EXHIBIT 99.1
Contacts:
W. Phillip Marcum Philip Bourdillon/Eugene Heller
Chairman and CEO Silverman Heller Associates
303-785-8080 310-208-2550
METRETEK TECHNOLOGIES REPORTS
YEAR-END & FOURTH-QUARTER RESULTS, EFFECTS OF
SIGNIFICANT SETTLEMENTS
DENVER - MARCH 28, 2003 - METRETEK TECHNOLOGIES, INC. (OTCBB: MTEK) today
reported a net loss applicable to common shareholders of $4.2 million (including
a $852,000 preferred stock deemed distribution), or $0.70 per share, on revenues
of $27.0 million for the twelve months ended December 31, 2002, compared to a
net loss applicable to common shareholders of $2.2 million (including a $777,000
preferred stock deemed distribution), or $0.36 per share, on revenues of $29.1
million in 2001.
The 2002 net loss applicable to common shareholders includes a loss accrual of
$3.5 million related to the pending settlement of a class-action lawsuit,
partially offset by a $1.7 million gain resulting from the settlement of a
dispute regarding a $2.5 million note payable and certain related issues in
consideration for a cash payment of $50,000.
W. Phillip Marcum, chairman and CEO of the Company, noted that while 2002 was a
difficult year for the Company, the outlook for 2003 is viewed as positive. "The
resolution of the disputed note payable, anticipated settlement of the
class-action litigation, managerial and operational changes at Metretek,
Incorporated, and other steps taken during the year were each critical elements
of an overall restructuring of Metretek's business operations. Virtually all
elements of this rebuilding phase have now been implemented, and the Company is,
we believe, poised to become profitable during 2003, perhaps as early as the
second quarter."
On March 27, 2003, the Company, along with lead counsel for a class-action
lawsuit that was filed against the Company and several of its affiliates in
January 2001, filed a Stipulation of Settlement with the Denver Colorado
District Court that contains the terms and conditions of a proposed settlement.
The Settlement is preliminary and subject to several contingencies, including
approval by the Court and a minimum level of funding provided by the Company's
Directors and Officers Liability Insurance Policy provider. If the Settlement
becomes effective, the Company will pay to the class's settlement fund an
initial cash payment of up to $375,000, and issue to that fund a $3.0 million
note payable that is guaranteed by the Company's subsidiaries. The note will be
payable in
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16 equal quarterly installments plus interest at the rate of prime-plus-3%.
Under the terms of the settlement, the Company is required to commence its
payment obligations after the Court issues its final judgment and order
approving the settlement.
For the fourth quarter ended December 31, 2002, the Company reported a net loss
applicable to common shareholders of $2.5 million (including a $239,000
preferred stock deemed distribution), or $0.42 per share, on revenues of $6.6
million, compared to a net loss applicable to common shareholders of $419,000
(including a $235,000 preferred stock deemed distribution), or $0.07 per share,
on revenues of $6.6 million in the same period a year ago. The fourth-quarter
2002 net loss applicable to common shareholders includes a $1.8 million net
charge against earnings resulting from the two settlements referenced above.
Metretek Technologies, Inc. through its subsidiaries -- Southern Flow Companies,
Inc.; PowerSecure, Inc.; and Metretek, Incorporated (Metretek Florida) -- is a
diversified provider of energy measurement products, services and data
management systems to industrial and commercial users and suppliers of natural
gas and electricity.
All forward-looking statements in this release, including but not limited to
statements regarding pending settlements of litigation and an expected
achievement of profitability during mid-year 2003, are made within the meaning
of and under the safe harbor provisions of the Private Securities Reform Act of
1995. Forward-looking statements are all statements other than statements of
historical facts, including statements concerning the plans, intentions,
expectations, projections, hopes, beliefs, objectives, goals and strategies of
management, such as statements about future earnings, revenues, and other future
financial and non-financial items, performance or events; statements about
proposed products, services, technologies or businesses; statements about
raising additional capital; and statements of assumptions underlying any of the
foregoing. Forward-looking statements are not guarantees of future performance
or events and are subject to a number of known and unknown risks, uncertainties
and other factors that could cause actual results to differ materially from
those expressed, projected or implied by such forward-looking statements.
Important risks, uncertainties and other factors include, but are not limited
to, the Company's ability to obtain sufficient capital and liquidity on
favorable terms, to meet its operating, working capital and debt service
requirements and other capital commitments and contingencies and to fund the
growth of its business; the effects of pending and future litigation, claims and
disputes and the resolution thereof, including the proposed settlement of the
class action lawsuit; the timely and successful development, production and
market acceptance of new and enhanced products, services and technologies of the
Company; the successful results from the Company's reorganizing and
restructuring its business; the effects of competition in the Company's markets,
including the introduction of competing products, services and technologies;
customer and industry demand and preferences and purchasing patterns; the
Company's ability to attract, retain and motivate key personnel; the ability of
the Company to secure and maintain key contracts, relationships and alliances
and to make successful acquisitions; changes in the energy industry generally
and in the natural gas and electricity industries in particular, including the
price and market reaction to the deregulation of the natural gas and electricity
markets; general economic, market and business conditions; the effects of the
war with Iraq and terrorism; and other factors identified from time to time in
the Company's reports and filings with the Securities and Exchange Commission,
including but not limited to the Company's Form 10-KSB for the year ended
December 31, 2002. Accordingly, there can be no assurance that the results
expressed, projected or implied by any forward looking statements will be
achieved, and readers are cautioned not to place undue reliance on any
forward-looking statements. The forward-looking statements in this press release
speak only as of the date hereof and are based on the current plans, goals,
objectives, strategies, intentions, expectations and assumptions of, and the
information currently available to, management. The company assumes no duty or
obligation to update or revise any forward-looking statements for any
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reason, whether as the result of changes in expectations, new information,
future events, conditions or circumstances or otherwise.
(financial tables follow)
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METRETEK TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Fourth Quarter Ended Twelve Months Ended
December 31, December 31,
2002 2001 2002 2001 .
-------------- ------------- -------------- -------------
Total revenues.............................. $ 6,559,160 $ 6,584,136 $27,041,505 $29,092,786
Total costs and expenses.................... 8,849,635 6,767,822 30,423,822 30,478,078
-------------- ------------- -------------- -------------
Net loss.................................... (2,290,475) (183,686) (3,382,317)
Preferred stock deemed distribution......... (238,710) (235,302) (851,724) (776,732)
-------------- ------------- -------------- -------------
Net loss applicable to common shareholders.. $ ( 2,529,185) $ (418,988) $(4,234,041) $(2,162,024)
============== ============= ============== =============
NET LOSS PER COMMON SHARE,
BASIC AND DILUTED....................... $ (0.42) $ (0.07) $ (0.70) $ (0.36)
============== ============= ============== =============
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING, BASIC AND DILUTED.......... 6,076,273 6,077,764 6,077,388 6,031,272
============== ============= ============== =============
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
December 31, December 31,
2002 . 2001 .
------------ ------------
Total current assets.................................... $ 8,823,248 $ 9,386,283
Property, plant and equipment, net...................... 1,713,793 2,180,911
Total other assets...................................... 8,626,076 8,588,833
------------ ------------
Total assets............................................ $19,163,117 $20,156,027
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Total current liabilities............................... $ 4,733,162 $ 5,849,317
Long-term notes payable and capital lease
obligations........................................... 4,732,651 1,268,024
Redeemable preferred stock - Series B................... 8,531,941 7,680,217
Total stockholders' equity.............................. 1,165,363 5,358,469
------------ ------------
Total liabilities and stockholders' equity.............. $19,163,117 $20,156,027
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