SOURCE: Titan Energy Worldwide

Titan Energy Worldwide

April 14, 2011 09:00 ET

Titan Energy Worldwide Reports 2010 Year End Financials

Company Delivers Strong Sales Growth; Purchase Orders and Backlog at All Time High

MINNEAPOLIS, MN--(Marketwire - Apr 14, 2011) - Titan Energy Worldwide, Inc. (OTCBB: TEWI), a leader in distributed power generation products and intelligent energy management services, reports fiscal year 2010 financial results.

  • 2010 Sales revenues up 32% over 2009
  • 2010 Service revenues up 34%
  • Purchase orders and backlog at all-time record levels

Jeffrey Flannery, CEO of Titan Energy Worldwide said, "We are highly confident that the market for our products and services in emergency power and demand side management will continue to be strong as the cost of fuel increases, more cost effective energy sources comes into higher demand and world events cast a shadow on some traditional forms of energy production. As one of the few companies that can offer complete energy management solutions utilizing onsite power generation, Titan is positioned to continue its growth in these areas."

The Company reported that 2010 gross sales revenues increased 32% to $14,043,800 compared to $10,626,919 million in 2009. More than $10 million of 2010 gross sales revenues were provided by equipment sales representing a 31% increase over 2009 and approximately $4 million was provided by service sales, an increase of 34%. The level of gross sales attributable to service revenues represented a record high for the Company and was in line with the Company's overall direction to maximize high margin and repeatable service sales. 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 2010 remained at approximately 17% for equipment sales and 53% for service revenue with an overall gross margin of 28%. The company reported a greater loss in EBITDA, a nonGAAP measure, of ($1.4 million) in 2010 compared to ($659K) in 2009. 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 operating expenses at the New Jersey and Miami offices.

"2011 is the first year in our two year plan to steer the company to profitability and to move our product, service and technological offerings fully into the marketplace. We expect to see continued strong growth in all areas of our operations, an increase in overall margins as we continue to improve and expand our service offerings, and experience the macro impact of offering new technological capabilities in the expanding energy management and demand response market," added Flannery.

"Titan achieved many of our stated objectives in 2010, which was to complete the integration of our new offices in Miami and New Jersey, continue to improve our services offerings, and ready our remote monitoring and control technology for the backup power and demand response market places. We are now realizing the potential for new business in the New Jersey/New York area and greater sales activity in Florida resulting from the opening of new offices in those areas. Both of these regions represent areas of major growth for Titan as well as opportunities to expand our energy management and demand response services," added Mr. Flannery.

"The decline in EBITDA experienced in 2010 compared to 2009 was largely due to higher research and development costs related to bringing our monitoring and control technology to market. From an accounting perspective, as of 2010, we have not been able to capitalize these costs, which represent approximately $340,000 of the ($1.4 EBITA) for the year. To further position the company to leverage its sales growth and expand its operations, we have implemented a series of significant expense reductions beginning in the 2nd quarter, reducing our overall SG&A expense by more than $700,000 for 2011. We hope this will allow us to use new capital more efficiently and see faster and better results from our growth initiatives," further added Mr. 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.

Forward-Looking Statements

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

  • For more information about Titan Energy Worldwide please contact:
    Jeffrey Flannery
    Titan Energy Worldwide, Inc.
    619-988-5869
    Email Contact