World Energy Solutions Provides Update on Progress of Q4 & Fiscal 2012
WORCESTER, Mass., March 13, 2013 (GLOBE NEWSWIRE) -- In follow up to its
recent announcement postponing its fourth quarter and fiscal 2012 financial
results and conference call, World Energy Solutions, Inc. (Nasdaq:XWES) today
provided additional details on the cause of the delay.
The Company is currently evaluating its revenue recognition policy for its
mid-market product line, an area the Company entered with its acquisition of
GSE Consulting (GSE) on October 31, 2011.
The review is primarily focused on the timing of revenue recognized from
up-front commissions received from mid-market energy suppliers. As currently
reported, such commissions represent approximately 10 percent of World
Energy's consolidated revenues for the nine months ended September 30, 2012
and approximately 3 percent of consolidated revenues for the year ended
December 31, 2011.
Under its accounting policies in effect at the time, World Energy recognized
revenue from these up-front commissions as cash was received from the energy
supplier. As a result of this review, the Company is in the process of
determining the appropriate periods in which such commissions should be
recorded. The Company believes it may be appropriate to record these revenues
over the energy flow period similar to its other Retail electricity product
lines, to the extent that actual energy usage is available or can be reliably
estimated. If not, the recognition of revenue may be deferred to the end of
the contract period. Regardless of the timing of revenue recognition, there
would be no impact on the cash received by the Company.
The impact of the contemplated adjustments would be to defer the recording of
revenue from historic periods to future periods. As part of this process, the
Company is conducting, but has not completed, an analysis of the materiality
of the potential revenue recognition adjustments on its previously reported
The Company's finance team continues to work diligently with its auditors to
complete the audit and all filings by their respective deadlines, but, because
of the scope of work required – an analysis of over 3,000 accounts – the
Company may file for an extension of its March 31 deadline. Once the Company
has completed its audit, it expects to announce a date to release its fourth
quarter and full-year 2012 financial results and host its earnings conference
About World Energy Solutions, Inc.
World Energy Solutions, Inc. (Nasdaq:XWES) is an energy management services
firm that brings together the passion, processes and technologies to take the
complexity out of energy management and turn it into bottom-line impact for
the businesses, institutions and governments we serve. To date, the Company
has transacted more than $30 billion in energy, demand response and
environmental commodities on behalf of its customers, creating more than $1
billion in value for them. World Energy is also a leader in the global carbon
market, where its World Energy Exchange® supports the Regional Greenhouse Gas
Initiative (RGGI), the first mandatory market-based regulatory program in the
U.S. to reduce greenhouse gas emissions. For more information, please visit
The World Energy Solutions, Inc. logo is available at
This press release contains forward-looking statements that are subject to
risks and uncertainties that could cause actual results to differ from those
indicated in the forward-looking statements. Such risks and uncertainties
include, but are not limited to, the following: our revenue and backlog are
dependent on actual future energy purchases pursuant to completed
procurements; the demand for our services is affected by changes in regulated
prices or cyclicality or volatility in competitive market prices for energy;
the potential impact on our historical and prospective financial results of a
change in accounting policy may negatively impact our stock price; and other
factors outside our control that affect transaction volume in the electricity
market as well as our overall business. Additional risk factors are identified
in our Annual Report on Form 10-K and subsequent reports filed with the
Securities and Exchange Commission.
CONTACT: Dan Mees
World Energy Solutions, Inc.
Dian Griesel, Inc.
World Energy Solutions, Inc. logo
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