SOURCE: Titan Energy Worldwide, Inc.

August 22, 2007 11:38 ET

Titan Energy Worldwide Releases 2nd Quarter 2007 Financials; Revenues Increase 9% Over 1st Quarter

SAN DIEGO, CA--(Marketwire - August 22, 2007) - Titan Energy Worldwide (OTCBB: TEWI) today released the company's financials for the second quarter of 2007. For the three months ending June 30, 2007, the Company posted $2,803,848 in gross revenues and a gross profit of $452,110. This represents an increase of 9% over the three months ended March 31, 2007 results, and a 148% increase in gross profits. For the six month period of January 1, 2007 to June 30, 2007, the company posted gross revenues of $5,385,896. Gross profits for the same six month period were $634,623.

In preparing 10-QSB for period ending June 30, 2007, the Company and its external auditor re-evaluated the accounting for convertible debt that was issued in prior periods and determined that several of the convertible securities had a beneficial conversion feature that was not accounted for in accordance with current accounting guidance. The impact of this change is to determine a debt discount and amortized the discount to expense over the term of the securities.

The Company's net loss of $514,970 in the three months ended June 30, 2007 includes the amortization debt discount and deferred financing costs of $279,931. The first quarter loss restated for the proper accounting, was $849,272. The first quarter includes amortization of debt discount and deferred financing costs of $362,034. The second quarter result represents a loss reduction over the first quarter of approximately 50%, excluding the additional charge. This additional expense is a non-cash charge that increases the net loss for GAAP and increase on shareholders' equity accounts, but has no impact on our cash flow. For the first six months of the year, the Company's net loss was $1,409,242. Of this, the Company posted $641,065 in amortization of debt discounts and deferred financing costs.

Stated Thomas Black, President of Titan Energy Worldwide, Inc., "We are pleased to see revenues up and our operating losses improve so shortly after bringing these companies together. We continue to see improvements in both of our subsidiaries. Sales in the Stellar Energy subsidiary have increased as well as profit margins. In the Titan subsidiary, we completed two Sentry 5000 sales in the quarter and signed a letter of intent for four more Sentry units."

Management further noted that it will be necessary to restate the treatment of convertible securities in the first quarters 2007, the 2006 10-KSB and the third quarter of 2006. These changes are not expected to affect the cash position of the company, but take into consideration changes and requirements in the accounting treatment of convertible debt and purchase price allocation.

TEWW is in the distributed power generation business. The company has two subsidiaries: Titan Energy Development, Inc., which manufactures and markets a mobile utility system for disasters response situations called the Sentry 5000. The Stellar Energy Services division is a distributor and service provider for Generac, Inc., a major manufacturer of power generators.

More information on Titan Energy Development, Inc. can be found at www.titanenergydevelopment.com. More information on Stellar Energy Services can be found at www.stellarenergyservices.com.

Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statements of TEWI officials are "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "believes," "anticipates," "intends," "plans," "expects," and similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future TEWI actions, which may be provided by management, are also forward-looking statements as defined by the Act. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements and to vary significantly from reporting period to reporting period. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual future results will not be different from the expectations expressed in this report. These statements are not guarantees of future performance and TEWI has no specific intention to update these statements.

Contact Information

  • Contact:
    Jeffrey Flannery
    (619) 342-7449