EnergyConnect Group, Inc. Reports Second Quarter 2009 Results
EnergyConnect Group, Inc. (OTCBB: ECNG - News), announced financial results today for the three- and six-months ended July 4, 2009. The Company announced revenues from operations of $7,522,000 for the second quarter 2009 compared to revenues of $5,063,000 for the second quarter 2008.
“Revenue for the quarter was primarily attributed to capacity related market activity. Economic revenue in the quarter continued to be weak due to low electricity prices, resulting in a limited number of opportunities for our customers to shift or reduce load,” Andrew Warner, EnergyConnect’s Chief Financial Officer, noted.
The Company recorded net income of $601,000 or $0.01 per share for the three months ended July 4, 2009, compared to a net loss of $2,229,000 or $0.03 per share for the three months ended June 28, 2008. Included in the losses for the three months ended June 28, 2008 is the gain from discontinued operations of Christenson Electric of $163,000. The reduction in the net loss was due to a favorable mix of revenue in the second quarter compared to the prior year and reflects the Company’s efforts to reduce operating expenses.
Revenue and net loss for the six months ended July 4, 2009 were $8,732,000 and $1,481,000 ($0.03 loss per share), respectively, compared to revenue and net loss of $12,442,000 and $4,308,000 ($0.05 loss per share) for the six months ended June 28, 2008. Included in the loss for the six months ended June 28, 2008 is a loss of $11,000 from our discontinued subsidiary Christenson Electric.
Operating expenses for the three months ended July 4, 2009 were $2,311,000, compared to $3,196,000 in the three months ended June 28, 2008. Included in these totals are non cash charges for stock-based compensation of $245,000 and 274,000 for the three months ended July 4, 2009 and June 28, 2008, respectively. The $885,000 decrease in year over year quarterly expenses was primarily due to staff reductions, salary reductions taken by the management team, and a continued effort to lower operating expenses. Operating expenses exclusive of stock based compensation for the three months ended July 4, 2009 were $336,000 lower than the first quarter 2009 operating expenses of $2,402,000.
Cash and certificates of deposits were $379,000 at July 4, 2009 compared to $710,000 at January 3, 2009, of which $66,800 was restricted at both quarter and year end. The Company anticipates that its cash generated from operations, cash balances and availability under its debt facility are adequate to sustain operations for the remainder of 2009 and into 2010. Commenting on the second quarter, Kevin Evans, EnergyConnect’s Chief Executive Officer, said, “The second quarter results are an encouraging indicator of the progress that we’ve made in the capacity markets and in controlling our expenses.”
About EnergyConnect Group, Inc.
EnergyConnect delivers industry leading Demand Response technologies and services to commercial, educational and industrial consumers enabling them to manage their use of electricity in response to market prices or regional power shortages. The EnergyConnect technology platform provides a scalable, cost-effective, clean technology to enhance the grid’s efficiency and reliability. For more information about this leading edge technology or about investor relations, visit: http://www.energyconnectinc.com/.
Forward Looking Statements
This press release includes statements that may constitute “forward-looking” statements. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause or contribute to differences in actual results. Risks of forward-looking include, but are not limited to, competitive factors, the success of new products in the marketplace, changes in the regulatory environment, dependence upon third-party vendors, and the ability to obtain financing. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
For further information, please contact:
Andrew Warner, CFO
408.898.4592
| ENERGYCONNECT GROUP, INC. | |||||
| CONSOLIDATED BALANCE SHEET | |||||
| July 4 | Jan. 3 | ||||
| 2009 | 2009 | ||||
| (Unaudited) | |||||
| Cash | $ | 279,462 | $ | 410,101 | |
| Certificates of deposit | 100,000 | 300,000 | |||
| Accounts receivable | 5,725,433 | 4,373,818 | |||
| Other current assets | 364,682 | 269,144 | |||
| Total current assets | 6,469,577 | 5,353,063 | |||
| Intangibles | 1,514,089 | 1,633,622 | |||
| Other long term assets | 380,868 | 370,139 | |||
| Total assets | $ | 8,364,534 | $ | 7,356,824 | |
| Accounts payable | $ | 4,146,144 | $ | 5,116,296 | |
| Bank line of credit | - | 117,257 | |||
| Other current liabilities | 316,709 | 127,016 | |||
| Total current liabilities | 4,462,853 | 5,360,569 | |||
| Note payable, net of debt discount | 2,519,131 | - | |||
| Total liabilities | 6,981,984 | 5,360,569 | |||
| Shareholders’ equity | 1,382,550 | 1,996,255 | |||
| Total liabilities and shareholders’ equity | $ | 8,364,534 | $ | 7,356,824 | |
|
ENERGYCONNECT GROUP, INC. |
||||||||||||
| CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||
| ($000’s, except share data) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three months ended | Six months ended | |||||||||||
| July 4 | June 28 | July 4 | June 28 | |||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||
| Revenue | $ | 7,522 | $ | 5,063 | $ | 8,732 | $ | 12,442 | ||||
| Cost of goods sold | 4,298 | 4,300 | 4,940 | 10,487 | ||||||||
| Gross profit | 3,224 | 763 | 3,792 | 1,955 | ||||||||
| Sales, general and administrative | 2,066 | 2,922 | 4,466 | 5,827 | ||||||||
| Stock-based compensation | 245 | 274 | 414 | 471 | ||||||||
| Total operating expenses | 2,311 | 3,196 | 4,880 | 6,298 | ||||||||
| Income (loss) from operations | 913 | (2,433) | (1,088) | (4,343) | ||||||||
| Other income (expense), net | (312) | 41 | (393) | 46 | ||||||||
| Income (loss) from continuing operations |
601 |
(2,392) |
(1,481) |
(4,297) |
||||||||
| Gain (loss) on discontinued operations | - | 163 | - | (11) | ||||||||
| Net income (loss) | $ | 601 | $ | (2,229) | $ | (1,481) | $ | (4,308) | ||||
| Net income (loss) per share: | ||||||||||||
| Basic | $ | 0.01 | $ | (0.03) | $ | (0.02) | $ | (0.05) | ||||
| Diluted | $ | 0.01 | $ | (0.03) | $ | (0.02) | $ | (0.05) | ||||
| Shares used in per share calculations: | ||||||||||||
| Basic | 95,491,501 | 90,392,194 | 95,335,732 | 87,569,489 | ||||||||
| Diluted | 99,593,306 | 90,392,194 | 95,335,732 | 87,569,489 | ||||||||
Posted on Tuesday, August 11th, 2009 - Press Releases