EnerNOC Reports First Quarter 2013 Financial Results

EnerNOC Reports First Quarter 2013 Financial Results

BOSTON, May 6, 2013 (GLOBE NEWSWIRE) -- EnerNOC, Inc. (Nasdaq:ENOC) (the
"Company"), a leading provider of energy intelligence software and related
solutions, today announced financial results for the first quarter ended March
31, 2013.

"In Q1 2013, we grew our year-over-year revenue by approximately 35%,
continued to generate strong cash flow from operations, and released several
new products and features that helped us secure new demand response
opportunities and win approximately 100 new EfficiencySMART and SupplySMART
contracts during the quarter," said Tim Healy, Chairman and CEO of EnerNOC.
"In addition, we continued to bolster our leadership ranks with proven
technology veterans and make investments that will help propel EnerNOC's next
phase of growth. For the current year, we are reiterating our annual guidance
for revenue of $360 million to $400 million, earnings per share of $0.60 to
$0.85, and adjusted EBITDA of $62 million to $77 million."

Financial Summary

(In thousands, except percentages and per                         
share amounts)
                                             Q1 2013    Q1 2012    % Increase
                                                                    (Decrease)
Revenue                                       $ 32,850   $ 24,450   34.4%
Net Income (Loss)                                                 
GAAP                                          $ (30,537) $ (27,713) (10.2%)
Non-GAAP*                                     $ (24,039) $ (22,499) (6.8%)
Adjusted EBITDA*                              $ (18,507) $ (18,582) 0.4%
Diluted Net Income (Loss) per Share (EPS)                         
GAAP                                          $ (1.12)   $ (1.06)   (5.7%)
Non-GAAP*                                     $ (0.88)   $ (0.86)   (2.3%)
Cash Flow From Operations                     $ 6,780    $ (188)    n/a
Free Cash Flow*                               $ (2,158)  $ (3,741)  42.3%

*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

First Quarter 2013 Operating Metrics & Financial Highlights

  *Grew Q1 2013 trailing twelve month EfficiencySMART, SupplySMART, and Other
    revenues by 23% year-over-year, to over $34 million.
    
  *Grew Q1 2013 trailing twelve month international revenues by 159%
    year-over-year, to over $39 million.
    
  *Ended Q1 2013 with the following DemandSMART statistics:

    *6,000^+ commercial, institutional, and industrial customers;
    *14,000^+ commercial, institutional, and industrial sites;
    *24,000 MW – 27,000 MW of Peak Load Under Management, of which 30% to 35%
      was curtailable.

  *Ended Q1 2013 with the following EfficiencySMART statistics:

    *100^+ commercial, institutional, and industrial EfficiencySMART Insight
      customers;
    *2,000^+ commercial, institutional, and industrial EfficiencySMART
      Insight sites.

Other Recent Highlights

  *Signed new utility contracts with:

    *PacifiCorp to provide 185 megawatts of agricultural demand response, the
      largest agricultural demand response contract in Company history; and
    *Southern California Edison, an extension of an existing EfficiencySMART
      contract.

  *Added Neil Moses as Chief Financial Officer and Fielder Hiss as Vice
    President of Product Management.
    
  *Added Jim Baum and Peter Gyenes to EnerNOC's Board of Directors.
    
  *Entered into a new credit facility with up to $70 million of borrowing
    ability, an expansion of $20 million over our previous credit facility.
    
  *Launched new products and features, including:

    *A new DemandSMART Predictor application for New England;
    *A new EfficiencySMART Executive Dashboard;
    *Enhanced EfficiencySMART data analytics and reporting features for
      industrial customers; and
    *A new wireless mesh data capture and communication system that extends
      the reach and performance of the EnerNOC Site Server.

Financial Outlook

EnerNOC is issuing guidance for the second quarter and full year 2013 as
follows:

Second Quarter 2013:

                                                 Current Guidance (5/06/2013)
Total revenue                                     $32 m - $38 m
GAAP net loss per basic and diluted share         ($1.20 - $1.35)
Non-GAAP net loss per basic and diluted share     ($0.97 - $1.12)
Basic and diluted weighted average shares         27.9 m
outstanding
Adjusted EBITDA                                   ($20 m - $25 m)
Stock-based compensation expense                  ~$4.5 m
Amortization of acquisition related intangibles   ~$1.8 m
expense
Depreciation expense                              ~$5.5 m
Interest and other expense, net                   $0.2 m - $1.0 m
Provision for income taxes                        ~$0.5 m

Full Year 2013:

                                             Current Guidance Prior Guidance
                                              (5/06/2013)      (2/13/2013)
Total revenue                                 $360 m - $400 m  $360 m - $400 m
GAAP net income per diluted share             $0.60 - $0.85    $0.60 - $0.85
Non-GAAP net income per diluted share         $1.39 - $1.71    N/A
Diluted weighted average shares outstanding   29.0 m           29.0 m
Adjusted EBITDA                               $62 m - $77 m    $62 m - $77 m
Stock-based compensation expense              $16 m - $18 m    $13 m - $15 m
Amortization of acquisition related           ~$7 m            ~$7 m
intangibles expense
Depreciation expense                          $18 m - $21 m    $21 m - $24 m
Interest and other expense, net               $0.5 m - $1.5 m  $0.5 m - $1.5 m
Provision for income taxes                    $3 m - $5 m      $3 m - $5 m

These statements are forward-looking and actual results may differ materially.
These statements are based on information available as ofMay 6, 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,May 6,
2013at5:00 p.m., Eastern Time, to discuss the Company's first quarter 2013
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.cfm for 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 55450098) untilMay 13, 2013and the webcast will be
archived onEnerNOC'swebsite for a period of twelve months.

AboutEnerNOC

EnerNOC is a leading provider of energy intelligence software and related
solutions. EnerNOC unlocks the full value of energy management for utility and
commercial, institutional, and industrial (C&I) customers by delivering a
comprehensive suite of demand-side management services that reduce real-time
demand for electricity, increase energy efficiency, improve energy supply
transparency in competitive markets, and mitigate emissions. EnerNOC's Utility
Solutions™ offerings, which include both implementation and consulting
services, are helping hundreds of utilities and grid operators worldwide meet
their demand-side management objectives. EnerNOC serves thousands of
commercial, institutional, and industrial customers worldwide through a suite
of energy management applications including: DemandSMART™, comprehensive
demand response; EfficiencySMART™, continuous energy savings; and
SupplySMART™, energy price and risk management. EnerNOC's Network Operations
Center (NOC) offers 24x7x365 customer support. 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 outcome of the strategic investments
that the Company has made and expects to continue to make and the future
growth and success of the Company's energy intelligence software, services and
products, 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 income (loss), non-GAAP
net income (loss) 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 income (loss)" as net income (loss) 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 (used in)
    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.
Condensed Consolidated Statements of Operations
(Unaudited)
                                                               
                                                 Three Months Ended March31,
                                                 2013           2012
Revenues:                                                       
DemandSMART                                       $24,489      $17,723
EfficiencySMART, SupplySMART and other            8,361         6,727
Total revenues                                    32,850        24,450
Cost of revenues                                  22,197        18,562
Gross profit                                      10,653        5,888
Operating expenses:                                            
Selling and marketing                             15,653        13,225
General and administrative                        20,121        16,929
Research and development                          4,820         3,804
Total operating expenses                          40,594        33,958
Loss from operations                              (29,941)      (28,070)
Other income, net                                 67            1,233
Interest expense                                  (313)         (480)
Loss before income tax                            (30,187)      (27,317)
Provision for income tax                          (350)         (396)
Net loss                                          $(30,537)    $(27,713)
                                                               
Net loss per common share (basic and diluted)     $(1.12)      $(1.06)
Weighted average number of common shares used in
computing basic and diluted net loss per common   27,366,612    26,251,322
share



Condensed Consolidated Balance Sheets
(Unaudited)
                                                           
                                             March 31, 2013 December 31, 2012
ASSETS                                                      
Current assets                                              
Cash and cash equivalents                     $114,827     $115,041
Restricted cash                               27            9
Trade accounts receivable, net of allowance
for doubtful accounts of $410 and $487 at     26,968        35,208
March 31, 2013 and December 31, 2012,
respectively
Unbilled revenue                              18,697        45,269
Capitalized incremental direct customer       15,855        10,226
contract costs
Deposits                                      691           2,296
Prepaid expenses, deposits and other current  6,730         4,640
assets
Total current assets                          183,795       212,689
Property and equipment, net of accumulated
depreciation of $72,760 and$67,909 at March  41,991        32,592
31, 2013 and December 31, 2012, respectively
Goodwill                                      79,562        79,505
Customer relationship intangible assets, net  20,367        21,709
Other definite-lived intangible assets, net   3,527         3,915
Capitalized incremental direct customer       3,340         3,929
contract costs, long-term
Deposits and other assets                     762           826
Total assets                                  $333,344     $355,165
LIABILITIES AND STOCKHOLDERS' EQUITY                        
Current liabilities                                         
Accounts payable                              $8,599       $3,976
Accrued capacity payments                     32,159        49,258
Accrued payroll and related expenses          11,807        13,044
Accrued expenses and other current            11,230        8,978
liabilities
Accrued performance adjustments               787           685
Deferred revenue                              32,263        20,063
Total current liabilities                     96,845        96,004
Deferred acquisition consideration            541           533
Accrued acquisition contingent consideration  455           431
Deferred tax liability                        4,594         4,222
Deferred revenue                              10,630        11,837
Other liabilities                             5,470         2,116
Stockholders' equity                                        
Undesignated preferred stock, $0.001 par
value; 5,000,000 sharesauthorized; no shares --           --
issued
Common stock, $0.001 par value; 50,000,000
shares authorized, 29,999,979 and29,019,923  30            29
shares issued and outstanding at March 31,
2013 and December 31, 2012, respectively
Additional paid-in capital                    349,484       344,137
Accumulated other comprehensive loss          (726)         (702)
Accumulated deficit                           (133,979)     (103,442)
Total stockholders' equity                    214,809       240,022
Total liabilities and stockholders' equity    $333,344     $355,165



EnerNOC, Inc.
Cash Flow Information
(Unaudited)
                                                 
                                                 Three Months Ended March 31,
                                                 2013          2012
Cash flows provided by (used in) operating        $6,780      $(188)
activities
Cash flows used in investing activities           (7,374)       (6,313)
Cash flows provided by financing activities       489           64
Effects of exchange rate changes on cash          (109)         (30)
Net change in cash and cash equivalents           $(214)      $(6,467)



EnerNOC, Inc.
RECONCILIATION OF NON-GAAP MEASURES TO NEAREST GAAP MEASURES
(In thousands, except share and per share data)
(Unaudited)
                                                          
Reconciliation of Non-GAAP Net Loss and Net Loss per Share
                                                          
                                      Three Months Ended March 31,
                                      2013                 2012
                                                          
GAAP net loss                          $(30,537)          $(27,713)
ADD: Stock-based compensation (1)      4,704                3,378
ADD: Amortization expense of acquired  1,794                1,836
intangible assets (1)
Non-GAAP net loss                      $(24,039)          $(22,499)
                                                          
GAAP net loss per basic and diluted    $(1.12)            $(1.06)
share
ADD: Stock-based compensation (1)      0.17                 0.13
ADD: Amortization expense of acquired  0.07                 0.07
intangible assets (1)
Non-GAAP net loss per diluted share    $(0.88)            $(0.86)
                                                          
Weighted average number of common                          
shares outstanding
Basic and Diluted                      27,366,612           26,251,322
(1) The non-GAAP adjustments would have no impact on the provision for income
taxes recorded for the three months ended March 31, 2013 or 2012,
respectively.


Reconciliation of Adjusted EBITDA

                                Three Months Ended March 31,
                                2013           2012
Net loss                         $ (30,537)    $(27,713)
Add back:                                      
Depreciation and amortization    6,730          6,110
Stock-based compensation expense 4,704          3,378
Other income                     (67)           (1,233)
Interest expense                 313            480
Provision for income tax         350            396
Adjusted EBITDA                  $ (18,507)    $(18,582)


Reconciliation of Free Cash Flow

                                                 Three Months Ended March 31,
                                                 2013           2012
Net cash provided by (used in) operating          $6,780       $(188)
activities
Subtract:                                                       
Purchases of property and equipment               (8,938)       (3,553)
Free cash flow                                    $(2,158)     $(3,741)

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

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