EnergyConnect Group, Inc. Reports Third Quarter Profit
EnergyConnect Group, Inc. (OTCBB: ECNG - News), announced financial results today for the three and nine-months ended October 3, 2009. The Company announced revenues from operations of $10,338,000 for the third quarter 2009 with net income of $528,000.
“We are pleased with the continued improvement in our operating results. Revenue for the period reflects the solid foundation of business that we’ve established this year in the capacity markets” commented Kevin Evans, EnergyConnect’s President and Chief Executive Officer. “The Company’s performance remains on track with our expectations given the reduced loads, mild summer and historically low electricity prices.”
The Company recorded net income of $528,000 or $0.01 per share for the three months ended October 3, 2009, compared to net income of $2,164,000 or $0.02 per share for the three months ended September 27, 2008.
Revenue and net loss for the nine months ended October 3, 2009 were $19,070,000 and $952,000 ($0.01 loss per share), respectively, compared to revenue and net loss of $24,083,000 and $2,144,000 ($0.02 loss per share) for the nine months ended September 27, 2008, respectively. Included in the loss for the nine months ended September 27, 2008 is a loss of $11,300 from our discontinued subsidiary Christenson Electric.
Operating expenses, for the three months ended October 3, 2009 were $2,246,000, compared to $3,024,000 in the three months ended September 27, 2008. Included in these totals are non cash charges for stock-based compensation of $187,000 and $172,000 for the three months ended October 3, 2009 and September 27, 2008, respectively. The $778,000 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.
Cash and certificates of deposits were $1,725,000 at October 3, 2009 compared to $710,000 at January 3, 2009, of which $66,800 was restricted at both quarter and year end.
About EnergyConnect
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: /.
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 such differences that include, but are not limited to, competitive factors, the success of new products in the marketplace, 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 | |||||
| October 3 | Jan. 3 | ||||
| 2009 | 2009 | ||||
| (Unaudited) | |||||
| Cash | $ | 1,624,975 | $ | 410,101 | |
| Certificates of deposit | 100,000 |
300,000 | |||
| Accounts receivable | 10,711,799 |
4,373,818 | |||
| Other current assets | 324,285 |
269,144 | |||
| Total current assets | 12,761,059 |
5,353,063 | |||
| Intangibles | 1,492,609 |
1,633,622 | |||
| Other long term assets | 329,610 |
370,139 | |||
| Total assets | $ | 14,583,278 | $ | 7,356,824 | |
| Accounts payable | $ | 10,241,733 | $ | 5,116,296 | |
| Bank line of credit | - | 117,257 | |||
| Other current liabilities | 359,426 |
127,016 | |||
| Total current liabilities | 10,601,159 |
5,360,569 | |||
| Note payable, net of debt discount | 1,878,671 |
- | |||
| Total liabilities | 12,479,830 |
5,360,569 | |||
| Shareholders’ equity | 2,103,448 |
1,996,255 | |||
| Total liabilities and shareholders’ equity | $ | 14,583,278 | $ | 7,356,824 | |
ENERGYCONNECT GROUP, INC. |
||||||||||||
| CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||
| ($000’s, except share data) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three months ended | Nine months ended | |||||||||||
| October 3 | Sept 27 | October 3 | Sept 27 | |||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||
| Revenue | $ | 10,338 | $ | 11,461 | $ | 19,070 | $ | 24,083 | ||||
| Cost of revenues | 7,221 | 6,458 | 12,161 | 16,945 | ||||||||
| Gross profit | 3,117 | 5,183 |
6,909 | 7,138 | ||||||||
| Sales, general and administrative | 2,059 | 2,852 | 6,525 | 8,678 | ||||||||
| Stock-based compensation | 187 |
172 | 601 | 644 | ||||||||
| Total operating expenses | 2,246 | 3,024 | 7,126 | 9,322 | ||||||||
| Income (loss) from operations | 871 | 2,159 | (217) | (2,184) | ||||||||
| Other income (expense), net | (343) | 5 | (735) | 51 | ||||||||
| Income (loss) from continuing operations | 528 |
2,164 |
(952) |
(2,133) |
||||||||
| Gain (loss) on discontinued operations | - | - | - | (11) | ||||||||
| Net income (loss) | $ | 528 | $ | 2,164 | $ | (952) | $ | (2,144) | ||||
| Net income (loss) per share: | ||||||||||||
| Basic | $ | 0.01 | $ | 0.02 | $ | (0.01) | $ | (0.02) | ||||
| Diluted | $ | 0.01 | $ | 0.02 | $ | (0.01) | $ | (0.02) | ||||
| Shares used in per share calculations: | ||||||||||||
| Basic | 95,629,961 | 94,684,424 | 95,433,808 | 89,941,134 | ||||||||
| Diluted | 96,839,705 | 94,697,281 | 95,433,808 | 89,941,134 | ||||||||
Posted on Thursday, November 12th, 2009 - Press Releases