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PowerSecure International, Inc. (Nasdaq: POWR) today reported its third quarter 2012 results, including record revenues of $44.2 million, gross margin of 31.4 percent, diluted earnings per share (“E.P.S.”) from continuing operations of $0.03, and Non-GAAP E.P.S. from continuing operations of $0.08. This compares to third quarter 2011 revenues of $36.6 million, gross margin of 30.6 percent, and diluted E.P.S. from continuing operations of $0.05. Non-GAAP financial measures for the third quarter of 2012 exclude a $1.5 million pre-tax charge related to a Restructuring and Cost Reduction Plan that was initiated during the quarter to position the Company for enhanced operating margins in future periods (see Non-GAAP discussion and reconciliation, below).
Sidney Hinton, CEO of PowerSecure, said, “We are very pleased with our third quarter results – with record revenues, expanded gross margins, and positive operating leverage driving profit gains. 2012 is tracking almost exactly as anticipated, and we have posted sequential and year-over-year gains in each successive quarter. Additionally, each of our product and service areas continues to generate across-the-board growth, and our backlog grew to a record $175 million. We are in a great position to have a strong finish to 2012, and 2013 is shaping up to be a very good year.”
Mr. Hinton continued, “We continue to be very focused on expanding our operating margins, and leveraging the incremental operating expenses we have invested in to grow our business. To this end, during our third quarter we initiated a Restructuring and Cost Reduction Plan with the goal of reducing our cost structure by $5 million annually to enhance our operating margins in future periods. The actions we took in our third quarter resulted in a charge of $1.5 million, and we expect additional cost reduction actions in the fourth quarter of 2012. We are already seeing positive results from these actions, as our operating margins were 4.6% excluding the charge, expanding 3.4 percentage points compared to the prior year period.”