SOURCE: GreenHouse Holdings, Inc.

March 31, 2011 16:13 ET

GreenHouse Holdings Announces 2010 Year End Revenue Increase of 50%

2010 Pro-Forma Revenues of $9.8 Million With Life Protection, Inc.

SAN DIEGO, CA--(Marketwire - March 31, 2011) - GreenHouse Holdings, Inc. (OTCBB: GRHU) ("GreenHouse"), a San Diego, California-based integrated energy solutions provider and developer of eco-friendly infrastructure, announced record revenue results for the 2010 Fiscal Year and is providing a shareholder update.

"During 2010, our first year as a public corporation, the company signed several high margin contracts in both its Governmental division and Commercial Automated Demand Response (ADR) division," stated John Galt, CEO of GreenHouse Holdings. "Our relationship with Southern California Edison and recent partnership with EnergyConnect, Inc. continue to expand our market presence within the commercial market, while the newly integrated acquisition, Life Protection, Inc. ("LPI") brought in over $600,000 in revenue from the government in less than 3 full months of operation. Management believes these divisions will continue to drive top line growth in 2011. We have also implemented significant cost saving methods in our Residential division that has allowed us to reduce overhead and expenses."

Mr. Galt continued, "Additionally, we expect our government business to aggressively ramp up in 2011 as we leverage our strong relationships with high ranking government officials, the U.S. Military, and United States Navy regarding our Anti Terrorism Tactical Training, and our Rapidly Deployable Ultra Light Units. Going forward, we intend to increase revenue growth and improve margins as we enter previously untapped markets in Southeastern U.S., Dominican Republic, Iraq, Afghanistan, and Pakistan. We believe these exciting opportunities, coupled with our rapidly growing pipeline of potential contracts, position us to become a market leader within the energy efficiency and sustainable facilities solution market."

Recent Operational Highlights

  • Ten Mexican Tequila distilleries have entered into agreements with GreenHouse, where GRHU will have access to approximately 600 tons of solid agave waste per day to convert to compost, which represents approximately 33% of the total agave waste from the area.
    • The agreements have the potential to generate over $8 million in annual revenues for GreenHouse.
  • Announced a partnership with EnergyConnect, Inc., a forerunner in the development of smart grid demand response services and technologies.
    • Together, the companies will offer customers integrated energy management and automated demand response (Auto-DR) services that offer participants the technical means to automatically reduce electricity consumption when signaled by the utility during costly peak energy periods when the demand is highest.
  • Executed a letter of intent with Hinds Community College to construct and manage a $2.9 million Anti-Terrorism Tactical Training Center in Jackson, Mississippi that would provide local law enforcement personnel with a state-of-the-art training and sustainable firing range facility and which would serve as a best practices model for such facilities in small cities and towns across the United States.
  • Entered into a strategic partnership agreement with Prime Solutions, Inc. ("PSI"), a leader in full-service engineering, consulting, and project management for governmental, commercial, industrial, institutional, and utility clients.
    • The companies will combine GreenHouse's core competencies of automation and controls with PSI's expertise in utility and energy engineering to provide state-of-the art packaged solutions for utilities, Demand Response providers and end users.
  • We expanded our product offerings, becoming a leading supplier of Rapidly Assembled Portable Structures, which the United States Marine Corps and United States Navy EOD (Explosive Ordinance Disposal) have selected for their shelter unit/training requirements.

Results of Operations for the year ended December 31, 2010 compared to the year ended December 31, 2009.

Revenues for the year ended December 31, 2010 were approximately $6,732,000 compared to approximately $4,490,000 for the year ended December 31, 2009, an increase of approximately $2,242,000 or 50%. Approximately $1,593,000 of this increase was due to increased sales of our energy efficient products and services to residential customers as a result of our expansion of our sales and marketing infrastructure, as well as the addition of solar photovoltaics to our product offering. The remaining increase of $649,000 was revenue generated by Life Protection Inc., which we acquired on September 8, 2010. Pro-forma revenues for the Company in 2010 would have been approximately $9.8 million had we closed the LPI acquisition on January 1, 2010. Gross profit percentage was 38% and 39% for the years ended December 31, 2010 and 2009.

Operating expenses for the year ended December 31, 2010 were approximately $6,616,000 compared to approximately $3,357,000 for the year ended December 31, 2009, an increase of approximately $3,259,000. Approximately $1,655,000 of the increase was due to the increase in the number of employees and independent contractors, and the related payroll burden costs, needed to support our growth in the EES segment, which included the addition of Demand Response Solutions and Renewable Energy and Cogeneration to our service offerings, and the establishment of our SFS segment. Of the employee and independent contractor costs, approximately $228,000 represented one-time non-cash accounting entries to record the expense associated with issuing stock options to the employees and independent contractors. Approximately $626,000 of the increase was due to increased sales and marketing expenses that resulted in the increase in revenues of our energy efficient products and services to residential customers described above, as well as the increase in expenses to support the sales and marketing efforts of our new service offerings in the EES segment and SFS segments. Approximately $241,000 of the increase was due to the non-cash depreciation expense of fixed assets and amortization expense of distribution rights and other intangibles, and the non-cash valuation of stock issued for services. The remaining $694,000 of the increase was due to increases in general corporate expenses, including expenses associated with being a publicly-traded company, such as investor relations, public relations, audit and legal fees, director and officer liability insurance and expenses associated with our growth, such as general liability insurance.

Net Loss for the twelve month period ended December 31, 2010 was $(4,644,966), an increase of $(2,958,177) compared to a net loss of $(1,686,789) in the same period 2009. Net Loss per share for the 12 month period ended December 31, 2010 was $(0.20) per share based on 23,529,837 shares outstanding versus $(2.11) per share based on 800,000 shares for the same period of 2009. The Company incurred a one-time expense of $250,000 related to their going public transaction in January 2010.

About GreenHouse Holdings, Inc.
GreenHouse Holdings is a leading provider of energy efficiency and sustainable facilities solutions. The company designs, engineers and installs disparate products and technologies that enable its clients to reduce their energy costs and carbon footprint. Its target markets for energy efficiency solutions include government and military, as well as commercial, residential and industrial markets. In addition, the company develops, designs and constructs rapidly deployable, sustainable facilities primarily for use in disaster relief and security in austere regions. For more information, please visit: www.greenhouseintl.com or the GreenHouse YouTube channel at http://www.youtube.com/greenhouseintl or follow GreenHouse on Twitter @greenhouseintl.

Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements that reflect the Company's current expectation regarding future events. Actual events could differ materially and substantially from those projected herein and depend on a number of factors. Certain statements in this release, and other written or oral statements made by GreenHouse Holdings, Inc. are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company's control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Important factors that could cause actual results to differ materially from the company's expectations include, but are not limited to, those factors that are disclosed under the heading "Risk Factors" and elsewhere in documents filed by the company from time to time with the United States Securities and Exchange Commission and other regulatory authorities.

Contact Information

  • Contacts:

    Investor Relations
    Alliance Advisors, LLC
    Bryan Kobel
    Email Contact
    Chris Camarra
    Email Contact
    212-398-3487

    Media Relations
    Rubenstein Public Relations
    Michelle Manoff
    Tel: 212-843-8051
    Email: Email Contact