PowerSecure Reports Second Quarter 2013 Results

PowerSecure International, Inc. (Nasdaq: POWR) today reported its second quarter 2013 results. Highlights include:
  • Revenues increase 85.4 percent y-o-y to $70.2 million
  • Operating margin expands 3.3 percentage points y-o-y to 4.9 percent
  • GAAP EPS increases by $0.02 y-o-y from $0.09 to $0.11
  • Non-GAAP EPS increases by $0.08 y-o-y from $0.04 to $0.12 (see non-GAAP discussion and reconciliation, below)
  • EBITDA increases nearly 150 percent to $5.9 million (see non-GAAP discussion and reconciliation, below)

“Our record second quarter results and all time high backlog illustrate the continued momentum we are seeing across our business as we deliver differentiated, best-in-class solutions to our customers. In addition, we are very pleased with the strong performance of our two most recent acquisitions out of the gate, as our new ESCO and Solais businesses delivered second quarter revenues of $12.3 million and $1.6 million, respectively,” said Sidney Hinton, chief executive officer of PowerSecure.

“With increasing revenues and EPS, a strong balance sheet, growing EBITDA from operations, a backlog that has grown even faster than our revenues, and added strength from our recent strategic acquisitions, PowerSecure has never been in a stronger position for long term success,” Hinton added.

Second Quarter 2013:

PowerSecure’s second quarter 2013 (2Q 2013) revenues of $70.2 million, an increase of $32.3 million, or 85.4 percent, from the second quarter of 2012 (2Q 2012), were driven by a 46.1 percent year-over-year (y-o-y) increase in revenues from distributed generation products, a 133.2 percent y-o-y increase in revenues from utility infrastructure products and services, and an 87.1 percent y-o-y increase in revenues from energy efficiency products and services.
        Variance
($ in 000's) 2Q13   2Q12   $   %
Revenue by Product/Service  
Distributed Generation 23,581 16,139 7,442 46.1%
 
Utility Infrastructure 30,111 12,912 17,199 133.2%
 
Energy Efficiency 16,495   8,816   7,679   87.1%
Total Revenue 70,187 37,867 32,320 85.4%

Gross margin as a percentage of revenue was 28.3 percent in 2Q 2013 compared to 32.2 percent in 2Q 2012. The y-o-y gross margin decrease was driven by a higher mix of revenues from solar and ESCO projects, and the increased contribution of our utility infrastructure products and services, which generally carry lower gross margins. Solar and ESCO revenues were $3.9 million and $12.3 million, respectively (solar is included in the distributed generation product category and ESCO is included in the energy efficiency category).

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