EnerNOC Reports Record Full Year Results for 2013

EnerNOC Reports Record Full Year Results for 2013

      – Company Posts Record Full Year Revenue of $383.5 Million, Up 38%
                               Year-Over-Year –

  – Company Posts Record Full Year Adjusted EBITDA of $71.4 Million, up 287%
                               Year-Over-Year –

                     – Company Issues Guidance for 2014 –

BOSTON, Feb. 13, 2014 (GLOBE NEWSWIRE) -- EnerNOC, Inc. (Nasdaq:ENOC), a
leading provider of energy intelligence software, today announced results for
the fourth quarter and year ended December 31, 2013 and issued management's
outlook for 2014.

                                                                  
Summary
Financial                                                          
Results
In Thousands,                                                           %
Except Per    Q4 2013      Q4 2012      % Change  2013      2012        Change
Share Amounts
Revenue       $35,984      $42,314      (15.0%)   $383,460  $277,984    37.9%
Net (Loss)                                                         
Income
GAAP         $(19,881)  $(25,792)  22.9%     $22,088   $(22,293) n/a
Non-GAAP^1   $(14,076)  $(20,391)  31.0%     $44,985   $(1,436)  n/a
Diluted Net
(Loss) Income                                                      
Per Share
GAAP         $(0.71)    $(0.96)    26.0%     $0.76     $(0.84)   n/a
Non-GAAP^1   $(0.51)    $(0.76)    32.9%     $1.55     $(0.05)   n/a
Cash Flow
From          $46,005      $18,145      153.5%    $79,464   $31,011     156.2%
Operations
Free Cash     $42,267      $14,043      201.0%    $42,801   $15,157     182.4%
Flow^1
Adjusted      $(10,913)  $(13,899)  21.5%     $71,428   $18,446     287.2%
EBITDA^1

^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.

"Our strong performance in 2013 reflects our ability to effectively execute on
our long term growth and market diversification strategy," said Tim Healy,
Chairman and Chief Executive Officer of EnerNOC, Inc. "In 2014, we are focused
on expanding our footprint in both Europe and Asia, extending our leadership
position in the Energy Intelligence Software market and delivering exceptional
results for our customers. We have never been more excited about our strategy
and our prospects for profitable growth."

Company Issues First Quarter and Full Year Guidance

The Company today issued guidance for 2014 along with its outlook for the
first quarter.The Company's guidance is based on the current indications for
its business, which may change at any time.The Company's full year outlook is
presented below with and without consideration of the forecasted impact of the
Company's acquisition of Entelios and Activation Energy.

                           Guidance for Quarter Ending March 31, 2014
Estimate                   Issued on                Issued on
                           February 13, 2014 (a)     February 13, 2014 (b)
Total Revenue (in          $38.0--$43.0              $38.0--$43.0
millions)
GAAP Loss Per Share^2      ($1.13)-($1.07)           ($1.20)-($1.14)
Non-GAAP Loss Per Share^1  ($0.90)-($0.84)           ($0.96)-($0.90)
Adjusted EBITDA^1 (in      ($19.5)-($17.5)           ($21.0)-($19.0)
millions)
                                                    
                           Guidance for Year Ending December 31, 2014
Estimate                    Issued on                Issued on
                           February 13, 2014 (a)     February 13, 2014 (b)
Total Revenue (in millions) $430.0--$450.0            $435.0--$460.0
GAAP Earnings Per Diluted   $0.70--$0.80              $0.40--$0.50
Share^2
Non-GAAP Earnings Per       $1.47--$1.57              $1.25--$1.35
Diluted Share^1
Adjusted EBITDA^1 (in       $80.0--$84.0              $74.0--$78.0
millions)

(a) Excludes the forecasted impact of the acquisition of Entelios and
Activation Energy which was announced by the Company on February 13, 2014.
(b) Includes the forecasted impact of the acquisition of Entelios and
Activation Energy which was announced by the Company on February 13, 2014
(1) Refer 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.
(2) The Company is currently completing independent valuation analyses related
to the acquisition of Entelios and Activation Energy. The completion of
theseanalyses may cause the Company to recognize certain intangible assets
and amortize them over their respective useful lives. The amortization of
these intangible assets could have a material effect on the Company's
statement of operations in future periods as presented in accordance with
GAAP. The Company expects that these independent valuation analyses will be
substantially completed in the first quarter of 2014. When the Company
releases its first quarter results, it expects to provide an update on these
independent valuation analyses and its impact on the Company's business
outlook for 2014 on a GAAP basis.

Recent Operational Highlights

  *The Company announced its expansion into continental Europe through its
    acquisition of Entelios AG, a leading provider of demand response
    solutions headquartered in Germany.Entelios is pre-qualified to offer
    demand response solutions by all four transmission system operators in
    Germany as well as major utilities with significant presence outside of
    Germany.

  *The Company announced its acquisition of Activation Energy, the leading
    provider of demand response software and services in Ireland. This
    acquisition gives the Company an immediate presence in the Irish capacity
    market and further strengthens EnerNOC's ability to deliver its full suite
    of energy intelligence software applications throughout Europe.

  *The Company entered into a joint venture with Japan's Marubeni Corporation
    to provide demand response solutions in Japan. The new company is named
    EnerNOC Japan K.K. and has an exclusive license to market EnerNOC's
    DemandSMART™ cloud-based application throughout the country.

  *The Company announced its investment in Genability, Inc., a San
    Francisco-based software company that will license its extensive database
    of electricity tariffs and rate engines to the Company for use in its EIS
    platform.

  *The Company launched new features within its application that continue to
    strengthen the connection between energy usage and spend for
    customers.New features focus on enhancements to EnerNOC's
    EfficiencySMART™ Insight software that delivers continuous energy savings,
    now allowing customers to view projected energy efficiency baseline
    information, benchmark their buildings against similar facilities, and
    analyze on- versus off-peak energy usage.

  *The Company dispatched its global demand response network in mid-January
    2014 in response to Australia's extreme heat and the polar vortex-induced
    cold snap across the United States, relieving stress on the grid and
    underscoring the importance of demand response as a year round resource.

  *The Company expanded its demand response offerings for electric utilities
    and retail energy suppliers.The Company introduced EnerNOC Demand
    Manager^TM, software-as-a-service (SaaS) that provides utilities and
    retailers tools to manage their own demand response programs, leveraging
    the Company's industry-leading technology for commercial and industrial
    demand response. Several EnerNOC utility customers have already adopted
    and begun implementing EnerNOC Demand Manager^TM, including Louisville Gas
    & Electric and Kentucky Utilities Company (LG&E and KU) and ERM Power in
    Eastern Australia.

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 1.800.230.1074 and using access code "ENOC." The
conference call may be accessed outside of the United States by dialing
+1.612.234.9960 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 315196 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 December Twelve Months Ended December
                      31,                         31,
                     2013          2012          2013         2012
Revenues:                                                   
DemandSMART          $23,659     $31,266     $342,212   244,852
EfficiencySMART,
SupplySMART and       12,325        11,048        41,248       33,132
other
Total revenues       35,984        42,314       383,460      277,984
Cost of revenues     20,150        28,103       192,292      154,540
Gross profit         15,834        14,211        191,168      123,444
Operating expenses:                                         
Selling and           15,471        14,621        65,915       55,963
marketing
General and           18,348        18,763        79,220       71,643
administrative
Research and          4,192         4,690         18,317       16,226
development
Total operating       38,011        38,074       163,452      143,832
expenses
(Loss) income from    (22,177)      (23,863)      27,716       (20,388)
operations
Other (expense)       (458)         141           (1,342)      1,457
income, net
Interest expense     (434)         (394)         (1,646)      (1,591)
(Loss) income before  (23,069)      (24,116)      24,728       (20,522)
income tax
Benefit from
(provision for)       3,188         (1,676)       (2,640)      (1,771)
income tax
Net (loss) income    $(19,881)   $(25,792)   $22,088    $(22,293)
                                                           
                                                           
Net (loss) income per                                       
common share
Basic               $(0.71)     $(0.96)     $ 0.80       $ (0.84)
Diluted             $(0.71)     $(0.96)     $ 0.76       $ (0.84)
                                                           
Weighted average
number of common
shares used in                     
computing net (loss)
income per common
share
Basic               27,832,793    26,791,280   27,774,778   26,551,234
Diluted             27,832,793    26,791,280   29,045,066   26,551,234


EnerNOC, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except par value and share data)
(unaudited)
                                          December 31, 2013 December 31, 2012
ASSETS                                                      
Current assets:                                             
Cash and cash equivalents                 $149,189        $115,041
Trade accounts receivable, net             35,933            35,208
Unbilled revenue                          66,675            45,269
Capitalized incremental direct customer    9,509             10,226
contract costs
Prepaid expenses, deposits and other       9,377             6,945
current assets
Total current assets                      270,683           212,689
                                                           
Property and equipment, net               47,419            32,592
Goodwill and intangible assets, net       94,290            105,129
Capitalized incremental direct customer    1,995             3,929
contract costs
Deposits and other assets                 1,568             826
Total assets                              $415,955        $ 355,165
                                                           
LIABILITIES AND STOCKHOLDERS' EQUITY                        
Current liabilities:                                        
Accounts payable                          $2,031          $ 3,976
Accrued capacity payments                 76,676            49,258
Accrued payroll and related expenses      13,370            13,044
Accrued expenses and other current         12,386            9,663
liabilities
Deferred revenue                          20,625            20,063
Total current liabilities                 125,088           96,004
                                                           
Deferred tax liability                    6,211             4,222
Deferred revenue                          6,819             11,837
Other liabilities                         8,342             3,080
Total long-term liabilities               21,372            19,139
                                                           
Stockholders' equity:                                       
Common stock, $0.001 par value; 50,000,000
shares authorized, 29,920,807 and
29,019,923 shares issued and outstanding   30                29
at December 31, 2013 and December 31,
2012, respectively
Additional paid-in capital                353,354           344,137
Accumulated other comprehensive loss      (2,535)           (702)
Accumulated deficit                       (81,354)          (103,442)
Total stockholders' equity                269,495           240,022
Total liabilities and stockholders'        $415,955        $ 355,165
equity


EnerNOC, Inc.
Condensed Consolidated Statements of Cash Flow Data
(in thousands)
(unaudited)
                                                                
                                                                
                                                                
                                  Three Months Ended    Twelve Months Ended
                                  December 31,          December 31,
                                  2013       2012       2013       2012
Cash provided by operating         $46,005  $18,145  $79,464  $31,011
activities
Cash (used in) provided by         (4,086)    3,562      (37,889)   (3,585)
investing activities
Cash (used in) provided by         (4,172)    215        (6,804)    356
financing activities
Effects of exchange rate changes   212        (49)       (623)      (38)
on cash and cash equivalents
Net change in cash and cash        37,959     21,873     34,148     27,744
equivalents
Cash and cash equivalents at       111,230    93,168     115,041    87,297
beginning of period
Cash and cash equivalents at end   $149,189 $115,041 $149,189 $115,041
of 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 (loss) income, non-GAAP net (loss)
income 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 (loss) income is GAAP net
(loss) income; the GAAP measure most comparable to non-GAAP net (loss) income
per share is GAAP net (loss) income per share; the GAAP measure most
comparable to adjusted EBITDA is GAAP net (loss) 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 (loss) income 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 twelve month periods ended December 31,
2013 and 2012, respectively, as well as reasons for excluding these individual
items:

  *Management defines non-GAAP net (loss) income as net (loss) income 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 (loss) income, excluding
    depreciation, amortization, stock-based compensation, interest, income
    taxes and other (expense) income, net. 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 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 (loss) income, non-GAAP net (loss) income 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 (Loss) Income And Net (Loss) Income Per Share
(in thousands, except share and per share data)
(Unaudited)
                                                         
                                     Three Months Ended December 31,
                                     2013                 2012
                                                         
                                                         
GAAP net loss                        $(19,881)          $(25,792)
ADD: Stock-based compensation (1)   4,036                3,598
ADD: Amortization expense of         1,769                1,803
acquired intangible assets (1)
Non-GAAP net loss                    $(14,076)          $(20,391)
                                                         
GAAP net loss per diluted share      $(0.71)            $(0.96)
ADD: Stock-based compensation (1)   0.14                 0.13
ADD: Amortization expense of         0.06                 0.07
acquired intangible assets (1)
Non-GAAP net loss per diluted share  $(0.51)            $(0.76)
                                                         
Weighted average number of diluted    27,832,793           26,791,280
common shares outstanding
                                                         
                                     Twelve Months Ended December 31,
                                     2013                 2012
                                                         
                                                         
GAAP net income (loss)               $22,088            $(22,293)
ADD: Stock-based compensation (1)   15,868               13,616
ADD: Amortization expense of         7,029                7,241
acquired intangible assets (1)
Non-GAAP net income (loss)           $44,985            $(1,436)
                                                         
GAAP net income (loss) per diluted    $0.76              $(0.84)
share
ADD: Stock-based compensation (1)   0.55                 0.52
ADD: Amortization expense of         $0.24              $0.27
acquired intangible assets (1)
Non-GAAP net income (loss) per        1.55                 (0.05)
diluted share
                                                         
Weighted average number of diluted    29,045,066           26,551,234
common shares outstanding
                                                         
(1) The non-GAAP adjustments would have no impact on the provision for
income taxes recorded during the three or twelve month periods ended December
31, 2013 and 2012, respectively.


EnerNOC, Inc.
Reconciliation of Adjusted EBITDA
(in thousands)
(unaudited)
                                                               
                            Three Months Ended December Twelve Months Ended
                             31,                         December 31,
                            2013         2012         2013      2012
Net (loss) income           $(19,881)   $(25,792)   $22,088 $(22,293)
Add back:                                                       
Depreciation and             7,228         6,366         27,844    25,218
amortization
Stock-based compensation     4,036         3,598         15,868    13,616
expense
Other expense (income), net 458           (141)        1,342     (1,457)
Interest expense            434           394          1,646     1,591
(Benefit from) provision for (3,188)       1,676        2,640     1,771
income tax
Adjusted EBITDA             $(10,913)   $(13,899)   $71,428 $18,446


EnerNOC, Inc.
Reconciliation of Free Cash Flow
(in thousands)
(unaudited)
                                                                 
                              Three Months Ended December Twelve Months Ended
                               31,                         December 31,
                              2013          2012          2013     2012
Net cash provided by operating $46,005     18,145     $79,464 $31,011
activities
Subtract:                                                         
Purchases of property and      (3,738)       (4,102)       (36,663)  (15,854)
equipment
Free cash flow                $42,267     14,043     $42,801 $15,157

                         Non-GAAP Financial Guidance

This press release also includes estimates of future non-GAAP net (loss)
income and net (loss) income per diluted share.A reconciliation of these
amounts to the nearest expected GAAP results, which exclude the forecasted
impact of the acquisition of Entelios AG and Activation Energy, as announced
on February 13, 2014, is presented below:

                                                     
                    Three Months Ending               Twelve Months Ending
                    March 31, 2014                    December 31, 2014
                                  Per Diluted Share           Per Diluted
                                                                   Share
In Millions, Except  Low     High    Low      High     Low   High  Low   High
Per Share Amounts
                                                                 
Projected GAAP Net   ($31.5) ($30.0) ($1.13)  ($1.07)  $21.0 $24.0 $0.70 $0.80
(Loss) Income
                                                                 
Adjustments:                                                      
Stock-based         4.5     4.6     0.16     0.16     16.0  16.0  0.53  0.53
compensation
Amortization
expense of acquired  1.8     1.8     0.07     0.07     7.0   7.0   0.24  0.24
intangible assets
Projected Non-GAAP   (25.2)  (23.6)  (0.90)   (0.84)   44.0  47.0  1.47  1.57
Net (Loss) Income
                                                                 
Adjustments:                                                      
Depreciation        5.7     5.8                     23.0  23.0       
Interest and other  0.5     0.5                     2.0   2.0        
expense, net
(Benefit from)
provision for income (0.5)   (0.2)                   11.0  12.0       
taxes
Adjusted EBITDA      ($19.5) ($17.5)                 $80.0 $84.0      
                                                                 
Weighted Average
Number of Common     28.0    28.0                    30.0  30.0       
Shares
Outstanding-Diluted

                         Non-GAAP Financial Guidance

This press release also includes estimates of future non-GAAP net (loss)
income and net (loss) income per diluted share.A reconciliation of these
amounts to the nearest expected GAAP results, which include the forecasted
impact of the acquisition of Entelios AG and Activation Energy, as announced
on February 13, 2014, is presented below:

                                                     
                    Three Months Ending               Twelve Months Ending
                    March 31, 2014                    December 31, 2014
                                  Per Diluted Share           Per Diluted
                                                                   Share
In Millions, Except  Low     High    Low      High     Low   High  Low   High
Per Share Amounts
                                                                 
Projected GAAP Net   ($33.5) ($32.0) ($1.20)  ($1.14)  $12.0 $15.0 $0.40 $0.50
(Loss) Income
                                                                 
Adjustments:                                                      
Stock-based         4.5     4.6     0.16     0.16     16.0  16.5  0.53  0.55
compensation
 Amortization
expense of acquired  2.2     2.1     0.08     0.08     9.5   9.0   0.32  0.30
intangible assets
Projected Non-GAAP   (26.8)  (25.3)  (0.96)   (0.90)   37.5  40.5  1.25  1.35
Net (Loss) Income
                                                                 
Adjustments:                                                      
Depreciation        5.8     6.0                     23.5  23.5       
 Interest and other 0.5     0.5                     2.0   2.0        
expense, net
(Benefit from)
provision for income (0.5)   (0.2)                   11.0  12.0       
taxes
Adjusted EBITDA      ($21.0) ($19.0)                 $74.0 $78.0      
                                                                 
Weighted Average
Number of Common     28.0    28.0                    30.0  30.0       
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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