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PowerSecure International Inc. Reports Operating Results (10-Q)

May 05, 2011 | About:
10qk

10qk

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PowerSecure International Inc. (POWR) filed Quarterly Report for the period ended 2011-03-31.

Powersecure International Inc. has a market cap of $136.8 million; its shares were traded at around $7.3 with a P/E ratio of 52.1 and P/S ratio of 1.3.

Highlight of Business Operations:

On April 27, 2011, we announced that we had received $15 million of new awards for products and services across our Energy and Smart Grid Solutions business lines. The new business includes orders for approximately $8 million of Interactive Distributed Generation® (IDG®) smart grid power systems, $5 million of Utility Infrastructure projects, and $2 million of LED lighting products. The new awards were issued by a broad range of utilities and commercial and industrial customers. The largest of the awards includes an Interactive Distributed Generation system to support a municipality, the installation of a new substation on behalf of a second municipality, and the installation of our new EfficientLights LED shelf lighting product for a major U.S. grocers open-style refrigerated cases. Virtually all of this $15 million of new business is turn-key project-based revenue, which we expect to recognize primarily during the second through fourth quarters of 2011.

Our loss from continuing operations attributable to PowerSecure International, Inc. shareholders for the first quarter 2011 was ($0.9) million, or ($0.05) per diluted share, compared to income from continuing operations attributable to PowerSecure International, Inc. shareholders of $0.7 million, or $0.04 per diluted share, for the first quarter 2010.

Our income from discontinued operations for the first quarter 2011, consisting of the gain we recorded on the sale of Southern Flow, was $5.6 million, or $0.30 per diluted share. This compares to income from discontinued operations for the first quarter 2010 of $0.5 million, or $0.03 per diluted share, which consisted of the operating results of Southern Flow during the first quarter 2010.

In total, our consolidated net income attributable to PowerSecure International, Inc. common stockholders for the first quarter 2011 was $4.7 million, or $0.25 per diluted share, which compared to net income attributable to PowerSecure International, Inc. common stockholders of $1.2 million, or $0.07 per diluted share, for the first quarter 2010.

As of the date of this report, our revenue backlog expected to be recognized after March 31, 2011 is $146 million. This includes revenue related to the new business announcement made by us on April 27, 2011, and compares to $150 million of revenue backlog we reported in our Annual Report on Form 10-K for the year ended December 31, 2010 filed on March 10, 2011 (the date we last reported our backlog). Our revenue backlog and the estimated timing of revenue recognition is 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 contracts:

Our Energy and Smart Grid Solutions segment distributed generation revenues are very heavily affected by the number, size and timing of our Interactive Distributed Generation projects as well as the percentage of completion of in-process projects, and the percentage of turn-key as opposed to recurring revenue projects. Our Interactive Distributed Generation sales have fluctuated significantly in the past and are expected to continue to fluctuate significantly in the future. Our Energy and Smart Grid Solutions segment revenues increased by $3.3 million, or 15.9%, during the first quarter 2011 compared to the first quarter 2010. The increase in those revenues in the first quarter 2011 over the first quarter 2010 was primarily attributable to a $0.8 million, or 7.5%, increase in revenues from our Interactive Distributed Generation products and services, a $2.2 million, or 41.1%, increase in revenues from our Utility Infrastructure products and services, and a $0.3 million, or 5.6%, increase in revenues from our Energy Efficiency products and services. The increase in our Interactive Distributed Generation product sales and services reflects gradual improvements in economic conditions and increased business investment spending by large industrial, institutional, and municipal customers. The increase in our Utility Infrastructure product sales and services was due to an increase in the number of utilities that we service, and an increase in those customers spending levels on transmission and distribution system maintenance and construction. The increase in our Energy Efficiency sales and services in the first quarter 2011 compared the first quarter 2010 reflects the inclusion of revenues from our IES LED lighting business operations which we acquired in the second quarter of 2010.

Read the The complete Report

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