Metretek (AMEX:MEK)
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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