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, 2014. “Having completed an important year of sharpening focus, dramatic growth, improved performance, and significant investment in our technology platform, Lime Energy is stronger today than at any time in our history,” said Lime Energy President & CEO Adam Procell. “Lime is now perfectly aligned with our valued utility clients, and with our clean balance sheet and latest round of financing, we are better able to serve these clients and their small business customers.”
Results for the twelve-month period ended December 31, 2014
- Consolidated revenue from continuing operations increased $7.3 million, or 14.1%, to $58.8 million from $51.5 million in the year-earlier period.
- Gross profit increased $3.9 million, or 27.9%, to $17.7 million, while the gross profit margin improved from 26.8% to 30.0%.
- Selling, general and administrative expense declined $2.7 million to $20.2 million. SG&A expense for 2014 included $813 thousand of expenses related to the restatement and ongoing stockholder lawsuits compared to $2.6 million of similar expenses in the year-earlier period. The 2014 SG&A expense also included $309 thousand of expenses related to raising capital, pursuing mergers and acquisitions and $113 of severance costs, while the 2013 SG&A expense also included $327 thousand of share based compensation expense related to the vesting of options and restricted stock of terminated employees. Excluding these expenses, SG&A decreased $962 thousand, or 4.7% from 2013 levels.
- The loss from continuing operations declined $8.5 million, or 76.4%, to $2.6 million.
- The loss from discontinued operations declined $4.5 million, or 100.2%, to a profit of $7 thousand.
- The net loss declined $13.0 million, or 83.2%, to $2.6 million.
- The basic and diluted loss per share from continuing operations declined $2.46, or 63.1%, to $1.44 from $3.90. The loss per share from discontinued operations declined $1.25, or 100%, to $0.00 from $1.25. The total net loss per share declined $3.71, or 72.0%, to $1.44 from $5.15. The expenses related to the restatement and stockholder lawsuits contributed $0.21 and $0.72 to the basic and diluted loss per share from continuing operations and the total net loss per share for the twelve-month periods ended December 31, 2014 and 2013, respectively.
- The adjusted EBITDA loss declined $5.7 million, or 79.1%, to $1.5 million from $7.3 million. Excluding expenses related to the restatement and stockholder lawsuits, the adjusted EBITDA loss declined $4.0 million, or 85.0%, to $0.7 million from $4.7 million.*
* Please see the reconciliation of non-GAAP financial measures and Regulation G disclosure later in this press release.
Business Highlights
- Awarded a 2-year contract following re-compete of the AEP Ohio small business energy efficiency program;
- Raised $12 million in capital through the sale of preferred stock to fund the Company’s growth;
- Made significant improvements in our construction administration processes;
- Re-negotiated terms with suppliers while getting current on payments;
- Improved financial reporting and communication between accounting and operations;
- Developed technical and sales training courses for employees across all utility programs;
- Developed automated payment application for our Direct Install program technology platform
- Instituted a new commission plan for energy advisors that resulted in improved program sales.
LIME ENERGY CO. Condensed Consolidated Statement of Operations ($ Thousands, except per share amounts) | ||||||||||||||||
| Twelve Months Ended | ||||||||||||||||
| December 31 | Change | |||||||||||||||
| 2014 | 2013 | $ | % | |||||||||||||
| Revenue | $ | 58,816 | $ | 51,565 | $ | 7,251 | 14.1 | % | ||||||||
| Cost of sales | 41,162 | 37,758 | 3,404 | 9.0 | % | |||||||||||
| Gross profit | 17,654 | 13,807 | 3,847 | 27.9 | % | |||||||||||
| Selling, general and administrative | 20,195 | 22,933 | (2,738 | ) | -11.9 | % | ||||||||||
| Amortization of intangibles | - | 10 | (10 | ) | -100.0 | % | ||||||||||
| Operating loss | (2,541 | ) | (9,136 | ) | 6,595 | -72.2 | % | |||||||||
| Total other income | (89 | ) | (2,001 | ) | 1,912 | -95.6 | % | |||||||||
| Loss from continuing operations | (2,630 | ) | (11,137 | ) | 8,507 | -76.4 | % | |||||||||
| Income (loss) from operation of discontinued business | 7 | (4,499 | ) | 4,506 | -100.2 | % | ||||||||||
| Net loss | $ | (2,623 | ) | $ | (15,636 | ) | $ | 13,013 | -83.2 | % | ||||||
| Preferred dividend | (2,979 | ) | (2,875 | ) | (104 | ) | 3.6 | % | ||||||||
| Net loss available to common stockholders | $ | (5,602 | ) | $ | (18,511 | ) | $ | 12,909 | -69.7 | % | ||||||
| Adjusted EBITDA | $ | (1,514 | ) | $ | (7,252 | ) | $ | 5,738 | -79.1 | % | ||||||
| Basic and Diluted Loss Per Common Share From | ||||||||||||||||
| Continuing operations | $ | (1.44 | ) | $ | (3.90 | ) | ||||||||||
| Discontinued operations | $ | - | $ | (1.25 | ) | |||||||||||
| Weighted Average Common Shares | ||||||||||||||||
Outstanding | 3,885 | 3,595 | ||||||||||||||
Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure
We report our financial results in accordance with generally accepted accounting principles (“GAAP”). However, we believe that certain non-GAAP financial measures that we use to manage the company’s business fall within the meaning of Regulation G (Disclosure of Non-GAAP Financial Measures) by the Securities and Exchange Commission. We have included these non-GAAP measures in the press release because we believe they may provide readers with additional meaningful comparisons to prior reported results.
A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measure is as follows (in thousands):
December 31 | Change | |||||||||||||||
| 2014 | 2013 | $ | % | |||||||||||||
| Net loss | (2,623 | ) | (15,636 | ) | 13,013 | -83.2 | % | |||||||||
| Interest expense, net | 89 | 2,001 | (1,912 | ) | -95.6 | % | ||||||||||
| Depreciation and amortization | 731 | 1,017 | (286 | ) | -28.1 | % | ||||||||||
| EBITDA | (1,803 | ) | (12,618 | ) | 10,815 | -85.7 | % | |||||||||
| Share based compensation | 296 | 867 | (571 | ) | -65.9 | % | ||||||||||
| Income (loss) from operation of discontinued business | (7 | ) | 4,499 | (4,506 | ) | -100.2 | % | |||||||||
| Adjusted EBITDA | $ | (1,514 | ) | $ | (7,252 | ) | $ | 5,738 | -79.1 | % | ||||||
| Costs related to restatement activities | ||||||||||||||||
| and defense of stockholder lawsuits | 813 | 2,588 | (1,775 | ) | -68.6 | % | ||||||||||
| Adjusted EBITDA excluding one-time | ||||||||||||||||
| restatement and legal costs | $ | (701 | ) | $ | (4,664 | ) | $ | 3,963 | -85.0 | % | ||||||
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 designs and implements direct install programs for our utility clients which have consistently exceeded program savings goals. Our 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.
Conference Call Information
The company will hold a conference call with investors on Tuesday, March 31st at 4:30 pm ET to discuss these results.
Investors can access the call by dialing toll free 1-866-510-0707 and entering passcode 42383221. International callers can dial 1-617-597-5376 and use the same passcode.
The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at earnings.com, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (www.streetevents.com), a password-protected event management site.
FORWARD-LOOKING STATEMENTS
This news 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. Lime Energy has tried to identify these forward-looking statements by using words and phrases such as “may,” “expects,” “anticipates,” “believes,” “intends,” “estimates,” “plan,” “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 2015 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 Lime in Lime Energy’s subsequent SEC filings; such factors are incorporated herein by reference.
Additional Information
A full analysis of the twelve-month period results are available in the Company’s Form 10-K for the period ended December 31, 2014, which will be made available on the Company’s website at www.lime-energy.com and on EDGAR.
Contacts:
Colleen Brennan, 704-892-4442
investorrelations@lime-energy.com
