Close

Form 8-K ENERNOC INC For: Feb 26

February 26, 2015 4:11 PM EST

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): February 26, 2015

 

 

EnerNOC, Inc.

(Exact Name of Registrant as Specified in Charter)

 

 

 

Delaware   001-33471   87-0698303

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

One Marina Park Drive, Suite 400, Boston, Massachusetts   02210
(Address of Principal Executive Offices)   (Zip Code)

Registrant’s telephone number, including area code: (617) 224-9900

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

  ¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

  ¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

  ¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

  ¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 2.02. Results of Operations and Financial Condition.

On February 26, 2015, EnerNOC, Inc. (the “Company”) announced its financial results for the quarter and fiscal year ended December 31, 2014. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K.

The information in this Current Report on Form 8-K and in Exhibit 99.1, attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

 

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

(e) Compensatory Arrangements of Certain Officers

2015 Executive Bonus Targets

At a meeting held on February 26, 2015, the Compensation Committee (the “Committee”) of the Board of Directors of the Company approved the Company’s 2015 executive bonus targets. The 2015 annual bonus amount (the “Bonus Amount”) for each “named executive officer” (as such term is used in Instruction 4 to Item 5.02 of Form 8-K) (collectively, the “Named Executives”), will be determined based upon the achievement of certain pre-determined revenue and annual recurring revenue targets applicable to fiscal 2015 (collectively, the “Targets”), which Targets have been set by the Committee. The Bonus Amounts will be payable in cash or shares of common stock of the Company, par value $0.001 per share (the “Common Stock”), subsequent to the certification of the achievement of the Targets by the Committee, such certification to be finalized between February 1st and March 15th of 2016, except for the Company’s Chief Executive Officer and Chairman, who will receive his Bonus Amount in shares of Common Stock following the certification described above pursuant to the terms of his employment agreement.

Item 9.01. Financial Statements and Exhibits.

 

  (d) Exhibits

The following exhibit relating to Item 2.02 shall be deemed to be furnished, and not filed:

 

Exhibit
No.

  

Description

99.1    Press Release issued by the Company on February 26, 2015.

 

-1-


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

ENERNOC, INC.
Date: February 26, 2015 By:

/s/ Matthew Cushing

Name: Matthew Cushing
Title: Vice President and General Counsel

 

-2-


EXHIBIT INDEX

 

Exhibit
No.

  

Description

99.1    Press Release issued by the Company on February 26, 2015.

 

-3-

Exhibit 99.1

 

LOGO

Media and Investor Relations:

Robin Deliso

617.692.2601

[email protected]

EnerNOC Reports Full Year Results for 2014

– Company Posts Record Full Year Revenue of $472 Million, Up 23% Year-Over-Year –

– Company Posts Record Adjusted EBITDA of $76 Million –

– Enterprise EIS Momentum Accelerates with 117% Year-Over-Year Growth in Subscription Customers –

– Company Issues Guidance for 2015 –

Boston, February 26, 2015 — EnerNOC, Inc. (Nasdaq: ENOC), a leading provider of energy intelligence software (EIS), today announced results for the fourth quarter and year ended December 31, 2014, and issued management’s outlook for 2015.

 

Summary Financial Results  
In Thousands, Except Per Share Amounts                                       
     Q4 2014     Q4 2013     % Change     2014      2013      % Change  

Revenue

   $ 45,963      $ 35,984        27.7   $ 471,948       $ 383,460         23.1

Net (Loss) Income

              

GAAP

   ($ 26,781   ($ 19,881     34.7   $ 12,094       $ 22,088         -45.2

Non-GAAP1

   ($ 18,318   ($ 14,076     30.1   $ 36,397       $ 44,985         -19.1

Net (Loss) Income Per Diluted Share

              

GAAP

   ($ 0.98   ($ 0.71     38.0   $ 0.42       $ 0.76         -44.7

Non-GAAP1

   ($ 0.67   ($ 0.51     31.4   $ 1.26       $ 1.55         -18.7

Cash Flow From Operations

   $ 30,727      $ 46,005        -33.2   $ 60,439       $ 79,464         -23.9

Free Cash Flow1

   $ 26,022      $ 42,267        -38.4   $ 42,932       $ 42,801         0.3

Adjusted EBITDA1

   ($ 14,089   ($ 10,913     29.1   $ 76,370       $ 71,428         6.9

 

1  Refer to “Statement of Use of Non-GAAP Measures” for non-GAAP definitions and refer to the financial schedules attached to this press release for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.

“We made significant progress in 2014 to transform EnerNOC into a Software-as-a-Service company. We closed the year with over 50 utility customers and approximately 1,300 enterprise customers subscribing to our software and related solutions. We start 2015 with approximately $115 million in annual recurring revenue, or ARR, from our utility and enterprise customers, and expect to achieve 40-50% cumulative revenue growth from these customers this year. With this kind of momentum, we anticipate that our utility and enterprise revenue will eclipse our grid operator revenue over the next few years,” said Tim Healy, Chairman and CEO of EnerNOC. “We’re excited about the road ahead and believe that now is the time to accelerate investments to capitalize on our early leadership position in the $20 billion EIS market opportunity.”


Recent Highlights

 

    The Company announced the completion of its acquisition of World Energy Solutions, Inc., an energy management software and services firm that helps enterprises simplify the energy procurement process through a suite of Software-as-a-Service (SaaS) tools. World Energy, which has provided procurement solutions for 20 of the Fortune 100, has an extensive customer base in key strategic markets like Texas, Massachusetts, Pennsylvania, Ohio, New Jersey, and New York.

 

    The Company announced its acquisition of Pulse Energy, a leader in customer engagement software for the utility industry, to help utilities better engage all of their commercial and industrial customers, from small businesses to the largest enterprises. Pulse Energy’s software is currently used by utilities in North America, Europe, and Australia, including BC Hydro, British Gas, Ergon Energy, FortisBC, and Pacific Gas & Electric.

 

    The Company continued to expand its growing base of enterprise EIS customers, signing new deals with Dow Corning, Performance Food Group, and Universal Fibers, and achieved 117% year-over-year growth in subscription customers.

 

    The Company launched new product capabilities including enhanced visibility into real-time energy costs and tools to build more accurate budgets and track accruals.

 

    The Company surpassed $1 billion in customer savings delivered since it was founded in 2001. EnerNOC celebrated the milestone at its headquarters at an event that included remarks from former Massachusetts Governor Deval L. Patrick and live and recorded testimonials from long-standing EnerNOC software customers.

 

    The Company added software and services executive Kirk Arnold to its Board of Directors. Ms. Arnold is CEO of Data Intensity, the industry leader in managed and cloud services for Oracle technologies and applications.

 

    In addition, the Company announced that it has hired Eric Erston, Vice President of Global Enterprise Sales, and Holly Lynch, Senior Vice President of Human Resources. Prior to joining EnerNOC, Mr. Erston served in a variety of sales leadership roles at RSA, the Security Division of EMC. Ms. Lynch was previously Senior Vice President of Human Resources at Hologic, a leading global healthcare technology and diagnostics company.


Company Issues First Quarter and Full Year Guidance

The Company today issued first quarter and full year guidance for 2015. The Company’s guidance is based on the current indications for its business, which may change at any time.

 

     Guidance for
Quarter Ending
March 31, 2015

Total Revenue (in millions)

   $48-$53

GAAP Net Loss Per Diluted Share

   ($1.73)-($1.66)

Non-GAAP Net Loss Per Diluted Share1

   ($1.36)-($1.29)

Adjusted EBITDA1 (in millions)

   ($28.5)-($26.5)

 

(1)  Refer to “Statement of Use of Non-GAAP Measures” for non-GAAP definitions and refer to the financial schedules attached to this press release for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.

 

     Guidance for Year Ending
December 31, 2015
   Year Over Year
% Change

Total Revenue (in millions)

   $410-$430    (13%)-(9%)

Grid Operator Revenue

   $270-$280    (27%)-(24%)2

Utility Revenue

   $70-$75    13%-21%

Enterprise Revenue

   $70-$75    70%-83%

GAAP Net Loss Per Diluted Share

   ($3.23)-($3.12)   

Non-GAAP Net Loss Per Diluted Share1

   ($1.77)-($1.66)   

Adjusted EBITDA1 (in millions)

   ($14)-($10)3   
  

 

  

 

 

(1)  Refer to “Statement of Use of Non-GAAP Measures” for non-GAAP definitions and refer to the financial schedules attached to this press release for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.
(2) The year-over-year decline in Grid Operator Revenue is primarily attributable to capacity pricing declines in Western Australia, reduced revenue from PJM incremental auctions, and participation in new PJM demand response programs that require deferral of revenue recognition to the second quarter of 2016.
(3)  The Company expects full year 2015 Free Cash Flow to be break even to positive.

Company to Host Live Conference Call and Webcast

The Company’s management team plans to host a live conference call and audiocast at 5:00 p.m. eastern time today to discuss financial results as well as management’s outlook for the business. The conference call may be accessed in the United States by dialing +1.800.230.1085 and using access code “ENOC”. The conference call may be accessed outside of the United States by dialing +1.612.288.0329 and using access code “ENOC”. The


conference call will be simultaneously audiocast on the Company’s investor relations website, which can be accessed at http://investor.enernoc.com. A replay of the conference call will be available approximately two hours after the call by dialing +1.800.475.6701 or +1.320.365.3844 and using access code 351720 or by accessing the audiocast replay on the Company’s investor relations website.

About EnerNOC

EnerNOC is a leading provider of cloud-based energy intelligence software (EIS) and services to thousands of enterprise customers and utilities globally. EnerNOC’s EIS solutions for enterprise customers improve energy productivity by optimizing how they buy, how much they use, and when they use energy. EIS for enterprise includes budgeting and procurement, utility bill management, facility optimization, visibility and reporting, project tracking, demand management, and demand response. EnerNOC’s EIS solutions for utilities help maximize customer engagement and the value of demand-side resources, including demand response and energy efficiency. EnerNOC supports customer success with its world-class professional services team and a Network Operations Center (NOC) staffed 24x7x365. For more information, visit www.enernoc.com.

EnerNOC, Inc. Safe Harbor Statement

Statements in this press release regarding management’s future expectations, beliefs, intentions, goals, strategies, plans or prospects, including, without limitation, statements relating to the Company’s future financial performance on both a GAAP and non-GAAP basis and the future growth and success of the Company’s energy intelligence software and related solutions, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Forward-looking statements can be identified by terminology such as “anticipate,” “believe,” “could,” “could increase the likelihood,” “estimate,” “expect,” “intend,” “is planned,” “may,” “should,” “will,” “will enable,” “would be expected,” “look forward,” “may provide,” “would” or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those risks, uncertainties and factors referred to under the section “Risk Factors” in EnerNOC’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, as well as other documents that may be filed by EnerNOC from time to time with the Securities and Exchange Commission. As a result of such risks, uncertainties and factors, the Company’s actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. EnerNOC is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


EnerNOC, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share data)

(unaudited)

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2014     2013     2014     2013  

Revenues1:

        

Grid operator

   $ 18,236      $ 12,815      $ 368,828      $ 279,258   

Utility

     12,015        13,772        62,026        71,611   

Enterprise

     15,712        9,397        41,094        32,591   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

  45,963      35,984      471,948      383,460   

Cost of revenues

  24,817      20,150      257,322      192,292   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

  21,146      15,834      214,626      191,168   

Operating expenses (income):

Selling and marketing

  19,963      15,471      76,960      65,915   

General and administrative

  25,389      18,348      97,729      79,220   

Research and development

  5,239      4,192      20,671      18,317   

Gain on sale of service lines

  (1,054   —        (4,791   —     

Gain on the sale of assets

  —        —        (2,171   —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses and income

  49,537      38,011      188,398      163,452   
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) income from operations

  (28,391   (22,177   26,228      27,716   

Other expense, net

  (2,423   (458   (3,699   (1,342

Interest expense

  (2,080   (434   (4,656   (1,646
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) income before income tax

  (32,894   (23,069   17,873      24,728   

Benefit from (provision for) income tax

  6,074      3,188      (5,876   (2,640
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income

  (26,820   (19,881   11,997      22,088   

Net loss attributable to noncontrolling interest

  (39   —        (97   —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income attributable to EnerNOC, Inc.

($ 26,781 ($ 19,881 $ 12,094    $ 22,088   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income per common share attributable to EnerNOC, Inc.

Basic

($ 0.98 ($ 0.71 $ 0.43    $ 0.80   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

($ 0.98 ($ 0.71 $ 0.42    $ 0.76   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of common shares used in computing net (loss) income per share attributable to EnerNOC, Inc.

Basic

  27,406,087      27,832,793      27,857,026      27,774,778   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

  27,406,087      27,832,793      28,790,665      29,045,066   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

1  The Company has reclassified certain amounts in its condensed consolidated statements of operations for the three and twelve month periods ended December 31, 2013, to conform to the 2014 presentation. The reclassifications made related to the presentation of the Company’s revenues from DemandSMART revenues and EfficiencySMART, SupplySMART and other revenues to revenues from grid operators, revenues from utilities, and revenues from enterprise customers and was done in order to provide the users of its consolidated financial statements with additional insight into how the Company and its management views and evaluates its revenues and related growth. This reclassification within the condensed consolidated statements of operations for the three and twelve month periods ended December 31, 2013 had no impact on previously reported total consolidated revenues or consolidated results of operations.


EnerNOC, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except par value and share data)

(unaudited)

 

     December 31, 2014     December 31, 2013  
ASSETS             

Current assets:

    

Cash and cash equivalents

   $ 254,351      $ 149,189   

Trade accounts receivable, net

     40,875        35,933   

Unbilled revenue

     97,512        66,675   

Capitalized incremental direct customer contract costs

     7,633        9,509   

Prepaid expenses, deposits and other current assets

     19,950        9,377   
  

 

 

   

 

 

 

Total current assets

  420,321      270,683   

Property and equipment, net

  50,458      47,419   

Goodwill and intangible assets, net

  146,050      94,290   

Capitalized incremental direct customer contract costs, long-term

  982      1,995   

Deposits and other assets

  6,891      1,568   
  

 

 

   

 

 

 

Total assets

$ 624,702    $ 415,955   
  

 

 

   

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY             

Current liabilities:

    

Accounts payable

   $ 9,250      $ 2,031   

Accrued capacity payments

     92,332        76,676   

Accrued payroll and related expenses

     18,446        13,370   

Accrued expenses and other current liabilities

     28,724        12,386   

Deferred revenue

     13,738        20,625   
  

 

 

   

 

 

 

Total current liabilities

  162,490      125,088   

Deferred tax liability

  16,449      6,211   

Deferred revenue, long-term

  5,816      6,819   

Other liabilities

  8,919      8,342   

Convertible senior notes, net

  138,908      —     
  

 

 

   

 

 

 

Total long-term liabilities

  170,092      21,372   

Stockholders’ equity:

Common stock, $0.001 par value; 50,000,000 shares authorized, 29,833,578 and 29,920,807 shares issued and outstanding at December 31, 2014 and December 31, 2013, respectively

  30      30   

Additional paid-in capital

  365,855      353,354   

Accumulated other comprehensive loss

  (4,752   (2,535

Accumulated deficit

  (69,260   (81,354
  

 

 

   

 

 

 

Total EnerNOC, Inc. stockholders’ equity

  291,873      269,495   

Noncontrolling interest

  247      —     
  

 

 

   

 

 

 

Total stockholders’ equity

  292,120      269,495   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

$ 624,702    $ 415,955   
  

 

 

   

 

 

 


EnerNOC, Inc.

Condensed Consolidated Statements of Cash Flow Data

(in thousands)

(unaudited)

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2014     2013     2014     2013  

Cash provided by operating activities

   $ 30,727      $ 46,005      $ 60,439      $ 79,464   

Cash used in investing activities

     (20,962     (4,086     (74,422     (37,889

Cash (used in) provided by financing activities

     (240     (4,172     120,865        (6,804

Effects of exchange rate changes on cash and cash equivalents

     (1,389     212        (1,720     (623
  

 

 

   

 

 

   

 

 

   

 

 

 

Net change in cash and cash equivalents

  8,136      37,959      105,162      34,148   

Cash and cash equivalents at beginning of period

  246,215      111,230      149,189      115,041   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

$ 254,351    $ 149,189    $ 254,351    $ 149,189   
  

 

 

   

 

 

   

 

 

   

 

 

 


EnerNOC, Inc.

Statement on Use of Non-GAAP Financial Measures

To supplement the Company’s consolidated financial statements presented on a GAAP basis, the Company discloses certain non-GAAP measures that exclude certain amounts, including non-GAAP net (loss) income attributable to EnerNOC, Inc., non-GAAP net (loss) income per share attributable to EnerNOC, Inc., adjusted EBITDA and free cash flow. These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States.

The GAAP measure most comparable to non-GAAP net (loss) income attributable to EnerNOC, Inc. is GAAP net (loss) income attributable to EnerNOC, Inc.; the GAAP measure most comparable to non-GAAP net (loss) income per share attributable to EnerNOC, Inc. is GAAP net (loss) income per share attributable to EnerNOC, Inc.; the GAAP measure most comparable to adjusted EBITDA is GAAP net (loss) income attributable to EnerNOC, Inc.; and the GAAP measure most comparable to free cash flow is cash flows provided by (used in) operating activities. Reconciliations of each of these non-GAAP financial measures to the corresponding GAAP measures are included below.

Management uses these non-GAAP measures when evaluating the Company’s operating performance and for internal planning and forecasting purposes. Management believes that such measures help indicate underlying trends in the business, are important in comparing current results with prior period results, and are useful to investors and financial analysts in assessing the Company’s operating performance. For example, management considers non-GAAP net (loss) income attributable to EnerNOC, Inc. to be an important indicator of the overall performance because it eliminates the effects of events that are either not part of the Company’s core operations or are non-cash compensation expenses. In addition, management considers adjusted EBITDA to be an important indicator of the Company’s operational strength and performance of the business and a good measure of the Company’s historical operating trend. Moreover, management considers free cash flow to be an indicator of the Company’s operating trend and performance of the business.

The following is an explanation of the non-GAAP measures that management utilizes, including the adjustments that management excluded as part of the non-GAAP measures:

 

    Management defines non-GAAP net income (loss) attributable to EnerNOC, Inc. as net income (loss) attributable to EnerNOC, Inc. before accretion expense related to the debt-discount portion of interest expense associated with the convertible note issuance, stock-based compensation, and amortization expenses related to acquisition-related intangible assets, net of related tax effects.

 

    Management defines adjusted EBITDA as net income (loss) attributable to EnerNOC, Inc., excluding depreciation, amortization, stock-based compensation, direct and incremental expenses related to acquisitions or divestitures, interest, income taxes and other income (expense).

 

    Management defines free cash flow as net cash provided by (used in) operating activities, less capital expenditures, plus net cash provided by (used in) the sale of assets or disposals of components of an entity. Management defines capital expenditures as purchases of property and equipment, which includes capitalization of internal-use software development costs.

Non-GAAP net (loss) income attributable to EnerNOC, Inc., non-GAAP net (loss) income per share attributable to EnerNOC, Inc., adjusted EBITDA and free cash flow may have limitations as analytical tools. The non-GAAP financial information presented here should be considered in conjunction with, and not as a substitute for or superior to the financial information presented in accordance with GAAP and should not be considered measures of the Company’s liquidity. There are significant limitations associated with the use of non-GAAP financial measures. Further, these measures may differ from the non-GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare the Company’s performance to that of other companies.


EnerNOC, Inc.

Reconciliation Of Non-GAAP Measures To Nearest GAAP Measures

Reconciliation of Non-GAAP Net (Loss) Income Attributable to EnerNOC, Inc. And Net (Loss) Income Per Share Attributable to EnerNOC, Inc.

(in thousands, except share and per share data)

(Unaudited)

 

     Three Months Ended December 31,  
     2014     2013  

GAAP net loss attributable to EnerNOC, Inc.

   ($ 26,781   ($ 19,881

ADD: Stock-based compensation

     3,902        4,036   

ADD: Amortization expense of acquired intangible assets

     2,499        1,769   

ADD: Debt discount portion of convertible debt

     1,000        —     

ADD: Tax impact of items listed above

     1,062        —     
  

 

 

   

 

 

 

Non-GAAP net loss attributable to EnerNOC, Inc.

($ 18,318 ($ 14,076
  

 

 

   

 

 

 

GAAP net loss per diluted share attributable to EnerNOC, Inc.

($ 0.98 ($ 0.71

ADD: Stock-based compensation

  0.14      0.14   

ADD: Amortization expense of acquired intangible assets

  0.09      0.06   

ADD: Debt discount portion of convertible debt

  0.04      —     

ADD: Tax impact of items listed above

  0.04      —     
  

 

 

   

 

 

 

Non-GAAP net loss per diluted share attributable to EnerNOC, Inc.

($ 0.67 ($ 0.51
  

 

 

   

 

 

 
     Twelve Months Ended December 31,  
     2014     2013  

GAAP net income attributable to EnerNOC, Inc.

   $ 12,094      $ 22,088   

ADD: Stock-based compensation

     16,063        15,868   

ADD: Amortization expense of acquired intangible assets

     9,252        7,029   

ADD: Debt discount portion of convertible debt

     1,474        —     

ADD: Tax impact of items listed above

     (2,486     —     
  

 

 

   

 

 

 

Non-GAAP net income attributable to EnerNOC, Inc.

$ 36,397    $ 44,985   
  

 

 

   

 

 

 

GAAP net income per diluted share attributable to EnerNOC, Inc.

$ 0.42    $ 0.76   

ADD: Stock-based compensation

  0.56      0.55   

ADD: Amortization expense of acquired intangible assets

  0.32      0.24   

ADD: Debt discount portion of convertible debt

  0.05      —     

ADD: Tax impact of items listed above

  (0.09   —     
  

 

 

   

 

 

 

Non-GAAP net income per diluted share attributable to EnerNOC, Inc.

$ 1.26    $ 1.55   
  

 

 

   

 

 

 


EnerNOC, Inc.

Reconciliation of Adjusted EBITDA

(in thousands)

(unaudited)

 

     Three Months Ended December 31,     Twelve Months Ended December 31,  
     2014     2013     2014      2013  

Net (loss) income attributable to EnerNOC, Inc.

   ($ 26,781   ($ 19,881   $ 12,094       $ 22,088   

Add back:

         

Depreciation and amortization

     8,250        7,228        31,417         27,844   

Stock-based compensation expense

     3,902        4,036        16,063         15,868   

Direct and incremental expenses related to acquisitions or divestitures

     1,994        —          3,550         —     

Other expense (1)

     2,423        458        3,699         1,342   

Interest expense

     2,080        434        4,656         1,646   

(Benefit from) provision for income tax (2)

     (5,957     (3,188     4,891         2,640   
  

 

 

   

 

 

   

 

 

    

 

 

 

Adjusted EBITDA

($ 14,089 ($ 10,913 $ 76,370    $ 71,428   
  

 

 

   

 

 

   

 

 

    

 

 

 

 

(1) Other expense primarily relates to foreign exchange losses.
(2) Excludes discrete tax benefit of ($117) and discrete tax provision of $985 recorded during the three and twelve month periods ended December 31, 2014, respectively, related to the Company’s sale of various business components.

EnerNOC, Inc.

Reconciliation of Free Cash Flow

(in thousands)

(unaudited)

 

   
   
   
   
     Three Months Ended December 31,     Twelve Months Ended December 31,  
     2014     2013     2014     2013  

Net cash provided by operating activities

   $ 30,727      $ 46,005      $ 60,439      $ 79,464   

Add: Net cash provided by the sale of assets or disposals of components of an entity

     1,600        —          8,046        —     

Subtract: Purchases of property and equipment

     (6,305     (3,738     (25,553     (36,663
  

 

 

   

 

 

   

 

 

   

 

 

 

Free cash flow

$ 26,022    $ 42,267    $ 42,932    $ 42,801   
  

 

 

   

 

 

   

 

 

   

 

 

 


Non-GAAP Financial Guidance

This press release also includes estimates of future adjusted EBITDA and net loss per diluted share attributable to EnerNOC, Inc. A reconciliation of these amounts to the nearest expected GAAP results, is presented below:

 

     Three Months Ended
March 31, 2015
    Twelve Months Ended
December 31, 2015
 
    

 

   

 

    Per Diluted Share    

 

   

 

    Per Diluted Share  
In Millions, Except Per Share Amounts    Low     High     Low     High     Low     High     Low     High  

Projected GAAP Net Loss

   ($ 48.5   ($ 46.5   ($ 1.73   ($ 1.66   ($ 92.0   ($ 89.0   ($ 3.23   ($ 3.12

Adjustments:

                

Stock-based compensation

   $ 4.4      $ 4.6      $ 0.15      $ 0.16      $ 17.5      $ 18.5      $ 0.62      $ 0.65   

Amortization expense of acquired intangible assets

   $ 5.1      $ 4.8      $ 0.18      $ 0.17      $ 20.0      $ 19.0      $ 0.70      $ 0.67   

Accretion expense related to the debt-discount portion of interest associated with convertible note issuance

   $ 1.0      $ 1.0      $ 0.04      $ 0.04      $ 4.1      $ 4.1      $ 0.14      $ 0.14   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Projected Non-GAAP Net Loss

($ 38.0 ($ 36.1 ($ 1.36 ($ 1.29 ($ 50.4 ($ 47.4 ($ 1.77 ($ 1.66

Adjustments:

Depreciation

$ 6.0    $ 6.1    $ 25.5    $ 26.5   

Direct and incremental expenses related to acquisitions or divestiture

$ 0.0    $ 0.0    $ 0.0    $ 0.0   

Interest and other expense, net1

$ 3.0    $ 3.0    $ 6.9    $ 6.9   

Provision for income taxes

$ 0.5    $ 0.5    $ 4.0    $ 4.0   
  

 

 

   

 

 

       

 

 

   

 

 

     

Adjusted EBITDA

($ 28.5 ($ 26.5 ($ 14.0 ($ 10.0
  

 

 

   

 

 

       

 

 

   

 

 

     

Weighted Average Number of Common Shares Outstanding-Diluted

  28.0      28.0      28.5      28.5   
  

 

 

   

 

 

       

 

 

   

 

 

     

 

1  “Interest and other expense, net” is net of “Accretion expense related to the debt-discount portion of interest associated with convertible note issuance”.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings