Able Energy Reports Results for the Quarter Ended March 31, 2006
Monday May 15, 6:35 pm ET
ROCKAWAY, N.J.--(BUSINESS WIRE)--May 15, 2006--Able Energy, Inc. ("Able") today announced financial results for the third quarter ended March 31, 2006. Net sales for the three months were $26.3 million compared to $23.7 million in the comparable period in the prior year. Net loss for the three months was $(1.5) million or $(0.52) per common share (basic and diluted) compared to net income of $569,000 or $0.28 per common share (basic and diluted) in the previous year. Net sales for the nine months were $61.7 million compared to $50.9 million in the comparable period in the prior year. Net loss for the nine months was $(4.8) million or $(1.76) per common share (basic and diluted) compared to $(250,000) or $(0.12) per common share (basic and diluted) in the previous year.
Net loss for the quarter and the nine months ended March 31, 2006 were substantially impacted by one-time charges of approximately $1 million and $2.4 million, respectively, for non cash charges related to the amortization of debt discount for conversion rights of the convertible debentures sold in July 2005 and the value of warrants issued in connection with the convertible debentures and conversion of a note payable.
Selected Financial Data
Three Months Ended Nine Months Ended
March 31, March 31,
------------------------- -------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
Net sales $26,265,365 $23,668,771 $61,736,954 $50,878,714
(Loss) income from
operations (478,508) 630,982 (1,812,990) (114,656)
Net (Loss) Income (1,521,016) 569,461 (4,763,555) (249,557)
Basic and diluted
(loss) income per
common share (.52) .28 (1.76) (.12)
March 31, June 30,
--------------------------
2006 2005
------------ -------------
Cash $1,605,404 $1,754,318
Current Assets 9,035,220 6,297,647
Current
Liabilities 6,761,965 6,697,369
Total Assets 15,523,171 12,821,900
Long-Term
Liabilities 3,927,360 4,066,416
Total
Stockholders'
Equity 4,833,846 2,058,115
Commenting on these results, Gregory D. Frost, Able's Chief Executive Officer, stated, "Although the Company's revenues increased substantially during this quarter, we were unable to realize our projected profit margins due to record warm temperatures which significantly affected our home heating oil deliveries. Certain additional selling, general and administrative expenses for professional fees related to the Company's proposed purchase of All American Plazas, Inc. were recorded in the period. The All American acquisition, when completed, should allow the Company to diversify its business to allow for consistent year round revenues and a substantial increase of our revenues. While we have experienced a difficult quarter, our financial base remains strong as evidenced by the growth of our stockholders' equity as a result of the conversion of convertible debentures and exercise of options and warrants and we remain excited about our future which includes the marketing introduction of environmentally friendly, home grown, bio-diesel and bio-heat." Frost concluded, "Our anticipated financial resources present the opportunity for us to actively participate in the expected consolidation within our industry."
Able is a holding company for five operating subsidiaries, which are engaged in the retail distribution of, and the provision of services relating to, home heating oil, diesel fuel, and kerosene. In addition, Able provides complete HVAC installation and repair.
Able's common stock is traded on the NASDAQ Capital Market under the symbol "ABLE" and on the Boston Stock Exchange under the symbol "AEI".
This announcement includes forward-looking statements based on current expectations. Actual results may differ materially. These forward-looking statements involve a number of risks and uncertainties including, but not limited to, the closing of future financing rounds, the possibility of continuing operating losses, the ability to adapt to rapid technological change, the receipt and fulfillment of new orders for current products, the timely introduction and market acceptance of new products and the ability to establish and maintain strategic partner relationships.
Contact:
Able Energy, Inc.
Christopher P. Westad, President, 973-625-1012
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Source: Able Energy, Inc.
