SOURCE: GreenHouse Holdings Inc.

May 18, 2011 08:30 ET

GreenHouse Holdings Announces First Quarter Revenue Increase of 33%

SAN DIEGO, CA--(Marketwire - May 18, 2011) - GreenHouse Holdings, Inc. (OTCBB: GRHU) ("GreenHouse"), a San Diego, California-based integrated energy solutions provider and developer of eco-friendly infrastructure, announced revenue results of approximately $1.5 million for the First Quarter 2011 and is providing a shareholder update.

"We successfully increased revenue by 33% based on strong sales from our Automated Demand Response solutions, as well as while increasing training services provided by our Life Protection Inc. ("LPI" or "Life Protection") division," stated John Galt, CEO of GreenHouse Holdings. "Additionally, GreenHouse signed a $151 million contract for the design, development and construction of a national security training center. The project represents our largest building contract to date and will provide us with a stable revenue base for the next 3 years. During the quarter we also signed a $28 million agreement to provide sustainable textured coating product to OceanSafe, a manufacturer of leading-edge steel structural insulated panels, for use in the construction of energy efficient buildings. These contracts validate GreenHouse's strategic business model of leveraging key political relationships and cost-effective sustainable energy solutions, in order to become a market leader within the government contracting market. We expect to begin ramping our revenues from these projects in the second half of 2011."

Mr. Galt continued, "We intend to expand operations in our LPI division internationally, to become a one-stop-shop for worldwide, green, government contracting solutions. Management believes that the Middle East and Central America present strong opportunities for our sustainable facilities market, and we will continue to add to our contract pipeline. Based on our relationships with PepsiCo and SoCal Edison, our ADR division is rapidly growing, and we expect to sign additional contracts in the near-term. We are confident that we possess a platform capable of providing sustained operational and financial growth. We remain committed to increasing our revenue while reducing overhead across all business lines, as we strive to achieve our ultimate goals of increased earnings and improved shareholder value."

Recent Operational Highlights

  • Wholly-owned subsidiary, Life Protection, awarded a $151 million contract for the design, development and construction of the Carlstrom National Security Training Center ("Carlstrom") in Central Florida.
    • The facility will house The U.S. Marine Corps, U.S. Navy SEALs, U.S. Army, Federal Air Marshall Service, U.S. Coast Guard, Border Patrol, Tactical Forces (SWAT and Anti-Terrorism), Customs Enforcement, FEMA, and First Responders (Fire, Police, EMS).
  • Life Protection signed a $28 million contract to provide sustainable textured coating product to OceanSafe, a manufacturer of leading-edge steel structural insulated panels, for use in the construction of energy efficient buildings.
    • The coating is expected to be delivered by the end of the third quarter of 2011.
  • Signed partnership with Seychelle Environmental Technologies, Inc., a worldwide leader in the development, assembly and sale of proprietary portable water filtration products.
    • Together, the companies will offer a variety of innovative water filtration and conservation technologies to the Department of Defense.
  • 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.

Results of Operations for the First Quarter ended March 31, 2011

Revenues for the three months ended March 31, 2011 were approximately $1,471,000 compared to approximately $1,103,000 for the three months ended March 31, 2010, an increase of 33%. The increase was the result of $323,000 in revenue generated by Life Protection Inc., which GreenHouse acquired on September 8, 2010, in the Sustainable Facilities Solutions ("SFS") segment. The gross profit percentage was 44% and 49% for the three months ended March 31, 2011 and 2010, respectively. The decrease in gross profit percentage was due to increased costs incurred as a result of rain delays on a large project completed by Life Protection, Inc.

Operating expenses for the three months ended March 31, 2011 were approximately $1,714,000 compared to approximately $1,075,000 for the three months ended March 31, 2010. The increase was due to the number of employees and to increased sales and marketing expenses to support the sales and marketing efforts of our new service offerings in the Energy Efficiency Solutions ("EES") segment and SFS segments. The additional increase was due to the non-cash depreciation expense of fixed assets and amortization expense of distribution rights and other intangibles.

Net loss was approximately $1,196,000 for three months ended March 31, 2011 compared to a net loss of approximately $926,000 for the three months ended March 31, 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

  • GreenHouse Holdings, Inc. 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