SOURCE: Titan Energy Worldwide
MINNEAPOLIS, MN--(Marketwire - May 24, 2011) - Titan Energy Worldwide, Inc. (OTCBB: TEWI), a leader in distributed power generation products and intelligent energy management services, reports 1st quarter 2011 financial results.
- 1stQuarter 2011 Sales revenues up 17% over 1stQ 2010
- Service revenues up 20% over same quarter in 2010
- Sales breaks previous Company record for 1stQuarter
Jeffrey Flannery, CEO of Titan Energy Worldwide said, "With another record quarter for sales, we continue to see the positive results from investments we made opening our offices in New Jersey and Florida. At the same time, we are launching new initiatives in the service and management of onsite power generation which we believe will have a significant impact on how power generation is managed and on the sales and service capabilities of our Company. These programs will drive higher margin sales for Titan, and allow us to enter more energy markets including the demand response and energy efficiency. Combined with a series of expense reduction measures, we believe Titan is now well positioned for strong growth with the goal of achieving profitability by 2012."
The Company reported that 1st Q 2011 gross sales revenues increased 17% to $2,386,150 compared to $2,112,484 million in 1st Q 2010. Service sales increase 20% to $1,085,897 compared to $904,553 in the same quarter in 2010. The large growth in gross sales revenues attributable to equipment sales came largely due to the full year effect of sales from the Company's operations in New Jersey and in Florida. The increase in service sales is largely attributable to the Company's success in securing major national accounts.
Gross margins during 2011 remained at approximately 17% for equipment sales and 53% for service revenue with an overall gross margin of 28%. The company reported a greater 1st quarter loss in EBITDA, a nonGAAP measure, of negative $670,812 in 2011 compared to negative $312,739 in 2010. The greater loss was largely attributable to research and development expenses related to the Company's remote monitoring and control technology for onsite power generation, fundraising activities and increased operating expenses at the New Jersey and Miami offices.
"We have initiated a number of initiatives as part of our two year plan to steer the company to profitability and to move our product, service and technological offerings fully into the marketplace. Our investments in our new offices in New Jersey and Miami are pretty much complete, our research and development activities are shifting now towards delivering our technology to the marketplace. Overall, we have made significant reductions in our overheard which we hope will allow us to use new capital more efficiently and see faster and better results from our growth initiatives," added Flannery.
"The demand for our services, from backup power to technology for controlling demand response services, is only expected to grow. We expect to see continued strong growth in all areas of our operations and an increase in overall margins as we continue to improve and expand our service offerings. We also expect to experience the impact of offering new technological capabilities in the energy management and demand response markets," added Flannery.
About Titan Energy Worldwide, Inc.
Titan Energy Worldwide is a provider of onsite power generation, energy management and energy efficiency products and services that help support and improve the performance of our nation's electrical utility grid. We operate in an area of the overall electrical utility infrastructure called Distributed Generation, whereby we specialize in the deployment of power generation equipment at the consumer's facility and the integration of that equipment through monitoring and communication systems with the needs of the utility's electrical grid. These onsite power generation systems support a customer's critical operations during times of power failure and serve as demand response systems that work to reduce energy usage and decrease demand on the electrical grid during peak periods. When managed with the proper intelligent monitoring systems and controls, Distributed Generation offers a vital and significant contribution to the development of the nation's Smart Grid. We contribute the tools and resources to produce immediate and long term improvements in the performance and stability in the energy production and transmission segments of the electrical grid and reduce the need for new power plants. From emergency and back-up power technologies, to demand response programs and Smart Grid applications, Titan Energy is setting a path for the future in energy management. For more information, please visit the company's website at: www.titanenergy.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.