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).

Operating expenses for 2Q 2013 as a percentage of our revenues decreased by 7.2 percentage points compared to 2Q 2012, as the company leveraged operating expenses against a greater level of revenues, quarter-over-quarter.

Operating expenses for 2Q 2013 were $16.4 million, compared to $11.6 million in 2Q 2012. The $4.8 million y-o-y increase in operating expenses consists primarily of $2.7 million of incremental operating expenses in 2Q 2013 related to our recent solar, Solais and ESCO acquisitions. In addition, we incurred $0.5 million in incremental acquisition costs related to our acquisitions in Q2 2013, compared to $0.1 million in incremental acquisition costs in Q2 2012. The remaining y-o-y increase in our operating expenses is primarily due to an increase in selling expenses related to our significantly higher revenue and backlog, depreciation from our investments in company-owned distributed generation systems, utility infrastructure equipment, and increases in personnel and equipment to drive and support our growth. The increases in personnel and equipment include expenses to continue to strengthen the company’s safety resources and programs.

Operating margin as a percentage of revenue increased 3.3 percentage points to 4.9 percent in 2Q 2013 from 1.6 percent in 2Q 2012. The increase in operating margin was driven by the reduction in operating expenses as a percentage of revenue. This increase was enhanced by the cost reduction actions the company took during the second half of 2012 to streamline its operations.

The company’s recent acquisitions have provided opportunities to further leverage the profitability of our operations, including significant near and mid-term opportunities to increase the operating margins in our energy efficiency product and service lines. This includes manufacturing and sourcing synergies our Solais acquisition brings to our existing LED lighting operations, and other cost reduction opportunities. The company is executing on these opportunities and initiatives to accelerate the realization of their expected benefits, and we expect these actions to result in a charge of between $2 million and $4 million during the second half of 2013.

Diluted GAAP earnings per share (EPS) from continuing operations increased to $0.11 in 2Q 2013, compared to $0.09 in 2Q 2012. Non-GAAP EPS from continuing operations increased to $0.12 in 2Q 2013, compared to $0.04 in 2Q 2012.

Results from 2Q 2012 included a one-time gain of $1.4 million from the sale of our WaterSecure business, and $0.1 million of acquisition expenses related to our acquisition of PowerSecure Solar. These items are adjusted in our non-GAAP calculation of 2Q 2012 non-GAAP EPS. Results from Q2 2013 include $0.5 million of acquisition costs primarily related to the acquisition of Solais, and are adjusted in the Q2 2013 non-GAAP EPS calculation (see non-GAAP discussion and reconciliation, below).

The company completed the second quarter of 2013 with $26.7 million in cash, zero drawn on its $20 million revolving credit facility and $27.2 million in term debt outstanding.

The company’s capital expenditures during Q2 2013 were $2.5 million, with $1.2 million of this capital invested to deploy systems to support PowerSecure-owned long-term recurring revenue distributed generation projects, and the remaining $1.3 million primarily invested in the purchase of equipment for its growing utility infrastructure business.

The company’s revenue backlog stands at a record $245 million, as of the date of this release. This includes new business from awards announced on June 6, 2013 and July 31, 2013. The company’s revenue backlog represents revenue expected to be recognized after June 30, 2013, for periods including the third quarter of 2013 onward.

This backlog figure compares to the revenue backlog of $206 million announced in the company’s first quarter 2013 earnings release issued on May 8, 2013, which represented revenue expected to be recognized after March 31, 2013, and $166 in revenue backlog announced in the company’s 2Q 2012 earnings release issued on August 6, 2012.

The company’s $245 million revenue backlog and the estimated timing of revenue recognition are outlined below, including “project-based revenues” expected to be recognized as projects are completed, and “recurring revenues” expected to be recognized over the life of the underlying contracts:
Revenue Backlog expected to be recognized after June 30, 2013      
Anticipated Estimated Primary
Description     Revenue   Recognition Period
 
Project-based Revenue -- Near term $131 Million 3Q13 through 1Q14
Project-based Revenue -- Long term $45 Million 2Q14 through 2015
Recurring Revenue $69 Million 3Q13 through 2020
Revenue Backlog expected to be recognized after June 30, 2013 $245 Million
 

Note: Anticipated revenue and estimated primary recognition periods are subject to risks and uncertainties
as indicated in the Company's safe harbor statement, below. Consistent with past practice, these figures
are not intended to constitute the Company's total revenue over the indicated time periods, as the Company
has additional, regular on-going revenues. Examples of additional, regular recurring revenues include
revenues from engineering fees, and service revenue, among others. Numbers may not add due to rounding.

Orders in the company’s revenue backlog are subject to delay, deferral, acceleration, resizing or cancellation from time to time, and estimates are utilized in the determination of the backlog amounts. Given the irregular sales cycle of customer orders, and especially of large orders, the revenue backlog at any given time is not necessarily an accurate indication of our future revenues.

Conference Call Information

The company will host a conference call commencing today at 5:30 p.m. eastern time. The conference call will be webcast live and can be accessed from the Investor Relations section of the company's website at www.powersecure.com. The call can also be accessed by dialing 888-713-4211 (or 617-213-4864 if dialing internationally) and providing pass code 53645986. If you are unable to participate during the live webcast, a replay of the conference call will be available approximately two hours after the completion of the call through midnight on August 21, 2013. To listen to the replay, dial 888-286-8010 (or 617-801-6888 if dialing internationally), and enter passcode 84522182. In addition, the webcast will be archived on the company's website at www.powersecure.com.

About PowerSecure

PowerSecure International, Inc. is a leading provider of utility and energy technologies to electric utilities, and their industrial, institutional and commercial customers. PowerSecure provides products and services in the areas of Interactive Distributed Generation ® (IDG ®), energy efficiency and utility infrastructure. The company is a pioneer in developing IDG ® power systems with sophisticated smart grid capabilities, including the ability to 1) forecast electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly, power at peak power times, 2) provide utilities with dedicated electric power generation capacity to utilize for demand response purposes and 3) provide customers with the most dependable standby power in the industry. Its proprietary distributed generation system designs utilize a range of technologies to deliver power, including renewables. The company’s energy efficiency business develops energy efficient lighting technologies that improve the quality of light, including its proprietary EfficientLights ® LED lighting products for grocery, drug and convenience stores, and its SecureLite area light and PowerLite street lights for utilities and municipalities. PowerSecure also provides electric utilities with transmission and distribution infrastructure maintenance and construction services, and engineering and regulatory consulting services. Additional information is available at www.powersecure.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the outlook for the company's future revenues, earnings, margins, cash resources and cash flow and other financial and operating information and data; the company's future business operations, strategies and prospects; the company’s cost reduction plan; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management, including statements about other future financial and non-financial items, performance or events and about present and future products, services, technologies and businesses; and statements of assumptions underlying the foregoing.

Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that are difficult to predict and could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, the on-going downturn, disruption and volatility in the economy, financial markets and business markets and the effects thereof on the company's markets and customers, the demand for its products and services, and the company's access to capital; the size, timing and terms of sales and orders, including the company's revenue backlog discussed in this press release, and the risk of customers delaying, deferring or canceling purchase orders or making smaller purchases than expected; the potential adverse financial and reputational consequences that can result from safety risks and hazards such as accidents inherent in the company’s operations; the impact of the company’s recent acquisitions of the ESCO business, the Solais business, and the commercial and industrial solar business; the company’s ability to reduce and control its costs and expenses; the timely and successful development, production and market acceptance of new and enhanced products, services and technologies of the company; the ability of the company to obtain adequate supplies of key components and materials of sufficient reliability and quality for its products and technologies on a timely and cost-effective basis and the effects of related warranty claims and disputes; the ability of the company to successfully expand its core distributed generation products and services, to successfully develop and achieve market acceptance of its new energy-related businesses, to successfully expand its recurring revenue projects, to manage its growth and to address the effects of any future changes in utility tariff structures and environmental requirements on its business solutions; the effects of competition; changes in customer and industry demand and preferences; the ability of the company to continue the growth and diversification of its customer base; the ability of the company to attract, retain, and motivate its executives and key personnel; changes in the energy industry in general and the electricity, oil, and natural gas markets in particular, including price levels; the effects of competition; the ability of the company to secure and maintain key contracts and relationships; the effects of pending and future litigation, claims and disputes; and other risks, uncertainties and other factors identified from time to time in its reports filed with or furnished to the Securities and Exchange Commission, including the company's most recent Annual Report on Form 10-K, as well as subsequently filed reports on Form 10-Q and Form 8-K, copies of which may be obtained by visiting the investor relations page of the company’s website at www.powersecure.com or the SEC’s website at www.sec.gov .

Accordingly, there is no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
PowerSecure International, Inc.
Consolidated Statements of Income (unaudited)
($000's except per share data)
         
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2013 2012 2013 2012
 
Revenue 70,187 37,867 115,144 71,052
Cost of sales 50,304   25,663   81,521   49,293  
Gross Profit 19,883   12,204   33,623   21,759  
 
Operating expenses
General and administrative 12,511 9,093 22,343 17,738
Selling, marketing, and service 2,105 1,366 3,490 2,424
Depreciation and amortization 1,809   1,136   3,265   2,221  
Total operating expenses 16,425   11,595   29,098   22,383  
 
Operating income (loss) 3,458 609 4,525 (624 )
 
Other income (expense)
Gain on sale of unconsolidated affiliate 0 1,439 0 1,439
Interest income and other income 19 23 40 45
Interest expense (130 ) (116 ) (235 ) (224 )
 
Income (loss) before income taxes 3,347 1,955 4,330 636
Income tax expense (benefit) 1,305   621   1,679   228  
 
Net income (loss) from continuing operations 2,042 1,334 2,651 408
 

Discontinued operations - income (loss) from operations (net oftax)
0 32 0 67
Discontinued operations - gain on sale (net of tax) 0   0   0   0  
Net income (loss) 2,042 1,366 2,651 475
Net loss attributable to noncontrolling interest 57   277   181   565  
 
Net income (loss) attributable to PowerSecure International, Inc. 2,099   1,643   2,832   1,040  
 
Summary of Amounts Attributable to PowerSecure International, Inc. shareholders
Income (loss) from continuing operations (net of tax) 2,099 1,611 2,832 973
Income (loss) from discontinued operations (net of tax) 0   32   0   67  
 
Net income (loss) attributable to PowerSecure International, Inc. 2,099   1,643   2,832   1,040  
 
EARNINGS PER SHARE AMOUNTS ("E.P.S") ATTRIBUTABLE TO
POWERSECURE INTERNATIONAL, INC. SHAREHOLDERS:
Continuing Operations
Basic 0.11   0.09   0.15   0.05  
Diluted 0.11   0.09   0.15   0.05  
 
Discontinued Operations
Basic 0.00   0.00   0.00   0.01  
Diluted 0.00   0.00   0.00   0.00  
 
Net Income
Basic 0.11   0.09   0.15   0.06  
Diluted 0.11   0.09   0.15   0.05  
 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic 19,024   18,846   18,635   18,874  
Diluted 19,357   18,941   18,941   19,015  
 
PowerSecure International, Inc.
Condensed Consolidated Balance Sheets (unaudited)
($000's)
       
June 30, December 31,
ASSETS 2013 2012
CURRENT ASSETS:
Cash and cash equivalents 26,653 19,122
Trade receivables, net of allowance for doubtful accounts 74,526 57,147
Inventories 28,576 20,327
Income taxes receivable 0 592
Deferred tax asset, net 803 803
Prepaid expenses and other current assets 1,440 1,285
Total current assets 131,998 99,276
 
PROPERTY, PLANT, AND EQUIPMENT:
Equipment 52,713 48,447
Furniture and fixtures 460 375
Land, building, and improvements 5,996 5,907
Total property, plant, and equipment at cost 59,169 54,729
Less accumulated depreciation and amortization 15,008 12,152
Property, plant, and equipment, net 44,161 42,577
 
OTHER ASSETS:
Goodwill 28,073 12,884
Restricted annuity contract 2,484 2,447
Intangible rights and capitalized software, net of accum amort 6,870 1,328
Other assets 1,227 635
Total other assets

38,654
17,294
 
TOTAL ASSETS 214,813 159,147
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
CURRENT LIABILITIES:
Accounts payable 25,364 14,150
Accrued and other liabilities 31,881 23,887
Accrued restructuring and cost reduction liabilities 360 709
Income taxes payable 983 0
Current unrecognized tax benefit 242 242
Current portion of long-term debt 3,731 160
Current portion of capital lease obligation 910 886
Total current liabilities 63,471 40,034
 
LONG-TERM LIABILITIES:
Revolving Line of Credit 0 0
Long-term debt, net of current portion 23,429 2,080
Capital lease obligation, net of current portion 1,460 1,921
Deferred tax liability, net 57 955
Unrecognized tax benefit 640 640
Other long-term liabilities 2,627 2,518
Total long-term liabilities 28,213 8,114
 
STOCKHOLDERS' EQUITY:

Preferred stock - undesignated
0 0
Preferred stock - Series C 0 0
Common stock 193 182
Additional paid-in-capital 122,465 112,738
Retained earnings (deficit) 471 (2,361)
Total PowerSecure International, Inc. stockholders' equity 123,129 110,559
Noncontrolling Interest 0 440
Total stockholders' equity 123,129 110,999
 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 214,813 159,147
 
PowerSecure International, Inc.    
Condensed Consolidated Statement of Cash Flows (unaudited)
($000's)
 
Six Months Ended
June 30, June 30,
2013 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) 2,651 475
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
Gain on sale of unconsolidated affiliate 0 (1,439 )
Income from discontinued operations 0 (67 )
Depreciation and amortization 3,265 2,221
Stock compensation expense 289 576
Loss on disposal of miscellaneous assets 14 45
Changes in operating assets and liabilities, net of
effect of acquisitions:
Trade receivables, net (11,025 ) 4,360
Inventories (7,353 ) 861
Other current assets and liabilities 1,480 416
Other noncurrent assets and liabilities (520 ) (335 )
Accounts payable 9,291 (378 )
Accrued and other liabilities (1,869 ) (3,067 )
Accrued restructuring and cost reduction liabilities (349 ) 0  
Net cash provided by (used in) continuing operations (4,126 ) 3,668
Net cash provided by (used in) discontinued operations 0   132  
Net cash provided by (used in) operating activities (4,126 ) 3,800  
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions, net of cash acquired (9,542 ) (3,523 )
Purchases of property, plant and equipment (3,856 ) (3,330 )
Additions to intangible rights and software development (319 ) (215 )
Proceeds from sale of property, plant and equipment 0 14
Proceeds from sale of unconsolidated affiliate 0   1,445  
Net cash provided by (used in) investing activities (13,717 ) (5,609 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings (payments) on revolving line of credit 0 0
Proceeds from long-term borrowings 25,000 2,400
Principal payments on long-term debt (80 ) (80 )
Principal payments on capital lease obligations (437 ) (414 )
Repurchases of common stock (9 ) (1,010 )
Proceeds from stock option exercises 900   14  
Net cash provided by (used in) financing activities 25,374   910  
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 7,531 (899 )
 
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 19,122   24,606  
 
CASH AND CASH EQUIVALENTS AT END OF PERIOD 26,653   23,707  
 

Non-GAAP Pro forma Financial Measures Discussion:

Our references to our second quarter 2012 and 2013 “Non-GAAP Pro forma” financial measures of net income from continuing operations, net income, net income attributable to PowerSecure International, Inc., diluted E.P.S. from continuing operations, diluted E.P.S. from discontinued operations and diluted E.P.S. discussed and shown in this report constitute non-GAAP financial measures. They refer to our GAAP results, adjusted to show the results 1) without the 2Q 2012 gain on the sale of our WaterSecure investment (identified in our financial statements as our unconsolidated affiliate), 2) without the Q2 2012 results of our discontinued PowerPackages business, 3) without the Q2 2012 acquisition expenses related to PowerSecure Solar and 4) without the Q2 2013 acquisition expenses primarily related to Solais (and to a lesser extent our ESCO, PowerLine, IES, and PowerSecure Solar transactions).

We believe providing non-GAAP measures which show our pro forma results with these items adjusted is valuable and useful as it allows our management and our board of directors to measure, monitor and evaluate our operating performance with the same consistent financial context. These non-GAAP pro forma measures also correspond with the way we expect Wall Street analysts to compare our results. Our non-GAAP pro forma measures should be considered only as supplements to, and not as substitutes for or in isolation from, our other measures of financial information prepared in accordance with GAAP, such as GAAP revenue, operating income, net income from continuing operations, net income, net income attributable to PowerSecure International, Inc., diluted E.P.S. from continuing operations, diluted E.P.S. from discontinued operations, and diluted E.P.S.

References to our second quarter and year-to-date 2012 and 2013 EBITDA, which we define as our earnings before interest, taxes, depreciation and amortization, as discussed and shown in this release, constitutes a non-GAAP “pro forma” financial measure.

We believe that EBITDA, as a non-GAAP pro forma financial measure, provides meaningful information to investors in terms of enhancing their understanding of our operating performance and results, as it allows investors to more easily compare our financial performance on a consistent basis compared to the prior year periods. This non-GAAP financial measure also corresponds with the way we expect investment analysts to evaluate and compare our results. Any non-GAAP pro forma financial measures should be considered only as supplements to, and not as substitutes for or in isolation from, or superior to, our other measures of financial information prepared in accordance with GAAP, such as net income attributable to PowerSecure International, Inc.

We define and calculate EBITDA as net income attributable to PowerSecure International, Inc., minus: 1) the gain on the sale of our unconsolidated affiliate, 2) discontinued operations and 3) interest income and other income, plus: 4) acquisition expenses, 5) income tax expense (or minus an income tax benefit), 6) interest expense, 7) depreciation and amortization and 8) stock compensation expense. We disclose EBITDA because we believe it is a useful metric by which to compare the performance of our business from period to period. We understand that measures similar to EBITDA are broadly used by analysts, rating agencies, investors and financial institutions in assessing our performance. Accordingly, we believe that the presentation of EBITDA provides useful information to investors. The table below provides a reconciliation of EBITDA to net income attributable to PowerSecure International, Inc., the most directly comparable GAAP financial measure.

PowerSecure International, Inc.                                    
Non-GAAP Pro forma Measures
($000's except per share data, some rounding throughout)
 
 
Three Months Ended June 30, 2013 Three Months Ended June 30, 2012

As Reported2Q13

AcquisitionExpenses for Solais,ESCO, PowerLine,IES, andPowerSecure SolarTransactions

Pro forma2Q13

As Reported2Q12

WaterSecure,PowerPackages,and AcquisitionExpenses forPowerSecureSolar

Pro forma2Q12
 
Revenue 70,187 70,187 37,867 37,867
Cost of sales 50,304     50,304   25,663     25,663  
Gross Profit 19,883   0   19,883   12,204   0   12,204  
 
Operating expenses
General and administrative 12,511 (452 ) 12,059 9,093 (74 ) 9,019
Selling, marketing, and service 2,105 2,105 1,366 1,366
Depreciation and amortization 1,809 1,809 1,136 1,136
Restructuring and cost reduction charges 0   0   0   0     0  
Total operating expenses 16,425   (452 ) 15,973   11,595   (74 ) 11,521  
 
Operating income (loss) 3,458 452 3,910 609 74 683
 
Other income (expense)
Gain on sale of unconsolidated affiliate 0 0 1,439 (1,439 ) 0
Interest income and other income 19 19 23 23
Interest expense (130 )   (130 ) (116 )   (116 )
 
Income (loss) before income taxes 3,347 452 3,799 1,955 (1,365 ) 590
Income tax expense (benefit) 1,305   176   1,481   621   (433 ) 188  
 
Net income (loss) from continuing operations 2,042 276 2,318 1,334 (932 ) 402
 

Discontinued operations - income (loss) fromoperations (net of tax)
0 0 32 (32 ) 0
 

Discontinued operations - gain on sale (net of tax)
0     0   0   0   0  
Net income (loss) 2,042 276 2,318 1,366 (964 ) 402
 

Net loss attributable to noncontrolling interest
57     57   277     277  

Net income (loss) attributable to PowerSecureInternational, Inc.
2,099   276   2,375   1,643   (964 ) 679  
 
Summary of Amounts Attributable to PowerSecure International, Inc. shareholders

Income (loss) from continuing operations (net oftax)
2,099 276 2,375 1,611 (932 ) 679

Income (loss) from discontinued operations (net oftax)
0   0   0   32   (32 ) 0  

Net income (loss) attributable to PowerSecureInternational, Inc.
2,099   276   2,375   1,643   (964 ) 679  
 
EARNINGS PER SHARE AMOUNTS ("E.P.S") ATTRIBUTABLE TO
POWERSECURE INTERNATIONAL, INC. SHAREHOLDERS:
Continuing Operations
Basic 0.11   0.01   0.12   0.09   (0.05 ) 0.04  
Diluted 0.11   0.01   0.12   0.09   (0.05 ) 0.04  
 
Discontinued Operations
Basic 0.00   0.00   0.00   0.00   0.00   0.00  
Diluted 0.00   0.00   0.00   0.00   0.00   0.00  
 
Net Income
Basic 0.11   0.01   0.12   0.09   (0.05 ) 0.04  
Diluted 0.11   0.01   0.12   0.09   (0.05 ) 0.04  
 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic 19,024   19,024   19,024   18,846   18,846   18,846  
Diluted 19,357   19,357   19,357   18,941   18,941   18,941  
 
PowerSecure International, Inc.                  
Non-GAAP Pro forma Measures
EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) - Calculations and Reconciliation
($000's except per share data, some rounding throughout)
 
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2013 2012 2013 2012
 
EBITDA Calculation/Reconciliation

Net income (loss) attributable to PowerSecure International,Inc.
2,099 1,643 2,832 1,040
 
Items to Subtract from Net Income
Gain on sale of unconsolidated affiliate 0 (1,439 ) 0 (1,439 )
Discontinued operations - income 0 (32 ) 0 (67 )
Interest income and other income (19 ) (23 ) (40 ) (45 )
 
Items to Add to Net Income
Acquisition Expenses 452 74 531 74
Income tax expense (benefit) 1,305 621 1,679 228
Interest expense 130 116 235 224
Depreciation and Amortization 1,809 1,136 3,265 2,221
Stock compensation expense 148 281 289 576
       
EBITDA 5,924 2,377 8,791 2,812

Copyright Business Wire 2010

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