EnerNOC, Inc. (Nasdaq:ENOC), a leading provider of energy
intelligence software (EIS), today announced results for the third
quarter ended September 30, 2015.
“Transformation continued to be the main theme during the third
quarter,” said Tim Healy, Chairman and CEO of EnerNOC. “New
customer successes, key account expansions, and growing market
interest in our EIS solutions underscored the progress we are
making with our strategy. The challenging grid operator markets
that weighed on our financial results did not impact our EIS
momentum and we remain at the forefront of this exciting new
enterprise software category.”
Summary
Financial Results |
|
|
|
|
In Thousands, Except
Per Share Amounts |
|
|
|
|
|
|
|
|
|
|
Q3 2015 |
Q3 2014 |
9M 2015 |
9M 2014 |
Revenue |
$ |
217,324 |
|
$ |
329,422 |
|
$ |
340,375 |
|
$ |
425,985 |
|
Net Income
(Loss) |
|
|
|
|
GAAP |
$ |
12,987 |
|
$ |
96,673 |
|
$ |
(56,095 |
) |
$ |
38,875 |
|
Non-GAAP1 |
$ |
21,417 |
|
$ |
100,322 |
|
$ |
(27,127 |
) |
$ |
56,271 |
|
Net Income
(Loss) Per Basic Share |
|
|
|
|
GAAP |
$ |
0.46 |
|
$ |
3.48 |
|
$ |
(1.98 |
) |
$ |
1.38 |
|
Non-GAAP1 |
$ |
0.75 |
|
$ |
3.61 |
|
$ |
(0.96 |
) |
$ |
2.00 |
|
Net Income
(Loss) Per Diluted Share |
|
|
|
|
GAAP |
$ |
0.44 |
|
$ |
3.11 |
|
$ |
(1.98 |
) |
$ |
1.33 |
|
Non-GAAP1 |
$ |
0.74 |
|
$ |
3.50 |
|
$ |
(0.96 |
) |
$ |
1.93 |
|
|
|
|
|
|
Cash Flow
Provided by (Used in) Operations |
$ |
3,771 |
|
$ |
22,949 |
|
$ |
(18,226 |
) |
$ |
28,320 |
|
Free Cash
Flow1 |
$ |
(992 |
) |
$ |
17,324 |
|
$ |
(32,959 |
) |
$ |
16,910 |
|
Adjusted
EBITDA1 |
$ |
31,707 |
|
$ |
125,153 |
|
$ |
(1,510 |
) |
$ |
90,441 |
|
|
|
|
|
|
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. |
Recent Highlights
- The Company signed a multi-year software contract with UK
energy retailer SmartestEnergy. SmartestEnergy will leverage the
Company’s software to launch new products for its business
customers.
- The Company formed a strategic partnership with EnTouch
Controls expanding the reach of its EIS to businesses that have
large numbers of small footprint outlets.
- The Company grew its South Korean grid operator portfolio to
over 700 megawatts of demand response resources and signed an
agreement with S1 Corporation, a group company of Samsung, who will
act as a channel partner for its demand response products.
Company Issues Fourth Quarter Guidance and Updated Full
Year Guidance
The Company today issued guidance for the fourth
quarter of 2015 and updated its previously issued guidance for the
full year. The Company’s guidance is based on current trends and
management’s current expectations for the Company’s business, which
may change at any time.
|
|
|
|
Guidance for Quarter Ending December 31, 2015 |
Total Revenue (in
millions) |
|
|
$50-$60 |
GAAP Net Loss Per Diluted Share |
|
|
($1.43)-($1.29) |
Non-GAAP Net Loss Per Diluted Share1 |
|
|
($1.13)-($0.97) |
Adjusted EBITDA1 (in
millions) |
|
|
($23.5)-($18.5) |
(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 August 6, 2015 |
Issued on November 5, 2015 |
Total Revenue (in millions) |
$410-$430 |
$390-$400 |
Grid Operator
Revenue |
$270-$280 |
$255-$260 |
Utility Revenue |
$70-$75 |
~$60 |
Enterprise Revenue |
$70-$75 |
$75-$80 |
GAAP Net Loss Per Diluted Share |
($3.12)-($3.02) |
($3.43)-($3.29) |
Non-GAAP Net Loss Per Diluted
Share1 |
($1.72)-($1.61) |
($2.10)-($1.94) |
Adjusted
EBITDA1 (in millions) |
($14)-($10) |
($25)-($20) |
(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 9:00 a.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
(800) 230-1766 (domestic) or (612) 288-0337 (international) 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 (800) 475-6701 or (320) 365-3844 and using
access code 371495, 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.
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 |
|
Nine Months Ended |
September 30, |
|
September 30, |
|
|
|
2015 |
|
|
|
|
|
2014 |
|
|
|
|
|
2015 |
|
|
|
|
|
2014 |
|
|
Revenues: |
|
|
|
|
|
|
|
Grid operator |
$ |
|
173,374 |
|
|
|
$ |
|
291,848 |
|
|
|
$ |
|
238,632 |
|
|
|
$ |
|
350,592 |
|
|
Utility |
|
|
27,160 |
|
|
|
|
|
27,741 |
|
|
|
|
|
50,498 |
|
|
|
|
|
50,011 |
|
|
Enterprise |
|
|
16,790 |
|
|
|
|
|
9,833 |
|
|
|
|
|
51,245 |
|
|
|
|
|
25,382 |
|
|
Total revenues |
|
|
217,324 |
|
|
|
|
|
329,422 |
|
|
|
|
|
340,375 |
|
|
|
|
|
425,985 |
|
|
Cost of revenues |
|
|
143,146 |
|
|
|
|
|
168,564 |
|
|
|
|
|
208,645 |
|
|
|
|
|
232,505 |
|
|
Gross profit |
|
|
74,178 |
|
|
|
|
|
160,858 |
|
|
|
|
|
131,730 |
|
|
|
|
|
193,480 |
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Selling and marketing |
|
|
22,397 |
|
|
|
|
|
18,972 |
|
|
|
|
|
74,563 |
|
|
|
|
|
56,997 |
|
|
General and administrative |
|
|
26,707 |
|
|
|
|
|
24,472 |
|
|
|
|
|
83,450 |
|
|
|
|
|
72,340 |
|
|
Research and development |
|
|
6,626 |
|
|
|
|
|
5,260 |
|
|
|
|
|
21,812 |
|
|
|
|
|
15,432 |
|
|
Gain on sale of service line |
|
|
- |
|
|
|
|
|
(359 |
) |
|
|
|
|
- |
|
|
|
|
|
(3,737 |
) |
|
Gain on sale of assets |
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
(2,991 |
) |
|
|
|
|
(2,171 |
) |
|
Total operating expenses |
|
|
55,730 |
|
|
|
|
|
48,345 |
|
|
|
|
|
176,834 |
|
|
|
|
|
138,861 |
|
|
Income (loss) from
operations |
|
|
18,448 |
|
|
|
|
|
112,513 |
|
|
|
|
|
(45,104 |
) |
|
|
|
|
54,619 |
|
|
Other expense, net |
|
|
(2,814 |
) |
|
|
|
|
(2,224 |
) |
|
|
|
|
(5,766 |
) |
|
|
|
|
(1,276 |
) |
|
Interest expense |
|
|
(2,253 |
) |
|
|
|
|
(1,523 |
) |
|
|
|
|
(6,785 |
) |
|
|
|
|
(2,576 |
) |
|
Income (loss) before income
tax |
|
|
13,381 |
|
|
|
|
|
108,766 |
|
|
|
|
|
(57,655 |
) |
|
|
|
|
50,767 |
|
|
(Provision for)/benefit
from income tax |
|
|
(417 |
) |
|
|
|
|
(12,111 |
) |
|
|
|
|
1,523 |
|
|
|
|
|
(11,950 |
) |
|
Net income (loss) |
|
|
12,964 |
|
|
|
|
|
96,655 |
|
|
|
|
|
(56,132 |
) |
|
|
|
|
38,817 |
|
|
Net loss attributable to
noncontrolling interest |
|
|
(23 |
) |
|
|
|
|
(18 |
) |
|
|
|
|
(37 |
) |
|
|
|
|
(58 |
) |
|
Net income (loss) attributable
to EnerNOC, Inc. |
$ |
|
12,987 |
|
|
|
$ |
|
96,673 |
|
|
|
$ |
|
(56,095 |
) |
|
|
$ |
|
38,875 |
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
common share attributable to EnerNOC, Inc. |
|
|
|
|
|
|
|
Basic |
$ |
|
0.46 |
|
|
|
$ |
|
3.48 |
|
|
|
$ |
|
(1.98 |
) |
|
|
$ |
|
1.38 |
|
|
Diluted |
$ |
|
0.44 |
|
|
|
$ |
|
3.11 |
|
|
|
$ |
|
(1.98 |
) |
|
|
$ |
|
1.33 |
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares used in computing net income (loss)
per share attributable to EnerNOC, Inc. |
|
|
|
|
Basic |
|
|
28,507,939 |
|
|
|
|
|
27,795,154 |
|
|
|
|
|
28,282,647 |
|
|
|
|
|
28,075,291 |
|
|
Diluted |
|
|
34,623,574 |
|
|
|
|
|
31,434,164 |
|
|
|
|
|
28,282,647 |
|
|
|
|
|
30,074,187 |
|
|
EnerNOC, Inc. |
Condensed Consolidated Balance
Sheets |
(in thousands, except par value and share
data) |
(unaudited) |
|
September 30, 2015 |
|
December 31, 2014 |
|
|
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash
equivalents |
$ |
141,940 |
|
|
$ |
254,351 |
|
Trade accounts
receivable, net |
|
61,206 |
|
|
|
40,875 |
|
Unbilled revenue |
|
111,835 |
|
|
|
97,512 |
|
Capitalized incremental
direct customer contract costs |
|
21,047 |
|
|
|
7,633 |
|
Prepaid expenses and
other current assets |
|
25,480 |
|
|
|
19,950 |
|
Total current
assets |
$ |
361,508 |
|
|
$ |
420,321 |
|
|
|
|
|
Property and equipment,
net |
|
51,750 |
|
|
|
50,458 |
|
Goodwill and intangible
assets, net |
|
207,518 |
|
|
|
146,050 |
|
Deposits and other
assets |
|
7,606 |
|
|
|
7,873 |
|
Total assets |
$ |
628,382 |
|
|
$ |
624,702 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
2,242 |
|
|
$ |
9,250 |
|
Accrued capacity
payments |
|
130,479 |
|
|
|
92,332 |
|
Accrued payroll and
related expenses |
|
18,862 |
|
|
|
18,446 |
|
Accrued expenses and
other current liabilities |
|
25,970 |
|
|
|
28,724 |
|
Deferred revenue |
|
36,138 |
|
|
|
13,738 |
|
Total current
liabilities |
$ |
213,691 |
|
|
$ |
162,490 |
|
|
|
|
|
Deferred tax
liability |
|
16,878 |
|
|
|
16,449 |
|
Deferred revenue,
long-term |
|
6,509 |
|
|
|
5,816 |
|
Other liabilities |
|
9,341 |
|
|
|
8,919 |
|
Convertible senior
notes, net |
|
141,971 |
|
|
|
138,908 |
|
Total long-term
liabilities |
|
174,699 |
|
|
|
170,092 |
|
|
|
|
|
Stockholders'
equity: |
|
|
|
Common
stock, $0.001 par value; 50,000,000 shares authorized,
30,830,238 and 29,833,578 shares issued and outstanding at
September 30, 2015 and December 31, 2014,
respectively |
|
31 |
|
|
|
30 |
|
Additional paid-in
capital |
|
374,583 |
|
|
|
365,855 |
|
Accumulated other
comprehensive loss |
|
(9,471 |
) |
|
|
(4,752 |
) |
Accumulated
deficit |
|
(125,355 |
) |
|
|
(69,260 |
) |
Total EnerNOC,
Inc. stockholders' equity |
|
239,788 |
|
|
|
291,873 |
|
Non controlling
interest |
|
204 |
|
|
|
247 |
|
Total stockholders'
equity |
|
239,992 |
|
|
|
292,120 |
|
Total liabilities and
stockholders' equity |
$ |
628,382 |
|
|
$ |
624,702 |
|
|
|
|
|
EnerNOC, Inc. |
Condensed Consolidated Statements of Cash Flow
Data |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
Cash provided by (used
in) operating activities |
$ |
3,771 |
|
|
$ |
22,949 |
|
|
$ |
(18,226 |
) |
|
$ |
28,320 |
|
Cash used in investing
activities |
|
(3,675 |
) |
|
|
(10,559 |
) |
|
|
(88,881 |
) |
|
|
(52,068 |
) |
Cash (used in) provided
by financing activities |
|
(201 |
) |
|
|
125,553 |
|
|
|
(2,331 |
) |
|
|
121,105 |
|
Effects of exchange
rate changes on cash and cash equivalents |
|
(1,510 |
) |
|
|
(631 |
) |
|
|
(2,973 |
) |
|
|
(331 |
) |
Net change in cash and
cash equivalents |
$ |
(1,615 |
) |
|
$ |
137,312 |
|
|
$ |
(112,411 |
) |
|
$ |
97,026 |
|
Cash and cash
equivalents at beginning of period |
|
143,555 |
|
|
|
108,903 |
|
|
|
254,351 |
|
|
|
149,189 |
|
Cash and cash
equivalents at end of period |
$ |
141,940 |
|
|
$ |
246,215 |
|
|
$ |
141,940 |
|
|
$ |
246,215 |
|
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, direct and incremental expenses
related to restructuring, 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, direct and
incremental expenses related to restructuring, interest, income
taxes and other expense, net.
-- 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 Income
Attributable to EnerNOC, Inc. And Net Income Per Share
Attributable to EnerNOC, Inc. |
|
(in thousands, except share and per share
data) |
(Unaudited) |
|
Three Months Ended September
30, |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
GAAP net income
attributable to EnerNOC, Inc. |
$ |
12,987 |
|
|
$ |
96,673 |
|
|
ADD:
Stock-based compensation expense |
|
3,656 |
|
|
|
4,135 |
|
|
ADD:
Amortization expense of acquired intangible assets |
|
3,662 |
|
|
|
2,391 |
|
|
ADD:
Direct and incremental expenses related to acquisitions or
divestitures (1) |
|
69 |
|
|
|
197 |
|
|
ADD: Debt
discount portion of interest expense related to convertible
notes |
|
1,043 |
|
|
|
474 |
|
|
ADD:
Income tax effect on Non-GAAP adjustments |
|
- |
|
|
|
(3,548 |
) |
|
Non-GAAP net income
attributable to EnerNOC, Inc. |
$ |
21,417 |
|
|
$ |
100,322 |
|
|
|
|
|
|
|
GAAP net income per
basic share attributable to EnerNOC, Inc. |
$ |
0.46 |
|
|
$ |
3.48 |
|
|
ADD:
Stock-based compensation expense |
|
0.13 |
|
|
|
0.15 |
|
|
ADD:
Amortization expense of acquired intangible assets |
|
0.13 |
|
|
|
0.09 |
|
|
ADD:
Direct and incremental expenses related to acquisitions or
divestitures (1) |
|
- |
|
|
|
0.01 |
|
|
ADD: Debt
discount portion of interest expense related to convertible
notes |
|
0.03 |
|
|
|
0.01 |
|
|
ADD:
Income tax effect on Non-GAAP adjustments |
|
- |
|
|
|
(0.13 |
) |
|
Non-GAAP net income per
basic share attributable to EnerNOC, Inc. |
$ |
0.75 |
|
|
$ |
3.61 |
|
|
|
|
|
|
|
GAAP net income per
diluted share attributable to EnerNOC, Inc. |
$ |
0.44 |
|
|
$ |
3.11 |
|
|
Impact of including
interest expense and excluding incremental shares from convertible
notes (2) |
|
0.01 |
|
|
|
0.27 |
|
|
ADD:
Stock-based compensation expense |
|
0.13 |
|
|
|
0.13 |
|
|
ADD:
Amortization expense of acquired intangible assets |
|
0.13 |
|
|
|
0.08 |
|
|
ADD:
Direct and incremental expenses related to acquisitions or
divestitures (1) |
|
- |
|
|
|
0.01 |
|
|
ADD: Debt
discount portion of convertible debt |
|
0.03 |
|
|
|
0.02 |
|
|
ADD:
Income tax effect on Non-GAAP adjustments |
|
- |
|
|
|
(0.12 |
) |
|
Non-GAAP net income per
diluted share attributable to EnerNOC, Inc. |
$ |
0.74 |
|
|
$ |
3.50 |
|
|
|
(1) Represents costs primarily
related to acquisitions for third party professional services
(legal, accounting, valuation) and severance. |
|
(2) The calculation of non-GAAP net
income per diluted share adjusted for the impact of the numerator
and denominator is as follows: |
(a) The numerator
includes interest expense related to convertible notes of $2,118
for the three months ended September 30, 2015 and $980 for the
three and nine months ended September 30, 2014. |
(b) The denominator
excludes incremental shares from the assumed conversion of the
convertible notes: 5,774,928 for the three months ended September
30, 2015 and 2,761,922 and 930,758 for the three and nine months
ended September 30, 2014. |
EnerNOC, Inc. |
Reconciliation Of Non-GAAP Measures To Nearest
GAAP Measures |
Reconciliation of Non-GAAP Net (Loss) Income
Attributable to EnerNOC, Inc. And Net (Loss) Income Per
Share Attributable to EnerNOC, Inc. |
|
(in thousands, except share and per share
data) |
(Unaudited) |
|
Nine Months Ended September
30, |
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
GAAP net (loss) income
attributable to EnerNOC, Inc. |
$ |
(56,095 |
) |
|
$ |
38,875 |
|
ADD:
Stock-based compensation expense |
|
11,386 |
|
|
|
12,161 |
|
ADD:
Amortization expense of acquired intangible assets |
|
11,607 |
|
|
|
6,753 |
|
ADD:
Direct and incremental expenses related to acquisitions or
divestitures (1) |
|
1,672 |
|
|
|
1,556 |
|
ADD:
Direct and incremental expenses related to restructuring (2) |
|
1,240 |
|
|
|
- |
|
ADD: Debt
discount portion of interest expense related to convertible
notes |
|
3,063 |
|
|
|
474 |
|
ADD:
Income tax effect on Non-GAAP adjustments |
|
- |
|
|
|
(3,548 |
) |
Non-GAAP net (loss)
income attributable to EnerNOC, Inc. |
$ |
(27,127 |
) |
|
$ |
56,271 |
|
|
|
|
|
GAAP net (loss) income
per basic share attributable to EnerNOC, Inc. |
$ |
(1.98 |
) |
|
$ |
1.38 |
|
ADD:
Stock-based compensation expense |
|
0.40 |
|
|
$ |
0.43 |
|
ADD:
Amortization expense of acquired intangible assets |
|
0.41 |
|
|
$ |
0.24 |
|
ADD:
Direct and incremental expenses related to acquisitions or
divestitures (1) |
|
0.06 |
|
|
$ |
0.06 |
|
ADD:
Direct and incremental expenses related to restructuring (2) |
|
0.04 |
|
|
|
- |
|
ADD: Debt
discount portion of interest expense related to convertible
notes |
|
0.11 |
|
|
|
0.02 |
|
ADD:
Income tax effect on Non-GAAP adjustments |
|
- |
|
|
|
(0.13 |
) |
Non-GAAP net (loss)
income per basic share attributable to EnerNOC, Inc. |
$ |
(0.96 |
) |
|
$ |
2.00 |
|
|
|
|
|
GAAP net (loss) income
per diluted share attributable to EnerNOC, Inc. |
$ |
(1.98 |
) |
|
$ |
1.33 |
|
ADD:
Stock-based compensation expense |
|
0.40 |
|
|
$ |
0.42 |
|
ADD:
Amortization expense of acquired intangible assets |
|
0.41 |
|
|
$ |
0.23 |
|
ADD:
Direct and incremental expenses related to acquisitions or
divestitures (1) |
|
0.06 |
|
|
$ |
0.05 |
|
ADD:
Direct and incremental expenses related to restructuring (2) |
|
0.04 |
|
|
|
- |
|
ADD: Debt
discount portion of convertible debt |
|
0.11 |
|
|
|
0.02 |
|
ADD:
Income tax effect on Non-GAAP adjustments |
|
- |
|
|
$ |
(0.12 |
) |
Non-GAAP net (loss)
income per diluted share attributable to EnerNOC, Inc. |
$ |
(0.96 |
) |
|
$ |
1.93 |
|
|
(1) Represents costs primarily
related to acquisitions for third party professional services
(legal, accounting, valuation) and severance. |
|
(2)
Represents costs associated with reorganizing the business for our
continued enterprise and utility focus. |
EnerNOC, Inc. |
|
|
|
|
Reconciliation of Adjusted EBITDA |
|
|
|
|
(in thousands) |
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
Net income (loss)
attributable to EnerNOC, Inc. |
$ |
12,987 |
|
|
$ |
96,673 |
|
|
$ |
(56,095 |
) |
|
$ |
38,875 |
|
Add back: |
|
|
|
|
|
|
|
Depreciation and
amortization |
|
9,511 |
|
|
|
7,960 |
|
|
|
29,259 |
|
|
|
23,167 |
|
Stock-based
compensation expense |
|
3,656 |
|
|
|
4,135 |
|
|
|
11,386 |
|
|
|
12,161 |
|
Direct and incremental
expenses related to acquisitions or divestitures (1) |
|
69 |
|
|
|
197 |
|
|
|
1,672 |
|
|
|
1,556 |
|
Direct and incremental
expenses related to restructuring (2) |
|
- |
|
|
|
- |
|
|
|
1,240 |
|
|
|
- |
|
Other expense, net
(3) |
|
2,814 |
|
|
|
2,224 |
|
|
|
5,766 |
|
|
|
1,276 |
|
Interest expense |
|
2,253 |
|
|
|
1,523 |
|
|
|
6,785 |
|
|
|
2,576 |
|
Provision for (benefit
from) income tax (4) |
|
417 |
|
|
|
12,441 |
|
|
|
(1,523 |
) |
|
|
10,830 |
|
Adjusted EBITDA |
$ |
31,707 |
|
|
$ |
125,153 |
|
|
$ |
(1,510 |
) |
|
$ |
90,441 |
|
|
|
|
|
|
|
|
|
(1)
Includes third party professional service costs such as legal,
accounting and valuation, and compensation, severance and related
costs. |
(2)
Represents costs associated with reorganizing the business for our
continued enterprise and utility focus. |
(3) Other expense primarily relates to foreign currency
losses. |
(4) Excludes discrete tax benefit of ($330) and discrete tax
provision of $1,120 recorded during the three and nine months ended
September 30, 2014 related to the sale of the Utility Solutions
Consulting business component. |
Reconciliation of Free Cash Flow |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
Net cash provided by
(used in) operating activities |
$ |
3,771 |
|
|
$ |
22,949 |
|
|
$ |
(18,226 |
) |
|
$ |
28,320 |
|
Add: Net cash provided
by the sale of assets or disposals of components of an entity |
|
- |
|
|
|
- |
|
|
|
2,991 |
|
|
|
6,446 |
|
Subtract: Purchases of
property and equipment |
|
(4,763 |
) |
|
|
(5,625 |
) |
|
|
(17,724 |
) |
|
|
(17,856 |
) |
Free cash flow |
$ |
(992 |
) |
|
$ |
17,324 |
|
|
$ |
(32,959 |
) |
|
$ |
16,910 |
|
|
|
|
|
|
|
|
|
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 |
|
December 31, 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 Income
(Loss) |
$ |
(40.8 |
) |
$ |
(36.8 |
) |
$ |
(1.43 |
) |
$ |
(1.29 |
) |
|
$ |
(97.0 |
) |
$ |
(93.0 |
) |
$ |
(3.43 |
) |
$ |
(3.29 |
) |
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Stock-based compensation |
$ |
3.6 |
|
$ |
4.1 |
|
$ |
0.12 |
|
$ |
0.14 |
|
|
$ |
15.0 |
|
$ |
15.5 |
|
$ |
0.53 |
|
$ |
0.55 |
|
Amortization expense of acquired intangible
assets |
$ |
3.7 |
|
$ |
3.7 |
|
$ |
0.13 |
|
$ |
0.13 |
|
|
$ |
15.3 |
|
$ |
15.3 |
|
$ |
0.54 |
|
$ |
0.54 |
|
Direct and incremental expenses1 |
$ |
0.3 |
|
$ |
0.3 |
|
$ |
0.01 |
|
$ |
0.01 |
|
|
$ |
3.2 |
|
$ |
3.2 |
|
$ |
0.11 |
|
$ |
0.11 |
|
Accretion expense related to the debt-discount
portion of interest associated with convertible note issuance |
$ |
1.0 |
|
$ |
1.0 |
|
$ |
0.04 |
|
$ |
0.04 |
|
|
$ |
4.1 |
|
$ |
4.1 |
|
$ |
0.15 |
|
$ |
0.15 |
|
Projected Non-GAAP Net Income
(Loss) |
$ |
(32.2 |
) |
$ |
(27.7 |
) |
$ |
(1.13 |
) |
$ |
(0.97 |
) |
|
$ |
(59.4 |
) |
$ |
(54.9 |
) |
$ |
(2.10 |
) |
$ |
(1.94 |
) |
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Depreciation |
$ |
5.8 |
|
$ |
6.3 |
|
|
|
|
$ |
23.5 |
|
$ |
24.0 |
|
|
|
Interest and other expense, net2 |
$ |
1.9 |
|
$ |
1.9 |
|
|
|
|
$ |
11.4 |
|
$ |
11.4 |
|
|
|
Provision for income taxes |
$ |
1.0 |
|
$ |
1.0 |
|
|
|
|
$ |
(0.5 |
) |
$ |
(0.5 |
) |
|
|
Adjusted EBITDA |
$ |
(23.5 |
) |
$ |
(18.5 |
) |
|
|
|
$ |
(25.0 |
) |
$ |
(20.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Common Shares Outstanding-Diluted |
|
28.5 |
|
|
28.5 |
|
|
|
|
|
28.3 |
|
|
28.3 |
|
|
|
1 “Direct and incremental expenses”
includes third party professional service costs such as legal,
accounting and valuation, and compensation, severance and other
costs related to acquisitions, divestitures and restructuring
activities |
2 “Interest and other expense, net”
is net of “accretion expense related to the debt-discount portion
of interest associated with convertible note issuance”. |
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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