For the twelve months ended December 31, 2005, Metretek
Technologies, Inc. (AMEX:MEK) reported record revenues of $47.3
million and record income from continuing operations of $2.6
million, or $0.21 per basic share, compared to revenues of $35.2
million and income from continuing operations of $1.6 million, or
$0.03 per basic share, in 2004. Net income in 2005, after a
$300,000 loss from discontinued operations, was a record $2.3
million, or $0.19 per basic share, compared to a net loss, after a
$4.8 million loss from discontinued operations, in 2004 of $3.2
million, or $(0.47) per share. For the three months ended December
31, 2005, the Company reported revenues of $15.2 million and income
from continuing operations and net income of $1.5 million, or $0.12
per basic share. In the comparable period a year ago, the Company
reported revenues of $9.2 million, income from continuing
operations of $723,000, or $0.05 per basic share, and net income of
$413,000, or $0.02 per basic share. "In terms of both sales and
operating performance, 2005 was by far the most successful year in
Metretek's history," said W. Phillip Marcum, president and chief
executive officer of Metretek Technologies. "Year-over-year,
revenues increased by $12.1 million, or 34%, to $47.3 million;
equally gratifying, income from continuing operations increased by
67% to $2.6 million. The bulk of the credit goes to our PowerSecure
subsidiary, whose revenues of $30.2 million were 62% higher than in
the prior year, and whose segment profit was a record $2.6 million.
We also continued the strengthening of our balance sheet, ending
the year with almost $5 million in working capital, approximately
$3.2 million in additional borrowing capacity to further support
working capital, and shareholders' equity of $16.2 million.
"Several recent developments have solidified our outlook for 2006,
and we are anticipating a great year," said Marcum. "In addition to
the many new projects announced by our PowerSecure subsidiary, our
outlook for Southern Flow has also improved, as it is now exceeding
our expectations and has fully recovered from the substantial
adverse effects of last year's hurricanes." According the Sidney
Hinton, president and CEO of PowerSecure, "Since November,
PowerSecure has announced new distributed generation projects
totaling approximately $133 million, of which $83 million are
scheduled for completion in 2006, with the remainder scheduled for
2007. Our sales processes have been absolutely on target and place
us in the enviable position of having project backlog that easily
supports PowerSecure's revised 2006 revenue target of $90 million.
Now, the key to meeting our projections is execution. Despite
forgoing a meaningful portion of our normal margins on the projects
associated with our largest customer, we still expect to maintain
reasonable overall margins within PowerSecure due to a good mix of
higher margin projects, services and products." "While the overall
outlook for 2006 is extremely positive, our business has fluctuated
and will continue to fluctuate substantially from quarter to
quarter, as demonstrated in the fourth quarter of 2005," added
Marcum. "Our stakeholders should expect that PowerSecure's revenue
recognition in 2006 will be subject to numerous influences and will
be heavily skewed toward the last nine months of the year.
Moreover, because PowerSecure will incur substantial additional
overhead in advance of revenues to support its ambitious 2006
production plan," said Marcum, "we expect that the first quarter
may show consolidated net operating results of breakeven to a small
net loss." Updated Guidance for 2006: For its fiscal year 2006, the
Company now anticipates that net income will be in the range of $10
million to $13 million, or approximately $0.75 to $1.00 per basic
share, on total revenues of approximately $110 million, including
approximately $90 million in sales contributed by PowerSecure.
Adjusted EBITDA: Adjusted EBITDA for the year ended December 31,
2005 was $4,064,000, compared to $2,920,000 for the year ended
December 31, 2004, a $1,144,000 increase. As computed by the
Company, adjusted EBITDA is a non-GAAP financial measure (as such
term is defined by the Securities and Exchange Commission) computed
as income from continuing operations before interest and finance
charges, income taxes, depreciation and amortization, and minority
interest. By eliminating certain expenses not necessarily
indicative of the results of the Company's core operations,
management believes that adjusted EBITDA offers a useful tool to
measure and monitor the Company's operating performance, and
provides meaningful information to investors in terms of enhancing
their understanding of the Company's core operating performance and
results. Adjusted EBITDA is also used by management to assist in
planning and forecasting future operations. However, adjusted
EBITDA as defined by the Company may not be directly comparable to
similarly defined measures as reported by other companies. Adjusted
EBITDA should be considered only as a supplement to, and not as a
substitute for or in isolation from, other measures of financial
performance and liquidity reported in accordance with generally
accepted accounting principles ("GAAP"), such as net income.
Conference Call and Webcast: At 2:30 p.m. MST (4:30 p.m. EST)
today, March 15, the Company will hold a teleconference to discuss
the financial results and future plans and prospects. To
participate in the teleconference, please call 800-291-8929 (or
706-634-0478 for international callers) approximately 10 minutes
prior to the start time and indicate that you are dialing in to the
Metretek Technologies conference call. This call is being Webcast
and can be accessed live via the Internet at the Company's website,
www.metretek.com; to access the call, click on the "Investor Info"
button and then click on the icon for the "2005 fourth-quarter
results teleconference." The Webcast player will open following
completion of a brief registration process. The Webcast will also
be available at www.earnings.com; to access the call, type in
Metretek's stock symbol, MEK, in the top right corner of the home
page to be taken to the Company's webcast page. These websites will
host an archive of the teleconference. Additionally, a playback of
the call will be available for 48 hours beginning at 5:30 p.m. MST
on March 15; you may access the playback by calling 800-642-1687
(or for international callers 706-645-9291) and providing
Conference ID number 6516727. About Metretek Technologies: Metretek
Technologies, Inc. through its subsidiaries -- Southern Flow
Companies, Inc.; PowerSecure, Inc.; and Metretek, Incorporated
(Metretek Florida) -- is a diversified provider of energy
measurement products, services and data management systems to
industrial and commercial users and suppliers of natural gas and
electricity. Safe-Harbor Statement: All forward-looking statements
contained in this press release are made within the meaning of and
under 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 regarding the business prospects for the
Company and its subsidiaries; the outlook for consolidated revenues
and earnings in the first quarter and the full year of 2006; the
effects of the new orders on PowerSecure's business and operations;
the improved outlook for Southern Flow; 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 any of 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 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 Company's
ability to maintain sufficient capital and liquidity on favorable
terms to meet its operating, working capital and debt service
requirements and other capital commitments and contingencies and to
fund the growth of its business; the timely and successful
development, production and market acceptance of new and enhanced
products, services and technologies of the Company; the ability of
PowerSecure to develop and expand its core distributed generation
and its new energy-related businesses, services and technologies,
to manage its growth and to address the effects of any future
changes in tariff structures and environmental requirements on its
business solutions; effects from time to time of hurricanes and
other severe weather conditions on the demand for Southern Flow's
products and services; the ability of Metretek Florida to
successfully develop and expand its products, service, technologies
and markets; the effects of competition; changes in customer and
industry demand and preferences and purchasing patterns; the
Company's ability to attract, retain and motivate key personnel;
the ability of the Company to secure and maintain key contracts,
relationships and alliances and to make successful acquisitions;
the effects of pending and future litigation, claims and disputes;
changes in the energy industry generally and in the natural gas and
electricity industries in particular, including price levels;
general economic, market and business conditions; the effects of
international conflicts and terrorism; and other risks,
uncertainties and other factors identified from time to time in the
Company's reports and filings with the Securities and Exchange
Commission. Accordingly, there can be 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. -0- *T METRETEK TECHNOLOGIES, INC. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Fourth Quarter
Ended Year Ended December 31, December 31, 2005 2004 2005 2004
Total revenues $15,229,366 $ 9,208,424 $47,252,552 $35,176,923
Total costs and expenses 13,996,585 8,800,995 46,051,135 34,570,407
Operating income 1,232,781 407,429 1,201,417 606,516 Equity income
348,806 363,871 1,689,537 1,254,509 Minority interest (42,521)
(36,951) (210,875) (238,389) Income taxes (30,000) (11,603)
(45,690) (47,590) Income from continuing operations 1,509,066
722,746 2,634,389 1,575,046 Loss on discontinued operations -
(309,318) (300,000) (4,818,586) Net income $ 1,509,066 $ 413,428 $
2,334,389 $(3,243,540) BASIC EARNINGS (LOSS) PER COMMON SHARE:
Income from continuing operations $ 0.12 $ 0.05 $ 0.21 $ 0.03 Loss
from discontinued operations 0.00 (0.03) (0.02) (0.50) Income
(loss) per common share $ 0.12 $ 0.02 $ 0.19 $ (0.47) DILUTED
EARNINGS (LOSS) PER COMMON SHARE: Income from continuing operations
$ 0.11 $ 0.05 $ 0.20 $ 0.03 Loss from discontinued operations 0.00
(0.03) (0.02) (0.48) Income (loss) per common share $ 0.11 $ 0.02 $
0.18 $ (0.45) WEIGHTED AVERAGE COMMON SHARES OUTSTANDING, BASIC
12,402,865 11,618,231 12,287,107 9,531,199 DILUTED 14,194,512
12,014,467 13,360,515 10,035,730 CONDENSED CONSOLIDATED BALANCE
SHEETS (unaudited) December 31, December 31, 2005 2004 Total
current assets $18,234,054 $15,394,937 Property, plant and
equipment, net 3,213,294 2,737,130 Total other assets 11,871,578
12,078,849 Total assets $33,318,926 $30,210,916 Total current
liabilities $13,322,898 $10,278,052 Long-term notes payable and
capital lease obligations 3,596,733 6,082,159 Liabilities of
discontinued operations -- 843,649 Minority interest in
subsidiaries 169,755 89,792 Total stockholders' equity 16,229,540
12,917,264 Total liabilities and stockholders' equity $33,318,926
$30,210,916 RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME In
accordance with Regulation G, set forth below is a reconciliation
of Adjusted EBITDA, a non-GAAP financial measure, to income from
continuing operations, its most directly comparable financial
measure computed in accordance with GAAP. Fourth Quarter Ended Year
Ended December 31, December 31, 2005 2004 2005 2004 Income from
continuing operations $1,509,066 $ 722,746 $2,634,389 $1,575,046
Add back: Interest and finance charges 113,519 136,417 608,963
480,110 Income taxes 30,000 11,603 45,690 47,590 Depreciation and
amortization 171,106 172,635 563,889 578,516 Minority interest
42,521 36,951 210,875 238,389 Adjusted EBITDA $1,866,212 $1,080,352
$4,063,806 $2,919,651 *T
Metretek (AMEX:MEK)
Historical Stock Chart
From Jul 2024 to Aug 2024
Metretek (AMEX:MEK)
Historical Stock Chart
From Aug 2023 to Aug 2024