Lime Energy Co. Reports Results for Twelve-Month Period Ended December 31, 2015
Lime Energy Co. (NASDAQ:LIME), a leader in designing and implementing
demand-side energy efficiency programs for utilities, today announced
its results for the twelve-month period ended December 31, 2015. “Lime
Energy is well positioned to provide much needed services to small
business customers which meet the changing needs of the electric utility
industry,” said Adam Procell, Lime Energy President & CEO. “As this
industry takes shape, we will continue to make the investments which
position us to be a leader in the space, with a differentiated offering.
We will remain at the forefront of serving utility clients and their
small business customers.”
Results for the Twelve-Month Period ended December 31, 2015
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Consolidated revenue from continuing operations, including from our
acquisition of EnerPath, increased $53.8 million, or 91.5%, to $112.6
million from $58.8 million earned in 2014.
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Gross profit increased $20.1 million, or 113.9%, to $37.8 million.
Gross profit margin improved from 30.0% to 33.5%.
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Selling, general and administrative expenses increased $14.9 million,
or 73.7%, to $35.1 million. With the acquisition of EnerPath, our
combined SG&A expenses as a percentage of revenue declined to 31.1%
for 2015, as compared to 34.3% for 2014. SG&A expenses for 2015
included $477 thousand of legal expenses related to our July 2013
restatement and related stockholder lawsuits and SEC investigation,
compared to $813 thousand in 2014. For 2015, SG&A expenses also
included $1.9 million related to the acquisition of EnerPath.
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Net loss from continuing operations totaled $2.5 million, compared to
a net loss from continuing operations of $2.6 million in 2014.
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Net loss from discontinued operations was $632 thousand, compared to
income of $7 thousand in 2014.
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Net loss was $3.2 million, compared to net loss of $2.6 million in
2014.
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The basic and diluted loss per share from continuing operations
improved from $1.44 to $0.40 for 2015. The basic and diluted loss per
share from discontinued operations was $0.07 for 2015, compared to
$0.00 for 2014. The total basic and diluted loss per share improved
from $1.44 to $0.47 for 2015. The expenses related to Lime Energy’s
2013 restatement, stockholder lawsuits, and SEC investigation
contributed $0.05 and $0.21 to the basic and diluted loss per share
from continuing operations and the total net loss per share for 2015
and 2014.
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Adjusted EBITDA improved to positive $2.6 million from negative $1.5
million in 2014. As defined by the Company, Adjusted EBITDA includes
acquisition costs, legal expenses related to the 2013 restatement,
stockholder lawsuits, and SEC investigation, and a one-time non-cash
charge resulting from the Company’s determination, effective during
2015, to recognize revenue on the completed contract basis, rather
than the percentage of completion method. Our Adjusted EBITDA
excluding such expenses was positive $5.6 million in 2015, as compared
to negative $701 thousand in 2014.*
* Please see the reconciliation of non-GAAP financial measures and
Regulation G disclosure later in this press release.
Business Highlights
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During 2015, we were awarded several contracts under re-competes with
existing clients and expansions of several key utility programs.
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On March 24, 2015, we acquired EnerPath International Holding Company,
creating a national platform for delivering energy efficiency to mass
market customers (small businesses and residential). During 2015, we
integrated the technology and product development teams of Lime Energy
and EnerPath and are poised to lead the way for innovative technology
solutions serving commercial buildings.
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We deployed new technology solutions and energy efficiency measures
across all of our programs, bringing state-of-the-art solutions
including LED lighting to small business customers.
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We participated in key regulatory proceedings at the federal and state
levels, advocating for energy efficiency as a key solution to
environmental and power grid challenges.
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We put in place uniform procurement processes across all utility
programs.
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We moved our headquarters from North Carolina to New Jersey, improving
alignment of our executive management team and corporate resources.
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We added seven new utility programs, and we now serve 13 of the
nation’s 25 largest utilities.
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LIME ENERGY CO. Condensed Consolidated Statement of
Operations ($ Thousands, except per share amounts)
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Twelve Months Ended
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December 31
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Change
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2015
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2014
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$
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%
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Revenue
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$
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112,623
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$
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58,816
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$
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53,807
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91.5%
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Cost of sales
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74,860
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41,162
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33,698
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81.9%
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Gross profit
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37,763
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17,654
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20,109
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113.9%
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Selling, general and administrative
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35,077
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20,195
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14,882
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73.7%
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Acquisition costs
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1,941
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-
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1,941
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0.0%
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Amortization of intangibles
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879
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-
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879
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0.0%
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Operating loss
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(134)
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(2,541)
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2,407
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-94.7%
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Total other income
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(3,536)
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(89)
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(3,447)
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3873.0%
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Loss from continuing operations before income taxes
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(3,670)
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(2,630)
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(1,040)
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39.5%
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Income tax expense
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1,147
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-
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1,147
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0.0%
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Loss from continuing operations
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(2,523)
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(2,630)
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107
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-4.1%
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(Loss) Income from operation of discontinued business
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(632)
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7
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(639)
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-9128.6%
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Net loss
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$
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(3,155)
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$
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(2,623)
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$
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(532)
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20.3%
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Preferred dividend
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(1,293)
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(2,979)
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1,686
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-56.6%
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Net loss available to common stockholders
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$
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(4,448)
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$
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(5,602)
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$
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1,154
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-20.6%
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Basic and Diluted Loss Per Common Share From
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Continuing operations
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$
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(0.40)
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$
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(1.44)
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$
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1.04
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-71.9%
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Discontinued operations
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(0.07)
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$
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-
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(0.07)
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0.0%
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Basic and Diluted Loss Per Common Share
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$
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(0.47)
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$
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(1.44)
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$
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0.97
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-67.0%
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Weighted Average Common Shares
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Outstanding
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9,548
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3,885
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Adjusted EBITDA
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$
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2,573
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$
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(1,514)
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$
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4,087
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-269.9%
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Reconciliation of Non-GAAP Financial Measures and Regulation G
Disclosure
We report our financial results in accordance with generally accepted
accounting principles (“GAAP”). However, from time to time, we use
certain non-GAAP financial measures in evaluating and discussing the
Company’s results and performance. We believe that these non-GAAP
measures supplement the readers’ understanding of our financial
performance by providing our stockholders and investors with additional
information to evaluate our operating performance using criteria used by
our management in evaluating our performance in comparison to prior
results.
As presented in the tables above, Adjusted EBITDA excludes certain
financial information compared with net income (loss), the most directly
comparable GAAP financial measure.
Below is reconciliation of the non-GAAP financial measures to the most
directly comparable GAAP financial measure:
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Twelve Months Ended
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December 31
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Change
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2015
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2014
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$
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%
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Net loss
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(3,155)
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(2,623)
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(532)
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20.3%
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Other (expense) income, net
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3,536
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89
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3,447
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3873.0%
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Depreciation and amortization
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1,768
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731
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1,037
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141.9%
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Provision for income tax (benefit)
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(1,147)
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-
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(1,147)
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0.0%
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EBITDA
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1,002
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(1,803)
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2,805
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-155.6%
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Share based compensation
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939
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296
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643
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217.2%
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Income (loss) from operation of discontinued business
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632
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(7)
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639
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-9128.6%
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Adjusted EBITDA
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$
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2,573
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$
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(1,514)
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$
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4,087
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-269.9%
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Costs related to restatement activities
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and defense of stockholder lawsuits
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477
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813
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(336)
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-41.3%
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Acquisition costs
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1,940
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-
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1,940
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0.0%
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Change in accounting method
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642
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-
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642
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0.0%
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Adjusted EBITDA excluding one-time
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restatement and legal costs
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$
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5,632
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$
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(701)
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$
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6,333
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-903.4%
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About Lime Energy Co.
Lime Energy is building a new energy future. As a leading national
provider of energy efficiency for utilities’ small business customers,
Lime Energy designs and implements direct install programs for its
utility clients which have consistently exceeded program savings goals.
Its award-winning, integrated services programs provide utilities with
reliable energy efficiency resources while delivering the highest levels
of customer satisfaction. This next generation approach is helping
utilities across the country to go deeper and broader with the cheapest,
cleanest and fastest energy resource that we have — energy efficiency.
Additional Information
A full analysis of the results for the twelve-month period ended
December 31, 2015, is available in the Company’s Form 10-K, which will
be made available on the Company’s website at www.lime-energy.com
and on EDGAR at www.sec.gov.
Conference Call Information
Lime Energy will host a conference call with investors today, March 30,
2016, at 4:30 p.m. ET to discuss these results which can be accessed as
follows:
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North America:
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(866) 430-2032
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International:
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(704) 908-0415
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Passcode:
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47273064
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A live audio webcast will be available through Lime Energy’s Investor
Relations section of its website at http://www.lime-energy.com/investors/.
The webcast is also being distributed through the Thomson Reuters
StreetEvents Network. Institutional investors can access the call via
Thomson Reuters’ StreetEvents (www.streetevents.com),
a password-protected event management site.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 including statements that reflect Lime
Energy’s current expectations about its future results, performance,
prospects and opportunities. You can identify these forward-looking
statements by the use of words and phrases such as “may,” “expects,”
“anticipates,” “believes,” “intends,” “estimates,” “plans,” “should,”
“typical,” “preliminary,” “hope,” or similar expressions. These
forward-looking statements are based on information currently available
to Lime Energy and are subject to a number of risks, uncertainties and
other factors that could cause Lime Energy’s actual results,
performance, prospects or opportunities in the remainder of 2016 and
beyond to differ materially from those expressed in, or implied by,
these forward-looking statements. These risks and uncertainties are
described in Lime Energy’s most recent Annual Report on Form 10-K or as
may be described from time to time in Lime Energy’s subsequent SEC
filings; such risk factors are incorporated herein by reference.
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