UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| Date of Report (Date of Earliest Event Reported): | August 15, 2011 |
Energy Focus, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)
| Delaware | 0-24230 | 94-3021850 |
|
_____________________ (State or other jurisdiction |
_____________ (Commission |
______________ (I.R.S. Employer |
| of incorporation) | File Number) | Identification No.) |
| 32000 Aurora Road, Solon, Ohio | 44139 | |
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_________________________________ (Address of principal executive offices) |
___________ (Zip Code) |
| Registrant’s telephone number, including area code: | 440-715-1300 |
Not Applicable
______________________________________________
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On August 15, 2011, Energy Focus, Inc. (the "Company") issued a press release announcing its financial results for the quarter ended June 30, 2011, and hosted an investor call to discuss those results.
A copy of the press release is furnished with this Report as Exhibit 99.1 and is incorporated in this Report by reference.
The information under this Item in this Report, as well as Exhibit 99.1, is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that Section. The information under this Item in this Report, and the Exhibits, shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933.
The press release, furnished with this Report as Exhibit 99.1, includes forward-looking statements within the meaning of the federal securities laws with respect to the Company's future operations and, as such, concerns matters that are not historical facts. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in such statements. Refer to Energy Focus, Inc.'s filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2010, its quarterly reports of Form 10-Q, and other periodic filings for a description of the foregoing and other factors that could cause actual results to differ materially from those in the forward-looking statements.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Energy Focus, Inc. | ||||
| August 19, 2011 | By: |
Mark J. Plush
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| Name: Mark J. Plush | ||||
| Title: Chief Financial Officer | ||||
Exhibit Index
| Exhibit No. | Description | |
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99.1
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Press Release dated August 15, 2011 - Energy Focus, Inc. Reports Second Quarter 2011 Results |
ENERGY FOCUS, INC. REPORTS SECOND QUARTER 2011 RESULTS
SOLON, Ohio, August 15, 2011 — Energy Focus, Inc. (NASDAQ: EFOI) today announced financial results for the second quarter ended June 30, 2011.
Financial and operating highlights for the second quarter of 2011 include the following:
| • | Net sales of $8.2 million compared to $9.0 million for the second quarter 2010. |
| • | Net loss of $1.2 million improved $0.6 million from the second quarter’s 2010 net loss of $1.8 million. |
| • | The company finished the quarter with a balance sheet showing cash in the amount of $1.0 million and total shareholders’ equity of $3.4 million. |
| • | Cash utilization for the second quarter of 2011 was $0.6 million as compared to a cash increase in the second quarter of 2010 of $0.3 million. |
| • | Operating expenses decreased 21% compared to the second quarter of 2010. |
The forecast for Q3 2011 includes the following:
| • | Sales to range between $6 million and $7 million in Q3 2011. |
| • | Net cash utilization for Q3 2011 is expected to be less than $1 million. The Company expects to raise between $1 million and $2 million in Q3 2011. |
Second quarter sales were 9% lower than last year’s second quarter sales and the net loss was reduced by $0.6 million from the prior year’s second quarter. Further, net sales increased 50% over the first quarter of 2011 sales and the net loss was reduced by $1.6 million over the same period. The improvement over the first quarter’s 2011 results was due to higher sales across all business units and a 34% reduction in operating expenses.
“Our military business continued to perform well in the second quarter and we are delighted to have been awarded a $23 million contract to supply IntelliTube™ product to the U.S. Navy, said Joe Kaveski, Energy Focus CEO. “This is a tremendous business opportunity for Energy Focus which we estimate to exceed $300 million for the U.S. Fleet alone.” (See http://www.wkyc.com/video/default.aspx?bctid=1110583685001 for NBC affiliate WKYC’s news story on Energy Focus and the Navy contract.)
“Additionally we’ve submitted our LED Retrofit Kit for Wallpacks for DesignLights™ Consortium Qualified Products (DLC) listing allowing it to qualify for energy saving utility rebates, which should allow us further growth opportunities over the remainder of 2011.”
Energy Focus, Inc. will host a conference call on Monday, August 15, 2011 at 4:30 p.m. EDT (1:30 p.m. PDT) to review the second quarter 2011 financial results, followed by a Q & A session. The call can be accessed by dialing (888) 523-1245 (US and Canada) or (719) 457-2652 (International/Local). The conference ID number is 7538564. Participants are asked to call the assigned number approximately 10 minutes before the conference call begins.
A recording of the conference call will be available through the investor relations section of the Company’s web site at http://www.energyfocusinc.com/investors/events/category/investors starting August 15, 2011 and will remain available for 3 months.
About Energy Focus, Inc.
Energy Focus, Inc. is a leading provider of energy efficient LED lighting products and turnkey energy efficient lighting solutions, holding 74 relevant lighting patents. Our solutions provide energy savings, aesthetics, safety and maintenance cost benefits over conventional lighting. Our long-standing relationship with the U.S. Government includes numerous research and development projects for the DOE and DARPA, creating energy efficient LED lighting systems for the U.S. Navy fleet and the next generation Very High Efficiency Solar Cell. Customers include supermarket chains, the US government, state and local governmental agencies, retail stores, museums, theme parks and casinos, hotels, swimming pool builders and many others. Company headquarters are located in Solon, OH, with additional offices in Nashville, TN, Pleasanton, CA, and the United Kingdom. For more information, see our web site at www.energyfocusinc.com.
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For more information about potential factors that could affect Energy Focus financial results, please refer to the Company’s SEC reports, including its Annual Reports on Form 10-K and its quarterly reports on Form 10-Q. These forward-looking statements speak only as of the date hereof. Energy Focus disclaims any intention or obligation to update or revise any forward-looking statements.
Media Contact:
Energy Focus, Inc., Public Relations Office
(440) 715-1295
pr@energyfocusinc.com
Investor Contact:
Brion Tanous
CleanTech IR, Inc.
(310) 541-6824
btanous@cleantech-ir.com
ENERGY FOCUS, INC.
CONSOLIDATED BALANCE SHEETS
(amounts in thousands except share and per share amounts)
| June 30, | December 31, | |||||||
| 2011 | 2010 | |||||||
ASSETS |
(unaudited) | |||||||
Current assets: |
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Cash and cash equivalents |
$ | 906 | $ | 3,979 | ||||
Restricted cash |
63 | 128 | ||||||
Accounts receivable trade, net of allowances of $307 in 2011 |
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and $446 in 2010 |
4,352 | 5,483 | ||||||
Retainage receivable |
848 | 731 | ||||||
Inventories, net |
3,295 | 2,543 | ||||||
Costs in excess of billings |
69 | 22 | ||||||
Prepaid and other current assets |
642 | 632 | ||||||
Total current assets |
10,175 | 13,518 | ||||||
Property and equipment, net |
2,318 | 2,446 | ||||||
Goodwill |
672 | 672 | ||||||
Intangible assets, net |
1,352 | 1,677 | ||||||
Collateralized assets |
2,000 | 2,000 | ||||||
Other assets |
28 | 61 | ||||||
Total assets |
$ | 16,545 | $ | 20,374 | ||||
LIABILITIES |
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Current liabilities: |
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Accounts payable |
$ | 6,350 | $ | 7,167 | ||||
Accrued liabilities |
2,206 | 2,358 | ||||||
Deferred revenue |
1,343 | 1,214 | ||||||
Billings in excess of costs |
252 | 297 | ||||||
Current portion of long-term borrowings |
562 | 481 | ||||||
Total current liabilities |
10,713 | 11,517 | ||||||
Other deferred liabilities |
42 | 28 | ||||||
Acquisition-related contingent liabilities |
658 | 827 | ||||||
Long-term borrowings |
1,724 | 1,344 | ||||||
Total liabilities |
13,137 | 13,716 | ||||||
SHAREHOLDERS’ EQUITY |
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Preferred stock, par value $0.0001 per share: |
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Authorized: 2,000,000 shares in 2011 and 2010 |
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Issued and outstanding: no shares in 2011 and 2010 |
— | — | ||||||
Common stock, par value $0.0001 per share: |
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Authorized: 60,000,000 shares in 2011 and 2010 |
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Issued and outstanding: 24,845,000 at June 30, 2011 and |
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23,962,000 at December 31, 2010 |
1 | 1 | ||||||
Additional paid-in capital |
75,801 | 75,094 | ||||||
Accumulated other comprehensive income |
452 | 423 | ||||||
Accumulated deficit |
(72,846 | ) | (68,860 | ) | ||||
Total shareholders’ equity |
3,408 | 6,658 | ||||||
Total liabilities and shareholders’ equity |
$ | 16,545 | $ | 20,374 | ||||
ENERGY FOCUS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except per share amounts)
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
Net sales |
$ | 8,193 | $ | 8,958 | $ | 13,653 | $ | 17,315 | ||||||||
Cost of sales |
6,645 | 7,390 | 10,946 | 14,352 | ||||||||||||
Gross profit |
1,548 | 1,568 | 2,707 | 2,963 | ||||||||||||
Operating expenses (income): |
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Research and development |
(131 | ) | (134 | ) | 134 | (79 | ) | |||||||||
Sales and marketing |
1,636 | 1,518 | 3,571 | 3,137 | ||||||||||||
General and administrative |
1,044 | 1,516 | 2,622 | 3,195 | ||||||||||||
Valuation of equity instruments |
— | 329 | 56 | 1,750 | ||||||||||||
Restructuring charges |
— | — | — | 26 | ||||||||||||
Total operating expenses |
2,549 | 3,229 | 6,383 | 8,029 | ||||||||||||
Loss from operations |
(1,001 | ) | (1,661 | ) | (3,676 | ) | (5,066 | ) | ||||||||
Other income (expense): |
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Other income (expense) |
22 | (1 | ) | 71 | (66 | ) | ||||||||||
Interest expense |
(190 | ) | (148 | ) | (372 | ) | (247 | ) | ||||||||
Loss before income taxes |
(1,169 | ) | (1,810 | ) | (3,977 | ) | (5,379 | ) | ||||||||
Provision for income taxes |
(4 | ) | (2 | ) | (9 | ) | (3 | ) | ||||||||
Net loss |
$ | (1,173 | ) | $ | (1,812 | ) | $ | (3,986 | ) | $ | (5,382 | ) | ||||
Net loss per share — basic and diluted |
$ | (0.04 | ) | $ | (0.08 | ) | $ | (0.16 | ) | $ | (0.25 | ) | ||||
Shares used in computing net loss per share - |
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basic and diluted |
24,754 | 22,582 | 24,490 | 21,953 | ||||||||||||