EnerNOC, Inc. (Nasdaq:ENOC), a leading provider of energy
intelligence software (EIS), today announced results for the first
quarter ended March 31, 2015.
"In the first quarter, we advanced our leadership position in
the energy intelligence software (EIS) industry through significant
growth in our ARR and the formation of new partnerships," said Tim
Healy, Chairman and CEO of EnerNOC. "We are driving improved
performance across the key metrics we use to track the success of
our SaaS offerings. We are especially pleased with our enterprise
gross margin, which was approximately 60% in the first quarter and
has increased significantly since we began selling our platform
solution last year."
Summary Financial
Results |
In Thousands, Except Per Share
Amounts |
|
Q1
2015 |
Q1
2014 |
Revenue |
$50,551 |
$52,508 |
Net Loss |
|
|
GAAP |
($50,301) |
($30,413) |
Non-GAAP(1) |
($39,600) |
($23,357) |
Net Loss Per Basic and Diluted
Share |
|
|
GAAP |
($1.80) |
($1.09) |
Non-GAAP(1) |
($1.41) |
($0.84) |
Cash Flow Used in
Operations |
($18,452) |
($11,566) |
Free Cash Flow(1) |
($23,658) |
($17,679) |
Adjusted EBITDA(1) |
($30,012) |
($18,424) |
|
|
|
(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. |
Recent Highlights
- The Company continued to expand its growing base of enterprise
EIS customers, signing new deals with, among others, real estate
investment trust company Macerich, multiple school districts, and
two of Australia's largest food manufacturers – George Western
Foods, a subsidiary of Associated British Foods plc (ABF), and
Fletcher International. The Company also added approximately 3,000
new enterprise customers in the quarter through its acquisition of
World Energy Solutions.
- The Company grew its ARR to $122 million in the first quarter
of 2015, an increase of 82% year-over-year and 40%
quarter-over-quarter. Enterprise ARR more than doubled sequentially
to $55 million due to strong organic growth and the acquisition of
World Energy Solutions.
- The Company debuted its enhanced enterprise EIS platform at its
annual user conference, EnergySMART, including a new user interface
that makes energy management simpler and more intuitive, as well as
new procurement capabilities that allow users to identify and act
upon favorable buying opportunities.
- The Company announced a strategic partnership with SunPower. As
part of the agreement, SunPower will bundle EnerNOC's software with
SunPower's solar energy systems to provide an integrated solution
to its new and existing enterprise customers.
- The Company announced that it will collaborate with Tesla on
the deployment and management of energy storage systems in
commercial and industrial buildings. The collaboration will enable
enterprises to monetize batteries through demand charge management
and demand response using EnerNOC's software.
Company Issues Second Quarter Guidance and Updates Full
Year Guidance
The Company today issued guidance for the second quarter of 2015
and updated its previously issued guidance for the full year. The
Company's guidance is based on the current indications for its
business, which may change at any time.
|
Guidance for Quarter Ending June 30, 2015 |
|
|
|
Total Revenue (in
millions) |
|
$60-$70 |
GAAP Net Loss Per Diluted
Share |
|
($1.23)-($1.13) |
Non-GAAP Net Loss Per Diluted
Share(1) |
|
($0.91)-($0.79) |
Adjusted EBITDA(1) (in
millions) |
|
($18)-($14) |
|
|
|
(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. |
|
|
|
|
Guidance for Year Ending December 31, 2015 |
|
Issued on
February 26, 2015 |
Issued on May 7,
2015 |
Total Revenue (in
millions) |
$410-$430 |
$410-$430 |
Grid Operator
Revenue |
$270-$280 |
$270-$280 |
Utility
Revenue |
$70-$75 |
$70-$75 |
Enterprise
Revenue |
$70-$75 |
$70-$75 |
GAAP Net Loss Per Diluted
Share |
($3.23)-($3.12) |
($3.12)-($3.02) |
Non-GAAP Net Loss Per Diluted
Share(1) |
($1.77)-($1.66) |
($1.72)-($1.61) |
Adjusted EBITDA(1) (in
millions) |
($14)-($10) |
($14)-($10) |
|
|
|
(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. |
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
financial results and management's outlook for the business. The
conference call may be accessed in the United States by dialing
+1.800.553.5260 and using access code "ENOC". The conference call
may be accessed outside of the United States by dialing
+1.612.332.1210 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 357964 or by accessing the webcast replay on
the Company's investor relations website.
About EnerNOC
EnerNOC is a leading provider of cloud-based energy intelligence
software (EIS) and services to thousands of enterprise customers
and utilities globally. EnerNOC's EIS solutions for enterprise
customers improve energy productivity by optimizing how they buy,
how much they use, and when they use energy. EIS for enterprise
includes budgeting and procurement, utility bill management,
facility optimization, visibility and reporting, project tracking,
demand management, and demand response. EnerNOC's EIS solutions for
utilities help maximize customer engagement and the value of
demand-side resources, including demand response and energy
efficiency. EnerNOC supports customer success with its world-class
professional services team and a Network Operations Center (NOC)
staffed 24x7x365. 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 Operations |
(in thousands, except
share and per share data) |
(unaudited) |
|
|
|
|
Three Months
Ended |
|
March
31, |
|
2015 |
2014 |
Revenues: |
|
|
Grid operator |
$23,713 |
$35,770 |
Utility |
10,781 |
10,309 |
Enterprise |
16,057 |
6,429 |
Total revenues |
50,551 |
52,508 |
Cost of revenues: |
31,956 |
36,139 |
Gross profit |
18,595 |
16,369 |
Operating expenses: |
|
|
Selling and marketing |
28,496 |
18,499 |
General and administrative |
28,289 |
23,677 |
Research and development |
7,451 |
5,175 |
Total operating expenses |
64,236 |
47,351 |
Loss from operations |
(45,641) |
(30,982) |
Other (expense) income, net |
(4,657) |
574 |
Interest expense |
(2,292) |
(450) |
Loss before income tax |
(52,590) |
(30,858) |
Benefit from income tax |
2,285 |
425 |
Net loss |
(50,305) |
(30,433) |
Net loss attributable to
noncontrolling interest |
(4) |
(20) |
Net loss attributable to EnerNOC, Inc. |
($50,301) |
($30,413) |
Net loss per common share attributable to
EnerNOC, Inc. |
|
|
Basic and diluted |
($1.80) |
($1.09) |
|
|
|
Weighted average number of common
shares used in computing net loss per share attributable to
EnerNOC, Inc. |
Basic and diluted |
28,007,756 |
27,923,861 |
|
|
|
|
|
|
EnerNOC,
Inc. |
Condensed Consolidated
Balance Sheets |
(in thousands, except
par value and share data) |
(unaudited) |
|
|
|
|
March 31, |
December 31, |
|
2015 |
2014 |
ASSETS |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$152,428 |
$254,351 |
Trade accounts receivable, net |
43,010 |
40,875 |
Unbilled revenue |
40,040 |
97,512 |
Capitalized incremental direct customer
contract costs |
7,800 |
7,633 |
Prepaid expenses, deposits and other current
assets |
23,197 |
19,950 |
Total current assets |
$266,475 |
$420,321 |
Property and equipment, net |
49,753 |
50,458 |
Goodwill and intangible assets, net |
215,201 |
146,050 |
Capitalized incremental direct customer
contract costs, long-term |
912 |
982 |
Deposits and other assets |
8,234 |
6,891 |
Total assets |
$540,575 |
$624,702 |
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
Current liabilities: |
|
|
Accounts payable |
$ 3,863 |
$ 9,250 |
Accrued capacity payments |
58,726 |
92,332 |
Accrued payroll and related expenses |
17,757 |
18,446 |
Accrued expenses and other current
liabilities |
27,201 |
28,724 |
Deferred revenue |
17,791 |
13,738 |
Total current liabilities |
$125,338 |
$162,490 |
Deferred tax liability |
16,570 |
16,449 |
Deferred revenue, long-term |
6,750 |
5,816 |
Other liabilities |
8,969 |
8,919 |
Convertible senior notes, net |
139,900 |
138,908 |
Total long-term liabilities |
$172,189 |
$170,092 |
Stockholders' equity: |
|
|
Common stock, $0.001 par value; 50,000,000
shares authorized, 30,456,363 and 29,833,578 shares issued and
outstanding at March 31, 2015 and December 31, 2014,
respectively |
30 |
30 |
Additional paid-in capital |
369,630 |
365,855 |
Accumulated other comprehensive loss |
(7,294) |
(4,752) |
Accumulated deficit |
(119,561) |
(69,260) |
Total EnerNOC, Inc. stockholders' equity |
242,805 |
291,873 |
Non controlling interest |
243 |
247 |
Total stockholders' equity |
243,048 |
292,120 |
Total liabilities and stockholders'
equity |
$540,575 |
$624,702 |
|
|
|
|
|
|
EnerNOC,
Inc. |
Condensed Consolidated
Statements of Cash Flow Data |
(in
thousands) |
(unaudited) |
|
|
|
|
Three Months
Ended |
|
March
31, |
|
2015 |
2014 |
Cash used in operating activities |
($18,452) |
($11,566) |
Cash used in investing activities |
(80,566) |
(30,950) |
Cash used in financing activities |
(1,011) |
(3,119) |
Effects of exchange rate changes on cash and
cash equivalents |
(1,894) |
144 |
Net change in cash and cash equivalents |
(101,923) |
(45,491) |
Cash and cash equivalents at beginning of
period |
254,351 |
149,189 |
Cash and cash equivalents at end of
period |
$152,428 |
$103,698 |
|
|
|
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 attributable to EnerNOC, Inc., non-GAAP net (loss)
income per share attributable to EnerNOC, Inc., 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
attributable to EnerNOC, Inc. is GAAP net (loss) income
attributable to EnerNOC, Inc.; the GAAP measure most comparable to
non-GAAP net (loss) income per share attributable to EnerNOC, Inc.
is GAAP net (loss) income per share attributable to EnerNOC, Inc.;
the GAAP measure most comparable to adjusted EBITDA is GAAP net
(loss) income attributable to EnerNOC, Inc.; and the GAAP measure
most comparable to free cash flow is cash flows provided by (used
in) 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 attributable to EnerNOC, Inc. 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:
- Management defines non-GAAP net income (loss) attributable to
EnerNOC, Inc. as net income (loss) attributable to EnerNOC, Inc.
before accretion expense related to the debt-discount portion of
interest expense associated with the convertible note issuance,
stock-based compensation, direct and incremental expenses related
to acquisitions or divestitures, and amortization expenses related
to acquisition-related intangible assets, net of related tax
effects.
- Management defines adjusted EBITDA as net income (loss)
attributable to EnerNOC, Inc., excluding depreciation,
amortization, stock-based compensation, direct and incremental
expenses related to acquisitions or divestitures, interest, income
taxes and other income (expense).
- Management defines free cash flow as net cash provided by (used
in) operating activities, less capital expenditures, plus net cash
provided by (used in) the sale of assets or disposals of components
of an entity. Management defines capital expenditures as purchases
of property and equipment, which includes capitalization of
internal-use software development costs.
Non-GAAP net (loss) income attributable to EnerNOC, Inc.,
non-GAAP net (loss) income per share attributable to EnerNOC, Inc.,
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 Attributable to EnerNOC, Inc. And Net
Loss Per Share Attributable to EnerNOC, Inc. |
(in thousands, except
share and per share data) |
(unaudited) |
|
|
|
|
Three
Months Ended March 31, |
|
2015 |
2014 |
GAAP net loss attributable to EnerNOC,
Inc. |
($50,301) |
($30,413) |
ADD: Stock-based compensation expense |
4,409 |
4,227 |
ADD: Amortization expense of acquired
intangible assets |
3,918 |
1,883 |
ADD: Direct and incremental expenses related
to acquisitions or divestitures(1) |
1,382 |
946 |
ADD: Debt discount portion of convertible
debt |
992 |
-- |
Non-GAAP net loss attributable to EnerNOC,
Inc. |
($39,600) |
($23,357) |
|
|
|
GAAP net loss per diluted share attributable
to EnerNOC, Inc. |
($1.80) |
($1.09) |
ADD: Stock-based compensation expense |
0.16 |
0.15 |
ADD: Amortization expense of acquired
intangible assets |
0.14 |
0.07 |
ADD: Direct and incremental expenses related
to acquisitions or divestitures(1) |
0.05 |
0.03 |
ADD: Debt discount portion of convertible
debt |
0.04 |
-- |
Non-GAAP net loss per diluted share
attributable to EnerNOC, Inc. |
($1.41) |
($0.84) |
|
|
|
(1) Includes third party
professional service costs such as legal, accounting and valuation,
and compensation, severance and related costs. |
|
|
|
|
|
|
EnerNOC,
Inc. |
Reconciliation of
Adjusted EBITDA |
(in
thousands) |
(unaudited) |
|
|
|
|
Three Months
Ended |
|
March
31, |
|
2015 |
2014 |
Net loss attributable to EnerNOC, Inc. |
($50,301) |
($30,413) |
Add back: |
|
|
Depreciation and amortization |
9,834 |
7,365 |
Stock-based compensation expense |
4,409 |
4,227 |
Direct and incremental expenses related to
acquisitions or divestitures(1) |
1,382 |
946 |
Other expense(2) |
4,657 |
(574) |
Interest expense |
2,292 |
450 |
Benefit from income tax |
(2,285) |
(425) |
Adjusted EBITDA |
($30,012) |
($18,424) |
|
|
|
(1) Includes third party
professional service costs such as legal, accounting and valuation,
and compensation, severance and related costs. |
(2) Other expense primarily
relates to foreign currency losses. |
|
|
|
|
|
|
EnerNOC,
Inc. |
Reconciliation of Free
Cash Flow |
(in
thousands) |
(unaudited) |
|
|
|
|
Three Months
Ended |
|
March
31, |
|
2015 |
2014 |
Net cash used in operating activities |
($18,452) |
($11,566) |
Subtract: Purchases of property and
equipment |
(5,206) |
(6,113) |
Free cash flow |
($23,658) |
($17,679) |
|
|
|
Non-GAAP Financial
Guidance
This press release also includes estimates of future adjusted
EBITDA and non-GAAP net loss per diluted share attributable to
EnerNOC, Inc. A reconciliation of these amounts to the nearest
expected GAAP results, is presented below:
|
Three Months
Ended |
Twelve Months
Ended |
|
June
30, 2015 |
December 31, 2015 |
|
|
|
Per
Diluted Share |
|
|
Per
Diluted Share |
In Millions, Except Per Share
Amounts |
Low |
High |
Low |
High |
Low |
High |
Low |
High |
Projected GAAP Net Loss |
($35.0) |
($32.0) |
($1.23) |
($1.13) |
($89.0) |
($86.0) |
($3.12) |
($3.02) |
Adjustments: |
|
|
|
|
|
|
|
|
Stock-based compensation |
$4.5 |
$5.0 |
$0.16 |
$0.18 |
$18.0 |
$18.5 |
$0.63 |
$0.65 |
Amortization expense of acquired intangible
assets |
$3.7 |
$3.7 |
$0.13 |
$0.13 |
$16.5 |
$16.0 |
$0.58 |
$0.57 |
Direct and incremental expenses related to
acquisitions or divestiture |
$0.0 |
$0.0 |
$0.00 |
$0.00 |
$1.4 |
$1.4 |
$0.05 |
$0.05 |
Accretion expense related to the
debt-discount portion of interest associated with convertible note
issuance |
$1.0 |
$1.0 |
$0.03 |
$0.03 |
$4.1 |
$4.1 |
$0.14 |
$0.14 |
Projected Non-GAAP Net
Loss |
($25.8) |
($22.3) |
($0.91) |
($0.79) |
($49.0) |
($46.0) |
($1.72) |
($1.61) |
Adjustments: |
|
|
|
|
|
|
|
|
Depreciation |
$5.8 |
$6.3 |
|
|
$25.0 |
$26.0 |
|
|
|
|
|
|
|
|
|
|
|
Interest and other expense, net(1) |
$2.0 |
$2.0 |
|
|
$10.0 |
$10.0 |
|
|
Provision for income taxes |
$0.0 |
$0.0 |
|
|
$0.0 |
$0.0 |
|
|
Adjusted EBITDA |
($18.0) |
($14.0) |
|
|
($14.0) |
($10.0) |
|
|
Weighted Average Number of Common
Shares Outstanding-Diluted |
28.4 |
28.4 |
|
|
28.5 |
28.5 |
|
|
|
(1) "Interest and other expense,
net" excludes "Accretion expense related to the debt-discount
portion of interest associated with convertible note issuance"
which is already captured in the Projected Non-GAAP Net Loss
reconciliation. |
|
|
|
|
|
|
|
|
|
CONTACT: EnerNOC Media Relations:
Robin Deliso
617.692.2601
news@enernoc.com
Investor Relations:
Christopher Sands
617.692.2569
ir@enernoc.com
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