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 email@example.com firstname.lastname@example.org EnerNOC, Inc. Logo
EnerNOC Reports First Quarter 2013 Financial Results
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