EnerNOC Reports Record Results for Third Quarter of 2013

EnerNOC Reports Record Results for Third Quarter of 2013

  – Company Posts Record Revenue of $278.5 Million, Up 56% Year-Over-Year –

       – Company Posts Record Adjusted EBITDA of $123.2 Million, Up 78%
                               Year-Over-Year –

    – Company Raises Midpoint of Guidance for Revenue, Adjusted EBITDA and
                                  Earnings –

BOSTON, Nov. 7, 2013 (GLOBE NEWSWIRE) --EnerNOC, Inc. (Nasdaq:ENOC), a leading
provider of energy intelligence software, today announced record results for
the third quarter of 2013 and raised the midpoint of its full year guidance.

Summary Financial Results

In Thousands, Except Per Q3 2013  Q3 2012  % Change Q3 YTD   Q3 YTD   % Change
Share Amounts
                                                2013     2012     
Revenue                  $278,473 $177,947 56.5%    $347,476 $235,670 47.4%
Net Income                                                       
GAAP                    $106,857 $60,348  77.1%    $41,969  $3,499   1,099.5%
Non-GAAP^1              $112,381 $65,497  71.6%    $59,061  $18,955  211.6%
Diluted Net Income Per                                           
Share
GAAP                    $3.70    $2.21    67.4%    $1.47    $0.13    1,030.8%
Non-GAAP^1              $3.90    $2.40    62.5%    $2.06    $0.70    194.3%
Cash Flow From           $21,295  $8,625   146.9%   $33,459  $12,866  160.1%
Operations
Free Cash Flow^1         $15,556  $6,007   159.0%   $534     $1,114   (52.1%)
Adjusted EBITDA^1        $123,235 $69,080  78.4%    $82,341  $32,345  154.6%

^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 excited to be reporting record third quarter results highlighted by
strong growth in both revenues and earnings," said Tim Healy, Chairman and
Chief Executive Officer of EnerNOC, Inc. "Based on the overall strength of the
business and the confidence we have in our outlook, we are pleased to be
raising the midpoint of our full year guidance. We are focused on delivering
the best year in the Company's history and extending our leadership position
in the rapidly growing market for energy intelligence software and solutions."

Recent Operational Highlights

  *The Company launched new products and features that strengthen the
    connection between energy usage and spend. This includes an interactive
    payments feature in the Company's DemandSMART application that enables
    customers to view their demand response payments, providing visibility
    into the financial impact of an organization's participation in demand
    response initiatives. The Company also introduced new utility bill
    management functionality that aggregates the enterprise customer's true
    spend on energy.
  *The Company entered into a new agreement with Eastern Australian
    distribution operator Ausgrid to administer its demand response program.
    EnerNOC will administer the Ausgrid Dynamic Peak Rebate Program to
    Ausgrid's commercial, institutional, and industrial customers. This is an
    expansion of a pilot program originally launched in 2012.
  *The Company was issued a patent by the United States Patent and Trademark
    Office. Patent No. 8,457,803, entitled "Apparatus and Method for Demand
    Coordination Network," focuses on the technology, tools, and processes the
    Company uses to dynamically and reliably deploy demand response resources
    where and when they are needed.
  *The Company achieved its most recent certification by the OpenADR Alliance
    for compliance with the OpenADR 2.0 Profile B specification, making
    EnerNOC one of the first companies in the OpenADR Alliance to announce a
    2.0B-compliant product. Profile B is designed for high-end embedded
    devices that support a wide range of demand response services and markets,
    and this certification confirms EnerNOC's ability to seamlessly integrate
    with demand response programs in new and existing markets that require
    standards compliance.

Company Issues Fourth Quarter Guidance and Raises Midpoint of Full Year
Guidance

The Company today issued guidance for the fourth quarter of 2013 and raised
the midpoint of 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
                                December 31, 2013
Estimate                        Issued on November 7, 2013
Total Revenue (in millions)     $32.5-$37.5
GAAP Loss Per Share             ($0.75)-($0.67)
Non-GAAP Loss Per Share^1       ($0.54)-($0.46)
Adjusted EBITDA^1 (in millions) ($12.3)-($9.3)

                          Guidance for Year Ending December 31, 2013
Estimate                   Issued on August 6, 2013 Issued on November 7, 2013
Total Revenue (in          $360.0-$400.0            $380.0-$385.0
millions)
GAAP Earnings Per Diluted  $0.60-$0.85              $0.72-$0.80
Share
Non-GAAP Earnings Per      $1.39-$1.71              $1.51-$1.59
Diluted Share^1
Adjusted EBITDA^1 (in      $62.0-$77.0              $70.0-$73.0
millions)

^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.

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 1.800.230.1085 and using access code "ENOC".The
conference call may be accessed outside of the United States by dialing
+1.612.234.9959 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 304424 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.

The EnerNOC, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5804

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 Income
(in thousands, except share and per share data)
(unaudited)
                                                               
                                Three Months Ended     Nine Months Ended
                                 September 30,          September 30,
                                2013       2012        2013       2012
Revenues:                                                       
DemandSMART                     $267,479 $169,658  $318,553 213,586
EfficiencySMART, SupplySMART and 10,994     8,289      28,923     22,084
other
Total revenues                  278,473    177,947    347,476    235,670
Cost of revenues                126,072    82,947     172,142    126,437
Gross profit                    152,401    95,000    175,334    109,233
Operating expenses:                                             
Selling and marketing           15,761     13,424     50,444     41,342
General and administrative      19,746     18,351     60,872     52,880
Research and development        4,535      3,914      14,125     11,536
Total operating expenses        40,042     35,689     125,441    105,758
Income from operations          112,359    59,311     49,893     3,475
Other income (expense), net     233        619         (884)      1,316
Interest expense                (451)      (300)       (1,212)    (1,197)
Income before income tax        112,141    59,630      47,797     3,594
(Provision for) benefit from     (5,284)    718         (5,828)    (95)
income tax
Net income                      $106,857 $60,348   $41,969  $3,499
                                                               
                                                               
Net income per common share                                     
Basic                          $3.83    $2.26     $1.52    $0.13
Diluted                        $3.70    $2.21     $1.47    $0.13
                                                               
Weighted average number of
common shares used in computing                                 
net income per common share
Basic                          27,920,409 26,653,252 27,693,054 26,470,634
Diluted                        28,843,010 27,325,949 28,616,552 27,069,569

                                                           
EnerNOC, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except par value and share data)
(unaudited)
                                         September 30, 2013 December 31, 2012
ASSETS                                                      
Current assets:                                             
Cash and cash equivalents                 $111,230         $115,041
Trade accounts receivable, net            61,518             35,208
Unbilled revenue                          118,583            45,269
Capitalized incremental direct customer   3,513              10,226
contract costs
Prepaid expenses, deposits and other      8,726              6,945
current assets
Total current assets                      303,570            212,689
                                                           
Property and equipment, net               50,062             32,592
Goodwill and intangible assets, net       97,742             105,129
Capitalized incremental direct customer   2,213              3,929
contract costs
Deposits and other assets                 1,483              826
Total assets                              $455,070         $355,165
                                                           
LIABILITIES AND STOCKHOLDERS' EQUITY                        
Current liabilities:                                        
Accounts payable                          $1,709           $3,976
Accrued capacity payments                 96,507             49,258
Accrued payroll and related expenses      11,675             13,044
Accrued expenses and other current        13,653             9,663
liabilities
Deferred revenue                          17,235             20,063
Total current liabilities                 140,779            96,004
                                                           
Deferred tax liability                    6,379              4,222
Deferred revenue                          7,563              11,837
Other liabilities                         9,991              3,080
Total long-term liabilities               23,933             19,139
                                                           
Stockholders' equity:                                       
Common stock, $0.001 par value;                             
50,000,000 shares authorized,
30,013,822 and 29,019,923 shares issued                     
and outstanding at
September 30, 2013 and December 31, 2012, 30                 29
respectively
Additional paid-in capital                353,490            344,137
Accumulated other comprehensive loss      (1,689)            (702)
Accumulated deficit                       (61,473)           (103,442)
Total stockholders' equity                290,358            240,022
Total liabilities and stockholders'       $455,070         $355,165
equity
                                                           

                                                                   
EnerNOC, Inc.
Condensed Consolidated Statements of Cash Flow Data
(in thousands)
(unaudited)
                                                                   
                                         Three Months Ended Nine Months Ended
                                         September 30,      September 30,
                                         2013      2012     2013      2012
Cash provided by operating activities     $21,295   $8,625   $33,459   $12,866
Cash (used in) provided by investing      (8,450)   5,009    (33,803)  (7,147)
activities
Cash (used in) provided by financing      (3,423)   76       (2,632)   141
activities
Effects of exchange rate changes on cash  232       44       (835)     11
and cash equivalents
Net change in cash and cash equivalents   $9,654    $13,754  $(3,811)  $5,871
Cash and cash equivalents at beginning of $101,576  $79,414  $115,041  $87,297
period
Cash and cash equivalents at end of       $111,230  $93,168  $111,230  $93,168
period
                                                                   

                                EnerNOC, Inc.

               Statement on Use of Non-GAAP Financial Measures

To supplement the Company's consolidated financial statements presented on a
GAAP basis, the Company discloses certain non-GAAP measures that exclude
certain amounts, including non-GAAP net income (loss), non-GAAP net income
(loss) per share, adjusted EBITDA and free cash flow. These non-GAAP measures
are not in accordance with, or an alternative for, generally accepted
accounting principles in the United States.

The GAAP measure most comparable to non-GAAP net income (loss) is GAAP net
income (loss); the GAAP measure most comparable to non-GAAP net income (loss)
per share is GAAP net income (loss) per share; the GAAP measure most
comparable to adjusted EBITDA is GAAP net income; and the GAAP measure most
comparable to free cash flow is cash flows provided by operating activities.
Reconciliations of each of these non-GAAP financial measures to the
corresponding GAAP measures are included below.

Management uses these non-GAAP measures when evaluating the Company's
operating performance and for internal planning and forecasting purposes.
Management believes that such measures help indicate underlying trends in the
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, management considers non-GAAP
net income (loss) to be an important indicator of the overall performance
because it eliminates the effects of events that are either not part of the
Company's core operations or are non-cash compensation expenses. In addition,
management considers adjusted EBITDA to be an important indicator of the
Company's operational strength and performance of the business and a good
measure of the Company's historical operating trend. Moreover, management
considers free cash flow to be an indicator of the Company's operating trend
and performance of the business.

The following is an explanation of the non-GAAP measures that management
utilizes, including the adjustments that management excluded as part of the
non-GAAP measures for the three and nine month periods ended September 30,
2013 and 2012, respectively, as well as reasons for excluding these individual
items:

  *Management 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.
  *Management 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
    management's estimate of the useful life of tangible and intangible
    assets. These estimates could vary from actual performance of the asset,
    are based on historical cost incurred to build out the Company's deployed
    network and may not be indicative of current or future capital
    expenditures.
  *Management defines free cash flow as net cash provided by (used in)
    operating activities less capital expenditures. Management defines capital
    expenditures as purchases of property and equipment, which includes
    capitalization of internal-use software development costs.

Non-GAAP net income (loss), non-GAAP net income (loss) per share, adjusted
EBITDA and free cash flow may have limitations as analytical tools. 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.

EnerNOC, Inc.
Reconciliation Of Non-GAAP Measures To Nearest GAAP Measures
                                                             
Reconciliation of Non-GAAP Net Income And Net Income Per Share
(in thousands, except share and per share data)
(Unaudited)
                                                             
                                             Three Months Ended September 30,
                                             2013             2012
                                                             
                                                             
GAAP net income                               $106,857       $60,348
ADD: Stock-based compensation (1)             3,821            3,341
ADD: Amortization expense of acquired         1,703            1,808
intangible assets (1)
Non-GAAP net income                           $112,381       $65,497
                                                             
GAAP net income per diluted share             $3.70          $2.21
ADD: Stock-based compensation (1)             0.14             0.12
ADD: Amortization expense of acquired         0.06             0.07
intangible assets (1)
Non-GAAP net income per diluted share         $3.90          $2.40
                                                             
Weighted average number of diluted common     28,843,010       27,325,949
shares outstanding
                                                             
                                             Nine Months Ended September 30,
                                             2013             2012
                                                             
                                                             
GAAP net income                               $41,969        $3,499
ADD: Stock-based compensation (1)             11,832           10,018
ADD: Amortization expense of acquired         5,260            5,438
intangible assets (1)
Non-GAAP net income                           $59,061        $18,955
                                                             
GAAP net income per diluted share             $1.47          $0.13
ADD: Stock-based compensation (1)             0.41             0.37
ADD: Amortization expense of acquired         0.18             0.20
intangible assets (1)
Non-GAAP net income per diluted share         $2.06          $0.70
                                                             
Weighted average number of diluted common     28,616,552       27,069,569
shares outstanding

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

                                                             
EnerNOC, Inc.
Reconciliation of Adjusted EBITDA
(in thousands)
(unaudited)
                                                             
                     Three Months Ended September Nine Months Ended September
                      30,                          30,
                     2013          2012         2013          2012
Net income           $106,857     $60,348     $41,969     $3,499
Add back:                                                     
Depreciation and      7,055          6,428         20,616        18,852
amortization
Stock-based           3,821          3,341         11,832        10,018
compensation expense
Other (income)        (233)          (619)        884           (1,316)
expense, net
Interest expense     451            300          1,212         1,197
Provision for
(benefit from) income 5,284          (718)        5,828         95
tax
Adjusted EBITDA      $123,235     $69,080     $82,341     $32,345
                                                             
                                                             
EnerNOC, Inc.
Reconciliation of Free Cash Flow
(in thousands)
(unaudited)
                                                             
                     Three Months Ended September Nine Months Ended September
                      30,                          30,
                     2013           2012          2013         2012
Net cash provided by  $21,295      8,625      $33,459     $12,866
operating activities
Subtract:                                                     
Purchases of property (5,739)        (2,618)       (32,925)      (11,752)
and equipment
Free cash flow       $15,556      $ 6,007      $534        $1,114
                                                             

                         Non-GAAP Financial Guidance

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

                                                                 
                   Three Months Ending                Twelve Months Ending
                   December 31, 2013                  December 31, 2013
                                    Per Diluted               Per Diluted
                                       Share                       Share
In Millions, Except Low      High      Low     High    Low   High  Low   High
Per Share Amounts
                                                                 
Projected GAAP Net  ($21.0) ($18.7) ($0.75) ($0.67) $21.0 $23.3 $0.72 $0.80
Income (Loss)
                                                                 
Adjustments:                                                      
Stock-based         $4.0   $4.0    $0.14   $0.14   $15.8 $15.8 $0.55 $0.55
compensation
Amortization
expense of acquired $1.8   $1.8    $0.07   $0.07   $7.1  $7.1  $0.24 $0.24
intangible assets
Projected Non-GAAP  ($15.2) ($12.9)  ($0.54) ($0.46) $43.9 $46.2 $1.51 $1.59
Net Income (Loss)
                                                                 
Adjustments:                                                      
Depreciation        $5.5   $5.5    $0.20   $0.20   $20.8 $20.8 $0.72 $0.72
Interest and other  $0.1   $0.5    $0.00   $0.02   $2.1  $2.6  $0.07 $0.09
expense, net
Provision for       ($2.7)   ($2.4)   ($0.10) ($0.09) $3.2  $3.4  $0.11 $0.12
income taxes
Adjusted EBITDA     ($12.3) ($9.3)   ($0.44) ($0.33) $70.0 $73.0 $2.41 $2.52
                                                                 
Weighted Average
Number of Common    28.0     28.0                    29.0  29.0       
Shares
Outstanding-Diluted

CONTACT: Investor Relations Contact:
         Brian Norris
         EnerNOC, Inc.
         +1.617.532.8104
         bnorris@enernoc.com
        
         Media and Analyst Contact:
         Robin Deliso
         EnerNOC, Inc.
         +1.617.692.2601
         rdeliso@enernoc.com

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