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
PROFITABLE FOURTH QUARTER
AND RECORD REVENUES IN 2003
DENVER - MARCH 30, 2004 - For the three months ended December 31, 2003, METRETEK
TECHNOLOGIES, INC. (OTCBB: MTEK) reported net income applicable to common
shareholders of $173,000, or $0.03 per share, on revenues of $8.8 million,
compared to a net loss applicable to common shareholders of $2.5 million, or
$0.42 per share, on revenues of $6.7 million for the three months ended December
31, 2002.
According to W. Phillip Marcum, chairman and CEO, $1.8 million of the $2.1
million increase in fourth-quarter revenues came from higher sales at the
Company's PowerSecure subsidiary.
For the twelve months ended December 31, 2003, the Company reported record
revenues of $39.3 million, an increase of 44% over revenues of $27.3 million in
2002. The year-over-year increase in revenues is attributable principally to a
50% increase in revenues at Metretek Florida, from $6.5 million to $9.8 million,
and a 108% increase in revenues at PowerSecure, from $8.2 million to $17.1
million. For the year, net loss applicable to common shareholders was $11,000,
or $0.00 per share, compared to a net loss applicable to common shareholders of
$4.2 million, or $0.70 per share, in 2002.
"Record revenues in 2003 can be attributed in large part to the fact that
PowerSecure aggressively expanded the marketing of its Interactive Distributed
Generation(TM) systems to commercial and industrial users of electricity,
winning a number of large contracts while expanding its internal services," said
Marcum. "With an increasingly effective sales effort and growing visibility
within the marketplace, we look for further expansion of PowerSecure's business
in 2004."
"Metretek Florida also had a good year with the introduction of the
InvisiConnect(TM) and DCM product lines -- new M2M cellular IP-based
connectivity solutions (covered by a recent patent application) that provide
secure and seamless alternatives to obsolete telemetry solutions for remote data
collection," continued Marcum.
Adjusted EBITDA for fiscal 2003 was $2,120,000 compared to $(452,000) for fiscal
2002, a $2,572,000 improvement that reflects the underlying strength of the
Company's operational performance in 2003. "However," said Marcum, "the Company
still faces some significant challenges, including addressing its Preferred
Stock before its mandatory redemption date on December 9, 2004. The Company also
must successfully conclude the final stages of the Class Action litigation
settlement."
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As computed by the Company, Adjusted EBITDA is a non-GAAP financial measure (as
such term is defined by the Securities and Exchange Commission) computed as net
income (loss) applicable to common shareholders before interest and finance
charges, income taxes, depreciation and amortization, provision for litigation
costs, nonrecurring charges, minority interest, and preferred stock deemed
distribution.
By eliminating certain expenses not necessarily indicative of the results of the
Company's core operations, management believes that Adjusted EBITDA offers a
useful tool to measure and monitor the Company's operating performance, and
provides meaningful information to investors in terms of enhancing their
understanding of the Company's core operating performance and results. Adjusted
EBITDA is also used by management to assist in planning and forecasting future
operations. However, Adjusted EBITDA as defined by the Company may not be
directly comparable to similarly defined measures as reported by other
companies. Adjusted EBITDA should be considered only as a supplement to, and not
as a substitute for or in isolation from, other measures of financial
performance and liquidity reported in accordance with generally accepted
accounting principles ("GAAP"), such as net income (loss) applicable to common
shareholders.
According to Marcum, management anticipates that 2004 revenues will be in the
range of $45 million to $50 million, fueled principally by top-line growth of
25% to 40% at PowerSecure and Metretek Florida; 2004 earnings per share are
expected to exceed $0.10. Also, as previously announced, the Company expects to
report a loss of approximately $0.05 per share on revenues of approximately $9
million for the first quarter of 2004, which compares favorably to a loss of
$0.14 per share on revenues of $7.4 million recorded in the first quarter of
2003.
Conference Call and Webcast:
At 10 a.m. MST (noon EST) on March 31, 2004, the Company will hold a
teleconference to discuss the financial results and future plans and prospects.
To participate in the teleconference, please call (toll free) 800-291-8929 (or
706-634-0478 for international callers) approximately 10 minutes prior to the
start time and indicate that you are dialing into the Metretek Technologies
conference call.
This call is being Webcast and can be accessed live via the Internet at the
Company's Website, www.metretek.com; to access the call, click on the "Investor
Info" button and then click on the icon for the "2003 fourth-quarter results
teleconference." The Webcast player will open following completion of a brief
registration process. The Webcast will also be available at
www.FullDisclosure.com. To access the call, type in Metretek's stock symbol,
MTEK, in the top right corner of the FullDisclosure home page to be taken to the
Company's Webcast page. These Websites will host an archive of the
teleconference. Additionally, a playback of the call will be available for 48
hours beginning at 3 p.m. EST on March 31. You may access the playback by
calling 800-642-1687 (or for international callers 706-645-9291) and providing
Conference ID number 6379815.
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 contained in this press release are made within
the meaning of and under the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are all statements
other than statements of historical facts, including but not limited to
statements regarding expected growth
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within Metretek's subsidiaries and the outlook for consolidated revenues and
earnings in 2004, and all other 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 markets for the products and services of Metretek Florida,
including the contract manufacturing operations of MCM, and management's
expectations of any strengthening thereof; 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; general economic, market and business conditions; the effects of
international conflicts 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-K for the year
ended December 31, 2003 and subsequently filed Forms 10-Q and 8-K. 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 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,
2003 2002 2003 2002
------------ ------------ ------------ ------------
Total revenues $ 8,759,000 $ 6,671,390 $ 39,311,725 $ 27,302,735
Total costs and expenses 8,260,445 8,948,212 38,168,480 30,639,543
------------ ------------ ------------ ------------
Operating income (loss) 498,555 (2,276,822) 1,143,245 (3,336,808)
Minority interest (85,510) -- (207,280) --
Income taxes (12,016) (13,653) (56,980) (45,509)
------------ ------------ ------------ ------------
Net income (loss) 401,029 (2,290,475) 878,985 (3,382,317)
Preferred stock deemed distribution (227,991) (238,710) (890,191) (851,724)
------------ ------------ ------------ ------------
Net income (loss) applicable to common shareholders $ 173,038 $ (2,529,185) $ (11,206) $ (4,234,041)
============ ============ ============ ============
NET INCOME (LOSS) PER COMMON SHARE:
BASIC $ 0.03 $ (0.42) $ (0.00) $ (0.70)
============ ============ ============ ============
DILUTED $ 0.03 $ (0.42) $ (0.00) $ (0.70)
============ ============ ============ ============
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING:
BASIC 6,043,469 6,076,273 6,043,469 6,077,388
============ ============ ============ ============
DILUTED 6,393,432 6,076,273 6,043,469 6,077,388
============ ============ ============ ============
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
December 31, December 31,
2003 2002
----------- -----------
Total current assets $13,248,168 $ 8,866,871
Property, plant and equipment, net 1,405,350 1,713,793
Total other assets 8,673,023 8,618,777
----------- -----------
Total assets $23,326,541 $19,199,441
=========== ===========
Total current liabilities $ 7,284,539 $ 4,769,486
Long-term notes payable and capital lease obligations 5,243,433 4,732,651
Minority interest in subsidiaries 207,280 --
Redeemable preferred stock-Series B 9,422,132 8,531,941
Total stockholders' equity 1,169,157 1,165,363
----------- -----------
Total liabilities and stockholders' equity $23,326,541 $19,199,441
=========== ===========
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RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)
APPLICABLE TO COMMON SHAREHOLDERS
In accordance with Regulation G, set forth below is a reconciliation of Adjusted
EBITDA, a non-GAAP financial measure, to net income (loss) applicable to common
shareholders, its most directly comparable financial measure computed in
accordance with GAAP.
Fourth Quarter Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
----------- ----------- ----------- -----------
Net income (loss) applicable to common shareholders $ 173,038 $(2,529,185) $ (11,206) $(4,234,041)
Add back:
Interest and finance charges 74,924 68,889 285,437 205,234
Income taxes 12,016 13,653 56,980 45,509
Depreciation and amortization 172,406 172,073 690,859 658,417
Provision for litigation costs, net -- 1,763,723 -- 1,763,723
Nonrecurring charges -- -- -- 257,504
Minority interest 85,510 -- 207,280 --
Preferred stock deemed distribution 227,991 238,710 890,191 851,724
----------- ----------- ----------- -----------
Adjusted EBITDA $ 745,885 $ (272,137) $ 2,119,541 $ (451,930)
=========== =========== =========== ===========
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