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PowerSecure Reports Second Quarter 2014 Results

WAKE FOREST, N.C., Aug. 6, 2014 /PRNewswire/ -- PowerSecure International, Inc. (NYSE: POWR) today reported its second quarter 2014 results. Highlights include:

  • Second quarter 2014 revenues of $57.1 million
  • Gross margin of 25.1 percent
  • GAAP EPS of ($0.12
  • Record backlog grows to $349 million

"The significant new business we have won recently has driven our backlog to an all-time high of $349 million and provides us with an outstanding foundation for 2015," said Sidney Hinton, chief executive officer of PowerSecure.

"We have made excellent progress over the last three months, as we renegotiated a major utility customer contract, added substantially to our distributed generation backlog, including our first distributed generation sale to an ESCO customer, and completed our LED manufacturing transition to support the higher lighting margins we began to see this quarter," Hinton added. 

Second Quarter 2014:

PowerSecure's second quarter 2014 (2Q 2014) revenues were $57.1 million, a decrease of $13.1 million, or 18.7 percent, from the second quarter of 2013 (2Q 2013), driven by a 5.4 percent year-over-year (y-o-y) decrease in revenues from distributed generation products, a 21.1 percent y-o-y decrease in revenues from utility infrastructure products and services and a 30.8 percent y-o-y decrease in revenues from energy efficiency products and services. The following table sets forth the revenues by product and service category (segment) for 2Q14 and 2Q13, and the y-o-y variance.



Quarter Ended


Period-over-Period




June 30,


Difference




2014


2013


$


%



Segment Revenues:













Distributed Generation

$

22,313


$

23,581



(1,268)


(5.4)



Utility Infrastructure


23,770



30,111



(6,341)


(21.1)



Energy Efficiency


11,407



16,495



(5,088)


(30.8)



Intersegment Eliminations


(421)



-



(421)


n/m



Total

$

57,069


$

70,187


$

(13,118)


(18.7)















 

Gross margin as a percentage of revenue was 25.1 percent in 2Q 2014 compared to 28.3 percent in 2Q 2013.  As expected, the y-o-y gross margin decrease was driven primarily by inefficiencies in the utility infrastructure segment due to lower revenues, and unfavorable pricing and service assignments with a major utility customer in that segment.  This caused higher levels of personnel and equipment cost in the company's cost of goods sold as a percentage of revenues. In June 2014, the service arrangement with the utility customer was modified to improve the terms of our ongoing service.  In addition, increases in gross margins in the energy efficiency segment, driven by efficiency gains in LED lighting sourcing and manufacturing, offset a decline in the gross profit margin of the distributed generation segment which was driven by lower revenues and year-over-year differences in the projects completed during each period.

Operating expenses for 2Q 2014 were $18.3 million, compared to $16.4 million in 2Q 2013.  The $1.9 million y-o-y increase in operating expenses was primarily due to an increase in selling expenses due to additional sales executives and commission expense, increases in general and administrative expense due to increases in personnel, stock compensation expense, insurance and professional fees to support our growing business platforms, and depreciation and amortization from our investments in utility infrastructure equipment and company-owned distributed generation systems, and acquisition-related intangibles. 

Diluted GAAP earnings per share (EPS) was a loss of $0.12 in 2Q 2014, compared to income of $0.11 in 2Q 2013. Non-GAAP EPS in 2Q 2013 was income of $0.12

Results from 2Q 2013 include $0.5 million of acquisition costs primarily related to the acquisition of Solais, and are adjusted in the 2Q 2013 non-GAAP EPS calculation (see non-GAAP discussion and reconciliation, below).  

The company completed the second quarter of 2014 with $41.3 million in cash, no cash drawn on its revolving credit facility, and term debt and capital leases of $24.9 million.  Subsequent to the quarter, a $12 million letter of credit was issued under the company's revolving credit facility to support the bonding for two major new solar energy projects, which are expected to generate $120 million of revenue. The company expects to recognize approximately half of the revenue from the two major solar projects in 2015, and the remainder in 2016.

The company's capital expenditures during 2Q 2014 were $3.3 million, with $2.3 million of this capital invested to deploy systems to support PowerSecure-owned long-term recurring revenue distributed generation projects, and the remaining $1.0 million primarily invested in the purchase of equipment for its utility infrastructure business. 

PowerSecure Segment Results:

Distributed Generation 

Distributed generation revenues in 2Q 2014 of $22.3 million reflect a 5.4 percent decrease versus 2Q 2013. DG gross margin in 2Q 2014 was 32.4 percent compared to 36.7 percent in the same period last year. 

The revenue decrease was driven by a longer sales cycle surrounding newer large scale opportunities and a reduction in the number of smaller and medium sized projects generating revenue in 2Q 2014, partially offset by new sales from hospitals, data center, industrial and retail customers. The decrease in gross margin was due to the reduction in revenue, combined with year-over-year differences in the gross profit margins of individual projects.  

Utility Infrastructure

Utility Infrastructure revenues in 2Q 2014 of $23.8 million reflect a 21.1 percent decrease versus 2Q 2013. Utility infrastructure gross margin in 2Q 2014 decreased to 14.8 percent from 23.9 percent in 2Q 2013. This represents a sequential increase of 4.9 percentage points in our UI gross margin from 1Q 2014, and compares to an average quarterly gross margin of 19.5 percent for UI revenues in full year 2013.

This year-over-year gross profit margin decrease in UI was driven primarily by the continuing effect of inefficiencies in our utility services group, due to lower revenues and the previously reported unfavorable pricing and service assignments with one of our major utility customers.  These unfavorable terms caused us to incur higher levels of personnel and equipment costs in our cost of goods sold as a percentage of our revenues, driving the gross profit margin on our utility services revenue to 10.3 percent for 2Q 2014, and our overall UI segment gross profit margin to 14.8 percent.  This compares to a UI segment gross profit margin of 23.9 percent in 2Q 2013.  In June 2014, the company announced that it successfully modified the service arrangement with the major utility customer that was driving decreases in its gross margins to improve the terms of its ongoing service.  The modifications include adjustments to pricing, work assignments, and expected improvements in the ongoing scope of work. Based on these improvements, and the new mix of work expected to be allocated, the company believes these changes will restore the profitability of the work it provides to this utility and provide a solid platform to continue serving, and potentially expanding, its work for this customer. Consistent with these contract modifications and its prior financial outlook, the company expects UI gross margin to increase in the second half of 2014 compared to the first half of 2014.

Energy Efficiency

Energy Efficiency revenues in 2Q 2014 of $11.4 million reflect a 30.8 percent decrease versus 2Q 2013. EE gross margin in 2Q 2014 increased to 31.4 percent from 24.4 percent last year.  

The decrease in EE revenues was driven by a 54.2 percent y-o-y decrease in sales to ESCO customers due to difficult y-o-y comparisions. In 2Q 2013, the company recognized a significant $12 million in ESCO revenue from existing customer contracts in the first quarter after the acquisition of its ESCO business. The primary drivers for the increase in EE gross margin were increases in the gross margin of our ESCO business and our LED solutions. The gross margin for our LED solutions was 36.5 percent in 2Q 2014, compared to 31.0 percent in 2Q 2013. The increase in our LED lighting gross margin was driven primarily by the successful completion of our LED lighting restructuring, including decreases in cost of goods sold as a result of transitioning to a more efficient sourcing and manufacturing process.

Backlog

The company's revenue backlog stands at a record $349 million, as of the date of this release.  This includes new business from awards announced on July 23, 2014 and July 30, 2014.  The company's revenue backlog represents revenue expected to be recognized after June 30, 2014, for periods including the third quarter of 2014 onward. 

This backlog figure compares to the revenue backlog of $225 million announced in the company's first quarter 2014 earnings release issued on May 7, 2014, which represented revenue expected to be recognized after March 31, 2014, and $245 million in revenue backlog announced in the company's 2Q 2013 earnings release issued on August 7, 2013. 

The company's $349 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 underlying contracts:

Revenue Backlog expected to be recognized after June 30, 2014





Anticipated

Estimated Primary


Description

Revenue

Recognition Period






Project-based Revenue -- Near term

$131 million

3Q14 through 1Q15


Project-based Revenue -- Long term

$148 million

2Q15 through 2016


Recurring Revenue

$70 million

3Q14 through 2020


Revenue Backlog expected to be recognized after June 30, 2014

$349 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 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, and estimates are utilized in the determination of the backlog amounts.  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.

Conference Call Information

The company will host a conference call commencing today at 8:30 a.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.  The call can also be accessed by dialing 888-680-0892 (or 617-213-4858 if dialing internationally) and providing passcode 76455815.  If you are unable to participate during the live webcast, a replay of the conference call will be available approximately two hours after the completion of the call through midnight on August 20, 2014. To listen to the replay, dial 888-286-8010 (or 617-801-6888 if dialing internationally), and enter passcode 11903095. 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 utility and energy technologies to electric utilities, and their industrial, institutional and commercial customers.  The company is a pioneer in developing Interactive Distributed Generation® power systems which provide the most reliable backup power in the industry and sophisticated smart grid capabilities which enable the company to forecast electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly, power at peak power times. This approach provides utilities with dedicated electric power generation capacity to utilize for demand response purposes and can provide customers with significant economic returns on their backup power investment.  Its proprietary distributed generation system designs utilize a range of technologies to deliver power, including renewables. The company's energy efficiency segment develops energy efficient lighting technologies that improve the quality of light, including its proprietary Solais®, EfficientLights® and EnergyLite® LED products for retail, supermarket, commercial, museum and outdoor applications, and it provides Energy Efficiency Services to super ESCOs.  PowerSecure's utility infrastructure segment provides electric utilities with transmission and distribution infrastructure maintenance and construction services, and engineering and regulatory consulting services.  Additional information is available at www.powersecure.com.

Forward-Looking Statements

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; the company's cost reduction plan; 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 are difficult to predict and 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 company's ability to successfully and timely execute the recently announced large solar distributed generation projects and related contracts and the risks of the conditions to such projects not being satisfied or of the company incurring liquidated damages or other liabilities under those contracts;  the potential adverse financial and reputational consequences that can result from safety risks and hazards such as accidents inherent in the company's operations; the impact of the company's recent acquisitions of the ESCO business, the Solais business, and the commercial and industrial solar business; the company's ability to reduce and control its costs and expenses; 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, including but not limited to the recently filed securities class action litigation; 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, copies of which may be obtained by visiting the investor relations page of the company's website at www.powersecure.com or the SEC's website at www.sec.gov.

Accordingly, there is 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:

John Bluth

PowerSecure International, Inc.

(919) 453-2103

 

 






























POWERSECURE INTERNATIONAL, INC. AND SUBSIDIARIES



CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)



(in thousands, except per share data)




Three Months Ended


Six Months Ended




June 30,


June 30,




2014


2013


2014


2013



Revenues

$

57,069


$

70,187


$

109,866


$

115,144



Cost of sales (excluding depreciation and amortization)


42,738



50,304



84,494



81,521



Gross profit


14,331



19,883



25,372



33,623



Operating expenses:














General and administrative


13,670



12,511



26,714



22,343



Selling, marketing and service


2,466



2,105



4,475



3,490



Depreciation and amortization


2,137



1,809



4,315



3,265



Restructuring charges


-



-



427



-



Total operating expenses


18,273



16,425



35,931



29,098



Operating income (loss)


(3,942)



3,458



(10,559)



4,525



Other income and (expenses):














Interest income and other income


5



19



9



40



Interest expense


(292)



(130)



(592)



(235)



Income (loss) before income taxes


(4,229)



3,347



(11,142)



4,330



Income tax expense (benefit)


(1,481)



1,305



(4,135)



1,679



Net income (loss)


(2,748)



2,042



(7,007)



2,651



Net loss attributable to non-controlling interest


-



57



-



181



Net income (loss) attributable to PowerSecure International, Inc.

$

(2,748)


$

2,099


$

(7,007)


$

2,832

















Earnings (loss) per share attributable to














PowerSecure International, Inc. common stockholders:














Basic

$

(0.12)


$

0.11


$

(0.32)


$

0.15



Diluted 

$

(0.12)


$

0.11


$

(0.32)


$

0.15

















Weighted average common shares














outstanding during the period:














Basic


22,346



19,024



22,164



18,635



Diluted 


22,346



19,357



22,164



18,941
















 

 


















POWERSECURE INTERNATIONAL, INC. AND SUBSIDIARIES



CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)



(in thousands, except share data)




June 30,


December 31,



Assets

2014


2013



Current Assets:








Cash and cash equivalents

$

41,312


$

50,915



Trade receivables, net of allowance for doubtful accounts








of $792 and $544, respectively


81,913



89,801



Inventories


21,062



16,864



Income taxes receivable


5,267



1,045



Deferred tax asset, net


5,368



5,368



Prepaid expenses and other current assets


3,348



2,235



Total current assets


158,270



166,228











Property, plant and equipment:








Equipment


59,438



56,706



Furniture and fixtures


582



572



Land, building and improvements


6,277



6,134



Total property, plant and equipment, at cost


66,297



63,412



Less accumulated depreciation and amortization


19,809



17,467



Property, plant and equipment, net


46,488



45,945











Other assets:








Goodwill


30,226



30,226



Restricted annuity contract


3,137



3,137



Intangible rights and capitalized software costs, net of








accumulated amortization of $6,075 and $4,955, respectively


7,906



8,715



Other assets


2,054



1,240



Total other assets


43,323



43,318











Total Assets

$

248,081


$

255,491










 

 


















POWERSECURE INTERNATIONAL, INC. AND SUBSIDIARIES



CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)



(in thousands, except share data)




June 30,


December 31,



Liabilities and Stockholders' Equity

2014


2013



Current liabilities:








Accounts payable

$

28,039


$

24,299



Accrued and other liabilities


27,301



31,195



Accrued restructuring liabilities


361



965



Current portion of long-term debt


3,731



3,731



Current portion of capital lease obligation


961



935



Total current liabilities


60,393



61,125











Long-term liabilities:








Revolving line of credit


-



-



Long-term debt, net of current portion


19,697



21,563



Capital lease obligation, net of current portion


500



986



Deferred tax liability, net


8,846



8,865



Other long-term liabilities


3,525



3,365



Total long-term liabilities


32,568



34,779











Commitments and contingencies
















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; 50,000,000 shares








authorized; 22,349,542 and 21,945,720 shares








issued and outstanding, respectively


223



219



Additional paid-in-capital


159,969



157,401



Retained earnings (deficit)


(4,956)



2,051



Accumulated other comprehensive income (loss)


(116)



(84)



Total stockholders' equity


155,120



159,587











Total Liabilities and Stockholders' Equity

$

248,081


$

255,491










 

 


















POWERSECURE INTERNATIONAL, INC. AND SUBSIDIARIES



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)



(in thousands)




Six Months




Ended June 30,




2014


2013



Cash flows from operating activities:








Net income (loss)

$

(7,007)


$

2,651



Adjustments to reconcile net income (loss) to net cash








used in operating activities:








Depreciation and amortization


4,315



3,265



Stock compensation expense


893



289



(Gain) loss on disposal of miscellaneous assets


(92)



14



Changes in operating assets and liabilities, net of








effect of acquisitions:








Trade receivables, net


7,888



(11,025)



Inventories


(3,796)



(7,353)



Other current assets and liabilities


(5,336)



1,480



Other noncurrent assets and liabilities


(704)



(520)



Accounts payable


3,740



9,291



Accrued and other liabilities


(3,894)



(1,869)



Accrued restructuring liabilities


(604)



(349)



Net cash used in operating activities


(4,597)



(4,126)











Cash flows from investing activities:








Acquisitions, net of cash acquired


-



(9,542)



Purchases of property, plant and equipment


(4,501)



(3,856)



Additions to intangible rights and software development


(318)



(319)



Proceeds from sale of property, plant and equipment


460



-



Net cash used in investing activities


(4,359)



(13,717)











Cash flows from financing activities:








Borrowings (payments) on revolving line of credit


-



-



Proceeds from long-term borrowings


-



25,000



Principal payments on long-term borrowings


(1,866)



(80)



Principal payments on capital lease obligations


(460)



(437)



Repurchases of common stock


(366)



(9)



Proceeds from stock option exercises


2,045



900



Net cash provided by (used in) financing activities


(647)



25,374



NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS


(9,603)



7,531



CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD


50,915



19,122



CASH AND CASH EQUIVALENTS AT END OF PERIOD

$

41,312


$

26,653


























 

 

Non-GAAP Pro forma Financial Measures Discussion:

Our references to our second quarter 2013 "Non-GAAP Pro forma" financial measures of 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 in this report constitute non-GAAP financial measures. They refer to our GAAP results, adjusted to show the results without the 2Q 2013 acquisition expenses primarily related to Solais (and to a lesser extent our ESCO, PowerLine, IES, and PowerSecure Solar transactions).

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 operating performance with the same consistent financial context. These non-GAAP pro forma measures also correspond with the way we expect Wall Street analysts to compare our results. 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.

References to our second quarter and year-to-date 2013 Adjusted EBITDA, which we define as our earnings before interest, taxes, depreciation and amortization, and charges, as discussed and shown in this release, constitutes a non-GAAP "pro forma" financial measure. 

We believe that Adjusted EBITDA, as a non-GAAP pro forma financial measure, provides meaningful information to investors in terms of enhancing their understanding of our operating performance and results, as it allows investors to more easily compare our financial performance on a consistent basis compared to the prior year periods.  This non-GAAP financial measure also corresponds with the way we expect investment analysts to evaluate and compare our results.  Any non-GAAP pro forma financial measures should be considered only as supplements to, and not as substitutes for or in isolation from, or superior to, our other measures of financial information prepared in accordance with GAAP, such as net income attributable to PowerSecure International, Inc.

We define and calculate Adjusted EBITDA as net income attributable to PowerSecure International, Inc., minus: 1) the gain on the sale of our unconsolidated affiliate, 2) discontinued operations and 3) interest income and other income, plus: 4) restructuring charges, 5) acquisition expenses, 6) income tax expense (or minus an income tax benefit), 7) interest expense, 8) depreciation and amortization and 9) stock compensation expense.  We disclose Adjusted EBITDA because we believe it is a useful metric by which to compare the performance of our business from period to period.  We understand that measures similar to Adjusted EBITDA are broadly used by analysts, rating agencies, investors and financial institutions in assessing our performance.  Accordingly, we believe that the presentation of Adjusted EBITDA provides useful information to investors.  The table below provides a reconciliation of Adjusted EBITDA to net income attributable to PowerSecure International, Inc., the most directly comparable GAAP financial measure.

 

PowerSecure International, Inc.






Non-GAAP Pro forma Measures






($000's except per share data, some rounding throughout)


















Three Months Ended June 30, 2013


As Reported 2Q13


Acquisition Expenses


Pro forma 2Q13







Operating expenses






     General and administrative

12,511


(452)


12,059

     Selling, marketing, and service

2,105




2,105

     Depreciation and amortization

1,809




1,809

     Restructuring charges

0


0


0

Total operating expenses

16,425


(452)


15,973

Total operating exp % rev

23.4%




22.8%







Operating income (loss)

3,458


452


3,910

Operating income % rev

4.9%




5.6%













Income (loss) before income taxes

3,347


452


3,799

Income tax expense (benefit)

1,305


176


1,481







Net income (loss)

2,042


276


2,318







Net income (loss)

2,042


276


2,318

Net loss attributable to noncontrolling interest

57




57

Net income (loss) attributable to PowerSecure International, Inc.

2,099


276


2,375













EARNINGS PER SHARE AMOUNTS ("E.P.S") ATTRIBUTABLE TO




POWERSECURE INTERNATIONAL, INC. SHAREHOLDERS:











     Net Income






     Basic

0.11


0.01


0.12

     Diluted

0.11


0.01


0.12







 

 

PowerSecure International, Inc.








Non-GAAP Pro forma Measures








Adjusted EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization, and Charges)

Calculations and Reconciliation








($000's except per share data, some rounding throughout)
















Three Months Ended


Six Months Ended


June 30,


June 30,


June 30,


June 30,


2014


2013


2014


2013









Adjusted EBITDA Calculation/Reconciliation








Net income (loss) attributable to PowerSecure International, Inc.

(2,748)


2,099


(7,007)


2,832









Items to Subtract from Net Income








Interest income and other income

(5)


(19)


(9)


(40)









Items to Add to Net Income








Restructuring Charges - Cost of Sales

0


0


312


0

Restructuring Charges - Op Expense

0


0


427


0

Acquisition Expenses

0


452


0


531

Income tax expense (benefit)

(1,481)


1,305


(4,135)


1,679

Interest expense

292


130


592


235

Depreciation and Amortization

2,137


1,809


4,315


3,265

Stock compensation expense

615


148


893


289









Adjusted EBITDA

(1,190)


5,924


(4,612)


8,791









 

SOURCE PowerSecure International, Inc.

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The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at Internet of @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, will discuss how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money! Speaker Bio: ...
Compute virtualization has been transformational, yet security policy implementation and enforcement has lagged behind in agility and automation. There are a number of key considerations when implementing policy in private and hybrid clouds. In his session at 15th Cloud Expo, Holland Barry, VP of Technology at Catbird, will discuss the impact of this new paradigm and what organizations can do today to safely move to software-defined network and compute architectures, including: How normal ope...
Samsung VP Jacopo Lenzi, who headed the company's recent SmartThings acquisition under the auspices of Samsung's Open Innovaction Center (OIC), answered a few questions we had about the deal. This interview was in conjunction with our interview with SmartThings CEO Alex Hawkinson. IoT Journal: SmartThings was developed in an open, standards-agnostic platform, and will now be part of Samsung's Open Innovation Center. Can you elaborate on your commitment to keep the platform open? Jacopo Lenzi: S...
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic • Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff hap...
SYS-CON Events announced today that SOA Software, an API management leader, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. SOA Software is a leading provider of API Management and SOA Governance products that equip business to deliver APIs and SOA together to drive their company to meet its business strategy quickly and effectively. SOA Software’s technology helps businesses to accel...
SYS-CON Events announced today that Utimaco will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Utimaco is a leading manufacturer of hardware based security solutions that provide the root of trust to keep cryptographic keys safe, secure critical digital infrastructures and protect high value data assets. Only Utimaco delivers a general-purpose hardware security module (HSM) as a customiz...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
SYS-CON Events announced today that ElasticBox is holding a Hackathon at DevOps Summit, November 6 from 12 pm -4 pm at the Santa Clara Convention Center in Santa Clara, CA. You can enter as an individual or team of up to 10 developers. A New Star Is Born Every Month! All completed ElasticBoxes will then be sent to a judging panel - 12 winners will be featured on the ElasticBox website in 2015. All entrants will receive five full enterprise licenses for one year + ElasticBox headphones + Elasti...
Once the decision has been made to move part or all of a workload to the cloud, a methodology for selecting that workload needs to be established. How do you move to the cloud? What does the discovery, assessment and planning look like? What workloads make sense? Which cloud model makes sense for each workload? What are the considerations for how to select the right cloud model? And how does that fit in with the overall IT tranformation? In his session at 15th Cloud Expo, John Hatem, head of V...
Cloud services are the newest tool in the arsenal of IT products in the market today. These cloud services integrate process and tools. In order to use these products effectively, organizations must have a good understanding of themselves and their business requirements. In his session at 15th Cloud Expo, Brian Lewis, Principal Architect at Verizon Cloud, will outline key areas of organizational focus, and how to formalize an actionable plan when migrating applications and internal services to...
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, will discuss how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP ...
Ixia develops amazing products so its customers can connect the world. Ixia helps its customers provide an always-on user experience through fast, secure delivery of dynamic connected technologies and services. Through actionable insights that accelerate and secure application and service delivery, Ixia's customers benefit from faster time to market, optimized application performance and higher-quality deployments.
SYS-CON Events announced today that Calm.io has been named “Bronze Sponsor” of DevOps Summit Silicon Valley, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Calm.io is a cloud orchestration platform for AWS, vCenter, OpenStack, or bare metal, that runs your CL tools puppet, Chef, shell, git, Jenkins, nagios, and will soon support New Relic and Docker. It can run hosted, or on premise and provides VM automation / expiry, self-service portals,...
In her General Session at 15th Cloud Expo, Anne Plese, Senior Consultant, Cloud Product Marketing, at Verizon Enterprise, will focus on finding the right mix of renting vs. buying Oracle capacity to scale to meet business demands, and offer validated Oracle database TCO models for Oracle development and testing environments. Anne Plese is a marketing and technology enthusiast/realist with over 19+ years in high tech. At Verizon Enterprise, she focuses on driving growth for the Verizon Cloud pla...
SYS-CON Events announced today that Aria Systems, the recurring revenue expert, has been named "Bronze Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Aria Systems helps leading businesses connect their customers with the products and services they love. Industry leaders like Pitney Bowes, Experian, AAA NCNU, VMware, HootSuite and many others choose Aria to power their recurring revenue bu...
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce t...
As Platform as a Service (PaaS) matures as a category, developers should have the ability to use the programming language of their choice to build applications and have access to a wide array of services. Bluemix is IBM's open cloud development platform that enables users to easily build cloud-based, creative mobile and web applications without having to spend large amounts of time and resources on configuring infrastructure and multiple software licenses. In this track, you will learn about the...
Blue Box has closed a $10 million Series B financing. The round was led by a strategic investor and included participation from prior investors including Voyager Capital and Founders Collective, as well as the Blue Box executive team. This round follows a $4.3 million Series A closed in December of 2012 and led by Voyager Capital. In May of this year, the company announced general availability of its private cloud as a service offering, Blue Box Cloud. Since that release, the company has dem...
SYS-CON Events announced today that Verizon has been named "Gold Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Verizon Enterprise Solutions creates global connections that generate growth, drive business innovation and move society forward. With industry-specific solutions and a full range of global wholesale offerings provided over the company's secure mobility, cloud, strategic network...
SimpleECM is the only platform to offer a powerful combination of enterprise content management (ECM) services, capture solutions, and third-party business services providing simplified integrations and workflow development for solution providers. SimpleECM is opening the market to businesses of all sizes by reinventing the delivery of ECM services. Our APIs make the development of ECM services simple with the use of familiar technologies for a frictionless integration directly into web applicat...