SOURCE: Titan Energy Worldwide

Titan Energy Worldwide

October 05, 2009 10:21 ET

Titan Energy Worldwide Shares Plan for Growth, Direction and Profitability in Letter to Shareholders

NEW HUDSON, MI--(Marketwire - October 5, 2009) - Titan Energy Worldwide (OTCBB: TEWI), a leader in the manufacturing, marketing and servicing of power generation products and services, today issued the following Company statement as a press release.

"During the last several months, Titan Energy Worldwide has produced record sales while continuing to grow the base of our Company's business. This progress is due to the strength of our business plan and the commitment of our management and staff. However, we have just begun to execute on our plan and are now focused on the next stages of the Company's growth and development. This letter to the shareholders will be the first in a series of communications from the Management of Titan Energy, as we continue to successfully execute on our vision to become 'A New Kind of Energy Company.'

"Our Place in the Nation's Smart Grid. Tremendous changes are taking place in the energy industry, and opportunities are arising with the development of new technologies, changing priorities and stronger solutions. Titan Energy was established to take advantage of the growing demand for reliable power generation and energy technologies in nearly every area of business. Our world runs on power and many industries require a source of energy that is dependable, continuous and reliable. In recent years the ability to control, manage and monitor power consumption has taken on greater importance as we seek to conserve energy as well as curtail energy costs.

"Titan Energy is a growing and dynamic participant in the distributed energy and energy management industries, important and vital components of the nation's 'Smart Grid.' Titan offers industrial power generators ranging in size from 50kW to several Megawatts that can be deployed and managed outside the current system of power plants and utility operated power supplies. We sell and service these generator systems to a wide range of industrial customers, including: hospitals, telecommunications companies, financial institutions, manufacturers -- any company that needs reliable and continuous power. We also provide a range of services to help customers better manage their energy assets, control energy consumption and utilize alternative energy technologies. These areas of the Smart Grid offer some of the most immediate opportunities for growth and profitability.

"Our Goals -- Growth and Profitability. We have completed two acquisitions that give us a solid foundation in the power generation business in the Midwest and Southeast United States. Having successfully integrated these companies into Titan Energy's operations, we have further demonstrated our ability to increase sales in these divisions, expand their services, and improve efficiencies. The result has been record bookings and sales, records that were posted during an economic recession! We are very proud of our management team, our sales and support staff and our industry partners for helping Titan achieve our current level of success.

"We are now ready to move forward and take our place as the energy company of the future. We have a foundation of solid business, key geographical territories, and skilled personnel who are knowledgeable about the technologies and services that are driving and redefining the energy industry. We have minimized our debt and restructured our company so as to reduce our overhead expense and make significant improvements to our bottom line. We are ready to grow and have a solid plan that will drive us to success.

"Our primary goals are:

1) To continue to grow our revenues internally.

2) To increase our geographic sales territories and business capabilities through acquisitions.

3) To further our capabilities with alternative energy technologies and expand our ability to offer energy management services and Smart Grid solutions.

4) To be EBITDA and cash-flow positive by June 30, 2010.

"Internal Growth. We believe we can double our current revenues (approximately $10 million), through internal growth over the next 24 months. This growth will take place through expanding our sales and service offerings, securing more long-term contracts and increasing the recurring revenue we receive. In our Midwest territory, for example, we have increased service revenues from 10% to 30% of the overall sales revenues during the past three years. In 2009, service revenues will account for $3 million of our $10 million in total sales. This trend is significant to our bottom line as the gross margin on service revenues is generally 50% or higher compared to 20% for equipment sales.

"We have identified key areas where we can expand our abilities to offer energy management and efficiency services to our customers. In addition to offering emergency power generation systems we can provide tools that will help our customers better manage their energy consumption, lower their energy costs, and tie them into local demand response or load curtailment programs which will generate additional savings. These services and technologies represent additional revenues, potential long term contracts and strong margins for Titan Energy. There is tremendous opportunity for Titan Energy in these areas.

"New Territories. We have tremendous opportunities in Florida, a state that has a great need for distributed power systems. We estimate that the Florida market offers three times the potential of our Midwest market. In other words, we believe we should be able to reach $15 million to $20 million in sales in Florida and the Caribbean over the next few years. We are also actively pursuing the acquisition of established and profitable companies that will further broaden our sales territory, increase our revenues and provide us with additional technologies and products that we can offer our customers.

"Alternative Energy Solutions. We are actively looking at ways in which we can use our expertise in distributed generation to work with alternative energy technologies such as wind and solar. One of our states, Iowa, is the largest provider of wind power in the U.S. New York and New Jersey, where we hope to be operating in a few months, are two states with innovative programs and opportunities to provide solar and other alternative technologies. These areas offer tremendous opportunity for Titan Energy.

"A Commitment to Profitability and Success. With this overall plan in place, Titan Energy management feels confident that we will achieve our primary goal no later than June of 2010 to be EBITDA and cash flow positive. We have clearly demonstrated our ability to grow and manage our Company even during challenging times. These new goals have been set so that we can be measured in our efforts and commitment to meet these objectives. We have a good, solid base of shareholders who have supported the Company over the past two years. We feel that the best steps we can make to bring value to their investment will be to achieve a positive and sustainable cash flow while establishing the Company in these areas of strong future growth. We believe we have the fundamentals to achieve these objectives, a plan that will take Titan Energy into exciting and profitable areas, and the commitment to succeed and reward all who have invested in our enterprise."

About Titan Energy Worldwide, Inc.

Since 2006, Titan Energy Worldwide has been dedicated to helping companies meet their power generation and energy management needs. To date we have focused on providing thousands of customers with the most advanced power generation equipment to enable their operations to continue uninterrupted during times of power failures or disasters. We have also established a professional service team that helps customers to maintain and manage their power generations assets. 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
    Chief Executive Officer and Chairman of the Board
    Titan Energy Worldwide, Inc.
    952-217-0204
    Email Contact