Orion Energy Systems, Inc. (OESX)
F4Q10 Earnings Call
May 13, 2010 5:30 pm ET
Victoria Paris – Investor Relations
Neal Verfuerth – Chairman, Chief Executive Officer
James Kackley – President, Chief Operating Officer
Scott Jensen – Chief Financial Officer
Glenn Wortman – Sidoti & Company
Brian Kremer – Roth Capital Partners
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Welcome to Orion Energy Systems fourth quarter fiscal 2010 financial results. (Operator Instructions) Now your host for today’s conference, Victoria Zebras
Thank you for joining us for Orion Energy Systems fiscal 2010 fourth quarter and year-end conference call. With me today on the call are Neal Verfuerth, Chairman and CEO, Jim Kackley, President and COO and Scott Jensen, CFO.
Before we begin, I will read the Safe Harbor statement. Our remarks that follow including answers to your questions include statements that we believe forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally as such because the context of such statements will include words such as believe, anticipate, expect, or words of similar import.
Similarly, statements that describe future plans or objectives or goals are also forward-looking statements. These forward-looking statements are subject to risks that could cause actual results to materially be different. Those risk include among others, matters that we have described in our press release issued this afternoon and our filing with the Securities and Exchange Commission. Except as those filings, we will disclaim any obligation to update these forward-looking statements, which may not be updated until our next quarterly conference call if at all.
Now I’d like to turn the call over to Neal.
Thanks Victoria, and welcome everyone to our fiscal 2010-year end conference call. As you saw in the press release, we issued this afternoon, fourth quarter revenues were $18.9 million, were up 23% from the fourth quarter of 2009, and were in line with our expectations. For the full year fiscal 2010, we reported revenues of $65.4 million compared to $72.6 million in the prior year.
For the fourth quarter, total bookings were $16.4 million. For our fiscal 2010 bookings were $73.9 million, up 3% from the $71.7 million last year. We’re pleased to see the year over year increase in booking during fiscal 2010. Bookings for 2010 included $62.2 million in cash deals, $11.7 million in financed deals from the OVPP and PPA technology contracts.
For the fourth quarter, we reported a loss per share of $0.04 compared with a loss per share of $0.05 in the prior year quarter. For the fiscal year 2010, we recorded a loss per share of $0.19 versus earnings per diluted share of $0.02 in fiscal 2009.
As we mentioned in our release, we recorded unusual one-time charges totaling $.03 related to severance and legal expenses. Excluding these charges, we recorded a loss per share of $0.01 for the quarter, which is in line with our guidance for the fourth quarter and a loss per share for fiscal 2010 of $0.16.
Let me switch gears now and highlight some of our accomplishments for the year as well as the key drivers of this quarter’s performance. During fiscal 2010, we made great strides in enhancing our operational structure to support our long-term vision for growth, which included new hires in human resources, sales, and engineering.
In addition, we implemented our CRM tool that will be used internally and now by our partners in the field, enabling us increased visibility and efficiency in helping drive the sales process. Finally, through our expanded product offering, including the outdoor lighting, our portable solutions, our message of providing energy solutions instead of just lights is resonating with our customers.
Our conversations continue to focus on leading them down the path of energy efficiency, ultimately taking them off the grid if they choose to do so and significantly reducing their energy spend.
In the fourth quarter we retrofitted an additional 36 million square feet, 238 facilities, bringing out total coverage area to 886 million square feet retrofitted across 5612 facilities. Since December of 2001, we have delivered on our promise, saving our customers a total of $857 million in energy cost, reducing energy consumption by 11.1 billion kilowatt hours, while reducing the carbon dioxide emissions by 7.4 million tons. On average, we save customers about $0.38 per square foot annually.
We continue to see increasing contribution from our wholesale business year over year as fiscal 2010 revenues from our partners made up 42% of the sales compared to 39% in the previous year.
Contributing to our solid results from our partner network was the addition of four elite partners during the quarter. In addition, as our partners begin to add to their staff, we’re increasing our overall feet on the street throughout North America.
Our partner network is also able to meet our large deals in the fourth quarter, specifically for a large truck manufacturer, food products group and a leading manufacturer of farm and forestry equipment amongst others. We continue to devote resources to building out this channel and these wins are strong evidence that our partner recruitment and training programs are working.
On the national accounts side of our business, we also secured some sizeable deals in the fourth quarter, most notably a multi-million dollar deal with one of the nation’s largest close out retailers.