional fluorescent lighting in their refrigerated cases. The Company is a pioneer in developing Interactive Distributed Generation(R) systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power at peak power times, 2) provide utilities with dedicated electric power generation capacity to utilize for demand response purposes, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with transmission and distribution infrastructure construction and maintenance services, and engineering and regulatory consulting services. The Company provides Energy Services to the oil and natural gas industry through its Southern Flow and WaterSecure business units. Additional information is available at www.powersecure.com.
All forward-looking statements contained in this release are made within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the amount and timing of the revenues associated with the new business discussed in this press release; the Company's outlook, prospects and expectations for revenues, net income, and E.P.S. results and growth generally; the anticipated results of the Company's products, services, and technologies; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, those risks, uncertainties and other factors identified from time to time in the Company's most recent Annual Report on Form 10-K, as well as in subsequent filings with the Securities and Exchange Commission, including reports on Forms 10-Q and 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
Source: PowerSecure International, Inc.
POWR.. $9.40 DD Deploy Backup Power
PowerSecure Stands Ready to Deploy Backup Power for Customers and Utilities as Hurricane Earl Approaches
Dow Jones & Company, Inc. - Sep 02 at 16:55
Company Symbols: NASDAQ-NMS:POWR
WAKE FOREST, N.C.--(BUSINESS WIRE)--September 02, 2010--
PowerSecure International, Inc. (Nasdaq: POWR) today reported its Smart Grid Monitoring team, and fleet of Interactive Distributed Generation(R) (IDG(R)) standby power systems, are fully prepared to provide backup power for customers and utilities as Hurricane Earl approaches the East Coast.
PowerSecure's IDG(R) Smart Grid Monitoring team has been in "storm mode" throughout the week, and its fleet of standby power systems are standing ready to ensure that customers received immediate backup power in the event of an outage, and work with utilities to assist in the identification of outage locations. PowerSecure has approximately 1,000 IDG(R) power systems deployed at customer locations to protect against operational interruptions, spoilage, and maximize customers' ability to remain open throughout the storm. Additionally, PowerSecure's Utility Services team is also prepared to assist East Coast utilities with line crews and utility trucks to support their efforts to restore any power losses as quickly as possible.
Sidney Hinton, CEO of PowerSecure, said, "This time of year our team keeps a close watch on tropical conditions, and has been making preparations all week to ensure our utility partners and customers are protected during any power outages which may occur. Our team monitors the IDG systems "24 by 7" throughout the storm, and maintains communications with our utility partners whenever an outage occurs. Our Utility Services crews are also standing by to assist utilities with any power restoration needs."
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers, as well as Energy Services to the oil and natural gas industry. PowerSecure's Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company's Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting product that saves grocery, drug, and convenience stores 70% off the cost to operate traditional fluorescent lighting in their refrigerated cases. The Company is a pioneer in developing Interactive Distributed Generation(R) systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power at peak power times, 2) provide utilities with dedicated electric power generation capacity to utilize for demand response purposes, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with transmission and distribution infrastructure construction and maintenance services, and engineering and regulatory consulting services. The Company provides Energy Services to the oil and natural gas industry through its Southern Flow and WaterSecure business units. Additional information is available at www.powersecure.com.
All forward-looking statements contained in this release are made within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the outlook for the businesses discussed in this press release and the Company's future revenues, earnings, margins, and other financial and operating information and data; the Company's outlook, prospects and expectations for revenues, net income, and E.P.S. results and growth generally, and related to the events described herein; the anticipated results of the Company's products, services, and technologies; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, those risks, uncertainties and other factors identified from time to time in the Company's most recent Annual Report on Form 10-K, as well as in subsequent filings with the Securities and Exchange Commission, including reports on Forms 10-Q and 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward- looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
CONTACT: PowerSecure International, Inc.
Chris Hutter, 919-453-1760
Chief
Financial Officer
SOURCE: PowerSecure International, Inc. Copyright Business Wire 2010
POWR.. $9.40 DD..
PowerSecure Intl Started At Buy By Dougherty & Co >POWR
Dow Jones & Company, Inc. - Aug 30 at 10:32
Company Symbols: NASDAQ-NMS:POWR
Dougherty & Company initiates POWR with a Buy and price target of $15 saying the co is a very utility centric company that is focused on bringing clean energy solutions to its customers. At the heart of its strategy, POWR develops relationships with utilities, which in turn bring POWR's solutions to commercial and industrial customers. Firm says POWR is unique in that it brings both demand response solutions for "peak shaving" and backup power, as well as LED lighting solutions for energy efficiency. Its customer base is commercial and industrial entities and utilities. They say cross selling opportunities between its interactive distributed generation (IDG) solutions and its energy efficiency (EE) lighting solutions offer significant upside.
POWR.. $9.40 DD POWR Disappoints..
PowerSecure Slips On Concerns About Expenses Despite Solid 2Q
Dow Jones & Company, Inc. - Aug 06 at 13:27
Company Symbols: NASDAQ-NMS:POWR
By Emily Glazer, Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Shares of PowerSecure International Inc. (POWR) slid Friday on concerns about the energy management company's expenses, overshadowing its better-than-expected second-quarter results.
The company, which provides energy and smart-grid products, outlined plans to boost offerings in its efficient lights and utility infrastructure segments, among others, which are expected to lead to higher expenses.
In recent trading, shares slid 13% to $9.58 on more than two times the average daily volume. Despite those losses, the stock is up about a third so far this year.
Maxim Group said it sees "the significant increase in operational expenses" as a short-term hurdle for market share gains as the company expands its business. And Roth Capital Partners, which cut its rating on the stock to hold from buy, said the growth initiatives will be dilutive in the near term, adding the limited visibility into the plans presents more risk than reward.
For the second quarter, the company reported earnings of $1.32 million, or 7 cents a share, up from $686,000, or 4 cents a share, a year earlier.
Revenue climbed 37% to $34.3 million.
Analysts polled by Thomson Reuters were projecting earnings of 5 cents a share and revenue of $30 million.
Gross margin edged up 1.7 percentage points to 34.5%, and operating expenses soared 46% to $11.1 million.
-By Emily Glazer, Dow Jones Newswires; 212-416-2913; emily.glazer@dowjones.com
POWR.. $9.40 Revenue Increases 37% with Growth Across All Business Areas, E.P.S. Increases 75%
PowerSecure Reports Second Quarter Results
Business Wire - Aug 05 at 16:15
Company Symbols: NASDAQ-NMS:POWR
Revenue Increases 37% with Growth Across All Business Areas, E.P.S. Increases 75%
WAKE FOREST, N.C.--(BUSINESS WIRE)-- PowerSecure International, Inc. (Nasdaq: POWR) today reported strong revenue and profit results for its second quarter of 2010. Second quarter revenues were $34.3 million, increasing 36.5% compared to $25.1 million in the second quarter of 2009, and diluted earnings per share ("E.P.S.") were $0.07, increasing 75% compared to $0.04 in the second quarter of 2009.
These revenue and profit results were driven by the combined substantial year-over-year revenue growth in the Company's Interactive Distributed Generation business of 55%, Utility Infrastructure business of 40%, and Energy Efficiency business of 21%. Additionally, the Company's second quarter gross margin as a percentage of revenue was 34.5%, 1.7 percentage points higher than the second quarter of 2009, due a favorable mix of projects completed in the second quarter of 2010 compared to a year ago. Operating expenses for the second quarter of 2010 were higher than the prior year's second quarter by $3.5 million, primarily due to investments the Company is making in business expansion and new product development in each of its Interactive Distributed Generation, Utility Infrastructure, and Energy Efficiency business areas.
Sidney Hinton, CEO of PowerSecure, said, "We are very pleased with our second quarter results. Our top line was strong, reflecting 'across the board' growth in our businesses. Additionally, our year-over-year gross margin gains reflect the strong value our products and services deliver to our customers, as well as the efforts of the PowerSecure team to work smart - in our service delivery process and our engineering and manufacturing approach. We are bullish on the opportunities we see to serve customers in each of our business areas, and in the first half of 2010 we made investments to put us in position to realize these opportunities. These investments include technology, people, equipment, and new product development to drive and enhance both our near and long-term growth."
Mr. Hinton continued, "The new business we were awarded in the second quarter enabled us to grow our backlog to $127 million. This expanded backlog enables us to continue to plan and invest over longer-term horizons. Our near term backlog decreased due to the mix of new revenue awards being longer-term and more recurring in nature, and because we continue to exceed our own expectations in our project execution and revenue recognition. We will remain attentive to any patterns that develop in our business given the near-term uncertainty in the recovery of the economy. That said, we continue to be very excited about the strategic positions of each of our businesses and their growth opportunities and promise."
For the second quarter of 2010, the Company's Energy and Smart Grid Solutions segment revenues were $29.7 million, increasing $9.1 million, or 43.8%, compared to the second quarter of 2009. This segment includes the strategic business areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. These three business areas realized the following revenue variances in the second quarter of 2010 compared to the second quarter of 2009:
1) Interactive Distributed Generation: Second quarter 2010 Interactive Distributed Generation (IDG) revenues increased 55% compared to the second quarter of 2009. This increase was driven by a 64% increase in the Company's project-based revenues from sales of IDG systems, a 40% increase in recurring revenues from IDG systems, and a 44% increase in NexGear switchgear revenues. Total recurring revenues from IDG systems for the second quarter were $1.8 million, an all time high for any quarter in the Company's history.
2) Energy Efficiency: Second quarter 2010 Energy Efficiency revenues increased 21% compared to the second quarter of 2009. This was driven by an 11% year-over-year growth in the Company's EfficientLights LED lighting products, which totaled $5.1 million, as well as approximately $0.9 million of revenue from the Company's recently acquired IES LED lighting company and from the Company's EnergyLite business.
3) Utility Infrastructure: Second quarter 2010 Utility Infrastructure revenues increased 40% compared to the second quarter of 2009. As expected, this was driven by substantial increases in the Company's Utility Services revenues, including transmission and distribution system construction and maintenance services for utilities.
For the second quarter of 2010, the Company's Energy Services segment realized a 2.6% year-over-year increase in revenues from its Southern Flow business, the first year-over-year increase in four quarters, due to the improved conditions in the natural gas markets. The Company's WaterSecure business contributed second quarter income of $0.9 million, up 90% on a year-over-year basis. The Company's WaterSecure results were also positively impacted by improved conditions in the natural gas markets, as well as year-over-year increases in oil prices.
Second quarter 2010 operating expenses were $11.1 million compared to $7.6 million in the second quarter of 2009. The year-over-year increase was primarily due to investments to support new and future business growth, including personnel, vehicles and facilities in each of the Company's Energy and Smart Grid Solutions businesses. Additionally, the year-over-year increase includes investments in new product development, increases in compensation expense, increases in selling expense due to higher revenue, and increases in depreciation from capital expenditures for IDG systems deployed under the Company's growing recurring revenue business.
As of the date of this press release, the Company's revenue backlog expected to be recognized after June 30, 2010 is $127 million. This includes revenue included in the new business announcement made on August 2, 2010, and compares to $117 million of revenue backlog reported with the Company's first quarter earnings release (issued on May 6, 2010). The Company's revenue backlog and the estimated timing of revenue recognition is outlined below, including "project-based revenues" expected to be recognized as projects are completed, and "recurring revenues" expected to be recognized over the life of the contracts:
Revenue Backlog to be recognized after June 30,
2010
Anticipated Estimated Primary
Description Revenue Recognition Period
Project-based Revenue -- Near term $40 Million 3Q10 through 1Q11
Project-based Revenue -- Long term $36 Million 2Q11 through 2Q13
Recurring Revenue $51 Million 3Q10 through 2019
Revenue Backlog to be recognized after June 30, $127 Million
2010
Note: Anticipated revenue and estimated primary recognition periods are subject
to risks and uncertainties as indicated in the Company's safe harbor statement,
below. Consistent with past practice, these figures are not intended to
constitute the Company's total revenue over the indicated time periods, as the
Company has additional, regular on-going revenues. Examples of additional,
regular recurring revenues include revenues from the Company's Southern Flow
business, engineering fees, and service revenue, among others. Numbers may not
add due to rounding.
The Company will host a conference call commencing today at 5:30 p.m. eastern time to discuss its second quarter 2010 results, business operations, strategic initiatives and prospects for the future. The conference call will be webcast live and can be accessed from the Investor Relations section of the Company's website at www.powersecure.com. Participants can also access the call by dialing 888-680-0892 (or 617-213-4858 if dialing internationally), and providing pass code 39657488. If you are unable to participate during the live webcast, a replay of the conference call will be available beginning today at 8:30 p.m. eastern time through midnight on September 2, 2010. To listen to the replay, dial toll-free 888-286-8010 (or 617-801-6888 if dialing internationally), and enter pass code 92023770. In addition, the webcast will be archived on the Company's website at www.powersecure.com.
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers, as well as Energy Services to the oil and natural gas industry. PowerSecure's Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company's Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting product that saves grocery, drug, and convenience stores 70% off the cost to operate traditional fluorescent lighting in their refrigerated cases. The Company is a pioneer in developing Interactive Distributed Generation(R) systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power at peak power times, 2) provide utilities with dedicated electric power generation capacity to utilize for demand response purposes, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with transmission and distribution infrastructure construction and maintenance services, and engineering and regulatory consulting services. The Company provides Energy Services to the oil and natural gas industry through its Southern Flow and WaterSecure business units. Additional information is available at www.powersecure.com.
This press release contains forward-looking statements within the meaning of and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the outlook for the Company's future revenues, earnings, margins, cash resources and cash flow and other financial and operating information and data; the Company's future business operations, strategies and prospects; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, the recent downturn, disruption and volatility in the economy, financial markets and business markets and the effects thereof on the Company's markets and customers, the demand for its products and services, and the Company's access to capital; the size, timing and terms of sales and orders, including the Company's revenue backlog discussed in this press release, and the risk of customers delaying, deferring or canceling purchase orders or making smaller purchases than expected; the timely and successful development, production and market acceptance of new and enhanced products, services and technologies of the Company; the ability of the Company to obtain adequate supplies of key components and materials of sufficient reliability and quality for its products and technologies on a timely and cost-effective basis and the effects of related warranty claims and disputes; the ability of the Company to successfully expand its core distributed generation products and services, to successfully develop and achieve market acceptance of its new energy-related businesses, to successfully expand its recurring revenue projects, to manage its growth and to address the effects of any future changes in utility tariff structures and environmental requirements on its business solutions; the effects of competition; changes in customer and industry demand and preferences; the ability of the Company to continue the growth and diversification of its customer base; the ability of the Company to attract, retain, and motivate its executives and key personnel; changes in the energy industry in general and the electricity, oil, and natural gas markets in particular, including price levels; the effects of competition; the ability of the Company to secure and maintain key contracts and relationships; the effects of pending and future litigation, claims and disputes; and other risks, uncertainties and other factors identified from time to time in its reports filed with or furnished to the Securities and Exchange Commission, including the Company's most recent Annual Report on Form 10-K, as well as subsequently filed reports on Form 10-Q and Form 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
PowerSecure International, Inc.
Consolidated Statements of Operations (unaudited)
($000's except per share data)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
Revenue 34,314 25,135 58,988 44,855
Cost of sales 22,477 16,880 37,560 30,726
Gross Profit 11,837 8,255 21,428 14,129
Operating expenses
General and administrative 9,007 6,072 16,333 12,112
Selling, marketing, and service 1,387 969 2,440 1,800
Depreciation and amortization 743 563 1,400 1,105
Total operating expenses 11,137 7,604 20,173 15,017
Operating income (loss) 700 651 1,255 (888 )
Other income (expense)
Equity income 807 401 1,837 878
Management fees 142 98 296 203
Interest income and other income 24 38 56 91
Interest expense (139 ) (145 ) (280 ) (319 )
Income (loss) before income taxes 1,534 1,043 3,164 (35 )
Income tax benefit (provision) (250 ) (26 ) (476 ) (50 )
Net income (loss) 1,284 1,017 2,688 (85 )
Less: Net income attributable to 40 (331 ) (147 ) (365 )
noncontrolling interest
Net income (loss) attributable to 1,324 686 2,541 (450 )
PowerSecure International, Inc.
EARNINGS PER SHARE AMOUNTS ("E.P.S") ATTRIBUTABLE TO
POWERSECURE INTERNATIONAL, INC. SHAREHOLDERS:
Basic 0.07 0.04 0.14 (0.03 )
Diluted 0.07 0.04 0.14 (0.03 )
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic 17,933 17,159 17,587 17,127
Diluted 18,566 17,159 18,136 17,127
PowerSecure International, Inc.
Condensed Consolidated Balance Sheets (unaudited)
($000's)
June 30, December 31,
ASSETS 2010 2009
CURRENT ASSETS:
Cash and cash equivalents 3,974 20,169
Trade receivables, net of allowance for doubtful 37,711 28,332
accounts
Inventories 27,334 21,632
Deferred income taxes 2,713 2,713
Prepaid expenses and other current assets 866 1,300
Total Current Assets 72,598 74,146
PROPERTY, PLANT, AND EQUIPMENT:
Equipment 25,114 22,252
Furniture and fixtures 676 671
Land, building, and improvements 4,838 4,802
Total property, plant, and equipment at cost 30,628 27,725
Less accumulated depreciation and amortization 6,484 5,413
Property, plant, and equipment, net 24,144 22,312
OTHER ASSETS:
Goodwill 13,395 7,256
Restricted annuity contract 2,265 2,220
Intangible rights and capitalized software, net of accum 1,947 1,320
amort
Investment in unconsolidated affiliate 4,156 3,974
Other assets 191 249
Total other assets 21,954 15,019
TOTAL ASSETS 118,696 111,477
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable 7,044 4,116
Accrued and other liabilities 20,003 20,379
Restructuring charges payable 0 325
Current income taxes payable 144 0
Current unrecognized tax benefit 327 327
Current portion of capital lease obligations 776 756
Total current liabilities 28,294 25,903
LONG-TERM LIABILITIES
Revolving Line of Credit 0 0
Capital lease obligations, net of current portion 4,052 4,445
Unrecognized tax benefit 1,169 1,169
Deferred Compensation 887 721
Total long-term liabilites 6,108 6,335
STOCKHOLDERS' EQUITY
Preferred stock - undesignated 0 0
Preferred stock - Series C 0 0
Common stock 183 172
Additional paid-in-capital 112,466 110,911
Accumulated deficit (30,410 ) (32,951 )
Total PowerSecure International, Inc. stockholders' 82,239 78,132
equity
Noncontrolling Interest 2,055 1,107
Total stockholders' equity 84,294 79,239
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 118,696 111,477
PowerSecure International, Inc.
Condensed Consolidated Statement of Cash Flows (unaudited)
($000's)
Six Months Ended
June 30, June 30,
2010 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) 2,688 (85 )
Adjustments to reconcile net income (loss) to net cash
provided by
(used in) operating activities:
Depreciation and amortization 1,400 1,105
Stock compensation expense 988 787
Distributions to noncontrolling interest shareholder (877 ) 0
(Gain) loss on disposal of miscellaneous assets (1 ) 30
Equity in income of unconsolidated affiliate (1,837 ) (878 )
Distributions from unconsolidated affiliate 1,618 1,093
Changes in operating assets and liabilities, net of effect
of
acquisitions:
Trade receivables, net (9,031 ) (1,378 )
Inventories (5,440 ) (3,024 )
Other current assets and liabilities 578 189
Other noncurrent assets 73 14
Accounts payable 1,952 1,492
Restructuring charges (325 ) (814 )
Accrued and other liabilities (411 ) (1,494 )
Deferred compensation obligation 166 166
Restricted annuity contract (46 ) (43 )
Net cash provided by (used in) operating activities (8,505 ) (2,840 )
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, plant and equipment (2,560 ) (1,612 )
Additions to intangible rights and software development (432 ) (134 )
Acquisitions (4,413 ) (800 )
Proceeds from sale of property, plant and equipment 19 10
Net cash provided by (used in) investing activities (7,386 ) (2,536 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings (payments) on revolving line of credit 0 0
Proceeds from sale-leaseback transactions 0 0
Payments on capital lease obligations (373 ) (353 )
Proceeds from stock option and warrant exercises, net of 69 274
shares tendered
Net cash provided by (used in) financing activities (304 ) (79 )
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (16,195 ) (5,455 )
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 20,169 24,316
CASH AND CASH EQUIVALENTS AT END OF PERIOD 3,974 18,861
Source: PowerSecure International, Inc.
Copyright Business Wire 2010
POWR.. $9.40 DD Partnership with Schneider Electric
PowerSecure and Schneider Electric Partner to Bring Smart Grid Solutions to Hospitals
WAKE FOREST, N.C.--(BUSINESS WIRE)--July 13, 2010--
PowerSecure International, Inc. (Nasdaq: POWR) today announced it has established a partnership with Schneider Electric, the global specialist in energy management, to bring its Interactive Distributed Generation(R) smart grid power systems to hospitals.
Under the terms of this new partnership, Schneider Electric will offer hospitals across North America PowerSecure's Interactive Distributed Generation (IDG(R)) power systems. PowerSecure's proven, industry-leading IDG technology, in partnership with local utilities, enables hospitals to 1) make their operations more efficient by utilizing their idle backup power systems during high-cost peak electricity demand, 2) extend and upgrade their backup power systems due to the energy savings IDG systems can deliver, and 3) benefit from PowerSecure's proprietary monitoring and control systems, which are electronically connected to PowerSecure's Smart Grid Monitoring Center, ensuring that the delivery of more efficient power is optimized, and that backup power is ready to support hospital facilities around-the-clock.
"We are in an excellent position to help our healthcare customers understand and use their energy as an asset, not as a liability," said James Anderson, Vice President, Smart Grid Programs, Schneider Electric. "This partnership with PowerSecure allows us to implement a demand management strategy with our healthcare customers and further enhances our ability to help hospitals and other healthcare facilities understand the opportunities and risks inherent in the smart grid."
Sidney Hinton, CEO of PowerSecure, said, "We are excited about this new partnership with Schneider Electric. Their reputation in the marketplace is impeccable, and they have built strong, trusting relationships with thousands of healthcare companies. Their breadth and expertise in this category is second to none. We are looking forward to working with Schneider Electric to make our IDG smart grid power systems available to an expanded number of hospital customers through this partnership."
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers, as well as Energy Services to the oil and natural gas industry. PowerSecure's Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company is a pioneer in developing Interactive Distributed Generation(R) systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast peak electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power, 2) provide utilities with dedicated electric power generation assets for their demand response needs, and 3) provide customers with the most dependable standby power in the industry. The Company's Energy Efficiency business provides customers with energy efficient LED-based lighting technologies that deliver improved quality of light with strong returns on investment, including its proprietary EfficientLights lighting products for grocery, drug, and convenience stores, and its LED based street and area light product for utilities and municipalities. PowerSecure also provides utilities with utility infrastructure products and services, including transmission and distribution construction and maintenance, engineering and design services, and regulatory consulting. The Company provides Energy Services to the oil and natural gas industry through its Southern Flow and WaterSecure business units. Additional information is available at www.powersecure.com.
About Schneider Electric
As a global specialist in energy management with operations in more than 100 countries, Schneider Electric offers integrated solutions across multiple market segments, including leadership positions in energy and infrastructure, industrial processes, building automation, and data centers/networks, as well as a broad presence in residential applications. Focused on making energy safe, reliable, and efficient, the company's 100,000+ employees achieved sales of more than $22 billion in 2009, through an active commitment to help individuals and organizations "Make the most of their energy". www.schneider-electric.us
All forward-looking statements contained in this release are made within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the amount and timing of revenue and profit expected from the businesses alliance and opportunities discussed in this press release, and the Company's future revenues, earnings, margins, and other financial and operating information and data; the Company's outlook, prospects and expectations for revenues, net income, and E.P.S. results and growth generally, and related to the events described herein; the anticipated results of the Company's products, services, and technologies; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, those risks, uncertainties and other factors identified from time to time in the Company's most recent Annual Report on Form 10-K, as well as in subsequent filings with the Securities and Exchange Commission, including reports on Forms 10-Q and 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward- looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
CONTACT: PowerSecure International, Inc.
Chris Hutter, 919-453-1760
Chief
Financial Officer
SOURCE: PowerSecure International, Inc. Copyright Business Wire 2010
POWR.. $9.40 DD Awards..
WAKE FOREST, N.C.--(BUSINESS WIRE)--June 22, 2010--
PowerSecure International, Inc. (Nasdaq: POWR) today announced that the Company and its CEO, Sidney Hinton, were honored at Ernst & Young's 2010 Entrepreneur of the Year Awards for the Carolinas as finalists in the Clean Tech category. The other two finalists in the Clean Tech category included Carlos Gutierrez, CEO of United Resource Recovery Corporation, and Chuck Swoboda, CEO of Cree, Inc., who was the category winner. Ernst & Young's prestigious Entrepreneur of the Year program honors entrepreneurs, and the companies they lead, who demonstrate extraordinary success in the areas of innovation, financial performance, and commitment to their businesses and communities. Nominations and evaluations are performed by an independent judging panel made up of regional business, academic, and community leaders.
Sidney Hinton, CEO of PowerSecure, said, "We are excited and humbled by this recognition, and to be among such a terrific list of companies honored at this year's awards event. We are blessed with an amazing team of people whose dedicated, passionate service to our customers is the foundation of our success. This honor belongs to the entire PowerSecure team, and we receive it with a strong sense of responsibility and stewardship to strive every day to serve our customers with excellence, maintain a workplace of respect and opportunity, and operate with the highest degree of integrity."
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers, as well as Energy Services to the oil and natural gas industry. PowerSecure's Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company is a pioneer in developing Interactive Distributed Generation(R) systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast peak electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power, 2) provide utilities with dedicated electric power generation assets for their demand response needs, and 3) provide customers with the most dependable standby power in the industry. The Company's Energy Efficiency business provides customers with energy efficient LED-based lighting technologies that deliver improved quality of light with strong returns on investment, including its proprietary EfficientLights lighting products for grocery, drug, and convenience stores, and its LED based street and area light product for utilities and municipalities. PowerSecure also provides utilities with utility infrastructure products and services, including transmission and distribution construction and maintenance, engineering and design services, and regulatory consulting. The Company provides Energy Services to the oil and natural gas industry through its Southern Flow and WaterSecure business units. Additional information is available at www.powersecure.com.
CONTACT: PowerSecure International, Inc.
Chris Hutter, Chief Financial
Officer
919-453-1760
SOURCE: PowerSecure International, Inc. Copyright Business Wire 2010
POWR.. $9.40 Insider Sale..
Dir COLLINS Sells 30,915 Of POWERSECURE INTERNATIONAL INC POWR
Dow Jones & Company, Inc. - Jun 01 at 16:21
Company Symbols: NASDAQ-NMS:POWR
SOURCE: Form 4
ISSUER: POWERSECURE INTERNATIONAL INC
SYMBOL: POWR
FILER: COLLINS KEVIN P
TITLE: Director
DATE TRANSACTION SHARES PRICE VALUE
4/27/10-4/28/10 Exercise* 30,915 $1.66 $51,291
4/27/10-4/28/10 Sale 30,915 $9.63 $297,557
OWNERSHIP: 18,790 (Direct)
* - 30,000 shares exercised 8 years, 10 months after vesting and 1 year, 1
month before expiration.
915 shares exercised 9 years, 10 months after vesting and 49 days
before expiration.
The Form 4 is filed with the Securities and Exchange Commission by insiders
to report transactions in their companies' shares. Open market purchases
and sales must be reported within two business days of the transaction.
POWR.. $9.40 Insider Purchase..
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940 OMB APPROVAL
OMB Number: 3235-0287
Expires: February 28, 2011
Estimated average burden
hours per response 0.5
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
1. Name and Address of Reporting Person*HINTON SIDNEY
--------------------------------------------------------------------------------
(Last) (First) (Middle)
1609 HERITAGE COMMERCE CT.
--------------------------------------------------------------------------------
(Street)WAKE FOREST NC 27587
--------------------------------------------------------------------------------
(City) (State) (Zip)
2. Issuer Name and Ticker or Trading Symbol
POWERSECURE INTERNATIONAL, INC. [POWR] 5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)X Director 10% Owner
X Officer (give title below) Other (specify below)
President and CEO
3. Date of Earliest Transaction (Month/Day/Year)
06/01/2010
4. If Amendment, Date of Original Filed (Month/Day/Year)
6. Individual or Joint/Group Filing (Check Applicable Line)X Form filed by One Reporting Person
Form filed by More than One Reporting Person
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8) 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4) 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 06/01/2010 P 10,000 A $ 9.6 (1) 679,816 (2) D
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date
(Month/Day/Year) 7. Title and Amount of Underlying Securities
(Instr. 3 and 4) 8. Price of Derivative Security
(Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4) 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Explanation of Responses:
1. The price reported in Column 4 is the weighted average price. These shares were purchased in multiple transactions at prices ranging from $9.54 to $9.60 per share, inclusive. The Reporting Person undertakes to provide to the Issuer, any security holder of the Issuer or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares purchased at each separate price within the range set forth in this footnote
2. Includes 540,000 restricted shares which are subject to risk of forfeiture
/s/ Sidney Hinton 06/01/2010
POWR.. $9.40 DD $30 million of infrastructure services over the next three years.
WAKE FOREST, N.C.--(BUSINESS WIRE)--May 25, 2010--
PowerSecure International, Inc. (Nasdaq: POWR) today announced its Utility Services unit has been selected by a major U.S. utility to provide a total of approximately $30 million of infrastructure services over the next three years. PowerSecure's Utility Services team will assist the utility with its plan to upgrade its distribution infrastructure to improve its efficiency and durability. This new award expands and extends the services the Company's Utility Services unit has been providing the utility over the last twelve months.
The Company expects that this $30 million of business will be recognized as delivered and relatively evenly over the next three years. Work under this new program will begin June 1, with volumes increasing over the next 90-120 days, at which time it is expected that the volume of services under the program will be fully established and will continue at a regular on-going pace. The Company has been proactively investing in equipment and personnel to be positioned to serve the utility as rapidly as possible with top quality work.
The Company will include the $30 million of business in its revenue backlog reported in conjunction with its second quarter earnings release in early August.
Sidney Hinton, CEO of PowerSecure, said, "We are excited about the opportunity to serve this major, well respected utility under an expanded, long-term arrangement. Our Utility Services team has worked extraordinarily hard to provide gold-standard service over the last twelve months, and we are strongly committed to continuing to deliver terrific services with lasting value. Our expected revenues under this new contract will add significantly to both our near and long-term backlog, increasing our confidence in 2010 and providing an early foundation of business for 2011 and 2012."
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers, as well as Energy Services to the oil and natural gas industry. PowerSecure's Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company's Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting products for grocery, drug, and convenience stores, and its LED based street and area light product for utilities and municipalities. The Company is a pioneer in developing Interactive Distributed Generation(R) systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast peak electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power, 2) provide utilities with dedicated electric power generation assets for their demand response needs, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with utility infrastructure products and services, including transmission and distribution construction and maintenance, engineering and design services, and regulatory consulting. The Company provides Energy Services to the oil and natural gas industry through its Southern Flow and WaterSecure business units. Additional information is available at www.powersecure.com.
All forward-looking statements contained in this release are made within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the amount and timing of revenue and profit expected from the award and the outlook for the businesses discussed in this press release, and the Company's future revenues, earnings, margins, and other financial and operating information and data; the Company's outlook, prospects and expectations for revenues, net income, and E.P.S. results and growth generally, and related to the events described herein; the anticipated results of the Company's products, services, and technologies; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, those risks, uncertainties and other factors identified from time to time in the Company's most recent Annual Report on Form 10-K, as well as in subsequent filings with the Securities and Exchange Commission, including reports on Forms 10-Q and 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward- looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
CONTACT: PowerSecure International, Inc.
Chris Hutter, Chief Financial
Officer
919-453-1760
SOURCE: PowerSecure International, Inc. Copyright Business Wire 2010
POWR.. $9.40 DD Receives First Order
PRESS RELEASE: PowerSecure Unveils New LED Area Light for Utilities and Receives First Order
Dow Jones & Company, Inc. - May 17 at 04:00
Company Symbols: NASDAQ-NMS:POWR
WAKE FOREST, N.C.--(BUSINESS WIRE)--May 17, 2010--
PowerSecure International, Inc. (Nasdaq: POWR) today announced that it has unveiled a new LED based area light for utilities, and has already received its first order. The new light is used to illuminate streets, sidewalks, and other infrastructure served and owned by utilities and municipalities. The new light includes a breakthrough design that reduces energy consumption by two-thirds, reduces maintenance expense due to a five-fold improvement in light life, and improves the quality of light compared to traditional area lighting. Additionally, the light is designed to provide maximum "dark sky" benefits to the community and to enable the lighting retrofit process to be highly efficient. The Company's new area light is manufactured in the Raleigh, NC area.
The Company's first order is from a large electric cooperative who will install 200 lights in an initial phase of a program to upgrade and improve the efficiency of its area light infrastructure. In total, this utility has over 400,000 area lights in operation.
Sidney Hinton, CEO of PowerSecure, said, "We are very excited about the potential for the new area light. Just one week after unveiling it to the market, we received our first order. This is a testament to the strength and ingenuity of the light's innovative design, which delivers a fantastic quality of light and minimizes on-going maintenance cost -- providing utilities with a strong return on their investment. We are very encouraged by the initial feedback we are receiving from customers on this new product and its potential in the marketplace."
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers, as well as Energy Services to the oil and natural gas industry. PowerSecure's Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company's Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting product that saves grocery, drug, and convenience stores 70% off the cost to operate traditional fluorescent lighting in their refrigerated cases. The Company is a pioneer in developing Interactive Distributed Generation(R) systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast peak electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power, 2) provide utilities with dedicated electric power generation assets for their demand response needs, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with regulatory consulting and transmission and distribution engineering and construction services and products. The Company provides Energy Services to the oil and natural gas industry through its Southern Flow and WaterSecure business units. Additional information is available at www.powersecure.com.
All forward-looking statements contained in this release are made within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the outlook for the businesses discussed in this press release and the Company's future revenues, earnings, margins, and other financial and operating information and data; the outlook for growing the Company through innovative energy management and conservation; business operations and prospects for the Company; the outlook for future gains in the Company's revenues, net income, and E.P.S. due the business initiatives and new business described herein; the anticipated results of the Company's products, solutions, and technologies; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, those risks, uncertainties and other factors identified from time to time in the Company's most recent Annual Report on Form 10-K, as well as in subsequent filings with the Securities and Exchange Commission, including reports on Forms 10-Q and 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
CONTACT: PowerSecure International, Inc.
Chris Hutter
Chief Financial
Officer
919-453-1760
SOURCE: PowerSecure International, Inc. Copyright Business Wire 2010
POWR.. $9.40 DD..Introduces New LED Lighting
EfficientLights Introduces New LED Lighting Products for Retailers' Walk-in Freezer/Coolers and Open Refrigerated Shelves
Business Wire - May 10 at 08:30
Company Symbols: NASDAQ-NMS:POWR
WAKE FOREST, N.C.--(BUSINESS WIRE)-- PowerSecure International, Inc. (Nasdaq: POWR) today announced its EfficientLights business has introduced two new LED lighting products to improve the energy efficiency and quality of light in grocery, drug, and convenience stores. These products include a new light for retailers' walk-in freezer/coolers and a new light for open refrigerated shelves. These products broaden the Company's in-store LED lighting product line, and complement its highly successful flagship EfficientLights product for refrigerated case doors. The new lights are being brought to market at the urging of customers who have installed and experienced the benefits of PowerSecure's flagship LED product, and who have identified a strong marketplace need for these additional in-store LED lighting applications.
The new lights were designed, tested, and perfected in real world settings, including operating grocery stores of major chains who have installed the Company's flagship EfficientLights product. Importantly, they utilize and build upon the Company's industry leading technology, and are designed to deliver retailers an improved quality of light illuminating their products. In addition, the new lighting solutions will reduce lighting energy costs, reduce maintenance expense by extending light life five-fold over traditional lighting, provide a lower carbon footprint, and eliminate the use of mercury-containing fluorescent lights.
Bryan Beatenbough, President of EfficientLights, said, "We are very excited to bring these new products to market. We have been blessed to have a wonderfully successful EfficientLights refrigerated case door product that is improving energy efficiency and lighting in stores across the country, and we can now bring retailers these benefits to additional areas of their stores. Similar to the process we used to develop our flagship product, we designed our new lights in partnership with our customers - to make sure our light addresses their real-world needs. The release of these new lights to the marketplace represents another major milestone in our plan to bring retailers a full suite of LED lighting for their stores."
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers, as well as Energy Services to the oil and natural gas industry. PowerSecure's Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company's Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting product that saves grocery, drug, and convenience stores 70% off the cost to operate traditional fluorescent lighting in their refrigerated cases. The Company is a pioneer in developing Interactive Distributed Generation(R) systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast peak electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power, 2) provide utilities with dedicated electric power generation assets for their demand response needs, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with utility infrastructure products and services, including transmission and distribution construction and maintenance, engineering and design services, and regulatory consulting. The Company provides Energy Services to the oil and natural gas industry through its Southern Flow and WaterSecure business units. Additional information is available at www.powersecure.com.
All forward-looking statements contained in this release are made within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the outlook for the businesses discussed in this press release and the Company's future revenues, earnings, margins, and other financial and operating information and data; the Company's outlook, prospects and expectations for revenues, net income, and E.P.S. results and growth generally, and related to the events described herein; the anticipated results of the Company's products, services, and technologies; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, those risks, uncertainties and other factors identified from time to time in the Company's most recent Annual Report on Form 10-K, as well as in subsequent filings with the Securities and Exchange Commission, including reports on Forms 10-Q and 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
Source: PowerSecure International, Inc.
POWR.. $11.15 PowerSecure Reports Second Quarter Results..
Revenue Increases 37% with Growth Across All Business Areas, E.P.S. Increases 75% WAKE FOREST, N.C.--(BUSINESS WIRE)--August 05, 2010--
PowerSecure International, Inc. (Nasdaq: POWR) today reported strong revenue and profit results for its second quarter of 2010. Second quarter revenues were $34.3 million, increasing 36.5% compared to $25.1 million in the second quarter of 2009, and diluted earnings per share ("E.P.S.") were $0.07, increasing 75% compared to $0.04 in the second quarter of 2009.
These revenue and profit results were driven by the combined substantial year- over-year revenue growth in the Company's Interactive Distributed Generation business of 55%, Utility Infrastructure business of 40%, and Energy Efficiency business of 21%. Additionally, the Company's second quarter gross margin as a percentage of revenue was 34.5%, 1.7 percentage points higher than the second quarter of 2009, due a favorable mix of projects completed in the second quarter of 2010 compared to a year ago. Operating expenses for the second quarter of 2010 were higher than the prior year's second quarter by $3.5 million, primarily due to investments the Company is making in business expansion and new product development in each of its Interactive Distributed Generation, Utility Infrastructure, and Energy Efficiency business areas.
Sidney Hinton, CEO of PowerSecure, said, "We are very pleased with our second quarter results. Our top line was strong, reflecting 'across the board' growth in our businesses. Additionally, our year-over-year gross margin gains reflect the strong value our products and services deliver to our customers, as well as the efforts of the PowerSecure team to work smart -- in our service delivery process and our engineering and manufacturing approach. We are bullish on the opportunities we see to serve customers in each of our business areas, and in the first half of 2010 we made investments to put us in position to realize these opportunities. These investments include technology, people, equipment, and new product development to drive and enhance both our near and long-term growth."
Mr. Hinton continued, "The new business we were awarded in the second quarter enabled us to grow our backlog to $127 million. This expanded backlog enables us to continue to plan and invest over longer-term horizons. Our near term backlog decreased due to the mix of new revenue awards being longer-term and more recurring in nature, and because we continue to exceed our own expectations in our project execution and revenue recognition. We will remain attentive to any patterns that develop in our business given the near-term uncertainty in the recovery of the economy. That said, we continue to be very excited about the strategic positions of each of our businesses and their growth opportunities and promise."
For the second quarter of 2010, the Company's Energy and Smart Grid Solutions segment revenues were $29.7 million, increasing $9.1 million, or 43.8%, compared to the second quarter of 2009. This segment includes the strategic business areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. These three business areas realized the following revenue variances in the second quarter of 2010 compared to the second quarter of 2009:
1) Interactive Distributed Generation: Second quarter 2010 Interactive Distributed Generation (IDG) revenues increased 55% compared to the second quarter of 2009. This increase was driven by a 64% increase in the Company's project-based revenues from sales of IDG systems, a 40% increase in recurring revenues from IDG systems, and a 44% increase in NexGear switchgear revenues. Total recurring revenues from IDG systems for the second quarter were $1.8 million, an all time high for any quarter in the Company's history.
2) Energy Efficiency: Second quarter 2010 Energy Efficiency revenues increased 21% compared to the second quarter of 2009. This was driven by an 11% year-over- year growth in the Company's EfficientLights LED lighting products, which totaled $5.1 million, as well as approximately $0.9 million of revenue from the Company's recently acquired IES LED lighting company and from the Company's EnergyLite business.
3) Utility Infrastructure: Second quarter 2010 Utility Infrastructure revenues increased 40% compared to the second quarter of 2009. As expected, this was driven by substantial increases in the Company's Utility Services revenues, including transmission and distribution system construction and maintenance services for utilities.
For the second quarter of 2010, the Company's Energy Services segment realized a 2.6% year-over-year increase in revenues from its Southern Flow business, the first year-over-year increase in four quarters, due to the improved conditions in the natural gas markets. The Company's WaterSecure business contributed second quarter income of $0.9 million, up 90% on a year-over-year basis. The Company's WaterSecure results were also positively impacted by improved conditions in the natural gas markets, as well as year-over-year increases in oil prices.
Second quarter 2010 operating expenses were $11.1 million compared to $7.6 million in the second quarter of 2009. The year-over-year increase was primarily due to investments to support new and future business growth, including personnel, vehicles and facilities in each of the Company's Energy and Smart Grid Solutions businesses. Additionally, the year-over-year increase includes investments in new product development, increases in compensation expense, increases in selling expense due to higher revenue, and increases in depreciation from capital expenditures for IDG systems deployed under the Company's growing recurring revenue business.
As of the date of this press release, the Company's revenue backlog expected to be recognized after June 30, 2010 is $127 million. This includes revenue included in the new business announcement made on August 2, 2010, and compares to $117 million of revenue backlog reported with the Company's first quarter earnings release (issued on May 6, 2010). The Company's revenue backlog and the estimated timing of revenue recognition is outlined below, including "project- based revenues" expected to be recognized as projects are completed, and " recurring revenues" expected to be recognized over the life of the contracts:
Revenue Backlog to be recognized after June
30, 2010
Anticipated Estimated Primary
Description Revenue Recognition Period
-------------------------------------------- ------------ ------------------
Project-based Revenue -- Near term $40 Million 3Q10 through 1Q11
Project-based Revenue -- Long term $36 Million 2Q11 through 2Q13
Recurring Revenue $51 Million 3Q10 through 2019
------------
Revenue Backlog to be recognized after June $127 Million
30, 2010
Note: Anticipated revenue and estimated primary recognition periods are
subject to risks and uncertainties as indicated in the Company's safe harbor
statement, below. Consistent with past practice, these figures are not
intended to constitute the Company's total revenue over the indicated time
periods, as the Company has additional, regular on-going revenues. Examples of
additional, regular recurring revenues include revenues from the Company's
Southern Flow business, engineering fees, and service revenue, among others.
Numbers may not add due to rounding.
The Company will host a conference call commencing today at 5:30 p.m. eastern time to discuss its second quarter 2010 results, business operations, strategic initiatives and prospects for the future. The conference call will be webcast live and can be accessed from the Investor Relations section of the Company's website at www.powersecure.com. Participants can also access the call by dialing 888-680-0892 (or 617-213-4858 if dialing internationally), and providing pass code 39657488. If you are unable to participate during the live webcast, a replay of the conference call will be available beginning today at 8:30 p.m. eastern time through midnight on September 2, 2010. To listen to the replay, dial toll-free 888-286-8010 (or 617-801-6888 if dialing internationally), and enter pass code 92023770. In addition, the webcast will be archived on the Company's website at www.powersecure.com.
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers, as well as Energy Services to the oil and natural gas industry. PowerSecure's Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company's Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting product that saves grocery, drug, and convenience stores 70% off the cost to operate traditional fluorescent lighting in their refrigerated cases. The Company is a pioneer in developing Interactive Distributed Generation(R) systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power at peak power times, 2) provide utilities with dedicated electric power generation capacity to utilize for demand response purposes, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with transmission
PowerSecure Announces Schedule for its Second Quarter 2010 Earnings Release and Conference Call
Business Wire - Jul 22 at 16:30
Company Symbols: NASDAQ-NMS:POWR
WAKE FOREST, N.C.--(BUSINESS WIRE)-- PowerSecure International, Inc. (Nasdaq: POWR) has scheduled its second quarter 2010 earnings release and conference call for Thursday, August 5, 2010, after the market close. The Company will issue its second quarter 2010 earnings release at approximately 4:15 p.m. eastern time, and will hold its earnings conference call from 5:30-6:30 p.m. eastern time.
The conference call will be webcast live and can be accessed from the Investor Relations section of the Company's website at www.powersecure.com. Participants can access the call by dialing 888-680-0892 (or 617-213-4858 if dialing internationally), and providing pass code 39657488.
PowerSecure is offering call participants a pre-registration option that expedites access to the call and minimizes hold times. Pre-registrants will be issued a pin number to be used when dialing into the live call which will provide quick access to the conference call by bypassing the operator. Pre-registration is not mandatory. Those who would like to take advantage of pre-registration can do so by accessing the following website:
https://www.theconferencingservice.com/prereg/key.process?key=PCWAFAFCQ
If you are unable to participate during the live webcast, a replay of the conference call will be available beginning at 8:30 p.m. eastern time on August 5, 2010 through midnight eastern time on September 2, 2010. To listen to the replay, dial 888-286-8010 (or 617-801-6888 if dialing internationally), and enter pass code 92023770. In addition, the webcast will be archived on the Company's website at www.powersecure.com.
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers, as well as Energy Services to the oil and natural gas industry. PowerSecure's Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company's Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting products that save grocery, drug, and convenience stores 70% off the cost to operate traditional fluorescent lighting in their refrigerated cases. The Company is a pioneer in developing Interactive Distributed Generation(R) systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast peak electricity demand and electronically deploy more efficient, and environmentally friendly power, 2) provide utilities with dedicated electric power generation assets for their demand response needs, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with transmission and distribution infrastructure construction and maintenance, as well as consulting and engineering services. The Company provides Energy Services to the oil and natural gas industry through its Southern Flow and WaterSecure business units. Additional information is available at www.powersecure.com.
Source: PowerSecure International, Inc.
POWR.. $8.83
PowerSecure Announces $30 Million Award to Provide a Major U.S. Utility with Infrastructure Upgrades
Business Wire - May 25 at 08:30
Company Symbols: NASDAQ-NMS:POWR
WAKE FOREST, N.C.--(BUSINESS WIRE)-- PowerSecure International, Inc. (Nasdaq: POWR) today announced its Utility Services unit has been selected by a major U.S. utility to provide a total of approximately $30 million of infrastructure services over the next three years. PowerSecure's Utility Services team will assist the utility with its plan to upgrade its distribution infrastructure to improve its efficiency and durability. This new award expands and extends the services the Company's Utility Services unit has been providing the utility over the last twelve months.
The Company expects that this $30 million of business will be recognized as delivered and relatively evenly over the next three years. Work under this new program will begin June 1, with volumes increasing over the next 90-120 days, at which time it is expected that the volume of services under the program will be fully established and will continue at a regular on-going pace. The Company has been proactively investing in equipment and personnel to be positioned to serve the utility as rapidly as possible with top quality work.
The Company will include the $30 million of business in its revenue backlog reported in conjunction with its second quarter earnings release in early August.
Sidney Hinton, CEO of PowerSecure, said, "We are excited about the opportunity to serve this major, well respected utility under an expanded, long-term arrangement. Our Utility Services team has worked extraordinarily hard to provide gold-standard service over the last twelve months, and we are strongly committed to continuing to deliver terrific services with lasting value. Our expected revenues under this new contract will add significantly to both our near and long-term backlog, increasing our confidence in 2010 and providing an early foundation of business for 2011 and 2012."
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers, as well as Energy Services to the oil and natural gas industry. PowerSecure's Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company's Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting products for grocery, drug, and convenience stores, and its LED based street and area light product for utilities and municipalities. The Company is a pioneer in developing Interactive Distributed Generation(R) systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast peak electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power, 2) provide utilities with dedicated electric power generation assets for their demand response needs, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with utility infrastructure products and services, including transmission and distribution construction and maintenance, engineering and design services, and regulatory consulting. The Company provides Energy Services to the oil and natural gas industry through its Southern Flow and WaterSecure business units. Additional information is available at www.powersecure.com.
All forward-looking statements contained in this release are made within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the amount and timing of revenue and profit expected from the award and the outlook for the businesses discussed in this press release, and the Company's future revenues, earnings, margins, and other financial and operating information and data; the Company's outlook, prospects and expectations for revenues, net income, and E.P.S. results and growth generally, and related to the events described herein; the anticipated results of the Company's products, services, and technologies; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, those risks, uncertainties and other factors identified from time to time in the Company's most recent Annual Report on Form 10-K, as well as in subsequent filings with the Securities and Exchange Commission, including reports on Forms 10-Q and 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
Source: PowerSecure International, Inc.
POWR..$10.01
PowerSecure Unveils New LED Area Light for Utilities and Receives First Order
Business Wire - May 17 at 04:00
Company Symbols: NASDAQ-NMS:POWR
WAKE FOREST, N.C.--(BUSINESS WIRE)-- PowerSecure International, Inc. (Nasdaq: POWR) today announced that it has unveiled a new LED based area light for utilities, and has already received its first order. The new light is used to illuminate streets, sidewalks, and other infrastructure served and owned by utilities and municipalities. The new light includes a breakthrough design that reduces energy consumption by two-thirds, reduces maintenance expense due to a five-fold improvement in light life, and improves the quality of light compared to traditional area lighting. Additionally, the light is designed to provide maximum "dark sky" benefits to the community and to enable the lighting retrofit process to be highly efficient. The Company's new area light is manufactured in the Raleigh, NC area.
The Company's first order is from a large electric cooperative who will install 200 lights in an initial phase of a program to upgrade and improve the efficiency of its area light infrastructure. In total, this utility has over 400,000 area lights in operation.
Sidney Hinton, CEO of PowerSecure, said, "We are very excited about the potential for the new area light. Just one week after unveiling it to the market, we received our first order. This is a testament to the strength and ingenuity of the light's innovative design, which delivers a fantastic quality of light and minimizes on-going maintenance cost - providing utilities with a strong return on their investment. We are very encouraged by the initial feedback we are receiving from customers on this new product and its potential in the marketplace."
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers, as well as Energy Services to the oil and natural gas industry. PowerSecure's Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company's Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting product that saves grocery, drug, and convenience stores 70% off the cost to operate traditional fluorescent lighting in their refrigerated cases. The Company is a pioneer in developing Interactive Distributed Generation(R) systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast peak electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power, 2) provide utilities with dedicated electric power generation assets for their demand response needs, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with regulatory consulting, and transmission and distribution engineering and construction services and products. The Company provides Energy Services to the oil and natural gas industry through its Southern Flow and WaterSecure business units. Additional information is available at www.powersecure.com.
All forward-looking statements contained in this release are made within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the outlook for the businesses discussed in this press release and the Company's future revenues, earnings, margins, and other financial and operating information and data; the outlook for growing the Company through innovative energy management and conservation; business operations and prospects for the Company; the outlook for future gains in the Company's revenues, net income, and E.P.S. due the business initiatives and new business described herein; the anticipated results of the Company's products, solutions, and technologies; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, those risks, uncertainties and other factors identified from time to time in the Company's most recent Annual Report on Form 10-K, as well as in subsequent filings with the Securities and Exchange Commission, including reports on Forms 10-Q and 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
Source: PowerSecure International, Inc.
Copyright Business Wire 2010
POWR.. $9.87
PowerSecure to Participate in the Rodman & Renshaw Global Investment Conference
Business Wire - May 12 at 07:00
Company Symbols: NASDAQ-NMS:POWR
WAKE FOREST, N.C.--(BUSINESS WIRE)-- PowerSecure International, Inc. (Nasdaq: POWR) will present at the Rodman & Renshaw Global Investment Conference on Monday, May 17, 2010 at 12:45 p.m. BST, 7:45 a.m. EDT, at the Grosvenor House Hotel, Park Lane, London, UK. The presentation will include a discussion of the Company's business operations, financial results, strategic initiatives and prospects for the future. The slide presentation and a link to an audio webcast of the event will be available beginning May 14, 2010, on the Investor Relations section of the Company's web site at www.powersecure.com.
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers, as well as Energy Services to the oil and natural gas industry. PowerSecure's Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company's Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting product that saves grocery, drug, and convenience stores 70% off the cost to operate traditional fluorescent lighting in their refrigerated cases. The Company is a pioneer in developing Interactive Distributed Generation(R) systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast peak electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power, 2) provide utilities with dedicated electric power generation assets for their demand response needs, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with regulatory consulting, and transmission and distribution engineering and construction services and products. The Company provides Energy Services to the oil and natural gas industry through its Southern Flow and WaterSecure business units. Additional information is available at www.powersecure.com.
Source: PowerSecure International, Inc.
POWR.. $9.65.. filed shelf registration
PowerSecure Files Shelf Registration Statements to Facilitate LED Lighting Business Investments and Provide Flexibility to Finance Future Growth Opportunities
Business Wire - May 06 at 16:16
Company Symbols: NASDAQ-NMS:POWR
WAKE FOREST, N.C.--(BUSINESS WIRE)-- PowerSecure International, Inc. (Nasdaq: POWR) today announced it has filed shelf registration statements on Forms S-3 and S-4 with the U.S. Securities and Exchange Commission. The Form S-3 registration statement was filed to facilitate the resale of up to 1,025,641 common shares of the Company's stock that were issued in conjunction with its purchase of the remaining one-third interest in its EfficientLights LED lighting business. The transaction to purchase the remaining minority interest in EfficientLights was completed on April 30, 2010. The Form S-4 registration statement was filed in conjunction with the Company's recently completed Innovative Electronic Solution Lighting ("IES") acquisition, to prepare for the potential issuance of common shares to facilitate the Company's option to purchase the remaining one-third minority interest of IES. Both the Form S-3 and S-4 registration statements also provide the Company with additional flexibility to issue registered equity securities to finance future growth opportunities.
The total amount of the equity securities covered by the shelf registration statements is $100 million, with $70 million to be registered under the Form S-3 registration statement, and $30 million to be registered under the Form S-4 registration statement. The Company does not have any immediate plans or commitments to sell securities under either registration statement beyond the 1,025,641 shares which were issued in conjunction with its recently completed EfficientLights transaction. The terms of any future offerings under these shelf registrations will be determined at the time of the offerings.
Sidney Hinton, CEO of PowerSecure, said, "We do not have plans to raise capital or issue registered stock beyond the resale of the stock we issued in the transaction to increase our ownership in our EfficientLights LED lighting business to 100%, which is a highly accretive to our E.P.S. However, we filed the Form S-3 in an amount that provides us with the additional flexibility to finance future growth opportunities, and we filed the Form S-4 to provide us with the proactive ability to buy out the remaining one-third minority interest in IES if we choose to do so, as well as to give us the additional flexibility to finance future acquisitions."
Mr. Hinton continued, "We believe one of our Company's core strengths is our demonstrated ability to prudently manage and deploy capital to maximize shareholder value. We also believe there are significant opportunities to develop new business lines and technologies to add to our existing portfolio of products and services and fuel our future growth - and the shelf registrations we filed today provide us with additional flexibility to invest in these opportunities. That said, we continue to remain committed to our strategy of organic growth, enhanced by prudent, complementary acquisitions. We also remain committed to our track record of discipline about the investments we choose to make, and their ability to enhance shareholder value."
If and when the shelf registration statement on Form S-3 is declared effective by the SEC, the Company may from time to time offer and sell up to $70 million of its common stock using various methods of distribution, which amount includes any resales under the Form S-3 by the former EfficientLights one-third minority interest owners of the 1,025,641 shares of common stock the Company issued in conjunction with the buyout transaction. The net proceeds of any such offerings by the Company would likely include financing acquisitions, capital investments (including capital for the Company's recurring revenue business model for Interactive Distributed Generation systems), supplementing the Company's working capital to support growth opportunities, and general corporate purposes. The Company will not receive any proceeds from the resale of shares by the selling stockholders.
If and when the shelf registration statement on Form S-4 is declared effective by the SEC, the Company may from time to time offer and sell up to $30 million of its common stock in connection with acquisitions, including exchange offers and business combination transactions. This includes the potential acquisition of the remaining one-third minority interest in Innovative Electronic Solutions Lighting, LLC, the LED lighting development business in which the Company currently owns a two-thirds controlling interest. The Company does not expect to receive cash proceeds from the sale of common stock issued under the Form S-4.
Registration statements relating to these securities have been filed with the SEC, but have not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. The terms of any offering under either registration statement would be established at the time of the offering and as required would be described in a prospectus supplement filed with the SEC prior to the completion of the offering. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of securities, in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the laws of any such state. Any offering of the securities covered under the shelf registration statement will be made solely by means of a prospectus and an accompanying prospectus supplement relating to that offering.
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers, as well as Energy Services to the oil and natural gas industry. PowerSecure's Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company's Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting product that saves grocery, drug, and convenience stores 70% off the cost to operate traditional fluorescent lighting in their refrigerated cases. The Company is a pioneer in developing Interactive Distributed Generation(R) systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast peak electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power, 2) provide utilities with dedicated electric power generation assets for their demand response needs, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with utility infrastructure products and services, including transmission and distribution construction and maintenance, engineering and design services, and regulatory consulting. The Company provides Energy Services to the oil and natural gas industry through its Southern Flow and WaterSecure business units. Additional information is available at www.powersecure.com.
All forward-looking statements contained in this release are made within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the Company's future revenues, earnings, margins, and other financial and operating information and data; the Company's outlook, prospects and expectations for revenues, net income, and E.P.S. results and growth generally, and related to the events described herein; the anticipated results of the Company's products, services, and technologies; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, those risks, uncertainties and other factors identified from time to time in the Company's most recent Annual Report on Form 10-K, as well as in subsequent filings with the Securities and Exchange Commission, including reports on Forms 10-Q and 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
Source: PowerSecure International, Inc.
POWR.. $9.65... $15 Million of New Awards
PowerSecure Announces $15 Million of New Awards for Interactive Distributed Generation Systems and Utility Infrastructure Projects
Business Wire - May 06 at 16:17
Company Symbols: NASDAQ-NMS:POWR
WAKE FOREST, N.C.--(BUSINESS WIRE)-- PowerSecure International, Inc. (Nasdaq: POWR) today announced it has been awarded $15 million of new orders for Interactive Distributed Generation(R) (IDG(R)) smart grid power systems and utility infrastructure projects. The IDG systems will be deployed in partnership with utilities to support manufacturers, hospitals, and municipal facilities across the country, including large installations in Colorado, Oklahoma, and Georgia. These IDG systems will be electronically controlled by PowerSecure's smart grid monitoring center, ensuring utilities and customers receive more efficient power during peak electricity demand, and standby power is ready to support customers' operations around-the-clock. The new utility infrastructure awards include projects for electric cooperatives and investor-owned utilities to help them with their efforts to upgrade and improve the efficiency of their electric grids.
This $15 million of new business is included in the Company's revenue backlog of $117 million that was announced separately in today's first quarter 2010 earnings release. The new business includes $12 million for the Company's Interactive Distributed Generation systems, and $3 million for utility infrastructure projects. The $12 million of Distributed Generation business includes $9 million of project-based business and $3 million of recurring revenue contracts. The project-based distributed generation business and the utility infrastructure business is expected to be completed, and revenue recognized, primarily during the last three quarters of 2010. The distributed generation systems for the recurring revenue contracts are also expected to be installed during the last three quarters of 2010, with associated revenues recognized over the life of the contracts ranging from 10-15 years.
Sidney Hinton, CEO of PowerSecure, said, "We are very pleased to announce another group of new business awards, including awards for our distributed generation systems and utility infrastructure projects. Our utility relationships and customer base continues to expand, as this announcement includes our first significant utility infrastructure work in Pennsylvania, and our first IDG project in Colorado. Additionally, we continue to be pleased with our growing base of recurring revenues in our distributed generation business. We are committed to exceeding the expectations of our utility partners and customers, and look forward to delivering them products and services that deliver strong returns on their investments."
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers, as well as Energy Services to the oil and natural gas industry. PowerSecure's Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company's Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting product that saves grocery, drug, and convenience stores 70% off the cost to operate traditional fluorescent lighting in their refrigerated cases. The Company is a pioneer in developing Interactive Distributed Generation(R) systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast peak electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power, 2) provide utilities with dedicated electric power generation assets for their demand response needs, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with utility infrastructure products and services, including transmission and distribution construction and maintenance, engineering and design services, and regulatory consulting. The Company provides Energy Services to the oil and natural gas industry through its Southern Flow and WaterSecure business units. Additional information is available at www.powersecure.com.
All forward-looking statements contained in this release are made within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the outlook for the businesses discussed in this press release and the Company's future revenues, earnings, margins, and other financial and operating information and data; the Company's outlook, prospects and expectations for revenues, net income, and E.P.S. results and growth generally, and related to the events described herein; the anticipated results of the Company's products, services, and technologies; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, those risks, uncertainties and other factors identified from time to time in the Company's most recent Annual Report on Form 10-K, as well as in subsequent filings with the Securities and Exchange Commission, including reports on Forms 10-Q and 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
Source: PowerSecure International, Inc.
Copyright Business Wire 2010
POWR.. $9.65 PowerSecure Reports First Quarter Results
PowerSecure Reports First Quarter Results
Business Wire - May 06 at 16:15
Company Symbols: NASDAQ-NMS:POWR
Company Posts Strong First Quarter E.P.S. of $0.07, Driven by a 25% Increase in Revenue and a 63% Increase in Gross Margin
WAKE FOREST, N.C.--(BUSINESS WIRE)-- PowerSecure International, Inc. (Nasdaq: POWR) today reported strong revenue and profit results for its first quarter of 2010. First quarter revenues were $24.7 million, increasing 25.1% compared to $19.7 million in the first quarter of 2009, and diluted earnings per share ("E.P.S.") were $0.07, a substantial improvement over a loss of $0.07 in the first quarter of 2009. Additionally, the Company's first quarter 2010 gross margin was 38.9%, 9.1 percentage points higher than the first quarter of 2009, and an all-time high for any quarter in the Company's history.
The major drivers of the Company's strong first quarter year-over-year revenue and profit increases were an increase in its Energy Efficiency business revenues of 94%, which was a result of a 104% increase in its EfficientLights LED lighting product revenues, as well as increases in the Company's Interactive Distributed Generation business revenues of 42%. These increases were partially offset by a modest decrease in its Southern Flow business revenues of 6%. The Company's record first quarter gross margin of 38.9% represents its fourth consecutive quarter of sequential and year-over-year increases in this statistic. The gross margin gains were driven by a combination of a favorable mix of projects period-to-period, and favorable cost of sales resulting from a focus on project cost management.
Sidney Hinton, CEO of PowerSecure, said, "We are very pleased with our strong start to 2010 - both in terms of our first quarter financial results, and the pace of our new business awards. The PowerSecure team delivered terrific top and bottom-line results for the first quarter, growing revenues by 25% and delivering record high gross margin. This, combined with the substantial amounts of new business we have been awarded so far in the first half of the year, continues to put us in a great position for 2010. We continue to see signs that economic recovery is underway and business investment is increasing - as the premium businesses placed on cash reserves in 2009 is now being balanced by the need to make productive capital investments to drive future growth and profitability."
Mr. Hinton continued, "As the economy begins to recover, we are very excited about the strategic positions of each of our businesses, and their growth opportunities and promise. We have a terrific foundation set for 2010, and we are focused on executing with excellence to deliver strong value to our utility partners and business customers."
For the first quarter of 2010, the Company's Energy and Smart Grid Solutions segment revenues were $20.5 million, increasing $5.2 million, or 34.5% compared to the first quarter of 2009. This segment includes the strategic business areas of Interactive Distributed Generation, Energy Efficiency, and Utility Infrastructure. These three business areas realized the following revenue variances in the first quarter of 2010 as compared to the first quarter of 2009:
1) Interactive Distributed Generation: First quarter 2010 Interactive Distributed Generation (IDG) revenues increased 42% compared to the first quarter of 2009. This increase was driven by a 106% increase in the Company's project-based sales of IDG systems, and a 50% increase in recurring revenues from IDG systems, partially offset by a 46% decrease in switchgear revenues.
2) Energy Efficiency: First quarter 2010 Energy Efficiency revenues increased 94% compared to the first quarter of 2009. This was driven by 104% year-over-year growth in the Company's EfficientLights LED lighting product, partially offset by a modest decrease in the Company's EnergyLite lighting efficiency projects.
3) Utility Infrastructure: First quarter 2010 Utility Infrastructure revenues decreased 1% compared to the first quarter of 2009. This was driven by a 105% year-over-year increase in Utility Services revenues, offset by lower revenues from large infrastructure projects which were in process during the first quarter of 2009 but which are complete or nearing completion as of the end of this first quarter of 2010.
For the first quarter of 2010, the Company's Energy Services segment realized a 6.5% year-over-year decrease in revenues from its Southern Flow business, reflecting the negative impacts of lower natural gas prices and lower industry production and investment. However, on a sequential basis, Southern Flow revenues increased 5.3% from the fourth quarter of 2009, as these industry factors have generally stabilized over the last several months. The Company's WaterSecure business contributed income of $1.2 million, up 103% on a year-over-year basis, and up 18.6% on a sequential basis compared to the fourth quarter of 2009. The Company's WaterSecure results were positively impacted by increases in oil prices, and the recent stabilization of conditions in the natural gas markets.
First quarter 2010 operating expenses were $9.0 million, up 22% on a year-over-year basis compared to the first quarter of 2009, and down 4% on a sequential basis compared to the fourth quarter of 2009. The year-over-year increases were primarily due to investments in operating infrastructure, including personnel, vehicles and facilities, to support business growth and new product development activities; increases in compensation expense; increases in selling expense due to higher revenue; and increases in depreciation from capital deployed to support the Company's growing recurring revenue business.
The Company's first quarter ending cash balance was $16.6 million, and its $50 million revolving credit facility was undrawn.
Separately, the Company made two announcements today. The first announcement was that the Company has received $15 million of new business awards, including $12 million of Interactive Distributed Generation business, and $3 million of Utility Infrastructure business. The second announcement was that on April 30, 2010 the Company completed its planned transaction to purchase the remaining one-third minority interest in its EfficientLights LED lighting business. The Company issued 1,025,641 shares of its common stock in exchange for this remaining one-third interest, bringing its ownership interest in EfficientLights to 100%. In conjunction with this transaction, and the Company's recently announced Innovative Electronic Solutions Lighting, LLC ("IES") LED lighting business acquisition, the Company also today announced that it has filed shelf registrations with the SEC on Forms S-3 and S-4.
As of the date of this press release, the Company's revenue backlog expected to be recognized after March 31, 2010 is $117 million. This includes revenue included in the new business announcement made today, and compares to $120 million of revenue backlog reported with the Company's fourth quarter earnings release (issued on March 11, 2010). The Company's revenue backlog and the estimated timing of revenue recognition is outlined below, including "project-based revenues" expected to be recognized as projects are completed, and "recurring revenues" expected to be recognized over the life of the contracts:
Revenue Backlog to be recognized after March 31,
2010
Anticipated Estimated Primary
Description Revenue Recognition Period
Project-based Revenue -- Near term $52 Million 2Q10 through 4Q10
Project-based Revenue -- Long term $13 Million 1Q11 through 2Q12
Recurring Revenue $52 Million 2Q10 through 2019
Revenue Backlog to be recognized after March 31, $117 Million
2010
Note: Anticipated revenue and estimated primary recognition periods are subject
to risks and uncertainties as indicated in the Company's safe harbor statement,
below. Consistent with past practice, these figures are not intended to
constitute the Company's total revenue over the indicated time periods, as the
Company has additional, regular on-going revenues. Examples of additional,
regular recurring revenues include revenues from the Company's Southern Flow
business, engineering fees, and service revenue, among others. Numbers may not
add due to rounding.
The Company will host a conference call commencing today at 5:30 p.m. eastern time to discuss its first quarter 2010 results, business operations, strategic initiatives and prospects for the future. The conference call will be webcast live and can be accessed from the Investor Relations section of the Company's website at www.powersecure.com. Participants can also access the call by dialing 888-680-0892 (or 617-213-4858 if dialing internationally), and providing pass code 45073432. If you are unable to participate during the live webcast, a replay of the conference call will be available beginning today at 8:30 p.m. eastern time through midnight on June 3, 2010. To listen to the replay, dial toll-free 888-286-8010 (or 617-801-6888 if dialing internationally), and enter pass code 40796029. In addition, the webcast will be archived on the Company's website at www.powersecure.com.
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers, as well as Energy Services to the oil and natural gas industry. PowerSecure's Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company's Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting product that saves grocery, drug, and convenience stores 70% off the cost to operate traditional fluorescent lighting in their refrigerated cases. The Company is a pioneer in developing Interactive Distributed Generation(R) systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast peak electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power, 2) provide utilities with dedicated electric power generation assets for their demand response needs, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with regulatory consulting, power system and transmission engineering and construction. The Company provides Energy Services to the oil and natural gas industry through its Southern Flow and WaterSecure business units. Additional information is available at www.powersecure.com.
This press release contains forward-looking statements within the meaning of and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the outlook for the Company's future revenues, earnings, margins, cash resources and cash flow and other financial and operating information and data; the Company's future business operations, strategies and prospects; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, the recent downturn, disruption and volatility in the economy, financial markets and business markets and the effects thereof on the Company's markets and customers, the demand for its products and services, and the Company's access to capital; the size, timing and terms of sales and orders, including the Company's revenue backlog discussed in this press release, and the risk of customers delaying, deferring or canceling purchase orders or making smaller purchases than expected; the timely and successful development, production and market acceptance of new and enhanced products, services and technologies of the Company; the ability of the Company to obtain adequate supplies of key components and materials of sufficient reliability and quality for its products and technologies on a timely and cost-effective basis and the effects of related warranty claims and disputes; the ability of the Company to successfully expand its core distributed generation products and services, to successfully develop and achieve market acceptance of its new energy-related businesses, to successfully expand its recurring revenue projects, to manage its growth and to address the effects of any future changes in utility tariff structures and environmental requirements on its business solutions; the effects of competition; changes in customer and industry demand and preferences; the ability of the Company to continue the growth and diversification of its customer base; the ability of the Company to attract, retain, and motivate its executives and key personnel; changes in the energy industry in general and the electricity, oil, and natural gas markets in particular, including price levels; the effects of competition; the ability of the Company to secure and maintain key contracts and relationships; the effects of pending and future litigation, claims and disputes; and other risks, uncertainties and other factors identified from time to time in its reports filed with or furnished to the Securities and Exchange Commission, including the Company's most recent Annual Report on Form 10-K, as well as subsequently filed reports on Form 10-Q and Form 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
PowerSecure International, Inc.
Consolidated Statements of Operations (unaudited)
($000's except per share data)
Three Months Ended
March 31, March 31,
2010 2009
Revenue 24,674 19,720
Cost of sales 15,083 13,846
Gross Profit 9,591 5,874
Operating expenses
General and administrative 7,326 6,040
Selling, marketing, and service 1,053 831
Depreciation and amortization 657 542
Total operating expenses 9,036 7,413
Operating income (loss) 555 (1,539 )
Other income (expense)
Equity income 1,030 477
Management fees 154 105
Interest income and other income 32 53
Interest expense (141 ) (174 )
Income (loss) before income taxes 1,630 (1,078 )
Income tax benefit (provision) (226 ) (24 )
Net income (loss) 1,404 (1,102 )
Less: Net income attributable to noncontrolling interest 187 34
Net income (loss) attributable to PowerSecure 1,217 (1,136 )
International, Inc.
EARNINGS PER SHARE AMOUNTS ("E.P.S") ATTRIBUTABLE TO
POWERSECURE INTERNATIONAL, INC. SHAREHOLDERS:
Basic 0.07 (0.07 )
Diluted 0.07 (0.07 )
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic 17,237 17,095
Diluted 17,692 17,095
PowerSecure International, Inc.
Condensed Consolidated Balance Sheets (unaudited)
($000's)
March 31, March 31,
ASSETS 2010 2009
CURRENT ASSETS:
Cash and cash equivalents 16,613 20,169
Trade receivables, net of allowance for doubtful accounts 29,554 28,332
Inventories 26,007 21,632
Deferred income taxes 2,713 2,713
Prepaid expenses and other current assets 1,050 1,300
Total Current Assets 75,937 74,146
PROPERTY, PLANT, AND EQUIPMENT:
Equipment 23,328 22,252
Furniture and fixtures 668 671
Land, building, and improvements 4,813 4,802
Total property, plant, and equipment at cost 28,809 27,725
Less accumulated depreciation and amortization 5,909 5,413
Property, plant, and equipment, net 22,900 22,312
OTHER ASSETS:
Goodwill 7,256 7,256
Restricted annuity contract 2,242 2,220
Intangible rights and capitalized software, net of accum 1,498 1,320
amort
Investment in unconsolidated affiliate 4,177 3,974
Other assets 213 249
Total other assets 15,386 15,019
TOTAL ASSETS 114,223 111,477
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable 9,420 4,116
Accrued and other liabilities 16,926 20,379
Restructuring charges payable 77 325
Current income taxes payable 107 0
Current unrecognized tax benefit 327 327
Current portion of capital lease obligations 766 756
Total current liabilities 27,623 25,903
LONG-TERM LIABILITIES
Revolving Line of Credit 0 0
Capital lease obligations, net of current portion 4,250 4,445
Unrecognized tax benefit 1,169 1,169
Deferred Compensation 804 721
Total long-term liabilites 6,223 6,335
STOCKHOLDERS' EQUITY
Preferred stock - undesignated 0 0
Preferred stock - Series C 0 0
Common stock 172 172
Additional paid-in-capital 111,243 110,911
Accumulated deficit (31,734 ) (32,951 )
Total PowerSecure International, Inc. stockholders' equity 79,681 78,132
Noncontrolling Interest 696 1,107
Total stockholders' equity 80,377 79,239
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 114,223 111,477
PowerSecure International, Inc.
Condensed Consolidated Statement of Cash Flows (unaudited)
($000's)
Three Months Ended
March 31, March 31,
2010 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) 1,404 (1,102 )
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Depreciation and amortization 657 542
Stock compensation expense 494 354
Noncontrolling interest - distribution to minority member (598 ) 0
Loss on disposal of miscellaneous assets 0 26
Equity in income of unconsolidated affiliate (1,030 ) (477 )
Distributions from unconsolidated affiliate 809 607
Changes in operating assets and liabilities, net of effect
of acquisitions:
Trade receivables, net (1,222 ) 4,855
Inventories (4,375 ) (820 )
Other current assets and liabilities 357 606
Other noncurrent assets 35 (11 )
Accounts payable 5,304 (2,059 )
Restructuring charges (248 ) (499 )
Accrued and other liabilities (3,453 ) (2,583 )
Deferred compensation obligation 83 83
Restricted annuity contract (22 ) (21 )
Net cash provided by (used in) operating activities (1,805 ) (499 )
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, plant and equipment (1,129 ) (582 )
Additions to intangible rights and software development (286 ) (72 )
Acquisitions, net of cash acquired 0 0
Proceeds from sale of property, plant and equipment 11 6
Net cash provided by (used in) investing activities (1,404 ) (648 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings (payments) on revolving line of credit 0 0
Proceeds from sale-leaseback transactions 0 0
Payments on capital lease obligations (185 ) (175 )
Proceeds from stock option and warrant exercises, net of (162 ) (41 )
shares tendered
Net cash provided by (used in) financing activities (347 ) (216 )
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (3,556 ) (1,363 )
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 20,169 24,316
CASH AND CASH EQUIVALENTS AT END OF PERIOD 16,613 22,953
Source: PowerSecure International, Inc.
Copyright Business Wire 2010
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POWR.. $.4.62 PowerSecure Reports Third Quarter Results
Growth Progression Continues, Revenues Increase 45% to a Record $38 Million, and Backlog Grows to $149 Million
WAKE FOREST, N.C.--(BUSINESS WIRE)--
PowerSecure International, Inc. (Nasdaq: POWR) today reported its third quarter 2011 results, including record revenue of $38.2 million which increased 45% on a year-over-year basis compared to the third quarter of 2010, and increased 27% on a sequential basis compared to the second quarter of 2011. Third quarter 2011 diluted earnings per share ("E.P.S.") were $0.05, which compares on a year-over-year basis to $0.03 in the third quarter of 2010, and on a sequential basis to $0.90 of GAAP E.P.S. and $0.00 of Non-GAAP E.P.S. in the second quarter of 2011. The Company's Non-GAAP E.P.S. for the second quarter of 2011 includes adjustments to GAAP E.P.S. to exclude the gain on the sale of its non-core WaterSecure business and charges related to the exit of its PowerPackages business (see Non-GAAP reconciliation, below). Third quarter 2011 diluted E.P.S. from continuing operations were $0.05, which compares on a year-over-year basis to ($0.01) in the third quarter of 2010, and on a sequential basis to $0.90 of GAAP E.P.S. and $0.00 of Non-GAAP E.P.S. in the second quarter of 2011.
The Company's record third quarter revenue of $38.2 million continues the consistent growth progression demonstrated throughout 2011, with revenue increases across business lines driven by the expansion of its base of utility partners, a growing customer roster, and the introduction and sales of new products and services:
($ in 000's) 4Q10 1Q11 2Q11 3Q11
Revenue by Product/Service
Distributed Generation 10,254 11,202 12,856 19,999
Utility Infrastructure 6,785 7,578 11,510 13,300
Energy Efficiency 3,966 4,933 5,851 4,930
Total Revenue 21,005 23,713 30,217 38,229
The Company also announced that an additional $14 million of new business has been added to its revenue backlog from new business received in late-October. This new business is in addition to the $15 million of new awards announced on October 11, 2011. As a result, the Company's revenue backlog stands at $149 million, representing revenue expected to be recognized after September 30, 2011, for periods including the fourth quarter of 2011 onward. This backlog figure compares to $147 million of revenue backlog announced in conjunction with the Company's second quarter earnings release issued on August 4, 2011.
Sidney Hinton, CEO of PowerSecure, said, "2011 is a very gratifying year for the PowerSecure team, as our growth initiatives have accelerated our top-line growth, and we are realizing the positive bottom-line impact of these revenue increases as the year unfolds. We are building a business platform with increasing diversity in areas where we can utilize our core competencies to serve a growing list of utility partners and customers with products and services that have significant long-term potential. We are building a strong foundation to achieve our mid-range goal of $300 million in revenue and double-digit operating margins by 2015. Importantly, we are achieving our near-term results while at the same time succeeding in our long-term strategic objectives of growing our product lines and growing our Distributed Generation recurring revenue business, which posted another record quarter. Our growth strategies are working, and we are pleased with the progress we are making toward unlocking our revenue and profit potential."
The Company's $11.9 million, or 45.3% year-over-year quarterly revenue increase, was driven by an increase in Distributed Generation revenues of $6.3 million, or 46.1%, as well as an increase in Utility Infrastructure revenues of $7.2 million, or 118.1%, partially offset by a decrease in Energy Efficiency revenues of $1.6 million, or 24.5%. On a sequential basis, compared to the second quarter of 2011, the Company's $8.0 million , or 26.5% revenue increase was driven by an increase in Distributed Generation revenues of $7.1 million, or 55.6%, and an increase in Utility Infrastructure revenues of $1.8 million, or 15.6%, partially offset by a decrease in Energy Efficiency revenues of $0.9 million, or 15.7%.
The Company's third quarter gross margin as a percentage of revenue was 30.5% compared to 32.6% in the third quarter of 2010 and 25.4% in the second quarter of 2011. The lower year-over-year gross margins were driven by approximately $0.8 million, or 2.0 percentage points, of additional fuel costs incurred from the extensive operation during the months of July and August of a PowerSecure-owned distributed generation system which serves a Midwest utility, due to record Summer heat causing high demand on the utility system. Excluding this incremental fuel cost, the Company's third quarter gross margin was 32.5%. Additionally, period-to-period gross margins were affected, as they are each quarter, by the specific mix of projects completed in each period, and by the relative mix of higher-margin Distributed Generation revenues compared to lower-margin Utility Infrastructure service revenues in each period.
The Company's strong quarterly revenue and profit results were achieved while at the same time the platform of Company-owned recurring revenue Distributed Generation projects continued to build. The Company invested $3.8 million in capital to deploy systems under high margin long-term recurring revenue contracts, although these projects result in deferred current period revenue and profit recognition. Since the start of 2011, the Company has invested $11.4 million of capital to deploy these projects in support of its long-term growth and profit objectives. These investments have grown its recurring revenue business to record levels, with third quarter recurring revenue reaching $4.1 million, which would have been approximately $3.8 million excluding the incremental operation of the Distributed Generation system discussed above due to the extraordinary Summer heat. This adjusted figure is approximately double compared to the prior year's third quarter.
Operating expenses for the third quarter of 2011 were $11.3 million on a GAAP basis, and $10.8 million on a Non-GAAP basis after adjusting for $0.5 million of operating expenses related to the wind-down of the Company's PowerPackages business, which it is in the process of exiting (see Non-GAAP financial measures, below). This compares to $9.5 million in the third quarter of 2010. The year-over-year increase in operating expenses is due to "step-up investments" the Company has made to expand and grow each of its Interactive Distributed Generation, Utility Infrastructure, and Energy Efficiency businesses. These expenses support new product and customer development, engineering, personnel and equipment, as well as additional sales and marketing activities, and include increases in depreciation from capital expenditures for recurring revenue distributed generation systems.
During the third quarter of 2011 the Company also realized revenue of $1.6 million and gross margin of $0.4 million from the sale of inventory related to the wind-down of its PowerPackages business. These inventory sales, combined with $0.5 million of PowerPackages operating expenses discussed above, generated a pre-tax loss from PowerPackages exit activities of $0.1 million. In addition, the Company recognized a pre-tax gain of just under $0.1 million related to positive adjustments to the purchase price of the sale of its WaterSecure investment, which was completed in the second quarter. In accordance with GAAP, each of these items was recorded as a component of continuing operations during the third quarter. However, because these businesses have been sold or are in the process of being exited by the Company, Non-GAAP Pro-forma results of operations are provided below to adjust for this small WaterSecure gain on sale and PowerPackages wind-down loss (see Non-GAAP financial measures, below). Adjusting for these items, Non-GAAP diluted E.P.S. was $0.05 for the Company's third quarter, essentially the same as GAAP diluted E.P.S of $0.05.
The Company's $149 million revenue backlog and the estimated timing of revenue recognition are outlined below, including "project-based revenues" expected to be recognized as projects are completed, and "recurring revenues" expected to be recognized over the life of the contracts:
Revenue Backlog expected to be recognized after September 30, 2011
Anticipated Estimated Primary
Description Revenue Recognition Period
Project-based Revenue -- Near term $59 Million 4Q11 through 2Q12
Project-based Revenue -- Long term $21 Million 3Q12 through 2013
Recurring Revenue $69 Million 4Q11 through 2019
Revenue Backlog expected to be recognized after September 30, 2011 $149 Million
Note: Anticipated revenue and estimated primary recognition periods are subject to risks and uncertainties
as indicated in the Company's safe harbor statement, below. Consistent with past practice, these figures
are not intended to constitute the Company's total revenue over the indicated time periods, as the Company
has additional, regular on-going revenues. Examples of additional, regular recurring revenues include
revenues from the engineering fees, and service revenue, among others. Numbers may not add due to rounding.
Orders in the Company's revenue backlog are subject to delay, deferral, acceleration, resizing, or cancellation from time to time. Given the irregular sales cycle of customer orders, and especially of large orders, the revenue backlog at any given time is not necessarily an accurate indication of our future revenues.
The Company will host a conference call commencing today at 5:30 p.m. eastern time to discuss its third quarter 2011 results, business operations, strategic initiatives and prospects for the future. The conference call will be webcast live and can be accessed from the Investor Relations section of the Company's website at www.powersecure.com. Participants can also access the call by dialing 888-679-8034 (or 617-213-4847 if dialing internationally), and providing pass code 33260174. If you are unable to participate during the live webcast, a replay of the conference call will be available beginning today at 8:30 p.m. eastern time through midnight on December 1, 2011. To listen to the replay, dial toll-free 888-286-8010 (or 617-801-6888 if dialing internationally), and enter pass code 53518420. In addition, the webcast will be archived on the Company's website at www.powersecure.com.
About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers. PowerSecure's Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company is a pioneer in developing Interactive Distributed Generation® systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power at peak power times, 2) provide utilities with dedicated electric power generation capacity to utilize for demand response purposes, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with transmission and distribution infrastructure construction and maintenance services, and engineering and regulatory consulting services. The Company's Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting products for grocery, drug, and convenience stores, and its SecureLiteTM and PowerLiteTM street lights for utilities and municipalities which are available through its EnergyLite business unit. Additional information is available at www.powersecure.com.
This press release contains forward-looking statements within the meaning of and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the outlook for the Company's future revenues, earnings, margins, cash resources and cash flow and other financial and operating information and data; the Company's future business operations, strategies and prospects; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, the on-going downturn, disruption and volatility in the economy, financial markets and business markets and the effects thereof on the Company's markets and customers, the demand for its products and services, and the Company's access to capital; the size, timing and terms of sales and orders, including the Company's revenue backlog discussed in this press release, and the risk of customers delaying, deferring or canceling purchase orders or making smaller purchases than expected; the effects of the sale of Southern Flow business and WaterSecure investment and the Company's strategy of monetizing its non-core businesses on the Company's financial condition and results of operations; the effects of exiting the Company's PowerPackages business, including current and future charges related to the exit plan, and timing of the completion of the exit and wind-down activities; the timely and successful development, production and market acceptance of new and enhanced products, services and technologies of the Company; the ability of the Company to obtain adequate supplies of key components and materials of sufficient reliability and quality for its products and technologies on a timely and cost-effective basis and the effects of related warranty claims and disputes; the ability of the Company to successfully expand its core distributed generation products and services, to successfully develop and achieve market acceptance of its new energy-related businesses, to successfully expand its recurring revenue projects, to manage its growth and to address the effects of any future changes in utility tariff structures and environmental requirements on its business solutions; the effects of competition; changes in customer and industry demand and preferences; the ability of the Company to continue the growth and diversification of its customer base; the ability of the Company to attract, retain, and motivate its executives and key personnel; changes in the energy industry in general and the electricity, oil, and natural gas markets in particular, including price levels; the effects of competition; the ability of the Company to secure and maintain key contracts and relationships; the effects of pending and future litigation, claims and disputes; and other risks, uncertainties and other factors identified from time to time in its reports filed with or furnished to the Securities and Exchange Commission, including the Company's most recent Annual Report on Form 10-K, as well as subsequently filed reports on Form 10-Q and Form 8-K. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
PowerSecure International, Inc.
Consolidated Statements of Operations (unaudited)
($000's except per share data)
Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,
2011 2010 2011 2010
Revenue 38,229 26,316 92,159 76,509
Cost of sales 26,582 17,747 65,183 50,098
Gross Profit 11,647 8,569 26,976 26,411
Operating expenses
General and administrative 9,168 7,388 25,596 21,176
Selling, marketing, and service 1,279 1,383 3,657 3,777
Depreciation and amortization 858 756 2,499 2,011
Total operating expenses 11,305 9,527 31,752 26,964
Operating income (loss) 342 (958) (4,776) (553)
Other income (expense)
Gain on sale of unconsolidated affiliate 44 0 21,830 0
Equity income from unconsolidated affiliate 0 598 1,559 2,435
Management fees from unconsolidated affiliate 0 136 282 432
Interest income and other income 31 24 73 77
Interest expense (168) (177) (454) (457)
Income (loss) before income taxes 249 (377) 18,514 1,934
Income tax benefit (provision) 493 (42) (1,763) (475)
Net income (loss) from continuing operations 742 (419) 16,751 1,459
Discontinued operations - income from operations (net of tax) 0 777 0 1,587
Discontinued operations - gain on sale (net of tax) 0 0 5,636 0
Net income (loss) 742 358 22,387 3,046
Net income attributable to noncontrolling interest 230 132 573 (15)
Net income (loss) attributable to PowerSecure International, Inc. 972 490 22,960 3,031
Summary of Amounts Attributable to PowerSecure International, Inc. shareholders
Income from continuing operations (net of tax) 972 (287) 17,324 1,444
Income from discontinued operations (net of tax) 0 777 5,636 1,587
Net income (loss) attributable to PowerSecure
International, Inc.
972 490 22,960 3,031
EARNINGS PER SHARE AMOUNTS ("E.P.S") ATTRIBUTABLE TO
POWERSECURE INTERNATIONAL, INC. SHAREHOLDERS:
Continuing Operations
Basic 0.05 (0.01) 0.92 0.08
Diluted 0.05 (0.01) 0.91 0.08
Discontinued Operations
Basic 0.00 0.04 0.30 0.09
Diluted 0.00 0.04 0.29 0.08
Net Income
Basic 0.05 0.03 1.22 0.17
Diluted 0.05 0.03 1.20 0.16
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic 18,966 18,640 18,848 17,942
Diluted 19,163 18,640 19,122 18,447
PowerSecure International, Inc.
Condensed Consolidated Balance Sheets (unaudited)
($000's)
September 30, December 31,
ASSETS 2011 2010
CURRENT ASSETS:
Cash and cash equivalents 32,692 8,202
Trade receivables, net of allowance for doubtful accounts 47,322 29,290
Assets of discontinued operations held for sale 0 12,183
Inventories 24,441 25,011
Current deferred income taxes 1,667 1,731
Prepaid expenses and other current assets 658 933
Total Current Assets 106,780 77,350
PROPERTY, PLANT, AND EQUIPMENT:
Equipment 35,660 24,946
Furniture and fixtures 281 280
Land, building, and improvements 5,874 5,720
Total property, plant, and equipment at cost 41,815 30,946
Less accumulated depreciation and amortization 7,485 5,899
Property, plant, and equipment, net 34,330 25,047
OTHER ASSETS:
Goodwill 7,970 7,970
Deferred income taxes, net of current portion 154 1,244
Restricted annuity contract 2,358 2,306
Intangible rights and capitalized software, net of accum amort 1,768 1,942
Investment in unconsolidated affiliate 195 4,346
Other assets 273 324
Total other assets 12,718 18,132
TOTAL ASSETS 153,828 120,529
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable 8,549 8,438
Accrued and other liabilities 16,629 10,986
Liabilities of discontinued operations held for sale 0 1,411
Current income taxes payable 395 251
Current unrecognized tax benefit 287 954
Current portion of capital lease obligations 828 796
Total current liabilities
26,688 22,836
LONG-TERM LIABILITIES
Revolving Line of Credit 10,000 5,000
Capital lease obligations, net of current portion 3,022 3,647
Unrecognized tax benefit 731 749
Other long-term liabilities 2,236 1,053
Total long-term liabilities 15,989 10,449
STOCKHOLDERS' EQUITY
Preferred stock - undesignated
0 0
Preferred stock - Series C 0 0
Common stock 190 187
Additional paid-in-capital 116,308 114,791
Accumulated deficit (6,529) (29,489)
Total PowerSecure International, Inc. stockholders' equity 109,969 85,489
Noncontrolling Interest 1,182 1,755
Total stockholders' equity 111,151 87,244
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 153,828 120,529
PowerSecure International, Inc.
Condensed Consolidated Statement of Cash Flows (unaudited)
($000's)
Nine Months Ended
September 30, September 30,
2011 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) 22,387 3,046
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
Gain on sale of unconsolidated affiliate (21,830) 0
Income from discontinued operations (5,636) (1,587)
Depreciation and amortization 2,499 2,011
Stock compensation expense 1,376 1,270
Distributions to noncontrolling interest shareholder 0 (877)
Loss on writedown or disposal of equipment 420 29
Deferred income taxes 1,154 0
Equity in income of unconsolidated affiliate (1,559) (2,435)
Distributions from unconsolidated affiliate 1,537 2,225
Changes in operating assets and liabilities, net of
effect of acquisitions:
Trade receivables, net (18,032) (5,927)
Inventories 570 (2,249)
Other current assets and liabilities (248) 402
Other noncurrent assets and liabilities 1,163 429
Accounts payable 111 169
Restructuring charges 0 (325)
Accrued and other liabilities 5,537 (2,938)
Net cash provided by (used in) continuing operations (10,551) (6,757)
Net cash provided by (used in) discontinued operations 0 1,808
Net cash provided by (used in) operating activities (10,551) (4,949)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, plant and equipment (13,743) (3,695)
Additions to intangible rights and software development (365) (518)
Acquisitions 0 (4,413)
Proceeds from sale of property, plant and equipment 12 21
Proceeds from sale of unconsolidated affiliate 25,974 0
Proceeds from sale of discontinued operations 16,515 0
Discontinued operations investing activities 0 (147)
Net cash provided by (used in) investing activities 28,393 (8,752)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings (payments) on revolving line of credit 5,000 7,500
Proceeds from sale-leaseback transactions 2,097 0
Payments on capital lease obligations (593) (563)
Proceeds from stock option and warrant exercises, net of shares tendered 144 1,263
Net cash provided by (used in) financing activities 6,648 8,200
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 24,490 (5,501)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 8,202 20,169
CASH AND CASH EQUIVALENTS AT END OF PERIOD 32,692 14,668
PowerSecure International, Inc.
Non-GAAP Pro-forma Financial Measures - 3Q11
Results of Operations Excluding PowerPackages Business Exit and WaterSecure Gain
Adjustments for PowerPackages Exit Activities
and WaterSecure Gain on Sale
As Reported
3Q11
WaterSecure
Gain on Sale
PowerPackages
Exit Activities
Pro-forma
3Q11
Revenue 38,229 (1,645) 36,584
Cost of sales 26,582 (1,210) 25,372
Gross Profit 11,647 0 (435) 11,212
Gross Profit % Revenue 30.5% 30.6%
Operating expenses
General and administrative 9,168 (376) 8,792
Selling, marketing, and service 1,279 (161) 1,118
Depreciation and amortization 858 858
Total operating expenses 11,305 0 (537) 10,768
Operating income (loss) 342 0 102 444
Other income (expense)
Gain on sale of unconsolidated affiliate 44 (44) 0
Equity income from unconsolidated affiliate 0 0
Management fees from unconsolidated affiliate 0 0
Interest income and other income 31 31
Interest expense (168) (168)
Income (loss) before income taxes 249 (44) 102 307
Income tax benefit (provision) 493 17 (38) 471
Net income (loss) from continuing operations 742 (28) 64 778
Discontinued operations - income from operations (net of tax) 0 0 0 0
Discontinued operations - gain on sale (net of tax) 0 0 0 0
Net income (loss) 742 (28) 64 778
Net income attributable to noncontrolling interest 230 230
Net income (loss) attributable to PowerSecure International, Inc. 972 (28) 64 1,008
Summary of Amounts Attributable to PowerSecure International, Inc. shareholders
Income from continuing operations (net of tax) 972 (28) 64 1,008
Income from discontinued operations (net of tax) 0 0 0 0
Net income (loss) attributable to PowerSecure International, Inc. 972 (28) 64 1,008
EARNINGS PER SHARE AMOUNTS ("E.P.S") ATTRIBUTABLE TO
POWERSECURE INTERNATIONAL, INC. SHAREHOLDERS:
Continuing Operations
Basic 0.05 0.00 0.00 0.05
Diluted 0.05 0.00 0.00 0.05
Discontinued Operations
Basic 0.00 0.00 0.00 0.00
Diluted 0.00 0.00 0.00 0.00
Net Income
Basic 0.05 0.00 0.00 0.05
Diluted 0.05 0.00 0.00 0.05
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic 18,966 18,966 18,966 18,966
Diluted 19,163 19,163 19,163 19,163
PowerSecure International, Inc.
Non-GAAP Pro-forma Financial Measures -- 2Q11
Results of Operations Excluding WaterSecure Gain on Sale and PowerPackages Exit Plan Charges
Adjustments for WaterSecure Gain on Sale,
and PowerPackages Exit Plan Charges
As Reported
2Q11
WaterSecure
Gain on Sale
PowerPackages
Charges
Pro-forma
2Q11
Revenue 30,217 30,217
Cost of sales 22,547 (1,692) 20,855
Gross Profit 7,670 0 1,692 9,362
Gross Profit % Revenue 25.4% 31.0%
Operating expenses
General and administrative 8,509 (383) 8,126
Selling, marketing, and service 1,220 1,220
Depreciation and amortization 835 835
Total operating expenses 10,564 0 (383) 10,181
Operating income (loss) (2,894) 0 2,075 (819)
Other income (expense)
Gain on sale of unconsolidated affiliate 21,786 (21,786) 0
Equity income from unconsolidated affiliate 548 548
Management fees from unconsolidated affiliate 114 114
Interest income and other income 22 22
Interest expense (144) (144)
Income (loss) before income taxes 19,432 (21,786) 2,075 (279)
Income tax benefit (provision) (2,339) 2,622 (250) 34
Net income (loss) from continuing operations 17,093 (19,164) 1,825 (245)
Discontinued operations - income from operations (net of tax) 0 0 0 0
Discontinued operations - gain on sale (net of tax) 0 0 0 0
Net income (loss) 17,093 (19,164) 1,825 (245)
Net income attributable to noncontrolling interest 159 159
Net income (loss) attributable to PowerSecure International, Inc. 17,252 (19,164) 1,825 (86)
Summary of Amounts Attributable to PowerSecure International, Inc. shareholders
Income from continuing operations (net of tax) 17,252 (19,164) 1,825 (86)
Income from discontinued operations (net of tax) 0 0 0 0
Net income (loss) attributable to PowerSecure International, Inc. 17,252 (19,164) 1,825 (86)
EARNINGS PER SHARE AMOUNTS ("E.P.S") ATTRIBUTABLE
TO
POWERSECURE INTERNATIONAL, INC. SHAREHOLDERS:
Continuing Operations
Basic 0.91 (1.02) 0.10 0.00
Diluted 0.90 (1.00) 0.10 0.00
Discontinued Operations
Basic 0.00 0.00 0.00 0.00
Diluted 0.00 0.00 0.00 0.00
Net Income
Basic 0.91 (1.02) 0.10 0.00
Diluted 0.90 (1.00) 0.10 0.00
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic 18,857 18,857 18,857 18,857
Diluted 19,146 19,146 19,146 19,146
Non-GAAP Pro-forma Financial Measures:
Our references to our third quarter 2011 "Non-GAAP Pro-forma" financial measures of revenue, gross profit, gross margin as a percentage of revenue, operating expenses, operating income, net income from continuing operations, net income, net income attributable to PowerSecure International, Inc., diluted E.P.S. from continuing operations, diluted E.P.S. from discontinued operations, and diluted E.P.S. discussed and shown above constitute non-GAAP financial measures. They refer to our GAAP results, adjusted to show the results 1) without the gain on the sale of our WaterSecure investment (identified in our financial statements as our unconsolidated affiliate), with the third quarter 2011 amount representing a small positive adjustment from the gain on the sale which was announced and recorded in the Company's second quarter of 2011, and 2) without the wind-down activity and charges related to the plan to exit our PowerPackages business, which was announced and initiated in the Company's second quarter of 2011. For each of these two items we are utilizing a 37.5% effective tax rate to calculate their impact on net income.
Our references to our second quarter 2011 "Non-GAAP Pro-forma" financial measures of revenue, gross profit, gross margin as a percentage of revenue, operating expenses, operating income, net income from continuing operations, net income, net income attributable to PowerSecure International, Inc., diluted E.P.S. from continuing operations, diluted E.P.S. from discontinued operations, and diluted E.P.S. discussed and shown above constitute non-GAAP financial measures. They refer to our GAAP results, adjusted to show our results 1) without the gain on the sale of the WaterSecure investment (identified in our financial statements as our unconsolidated affiliate), 2) without the charges related to the write-down of assets in conjunction with our plan to exit our PowerPackages business, and 3) after allocating the tax expense incurred in our second quarter to each of the elements of our Non-GAAP Pro-forma reconciliation utilizing the second quarter of 2011's effective tax rate, reflecting that virtually all of our tax net operating loss carry forwards ("NOL's") will be utilized as a result of the gain on the sale of our WaterSecure business.
We believe providing non-GAAP measures which show our pro-forma results with these items adjusted is valuable and useful as it allows our management and our board of directors to measure, monitor and evaluate our second and third quarter 2011 operating performance with the same consistent financial context as the business was managed and evaluated throughout the 2011 fiscal year. Additionally, because our WaterSecure business was sold in June, 2011, and our PowerPackages exit plan was also initiated in June, 2011, these Non-GAAP Pro-forma measures are not indicative of our current or future results.
We believe these Non-GAAP Pro-forma measures also provide meaningful information to investors in terms of enhancing their understanding of our second and third quarter 2011 operating performance and results, as they allow investors to more easily compare our financial performance on a consistent basis with the way it was reported and evaluated throughout 2011. These Non-GAAP Pro-forma measures also correspond with the way the majority of analysts' current financial estimates are calculated. Our Non-GAAP Pro-forma measures should be considered only as supplements to, and not as substitutes for or in isolation from, our other measures of financial information prepared in accordance with GAAP, such as GAAP revenue, operating income, net income from continuing operations, net income, net income attributable to PowerSecure International, Inc., diluted E.P.S. from continuing operations, diluted E.P.S. from discontinued operations, and diluted E.P.S.
PowerSecure International, Inc.
Chris Hutter, 919-453-1760
Chief Financial Officer
Source: PowerSecure International, Inc.
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June 30, | December 31, | |||||||
2011 | 2010 | |||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 36,148 | $ | 8,202 | ||||
Trade receivables, net of allowance for doubtful accounts of $302 and $415, respectively | 41,869 | 29,290 | ||||||
Assets of discontinued operations held for sale | - | 12,183 | ||||||
Inventories | 26,028 | 25,011 | ||||||
Current deferred income taxes | 1,667 | 1,731 | ||||||
Prepaid expenses and other current assets | 776 | 933 | ||||||
| ||||||||
| ||||||||
Total current assets | 106,488 | 77,350 | ||||||
| ||||||||
| ||||||||
Property, plant and equipment: | ||||||||
Equipment | 31,257 | 24,946 | ||||||
Furniture and fixtures | 280 | 280 | ||||||
Land, building and improvements | 5,627 | 5,720 | ||||||
| ||||||||
Total property, plant and equipment, at cost | 37,164 | 30,946 | ||||||
| ||||||||
Less accumulated depreciation and amortization | 6,857 | 5,899 | ||||||
| ||||||||
| ||||||||
Property, plant and equipment, net | 30,307 | 25,047 | ||||||
| ||||||||
| ||||||||
Other assets: | ||||||||
Goodwill | 7,970 | 7,970 | ||||||
Deferred income taxes, net of current portion | 154 | 1,244 | ||||||
Restricted annuity contract | 2,341 | 2,306 | ||||||
Intangible rights and capitalized software costs, net of accumulated amortization of $2,816 and $2,463, respectively | 1,853 | 1,942 | ||||||
Investment in unconsolidated affiliate | 1,445 | 4,346 | ||||||
Other assets | 287 | 324 | ||||||
| ||||||||
| ||||||||
Total other assets | 14,050 | 18,132 | ||||||
| ||||||||
| ||||||||
Total Assets | $ | 150,845 | $ | 120,529 | ||||
|
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June 30, | December 31, | |||||||
2011 | 2010 | |||||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 7,339 | $ | 8,438 | ||||
Accrued and other liabilities | 14,618 | 10,986 | ||||||
Liabilities of discontinued operations held for sale | - | 1,411 | ||||||
Current income taxes payable | 989 | 251 | ||||||
Current unrecognized tax benefit | 954 | 954 | ||||||
Current portion of capital lease obligations | 818 | 796 | ||||||
| ||||||||
| ||||||||
Total current liabilities | 24,718 | 22,836 | ||||||
| ||||||||
| ||||||||
Long-term liabilites: | ||||||||
Revolving line of credit | 10,000 | 5,000 | ||||||
Capital lease obligations, net of current portion | 3,233 | 3,647 | ||||||
Unrecognized tax benefit | 749 | 749 | ||||||
Other long-term liabilities | 2,182 | 1,053 | ||||||
| ||||||||
| ||||||||
Total long-term liabilities | 16,164 | 10,449 | ||||||
| ||||||||
| ||||||||
Commitments and contingencies (Notes 8 and 10) | - | - | ||||||
| ||||||||
Stockholders' Equity: | ||||||||
PowerSecure International stockholders' equity: | ||||||||
Preferred stock - undesignated, $.01 par value; 2,000,000 shares authorized; none issued and outstanding | - | - | ||||||
Preferred stock - Series C, $.01 par value; 500,000 shares authorized; none issued and outstanding | - | - | ||||||
Common stock, $.01 par value; 25,000,000 shares authorized; 18,966,529 and 18,701,614 shares issued and outstanding, respectively | 190 | 187 | ||||||
Additional paid-in-capital | 115,862 | 114,791 | ||||||
Accumulated deficit | (7,501 | ) | (29,489 | ) | ||||
| ||||||||
Total PowerSecure International, Inc. stockholders' equity | 108,551 | 85,489 | ||||||
Noncontrolling interest | 1,412 | 1,755 | ||||||
| ||||||||
| ||||||||
Total stockholders' equity | 109,963 | 87,244 | ||||||
| ||||||||
| ||||||||
Total Liabilities and Stockholders' Equity | $ | 150,845 | $ | 120,529 | ||||
|
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Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenues | $ | 30,217 | $ | 29,733 | $ | 53,930 | $ | 50,193 | ||||||||
Cost of sales | 22,547 | 20,000 | 38,601 | 32,351 | ||||||||||||
| ||||||||||||||||
| ||||||||||||||||
Gross profit | 7,670 | 9,733 | 15,329 | 17,842 | ||||||||||||
| ||||||||||||||||
| ||||||||||||||||
Operating expenses: | ||||||||||||||||
General and administrative | 8,509 | 7,326 | 16,428 | 13,788 | ||||||||||||
Selling, marketing and service | 1,220 | 1,348 | 2,378 | 2,394 | ||||||||||||
Depreciation and amortization | 835 | 671 | 1,641 | 1,255 | ||||||||||||
| ||||||||||||||||
| ||||||||||||||||
Total operating expenses | 10,564 | 9,345 | 20,447 | 17,437 | ||||||||||||
| ||||||||||||||||
| ||||||||||||||||
Operating income (loss) | (2,894 | ) | 388 | (5,118 | ) | 405 | ||||||||||
| ||||||||||||||||
Other income and (expenses): | ||||||||||||||||
Gain on sale of unconsolidated affiliate | 21,786 | - | 21,786 | - | ||||||||||||
Equity income from unconsolidated affiliate | 548 | 807 | 1,559 | 1,837 | ||||||||||||
Management fees | 114 | 142 | 282 | 296 | ||||||||||||
Interest income and other income | 22 | 23 | 42 | 53 | ||||||||||||
Interest expense | (144 | ) | (139 | ) | (286 | ) | (280 | ) | ||||||||
| ||||||||||||||||
| ||||||||||||||||
Income before income taxes | 19,432 | 1,221 | 18,265 | 2,311 | ||||||||||||
Income tax benefit (provision) | (2,339 | ) | (228 | ) | (2,256 | ) | (433 | ) | ||||||||
| ||||||||||||||||
| ||||||||||||||||
Income from continuing operations | 17,093 | 993 | 16,009 | 1,878 | ||||||||||||
| ||||||||||||||||
| ||||||||||||||||
Discontinued operations (Note 4): | ||||||||||||||||
Income from operations, net of tax | - | 291 | - | 810 | ||||||||||||
Gain on disposal, net of tax | - | - | 5,636 | - | ||||||||||||
| ||||||||||||||||
| ||||||||||||||||
Income from discontinued operations, net of tax | - | 291 | 5,636 | 810 | ||||||||||||
| ||||||||||||||||
| ||||||||||||||||
Net income | 17,093 | 1,284 | 21,645 | 2,688 | ||||||||||||
Less: Net (income) loss attributable to noncontrolling interest | 159 | 40 | 343 | (147 | ) | |||||||||||
| ||||||||||||||||
| ||||||||||||||||
Net income attributable to PowerSecure International, Inc. | $ | 17,252 | $ | 1,324 | $ | 21,988 | $ | 2,541 | ||||||||
| ||||||||||||||||
| ||||||||||||||||
Amounts attributable to PowerSecure International, Inc. common stockholders: | ||||||||||||||||
Income from continuing operations, net of tax | $ | 17,252 | $ | 1,033 | $ | 16,352 | $ | 1,731 | ||||||||
Income from discontinued operations, net of tax | - | 291 | 5,636 | 810 | ||||||||||||
| ||||||||||||||||
| ||||||||||||||||
Net income | $ | 17,252 | $ | 1,324 | $ | 21,988 | $ | 2,541 | ||||||||
| ||||||||||||||||
| ||||||||||||||||
Basic earnings per share attributable to | ||||||||||||||||
PowerSecure International, Inc. common stockholders: | ||||||||||||||||
Income from continuing operations | $ | 0.91 | $ | 0.06 | $ | 0.87 | $ | 0.10 | ||||||||
Income from discontinued operations | .00 | 0.01 | 0.30 | 0.04 | ||||||||||||
| ||||||||||||||||
Net income attributable to PowerSecure | ||||||||||||||||
International, Inc. common stockholders | $ | 0.91 | $ | 0.07 | $ | 1.17 | $ | 0.14 | ||||||||
| ||||||||||||||||
| ||||||||||||||||
Diluted earnings per share attributable to | ||||||||||||||||
PowerSecure International, Inc. common stockholders: | ||||||||||||||||
Income from continuing operations | $ | 0.90 | $ | 0.06 | $ | 0.86 | $ | 0.10 | ||||||||
Income from discontinued operations | .00 | 0.01 | 0.29 | 0.04 | ||||||||||||
| ||||||||||||||||
Net income attributable to PowerSecure | ||||||||||||||||
International, Inc. common stockholders | $ | 0.90 | $ | 0.07 | $ | 1.15 | $ | 0.14 | ||||||||
|
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Six Months | ||||||||
Ended June 30, | ||||||||
2011 | 2010 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 21,645 | $ | 2,688 | ||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
Gain on sale of unconsolidated affiliate | (21,786 | ) | - | |||||
Income from discontinued operations | (5,636 | ) | (810 | ) | ||||
Depreciation and amortization | 1,641 | 1,255 | ||||||
Stock compensation expense | 926 | 988 | ||||||
Distributions to noncontrolling shareholder | - | (877 | ) | |||||
Loss on write-down or disposal of equipment | 428 | 3 | ||||||
Deferred income taxes | 1,154 | - | ||||||
Equity in income of unconsolidated affiliate | (1,559 | ) | (1,837 | ) | ||||
Distributions from unconsolidated affiliate | 607 | 1,618 | ||||||
Changes in operating assets and liabilities, net of effect of aquisiton: | ||||||||
Trade receivables, net | (12,580 | ) | (9,031 | ) | ||||
Inventories | (1,016 | ) | (5,440 | ) | ||||
Other current assets and liabilities | 895 | 578 | ||||||
Other noncurrent assets and liabilities | 1,132 | 193 | ||||||
Accounts payable | (1,099 | ) | 1,952 | |||||
Restructuring charges | - | (325 | ) | |||||
Accrued and other liabilities | 3,525 | (411 | ) | |||||
| ||||||||
Net cash used by continuing operations | (11,723 | ) | (9,456 | ) | ||||
Net cash provided by discontinued operations | - | 956 | ||||||
| ||||||||
Net cash used in operating activities | (11,723 | ) | (8,500 | ) | ||||
| ||||||||
| ||||||||
Cash flows from investing activities: | ||||||||
Acquisition | - | (4,413 | ) | |||||
Purchases of property, plant and equipment | (9,040 | ) | (2,489 | ) | ||||
Additions to intangible rights and software development | (268 | ) | (432 | ) | ||||
Proceeds from sale of property, plant and equipment | - | 6 | ||||||
Proceeds from sale of unconsolidated affiliate | 25,610 | - | ||||||
Proceeds from sale of discontinued operations | 16,515 | - | ||||||
Discontinued operations investing activities | - | (63 | ) | |||||
| ||||||||
| ||||||||
Net cash provided by (used in) investing activities | 32,817 | (7,391 | ) | |||||
| ||||||||
| ||||||||
Cash flows from financing activities: | ||||||||
Borrowings (payments) on revolving line of credit | 5,000 | - | ||||||
Proceeds from sale leaseback transactions | 2,097 | - | ||||||
Payments on capital lease obligations | (393 | ) | (373 | ) | ||||
Proceeds from stock option exercises, net of shares tendered | 148 | 69 | ||||||
| ||||||||
| ||||||||
Net cash provided by (used in) financing activities | 6,852 | (304 | ) | |||||
| ||||||||
| ||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 27,946 | (16,195 | ) | |||||
| ||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 8,202 | 20,169 | ||||||
| ||||||||
| ||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 36,148 | $ | 3,974 | ||||
|
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Noncontrolling Interest | ||||||||||||
EfficientLights | IES | Total | ||||||||||
Balance, December 31, 2010 | $ | - | $ | 1,755 | $ | 1,755 | ||||||
Income (loss) | - | (343 | ) | (343 | ) | |||||||
Distributions | - | - | - | |||||||||
| ||||||||||||
| ||||||||||||
Balance, June 30, 2011 | $ | - | $ | 1,412 | $ | 1,412 | ||||||
|
Noncontrolling Interest | ||||||||||||
EfficientLights | IES | Total | ||||||||||
Balance, December 31, 2009 | $ | 1,107 | $ | - | $ | 1,107 | ||||||
Capital contributions | - | 2,188 | 2,188 | |||||||||
Income (loss) | 280 | (133 | ) | 147 | ||||||||
Distributions | (877 | ) | - | (877 | ) | |||||||
Acquisition of noncontrolling interes | (510 | ) | - | (510 | ) | |||||||
| ||||||||||||
| ||||||||||||
Balance, June 30, 2010 | $ | - | $ | 2,055 | $ | 2,055 | ||||||
|
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About PowerSecure
PowerSecure International, Inc. is a leading provider of Energy and Smart Grid Solutions to electric utilities, and their commercial, institutional, and industrial customers, as well as Energy Services to the oil and natural gas industry. PowerSecure's Energy and Smart Grid Solutions businesses provide products and services in the areas of Energy Efficiency, Interactive Distributed Generation, and Utility Infrastructure. The Company's Energy Efficiency business provides customers with energy efficient lighting technologies that deliver improved quality of light, including its proprietary EfficientLights LED lighting product that saves grocery, drug, and convenience stores 70% off the cost to operate traditional fluorescent lighting in their refrigerated cases. The Company is a pioneer in developing Interactive Distributed Generation(R) systems with sophisticated, proactive smart grid capabilities, including the ability to 1) forecast electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly power at peak power times, 2) provide utilities with dedicated electric power generation capacity to utilize for demand response purposes, and 3) provide customers with the most dependable standby power in the industry. PowerSecure also provides utilities with transmission
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