STAMFORD, CT–(Marketwired – May 02, 2017) – Revolution Lighting Technologies, Inc. (RVLT) (“Revolution Lighting”), a leading provider of advanced LED lighting solutions, today announced financial results for the first quarter (Q1) ended March 31, 2017.
- Revenues of $30.6 million for Q1 2017, an increase of 11% over Q1 2016
- Gross margin of 33% with Adjusted EBITDA loss of $0.4 million
- Non-GAAP net loss (excluding acquisition related costs and stock-based compensation) of $3.2 million or $0.15 per share
“I am pleased with our financial and operational performance to begin 2017. We achieved sales of $30.6 million in the seasonally slow first quarter of 2017, an increase of 11% from the prior year,” said Robert V. LaPenta, Chairman, CEO and President of Revolution Lighting Technologies. “During the quarter we continued the expansion of our sales and marketing team, adding internal resources in our regional sales management, national account, government, and control areas. In addition, we expanded our agent and representative network to over 60 at the end of the first quarter. We are seeing a robust LED pipeline and expect the expanded marketing resources to begin contributing to our sales beginning in the second quarter and accelerating throughout the year.”
Recent Business Highlights:
- Received the United States Navy certification of our advanced LED tube for use throughout the entire U.S. Navy Fleet. The National Stock Number is 6240-01-610-2124, for our two foot LED tube.
- Opened a new 60,000 square foot facility in Simi Valley, California to support the production of Buy American Act (BAA) and Trade Agreement Act (TAA) LED Tubes. We are ramping up production dramatically and currently have a backlog of over 100,000 BAA compliant products, which we expect to ship in the second quarter.
- Secured a new agreement, through our division Energy Source, for Connecticut’s Small Business Energy Advantage (SBEA) program, administered by The United Illuminating Company. This is in addition to the Eversource Small Business Energy Advantage program award announced previously, representing a potential market of over $30 million annually.
- Continued the expansion of our agent and rep network to over 60 as of March 31st, 2017, in addition to distributors, electrical supply companies and direct sales.
- Awarded $5.2 million as part of recent multi-family project development.
- Awarded $4.0 million for recent LED retrofit projects among public education facilities located in Rhode Island, New Jersey, New York and Connecticut. These recent program wins, coupled with previous 2016 LED retrofit projects among primary and higher education institutions, exceed $20.0 million.
- Began shipment of our industry leading flat panel fixtures as we see an acceleration towards fixtures versus LED tubes, resulting in higher selling prices and improved margins.
- Installed our Buy American Act compliant LED tubes on the Battleship NJ, the historic memorial and museum, reducing the vessel’s lighting energy use by 72%.
- Subsequent to quarter end, we were awarded several important contracts with one of the largest retailers in the world, Tinker Air Force Base and a leading supplier of energy efficient products.
Quarter Ended March 31, 2017
For the quarter ended March 31, 2017, total revenue was $30.6 million, compared to $27.6 million in Q1 2016, representing an increase of 11%. The increase in revenue reflects strong volume growth in product sales, as the demand for LED lighting continues to rise. Overall revenue growth was impacted by lower prices in certain retrofit and related-LED products in 2017 offset by an improved product mix of fixtures when compared to early 2016. Gross profit was $10.1 million and $9.1 million for the first quarters of 2017 and 2016, respectively. Gross profit margin for both periods was approximately 33%.
Adjusted EBITDA (as defined below) for the three months ended March 31, 2017 was in line with expectations at the near break-even level ($0.4 million loss) compared to $0.8 million for the comparable period in 2016. The Company reported an operating loss of $4.2 million for the three months ended March 31, 2017, as compared to a loss of $2.0 million in the same period in 2016, reflecting added sales and marketing costs, higher non-cash intangible asset amortization charges relating to the 2016 TNT acquisition and an increase in stock-based compensation due to our higher stock price. We also experienced one-time charges associated with the consolidation of three locations into one new state of the art facility in Simi Valley, California, which is expected to be completed in the second quarter and eliminate duplicate operating costs as we shut down our other operations. In addition, operating expenses include the effect of our investment in sales and marketing resources that were made in the later part of 2016.
Reported GAAP net loss for the three months ended March 31, 2017 was $5.0 million compared to a loss of $2.6 million for the comparable period in 2016, and reflect the aforementioned. Basic and diluted GAAP loss per share attributable to common stockholders was $0.24 for the quarter ended March 31, 2017 as compared to a loss per share of $0.16 for the same period in 2016. Excluding the one-time acquisition, work force reductions and stock-based compensation, the non-GAAP net loss per share was $0.15 in 2017 compared to a loss of $0.06 in 2016.
Liquidity Position
Cash used in operating activities in the first quarter of 2017 primarily reflects an investment in inventory in preparation of the expected sales increase in the second quarter.
On January 26, 2017, Revolution Lighting entered into an amended Revolving Credit Facility, which enables the Company to borrow up to $50.0 million on a revolving basis, based upon specified percentages of eligible receivables and inventory.
Guidance
- The Company expects Q2 2017 revenue in the $43 – $45 million range and Adjusted EBITDA of approximately 8%.
- The Company expects full year 2017 revenue in the $195 – $205 million range, an increase of 13% – 19% over 2016, Adjusted EBITDA of approximately 10%, and non-GAAP net income (excluding acquisition related costs and stock-based compensation) in the $0.40 – $0.45 per share range.
- The Company expects to have positive free cash flow for the year in the $15 – $20 million range.
Further information on Revolution Lighting Technologies’ quarterly results can be found in the Company’s Form 10-Q for the quarter ended March 31, 2017, filed with the U.S. Securities and Exchange Commission (SEC) and may be accessed on the SEC’s website at www.sec.gov.
Q1 2017 Conference Call
Revolution Lighting Technologies will host a conference call and live audio webcast to discuss these financial results at 11 a.m. ET on May 2, 2017. To access the conference call by phone, dial 1-877-326-9228 for the U.S. and 1-412-317-5110 for international callers. All Participants should request to be joined into the Revolution Lighting Technologies Call. The webcast will be available on the Company’s website at www.rvlti.com. An audio replay of the call will also be available to investors by phone beginning at approximately 2 p.m. ET on May 2, 2017 until 11:59 p.m. ET on May 16, 2017 by dialing 1-877-344-7529 within the U.S. or 1-412-317-0088 for international callers and entering passcode # 10105225.