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PowerSecure International, Inc. (NYSE:POWR) today reported its third quarter 2013 results. Highlights include:
Revenues increase 84.3 percent y-o-y to $81.5 million
Operating margin expands 6.2 percentage points y-o-y to 7.3 percent
Operating margin expands 2.7 percentage points y-o-y on non-GAAP basis (see non-GAAP discussion and reconciliation, below)
EPS increases by $0.14 y-o-y from $0.03 to $0.17
EPS increases by $0.09 y-o-y from $0.08 to $0.17 on non-GAAP basis (see non-GAAP discussion and reconciliation, below)
Adjusted EBITDA increases 122 percent y-o-y to $8.0 million (see non-GAAP discussion and reconciliation below)
“We saw strong top and bottom line growth across our business in the 3
rd quarter as our robust organic growth was enhanced by our successful acquisitions, and we continue to execute in delivering best-in-class solutions and service to customers,” said Sidney Hinton, chief executive officer of PowerSecure.
“Our record revenues and further operating margin expansion highlight our execution and, combined with our strong revenue backlog of $240 million, provide us with confidence that PowerSecure is exceptionally positioned for continued success,” Hinton added.
Third Quarter 2013:
PowerSecure’s third quarter 2013 (3Q 2013) revenues of $81.5 million increased $37.3 million, or 84.3 percent, over revenues in the third quarter of 2012 (3Q 2012). This increase was driven by a 62.2 percent year-over-year (y-o-y) increase in revenues from distributed generation products, a 72.1 percent y-o-y increase in revenues from utility infrastructure products and services, and a 225 percent y-o-y increase in revenues from energy efficiency products and services.
In total, $24.5 million of the y-o-y revenue growth was organic growth from our existing operations, representing a 55.5 percent increase, and the remaining $12.7 million of the y-o-y revenue growth was related to our recently acquired Solais and ESCO operations (for which no revenues were recognized in the prior year period).
($ in 000's)
Revenue by Product/Service
Gross margin as a percentage of revenue was 26.3 percent in 3Q 2013 compared to 31.4 percent in 3Q 2012. The y-o-y gross margin decrease was due to the growth of our utility infrastructure, solar and ESCO revenues in 3Q 2013, which are generally our lowest gross margin product and service categories. In addition, we realized inefficiencies in our utility infrastructure unit related to the advanced deployment of crews in anticipation of being selected for a significant long-term revenue opportunity with a major new utility partner. We anticipate some continued inefficiencies from these excess crews to negatively impact our gross margins during the fourth quarter of 2013 and the first quarter of 2014. A separate press release announcing our selection for this opportunity was issued today in conjunction with this earnings release.