SOURCE: GreenHouse Holdings Inc.

August 16, 2011 14:30 ET

GreenHouse Holdings Inc. Announces Second Quarter Financial Results and Provides Shareholder Update

SAN DIEGO, CA--(Marketwire - Aug 16, 2011) - GreenHouse Holdings, Inc. (OTCBB: GRHU) ("GreenHouse"), a San Diego, California-based integrated energy solutions provider and developer of eco-friendly infrastructure, today announced financial results for the Second Quarter ended June 30, 2011.

"Throughout the Second Quarter of 2011, we focused our efforts on bolstering key strategic relationships in the both the commercial sector and with governmental agencies," stated John Galt, CEO of GreenHouse Holdings. "In addition to securing several ADR contracts with California based municipalities in our Energy Efficiency Solutions ('EES') segment, the Company continued its preparations to break ground on its $100 million government contract for the design, development and construction of a national security training center, anticipated to start in the Fourth Quarter of 2011, in our Sustainable Facilities Solutions ('SFS') segment. We successfully added to our EES revenue via the acquisition of Costa Mesa, CA-based Control Engineering, Inc. (CEI), a provider of automation and control solutions including engineering, installation and integration services. We believe this fully integrated acquisition will provide us with additional revenue and increase both our operational and financial growth. Management is 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

  • Completed the acquisition of Costa Mesa, CA-based Control Engineering, Inc. (CEI), a provider of automation and control solutions including engineering, installation and integration services.
    • CEI are experts in multiple technologies and applications with a client base that includes recognizable brands from a wide range of industries including AECOM, Fluor, Coca-Cola, AMGEN and Occidental Petroleum with anticipated revenues to exceed $3.5 million in 2011.
    • Controls Engineering, Inc. (CEI) has been contracted by AECOM to provide control system engineering for a groundwater remediation project in Carson, CA.
  • The Company has been engaged to implement Southern California Edison's (SCE) Automated Demand Response (Auto-DR) program for the city of Carson, Ca. and Brea location of Beckman Coulter, and a wholly owned subsidiary of Danaher.
  • 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. Identification of pre-developed land for the facility has resulted in the contract amount being lowered to an estimated $100 million.
    • The facility is anticipated to provide training for 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.

Results of Operations for the Three Month Period ended June 30, 2011

Revenues for the three months ended June 30, 2011 were approximately $930,000 compared to approximately $1,600,000 for the three months ended June 30, 2010.

This decrease came from a softening in demand for energy efficient products to residential customers in the EES segment in the second quarter. As a result, management decided to focus its sales and marketing efforts on the Company's Demand Response Solutions in the EES segment and in its SFS segment.

Gross profit for the three months ended June 30, 2011 was $370,000, compared to $647,000 during the same period in 2010. The change was attributable to the decrease in demand for the Company's energy efficiency solutions to the residential market.

Operating expenses for the three months ended June 30, 2011 were approximately $1,320,000 compared to approximately $1,641,000 for the three months ended June 30, 2010.

Net loss was approximately $976,000 for three months ended June 30, 2011 compared to a net loss of approximately $1,057,000 for the three months ended June 30, 2010.

Results of Operations for the Six Month Period ended June 30, 2011

Revenues for the six months ended June 30, 2011 were approximately $2,401,000 compared to approximately $2,704,000 for the six months ended June 30, 2010.

This decrease came from a softening in demand for energy efficient products to residential customers in the EES segment in the second quarter, which was partly offset by growth in revenue from our new Demand Response Solutions in the EES segment.

The gross profit percentage decreased to 42% for the six months ended June 30, 2011, from 44% for the six months ended June 30, 2010, due to a higher gross profit percentage from the residential market for the six months ended June 30, 2010.

Operating expenses for the six months ended June 30, 2011 were approximately $3,035,000 compared to approximately $2,716,000 for the six months ended June 30, 2010, an increase of approximately $319,000.

Net loss was approximately $2,172,000 for six months ended June 30, 2011 compared to a net loss of approximately $1,983,000 for the six months ended June 30, 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

  • Contact:

    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