Metretek Technologies Reports Third-Quarter Revenues and Net Income

  
    
  
  
    
      For the three months ended September 30, 2006, Metretek Technologies, 
      Inc. (AMEX:MEK) reported quarterly revenues of $33.4 million and net 
      income of $2.9 million, or $0.17 per diluted share ($0.19 per basic 
      share). In the comparable period a year ago, the Company reported 
      revenues of $10.2 million and net income of $169,000, or $0.01 per 
      diluted and basic share.
    
    
      For the nine months ended September 30, 2006, the Company reported 
      record revenues of $84.5 million and record net income of $7.8 million, 
      or $0.47 per diluted share ($0.52 per basic share), compared to revenues 
      of $32.0 million and net income of $825,000, or $0.06 per diluted share 
      ($0.07 per basic share) for the first nine months of 2005.
    
    
      “We are extremely pleased with the performance 
      of all business segments during the quarter,” 
      said W. Phillip Marcum, president and chief executive officer. “PowerSecure 
      reported another exceptional quarter with $28.2 million in revenues, and 
      Southern Flow remains solidly profitable, with revenues up 27% versus 
      the same period a year ago.
    
    
      “In short,” said 
      Marcum, “we continue to execute our business 
      plan and believe that we are on track to meet our 2006 financial goals, 
      as well as goals set for 2007. Moreover, we continue to view the future 
      with optimism. Our balance sheet remains exceptionally strong and is, we 
      believe, more than adequate to fund the continuing growth of the 
      Company. At September 30, we had $18 million in cash and cash 
      equivalents, $34 million in working capital, no long-term debt, zero 
      balance on our credit lines, and stockholders’ 
      equity of $54 million.”
    
    
      According to Sidney Hinton, president and CEO of PowerSecure, “I 
      am extremely pleased with our success and progress in addressing the 
      challenges cited last quarter relative to dealing with our incredible 
      growth. Our success in dealing with these issues is beginning to show up 
      in our results, as evidenced by a third-quarter improvement in gross 
      margins, and we anticipate additional margin improvements in future 
      quarters. I would be remiss if I did not recognize the Herculean efforts 
      put forth by our tireless, dedicated and innovative employees in making 
      this success a reality.”
    
    
      Guidance Update for 2006:
    
    
      The Company is reaffirming its previously issued net income guidance for 
      2006, with net income anticipated to be in the range of $11 million to 
      $12 million, or $0.68 to $0.72 per diluted share ($0.76 to $0.80 per 
      basic share). Sales in 2006 are now expected to be approximately $117 
      million. The estimate of 2006 earnings per share includes approximately 
      $800,000 ($0.05 per diluted and basic share) of non-cash stock and stock 
      option compensation expense.
    
    
      Initial Guidance for 2007:
    
    
      For its fiscal year 2007, the Company anticipates net income of 
      approximately $15.5 million on total revenues of approximately $137 
      million, or $0.89 per diluted share ($0.97 per basic share). Estimated 
      2007 results include non-cash stock option compensation expense of 
      approximately $900,000 ($0.05 per diluted and basic share).
    
    
      Conference Call and Webcast:
    
    
      At 9 a.m. MST (11 a.m. EST) today, November 6, 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.
    
    
      The call is also 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 “2006 third-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. For those unable to 
      attend, these websites will host an archive of the call.
    
    
      A telephone playback will be available beginning at noon MST on November 
      6 through 10 p.m. MST on November 8. The playback can be accessed by 
      calling 800-642-1687 (or 706-645-9291 for international callers) and 
      providing Conference ID 1135533.
    
    
      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 2006 and 2007; continued improvements in 
      PowerSecure’s gross margins; 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, service, 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 fiscal year ended 
      December 31, 2005, 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.
        
      
      
        
          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          Third Quarter Ended
        
        
        
        
          Nine Months Ended
        
      
      
        
        
        
        
        
          September 30,
        
        
        
        
          September 30,
        
      
      
        
        
        
        
        
          2006 
        
        
        
        
          2005 
        
        
        
        
          2006 
        
        
        
        
          2005 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total revenues
        
        
        
        
          $ 33,445,133 
        
        
        
        
          $ 10,176,788 
        
        
        
        
          $84,520,873 
        
        
        
        
          $32,023,186 
        
      
      
        
          Total costs and expenses
        
        
        
        
          31,011,128 
        
        
        
        
          10,372,139 
        
        
        
        
          78,289,431 
        
        
        
        
          32,054,550 
        
      
      
        
          Operating income (loss)
        
        
        
        
          2,434,005 
        
        
        
        
          (195,351)
        
        
        
        
          6,231,442 
        
        
        
        
          (31,364)
        
      
      
        
          Equity income
        
        
        
        
          627,020 
        
        
        
        
          418,690 
        
        
        
        
          1,878,462 
        
        
        
        
          1,340,731 
        
      
      
        
          Minority interest
        
        
        
        
          - 
        
        
        
        
          (51,789)
        
        
        
        
          (72,464)
        
        
        
        
          (168,354)
        
      
      
        
          Income taxes
        
        
        
        
          (150,496)
        
        
        
        
          (2,405)
        
        
        
        
          (262,010)
        
        
        
        
          (15,690)
        
      
      
        
          Income from continuing operations
        
        
        
        
          2,910,529 
        
        
        
        
          169,145 
        
        
        
        
          7,775,430 
        
        
        
        
          1,125,323 
        
      
      
        
          Loss from disposal of discontinued operations
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          (300,000)
        
      
      
        
          Net income
        
        
        
        
          $ 2,910,529 
        
        
        
        
          $ 169,145 
        
        
        
        
          $ 7,775,430 
        
        
        
        
          $ 825,323 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          BASIC EARNINGS (LOSS) PER COMMON SHARE:
        
        
        
        
        
        
        
        
        
      
      
        
          Income from continuing operations
        
        
        
        
          $ 0.19 
        
        
        
        
          $ 0.01 
        
        
        
        
          $ 0.52 
        
        
        
        
          $ 0.09 
        
      
      
        
          Loss from discontinued operations
        
        
        
        
          0.00 
        
        
        
        
          0.00 
        
        
        
        
          0.00 
        
        
        
        
          (0.02)
        
      
      
        
          Income per common share
        
        
        
        
          $ 0.19 
        
        
        
        
          $ 0.01 
        
        
        
        
          $ 0.52 
        
        
        
        
          $ 0.07 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          DILUTED EARNINGS (LOSS) PER COMMON SHARE:
        
        
        
        
        
        
        
        
        
      
      
        
          Income from continuing operations
        
        
        
        
          $ 0.17 
        
        
        
        
          $ 0.01 
        
        
        
        
          $ 0.47 
        
        
        
        
          $ 0.08 
        
      
      
        
          Loss from discontinued operations
        
        
        
        
          0.00 
        
        
        
        
          0.00 
        
        
        
        
          0.00 
        
        
        
        
          (0.02)
        
      
      
        
          Income per common share
        
        
        
        
          $ 0.17 
        
        
        
        
          $ 0.01 
        
        
        
        
          $ 0.47 
        
        
        
        
          $ 0.06 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          WEIGHTED AVERAGE COMMON SHARES OUTSTANDING,
        
        
        
        
        
        
        
        
        
      
      
        
          BASIC
        
        
        
        
          15,730,954 
        
        
        
        
          12,289,743 
        
        
        
        
          14,818,667 
        
        
        
        
          12,248,096 
        
      
      
        
          DILUTED
        
        
        
        
          17,250,856 
        
        
        
        
          13,456,174 
        
        
        
        
          16,507,783 
        
        
        
        
          12,912,244 
        
      
    
    
      
        
          CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          September 30,
        
        
        
        
          December 31,
        
      
      
        
        
        
        
        
          2006 
        
        
        
        
          2005 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total current assets
        
        
        
        
          $64,850,258 
        
        
        
        
          $18,234,054 
        
      
      
        
          Property, plant and equipment, net
        
        
        
        
          3,893,989 
        
        
        
        
          3,213,294 
        
      
      
        
          Total other assets
        
        
        
        
          15,629,617 
        
        
        
        
          11,871,578 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total assets
        
        
        
        
          $84,373,864 
        
        
        
        
          $33,318,926 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total current liabilities
        
        
        
        
          $30,588,541 
        
        
        
        
          $13,322,898 
        
      
      
        
          Long-term notes payable and capital lease obligations
        
        
        
        
          7,835 
        
        
        
        
          3,596,733 
        
      
      
        
          Minority interest in subsidiaries
        
        
        
        
          - 
        
        
        
        
          169,755 
        
      
      
        
          Total stockholders' equity
        
        
        
        
          53,777,488 
        
        
        
        
          16,229,540 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total liabilities and stockholders' equity
        
        
        
        
          $84,373,864 
        
        
        
        
          $33,318,926 
        
      
    
  
For the three months ended September 30, 2006, Metretek
Technologies, Inc. (AMEX:MEK) reported quarterly revenues of
$33.4 million and net income of $2.9 million, or $0.17 per diluted
share ($0.19 per basic share). In the comparable period a year ago,
the Company reported revenues of $10.2 million and net income of
$169,000, or $0.01 per diluted and basic share.

   For the nine months ended September 30, 2006, the Company reported
record revenues of $84.5 million and record net income of
$7.8 million, or $0.47 per diluted share ($0.52 per basic share),
compared to revenues of $32.0 million and net income of $825,000, or
$0.06 per diluted share ($0.07 per basic share) for the first nine
months of 2005.

   "We are extremely pleased with the performance of all business
segments during the quarter," said W. Phillip Marcum, president and
chief executive officer. "PowerSecure reported another exceptional
quarter with $28.2 million in revenues, and Southern Flow remains
solidly profitable, with revenues up 27% versus the same period a year
ago.

   "In short," said Marcum, "we continue to execute our business plan
and believe that we are on track to meet our 2006 financial goals, as
well as goals set for 2007. Moreover, we continue to view the future
with optimism. Our balance sheet remains exceptionally strong and is,
we believe, more than adequate to fund the continuing growth of the
Company. At September 30, we had $18 million in cash and cash
equivalents, $34 million in working capital, no long-term debt, zero
balance on our credit lines, and stockholders' equity of $54 million."

   According to Sidney Hinton, president and CEO of PowerSecure, "I
am extremely pleased with our success and progress in addressing the
challenges cited last quarter relative to dealing with our incredible
growth. Our success in dealing with these issues is beginning to show
up in our results, as evidenced by a third-quarter improvement in
gross margins, and we anticipate additional margin improvements in
future quarters. I would be remiss if I did not recognize the
Herculean efforts put forth by our tireless, dedicated and innovative
employees in making this success a reality."

   Guidance Update for 2006:

   The Company is reaffirming its previously issued net income
guidance for 2006, with net income anticipated to be in the range of
$11 million to $12 million, or $0.68 to $0.72 per diluted share ($0.76
to $0.80 per basic share). Sales in 2006 are now expected to be
approximately $117 million. The estimate of 2006 earnings per share
includes approximately $800,000 ($0.05 per diluted and basic share) of
non-cash stock and stock option compensation expense.

   Initial Guidance for 2007:

   For its fiscal year 2007, the Company anticipates net income of
approximately $15.5 million on total revenues of approximately $137
million, or $0.89 per diluted share ($0.97 per basic share). Estimated
2007 results include non-cash stock option compensation expense of
approximately $900,000 ($0.05 per diluted and basic share).

   Conference Call and Webcast:

   At 9 a.m. MST (11 a.m. EST) today, November 6, 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.

   The call is also 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 "2006 third-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. For those
unable to attend, these websites will host an archive of the call.

   A telephone playback will be available beginning at noon MST on
November 6 through 10 p.m. MST on November 8. The playback can be
accessed by calling 800-642-1687 (or 706-645-9291 for international
callers) and providing Conference ID 1135533.

   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 2006
and 2007; continued improvements in PowerSecure's gross margins; 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, service, 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 fiscal year ended
December 31, 2005, 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.

-0-
*T
                     METRETEK TECHNOLOGIES, INC.
     CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

                      Third Quarter Ended        Nine Months Ended
                         September 30,             September 30,
                      2006         2005         2006         2005
                   ------------ ------------ ------------ ------------

Total revenues     $33,445,133  $10,176,788  $84,520,873  $32,023,186
Total costs and
 expenses           31,011,128   10,372,139   78,289,431   32,054,550
                   ------------ ------------ ------------ ------------
Operating income
 (loss)              2,434,005     (195,351)   6,231,442      (31,364)
Equity income          627,020      418,690    1,878,462    1,340,731
Minority interest            -      (51,789)     (72,464)    (168,354)
Income taxes          (150,496)      (2,405)    (262,010)     (15,690)
                   ------------ ------------ ------------ ------------
Income from
 continuing
 operations          2,910,529      169,145    7,775,430    1,125,323
Loss from disposal
 of discontinued
 operations                  -            -            -     (300,000)
                   ------------ ------------ ------------ ------------
Net income          $2,910,529     $169,145   $7,775,430     $825,323
                   ============ ============ ============ ============

BASIC EARNINGS (LOSS) PER COMMON SHARE:
   Income from
    continuing
    operations           $0.19        $0.01        $0.52        $0.09
   Loss from
    discontinued
    operations            0.00         0.00         0.00        (0.02)
                   ------------ ------------ ------------ ------------
   Income per
    common share         $0.19        $0.01        $0.52        $0.07
                   ============ ============ ============ ============

DILUTED EARNINGS (LOSS) PER COMMON SHARE:
   Income from
    continuing
    operations           $0.17        $0.01        $0.47        $0.08
   Loss from
    discontinued
    operations            0.00         0.00         0.00        (0.02)
                   ------------ ------------ ------------ ------------
   Income per
    common share         $0.17        $0.01        $0.47        $0.06
                   ============ ============ ============ ============

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING,
     BASIC          15,730,954   12,289,743   14,818,667   12,248,096
                   ============ ============ ============ ============
     DILUTED        17,250,856   13,456,174   16,507,783   12,912,244
                   ============ ============ ============ ============
*T

-0-
*T
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

                                            September 30, December 31,
                                                2006         2005
                                            ------------- ------------

Total current assets                         $64,850,258  $18,234,054
Property, plant and equipment, net             3,893,989    3,213,294
Total other assets                            15,629,617   11,871,578
                                            ------------- ------------

Total assets                                 $84,373,864  $33,318,926
                                            ============= ============

Total current liabilities                    $30,588,541  $13,322,898
Long-term notes payable and capital lease
 obligations                                       7,835    3,596,733
Minority interest in subsidiaries                      -      169,755
Total stockholders' equity                    53,777,488   16,229,540
                                            ------------- ------------

Total liabilities and stockholders' equity   $84,373,864  $33,318,926
                                            ============= ============
*T