EnerNOC, Inc.
Feb 27, 2012

EnerNOC Reports Fourth Quarter and Full Year 2011 Financial Results

BOSTON, MA -- (MARKET WIRE) -- 02/27/12 -- EnerNOC, Inc. (NASDAQ: ENOC), a leading provider of energy management applications, services and products, today announced financial results for the fourth quarter and year ended December 31, 2011.

"We achieved many objectives in 2011 that have strengthened our ability to serve the needs of our customers, bolstered our long-term growth objectives, and increased our operational efficiency. We added more megawatts to our portfolio, signed more utility deals, and responded to more dispatches than any prior year, while strengthening and entering new international markets with some of the most attractive capacity pricing in our portfolio," commented Tim Healy, EnerNOC's Chairman and Chief Executive Officer. "Though recent regulatory developments have been time-consuming and challenging, the global market opportunity for EnerNOC's robust suite of energy management solutions continues to expand."

Revenues for the fourth quarter of 2011 were $26.8 million, compared to $22.7 million for the same period in 2010, an increase of $4.1 million, or 18%. Revenues for the year ended December 31, 2011 were $286.6 million, compared to $280.2 million for the year ended December 31, 2010, an increase of $6.4 million, or 2%.

Gross profit for the fourth quarter of 2011 was $5.6 million, or 21% of revenue during that period, compared to $4.0 million, or 18% of revenue, for the fourth quarter of 2010. Gross profit for the year ended December 31, 2011 was $123.4 million, or 43% of revenue during that period, compared to $120.3 million, or 43% of revenue, for the year ended December 31, 2010.

GAAP net loss for the fourth quarter of 2011 was $28.0 million, or $1.08 per basic and diluted share, compared to GAAP net loss for the fourth quarter of 2010 of $21.2 million, or $0.86 per basic and diluted share. GAAP net loss for the year ended December 31, 2011 was $13.4 million, or $0.52 per basic and diluted share, compared to GAAP net income for the year ended December 31, 2010 of $9.6 million, or $0.37 per diluted share.

Non-GAAP net loss* for the fourth quarter of 2011 was $23.7 million, or $0.91 per basic and diluted share, compared to non-GAAP net loss for the fourth quarter of 2010 of $17.1 million, or $0.69 per basic and diluted share. Non-GAAP net income for the year ended December 31, 2011 was $5.9 million, or $0.22 per diluted share, compared to non-GAAP net income for the year ended December 31, 2010 of $25.4 million, or $0.97 per diluted share.

Adjusted EBITDA* for the fourth quarter of 2011 was negative $20.9 million, compared to negative $14.9 million in the fourth quarter of 2010. Adjusted EBITDA for the year ended December 31, 2011 was $26.0 million, compared to $42.8 million for the year ended December 31, 2010.

Cash flow from operating activities for the year ended December 31, 2011 was $27.6 million, or 10% of revenue during that period, compared to $45.1 million, or 16% of revenue for the year ended December 31, 2010. The Company generated $10.0 million of free cash flow* for the year ended December 31, 2011, compared to $ 25.8 million for the year ended December 31, 2010. As of December 31, 2011, the Company had cash and cash equivalents totaling $87.3 million, a decrease of $66.1 million from cash and cash equivalents as of December 31, 2010.

(*Please refer to the section below titled "Use of Non-GAAP Financial Measures" for non-GAAP definitions and the financial schedules attached to this press release for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.)

Other Fourth Quarter and Recent Highlights

Financial Outlook

The Company currently expects to deliver the following financial results for the quarter ending March 31, 2012 and the years ending December 31, 2012 and December 31, 2013. The following financial outlook information takes into consideration the February 2012 FERC ruling discussed above:

First Quarter 2012: The Company expects first quarter revenue to be in the range of $22 million to $30 million. First quarter GAAP net loss is expected to be in the range of $0.96 to $1.16 per basic and diluted share. These estimates are based on basic and diluted weighted average shares outstanding of 26.1 million shares.

Full Year 2012: The Company expects full year 2012 revenue to be in the range of $240 million to $280 million. GAAP net loss is expected to be in the range of $1.00 to $1.60 per basic and diluted share. These estimates are based on basic and diluted weighted average shares outstanding of 26.3 million shares. Full year 2012 Adjusted EBITDA is expected to be between $0 and $20 million, with estimated stock-based compensation expense of $14.5 million, estimated amortization of acquisition related intangibles expense of $7.2 million, estimated depreciation expense between $18 million and $20 million, estimated $0 to $2 million in interest and other expense, net, and an estimated provision for income taxes of $2.6 million.

Full Year 2013: The Company expects full year 2013 revenue to be in the range of $350 million to $400 million. GAAP net income (loss) is expected to be in the range of (i) a net loss of $0.25 per basic and diluted share based on weighted average basic and diluted shares outstanding of 26.7 million shares to (ii) a net income of $0.50 per diluted share based on weighted average diluted shares outstanding of 27.5 million shares. Full year 2013 Adjusted EBITDA is expected to be between $35 million and $60 million, with estimated stock-based compensation expense between $12 million and $16 million, estimated amortization of acquisition-related intangibles expense between $6 million and $8 million, estimated depreciation expense between $20 million and $24 million, estimated $0 to $2 million in interest and other expense, net, and an estimated provision for income taxes between $3 million and $5 million.

These statements are forward-looking and actual results may differ materially. These statements are based on information available as of February 27, 2012, and the Company assumes no obligation to publicly update or revise its financial outlook. Investors are reminded that actual results may differ from these estimates for the reasons described below and in the Company's filings with the Securities and Exchange Commission.

Webcast Reminder

The Company will host a conference call today, February 27, 2012 at 5:00 p.m., Eastern Time, to discuss the Company's fourth quarter and full year 2011 operating results, as well as other forward-looking information about the Company's business. Domestic callers may access the earnings conference call by dialing 877-837-3911 (International callers, dial 973-796-5063). Investors and other interested parties may also go to the "Investors" section of EnerNOC's website at http://investor.enernoc.com/webcasts.cfm for a live webcast of the conference call. Please access the website at least 15 minutes prior to the call to register, download, and install any necessary audio software. A replay of the conference call will be available on the Company's website noted above or by phone (Domestic: dial 855-859-2056 and enter the pass code 55271642, International: dial 404-537-3406 and enter the pass code 55271642) until March 2, 2012 and the webcast will be archived on EnerNOC's website for a period of three months.

About EnerNOC

EnerNOC unlocks the full value of energy management for our utility and commercial, institutional, and industrial (C&I) customers by reducing real-time demand for electricity, increasing energy efficiency, improving energy supply transparency in competitive markets, and mitigating emissions. We accomplish this by delivering world-class energy management applications including DemandSMART™, comprehensive demand response; EfficiencySMART™, data-driven energy efficiency; SupplySMART™, energy price and risk management; and CarbonSMART™, enterprise carbon management. Our Network Operations Center (NOC) continuously supports these applications across thousands of C&I customer sites throughout the world. Working with more than 100 utilities and grid operators globally, we deliver energy, ancillary services, and carbon mitigation resources that provide cost-effective alternatives to investments in traditional power generation, transmission, and distribution. For more information, visit www.enernoc.com.

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, the global market opportunity for the Company's energy management applications, services and products, and the future growth and success of the Company's energy management applications, services and products in general, 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.

Use of Non-GAAP Financial Measures

To supplement the financial measures presented in EnerNOC's press release and related conference call or webcast in accordance with accounting principles generally accepted in the United States ("GAAP"), EnerNOC also presents non-GAAP financial measures relating to non-GAAP net income or loss, non-GAAP net income or loss per share, adjusted EBITDA, and free cash flow.

A "non-GAAP financial measure" refers to a numerical measure of the Company's historical or future financial performance, financial position, or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the Company's financial statements. EnerNOC provides the non-GAAP measures listed above as additional information relating to EnerNOC's operating results as a complement to results provided in accordance with GAAP. 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.

The non-GAAP measures used in this press release and related conference call or webcast differ from GAAP in that they exclude expenses related to stock-based compensation, amortization expense related to acquisition-related intangible assets, as well as in certain measures, the related impact of these adjustments on the provision for income taxes. In addition, investors should note the following:

EnerNOC's management uses these non-GAAP measures when evaluating the Company's operating performance and for internal planning and forecasting purposes. EnerNOC's management believes that such measures help indicate underlying trends in the Company's 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, EnerNOC's management considers non-GAAP net income or loss to be an important indicator of the overall performance of the Company because it eliminates certain of the more significant effects of its acquisitions and related activities and non-cash compensation expenses. In addition, EnerNOC's management considers adjusted EBITDA to be an important indicator of the Company's operational strength and performance of its business and a good measure of the Company's historical operating trend. Moreover, EnerNOC's management considers free cash flow to be an indicator of the Company's operating trend and performance of its business.






                               EnerNOC, Inc.

                       SELECTED FINANCIAL INFORMATION

            (in thousands, except for share and per share data)





                   Consolidated Statements of Operations

                                (Unaudited)



                            Three Months Ended            Year Ended

                               December 31,              December 31,

                         ------------------------  ------------------------

                             2011         2010         2011         2010

                         -----------  -----------  -----------  -----------



Revenues                 $    26,759  $    22,690  $   286,608  $   280,157

Cost of revenues              21,132       18,668      163,211      159,832

                         -----------  -----------  -----------  -----------

  Gross profit                 5,627        4,022      123,397      120,325



Operating expenses:

  Selling and marketing       12,109       10,897       51,907       44,029

  General and

   administrative             18,601       13,828       66,773       54,983

  Research and

   development                 4,362        2,349       14,254       10,097

                         -----------  -----------  -----------  -----------

    Total operating

     expenses                 35,072       27,074      132,934      109,109

                         -----------  -----------  -----------  -----------

(Loss) income from

 operations                  (29,445)     (23,052)      (9,537)      11,216

Other income (expense)         1,498         (116)        (987)         (85)

Interest expense                (255)         (32)      (1,053)        (718)

                         -----------  -----------  -----------  -----------

    (Loss) income before

     income tax              (28,202)     (23,200)     (11,577)      10,413

Benefit from (provision

 for) income tax                 186        2,033       (1,806)        (836)

                         -----------  -----------  -----------  -----------

    Net (loss) income    $   (28,016) $   (21,167) $   (13,383) $     9,577

                         ===========  ===========  ===========  ===========



(Loss) earnings per

 share:

  Basic                  $     (1.08) $     (0.86) $     (0.52) $      0.39

                         ===========  ===========  ===========  ===========

  Diluted                $     (1.08) $     (0.86) $     (0.52) $      0.37

                         ===========  ===========  ===========  ===========



Weighted average number

 of common shares

 outstanding

  Basic                   26,001,088   24,688,865   25,799,494   24,611,729

                         ===========  ===========  ===========  ===========

  Diluted                 26,001,088   24,688,865   25,799,494   26,054,162

                         ===========  ===========  ===========  ===========






                               EnerNOC, Inc.

                        CONSOLIDATED BALANCE SHEETS

                     (in thousands, except share data)



                                                       December 31,

                                               ----------------------------

                                                    2011           2010

                                               -------------  -------------

Assets

Current assets

  Cash and cash equivalents                    $      87,297  $     153,416

  Restricted cash                                        158          1,537

  Trade accounts receivable, net of allowance

   for doubtful accounts of $192 and $150 at

   December 31, 2011 and 2010, respectively           24,525         22,137

  Unbilled revenue                                    64,448         73,144

  Prepaid expenses, deposits and other current

   assets                                             26,723          6,707

                                               -------------  -------------

    Total current assets                             203,151        256,941

  Property and equipment, net of accumulated

   depreciation of $51,400 and $36,309 at

   December 31, 2011 and 2010, respectively           36,636         34,690

  Goodwill                                            79,213         24,653

  Customer relationship intangible assets, net

   of accumulated amortization of $5,286 and

   $1,016 at December 31, 2011 and 2010,

   respectively                                       26,993          2,494

  Other definite-lived intangible assets, net

   of accumulated amortization of $3,591 and

   $2,095 at December 31, 2011 and 2010,

   respectively                                        5,524          3,329

  Indefinite-lived intangible assets                       -            920

  Deposits and other assets                            4,291          2,872

                                               -------------  -------------

    Total assets                               $     355,808  $     325,899

                                               =============  =============

Liabilities and Stockholders' Equity

Current liabilities

  Accounts payable                             $       2,335  $         111

  Accrued capacity payments                           58,332         65,792

  Accrued payroll and related expenses                11,937         11,135

  Accrued expenses and other current

   liabilities                                         6,107          9,307

  Accrued performance adjustments                      6,045              -

  Accrued acquisition contingent consideration             -          1,500

  Deferred revenue                                    12,556          5,540

  Current portion of long-term debt                        -             37

                                               -------------  -------------

    Total current liabilities                         97,312         93,422

Long-term liabilities

  Deferred acquisition consideration                     500              -

  Accrued acquisition contingent

   consideration, long term                              336              -

  Deferred tax liability                               2,646          1,141

  Deferred revenue, long-term                          6,810          4,696

  Other liabilities                                      464            514

                                               -------------  -------------

    Total long-term liabilities                       10,756          6,351

Stockholders' equity

  Undesignated preferred stock, $0.001 par

   value; 5,000,000 shares

Common stock, $0.001 par value; 50,000,000

 shares authorized, 27,306,548 and 25,155,067

 shares issued and outstanding at December 31,

 2011 and 2010, respectively                              27             25

Additional paid-in capital                           329,817        293,942

Accumulated other comprehensive loss                    (955)           (75)

Accumulated deficit                                  (81,149)       (67,766)

                                               -------------  -------------

    Total stockholders' equity                       247,740        226,126

                                               -------------  -------------

    Total liabilities and stockholders' equity $     355,808  $     325,899

                                               =============  =============




                                EnerNOC, Inc.

                            Cash Flow Information

                                (in thousands)

                                 (Unaudited)



                                                   Year Ended December 31,

                                                  -------------------------

                                                      2011          2010

                                                  -----------   -----------



Cash provided by operating activities             $    27,637   $    45,148

Cash used in investing activities                     (95,516)      (15,424)

Cash provided by financing activities                   1,997         3,974

Effects of exchange rate changes on cash                 (237)          (21)

                                                  -----------   -----------

Net change in cash and cash equivalents           $   (66,119)  $    33,677

                                                  ===========   ===========




                               EnerNOC, Inc.

                 NON-GAAP FINANCIAL MEASURES RECONCILIATION

                   (in thousands, except per share data)

                                (Unaudited)



                            Three Months Ended            Year Ended

                               December 31,              December 31,

                         ------------------------  ------------------------

                             2011         2010         2011         2010

                         -----------  -----------  -----------  -----------



GAAP Net (loss) income   $   (28,016) $   (21,167) $   (13,383) $     9,577

  ADD: Stock-based

   compensation                2,976        4,074       13,464       15,742

  ADD: Amortization

   expense of acquired

   intangible assets           1,323          343        5,856        1,452

  LESS: Income tax

   effect of Non-GAAP

   adjustments (1)                 -         (387)           -       (1,380)

                         -----------  -----------  -----------  -----------

Non-GAAP Net (loss)

 income                  $   (23,717) $   (17,137) $     5,937  $    25,391

                         ===========  ===========  ===========  ===========



GAAP Net (loss) earnings

 per basic share         $     (1.08) $     (0.86) $     (0.52) $      0.39

  ADD: Stock-based

   compensation                 0.12         0.17         0.52         0.64

  ADD: Amortization

   expense of acquired

   intangible assets            0.05         0.01         0.23         0.06

  LESS: Income tax

   effect of Non-GAAP

   adjustments (1)                 -        (0.01)           -        (0.06)

                         -----------  -----------  -----------  -----------

Non-GAAP Net (loss)

 income per basic share  $     (0.91) $     (0.69) $      0.23  $      1.03

                         ===========  ===========  ===========  ===========



GAAP Net (loss) earnings

 per diluted share       $     (1.08) $     (0.86) $     (0.52) $      0.37

  ADD: Stock-based

   compensation                 0.12         0.17         0.52         0.60

  ADD: Amortization

   expense of acquired

   intangible assets            0.05         0.01         0.23         0.05

  LESS: Income tax

   effect of Non-GAAP

   adjustments (1)                 -        (0.01)           -        (0.05)

  LESS: Dilutive impact

   on weighted average

   common stock

   equivalents                     -            -        (0.01)           -

                         -----------  -----------  -----------  -----------

Non-GAAP Net (loss)

 income per diluted

 share                   $     (0.91) $     (0.69) $      0.22  $      0.97

                         ===========  ===========  ===========  ===========



Weighted average number

 of common shares

 outstanding

  Basic                   26,001,088   24,688,865   25,799,494   24,611,729

  Diluted                 26,001,088   24,688,865   26,766,359   26,054,162



(1) Represents the increase in the income tax provision recorded for the

 three months and year ended December 31, 2010 based on our effective rate

 for the three months and year ended December 31, 2010, respectively.




                                EnerNOC, Inc.

                      RECONCILIATION OF ADJUSTED EBITDA

                                 (Unaudited)



                                Three Months Ended          Year Ended

                                   December 31,            December 31,

                              ----------------------  ----------------------

                                 2011        2010        2011        2010

                              ----------  ----------  ----------  ----------



Net (loss) income             $  (28,016) $  (21,167) $  (13,383) $    9,577

Add back:

  Depreciation and

   amortization expense            5,534       4,073      22,043      15,866

  Stock-based compensation

   expense                         2,976       4,074      13,464      15,742

  Other (income) expense          (1,498)        116         987          85

  Interest expense                   255          32       1,053         718

  (Benefit from) provision

   for income tax                   (186)     (2,033)      1,806         836

                              ----------  ----------  ----------  ----------

Adjusted EBITDA               $  (20,935) $  (14,905) $   25,970  $   42,824

                              ==========  ==========  ==========  ==========




                               EnerNOC, Inc.

                      RECONCILIATION OF FREE CASH FLOW

                                (Unaudited)



                                                           Year Ended

                                                          December 31,

                                                    -----------------------

                                                       2011         2010

                                                    ----------   ----------



Net cash provided by operating activities           $   27,637   $   45,148

Subtract:

  Purchases of property and equipment                  (17,613)     (19,394)

                                                    ----------   ----------

Free cash flow                                      $   10,024   $   25,754

                                                    ==========   ==========



Add to Digg Bookmark with del.icio.us Add to Newsvine

Contact:

Sarah McAuley

(617) 532.8195

news@enernoc.com

or ir@enernoc.com



Source: EnerNOC, Inc.

News Provided by Acquire Media