Titan Energy Worldwide Releases 3rd Quarter Financial Statements
MINNEAPOLIS, Nov. 19, 2012 /PRNewswire/ -- Titan Energy Worldwide, Inc. (OTC:TEWI), a leader in distributed power generation products and intelligent energy management services, today announced that it has released unaudited financial statements for the 3 rd quarter of 2012. The Company's financial statements are available at www.sec.gov.
"Throughout 2012, Titan Energy has demonstrated strong, significant growth and improved financial performance in all areas of its onsite power business. Supported by rapid sales growth in our service offerings, we have ended the first nine months of the year with a positive EBITDA, a turnaround of more than $1 million from 2011," stated Jeffrey Flannery, Chief Executive Officer of Titan Energy Worldwide.
"Titan is quickly building a nationwide brand that represents excellence in onsite power management, while our new technology offerings demonstrate Titan's leadership in designing innovative and cost effective new solutions for onsite power management. We believe a number of market and business factors will support Titan's continued growth and development. In the wake of natural disasters and utility failures, many businesses are realizing the need to invest more in the proper management of their backup power programs. The result is that our national accounts business continues to grow as major corporations look to Titan to provide the finest in onsite power management for their facilities," added Flannery.The financial statements released by Titan Energy Worldwide reported that overall sales revenues for the 3 rd quarter of 2012 were $5.8 million, a 61% increase over the same quarter in 2011. Sales revenues for the first nine months of 2012 were $14 million compared to $10 million in 2011, an increase of 40% overall. Equipment sales increased 71% for the 3 rd quarter of 2012 compared to the same quarter in 2011; while service revenues increased 40% quarter over quarter. The Adjusted EBITDA for the 3 rd quarter 2012 was $15,502 compared to ($1,009,851) in 2011. This is the second consecutive quarter that the Company has reported a positive Adjusted EBITDA. The Adjusted EBITDA for the nine months ended September 30, 2012 was $223,464. The Adjusted EBITDA, a nonGAAP financial measure, is explained in detail below. The total operating loss for the 3 rd quarter 2012 was $140,500, the lowest in the Company's history, compared to a loss of $371,136 for the same period in 2011. The total operating loss for the nine months ending 2012 was $256,552 compared to a loss of $1,647,295 in 2011. More significantly, operating expenses were 23% of revenue for the 3 rd quarter of 2012 compared to 40% of revenue for the same quarter in 2011. "Titan Energy will end 2012 with a positive EBITDA for the year, the result of strong growth in higher margin service revenues. We have made a number of changes that should continue to improve future cash flow. The equipment sales division in Miami Florida was closed due to its continuing losses over the last two years. We have maintained the service business which is now profitable and is providing vital support for the Company's national accounts business in the South Florida region. We are looking to reorganize our financial lending arrangement before year end which could end up saving the company as much as $200,000 a year in interest and finance fees. We are also now seeing the full impact of the cost cutting measures we put into place months ago, and as a result our cash flow has improved significantly. "Hurricane Sandy not only produced some immediate emergency and disaster recovery business for our New Jersey office, but has already resulted in a significant number of new long term service contracts as businesses in the areas are seeking better support after being impacted by major storms three times in the last 14 months. We believe that businesses across the country are now more aware of the need to invest in the maintenance and monitoring of their critical emergency power systems. Titan offers not only the most advanced solutions but the most cost effective programs that help ensure these business operations stay online during times of emergency," added Flannery. Management uses Adjusted EBITDA as measure of operating performance and for internal planning and forecasting. Management believes that such measures help to indicate underlying trends in our business, are important in comparing our current results with prior period results and our useful to investors and financial analysts in assessing our operating performance. Management defines Adjusted EBITDA as net income (loss), excluding depreciation, amortization, stock based compensation and payments, interest (including factoring fees), income taxes (benefit) and other income and expenses. Adjusted EBITDA also eliminates items that do not require cash outlays, such as warrants and beneficial conversion features from issuing convertible securities which are treated as debt discounts and amortized to expenses; fair value adjustment for warrants and embedded conversion features, which is dependent on current stock price, volatility, term and interest rate which are factors that are not easily controlled; and amortization expense related to acquisition-related assets, which is based on our estimate of the useful life of tangible and intangible assets. These estimates could vary from the actual performance of the asset, are based on the value determined on acquisition date and may not be indicative of current or future capital expenditures. We also will eliminate from our net loss from the lease obligation as this is a settlement of a lawsuit which is not consider part of our continuing operations.
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