Orion Energy Systems, Inc. Announces Fiscal 2012 Second Quarter Results; Reaffirms Fiscal 2012 Guidance
Record backlog heading into back half of fiscal year
Second Quarter of Fiscal 2012
For the second quarter of fiscal 2012, Orion reported revenues of
Total backlog at the end of the second quarter of fiscal 2012 was a
record
For the second quarter of fiscal 2012, the Company reported a net loss
of
First Half of Fiscal 2012
For the first six months of fiscal 2012, revenues were
For the first six months of fiscal 2012, the Company reported a net loss
of
Key Business Highlights
During the second quarter of fiscal 2012:
- Orion increased the number of facilities retrofitted with its Compact Modular high-intensity fluorescent lighting technology to 7,368 as of the end of the fiscal 2012 second quarter (compared to 7,097 as of the end of the first quarter of fiscal 2012), representing 1.1 billion square feet of installed facilities.
- Total deployments of the Company's InteLite® wireless controls increased to 681 customer locations, consisting of 86,329 dynamic control devices (or transceivers) and 592 control panels (compared to 78,564 transceivers and 580 control panels as of the end of the first quarter of fiscal 2012). The deployments represent 38.8 million square feet of installed facilities as of the end of the second quarter of fiscal 2012 (compared to 35.4 million square feet as of the end of the first quarter of fiscal 2012).
- Total Apollo® solar light pipes installed increased to 14,021 total units (compared to 12,602 total units as of the end of the first quarter 2012), representing 6.3 million square feet of installed facilities as of the end of the second quarter of fiscal 2012 (compared to 5.7 million square feet of installed facilities as of the end of the first quarter of fiscal 2012).
-
In
September 2011 , Orion completed a$10.0 million Orion Throughput Agreement (OTA) credit facility withJ.P. Morgan Chase NA to further support its growing OTA volume. The new OTA facility provided$5.0 million of immediate available funding ($1.8 million of which was immediately utilized) and the potential for an additional$5.0 million of funding upon the achievement of certain financial conditions. The completed debt agreement represents the fourth individual tranche of funding secured for financing OTA contracts during the past 12 months. The Company now has multiple sources to finance its OTA contracts.
Fiscal 2012 Outlook
For fiscal 2012, the Company reaffirms its previously provided annual
revenue and earnings per share guidance. The Company continues to expect
revenue to be between
The Company currently expects the forecasted ranges for other key financial-statement line items and metrics for fiscal 2012 to be as follows:
- Gross margin — 33.2% to 35.2%
- Operating margin — 7.0% to 8.0%
- Effective tax rate — approximately 40.0%
- Diluted share count — 23.9 to 24.7 million
-
Capital spending (excluding OTA contract financing) -
$3.0 to $3.4 million -
Depreciation and amortization -
$3.6 to $4.0 million -
Stock-based compensation expense -
$1.7 to $2.1 million
The above guidance is based on the Company's current expectations. These
statements are forward-looking and actual results may differ materially.
The Company assumes no obligation to publicly update or revise its
outlook. Investors are reminded that actual results may differ, and may
differ materially, from these estimates for the reasons described below
under the caption "Safe Harbor Statement" and in the Company's filings
with the
Cash, Debt and Liquidity Position
Orion had
Supplemental Information
In conjunction with this press release, Orion has posted supplemental
information on its website which further discusses the financial
performance of the Company for the three and six months ended
Conference Call
Orion will host a conference call on
About
- Energy demand by 678,531 kilowatts, or 18.0 billion kilowatt-hours;
-
Energy costs by approximately
$1.4 billion ; and - Indirect carbon dioxide emission by 11.7 million tons.
Safe Harbor Statement
Certain matters discussed in this press release are "forward-looking
statements" intended to qualify for the safe harbors from liability
established by the Private Securities Litigation Reform Act of 1995.
These forward-looking statements may generally be identified as such
because the context of such statements will include words such as
"anticipate," "believe," "could," "estimate," "expect," "intend," "may,"
"plan," "potential," "predict," "project," "should," "will," "would" or
words of similar import. Similarly, statements that describe the
Company's financial guidance or future plans, objectives or goals are
also forward-looking statements. Such forward-looking statements are
subject to certain risks and uncertainties that could cause results to
differ materially from those expected, including, but not limited to,
the following: (i) deterioration of market conditions, including
customer capital expenditure budgets; (ii) our ability to compete and
execute our growth strategy in a highly competitive market and our
ability to respond successfully to market competition; (iii) increasing
duration of customer sales cycles; (iv) the market acceptance of our
products and services, including increasing customer preference to
purchase our products through our Orion Throughput Agreements, or OTAs,
rather than through cash purchases; (v) our ability to effectively
manage the credit risk associated with our increasing reliance on OTA
contracts; (vi) price fluctuations, shortages or interruptions of
component supplies and raw materials used to manufacture our products;
(vii) loss of one or more key employees, customers or suppliers,
including key contacts at such customers; (viii) our ability to
effectively manage our product inventory to provide our products to
customers on a timely basis; (ix) the increasing relative volume of our
product sales through our wholesale channel; (x) a reduction in the
price of electricity; (xi) the cost to comply with, and the effects of,
any current and future government regulations, laws and policies; (xii)
increased competition from government subsidies and utility incentive
programs; (xiii) dependence on customers' capital budgets for sales of
products and services; (xiv) our development of, and participation in,
new product and technology offerings or applications; the availability
of additional debt financing and/or equity capital; (xv) legal
proceedings; and (xvi) potential warranty claims. Shareholders,
potential investors and other readers are urged to consider these
factors carefully in evaluating the forward-looking statements and are
cautioned not to place undue reliance on such forward-looking
statements. The forward-looking statements made herein are made only as
of the date of this press release and Orion undertakes no obligation to
publicly update any forward-looking statements, whether as a result of
new information, future events or otherwise. More detailed information
about factors that may affect our performance may be found in our
filings with the
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) |
||||||||||||||||
|
Three Months Ended |
Six Months Ended September 30, | |||||||||||||||
| 2010 | 2011 | 2010 | 2011 | |||||||||||||
| Product revenue | $ | 15,086 | $ | 18,718 | $ | 30,844 | $ | 40,397 | ||||||||
| Service revenue | 767 | 542 | 1,986 | 1,637 | ||||||||||||
| Total revenue | 15,853 | 19,260 | 32,830 | 42,034 | ||||||||||||
|
Cost of product revenue |
9,745 | 12,059 | 20,053 | 27,063 | ||||||||||||
| Cost of service revenue | 498 | 382 | 1,415 | 1,116 | ||||||||||||
| Total cost of revenue | 10,243 | 12,441 | 21,468 | 28,179 | ||||||||||||
| Gross profit | 5,610 | 6,819 | 11,362 | 13,855 | ||||||||||||
|
Operating expenses: |
||||||||||||||||
| General and administrative | 2,988 | 2,724 | 5,933 | 5,800 | ||||||||||||
| Sales and marketing | 3,299 | 3,736 | 6,889 | 7,504 | ||||||||||||
| Research and development | 573 | 593 | 1,183 | 1,215 | ||||||||||||
| Total operating expenses | 6,860 | 7,053 | 14,005 | 14,519 | ||||||||||||
| Loss from operations | (1,250 | ) | (234 | ) | (2,643 | ) | (664 | ) | ||||||||
|
Other income (expense): |
||||||||||||||||
| Interest expense | (55 | ) | (150 | ) | (124 | ) | (237 | ) | ||||||||
| Dividend and interest income | 153 | 214 | 246 | 368 | ||||||||||||
| Total other income (expense) | 98 | 64 | 122 | 131 | ||||||||||||
| Loss before income tax | (1,152 | ) | (170 | ) | (2,521 | ) | (533 | ) | ||||||||
| Income tax expense (benefit) | (1,692 | ) | (71 | ) | (2,525 | ) | (215 |
) |
||||||||
| Net income (loss) | $ | 540 | $ | (99 | ) | $ | 4 | $ | (318 | ) | ||||||
| Basic net income (loss) per share | $ | 0.02 | $ | 0.00 | $ | 0.00 | $ | (0.01 | ) | |||||||
| Weighted-average common shares outstanding | 22,638,638 | 22,989,502 | 22,581,188 | 22,955,655 | ||||||||||||
| Diluted net income (loss) per share | $ | 0.02 | $ | 0.00 | $ | 0.00 | $ | (0.01 | ) | |||||||
| Weighted-average common shares outstanding | 22,901,590 | 22,989,502 | 23,007,067 | 22,955,655 | ||||||||||||
The following amounts of stock-based compensation were recorded (in thousands):
|
Three Months Ended |
Six Months Ended September 30, | |||||||||||
| 2010 | 2011 | 2010 | 2011 | |||||||||
| Cost of product revenue | $ | 38 | $ | 35 | $ | 74 | $ | 77 | ||||
| General and administrative | 173 | 140 | 271 | 296 | ||||||||
| Sales and marketing | 145 | 124 | 254 | 272 | ||||||||
| Research and development | 7 | 7 | 12 | 12 | ||||||||
| Total | $ | 363 | $ | 306 | $ | 611 | $ | 657 | ||||
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) |
||||||||
|
March 31, 2011 |
September 30, 2011 |
|||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 11,560 | $ | 15,559 | ||||
| Short-term investments | 1,011 | 1,014 | ||||||
|
Accounts receivable, net of allowances of |
27,618 | 21,637 | ||||||
| Inventories, net | 29,507 | 32,844 | ||||||
|
Deferred tax assets |
947 |
1,268 |
||||||
| Prepaid expenses and other current assets | 2,499 | 4,052 | ||||||
| Total current assets | 73,142 | 76,374 | ||||||
|
Property and equipment, net |
30,017 | 30,233 | ||||||
| Patents and licenses, net | 1,620 | 1,677 | ||||||
| Long-term accounts receivable | 6,030 | 7,948 | ||||||
| Deferred tax assets | 2,112 | 2,358 | ||||||
| Other long-term assets | 2,069 | 1,984 | ||||||
| Total assets | $ | 114,990 | $ | 120,574 | ||||
|
Liabilities and Shareholders' Equity |
||||||||
| Accounts payable | $ | 12,479 | $ | 10,384 | ||||
| Accrued expenses and other | 2,324 | 2,683 | ||||||
| Deferred revenue, current | 262 | 3,077 | ||||||
| Current maturities of long-term debt | 1,137 | 2,351 | ||||||
| Total current liabilities | 16,202 | 18,495 | ||||||
|
Long-term debt, less current maturities |
4,225 | 6,930 | ||||||
| Deferred revenue, long-term | 1,777 | 1,583 | ||||||
| Other long-term liabilities | 399 | 400 | ||||||
| Total liabilities | 22,603 | 27,408 | ||||||
| Additional paid-in capital | 124,805 | 126,002 | ||||||
| Treasury stock | (31,708 | ) | (31,757 | ) | ||||
| Shareholder notes receivable | (193 | ) | (244 | ) | ||||
| Accumulated deficit | (517 | ) | (835 | ) | ||||
| Total shareholders' equity | 92,387 | 93,166 | ||||||
| Total liabilities and shareholders' equity | $ | 114,990 | $ | 120,574 | ||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) |
||||||||
| Six Months Ended September 30, | ||||||||
| 2010 | 2011 | |||||||
| Operating activities | ||||||||
| Net income (loss) | $ | 4 | $ | (318 | ) | |||
| Adjustments to reconcile net income (loss) to net | ||||||||
| cash used in operating activities: | ||||||||
| Depreciation and amortization | 1,543 | 1,876 | ||||||
| Stock-based compensation expense | 611 | 657 | ||||||
| Deferred income tax benefit | (1,374 | ) | (567 | ) | ||||
| Change in allowance for notes and accounts receivable | 64 | 49 | ||||||
| Other | 34 | 37 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, current and long-term | 2,546 | 4,014 | ||||||
| Inventories | (7,715 | ) | (3,337 | ) | ||||
| Prepaid expenses and other assets | (6,454 | ) | (1,373 | ) | ||||
| Deferred revenue, current and long-term | 991 | 2,621 | ||||||
| Accounts payable | 1,474 | (2,095 | ) | |||||
| Accrued expenses and other liabilities | (357 | ) | 360 | |||||
| Net cash (used in) provided by operating activities | (8,633 | ) | 1,924 | |||||
|
Investing activities |
||||||||
| Purchase of property and equipment | (1,957 | ) | (2,003 | ) | ||||
| Purchase of property and equipment leased to | ||||||||
| customers under operating leases | (1,630 | ) | (3 | ) | ||||
| Purchase of short-term investments | (7 | ) | (3 | ) | ||||
| Additions to patents and licenses | (110 | ) | (125 | ) | ||||
| Long-term assets | (330 | ) | — | |||||
| Proceeds from sales of property, plant and equipment | 1 | 1 | ||||||
| Net cash used in investing activities | (4,033 | ) | (2,133 | ) | ||||
|
Financing activities |
||||||||
| Payment of long-term debt | (271 | ) | (664 | ) | ||||
| Proceeds from long-term debt | 2,689 | 4,583 | ||||||
| Proceeds from repayment of shareholder notes | — | 13 | ||||||
| Excess tax benefits from stock-based compensation | — | 271 | ||||||
| Deferred financing costs and offering costs | (61 | ) | (113 | ) | ||||
| Proceeds from issuance of common stock | 269 | 118 | ||||||
| Net cash provided by financing activities | 2,626 | 4,208 | ||||||
|
Net (decrease) increase in cash and cash equivalents |
(10,040 | ) | 3,999 | |||||
| Cash and cash equivalents at beginning of period | 23,364 | 11,560 | ||||||
| Cash and cash equivalents at end of period | $ | 13,324 | $ | 15,559 | ||||
Investor Relations Contact:
Chief Financial Officer
(920) 892-5454
sjensen@oesx.com
Source:
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