Revolution Lighting Technologies Reports Q1 2013 Financial Results

  Revolution Lighting Technologies Reports Q1 2013 Financial Results

                        – Reported Revenues of $6.3M –

                           – Gross Margin at 42% –

                         – Positive Adjusted EBITDA –

                – Cash Balance of $6 Million at Quarter End –

Business Wire

STAMFORD, Conn. -- May 15, 2013

Revolution Lighting Technologies, Inc. (NASDAQ: RVLT) (“Revolution Lighting”),
a leader in advanced LED lighting technology, today announced financial
results for the quarter ended March 31, 2013.

For the three months ended March 31, 2013, total revenue was approximately
$6.3 million, as compared to $1.1 million in the same period of 2012, an
increase of approximately 470%. Gross profit for the quarter was approximately
$2.66 million, as compared to negative $39,000 during the same period in 2012.
Gross margin was 42% as compared to negative 3% for the same period in 2012,
including the liquidation of surplus and discontinued inventory related to the
retail consumer markets.

Revenue and gross margin for the Company were positively impacted by the
acquisition of Seesmart and organic growth in the combined company as a result
of the shift in focus away from the lower ticket and lower margin consumer
retail market to the larger and rapidly growing commercial, industrial and
municipal (municipal, university, schools and healthcare) segments.

The Company reported an operating loss of $2.9 million in the first quarter of
2013 as compared to $1.7 million in the same period of 2012. Operating results
for the first quarter were negatively impacted by non-operating costs,
one-time and non-cash charges of $3.3 million, including expenses related to
acquisitions, severance and facility transition costs attributed to the
closing of the former Nexxus Lighting corporate office in North Carolina, and
the amortization of intangible assets and stock-based compensation. Adjusted
EBITDA (as defined below) for the quarter was approximately $400,000 excluding
the aforementioned charges.

The Company reported a net loss for the quarter of approximately $5.3 million
as compared to a net loss of $1.8 million for the same period in 2012. The net
loss includes the aforementioned charges and additional one-time non-cash
charge of $2.4 million related to the change in fair value of the embedded
liability related to the Company’s Series E convertible redeemable preferred
stock, offset by a gain on a bargain purchase.

Basic and diluted earnings per share were negative $0.11, respectively, for
the three months ended March 31, 2013 and 2012. Weighted basic and diluted
shares outstanding were 71.7 million for the quarter ended March 31, 2013 and
16.5 million for the quarter ended March 31, 2012.

“We made significant progress this quarter by executing on our strategic plan
to accelerate revenue, improve profitability and lay a foundation for
long-term growth at Revolution Lighting,” said Robert V. LaPenta, Chairman and
Chief Executive Officer of Revolution Lighting Technologies. “Our strategic
focus on the commercial, industrial and municipal markets is working as
evidenced by significant revenue growth and importantly, substantial operating
margin improvement both sequentially and over the comparable quarter last
year. The integration of Seesmart is proceeding well and we are already seeing
positive results of this acquisition, including strong demand for our recently
introduced 15-watt LED tube lamp, the most energy efficient tube lamp on the
market today.”

LaPenta concluded: “With a robust new business pipeline and several innovative
new product introductions planned for the year, Revolution Lighting is
well-positioned. We expect a continued acceleration in revenue and
profitability as the year progresses.”

Business Highlights from Q1 2013

  *January 23rd: Appointed Robert LaPenta as Chief Executive Officer and
    Charles J. Schafer as President and Chief Financial Officer
  *January 24th: Announced receipt of a $5 million order for Seesmart LED
    lighting products with a total potential value of $10 million
  *February 21st: Announced the receipt of an additional $5 million
    investment from an affiliate of Aston Capital LLC, in the form of
    convertible preferred stock to fund customer orders and future growth
  *March 11th: Announced the completion of a $5 million common stock
    investment from a new unaffiliated investor
  *March 25th: Introduced the most energy efficient 15-watt tube lamp on the
    market today, producing a measured efficacy of 112 lumens per watt and
    more than 1,700 lumens of light

“We were pleased with our performance in the first quarter, particularly with
the growth of our sales pipeline and our strong gross margin,” said Charles J.
Schafer, President and Chief Financial Officer of Revolution Lighting. “We
believe we have adequate resources to meet our cash requirements in the near
future as we continue to invest in the growth of the company.”

Further information on Revolution Lighting Technologies’ quarterly results can
be found in the Company’s form 10-Q for the quarter ended March 31, 2013 filed
with the U.S. Securities and Exchange Commission (SEC) and may be accessed on
the SEC’s website at www.sec.gov.

About Revolution Lighting Technologies Inc.

Revolution Lighting Technologies, Inc. is a leader in the design, manufacture,
marketing, and sale of light emitting diode (LED) lighting solutions focusing
on the industrial, commercial and government markets in the United States,
Canada, and internationally. Through advanced technology and aggressive new
product development, Revolution Lighting has created an innovative,
multi-brand, lighting company that offers a comprehensive advanced product
platform. The company goes to market through its Seesmart, Lumificient and
Lighting Integration Technologies brands, each of which has an extensive line
of high-quality interior and exterior LED lamps and fixtures that produce
immediate energy savings and a rapid return on investment. Revolution Lighting
Technologies markets and distributes its product through a network of
independent sales representatives and distributors, as well as through energy
savings companies and national accounts. Revolution Lighting Technologies
trades on the NASDAQ under the ticker RVLT. For additional information, please
visit: www.rvlti.com.

Cautionary Statement for Forward-Looking Statements

Certain of the above statements contained in this press release are
forward-looking statements that involve a number of risks and uncertainties,
including the anticipated benefits of the Seesmart acquisition and statements
relating to the anticipated future growth and profitability of our business.
Such forward-looking statements are within the meaning of that term in Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Reference is made to Revolution Lighting's filings under the
Securities Exchange Act for additional factors that could cause actual results
to differ materially, including our history of losses, the potential for
future dilution to our existing common stockholders, our status as a
controlled company, the risk that demand for our LED products fails to emerge
as anticipated, competition from larger companies, and risks relating to third
party suppliers and manufacturers, as well as the other Risk Factors described
in Item 1A of our Form 10-K for the fiscal year ended December 31, 2012.
Revolution Lighting Technologies, Inc. undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events, or otherwise. Readers are cautioned that any such
forward-looking statements are not guarantees of future performance and
involve risks and uncertainties, and that actual results may differ materially
from those indicated in the forward-looking statements as a result of various
factors. Readers are cautioned not to place undue reliance on these
forward-looking statements.

Adjusted EBITDA

We use Adjusted EBITDA as non GAAP measure of financial performance. Adjusted
EBITDA is calculated by adding back to net income or loss interest and
financing related transactions, acquisition related transactions, income
taxes, depreciation and amortization, asset impairments, stock based
compensation charges, and severance and transition costs. Adjusted EBITDA is
provided to investors to supplement the results of operations reported in
accordance with GAAP. Management believes that Adjusted EBITDA is useful to
help investors analyze the operating trends in the business and to assess the
relative underlying performance of businesses with different capital and tax
structures. Management believes that Adjusted EBITDA provides an additional
tool for investors to use in comparing our financial results with other
companies that use Adjusted EBITDA in their communications with investors. By
excluding non cash charges such as amortization and depreciation, stock based
compensation, asset impairments as well as non operating charges for income
taxes, interest and financing charges, acquisition related and severance and
transition costs charges investors can evaluate our operations and compare our
results with the results of other companies on a more consistent basis.
Management also uses Adjusted EBITDA to evaluate potential acquisitions,
establish internal budget and goals and evaluate the performance of business
units and management.

We consider Adjusted EBITDA to be an important indicator of our operational
strength and performance and a useful measure of historical and prospective
trends. However there are significant limitations of the use of Adjusted
EBITDA since it excludes interest income and expenses, financing related
transactions and acquisition related transaction and severance and transition
costs, income taxes, all of which impact profitability, as well as
depreciation and amortization related to the use of long lived assets which
benefits future periods. We believe that limitations are compensated by
providing Adjusted EBITDA only with GAAP performance measures and clearly
identifying the differences between the two measures. Consequently, Adjusted
EBITDA should not be considered in isolation or as a substitute for net income
or loss or operating income or loss presented in accordance with GAAP.
Adjusted EBITDA as defined by the Company may not be comparable to similarly
titled measure provided by other entities.

A reconciliation of our GAAP net loss to non-GAAP Adjusted EBITDA is as
follows:

                                                      (in millions)
Net Loss                                                $      (5.3      )
Change in fair value of embedded derivative                    3.2
Gain on bargain purchase of business                           (0.7      )
Severance and transition costs                                 0.9
Acquisition related costs                                      1.1
Depreciation and amortization                                  1.0
Stock compensation costs                                      0.2       
Adjusted EBITDA                                         $      0.4       
                                                               

Contact:

ICR
Anton Nicholas / Cory Ziskind, 203-682-8200
Anton.Nicholas@icrinc.com / Cory.Ziskind@icrinc.com