Exhibit 99.1
ENERGY FOCUS, INC. REPORTS THIRD QUARTER 2012 RESULTS
SOLON, Ohio, November 14, 2012 -- Energy Focus, Inc. (OTC BB: EFOI) today announced financial results for the third quarter ended September 30, 2012.
Financial results for the third quarter of 2012 include the following:
| · | Net sales were $7.9 million compared to $6.0 million for the third quarter of 2011. |
| · | Gross margins improved to 24.8 percent of net sales compared to 20.1 percent of net sales for the third quarter of 2011. |
| · | The net loss of $0.9 million improved $0.5 million compared to the third quarter’s 2011 net loss of $1.5 million on $1.9 million higher sales. |
Net sales increased 31 percent during the third quarter of 2012 as compared to the prior year’s third quarter primarily as a result of 45 percent higher sales from our Products business. Net sales increased in both the pool and commercial division, as well as in our government products and R&D services division. Net sales from our Solutions business increased 3 percent.
Joe Kaveski, Chief Executive Officer, commented, “Although sales increased from the prior year’s third quarter, sales fell short of our guidance of $9.5 million to $10.5 million. The sales shortfall occurred principally in our SRC business where large contracts which we were expecting to receive earlier in the third quarter slipped, pushing portions of the revenues from these contracts out to the fourth quarter. However, the good news is that our SRC business has received $6.9 million of new contracts secured from the last week of September through today. These contracts (which are described in greater detail in today’s companion press release) and additional contracts we expect to receive in our fourth quarter will lead to year over year sales growth. Moreover, we are encouraged by our greatly expanded proposal pipeline which we expect will lead to further sales growth in 2013.”
The Company expects sales for the fourth quarter to range between $9.0 million and $10.5 million.
Energy Focus, Inc. will host a conference call on Wednesday, November 14, 2012, at 4:30 p.m. EST (1:30 p.m. PST) to review the third quarter of 2012 financial results, followed by a Q & A session. The call can be accessed by dialing 1-877-879-6217 (US and Canada) or 1-913-312-0982 (International/Local). The conference ID number is 9821408. Participants are asked to call the assigned number approximately 10 minutes before the conference call begins.
A recording of the conference call will be available through the investor relations section of the Company’s web site at http://www.energyfocusinc.com/investors/events/category/investors starting November 14, 2012, and will remain available for 3 months.
Forward Looking Statements
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For more information about potential factors that could affect the financial results of Energy Focus, please refer to the Company’s SEC reports, including its Annual Reports on Form 10-K and its quarterly reports on Form 10-Q. These forward-looking statements speak only as of the date hereof. Energy Focus disclaims any intention or obligation to update or revise any forward-looking statements.
About Energy Focus, Inc.
Energy Focus, Inc. is a leading provider of energy efficient LED lighting products, turnkey energy efficient lighting solutions and a developer of energy efficient lighting technology holding 75 lighting patents. Our solutions provide energy savings, aesthetics, safety and maintenance cost benefits over conventional lighting. Our long-standing relationship with the U.S. Government includes numerous research and development projects for the DOE and DARPA, creating energy efficient LED lighting systems for the U.S. Navy fleet.
Customers include national, state and local U.S. government agencies as well as Fortune 500 companies, the U.S. Navy, swimming pool builders and many others. Company headquarters are located in Solon, OH, with additional offices in Nashville, TN, Pleasanton, CA, and the United Kingdom. For more information, see our web site at www.energyfocusinc.com.
Media Contact:
Energy Focus, Inc.
Public Relations Office
(440) 715-1295
pr@energyfocusinc.com
Investor Contact:
Brion Tanous
CleanTech IR, Inc.
(310) 541-6824
btanous@cleantech-ir.com
ENERGY FOCUS, INC.CONSOLIDATED BALANCE SHEETS
(amounts in thousands except share and per share amounts)
| | | September 30, | | | December 31, | |
| | | 2012 | | | 2011 | |
| | | (unaudited) | | | | |
| ASSETS | | | | | | |
| Current assets: | | | | | | |
| Cash and cash equivalents | | $ | 380 | | | $ | 2,136 | |
| Trade accounts receivable less allowances of $321 and $447, respectively | | | 4,193 | | | | 2,738 | |
| Retainage receivable | | | 91 | | | | 474 | |
| Inventories, net | | | 2,364 | | | | 2,429 | |
| Costs in excess of billings | | | 45 | | | | 171 | |
| Prepaid and other current assets | | | 1,226 | | | | 881 | |
| Total current assets | | | 8,299 | | | | 8,829 | |
| | | | | | | | | |
| Property and equipment, net | | | 1,787 | | | | 2,105 | |
| Goodwill | | | 672 | | | | 672 | |
| Intangible assets, net | | | 713 | | | | 1,027 | |
| Collateralized assets | | | 1,000 | | | | 1,000 | |
| Other assets | | | 86 | | | | 145 | |
| Total assets | | $ | 12,557 | | | $ | 13,778 | |
| | | | | | | | | |
| LIABILITIES | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Accounts payable | | $ | 3,591 | | | $ | 5,653 | |
| Accrued liabilities | | | 3,045 | | | | 1,995 | |
| Deferred revenue | | | 539 | | | | 1,373 | |
| Billings in excess of costs | | | 221 | | | | 154 | |
| Credit line borrowings | | | 1,330 | | | | 701 | |
| Current maturities of long-term debt | | | 731 | | | | 855 | |
| Total current liabilities | | | 9,457 | | | | 10,731 | |
| | | | | | | | | |
| Other liabilities | | | 31 | | | | 71 | |
| Acquisition-related contingent liabilities | | | - | | | | 553 | |
| Long-term debt | | | 307 | | | | 955 | |
| Total liabilities | | | 9,795 | | | | 12,310 | |
| | | | | | | | | |
| SHAREHOLDERS' EQUITY | | | | | | | | |
Preferred stock, par value $0.0001 per share: Authorized: 2,000,000 shares in 2012 and 2011 | | | - | | | | - | |
Common stock, par value $0.0001 per share: Authorized: 100,000,000 shares in 2012 and 60,000,000 shares in 2011 | | | 4 | | | | 1 | |
| Additional paid-in capital | | | 80,911 | | | | 75,962 | |
| Accumulated other comprehensive income | | | 457 | | | | 420 | |
| Accumulated deficit | | | (78,610 | ) | | | (74,915 | ) |
| Total shareholders' equity | | | 2,762 | | | | 1,468 | |
| Total liabilities and shareholders' equity | | $ | 12,557 | | | $ | 13,778 | |
ENERGY FOCUS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except per share amounts)
| | | Three months endedSeptember 30, | | | Nine months endedSeptember 30, | |
| | | 2012 | | | 2011 | | | 2012 | | | 2011 | |
| | | | | | | | | | | | | |
| Net sales | | $ | 7,904 | | | $ | 6,046 | | | $ | 20,878 | | | $ | 19,699 | |
| Cost of sales | | | 5,945 | | | | 4,831 | | | | 16,430 | | | | 15,777 | |
| Gross profit | | | 1,959 | | | | 1,215 | | | | 4,448 | | | | 3,922 | |
| | | | | | | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | | | | | |
| Research and development | | | 102 | | | | (278 | ) | | | 87 | | | | (144 | ) |
| Sales and marketing | | | 1,423 | | | | 1,524 | | | | 4,084 | | | | 5,095 | |
| General and administrative | | | 1,211 | | | | 1,212 | | | | 3,479 | | | | 3,834 | |
| Valuation of equity instruments | | | - | | | | - | | | | - | | | | 56 | |
| Total operating expenses | | | 2,736 | | | | 2,458 | | | | 7,650 | | | | 8,841 | |
| Loss from operations | | | (777 | ) | | | (1,243 | ) | | | (3,202 | ) | | | (4,919 | ) |
| | | | | | | | | | | | | | | | | |
| Other income (expense): | | | | | | | | | | | | | | | | |
| Other (expense) income | | | (26 | ) | | | (6 | ) | | | (98 | ) | | | 65 | |
| Interest income | | | - | | | | - | | | | 1 | | | | 3 | |
| Interest expense | | | (123 | ) | | | (206 | ) | | | (388 | ) | | | (581 | ) |
| | | | | | | | | | | | | | | | | |
| Loss before income taxes | | | (926 | ) | | | (1,455 | ) | | | (3,687 | ) | | | (5,432 | ) |
| | | | | | | | | | | | | | | | | |
| Provision for income taxes | | | (2 | ) | | | (4 | ) | | | (8 | ) | | | (13 | ) |
| | | | | | | | | | | | | | | | | |
| Net loss | | $ | (928 | ) | | $ | (1,459 | ) | | $ | (3,695 | ) | | $ | (5,445 | ) |
| | | | | | | | | | | | | | | | | |
| Net loss per share - basic and diluted | | $ | (0.02 | ) | | $ | (0.06 | ) | | $ | (0.09 | ) | | $ | (0.22 | ) |
| | | | | | | | | | | | | | | | | |
Shares used in computing net loss per share - basic and diluted | | | 44,542 | | | | 24,845 | | | | 40,241 | | | | 24,610 | |
