InvestorsHub Logo

kiy

Followers 53
Posts 16175
Boards Moderated 3
Alias Born 08/19/2010

kiy

Re: ashy2classy post# 402

Thursday, 08/02/2018 10:00:20 AM

Thursday, August 02, 2018 10:00:20 AM

Post# of 426
RVLT...no rocket here...lower guidance so stock could drift lower like yesterday.
I may cut back on the number of shares...***while I did this post price has gone down from $3.90...low $3.40...there was not time to get out below $3.90.

Revenues of $36.5 million

-- Gross margin of 32%

-- Adjusted EBITDA of $1.7 million

-- Non-GAAP net loss (excluding acquisition related costs and stock-based

compensation) of $0.9 million or $(0.04) per share

"I am extremely pleased with the progress over the past several quarters in right sizing our company, improving our operational processes and strengthening our sales and marketing resources. In addition, we continue to balance our portfolio of products and solutions to meet and exceed the needs of our expanding customer base," said Robert V. LaPenta, Chairman, CEO and President of Revolution Lighting Technologies. "While we were below our expectations regarding our second quarter results, we remain excited about the second half of 2018 and beyond. We begin the second half of 2018 with our largest backlog of over $50 million and there were a number of large projects where we are the selected lighting provider but the project has slipped to the second half."

Recent Business Highlights:

-- Announced expansion of Simi Valley facilities, doubling its footprint to 125,000 square feet, to support business growth for BAA/TAA Compliant LED solutions. Awarded contracts to supply BAA/TAA Compliant LED solutions for federal and military applications including (3) three VA hospital facilities, Tinker Airforce Base, Camp Lejeune, Watervliet arsenal base and Parris Island Marine Corps Base.

-- We completed the delivery of the initial order of our certified advanced LED tubes to the U.S. Navy in the first quarter and expect additional shipments in the second half of 2018.

-- Developed LED based prototype for Federal Aviation Administration as it evaluates and deploys the use of LED lighting solutions as part of its lighting enterprise architecture for all airports under its domain.

Launched next generation of industry leading LED lighting solutions,
including the Eco Area Light, Eco-Fit T8 Tube, G2 LED Eco Thin Panel
fixtures, ABS, Single-Barrel LED Troffer fixture, LED Troffer Retrofit
Kit and G4 Wall Pack.

-- Won a position in a LED multi-year retrofit program with a major big box retailer. Our first award was completed during 2017 and our second award began to ship in the second quarter of 2018. We are also competing on a large fixture retrofit opportunity with the same retailer.

-Restructured and strengthened our marketing and sales organization
throughout the company. We are also expanding our business development
efforts to address assisted living facilities, senior housing and
hospitality verticals.

- Developed a leading lighting control solution (rNET controls platform), providing a simple, flexible and scalable system to meet any need, now and in the future for IOT, POE and important security programs. We secured our first order during the second quarter within the multi-family market vertical to support senior care housing developments.

-- Provided LED lighting for athletic stadium projects including Reds
Stadium and the Great American Ballpark.

-- Expanded success throughout education, including more than (6) six
additional public school systems located in New Jersey and New York.
Additionally, provided LED solutions for several universities, including
Arizona State University.

-- Awarded over (40) forty projects consisting of 10,000 apartment and condo units located throughout the U.S.

-- Continued success within healthcare, with (8) eight medical facility
contract awards, including (2) two large hospitals, in Massachusetts and
Connecticut.

-- Diversified retrofit market penetration throughout New England with more than forty (40) retrofit contracts within manufacturing, grocery, retail and transportation based industries.


Quarter Ended June 30, 2018

For the quarter ended June 30, 2018, total revenue was $36.5 million, compared to $43.3 million in Q2 2017. Despite a significant increase in our backlog, our revenue decreased primarily due to lower product deliveries, not resulting from lost opportunities, but as a result of project delays, which have moved to the second half of 2018. Gross profit was $11.8 million and $14.2 million, and gross profit margins were 32% and 33%, for the second quarters of 2018 and 2017, respectively.

Adjusted EBITDA (as defined below) for the three months ended June 30, 2018 was $1.7 million compared to $3.2 million for the comparable period in 2017. The Company reported an operating loss of $1.1 million for the three months ended June 30, 2018, as compared to operating income of $0.1 million in the same period in 2017, as a result of lower revenue.

Reported GAAP net loss for the three months ended June 30, 2018 was $2.2 million compared to a net loss of $0.7 million for the comparable period in 2017, and reflects the aforementioned. Basic and diluted GAAP loss per share attributable to common stockholders was $0.10 for the second quarter 2018 as compared to a net loss per share of $0.03 for the second quarter 2017. Excluding the one-time acquisition, work force reductions and stock-based compensation, the non-GAAP net loss per share was $0.04 for Q2 2018 compared to non-GAAP net income of $0.03 for Q2 2017.

Six Months Ended June 30, 2018

For the six months ended June 30, 2018, total revenue was $70.2 million, compared to $73.9 million in 2017 reflecting lower revenue in the second quarter, as noted above. Gross profit was $23.3 million and $24.3 million for the first half of 2018 and 2017, respectively. Gross margin was 33% for both periods.

Adjusted EBITDA (as defined below) for the six months ended June 30, 2018 was $2.7 million compared to $2.8 million for the comparable period in 2017. The Company reported an operating loss of $2.4 million for the six months ended June 30, 2018, as compared to an operating loss of $4.1 million in the same period in 2017, as a result of decreased expenses.

Reported GAAP net loss for the six months ended June 30, 2018 was $4.4 million compared to a net loss of $5.7 million for the comparable period in 2017, and reflects the aforementioned. Basic and diluted GAAP loss per share attributable to common stockholders was $0.20 for the 2018 as compared to a net loss per share of $0.27 for 2017. Excluding the one-time acquisition, work force reductions and stock-based compensation, the non-GAAP net loss per share was $0.10 for 2018 compared to a non-GAAP net loss of $0.12 for 2017.

Liquidity Position

Cash used in operating activities for the six months ended June 30, 2018, excluding interest, was $9.2 million and primarily reflects modest increases in current assets, offset by decreased accounts payable and accrued liabilities. As of June 30, 2018, our availability, including cash, under our Revolving Credit Facility was approximately $2.5 million.

Guidance
-- The Company expects Q3 2018 revenue in the $40 - $42 million range and

Adjusted EBITDA in the 6% range.
-- The Company expects full year 2018 revenue in the $160 - $170 million range and Adjusted EBITDA in the 6% - 7% range.

-- The Company expects positive free cash flow in the second half of 2018 of approximately $10 - $12 million.

Q2 2018 Conference Call

Revolution Lighting Technologies will host a conference call and live audio webcast to discuss these financial results at 11 a.m. ET on August 2, 2018. To access the conference call by phone, dial 1-877-326-9228 for the U.S. and 1-412-317-5110 for international callers. All participants should request to be joined into the Revolution Lighting Technologies Call. The webcast will be available on the Company's website at www.rvlti.com. An audio replay of the call will also be available to investors by phone beginning at approximately 2 p.m. ET on August 2, 2018 until 11:59 p.m. ET on August 16, 2018 by dialing 1-877-344-7529 within the U.S. or 1-412-317-0088 for international callers and entering passcode # 10122547.

Revolution Lighting Technologies, Inc.

Condensed Consolidated Balance Sheets (Unaudited)

(In thousands, except per share data)

December

June 30, 31,

2018 2017

ASSETS

Current Assets

Cash and cash equivalents $ 457 $ 945

Accounts receivable, net of

allowance for doubtful accounts 34,963 34,972

Unbilled contracts receivable 6,813 6,083

Inventories, net 26,706 26,164

Vendor deposits, prepaid expenses

and other 9,554 9,510

Total current assets 78,493 77,674

Property and equipment, net 2,051 1,603

Goodwill 61,508 61,508

Intangible assets, net 27,164 28,372

Other assets, net 999 1,077

Total assets $ 170,215 $ 170,234

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

Accounts payable $ 23,476 $ 28,833

Accrued and other liabilities 7,990 11,570

Acquisition payable 510 1,796

Related party notes payable 1,000 1,000

(MORE TO FOLLOW) Dow Jones Newswires

August 02, 2018 07:30 ET (11:30 GMT)





Purchase price obligations -- 130

Total current liabilities 32,976 43,329

Revolving credit facility 42,107 38,633

Acquisition payable 1,326 270

Related party notes payable 17,728 11,720

Other noncurrent liabilities 244 419

Total liabilities 94,381 94,371

Contingencies and Commitments

Stockholders' Equity

Common stock, par value $0.001 -- 35,000

shares authorized and 22,418 shares

issued and outstanding at June 30, 2018

and 35,000 shares authorized and 21,352

shares issued and outstanding at

December 31, 2017 22 21

Additional paid-in-capital 209,302 204,944

Accumulated deficit (133,490) (129,102)

Total stockholders' equity 75,834 75,863

Total liabilities and

stockholders' equity $ 170,215 $ 170,234



Revolution Lighting Technologies, Inc.

Condensed Consolidated Statements of Operations (Unaudited)

(In thousands, except per share data)

Three Months Ended Six Months Ended

June 30, June 30,

2018 2017 2018 2017

Revenue $36,444 $43,375 $70,183 $73,945

Cost of sales 24,669 29,127 46,909 49,623

Gross profit 11,775 14,248 23,274 24,322

Operating expenses:

Selling,

general and

administrative 9,585 10,368 19,681 20,458

Research and

development 934 694 1,752 1,116

Amortization

and

depreciation 1,047 1,793 2,048 3,732

Acquisition,

severance and

transition

costs 790 883 959 1,541

Stock-based

compensation 522 478 1,195 1,596

Total operating

expenses 12,878 14,216 25,635 28,443

Operating income

(loss) (1,103) 32 (2,361) (4,121)

Interest expense and

other charges (1,095) (759) (2,027) (1,561)

Net loss $(2,198) $ (727) $(4,388) $(5,682)

Net loss per share,

basic and diluted $ (0.10) $ (0.03) $ (0.20) $ (0.27)

Weighted average

shares outstanding,

basic and diluted 22,232 20,761 22,027 20,680



Revolution Lighting Technologies, Inc.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

Six Months Ended June 30,

2018 2017

Cash Flows from Operating Activities:

Net loss $ (4,388) $ (5,682)

Adjustments to reconcile net loss to net cash

used in operating activities:

Amortization and depreciation 2,825 3,732

Stock-based compensation 1,195 1,596

Change in fair value of contingent

consideration -- (1,645)

Other noncash items affecting net income 186 (103)

Changes in operating assets and liabilities,

net of the effect of the acquisition:

(Increase) decrease in trade receivables,

net 9 2,683

(Increase) decrease in unbilled contracts

receivable (730) 3,912

(Increase) decrease in inventories, net (542) (4,556)

(Increase) decrease in prepaid and other

assets (1,514) (1,994)

Increase (decrease) in accounts payable

and accrued liabilities (8,253) (6,379)

Net cash used in operating activities (11,212) (8,436)

Cash Flows from Investing Activities:

Payment of acquisition obligations (137) (284)

Purchase of property and equipment and

other (1,403) (652)

Net cash used in investing activities (1,540) (936)

Cash Flows from Financing Activities:

Proceeds from the issuance of common

stock 3,600 --

Net proceeds from revolving credit

facility 3,474 12,747

Net proceeds from related party notes

payable 5,280 7,000

Repayments of notes payable and

short-term borrowings (90) (10,180)

Fees pertaining to issuance of debt -- (603)

Net cash provided by financing

activities 12,264 8,964

Net decrease in cash and cash equivalents (488) (408)

Cash and cash equivalents, beginning of year 945 883

Cash and cash equivalents, end of year $ 457 $ 475

Non-cash investing and financing activities:

Issuance of common stock for contingent

consideration $ -- $554

Non-GAAP Measures

Management uses non-GAAP net income (loss), non-GAAP net income (loss) per share and adjusted EBITDA as non-U.S. GAAP measures of financial performance. We consider these non-GAAP measures to be important indicators of our operational strength and performance, and a useful measure of historical and prospective trends. However, there are significant limitations of the use of these non-GAAP measures since they exclude acquisition related charges and stock-based compensation, both of which affect profitability. We believe that these limitations are compensated by providing these non-GAAP measures along with U.S. GAAP performance measures and clearly identifying the differences between the two measures.

Consequently, non-GAAP net income (loss), non-GAAP net income (loss) per share and adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss), operating income (loss) or net income (loss) per share presented in accordance with U.S. GAAP. Moreover, non-GAAP net income (loss), non-GAAP net income (loss) per share and adjusted EBITDA as defined by Revolution Lighting may not be comparable to similarly titled measures provided by other entities. These non-GAAP measures are provided to investors to supplement the results of operations reported in accordance with U.S. GAAP. Management believes that these non-GAAP measures are useful to help investors analyze the operating trends in the business and to assess the relative underlying performance of the business. Management believes that these non-GAAP measures provide an additional tool for investors to use in comparing our financial results with other companies that use non-GAAP net income (loss), non-GAAP net income (loss) per share and adjusted EBITDA in their communications with investors. Management also uses non-GAAP net income (loss), non-GAAP net income (loss) per share and adjusted EBITDA to evaluate potential acquisitions establish internal budgets and goals and evaluate the performance of business units and management.

A reconciliation of Revolution Lighting GAAP net income (loss) to non-GAAP Adjusted EBITDA for the three and six months ending June 30, 2018 and 2017 respectively follows:

(in millions) (in millions)

Three Months Ended Six Months Ended

June

June 30, June 30, 30, June 30,

2018 2017 2018 2017

Net income

(loss) $ (2.2) $ (0.7) $ (4.4) $ (5.7)

Amortization

and

depreciation 1.5 1.7 2.9 3.7

Stock-based

compensation 0.5 0.5 1.2 1.6

Acquisition,

severance and

transition

costs 0.8 0.9 1.0 1.6

Interest and

other

expense 1.1 0.8 2.0 1.6

Adjusted

EBITDA $ 1.7 $ 3.2 $ 2.7 $ 2.8

The following table reconciles net income (loss) to non-GAAP net income (loss) for the periods presented:

(in millions) (in millions)

Three Months Ended Six Months Ended

June 30, June 30, June 30, June 30,

2018 2017 2018 2017

Net income

(loss) $ (2.2) $ (0.7) $ (4.4) (5.7)

Acquisition,

severance and

transition

costs 0.8 0.9 1.0 1.6

Stock-based

compensation 0.5 0.5 1.2 1.6

Non-GAAP net

income $ (0.9) $ 0.7 $ (2.2) (2.5)

(MORE TO FOLLOW) Dow Jones Newswires

August 02, 2018 07:30 ET (11:30 GMT)





The following table reconciles diluted net income (loss) per share to non-GAAP net income (loss) per share for the periods presented:

(in millions) (in millions)

Three Months

Ended Six Months Ended

June June

June 30, 30, 30, June 30,

2018 2017 2018 2017

Net income

(loss) $ (0.10) $(0.03) $ (0.20) (0.27)

Acquisition,

severance and

transition

costs 0.04 0.04 0.05 0.07

Stock-based

compensation 0.02 0.02 0.05 0.08

Non-GAAP net

income $ (0.04) $ 0.03 $ (0.10) $ (0.12)

Weighted average

shares

outstanding,

diluted (In

thousands) 22,232 20,761 22,027 20,680

About Revolution Lighting Technologies, Inc.

Revolution Lighting Technologies, Inc. is a leader in the design, manufacture, marketing, and sale of LED lighting solutions focusing on the industrial, commercial and government markets in the United States, Canada, and internationally. Through advanced LED technologies, Revolution Lighting has created an innovative lighting company that offers a comprehensive advanced product platform of high-quality interior and exterior LED lamps and fixtures, including signage and control systems. Revolution Lighting is uniquely positioned to act as an expert partner, offering full service lighting solutions through our operating divisions including Energy Source, Multi-Family and Tri-State LED, to transform lighting into a source of superior energy savings, quality light and well-being. Revolution Lighting Technologies markets and distributes its products through a network of regional and national independent sales representatives and distributors, as well as through energy savings companies and national accounts. Revolution Lighting Technologies trades on the NASDAQ under the ticker RVLT. For more information, please visit www.rvlti.com and connect with the Company on Twitter, LinkedIn and Facebook.

Cautionary Statement for Forward-Looking Statements

Certain of the above statements contained in this press release are forward-looking statements that involve a number of risks and uncertainties, including statements relating to our business pipeline and sales opportunities, our revenue, Adjusted EBITDA and cash flow outlook. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Reference is made to Revolution Lighting's filings under the Securities Exchange Act for additional factors that could cause actual results to differ materially, including our history of losses, customer concentration risks, the potential for future dilution to our existing common stockholders, the risk that demand for our LED products fails to emerge as anticipated, the availability of financing for our customers, competition from larger companies, and risks relating to third party suppliers and manufacturers, as well as the other Risk Factors described in Item 1A of our Form 10-K for the fiscal year ended December 31, 2017. Revolution Lighting Technologies, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Readers are cautioned not to place undue reliance on these forward-looking statements.

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.