SOURCE: GreenHouse Holdings Inc.

November 16, 2010 10:18 ET

GreenHouse Holdings Inc. Reports Third Quarter 2010 Results and Provides Business Update

Nine Month Revenue Increases 27% Year Over Year

SAN DIEGO, CA--(Marketwire - November 16, 2010) - GreenHouse Holdings, Inc. (OTCQX: GRHU) (PINKSHEETS: GRHU) ("GreenHouse"), a San Diego, California-based integrated energy solutions provider and developer of eco-friendly infrastructure, today announced the results of operations for the third quarter of Fiscal Year 2010 and is providing a shareholder update.

2010 Operational Highlights:

  • Acquired Life Protection Inc., (LPI) a subsidiary that provides innovative training, support, design and construction of facilities and services to meet the needs of the U. S. Government, military, and law enforcement agencies.
  • Signed multiple contract awards for its Life Protection (LPI) Governmental Services Division, totaling $6 million.
    • The governmental contracting entities include the U.S. Marine Corps School of Dynamic Entry in Quantico, VA and the U.S. Army Schofield Barracks Range Support in Honolulu, HI.
  • Announced that PepsiCo will partner with GreenHouse to utilize Southern California Edison's Automated Demand Response program at its Buena Park bottling plant.
  • Signed Letter of Intent to acquire Control Engineering, Inc (CEI). Headquartered in Costa Mesa, California and serving clients globally, CEI provides turnkey automation and control solutions including engineering, installation and integration services.
    • Experts in multiple technologies and applications, CEI's client base includes recognizable brands from a wide range of industries including pharmaceutical, food, and beverage, utility, military and consumer goods.
  • Shareholder's equity increased to $2.9 million from a deficit of approximately $2 million as of 12/31/09.
  • The Company is completing the necessary steps to Up-List its shares to a senior U.S. stock exchange.
    • In order to facilitate the transition, GreenHouse established an independent board and appointed PKF, a nationally recognized accounting firm, as their SEC auditors.

"Management is pleased with our operational and financial growth," stated Chris Ursitti, CEO of GreenHouse Holdings. "Life Protection Inc. and the pending acquisition of Control Engineering, Inc. will provide the company with a strong foundation of growth while positioning us as a market leader within the energy efficiency and load reduction arena. In addition to expanding operations within the residential, commercial and governmental markets, we also anticipate expansion from our industrial clients as we deploy our Automated Demand Response products. We are confident that these developments will rapidly increase earnings, expand margins and allow us to achieve our ultimate goal of increased shareholder value."

Financial Results for the Three Month Period Ended September 30, 2010

Revenues for the three months ended September 30, 2010 were approximately $1,724,000 compared to approximately $1,671,000 for the three months ended September 30, 2009, an increase of approximately $53,000 or 3%. 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.

Gross profit percentage decreased from 43% for the three months ended September 30, 2009 to 37% for the three months ended September 30, 2010 due to normal fluctuations in the sales mix of products and services.

During the three months ended September 30, 2010, the Company received signed contracts totaling approximately $2,312,000, its highest quarterly amount through September 30, 2010, resulting in a backlog of $1,501,000 as of September 30, 2010.

Operating expenses for the three months ended September 30, 2010 were approximately $1,605,000 compared to approximately $1,053,000 for the three months ended September 30, 2009, an increase of approximately $552,000. Approximately $354,000 of this increase was due to the increase in the number of employees to support our growth, and the related payroll burden costs.

Interest expense for the three months ended September 30, 2010 was approximately $29,000 compared to approximately $27,000 for the three months ended September 30, 2009, an increase of approximately $2,000.

As a result, net loss was approximately $991,000 for the three months ended September 30, 2010 compared to a net loss of approximately $363,000 for the three months ended September 30, 2009.

Financial Results for the Nine Month Period Ended September 30, 2010

Revenues for the nine months ended September 30, 2010 were approximately $4,428,000 compared to approximately $3,486,000 for the nine months ended September 30, 2009, an increase of approximately $942,000 or 27%. 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.

Gross profit percentage increased from 37% for the nine months ended September 30, 2009 to 41% for the nine months ended September 30, 2010 due to our increased focus on negotiating better prices and discounts from our suppliers and vendors, our increased focus on sales training and customer pricing, and sales of higher margin products and services.

For the 2009 fiscal year and for the nine months ended September 30, 2010, the Company's gross profit percentage has fluctuated between approximately 40% and 50% due to normal fluctuations in the sales mix of products and services.

Operating expenses for the nine months ended September 30, 2010 were approximately $4,321,000 compared to approximately $2,270,000 for the nine months ended September 30, 2009, an increase of approximately $2,051,000. Approximately $1,117,000 of this increase was due to the increase in the number of employees needed to support our growth, and the related payroll burden costs.

Interest expense for the nine months ended September 30, 2010 was approximately $237,000 compared to approximately $33,000 for the nine months ended September 30, 2009, an increase of approximately $204,000.

As a result, net loss was approximately $2,975,000 for the nine months ended September 30, 2010 compared to a net loss of approximately $1,019,000 for the nine months ended September 30, 2009.

Mr. Ursitti continued, "Throughout the fiscal year, GreenHouse worked to diversify our clientele, and forged strong industry relationships with well recognized global corporations. We believe these accomplishments were vital steps in positioning the company for both near term growth and long term sustainability. Going forward, we remain committed expanding clean, cost saving energy solutions operations both domestically and internationally while also expanding market presence within our emerging governmental services division."

About GreenHouse Holdings, Inc.
GreenHouse Holdings, Inc. is a San Diego, California based integrator of some of the world's most innovative environmental, public safety, infrastructure technologies. GreenHouse provides systems that are financially sound and sustainable to residential, commercial, and industrial and government markets around the globe. GreenHouse provides energy-efficiency products, energy management systems, eco-friendly infrastructure, scalable waste-to-fuel bio-fuel and closed loop systems, as well as other proprietary technologies and products that are utilized to provide a greener and safer future for millions of people. Other flagship products and solutions include the Green Village, R.A.P.S., and One Link. For more information, please visit: www.greenhouseintl.com or the GreenHouse YouTube channel at http://www.youtube.com/greenhouseintl or follow GreenHouse on Twitter http://twitter.com/@greenhouseintl.

Safe Harbor Statement
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.

The listing application is subject to review and approval by each entity's Listing Qualifications Department for compliance with individual Capital Market Standards. The review process is thorough and may take an extended period of time before completion. While the Company intends to satisfy all of the necessary requirements for initial listing, no assurance can be given that its application will be approved.

Contact Information

  • Contact:

    Investor Relations
    Alliance Advisors, LLC
    Chris Camarra or Bryan Kobel
    (212) 398-3487

    Press Contact
    Hutchens PR
    Karen Hutchens
    (619) 236-0227