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"We delivered strong results in the first quarter, despite the challenges of rising commodity prices and the previously announced changes to our mid-market business," said Phil Adams, CEO of World Energy Solutions. "Revenue grew 27%, reflecting the addition of NEP, strong growth in our Energy Efficiency Services segment, increased traction in our cross-sell efforts, near record performance from our Wholesale team, and new customer wins across our Retail Energy Procurement business. World Energy's fundamentals and long-term outlook remain strong, and our results continue to validate our transition from an auction-based, procurement-only company to one offering a broader range of energy management services.
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Asia Global Energy: World Energy Solutions Announces Record Q1 Revenue and Backlog http://www.globenewswire.com/news-release/2013/05/14/546978/10032684/en/World-Energy-Solutions-Announces-Record-Q1-Revenue-and-Backlog.html
WORCESTER, Mass., May 14, 2013 (GLOBE NEWSWIRE) -- World Energy Solutions, Inc. (Nasdaq:XWES), a leading energy management services firm, today announced financial results for the first quarter ended March 31, 2013.
Financial Highlights (All figures are in US dollars; comparisons of performance are made between Q1 2013 results and Q1 2012 results, unless otherwise noted.)
Quarterly revenue increased 27% to $8.7 million Annualized backlog increased 23% to $23.8 million Total backlog plus deferred revenue rose 27% to $50.2 million Operating Results EBITDA grew 161% to $0.4 million Net loss was ($1.0 million), or ($0.08) per share Gross margins were 74% Liquidity and Balance Sheet Cash flow from operations was $0.7 million, up $1.2 million Free cash flow was $4.6 million for the 12-months ended March 31, 2013 Cash and cash equivalents were $2.1 million Business Highlights
The large commercial & industrial (LCI) team ran a successful multi-state aggregation for a Fortune 100 company; notched new hospital wins with channel partner GNYHA; and made inroads in Texas with a successful auction for Abilene Independent School District
Wholesale posted its second best quarter ever, executing major electricity and natural gas buys for utilities in the Northeast, Midwest and Mid-Atlantic Government supported the 19th RGGI auction and continued to grow the Federal Government's Natural Gas Acquisition Program (NGAP) Mid-market experienced strong sales in the Southwest, key renewals in the Northeast
Energy Efficiency Services: Grew revenue 57% over Q1 2012 Drove cross-sell leads in CT and MA
"We delivered strong results in the first quarter, despite the challenges of rising commodity prices and the previously announced changes to our mid-market business," said Phil Adams, CEO of World Energy Solutions. "Revenue grew 27%, reflecting the addition of NEP, strong growth in our Energy Efficiency Services segment, increased traction in our cross-sell efforts, near record performance from our Wholesale team, and new customer wins across our Retail Energy Procurement business. World Energy's fundamentals and long-term outlook remain strong, and our results continue to validate our transition from an auction-based, procurement-only company to one offering a broader range of energy management services.
"For 2013, our plan calls for top-line growth of 20%, EBITDA increasing by over 50%, and cash generation sufficient to meet our working capital requirements and to retire the obligations incurred from our acquisitions. We expect net loss to remain on par with 2012's results, reflecting the impact of the revenue recognition policy change we announced last quarter that defers certain revenue to the future while expensing channel and sales commission as cash is received or contracts are booked."
Revenue for the three months ended March 31, 2013 rose 27% over the same period last year to $8.7 million, reflecting significant increases in both Energy Procurement and Energy Efficiency Services. Energy Procurement grew 24%, reflecting the acquisition of NEP in Q4 2012 and continued execution in the Company's base business. Energy Efficiency Services grew 57%, as the Company continued to execute under the four utility efficiency program designations it was awarded in 2012 and capitalized on cross-sell opportunities.
Gross margins were 74% for the quarter compared to 73% for the same period last year, reflecting an increase in Energy Procurement gross margins. Energy Procurement gross margins increased 4% to 83% as a result of increased revenue with costs only slightly increasing over Q1 2012. Energy Efficiency Services gross margins were 20% compared to 27% in Q1 2012, reflecting increased payroll costs associated with additional project managers in Q1 2013 and, to a lesser extent, slightly lower margins on projects completed in Q1 2013 versus Q1 2012. Operating expenses as a percentage of sales decreased 3% to 81% as the growth in revenue exceeded the increase in costs. The increase in operating expenses was primarily due to higher payroll, commissions and intangible assets related to the NEP acquisition and general headcount increases in the Company's sales, marketing and back office operations. As a result, the Company's operating margin improved 4% to (7)% and EBITDA* margin was 5% compared to 2% in the prior year quarter.
