EnerNOC Reports Results for Second Quarter of 2013

EnerNOC Reports Results for Second Quarter of 2013

Company Reaffirms Full Year Guidance

BOSTON, Ma., Aug. 6, 2013 (GLOBE NEWSWIRE) -- EnerNOC, Inc. (Nasdaq:ENOC), a
leading provider of energy intelligence software, today announced results for
the second quarter of 2013 and reaffirmed its full year guidance.

Summary Financial Results
                                                                
In Thousands,
Except Per Share   Q2 2013   Q2 2012   % Change   1H 2013   1H 2012   % Change
Amounts
Revenue            $36,153   $33,273   8.7%       $69,003   $57,723   19.5%
Net Loss                                                         
GAAP              $(34,351) $(29,136) (17.9%)    $(64,888) $(56,849) (14.1%)
Non-GAAP^1        $(29,281) $(24,043) (21.8%)    $(53,320) $(46,542) (14.6%)
Diluted Net Loss                                                 
Per Share
GAAP              $(1.23)   $(1.10)   (11.8%)    $(2.35)   $(2.16)   (8.8%)
Non-GAAP^1        $(1.05)   $(0.91)   (15.4%)    $(1.93)   $(1.77)   (9.0%)
Cash Flow From     $5,384    $4,429    21.6%      $12,164   $4,241    186.8%
Operations
Free Cash Flow^1   $(12,864) $(1,152)  (1,016.7%) $(15,022) $(4,893)  (207.0%)
Adjusted EBITDA^1  $(22,387) $(18,153) (23.3%)    $(40,894) $(36,735) (11.3%)
                                                                

^1Refer to "Statement of Use of Non-GAAP Measures" for non-GAAP definitions
and refer to the financial schedules attached to this press release for a
reconciliation of non-GAAP financial measures to the most directly comparable
GAAP financial measures.

"We are pleased with the progress we achieved in all key areas of the business
in the second quarter," said Tim Healy, Chairman and Chief Executive Officer
of EnerNOC, Inc. "Based on the overall strength of the business in the first
half of the year and the confidence we have in our growth strategy, we are
pleased to be reaffirming our full year guidance. Moving forward, our focus
will continue to be extending our leadership position in the demand response
market in the United States, capitalizing on the growing demand for demand
response solutions in international markets, and unlocking the full potential
of our other energy intelligence solutions globally."

Recent Operational Highlights

  *The Company launched several new products and features for further global
    expansion and strategic partnership development, including the
    internationalization of the Company's technology platform for
    non-English-speaking countries and implementation of single sign-on. 
  *The Company dispatched approximately 3,000 megawatts of demand response
    capacity during two weeks of major heat waves in late June and mid-July, a
    period which resulted in record customer use of EnerNOC's software.
  *The Company announced the addition to its management team of seasoned
    technology industry executive Matthew J. Cushing as Vice President and
    General Counsel.
  *The Company announced that former Executive Vice President David Samuels
    and veteran enterprise software executive John McMahon were appointed to
    the Company's Strategic Advisory Board, with Mr. Samuels serving as its
    Chairman.
  *The Company announced the opening of its new 82,000 square foot corporate
    headquarters in Boston's Innovation District. The new facility houses over
    400 local employees as well as the Company's newly enhanced global Network
    Operations Center which is purpose-built to support EnerNOC's growing
    product suite.

Company Issues Third Quarter Guidance and Reaffirms Full Year Guidance

The Company today issued guidance for the third quarter of 2013 and reaffirmed
its full year guidance.The Company's guidance is based on the current
indications for its business, which may change at any time.A reconciliation
of the Company's expected GAAP to non-GAAP business outlook, and a statement
as to the use of non-GAAP financial measures, is included at the end of this
press release.

                                
                                Guidance for Quarter Ending September 30,
                                 2013
Estimate                        Issued on August 6, 2013
Total Revenue (in millions)     $260--$290
GAAP Income Per Diluted Share   $3.45--$3.65
Non-GAAP Income Per Diluted     $3.65--$3.88
Share^1
Adjusted EBITDA^1 (in millions) $117.0--$126.0
                                

                                                         
                                   Guidance for Year Ending December 31, 2013
Estimate                            Issued on May 6, 2013  Issued on August 6,
                                                           2013
Total Revenue (in millions)         $360--$400             No Change
GAAP Earnings Per Diluted Share     $0.60--$0.85           No Change
Non-GAAP Earnings Per Diluted       $1.39--$1.71           No Change
Share^1
Adjusted EBITDA^1 (in millions)     $62--$77               No Change
                                                         

Company to Host Live Conference Call and Webcast

The Company's management team plans to host a live conference call and webcast
at 5:00 p.m. eastern time today to discuss the financial results as well as
management's outlook for the business.The conference call may be accessed in
the United States by dialing 1.866.254.5940 and using access code "ENOC".The
conference call may be accessed outside of the United States by dialing
+1.651.291.0344 and using access code "ENOC".The conference call will be
simultaneously webcast on the Company's investor relations website, which can
be accessed at http://investor.enernoc.com.A replay of the conference call
will be available approximately two hours after the call by dialing
1.800.475.6701 or +1.320.365.3844 and using access code 297610 or by accessing
the webcast replay on the Company's investor relations website.

About EnerNOC

EnerNOC (Nasdaq:ENOC) 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.

EnerNOC, Inc. 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 and the future growth and success of the
Company's energy intelligence software and related solutions, 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" in EnerNOC's most recent Annual Report on Form 10-K and
subsequent Quarterly Reports on Form 10-Q, as well as other documents that may
be filed by EnerNOC from time to time with the Securities 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. EnerNOC is 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.

                                                             
EnerNOC, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
(unaudited)
                                                             
                        Three Months Ended June 30, Six Months Ended June 30,
                        2013         2012           2013        2012
Revenues                                                     
DemandSMART             $26,585      $26,205        $51,074     $43,928
EfficiencySMART,         9,568        7,068         17,929      13,795
SupplySMART and other
Total revenues          36,153       33,273        69,003      57,723
Cost of revenues        23,873       24,928        46,070      43,490
Gross profit            12,280       8,435        22,933      14,233
Operating expenses:                                           
Selling and marketing   19,030       14,693        34,683      27,918
General and              21,005       17,600        41,126      34,529
administrative
Research and             4,770        3,818        9,590       7,622
development
Total operating          44,805       36,111       85,399      70,069
expenses
Loss from operations    (32,525)     (27,766)       (62,466)    (55,836)
Other (expense) income,  (1,184)      (536)          (1,117)     697
net
Interest expense        (448)        (417)          (761)       (897)
Loss before income tax  (34,157)     (28,719)       (64,344)    (56,036)
Provision for income     (194)        (417)          (544)       (813)
tax
Net loss                $(34,351)    $(29,136)      $(64,888)   $(56,849)
                                                             
Net loss per common
share (basic and         $(1.23)      $(1.10)        $(2.35)     $(2.16)
diluted)
                                                             
Weighted average number
of common shares used in
computing basic and      27,852,298   26,505,322   27,610,797  26,378,322
diluted net loss per
common share
                                                             

                                                           
EnerNOC, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except par value and share data)
(unaudited)

                                              June 30, 2013 December 31, 2012
ASSETS                                                      
Current assets:                                             
Cash and cash equivalents                     $101,576      $115,041
Trade accounts receivable, net of allowance
for doubtful accounts of $441 and $487 at June 25,470        35,208
30, 2013 and December 31, 2012, respectively
Unbilled revenue                              813           45,269
Capitalized incremental direct customer        26,253        10,226
contract costs
Prepaid expenses, deposits and other current   7,909         6,945
assets
Total current assets                          162,021       212,689
                                                           
Property and equipment, net                   51,091        32,592
Goodwill and intangible assets, net           98,259        105,129
Capitalized incremental direct customer        2,442         3,929
contract costs
Deposits and other assets                     1,001         826
Total assets                                  $314,814      $ 355,165
                                                           
LIABILITIES AND STOCKHOLDERS' EQUITY                        
Current liabilities:                                        
Accounts payable                              $2,881        $ 3,976
Accrued capacity payments                     30,110        49,258
Accrued payroll and related expenses          13,115        13,044
Accrued expenses and other current             13,680        9,663
liabilities
Deferred revenue                              48,796        20,063
Total current liabilities                     108,582       96,004
                                                           
Deferred tax liability                        4,966         4,222
Deferred revenue                              9,247         11,837
Other liabilities                             8,970         3,080
Total long-term liabilities                   23,183        19,139
                                                           
Stockholders' equity:                                       
Common stock, $0.001 par value; 50,000,000
shares authorized, 30,242,503 and29,019,923   30            29
shares issued and outstanding at June 30, 2013
and December 31, 2012, respectively
Additional paid-in capital                    353,093       344,137
Accumulated other comprehensive loss          (1,744)       (702)
Accumulated deficit                           (168,330)     (103,442)
Total stockholders' equity                    183,049       240,022
Total liabilities and stockholders' equity    $314,814      $355,165
                                                           

                                                                  
EnerNOC, Inc.
Condensed Consolidated Statements of Cash Flow Data
(in thousands)
(unaudited)
                                                                  
                                        Three Months Ended Six Months Ended
                                        June 30,           June 30,
                                        2013      2012     2013      2012
Cash provided by operating activities    $5,384    $4,429   $12,164   $4,241
Cash used in investing activities        (17,979)  (5,843)  (25,353)  (12,156)
Cash provided by financing activities    302       1        791       65
Effects of exchange rate changes on cash (958)     (3)      (1,067)   (33)
and cash equivalents
Net change in cash and cash equivalents  $(13,251) $(1,416) $(13,465) $(7,883)
                                                                  

                                EnerNOC, Inc.

               Statement on 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 or loss, non-GAAP
net income or 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 income (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 income or loss 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.
Reconciliation Of Non-GAAP Measures To Nearest GAAP Measures
                                                               
Reconciliation of Non-GAAP Net Loss And Net Loss Per Share
(in thousands, except share and per share data)
(Unaudited)
                                                               
                                                  Three Months Ended June 30,
                                                  2013          2012
                                                               
                                                               
GAAP net loss                                     $(34,351)     $(29,136)
ADD: Stock-based compensation (1)                3,307         3,299
ADD: Amortization expense of acquired intangible  1,763         1,794
assets (1)
Non-GAAP net loss                                 $(29,281)     $(24,043)
                                                               
GAAP net loss per basic and diluted share         $(1.23)       $(1.10)
ADD: Stock-based compensation                    0.12          0.12
ADD: Amortization expense of acquired intangible  0.06          0.07
assets
Non-GAAP net loss per basic and diluted share     $(1.05)       $(0.91)
                                                               
Weighted average number of common shares                        
outstanding
Basic and Diluted                                 27,852,298    26,505,322
                                                               
                                                  Six Months Ended June 30,
                                                  2013          2012
                                                               
                                                               
GAAP net loss                                     $(64,888)     $(56,849)
ADD: Stock-based compensation                    8,011         6,677
ADD: Amortization expense of acquired intangible  3,557         3,630
assets
Non-GAAP net loss                                 $(53,320)     $(46,542)
                                                               
GAAP net loss per basic and diluted share         $(2.35)       $(2.16)
ADD: Stock-based compensation                    0.29          0.25
ADD: Amortization expense of acquired intangible  0.13          0.14
assets
Non-GAAP net loss per basic and diluted share     $(1.93)       $(1.77)
                                                               
Weighted average number of common shares                        
outstanding
Basic and Diluted                                 27,610,797    26,378,322
                                                               

(1) The non-GAAP adjustments would have no impact on the provision for
income taxes recorded during the three or six months ended June 30, 2013 and
2012, respectively.

                                                              
EnerNOC, Inc.
Reconciliation of Adjusted EBITDA
(in thousands)
(unaudited)
                                                              
                        Three Months Ended June 30, Six Months Ended June 30,
                        2013         2012         2013         2012
Net loss                $(34,351)     $(29,136)     $(64,888)    $(56,849)
Add back:                                                      
Depreciation and         6,831         6,314        13,561       12,424
amortization
Stock-based compensation 3,307         3,299        8,011        6,677
expense
Other expense (income)  1,184         536          1,117        (697)
Interest expense        448           417          761          897
Provision for income     194           417          544          813
tax
Adjusted EBITDA         $(22,387)     $(18,153)     $(40,894)    $(36,735)
                                                              

                                                               
EnerNOC, Inc.
Reconciliation of Free Cash Flow
(in thousands)
(unaudited)
                                                               
                        Three Months Ended June 30, Six Months Ended June 30,
                        2013           2012         2013         2012
Net cash provided by     $5,384         $4,429       $12,164       $4,241
operating activities
Subtract:                                                       
Purchases of property    (18,248)       (5,581)      (27,186)      (9,134)
and equipment
Free cash flow          $(12,864)      $(1,152)     $(15,022)     $(4,893)
                                                               

                         Non-GAAP Financial Guidance

This press release also includes estimates of future non-GAAP adjusted net
income and net income per diluted share.A reconciliation of these amounts to
the nearest expected GAAP results is presented below:

                                                                 
                          Three Months Ended          Twelve Months Ended
                          September 30, 2013          December 31, 2013
                                      Per Diluted             Per Diluted
                                         Share                     Share
                          Low    High   Low     High  Low   High  Low   High
In Millions, Except Per                                           
Share Amounts
                                                                 
Projected GAAP Net Income  $101.5 $107.2 $3.45   $3.65 $17.5 $24.5 $0.60 $0.85
                                                                 
Adjustments:                                                      
Stock-based compensation  $4.0   $5.0   $0.14   $0.17 $16.0 $18.0 $0.55 $0.62
 Amortization expense of  $1.7   $1.7   $0.06   $0.06 $7.0  $7.0  $0.24 $0.24
acquired intangible assets
Projected Non-GAAP Net     $107.2 $113.9 $3.65   $3.88 $40.5 $49.5 $1.39 $1.71
Income
                                                                 
Adjustments:                                                      
Depreciation              $4.5   $5.3   $0.15   $0.18 $19.0 $21.0 $0.66 $0.72
 Interest and other       $(0.7) $0.3   $(0.02) $0.01 $0.5  $2.5  $0.02 $0.09
expense, net
 Provision for income     $6.0   $6.5   $0.20   $0.22 $2.0  $4.0  $0.07 $0.14
taxes
Adjusted EBITDA            $117.0 $126.0 $3.98   $4.29 $62.0 $77.0 $2.14 $2.66
                                                                 
Weighted Average Number of
Common Shares              29.4   29.4               29.0  29.0       
Outstanding-Diluted

CONTACT: Investor Relations Contact:
         Brian Norris
         EnerNOC, Inc.
         +1.617.532.8104
         bnorris@enernoc.com
        
         Media and Analyst Contact:
         Sarah McAuley
         EnerNOC, Inc.
         +1.617.532.8195
         smcauley@enernoc.com

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