EnerNOC Reports Fourth Quarter and Full Year 2012 Results

EnerNOC Reports Fourth Quarter and Full Year 2012 Results

Raises Guidance for 2013

BOSTON, Feb. 13, 2013 (GLOBE NEWSWIRE) -- EnerNOC, Inc. (Nasdaq:ENOC) (the
"Company"), a leading provider of energy management applications, services and
products, today announced financial results for the fourth quarter and year
ended December 31, 2012.

"I'm proud of how we have positioned the Company over the past two years, and
I am excited about our outlook today," said Tim Healy, Chairman and CEO of
EnerNOC. "We achieved impressive cash flow generation in 2012 that further
enhanced our already strong balance sheet. With increased pricing in PJM, the
emergence of the Australian market as a substantial profit center, and a
number of profitability initiatives in full swing, we expect significant top
and bottom-line growth in 2013. We expect a strong 2013 in which we plan to
deliver at least $0.60 per share in earnings at the low end of our increased
guidance range."

Financial Summary                                              
                                                              
In thousands, except                            Year Ended December 31,
per share amounts
                    Q4 2012       Q4 2011      2012            2011
Revenues             $ 42,314     $26,759     $277,984      $286,608
Net (Loss) Income                                              
                                                              
GAAP                 $(25,792)    $ (28,016)    $(22,293)      $ (13,383)
                                                              
Non-GAAP*            $ (20,391)     $ (23,717)    $ (1,436)       $ 5,937
                                                              
Adjusted EBITDA*     $ (13,899)     $ (20,935)    $ 18,446      $ 25,970
Diluted Net (Loss)
Income per Share                                               
(EPS)
                                                              
GAAP                 $ (0.96)      $ (1.08)      $ (0.84)       $ (0.52)
                                                              
Non-GAAP*            $ (0.76)       $ (0.91)      $ (0.05)        $ 0.22
                                                              
Cash Flow from       $ 18,145     $10,871     $ 31,011     $27,637
Operations
Free Cash Flow*      $14,043      $8,430      $15,157       $10,024
                                                              
*Please refer to the section below titled "Use of Non-GAAP Financial Measures"
for non-GAAP definitions and the financial schedules attached to this press
release for a reconciliation of non-GAAP financial measures to the most
directly comparable GAAP financial measures

Fourth Quarter 2012 and Recent Highlights

  *Increased cash and cash equivalents to $115.0 million from $87.3 million
    as of December 31, 2011.
    
  *Grew EfficiencySMART, SupplySMART and Other revenues by over 20%
    year-over-year, to $33 million.
    
  *Ended 2012 with the following DemandSMART statistics:
    -- 5,900 commercial, institutional, and industrial customers;
    -- 13,700 commercial, institutional, and industrial sites;
    -- 10,300 irrigation load control devices;
    -- Approximately 8,600 Megawatts Under Management; and
    -- Between 24,000 MW - 27,000 MW of Peak Load Under Management ("PLUM"),
    of which 30%-35% was curtailable.
    
  *Ended 2012 with the following EfficiencySMART statistics:
    -- Approximately 2,100 sites with active EfficiencySMART Insight
    deployments, of which over 600 were added in 2012; and
    -- Over 500 active EfficiencySMART services projects.
    
  *Signed new utility contracts with:
    -- TransGrid to provide 35 MW of demand response capacity in Eastern
    Australia;
    -- ERM Power to provide a white-labeled version of DemandSMART and
    EfficiencySMART, targeting 200 MW of demand response capacity in Eastern
    Australia; and
    -- Pacific Gas and Electric and Southern California Edison to provide over
    200 MW of demand response capacity through December 31, 2014.
    
  *Honored with several awards, including the 2012 Platts Global Energy Award
    for Industry Leadership, Deloitte's 2012 Technology Fast 500™, the New
    England Clean Energy Council's Employer of the Year, and CEO of the Year
    by the Mass Technology Leadership Council.

Financial Highlights

Revenues – Revenues for the fourth quarter of 2012 totaled $42.3 million,
compared with $26.8 million in the fourth quarter of 2011, an increase of
58.1%. Revenues for the year ended December 31, 2012 totaled $278.0 million,
compared to $286.6 million for the year ended December 31, 2011, a decrease of
3.0%.

Gross profit – Gross profit for the fourth quarter of 2012 was $14.2 million,
compared with $5.6 million in the fourth quarter of 2011, an increase of
152.6%. Gross profit for the year ended December 31, 2012 was $123.4 million,
compared to $123.4 million for the year ended December 31, 2011, essentially
unchanged.

Gross margin – Gross margin for the fourth quarter of 2012 increased to 33.6%
from 21.0% in the fourth quarter of 2011. Gross margin for the year ended
December 31, 2012 increased to 44.4% from 43.1% for the year ended December
31, 2011.

Operating expenses – Operating expenses for the fourth quarter of 2012 were
$38.1 million, compared with $35.1 million in the fourth quarter of 2011, an
increase of 8.6%. Operating expenses for the year ended December 31, 2012 were
$143.8 million compared with $132.9 million for the year ended December 31,
2011, an increase of 8.2%.

Net loss – GAAP net loss for the fourth quarter of 2012 was $25.8 million,
compared to a net loss of $28.0 million for the fourth quarter of 2011. GAAP
net loss per share for the fourth quarter of 2012 was $0.96 per basic and
diluted share, compared to $1.08 per basic and diluted share for the fourth
quarter of 2011. GAAP net loss for the year ended December 31, 2012 was $22.3
million, compared to a net loss of $13.4 million for the year ended December
31, 2011. GAAP net loss per share for the year ended December 31, 2012 was
$0.84 per basic and diluted share, compared to $0.52 per basic and diluted
share for the year ended December 31, 2011.

Non-GAAP net loss – Excluding stock-based compensation and amortization
expense related to acquired intangible assets, non-GAAP net loss for the
fourth quarter of 2012 was $20.4 million or $0.76 per basic and diluted share,
compared to $23.7 million or $0.91 per basic and diluted share for the fourth
quarter of 2011.Excluding stock-based compensation and amortization expense
related to acquired intangible assets, non-GAAP net loss for the year ended
December 31, 2012 was $1.4 million or $0.05 per basic and diluted share,
compared to non-GAAP net income of $5.9 million or $0.22 per diluted share for
the year ended December 31, 2011. Please refer to the discussion of non-GAAP
financial measures below under "Use of Non-GAAP Financial Measures."

Capital expenditures – Capital expenditures for the fourth quarter of 2012
were $4.1 million representing a 68.0% increase over the fourth quarter of
2011.Capital expenditures for the year ended December 31, 2012 were $15.9
million representing a 10.0% decrease over the year ended December 31, 2011.

Cash and cash equivalents – Cash and cash equivalents as of December 31, 2012
grew to $115.0 million from $87.3 million as of December 31, 2011, primarily
driven by net cash from operating activities.

Financial Outlook

The Company currently expects to deliver the following financial results for
the quarter ending March 31, 2013andthe year ending December 31, 2013:

First Quarter 2013: The Company expects first quarter revenues to be in the
range of $28 million to $34 million. GAAP net loss for the first quarter is
expected to be in the range of $1.05 to $1.20 per basic and diluted share,
based on basic and diluted weighted average shares outstanding of 27.3
million.

Full Year 2013: The Company currently expects full year 2013 revenues to be in
the range of $360 million to $400 million, consistent with the Company's prior
guidance. GAAP net income for 2013 is expected to be in the range of $0.60 to
$0.85 per diluted share, compared to the Company's previously published 2013
guidance range of $0.50 to $0.75 per diluted share. This revised range is
based on diluted weighted average shares outstanding of 29 million compared to
28 million diluted shares used as the basis for the Company's previously
published guidance. Full year 2013 adjusted EBITDA is expected to be in the
range of $62 million to $77 million, compared to the Company's previously
published guidance range of $60 million to $75 million. The Company expects
stock-based compensation expense to be between $13 million and $15 million,
amortization of acquisition related intangibles expense to be approximately $7
million, depreciation expense to be between $21 million and $24 million, and
interest and other expense, net, to be between $0.5 and $1.5 million. The
estimated provision for income taxes is expected to be between $3 million and
$5 million.

These statements are forward-looking and actual results may differ materially.
These statements are based on information available as ofFebruary 13, 2013,
and 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 theSecurities and Exchange Commission.

Webcast Reminder

The Company will host a live webcast and conference call today,February 13,
2013at5:00 p.m., Eastern Time, to discuss the Company's fourth quarter and
full year 2012 operating results, as well as other forward-looking information
about the Company's business. Visit the Investor Relations section
ofEnerNOC'swebsite athttp://investor.enernoc.com/webcasts.cfmfor a live
webcast of the conference call. Domestic callers may access the earnings
conference call by dialing 877-837-3911 (International callers, dial
973-796-5063). 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 855-859-2056 and enter the pass code 48741667) untilFebruary
20, 2013and the webcast will be archived onEnerNOC'swebsite for a period of
twelve months.

AboutEnerNOC

EnerNOC unlocks the full value of energy management for our utility and
commercial, institutional, and industrial (C&I) customers by reducing
real-time demand for electricity, increasing energy efficiency, improving
energy supply transparency in competitive markets, and mitigating emissions.
EnerNOC serves thousands of commercial, intuitional, and industrial customers
worldwide through its suite of energy management applications including:
DemandSMART™, comprehensive demand response; EfficiencySMART™, continuous
energy savings; and SupplySMART™, energy price and risk management. EnerNOC's
Utility Solutions™ offerings, which include Implementation and Consulting
services, have helped hundreds of utilities and grid operators worldwide meet
their demand-side management objectives. Our Network Operations Center (NOC)
offers 24x7x365 customer support. For more information,
visitwww.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 future operational
performance, the market opportunity for the Company's energy management
applications, services and products and the future growth and success of such
applications, services and products in general, may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995 and other federal securities laws. 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" inEnerNOC'smost
recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form
10-Q, as well as other documents that may be filed byEnerNOCfrom time to
time with theSecurities 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.EnerNOCis 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

To supplement the financial measures presented in EnerNOC's press release and
related conference call or webcast in accordance with accounting principles
generally accepted in the United States ("GAAP"), EnerNOC also presents
non-GAAP financial measures relating to non-GAAP net (loss) income, non-GAAP
net (loss) income per share, adjusted EBITDA, and free cash flow.

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 the non-GAAP
measures listed above as additional information relating to EnerNOC's
operating results as a complement to results provided in accordance with GAAP.
The 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 and should not be considered
measures of the Company's liquidity. There are significant limitations
associated with the use of non-GAAP financial measures. Further, 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.

The non-GAAP measures used in this press release and related conference call
or webcast differ from GAAP in that they exclude expenses related to
stock-based compensation, amortization expense related to acquisition-related
intangible assets, as well as in certain measures, the related impact of these
adjustments on the provision for income taxes. In addition, investors should
note the following:

  *EnerNOC defines "non-GAAP net (loss) income" as net (loss) income before
    expenses related to stock-based compensation and amortization expenses
    related to acquisition-related intangible assets, net of related tax
    effects.
    
  *EnerNOC defines "Adjusted EBITDA" as net loss, excluding depreciation,
    amortization, stock-based compensation, interest, income taxes and other
    income (expense). Adjusted EBITDA eliminates items that are either not
    part of the Company's core operations or do not require a cash outlay,
    such as stock-based compensation. Adjusted EBITDA also excludes
    depreciation and amortization expense, which is based on the Company's
    estimate of the useful life of tangible and intangible assets. These
    estimates could vary from actual performance of the asset, are based on
    historic cost incurred to build out the Company's deployed network, and
    may not be indicative of current or future capital expenditures.
    
  *EnerNOC defines "free cash flow" as net cash provided by operating
    activities less capital expenditures. EnerNOC defines "capital
    expenditures" as purchases of property and equipment, which includes
    capitalization of internal-use software development costs.

EnerNOC's management uses these non-GAAP measures when evaluating the
Company's operating performance and for internal planning and forecasting
purposes. EnerNOC's management believes that such measures help indicate
underlying trends in the Company's business, are important in comparing
current results with prior period results, and are useful to investors and
financial analysts in assessing the Company's operating performance. For
example, EnerNOC's management considers non-GAAP net loss or income to be an
important indicator of the overall performance of the Company because it
eliminates certain of the more significant effects of its acquisitions and
related activities and non-cash compensation expenses. In addition, EnerNOC's
management considers adjusted EBITDA to be an important indicator of the
Company's operational strength and performance of its business and a good
measure of the Company's historical operating trend. Moreover, EnerNOC's
management considers free cash flow to be an indicator of the Company's
operating trend and performance of its business.

EnerNOC, Inc.
SELECTED FINANCIAL INFORMATION
(in thousands, except share and per share data)
                                                               
EnerNOC, Inc.
Consolidated Statements of Operations
(Unaudited)
                                                               
                              Three Months Ended      Twelve Months Ended
                              December 31,            December 31,
                              2012        2011        2012        2011
                                                               
Revenues                                                        
DemandSMART                    $31,266   $18,882   $244,852  $259,150
EfficiencySMART, SupplySMART   11,048     7,877      33,132     27,458
and other
Total Revenues                 42,314     26,759     277,984    286,608
Cost of revenues               28,103     21,132     154,540    163,211
Gross profit                   14,212     5,627      123,444    123,397
                                                               
Operating expenses:                                             
Selling and marketing          14,621     12,109     55,963     51,907
General and administrative     18,763     18,601     71,643     66,773
Research and development       4,690      4,362      16,226     14,254
Total operating expenses       38,074     35,072     143,832    132,934
(Loss) income from operations  (23,863)   (29,445)   (20,388)   (9,537)
Other income (expense)        141        1,498      1,457      (987)
Interest expense               (394)      (255)      (1,591)    (1,053)
(Loss) income before income    (24,116)   (28,202)   (20,522)   (11,577)
tax
Benefit from (provision for)   (1,676)    186        (1,771)    (1,806)
income tax
Net (loss) income              $ (25,792) $(28,016)  $(22,293)  $(13,383)
                                                               
(Loss) earnings per share:                                      
Basic                          $(0.96)    $(1.08)    $(0.84)    $(0.52)
Diluted                        $(0.96)    $(1.08)    $(0.84)    $(0.52)
                                                               
Weighted average number of                                      
common shares outstanding
Basic                          26,791,280 26,001,088 26,551,234 25,799,494
Diluted                        26,791,280 26,001,088 26,551,234 25,799,494

                                                                  
EnerNOC,Inc.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
                                                                  
                                                        December 31,
                                                        2012       2011
Assets                                                             
Current assets                                                     
Cash and cash equivalents                                $115,041 $87,297
Restricted cash                                          9         158
Trade accounts receivable, net of allowance for doubtful
accounts of $487 and $192 at December 31, 2012 and 2011, 43,250    23,977
respectively
Unbilled revenue                                         45,269    64,448
Capitalized incremental direct customer contract costs   10,226    5,416
Deposits                                                 2,296     14,050
Prepaid expenses and other current assets                4,640     7,257
Total current assets                                     220,731   202,603
Long-term assets                                                   
Property and equipment, net of accumulated depreciation
of $67,909 and $51,400 at December 31, 2012 and 2011,    32,592    36,636
respectively
Goodwill                                                 79,505    79,213
Customer relationship intangible assets, net             21,709    26,993
Other definite-lived intangible assets, net              3,915     5,524
Capitalized incremental direct customer contract costs,  3,929     3,056
long-term
Deposits and other assets                                826       1,235
Total assets                                             $363,207 $355,260
Liabilities and Stockholders' Equity                               
Current liabilities                                                
Accounts payable                                         $3,976   $3,799
Accrued capacity payments                                49,258    58,332
Accrued payroll and related expenses                     13,044    11,937
Accrued expenses and other current liabilities           8,978     6,107
Accrued performance adjustments                          685       6,045
Deferred revenue                                         28,105    10,544
Total current liabilities                                104,046   96,764
Deferred acquisition consideration                       533       500
Accrued acquisition contingent consideration             431       336
Deferred tax liability                                   4,222     2,646
Deferred revenue                                         11,837    6,810
Other liabilities                                        2,116     464
Total long-term liabilities                              19,139    10,756
Commitments and contingencies (Note 12)                  --       --
Stockholders' equity                                               
Undesignated preferred stock, $0.001 par value;          --       --
5,000,000 shares authorized; no shares issued
Common stock, $0.001 par value; 50,000,000 shares
authorized, 29,019,923 and 27,306,548 shares issued and  29        27
outstanding at December 31, 2012 and 2011, respectively
Additional paid-in capital                               344,137   329,817
Accumulated other comprehensive loss                     (702)     (955)
Accumulated deficit                                      (103,442) (81,149)
Total stockholders' equity                               240,022   247,740
Total liabilities and stockholders' equity               $363,207 $355,260

                                                   
EnerNOC, Inc.
Cash Flow Information
(Unaudited)
                                                   
                                        Year Ended December 31,
                                        2012        2011
                                                   
Cash provided by operating activities    $31,011   $27,637
Cash used in investing activities        (3,585)    (95,516)
Cash provided by financing activities    356        1,997
Effects of exchange rate changes on cash (38)       (237)
Net change in cash and cash equivalents  $27,744   $(66,119)

                                                              
EnerNOC, Inc.
RECONCILIATION OF NON-GAAP MEASURES TO NEAREST GAAP MEASURES
(Unaudited)
                                                              
Reconciliation of Non-GAAP Net (Loss) Income and Net (Loss) Income per Share
                                                              
                         Three Months Ended         Twelve Months Ended
                         December 31,               December 31,
                         2012          2011         2012         2011
                                                              
GAAP Net (loss) income    $(25,792)    $(28,016)   $(22,293)   $(13,383)
ADD: Stock-based          3,598        2,976       13,616      13,464
compensation
ADD: Amortization expense
of acquired intangible    1,803        1,323       7,241       5,856
assets
LESS: Income tax effect
of Non-GAAP adjustments   --          --         --         --
(1)
Non-GAAP Net (loss)       $(20,391)    $(23,717)   $(1,436)    $5,937
income
                                                              
GAAP Net (loss) earnings  $(0.96)      $(1.08)     $(0.84)     $(0.52)
per basic share
ADD: Stock-based          0.14         0.12        0.51        0.52
compensation
ADD: Amortization expense
of acquired intangible    0.07         0.05        0.28        0.23
assets
LESS: Income tax effect
of Non-GAAP               --          --         --         --
adjustments(1)
Non-GAAP Net (loss)       $(0.75)      $(0.91)     $(0.05)     $0.23
income per basic share
                                                              
GAAP Net (loss) earnings  $(0.96)      $(1.08)     $(0.84)     $(0.52)
per diluted share
ADD: Stock-based          0.14         0.12        0.51        0.52
compensation
ADD: Amortization expense
of acquired intangible    0.07         0.05        0.28        0.23
assets
LESS: Income tax effect
of Non-GAAP               --          --         --         --
adjustments(1)
LESS: Dilutive impact on
weighted average common   --          --         --         (0.01)
stock equivalents
Non-GAAP Net (loss)       $(0.75)      $(0.91)     $(0.05)     $0.22
income per diluted share
                                                              
Weighted average number
of common shares                                               
outstanding
Basic                     26,791,280   26,001,088  26,551,234  25,799,494
Diluted                   26,791,280   26,001,088  26,551,234  26,766,359
                                                              
(1)The non-GAAP adjustments would have no impact on the (provision for)
benefit from income taxes recorded for the three months
or year ended December 31, 2012 or 2011, respectively.


                                                                
Reconciliation of Adjusted EBITDA
                                                                
                                                                
                                  Three Months Ended    Twelve Months Ended
                                  December 31,          December 31,
                                  2012       2011       2012       2011
                                                                
Net (loss) income                  $(25,792) $(28,016) $(22,293) $(13,383)
Add back:                                                        
Depreciation and amortization      6,366     5,534     25,218    22,043
Stock-based compensation expense   3,598     2,976     13,616    13,464
Other (expense) income             (141)     (1,498)   (1,457)   987
Interest expense                   394       255       1,591     1,053
(Benefit from) provision for       1,677     (186)     1,771     1,806
income tax
Adjusted EBITDA                    $(13,898) $(20,935) $18,446   $25,970

                                                               
Reconciliation of Free Cash Flow
                                                               
                          Three Months Ended December Year Ended December 31,
                           31,
                          2012          2011        2012       2011
Net cash provided by       $ 18,145    $ 10,871  $ 31,011 $ 27,637
operating activities
Subtract:                                                       
Purchases of property and  (4,102)        (2,441)      (15,854)    (17,613)
equipment
Free cash flow            $ 14,043      $ 8,430     $ 15,157   $ 10,024 

CONTACT: Media and Investor Relations:
         Sarah McAuley
         (617) 532.8195
         news@enernoc.com
         ir@enernoc.com

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