Metretek Technologies Reports Record First-Quarter Results

  
    
  
  
    
      For the three months ended March 31, 2007, Metretek Technologies, 
      Inc. (Amex:MEK) reported record first-quarter revenues of 
      $27.0 million and record first-quarter net income of $2.2 million, or 
      $0.13 per diluted share, compared to revenues of $14.8 million and net 
      income of $638,000, or $0.04 per diluted share, in the first quarter of 
      2006.
    
    
      "This was the strongest first quarter in the company's history," noted 
      Sidney Hinton, president and chief executive officer of Metretek 
      Technologies. "PowerSecure, which accounted for 80% of total revenues in 
      the quarter, continues to build on its reputation as a premier provider 
      of turnkey distributed generation solutions and is the engine behind 
      Metretek's growth. It reported first-quarter revenues of $21.5 million, 
      more than double the $9.7 million of a year ago, with segment profit of 
      $1.3 million compared to $256,000 in the prior year."
    
    
      Southern Flow enjoyed a strong quarter as well, generating revenues of 
      $3.9 million and segment profit of $620,000. Metretek Florida's 
      operations also enjoyed a strong quarter and were essentially breakeven 
      on revenues of $953,000, a 30% increase over the first quarter of 2006.
    
    
      "As we have noted in the past," concluded Hinton, "PowerSecure's 
      revenues are heavily influenced by the number, size, and timing of 
      various projects, as well as the percentage of in-process projects 
      completed. Accordingly, it is difficult to predict from quarter to 
      quarter just what PowerSecure's — and by 
      extension, the company's — revenues will be. 
      With that understood, 2007 is off to an excellent start, and current 
      indications are that it will be another record year for the company."
    
    
      In a press release of February 21, 2007, the company reaffirmed 
      previously published guidance for the year ending December 31, 2007. 
      Subsequently, the company announced that it would incur pre-tax 
      non-recurring restructuring charges of approximately $14.1 million 
      related to the retirement in April of its two founders and expenses 
      associated with the relocation of its corporate offices from Denver to 
      Wake Forest, North Carolina. These costs will be reflected in the 
      results of operations for the quarter ending June 30, 2007, to be 
      reported in August, at which time the company will address top- and 
      bottom-line guidance for the year. The Company expects that the 
      restructuring and relocation will result in annual savings of 
      approximately $2.4 million, the effects of which will be recognized for 
      accounting purposes commencing in the second half of 2007.
    
    
      Conference Call and Webcast:
    
    
      At 11 a.m. EDT today, May 10, 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 in to the 
      Metretek Technologies conference call.
    
    
      This call can also 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 “2007 
      first-quarter results teleconference.” The 
      Webcast player will open following completion of a brief registration 
      process. The Webcast will also be available at www.earnings.com; 
      to access the call, type in Metretek’s stock 
      symbol, MEK, in the top right corner of the home page to be taken to the 
      Company’s webcast page. These websites will 
      host an archive of the teleconference. Additionally, a telephone 
      playback will be available for 48 hours beginning at 2 p.m. EDT on May 
      10. The playback can be accessed by calling 800-642-1687 (or 
      706-645-9291 for international callers) and providing Conference ID 
      8194707.
    
    
      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 release are made 
      within the meaning of and pursuant to 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 concerning the business 
      operations and prospects for the Company and its subsidiaries; the 
      outlook for the Company’s consolidated 
      revenues and earnings in 2007; and all other statements 
      concerning the plans, intentions, expectations, projections, hopes, 
      beliefs, objectives, goals and strategies of management, including 
      statements about other future financial and non-financial items, 
      performance or events and about present and future products, services, 
      technologies and businesses; and statements of assumptions underlying 
      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 timely and successful 
      development, production and market acceptance of new and enhanced 
      products, services and technologies of the Company’s 
      subsidiaries; the size, timing and terms of sales and orders, including 
      large customer orders, and the risk of customers delaying, deferring or 
      canceling purchase orders or making smaller purchases than expected; the 
      ability of the Company’s subsidiaries to 
      obtain adequate supplies of key components and materials for their 
      products and technologies on a timely and cost-effective basis; the 
      ability of PowerSecure to successfully expand its core distributed 
      generation products and services, to successfully develop and achieve 
      market acceptance of its new energy-related businesses, to manage its 
      growth and to address the effects of any future changes in tariff 
      structures and environmental requirements on its business solutions; the 
      effects from time to time of hurricanes and other severe weather 
      conditions on the demand for Southern Flow’s 
      products and services; the ability of Metretek Florida to successfully 
      develop and expand its products, services, technologies and markets; the 
      effects of competition; changes in customer and industry demand and 
      preferences; the ability of the Company to attract, retain and motivate 
      key personnel; changes in the energy industry in general and the natural 
      gas and electricity markets in particular, including price levels; the 
      effects of competition; the ability of the Company to secure and 
      maintain key contracts and relationships; general economic, market and 
      business conditions; the effects of pending and future litigation, 
      claims and disputes; changes in the energy industry generally and in the 
      natural gas and electricity industries in particular, including price 
      levels; general economic, market and business conditions; and other 
      risks, uncertainties and other factors identified from time to time in 
      the Company's Annual Report on Form 10-K for the year ended December 31, 
      2006, as well as in subsequent filings with the Securities and 
      Exchange Commission, including reports on 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.
    
    
      
        
          METRETEK TECHNOLOGIES, INC. AND SUBSIDIARIES
        
      
      
        
          Consolidated Statements of Operations (unaudited)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          First Quarter Ended
        
      
      
        
        
        
        
        
          March 31,
        
      
      
        
        
        
        
        
          2007 
        
        
        
        
        
        
        
        
          2006 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          REVENUES:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Sales and services
        
        
        
        
          $ 26,368,744 
        
        
        
        
        
        
        
        
          $ 14,736,874 
        
      
      
        
          Other
        
        
        
        
          610,485 
        
        
        
        
        
        
        
        
          95,455 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total revenues
        
        
        
        
          26,979,229 
        
        
        
        
        
        
        
        
          14,832,329 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          COSTS AND EXPENSES:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Cost of sales and services
        
        
        
        
          18,417,233 
        
        
        
        
        
        
        
        
          10,131,362 
        
      
      
        
          General and administrative
        
        
        
        
          5,524,079 
        
        
        
        
        
        
        
        
          3,435,349 
        
      
      
        
          Selling, marketing and service
        
        
        
        
          864,283 
        
        
        
        
        
        
        
        
          759,061 
        
      
      
        
          Depreciation and amortization
        
        
        
        
          342,924 
        
        
        
        
        
        
        
        
          172,406 
        
      
      
        
          Research and development
        
        
        
        
          210,791 
        
        
        
        
        
        
        
        
          177,626 
        
      
      
        
          Interest, finance charges and other
        
        
        
        
          7,320 
        
        
        
        
        
        
        
        
          88,375 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total costs and expenses
        
        
        
        
          25,366,630 
        
        
        
        
        
        
        
        
          14,764,179 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income from operations
        
        
        
        
          1,612,599 
        
        
        
        
        
        
        
        
          68,150 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income from litigation settlements, net
        
        
        
        
          278,334 
        
        
        
        
        
        
        
        
          - 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Equity in income of unconsolidated affiliate
        
        
        
        
          648,560 
        
        
        
        
        
        
        
        
          730,468 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Minority interest
        
        
        
        
          - 
        
        
        
        
        
        
        
        
          (72,464)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income taxes
        
        
        
        
          (306,137)
        
        
        
        
        
        
        
        
          (88,515)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Income
        
        
        
        
          $ 2,233,356 
        
        
        
        
        
        
        
        
          $ 637,639 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          EARNINGS PER SHARE AMOUNTS:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Basic
        
        
        
        
          $ 0.14 
        
        
        
        
        
        
        
        
          $ 0.05 
        
      
      
        
          Diluted
        
        
        
        
          $ 0.13 
        
        
        
        
        
        
        
        
          $ 0.04 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          WEIGHTED AVERAGE COMMON
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          SHARES OUTSTANDING:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Basic
        
        
        
        
          15,830,475 
        
        
        
        
        
        
        
        
          13,183,784 
        
      
      
        
          Diluted
        
        
        
        
          17,020,123 
        
        
        
        
        
        
        
        
          15,151,903 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Condensed Consolidated Balance Sheets (unaudited)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          March 31,
        
        
        
        
        
        
        
        
          December 31,
        
      
      
        
        
        
        
        
          2007 
        
        
        
        
        
        
        
        
          2006 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total current assets
        
        
        
        
          $ 64,839,281 
        
        
        
        
        
        
        
        
          $ 70,536,009 
        
      
      
        
          Property, plant and equipment, net
        
        
        
        
          4,536,738 
        
        
        
        
        
        
        
        
          4,443,879 
        
      
      
        
          Total other assets
        
        
        
        
          14,858,145 
        
        
        
        
        
        
        
        
          14,719,547 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total Assets
        
        
        
        
          $ 84,234,164 
        
        
        
        
        
        
        
        
          $ 89,699,435 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          
            Total current liabilities
          
        
        
        
        
          $ 23,645,416 
        
        
        
        
        
        
        
        
          $ 31,692,373 
        
      
      
        
          Total noncurrent liabilities
        
        
        
        
          291,497 
        
        
        
        
        
        
        
        
          7,431 
        
      
      
        
          Total stockholders' equity
        
        
        
        
          60,297,251 
        
        
        
        
        
        
        
        
          57,999,631 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total liabilities and stockholders' equity
        
        
        
        
          $ 84,234,164 
        
        
        
        
        
        
        
        
          $ 89,699,435