Exhibit 99.1
W. Phillip Marcum Philip Bourdillon/Gene Heller
Chairman and CEO Silverman Heller Associates
303-785-8080 310-208-2550
METRETEK TECHNOLOGIES REPORTS
FIRST-QUARTER 2005 RESULTS
DENVER - MAY 16, 2005 - For the three months ended March 31, 2005, METRETEK
TECHNOLOGIES, INC. (OTCBB: MTEK) reported revenues of $7.8 million and income
from continuing operations of $22,000, or $0.00 per share on 12,733,632 diluted
weighted average common shares outstanding. In the comparable period a year ago,
the Company reported revenues of $8.4 million and income from continuing
operations of $339,000, or $0.01 per share on 6,815,957 diluted weighted average
common shares outstanding. Including losses on discontinued operations, the
first-quarter 2005 net loss was $278,000, compared to the first-quarter 2004 net
income of $4,000.
The increase in weighted average common shares outstanding reflects several
equity transactions completed in 2004, including a private placement of
approximately 3.5 million shares of common stock, related transactions that
resulted in the conversion of 2,750 shares of preferred stock to 1.4 million
shares of common stock, and the acquisition of the outstanding minority
shareholder interest in the Company's PowerSecure subsidiary via the issuance of
950,000 shares of common stock.
According to W. Phillip Marcum, president and chief executive officer, "While
revenues and net income decreased slightly from the prior year, we remain very
pleased with the overall progress of all of our business operations. As we have
noted in the past," said Marcum, "significant quarterly revenue fluctuations are
inherent in the Company's operations, particularly within its PowerSecure
subsidiary. Overall, we remain very much on track to meet our guidance estimates
and we are reaffirming our guidance for 2005."
As previously stated, 2005 revenues are expected to be in the range of $41
million to $42 million, with net income of approximately $3.0 million, or
approximately $0.25 per basic share.
The decrease in consolidated revenues stems from lower revenues at both Metretek
Florida and PowerSecure, partially offset by slightly higher revenues at
Southern Flow due primarily to higher natural gas prices. "Lower revenues at
Metretek Florida ($644,000 compared to $875,000 a year ago) reflect shipments
that were deferred to the second quarter due to delays related to the transition
of production activities from internal to external contract manufacturers," said
Marcum. "The decrease in PowerSecure revenues, to $3.8 million from $4.2 million
a year ago, is attributable to normal quarterly fluctuations, typically
resulting from project timelines and the timing of revenue recognition on larger
turnkey distributed generation projects."
The purchaser of Metretek Florida's contract manufacturing business, which the
Company discontinued in the third quarter of 2004, recently notified the Company
that it intends to terminate operations of the acquired business. As a result of
this development, the Company conducted a preliminary review of its provisions
related
to disposal of the discontinued manufacturing operation. Based upon this
analysis, the Company's first quarter 2005 results include an additional
$300,000 non-cash charge for losses that are expected to be incurred on the
disposal of remaining assets of the discontinued operation.
Adjusted EBITDA:
Adjusted EBITDA for the three months ended March 31, 2005 was $378,000, compared
to $636,000 for the three months ended March 31, 2004, a $258,000 decrease. 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
income from continuing operations before interest and finance charges, income
taxes, depreciation and amortization, and minority interest.
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.
Conference Call and Webcast:
At 2:30 p.m. MDT (4:30 p.m. EDT) today, May 16, the Company will hold a
teleconference to discuss the financial results and future plans and prospects.
To participate in the teleconference, please call 800-291-8929 (or 706-634-0478
for international callers) approximately 10 minutes prior to the start time and
indicate that you are dialing in to 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 "2005 first-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 5:30 p.m. MDT on May 16; you may access the playback by
calling 800-642-1687 (or for international callers 706-645-9291) and providing
Conference ID number 6168811.
About Metretek Technologies:
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.
Safe-Harbor Statement:
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 the business prospects for the Company and its
subsidiaries; the outlook for consolidated revenues and earnings in 2005; the
amount the Company expects to recover from the assets of its discontinued
operations; 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; 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, 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 and subsequently filed reports. 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)
METRETEK TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
First Quarter Ended
March 31,
2005 2004
------------ ------------
Total revenues $ 7,810,637 $ 8,414,310
Total costs and expenses 8,261,572 8,357,153
------------ ------------
Operating income (loss) (450,935) 57,157
Minority interest (71,124) (74,510)
Income taxes (13,285) (11,955)
Equity income 557,255 368,419
------------ ------------
Income from continuing operations 21,911 339,111
Loss on discontinued operations (300,000) (334,786)
------------ ------------
Net income (loss) $ (278,089) $ 4,325
============ ============
BASIC EARNINGS (LOSS) PER COMMON SHARE:
Income from continuing operations $ 0.00 $ 0.01
Loss from discontinued operations (0.02) (0.05)
------------ ------------
Income (loss) per common share $ (0.02) $ (0.04)
============ ============
DILUTED EARNINGS (LOSS) PER COMMON SHARE:
Income from continuing operations $ 0.00 $ 0.01
Loss from discontinued operations (0.02) (0.05)
------------ ------------
Income (loss) per common share $ (0.02) $ (0.04)
============ ============
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING,
BASIC 12,194,720 6,111,945
============ ============
DILUTED 12,733,632 6,815,957
============ ============
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
March 31, December 31,
2005 2004
----------- -----------
Total current assets $12,587,944 $15,394,937
Property, plant and equipment, net 3,110,407 2,737,130
Total other assets 11,860,944 12,078,849
----------- -----------
Total assets $27,559,295 $30,210,916
=========== ===========
Total current liabilities $ 8,858,502 $10,278,052
Long-term notes payable and capital lease obligations 5,141,011 6,082,159
Liabilities of discontinued operations 692,973 843,649
Minority interest in subsidiaries 105,792 89,792
Total stockholders' equity 12,761,017 12,917,264
----------- -----------
Total liabilities and stockholders' equity $27,559,295 $30,210,916
=========== ===========
- more -
METRETEK TECHNOLOGIES, INC.
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME
In accordance with Regulation G, set forth below is a reconciliation of adjusted
EBITDA, a non-GAAP financial measure, to income from continuing operations, its
most directly comparable financial measure computed in accordance with GAAP.
First Quarter Ended
March 31,
2005 2004
-------- --------
Income from continuing operations $ 21,911 $339,111
Add back:
Interest and finance charges 147,198 80,189
Income taxes 13,285 11,955
Depreciation and amortization 124,441 129,955
Minority interest 71,124 74,510
-------- --------
Adjusted EBITDA $377,959 $635,720
======== ========
# # #