Comverge, Inc. (Comverge) has reported total revenues of $77.2 million for the year-end 2008, up 40%, compared with the total revenues of $55.1 million in the previous year-end. It has also reported a net loss of $94.1 million, or $4.45 loss per diluted share, for the year-end 2008, compared with the net loss of $6.6 million, or $0.46 loss per diluted share, in the previous year-end.
Fourth quarter revenues for 2008 were $33.0 million compared to $34.8 million in the year-ago quarter, a 5% decrease. Revenues for both periods include revenues from our residential VPC contracts, which are deferred and recognized in the fourth quarter.
For the full year 2008, adjusted EBITDA was a loss of $5.1 million compared to income of $0.5 million for 2007. Adjusted EBITDA for the fourth quarter of 2008 was positive $12.7 million compared to positive $13.3 million for the year-ago quarter. Adjusted EBITDA is earnings before interest, taxes, depreciation, amortization, noncash stock compensation expense and noncash impairment charges (see Schedule 5 Reconciliation of NonGAAP Financial Measure to the Most Directly Comparable GAAP Financial Measure).
Nteloss includes the non cash impairment charge recorded in the third quarter of 2008 for goodwill and certain intangible assets related to our acquisition of Enerwise Global Technologies, Inc., of $75.4 million, or $3.52 per share basic and diluted after a $1.0 million tax benefit. Net loss for full year 2008, excluding the impact of the impairment charge, was $19.7 million, or $0.93 per share basic and diluted, compared to a net loss of $6.6 million, or $0.46 per share basic and diluted for full year 2007. Net income for the fourth quarter of 2008 was $6.1 million, or $0.29 per share basic and $0.28 per share diluted, compared to net income of $7.6 million, or $0.38 per share basic and $0.36 per share diluted for the year-ago quarter.
Comverge fourth quarter 2008 business highlights include:
Awarded a five year contract with Progress Energy Carolinas (PEC) to provide demand response hardware, software, and software hosting services;
Awarded a five year full turnkey contract with Austin Energy to provide installation services, program management and demand management hardware Superstats(R);
Total megawatts under management increased by 828 MW, or 63% during 2008 and as of December 31, 2008 were:
Megawatts under long term contracts, with regulatory approval 701
Megawatts under open market programs 894
Megawatts to be provided under turnkey programs 120
Megawatts managed for a fee 437
Total megawatts 2152
Entered into a new $25 million senior credit facility with Silicon Valley Bank.
In 2009, Comverge has:
Entered into a five year contract with Pepco Holdings, Inc. to provide full turnkey services, including an AMIenabled demand response hardware and software system, as well as installation and marketing services;
Announced the release of its Apollo(R) Demand Response Management System software platform;
Announced the delivery of its five millionth demand management device;
Appointed Messrs. Larry Hagewood and Thomas Gutierrez to the Board of Directors.
We currently expect our full year fiscal 2009 revenues will exceed $90 million. Comverge’s management and Board of Directors use three metrics to measure the company’s operational progress:
Megawatts owned under longterm contracts,
Megawatts managed under open market programs, and
Estimated future revenues from longterm contracts. We believe these metrics are the most important to the growth and longterm success of the company.
Our 2009 targets for growth in these metrics are:
Add a net 275 MW of capacity under longterm contracts;
Add a net 225 MW in open market programs; and
Add a net $150 million increase in the amount of estimated future revenues from longterm contracts.
As of the date of this release, we have 866 MW under longterm contract which will contribute to contracted future revenues of $522 million. Of these amounts, 165 MW of capacity under longterm contracts representing an expected $114 million in contracted future revenues, are still awaiting regulatory approval. In the event we receive regulatory approval on these 165 MW, and including new MW acquired in open market programs and a new turnkey contract awarded during the first quarter of 2009, our total MW managed will be 2,620 MW.
The above statements are based on current expectations. These statements are forwardlooking and actual results may differ materially. The company assumes no obligation to publicly update or revise its outlook. Investors are reminded that actual results may differ from these estimates for the reasons described below under the caption For Comverge Investors and in our filings with the Securities and Exchange Commission.
Robert M. Chiste, chairman, president and chief executive officer of Comverge said:
Comverge again demonstrated strong results in 2008, as we attained 40% revenue growth in a very tumultuous economic climate and increased MW under management by over 60%. This marks the fourth consecutive year that our revenue growth exceeded 35%. Our revenue visibility increased dramatically with estimated future revenues from longterm contracts currently exceeding $520 million, assuming regulatory approval of two contracts included in the make up of these revenues. In addition, our pipeline is growing rapidly, as we responded to RFP’s, in January alone, valued at more than $500 million. More utilities are partnering with Comverge for demand management solutions as they increasingly realize the most economic and cleanest MW is the MW never produced. With the recent nationwide emphasis on building the smart grid, we believe that we are at the forefront of the alternative energy sector by providing Strategic Utility Management through Innovation and Technology.