SOURCE: Titan Energy Worldwide

August 13, 2008 11:21 ET

Titan Energy Worldwide Reports Second Quarter 2008 Financial Results

MINNEAPOLIS, MN--(Marketwire - August 13, 2008) - Titan Energy Worldwide, Inc. (OTCBB: TEWI), a leader in the manufacturing, marketing and servicing of energy generation products and services, announced financial results for the second quarter ended June 30, 2008.

John Tastad, Chief Executive Officer of Titan Energy Worldwide, stated, "We are pleased to announce strong second quarter results for Titan Energy Worldwide and its two wholly owned subsidiaries Titan Energy Services and Titan Energy Development. While sales revenues of $2.7 million were comparable to the same quarter last year, our success in significantly increasing gross margins better positions the company towards future profitability.

"Our companywide gross margins continue to climb and improved to 19% compared to 16% for the same quarter last year. Our success in leveraging Generac's proprietary technology and a 163% increase in service revenue margins were significant contributors to these positive financial results.

"We have been successful in reducing overhead and administrative costs and as a result were able to improve our bottom line by 43%. We are committed to continuing to streamline our operations while we increase margins on our sales revenue. These are indicators of our company building its future on an increasingly solid foundation.

"These results, I believe, validate our management's ability to impact and improve company operations. These efforts will be invaluable as we move forward with our acquisition strategy. Our goal is to bring significant revenue growth to Titan Energy through key acquisitions, and position the company to be profitable in the near future," Tastad added.

Second Quarter 2008 Results

Revenue for the second quarter of 2008 was $2.7 million compared to $2.8 million in the second quarter of 2007. Gross margins in the first quarter of 2008 were 19%, up from 16% in the second quarter of 2007. The improvement in gross profits reflects a favorable product mix, improved efficiencies and higher prices on service contracts. Total general and administrative expenses were $0.8 million compared to $0.6 million for the comparable period reflecting an increase in sales and marketing costs.

The company reported a net loss of $0.3 million compared to $0.5 million for the three months ended June 30, 2007. The lowered losses are primarily due to lowered interest expenses in 2nd Q 2008 compared to 2007 and the Company writing off $.03 million in amortization of debt discount and financing cost in the 2nd Q 2007.

The Company increased its inventory to $1.2 million in the 2nd Quarter of 2008 from $0.6 million in the 2nd Quarter of 2007 as it prepares for the nationwide launch of the Sentry 5000 through its distribution agreement with Katolight.

As of June 30, 2008, the company had total assets of $6.8 million with cash and cash equivalents of $2.5 million, working capital of $1.3 million and stockholders' equity of $4.3 million. As of June 30, 2008, the Company had 15,438,167 shares of its Common stock outstanding, compared to 15,398,205 at June 30, 2007.

About Titan Energy Worldwide, Inc.

Titan Energy is a leader in the manufacturing, marketing and servicing of energy generation products and services, including development and support for new energy-related technology. Founded in 2005, Titan combines engineering expertise, established sales and distributorships, service operations and unique strategic partnerships to meet the growing global demand for clean, efficient, energy solutions. Titan serves disaster recovery first responders, relief agencies, homeland security, the department of defense and municipalities. For more information, 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:
    Julie Kane
    Titan Energy Worldwide, Inc.
    248-446-8557
    Email Contact