NEW YORK, Nov. 7, 2007 (PRIME NEWSWIRE) -- MMC Energy, Inc. (Nasdaq:MMCE) announced that for the third quarter ended September 30, 2007, it had net income of approximately $705,000, or .05 cents per share, on revenues of approximately $2.8 million. For the nine months ended September 30, 2007 the Company had net losses of approximately ($1.7 million), or (.22) cents per share, on revenues of approximately $5.4 million.
Revenues for the third quarter of 2007 consisted of energy production revenues of $462,224, ancillary services revenues of $1,496,289 and resource adequacy capacity revenues of $791,250. Revenues for the nine months ended September 30, 2007 consisted of energy production revenues of $580,417, ancillary services revenues of $2,500,676 and resource adequacy capacity revenues of $2,274,750. The Company was a development stage enterprise until June 12, 2006 and prior period comparisons are therefore not meaningful.
The Company believes that adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization, as adjusted for non-cash compensation charges and re-commissioning expenses, which are non-recurring charges on an asset by asset basis that the Company considers a component of its acquisition cost for internal reporting purposes, and in 2006, non-recurring charges associated with the Company's merger and private placement) serves as a more meaningful measure of performance on an ongoing basis. Tables are included in this release providing reconciliation between GAAP and non-GAAP financial results.
Adjusted EBITDA was $590,460 for the quarter ended September 30, 2007, and a loss of ($792,615) for the nine months ended September 30, 2007. See below for a cautionary note on forward looking statements.
Income statement for
the three and nine Three Months Ended Nine Months Ended
month periods Sept. 30, Sept. 30, Sept. 30, Sept. 30,
ended September 30, 2007 2006 2007 2006
2007 and 2006 ---------- ----------- ----------- -----------
Operating revenues:
Resource adequacy
capacity $ 791,250 $ 380,000 $ 2,274,750 $ 380,000
Ancillary services 1,496,289 1,441,581 2,500,676 1,693,853
Energy production 462,224 693,645 580,417 712,320
----------- ----------- ----------- -----------
Total operating
revenues 2,749,763 2,515,226 5,355,843 2,786,173
Costs of sales:
Costs of resource
adequacy capacity 63,300 25,000 181,980 25,000
Costs of ancillary
services 201,550 316,720 381,641 353,051
Costs of energy
production 147,897 330,789 249,994 345,266
----------- ----------- ----------- -----------
Total costs of
sales 412,747 672,509 813,615 723,317
----------- ----------- ----------- -----------
Gross Profit 2,337,016 1,842,717 4,542,228 2,062,856
Operating
expenses:
Depreciation 284,814 158,244 800,999 464,288
Operations and
maintenance 652,576 551,585 1,864,201 978,213
Re-commissioning
expenses (5,231) 12,632 413,904 2,155,796
General and
administrative
expenses 1,146,620 888,708 3,668,669 3,109,987
----------- ----------- ----------- -----------
Total operating
expenses 2,078,779 1,611,169 6,747,773 6,708,284
----------- ----------- ----------- -----------
Income (loss) from
operations 258,237 231,548 (2,205,545) (4,645,428)
----------- ----------- ----------- -----------
Other expenses
(income)
Interest expense,
net (446,778) (67,150) (407,763) (4,577)
Other expenses,
net -- 136,000 (135,995) 136,000
----------- ----------- ----------- -----------
Total other
expenses (446,778) 68,850 (543,758) 131,423
----------- ----------- ----------- -----------
Net income (loss)
before provision
for income taxes 705,015 162,698 (1,661,787) (4,776,851)
----------- ----------- ----------- -----------
Provision for
income taxes -- -- -- --
----------- ----------- ----------- -----------
Net income (loss) $ 705,015 $ 162,698 $(1,661,787) $(4,776,851)
----------- ----------- ----------- -----------
Basic earnings
(loss) per common
share
Net income (loss)
per share $ 0.05 $ 0.03 $ (0.22) $ (1.15)
Weighted average
shares
outstanding 13,408,277 4,762,597 7,705,647 4,139,381
=========== =========== =========== ===========
Diluted earnings
(loss) per
common share
Net income (loss)
per share $ 0.05 $ 0.03 $ (0.22) $ (1.15)
Weighted average
shares
outstanding 13,408,277 4,846,460 7,705,647 4,139,381
=========== =========== =========== ===========
Reconciliation of Three Months Ended Nine Months Ended
Income (Losses) from Sept. 30, Sept. 30, Sept. 30, Sept. 30,
operations to 2007 2006 2007 2006
Adjusted EBITDA ---- ---- ---- ----
Income (Losses) from
operations $258,237 $231,548 $(2,205,545) $(4,645,428)
Add: Depreciation
Expense 284,814 158,244 800,999 464,288
Add: Re-commissioning
expenses (5,231) 12,632 413,904 2,155,796
Add: Stock-based
compensation 52,640 62,875 198,027 89,625
Add: non-recurring
financing costs -- -- -- 1,413,784
-------- -------- ----------- -----------
Adjusted EBITDA $590,460 $465,299 $ (792,615) $ (521,935)
-------- -------- ----------- -----------
About MMC Energy, Inc.:
The Company acquires and actively manages electricity generating and energy infrastructure-related assets in the United States. The Company is traded on the NASDAQ Global Market in the United States and the Deutsche Bourse in Germany.
The Company's mission is to acquire, directly or through joint ventures, a portfolio of small to mid size natural gas fueled electricity generating assets, generally below 250 megawatts or "MW".
The Company creates long-term value for its shareholders through disciplined asset acquisitions and hands on post-acquisition asset management. The Company actively invests in electricity assets which provide essential services to key transmission constrained markets such as California, where regulatory capacity requirements and a lack of local electricity supplies make peak electricity generation facilities valuable.
To date, the Company has acquired three electricity generating assets in California, totaling 110 MW of capacity. The Company is currently in the process of repowering two of these assets, 100 MW MMC Chula Vista Upgrade and 50 MW MMC Escondido Upgrade, both located in San Diego County, California.
Forward Looking Statements:
This press release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, including those statements regarding the Company's expectation that it will achieve positive adjusted EBITDA during the next twelve months and the Company's ability to expand existing generating facilities and exploit acquisition opportunities. These statements are expressed in good faith and based upon a reasonable basis when made, but there can be no assurance that these expectations will be achieved or accomplished. Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements including, but not limited to, those risks described in the Company's Annual Report on Form 10-KSB and in its other public filings. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. MMC undertakes no obligation to update these forward-looking statements.