BOSTON, Nov. 5, 2009 (GLOBE NEWSWIRE) -- EnerNOC, Inc. (Nasdaq:ENOC), a leading provider of clean and intelligent energy solutions, today announced financial results for the quarter ended September 30, 2009.
"We believe that we have reached an inflection point in our business. By nearly doubling our megawatts under management over the past year and continuing to drive operational efficiencies, we were able to eclipse $100 million in quarterly revenue and generate more than a dollar per share in GAAP earnings," commented Tim Healy, EnerNOC's Chairman and Chief Executive Officer. "We have positioned ourselves to achieve our 2009 objectives and deliver positive GAAP earnings per share in 2010."
Financial Summary
The following financial results are reported on a U.S. GAAP-basis, unless otherwise noted:
Revenues - Revenues for the third quarter of 2009 were $103.1 million, compared to $44.2 million for the same period in 2008, an increase of $59.0 million, or 134%.
Cost of Revenues - Cost of revenues for the third quarter of 2009 totaled $51.4 million, compared to $25.8 million for the same period in 2008, an increase of $25.6 million, or 99%.
Gross Profit/Gross Margin - Gross profit for the third quarter of 2009 was $51.7 million, compared to $18.4 million for the same period in 2008, an increase of $33.3 million, or 181%. Gross margin was 50.1% for the third quarter of 2009 compared to 41.6% for the same period in 2008.
Operating Expenses - Operating expenses for the third quarter of 2009 were $25.9 million, compared to $21.1 million for the same period in 2008, an increase of $4.7 million, or 22%.
Net Income (Loss) -
GAAP Results
GAAP net income for the third quarter of 2009 was $26.6 million, or $1.21 per basic share and $1.12 per diluted share, compared to a net loss of $3.1 million, or $0.16 per basic and diluted share, for the same period in 2008, an increase of $29.7 million.
Non-GAAP Results
Excluding stock-based compensation charges and amortization expense related to acquisition-related assets, non-GAAP net income for the third quarter of 2009 was $30.7 million, or $1.40 per basic share and $1.30 per diluted share, compared to a non-GAAP net loss of $0.3 million, or $0.02 per basic and diluted share for the same period in 2008, an increase of $31.1 million.
Cash and Cash Equivalents - As of September 30, 2009, the Company had cash and cash equivalents totaling $129.9 million, an increase of $69.1 million from cash and cash equivalents as of December 31, 2008. This increase is due to the completion of the Company's follow on offering in August 2009, which added approximately $83.5 million to the Company's balance sheet.
Business Update
EnerNOC's third quarter 2009 business highlights included:
-- Improving its operating leverage, as evidenced by an increase
in megawatts under management per full-time employee to
approximately 8.8 as of September 30, 2009, up from 5.3 as of
September 30, 2008.
-- Increasing its demand response megawatts under management to
over 3,250 as of September 30, 2009.
-- Increasing the number of commercial, institutional, and
industrial (C&I) demand response customers in its demand
response network to approximately 2,500 and sites to
approximately 5,600 as of September 30, 2009.
-- Dispatching demand response resources in its network nearly
100 times during the quarter, maintaining the Company's
average performance year to date to over 100% based on
nominated versus delivered capacity.
-- Receiving state regulatory approval for the following utility
initiatives:
- 110-MW demand response contract expansion with Southern
California Edison (SCE), 70 MW of which are incremental;
- New 15-year, 40-MW demand response contract with a major
west coast utility;
- New 10-year, 25-MW clean distributed generation contract
with a major west coast utility;
- Two utility-sponsored Monitoring Based Commissioning (MBCx)
programs in which the Company expects to participate,
subject to final contract negotiations, the first programs
of this kind in the Company's history.
-- Signing an MBCx energy efficiency contract with Northwest
Community Hospital in Illinois. This represents a successful
cross sell of EnerNOC's entire product suite, which includes
demand response, energy efficiency, carbon management, and
energy procurement services.
-- Commenced operations in the United Kingdom by tendering and
clearing megawatts in National Grid's Short-Term Operating
Reserve service.
Financial Outlook
The Company is improving its revenue and its GAAP loss per share guidance for the full year of 2009 and currently expects to deliver the following financial results for the quarter ending and the year ending December 31, 2009:
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Q4 2009 FY 2009
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Revenue $23-$25 million $187-$189 million
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GAAP EPS Basic ($0.63) - ($0.71) ($0.30) - ($0.38)
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GAAP EPS Diluted ($0.63) - ($0.71) ($0.30) - ($0.38)
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Non-GAAP EPS Basic ($0.50) - ($0.57) $0.25 - $0.33
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Non-GAAP EPS Diluted ($0.50) - ($0.57) $0.23 - $0.30
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The Company continues to expect to generate positive cash flow from operations in the second half of 2009 and to deliver positive GAAP earnings per share for the year ending December 31, 2010.
The non-GAAP net loss per share estimates for the quarter ending December 31, 2009 exclude the impact of an estimated $2.8 million in stock-based compensation charges and an estimated $0.2 million in amortization expense related to acquisition-related assets.
The non-GAAP net loss per share estimates for the year ending December 31, 2009 exclude the impact of an estimated $12.8 million in stock-based compensation charges and an estimated $0.7 million in amortization expense related to acquisition-related assets.
The above statements are based on current expectations. These statements are forward-looking and actual results may differ materially. The Company assumes no obligation to publicly update or revise its financial outlook. Investors are reminded that actual results may differ from these estimates for the reasons described below and in the Company's filings with the Securities and Exchange Commission.
Webcast Reminder
The Company will host a conference call today, November 5, 2009 at 5:00 p.m., Eastern Time, to discuss the Company's third quarter operating results, as well as other forward-looking information about the Company's business. Domestic callers may access the earnings conference call by dialing 888-515-2235 (International callers, dial 719-325-2413). Investors and other interested parties may also go to the Investor Relations section of EnerNOC's website at http://investor.enernoc.com/webcasts.cfm for a live webcast of the conference call. Please access the website at least 15 minutes prior to the call to register, download, and install any necessary audio software. A replay of the conference call will be available on the Company's website noted above or by phone (dial 888-203-1112 and enter the pass code 5634518) until November 15, 2009.
About EnerNOC
EnerNOC, Inc. is a leading provider of clean and intelligent energy solutions, which include demand response, energy efficiency, energy procurement, and emissions tracking and trading services. These solutions help optimize the balance of electric supply and demand, provide cost-effective alternatives to traditional power generation, transmission, and distribution infrastructure, and drive significant cost-savings for end-use customers. The Company uses its Network Operations Center, or NOC, and PowerTrak(R) enterprise software platform to remotely manage and reduce electricity consumption across a growing network of commercial, institutional, and industrial customer sites, making demand response capacity available to grid operators and utilities on demand, while helping end-users of electricity achieve energy savings, environmental benefits, and improved financial results. For more information visit www.enernoc.com.
The EnerNOC, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5804
Safe Harbor Statement
Statements in this press release regarding management's future expectations, beliefs, intentions, goals, strategies, plans or prospects, including, without limitation, statements relating to the Company's future financial performance on both a GAAP and non-GAAP basis, the Company's ability to generate positive cash flow from operations in the second half of 2009 and to deliver positive GAAP earnings per share for the year ending December 31, 2010, the Company's expectation to finalize contracts related to two utility-sponsored MBCx programs, and the future growth and success of the Company's demand response and energy management solutions, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, certain of the Company's contracts and expansion of existing contracts may be subject to approval of state or local regulatory agencies. There can be no assurance that such approvals will be obtained. Forward-looking statements can be identified by terminology such as "anticipate," "believe," "could," "could increase the likelihood," "estimate," "expect," "intend," "is planned," "may," "should," "will," "will enable," "would be expected," "look forward," "may provide," "would" or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those risks, uncertainties and factors referred to under the section "Risk Factors" in EnerNOC's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, as well as other documents that may be filed by EnerNOC from time to time with the Securities and Exchange Commission. As a result of such risks, uncertainties and factors, the Company's actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. EnerNOC is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Use of Non-GAAP Financial Measures
EnerNOC continues to provide all information required in accordance with GAAP and also provides certain non-GAAP financial measures. A "non-GAAP financial measure" refers to a numerical measure of the Company's historical or future financial performance, financial position, or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the Company's financial statements. EnerNOC provides non-GAAP net income (loss) and non-GAAP net income (loss) per share data as additional information relating to EnerNOC's operating results. EnerNOC presents these non-GAAP financial measures as a complement to results provided in accordance with GAAP because management believes these non-GAAP financial measures help indicate underlying trends in the Company's business and are important in comparing current results with prior period results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income (loss) or net income (loss) per share prepared in accordance with GAAP.
EnerNOC's management uses certain non-GAAP financial information, namely operating results excluding the impact of stock-based compensation charges made in accordance with SFAS 123R and amortization expense related to acquisition-related assets, to evaluate its ongoing operations and for internal planning and forecasting purposes. Accordingly, EnerNOC believes it is useful for its investors to review, as applicable, information that both includes and excludes stock-based compensation and amortization expense related to acquisition-related assets in order to assess the performance of EnerNOC's business and for planning and forecasting in future periods. Whenever EnerNOC reports non-GAAP financial measures, a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure will be made available. Investors are encouraged to review these reconciliations to ensure they have a thorough understanding of the reported non-GAAP financial measures and their most directly comparable GAAP financial measures.
In EnerNOC's earnings releases, conference calls, slide presentations or webcasts, it may use or discuss non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure are included in this press release after the condensed consolidated financial statements and can be found on the Investor Relations page of the EnerNOC corporate Web site at http://investor.enernoc.com.
EnerNOC, Inc.
SELECTED FINANCIAL INFORMATION
(in thousands, except for per share data)
EnerNOC, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
Revenues $ 103,117 $ 44,152 $ 163,942 $ 86,450
Cost of revenues 51,440 25,792 86,232 52,748
---------- ---------- ---------- ----------
Gross profit 51,677 18,360 77,710 33,702
---------- ---------- ---------- ----------
Operating expenses:
Selling and
marketing 11,602 9,525 29,481 23,714
General and
administrative 12,155 10,041 33,252 30,519
Research and
development 2,111 1,567 5,524 4,560
---------- ---------- ---------- ----------
Total operating
expenses 25,868 21,133 68,257 58,793
---------- ---------- ---------- ----------
Income (loss) from
operations 25,809 (2,773) 9,453 (25,091)
Interest and other
income (expense),
net 42 (265) (1,517) 775
---------- ---------- ---------- ----------
Income (loss) before
income tax expense 25,851 (3,038) 7,936 (24,316)
Benefit from
(provision for)
income tax expense 786 (22) 438 (180)
---------- ---------- ---------- ----------
Net income (loss) $ 26,637 $ (3,060) $ 8,374 $ (24,496)
========== ========== ========== ==========
Earnings (loss) per
share:
Basic earnings
(loss) per common
share $ 1.21 $ (0.16) $ 0.40 $ (1.26)
========== ========== ========== ==========
Diluted earnings
(loss) per common
share $ 1.12 $ (0.16) $ 0.38 $ (1.26)
========== ========== ========== ==========
Weighted average
number of common
shares outstanding
Basic 21,938,427 19,606,287 20,703,779 19,406,811
========== ========== ========== ==========
Diluted 23,689,477 19,606,287 22,154,745 19,406,811
========== ========== ========== ==========
EnerNOC, Inc.
Condensed Consolidated Balance Sheet Information
(Unaudited)
September 30, December 31,
2009 2008
------------- -------------
Assets
Cash and cash equivalents $ 129,926 $ 60,782
Restricted cash 7,874 1,419
Marketable securities -- 2,000
Accounts receivable, net 20,267 11,150
Unbilled revenue 64,842 11,585
Deposits, including non-current 2,133 2,648
Prepaid expenses and other current
assets 3,306 1,535
Property and equipment, net 32,167 26,975
Goodwill and intangible assets, net 20,215 18,535
Other assets 1,641 65
------------- -------------
Total assets $ 282,371 $ 136,694
============= =============
Liabilities and Stockholders' Equity
Accounts payable $ 853 $ 1,171
Accrued capacity payments 54,413 18,643
Accrued payroll and related expenses 11,466 6,309
Accrued expenses and other current
liabilities 2,538 3,822
Deferred revenue 3,700 2,257
Long-term debt, including current
portion 4,529 4,563
Other liabilities 1,158 709
Stockholders' equity 203,714 99,220
------------- -------------
Total liabilities and stockholders'
equity $ 282,371 $ 136,694
============= =============
EnerNOC, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended
September 30,
----------------------------
2009 2008
------------- -------------
Cash provided by (used in) operating
activities $ 3,042 $ (14,482)
Cash used in investing activities (18,166) (1,344)
Cash provided by (used in) financing
activities 84,243 (1,148)
Effects of exchange rate changes on
cash 25 --
------------- -------------
Net change in cash and cash
equivalents $ 69,144 $ (16,974)
============= =============
Reconciliation of Non-GAAP Financial Measures to Comparable
U.S. GAAP Measures
(Unaudited)
Pursuant to the requirements of Regulation G, the Company has provided a reconciliation of each non-GAAP financial measure used in this earnings release and related conference call or webcast to the most directly comparable financial measure prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). The reconciliation for historic non-GAAP measures is provided herein on a quantitative basis and for non-GAAP measures that are forward-looking is provided herein on a qualitative basis.
The non-GAAP measures used in this earnings release and related conference call differ from GAAP in that they exclude expenses related to stock-based compensation and amortization expense related to acquisition-related assets. The Company's basis for these adjustments is described below. Management uses these non-GAAP measures for internal reporting and forecasting purposes. The Company has provided these non-GAAP financial measures in addition to GAAP financial results because it believes that these non-GAAP financial measures provide useful information to certain investors and financial analysts for comparison across accounting periods not influenced by certain non-cash items that are not used by management when evaluating the Company's historical and prospective financial performance.
Management uses these non-GAAP financial measures when evaluating the Company's operating performance and believes that such measures are useful to investors and financial analysts in assessing the Company's operating performance due to the following factors:
-- The Company believes that the presentation of non-GAAP measures
that adjust for the impact of stock-based compensation expenses
and amortization expense related to acquisition-related assets
provides investors and financial analysts with a consistent basis
for comparison across accounting periods and, therefore, are
useful to investors and financial analysts in helping them to
better understand the company's operating results and underlying
operational trends.
-- Although stock-based compensation is an important aspect of the
compensation of the Company's employees and executives,
stock-based compensation expense is generally fixed at the time
of grant, then amortized over a period of several years after the
grant of the stock-based instrument, and generally cannot be
changed or influenced by management after the grant.
-- The Company does not acquire intangible assets on a predictable
cycle. The Company's intangible assets relate solely to business
acquisitions. Amortization costs are fixed at the time of an
acquisition, are then amortized over a period of several years
after the acquisition and generally cannot be changed or
influenced by management after the acquisition.
These non-GAAP financial measures are not prepared in accordance with GAAP. These measures may differ from the non-GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare the Company's performance to that of other companies. There are significant limitations associated with the use of non-GAAP financial measures. The additional non-GAAP financial information presented here should be considered in conjunction with, and not as a substitute for or superior to, the financial information presented in accordance with GAAP (such as net income and earnings per share) and should not be considered measures of the Company's liquidity.
EnerNOC, Inc.
NON-GAAP FINANCIAL MEASURES RECONCILIATION
(in thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
GAAP net income (loss) $ 26,637 $ (3,060) $ 8,374 $(24,496)
ADD: Stock-based
compensation 3,922 2,509 9,996 7,390
ADD: Amortization
expense of acquired
intangible assets 182 208 514 853
-------- -------- -------- --------
Non-GAAP net income (loss) $ 30,741 $ (343) $ 18,884 $(16,253)
======== ======== ======== ========
GAAP net income (loss)
per basic share $ 1.21 $ (0.16) $ 0.40 $ (1.26)
ADD: Stock-based
compensation $ 0.18 $ 0.13 $ 0.48 $ 0.38
ADD: Amortization
expense of acquired
intangible assets $ 0.01 $ 0.01 $ 0.03 $ 0.04
-------- -------- -------- --------
Non-GAAP net income
(loss) per basic share $ 1.40 $ (0.02) $ 0.91 $ (0.84)
======== ======== ======== ========
GAAP net income (loss)
per diluted share $ 1.12 $ (0.16) $ 0.38 $ (1.26)
ADD: Stock-based
compensation $ 0.17 $ 0.13 $ 0.45 $ 0.38
ADD: Amortization
expense of acquired
intangible assets $ 0.01 $ 0.01 $ 0.02 $ 0.04
-------- -------- -------- --------
Non-GAAP net income
(loss) per diluted share $ 1.30 $ (0.02) $ 0.85 $ (0.84)
======== ======== ======== ========