Revolution Lighting Technologies Reports Second Quarter 2015 Financial Results
- Reported Revenues of $27.2M for Q2 2015
- Gross Margin of 33% with Adjusted EBITDA of $1.1M
- Maintains 2015 Revenue Guidance of $125M expected representing 60% growth, excluding recent acquisition
- 2015 Adjusted EBITDA Margin expected to be in 10% to 12% range
STAMFORD, Conn.-- Revolution Lighting Technologies, Inc. (NASDAQ:RVLT) (“Revolution Lighting”), a leading provider of advanced LED lighting solutions, today announced financial results for the second quarter of 2015, ended June 30, 2015. Reported revenues were $27.2 million as compared to $17.5 million in the same period for 2014, an increase of 56 percent with Proforma organic growth of approximately 30 percent contributing to the increase.
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“We are seeing an increasingly strong demand for LED lighting solutions in new build and retrofit projects from companies and organizations across industries. Entities are beginning to recognize the energy and cost savings of LED lighting solutions. The company continues to benefit from the synergies across our brands as we see positive momentum in our businesses, said Robert V. LaPenta, chairman, CEO and president, Revolution Lighting Technologies. “Our continued investment in the company – developing innovative, quality products, building a solid management team and growing a robust sales network – is driving strong revenues and positioning us well for long-term growth and profitability.”
“We’re excited about the recent acquisition of Energy Source, as they share our strategic vision and will strengthen our existing relationships while expanding RVLT’s superior product line in key markets. We expect the acquisition of Energy Source to add $15 million of revenue in the second half of 2015 resulting in the second half of 2015 revenue of approximately $90 million for the company,” said LaPenta.
The US Department of Energy, (DOE) recently updated its report, adoption of LEDs in common lighting applications, and found that commercial LED lighting applications including linear fixtures and high/low-bay fixtures hold the greatest overnight potential for energy savings, accounting for 60 percent of the total for all LED products. RVLT continues to be well positioned as its market leading tubes continue to be a significant driver of the lighting retrofit market and new building projects for our customers. “When comparing Q2 year over year, RVLT LED content in multi-family and mixed-used development has roughly doubled from approximately 20 percent in 2014 to approximately 40 percent. It’s an exciting time to be in this industry as LED adoption will continue to accelerate,” continued LaPenta.
Recent Business Highlights
- On August 5th, the Company purchased Energy Source, LLC, a provider of turnkey energy savings solutions within the commercial, industrial, hospitality, retail, education and municipal sectors.
- Revolution Lighting Technologies rolled out more than 15 new products including ecovista™ G2, an LED lighting solution for billboard sign displays and a community-friendly technology for Dark Skies initiatives.
- RVLT’s all-plastic G3 LED tube lamps were certified by NSF International for installation in food-processing areas. The certification recognizes that its 15-watt and 18-watt tube lamps comply with NSF/ANSI 2 and all applicable requirements and are authorized to bear the NSF mark. In addition, the tube lamps were evaluated to comply with the NSF supplemental requirements for marine food equipment.
- As previously announced RVLT’s G3 LED Mil Spec tube lamps have been certified by Washington Labs, positioning the product for inclusion in upcoming navy ship opportunities.
- The Company’s subsidiary, Value Lighting, has seen LED opportunities in its multi-family market increase from 20 percent to approximately 40 percent over the previous year.
- RVLT was selected to retrofit the corporate campus of one of the largest banks in America.
- The Company’s business pipeline is robust at over $200 million of potential opportunities over the next twelve months.
Quarter Ended June 30, 2015
For the quarter ended June 30, 2015, total revenues were $27.2 million, compared to $17.5 million in Q2 2014, an increase of 56%. Gross profit for the quarter was $9.1 million representing a $3.5 million increase over 2014. Gross margin for the quarter was 33% as compared to 32% in Q2 2014.
Adjusted EBITDA (as defined below) for the three months ended June 30, 2015 was approximately $1.1 million compared to Adjusted EBITDA of negative $1.2 million for the comparable period in 2014. The Company reported an operating loss of $1.1 million in the three months ended June 30, 2015 as compared to $3.2 million operating loss in the same period of 2014. Operating results for the current quarter were negatively impacted by non-operating costs, one-time and non-cash charges of $2.2 million, including expenses related to acquisitions, severance and transition costs, and amortization of intangible assets related to acquisitions and stock-based compensation, compared to a corresponding amount of $2.0 million in 2014.
The Company reported a net loss for the three months ended June 30, 2015 of approximately $1.5 million as compared to net income of $2.4 million for the same period in 2014. The net loss for 2015 included the aforementioned charges and interest expense and other bank charges of $0.4 million. The net income for 2014 included a non-recurring tax benefit of $6.0 million and interest expense and other bank charges of $0.4 million.
Basic and diluted (loss) income per share attributed to common stockholders was $(0.01) and $0.01, respectively, for the quarters ended June 30, 2015 and 2014, reflecting the aforementioned.
Six months ended June 30, 2015
For the six months ended June 30, 2015, total revenue was approximately $47.6 million, as compared to $22.5 million in the same period of 2014, an increase of approximately 112%. Gross profit for the period was approximately $16.2 million, as compared to $7.2 million during the same period in 2014. Gross margin was 34% as compared to gross margin of 32% for the same period in 2014.
Adjusted EBITDA for the six months ended June 30, 2015 was approximately $1.1 million compared to Adjusted EBITDA of negative $3.5 million for the comparable period in 2014. The Company reported an operating loss of $3.0 million in the six months ended June 30, 2015 as compared to an operating loss of $6.6 million in the same period of 2014. Operating results for the recent period were negatively impacted by non-operating costs, one-time and non-cash charges of $4.0 million, including expenses related to acquisitions, severance and transition costs, and amortization of intangible assets related to acquisitions and stock-based compensation, compared to a corresponding amount of $3.2 million in 2014.
The Company reported a net loss for the six months ended June 30, 2015 of approximately $3.5 million as compared to a loss of $1.2 million for the same period in 2014. The net loss for 2015 included the aforementioned charges and interest expense and other bank charges of $0.6 million. The net loss for 2014 included a non-recurring tax benefit of $6.0 million and interest expense and other bank charges of $0.5 million.
Basic and diluted loss per share attributable to common shareholders was $0.03 and $0.03, respectively, for the six months ended June 30, 2015 and 2014.
The Company had a cash balance of $0.5 million and working capital of $28.0 million as of June 30, 2015.
The Company will be able to access its revolving credit facility based on eligible levels of accounts receivable and inventory and subject to certain restrictive covenants.
The Company expects 2015 revenue of $125 million, excluding acquisitions, with gross profit margin of 35% and Adjusted EBITDA in the 10-12% range with proforma organic growth of over 35%. The acquisition of Energy Source is expected to add $15 million of revenue in the second half of 2015.
Further information on Revolution Lighting Technologies’ quarterly and annual results can be found in the Company’s Form 10-Q for the quarter ended June 30, 2015 filed with the U.S. Securities and Exchange Commission (SEC) and may be accessed on the SEC’s website at www.sec.gov.
Q2 Conference Call
Revolution Lighting will host a conference call and live webcast to discuss second quarter financial results at 11:00 a.m. ET today, August 6, 2015. To access the conference call by phone, dial 1-888-364-3108 for the U.S. or Canada and 1-719-325-2402 for international callers with conference ID #8338579. The webcast will be available live on the Investor Relations section of the Company's website at http://ir.rvlti.com/.
An audio replay of the call will also be available to investors by phone beginning at approximately 2:00 pm ET on August 6, 2015 until 11:59 p.m. ET on August 20, 2015 by dialing 1-877-870-5176 within the U.S. or Canada or 1-858-384-5517 for international callers and entering passcode #8338579. In addition, an archived audio webcast will be available on the Investors Relations section of RVLT’s website at http://ir.rvlti.com/.
About Revolution Lighting Technologies Inc.
Revolution Lighting Technologies, Inc. (NASDAQ:RVLT) is a leading LED lighting solutions company. The company designs, manufactures, markets and sells energy-efficient LED and conventional solutions with a strong presence in the industrial, commercial, education, and government markets in the United States, Canada, and around the world. Founded in 1991, Revolution Lighting has created an innovative, multi-brand lighting company that offers a comprehensive advanced product platform of high-quality indoor and outdoor LED lamps and LED and conventional fixtures.
Revolution Lighting Technologies markets and distributes its products through a network of independent sales representatives and distributors, as well as through energy savings companies, national accounts and its wholly owned subsidiary, Value Lighting, a leading supplier of lighting solutions to the multifamily residential housing sector and new construction marketplace across the U.S. Other brands within our RVLT family include Lumificient, which supplies LED illumination for the signage industry; and Sentinel, a revolutionary patented and licensed monitoring and smart grid control system for outdoor lighting applications. RVLT has been named one of Deloitte’s Technology Fast 500™ companies, a ranking of the 500 fastest growing technology, media, telecommunications, life sciences and clean technology companies in North America. For additional information visit: www.rvlti.com.
Cautionary Statement for Forward-Looking Statements
Certain of the above statements contained in this press release are forward-looking statements that involve a number of risks and uncertainties, including statements relating to our business pipeline and sales opportunities, our revenue, Adjusted EBITDA and cash flow outlook. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Reference is made to Revolution Lighting’s filings under the Securities Exchange Act for additional factors that could cause actual results to differ materially, including our history of losses, customer concentration risks, the potential for future dilution to our existing common stockholders, our status as a controlled company, the risk that demand for our LED products fails to emerge as anticipated, the availability of financing for our customers, competition from larger companies, and risks relating to third party suppliers and manufacturers, as well as the other Risk Factors described in Item 1A of our Form 10-K for the fiscal year ended December 31, 2014. Revolution Lighting Technologies, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Readers are cautioned not to place undue reliance on these forward-looking statements.
We use Adjusted EBITDA as a non-GAAP measure of financial performance. Adjusted EBITDA is calculated by adding back to net income or loss interest and financing related costs, acquisition related charges, severance and transition costs, income taxes, depreciation and amortization, long lived asset impairments and stock based compensation charges. Adjusted EBITDA is provided to investors to supplement the results of operations reported in accordance with GAAP. Management believes that Adjusted EBITDA is useful to help investors analyze the operating trends in the business and to assess the relative underlying performance of businesses with different capital and tax structures. Management believes that Adjusted EBITDA provides an additional tool for investors to use in comparing our financial results with other companies that use Adjusted EBITDA in their communications with investors. By excluding non-cash charges such as amortization and depreciation, stock based compensation, long lived asset impairments as well as charges for income taxes, interest and financing charges, acquisition related and severance and transition costs, investors can evaluate our operations and compare our results with the results of other companies on a more consistent basis. Management also uses Adjusted EBITDA to evaluate potential acquisitions, establish internal budgets and goals and evaluate the performance of business units and management.
We consider Adjusted EBITDA to be an important indicator of our operational strength and performance and a useful measure of historical and prospective trends. However there are significant limitations of the use of Adjusted EBITDA since it excludes interest income and expense, financing related and acquisition related charges, severance and transition costs, stock based compensation and income taxes, all of which impact profitability, as well as depreciation and amortization and impairments, related to the use of long lived assets that benefit future periods. We believe that these limitations are compensated by providing Adjusted EBITDA only with GAAP performance measures and clearly identifying the differences between the two measures. Consequently, Adjusted EBITDA should not be considered in isolation or as a substitute for net income or loss or operating income or loss presented in accordance with GAAP. Moreover, Adjusted EBITDA as defined by the Company may not be comparable to similarly titled measure provided by other entities.
A reconciliation of our GAAP net (loss) income to non-GAAP Adjusted EBITDA for the three and six months ended June 30, 2015 and June 30, 2014 respectively follows:
|(in millions)||(in millions)|
|Three Months Ended||Six Months Ended|
|June 30,||June 30,||June 30,||June 30,|
|Net (loss) income||$||(1.5||)||$||2.4||$||(3.5||)||$||(1.2||)|
|Acquisition, severance and transition||0.5||0.3||0.7||0.7|
|Depreciation and amortization||1.1||1.5||2.2||2.1|
|Interest expense and other bank charges||0.4||0.4||0.6||0.5|
Deferred income tax benefit
Amato and Partners, LLC for Revolution Lighting Technologies, Inc.
Investor Relations Counsel
Gerald Amato, 212-430-0361
Source: Revolution Lighting Technologies, Inc.
Released August 6, 2015