EX-99.1 2 ex99-1.htm EXHIBIT 99.1 ex99-1.htm
Exhibit 99.1

ENERGY FOCUS, INC. REPORTS SECOND QUARTER 2012 RESULTS

SOLON, Ohio, August 14, 2012 -- Energy Focus, Inc. (OTC BB: EFOI) today announced financial results for the second quarter ended June 30, 2012.

Financial results for the second quarter of 2012 include the following:

 
·
Net sales were $7.7 million compared to $8.2 million for the second quarter of 2011.
 
·
Gross margins improved to 22.2 percent of net sales compared to 18.9 percent of net sales for the second quarter of 2011.
 
·
The net loss of $0.9 million improved $0.3 million compared to the second quarter’s 2011 net loss of $1.2 million on $0.5 million lower sales.

Net sales decreased during the second quarter of 2012 as compared to the prior year’s second quarter as a result of lower sales from our Solutions business.  This reduction was partially offset by a $0.7 million increase in our Products business as a result of increased sales of LED products.

Joe Kaveski, Chief Executive Officer, commented, “Our second quarter sales fell within our guidance of $7 - $8 million.  We are encouraged by the 45 percent sequential increase in net sales and the 7.4 percentage point increase in gross profit margins from the first quarter of 2012.  Furthermore, we expect to see significant increases in sales during the remainder of 2012.  This is due to our expanded proposal pipeline in our Solutions business, additional shipments to the US Navy from our $23 million contract and from continued sales of our LED products anticipated in our second half of 2012.”

The Company expects sales for the third quarter to range between $9.5 million and $10.5 million and forecasts to be EBITDA positive in the second half of 2012.

Energy Focus, Inc. will host a conference call on Tuesday, August 14, 2012, at 4:30 p.m. EDT (1:30 p.m. PDT) to review the second quarter of 2012 financial results, followed by a Q & A session.  The call can be accessed by dialing (888) 599-8658 (US and Canada) or 1-913-981-5529 (International/Local).  The conference ID number is 6634578.  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/uploads/investors.html starting August 14, 2012, and will remain available for 3 months.

Forward Looking Statements

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 the financial results of Energy Focus, 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.
 
 
 
 

About Energy Focus, Inc.

Energy Focus, Inc. is a leading provider of energy efficient LED lighting products and turnkey energy efficient lighting solutions, holding 75 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.  Customers include supermarket chains, the U.S. 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.


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,
  
   
2012
    
2011
  
ASSETS
  
(unaudited)
        
Current assets:
            
Cash and cash equivalents
   $ 627     $ 2,136  
Trade accounts receivable less allowances of  $339 and $447, respectively
     4,576       2,738  
Retainage receivable
     397       474  
Inventories, net
     2,362       2,429  
Costs in excess of billings
     66       171  
Prepaid and other current assets
     1,797       881  
Total current assets
     9,825       8,829  
                 
Property and equipment, net
     1,898       2,105  
Goodwill
     672       672  
Intangible assets, net
     817       1,027  
Collateralized assets
     1,000       1,000  
Other assets
     103       145  
Total assets
   $ 14,315     $ 13,778  
                 
LIABILITIES
                
Current liabilities:
                
Accounts payable
   $ 3,797     $ 5,653  
Accrued liabilities
     2,206       1,995  
Deferred revenue
     1,048       1,373  
Billings in excess of costs
     505       154  
Credit line borrowings
     2,064       701  
Current maturities of long-term debt
     474       855  
Total current liabilities
     10,094       10,731  
                 
Other liabilities
     31       71  
Acquisition-related contingent liabilities
     -       553  
Long-term debt
     552       955  
Total liabilities
     10,677       12,310  
                 
SHAREHOLDERS' EQUITY
                
Preferred stock, par value $0.0001 per share: Authorized: 2,000,000 shares in 2012 and 2011Issued and outstanding: no shares in 2012 and 2011
     -       -  
Common stock, par value $0.0001 per share: Authorized: 60,000,000 shares in 2012 and  2011 Issued and outstanding: 44,542,000 at June 30, 2012 and 24,913,000 at December 31, 2011
     5       1  
Additional paid-in capital
     80,884       75,962  
Accumulated other comprehensive income
     431       420  
Accumulated deficit
     (77,682 )     (74,915 )
Total shareholders' equity
     3,638       1,468  
Total liabilities and shareholders' equity
   $ 14,315     $ 13,778  
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
ENERGY FOCUS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except per share amounts)

   
Three months ended
June 30,
    
Six months ended
June 30,
  
   
2012
    
2011
    
2012
    
2011
  
                         
Net sales
   $ 7,672     $ 8,193     $ 12,974     $ 13,653  
Cost of sales
     5,968       6,645       10,485       10,946  
Gross profit
     1,704       1,548       2,489       2,707  
                                 
Operating expenses:
                                
Research and development
     (61 )     (131 )     (15 )     134  
Sales and marketing
     1,390       1,636       2,661       3,571  
General and administrative
     1,114       1,044       2,268       2,622  
Valuation of equity instruments
     -       -       -       56  
Total operating expenses
     2,443       2,549       4,914       6,383  
Loss from operations
     (739 )     (1,001 )     (2,425 )     (3,676 )
                                 
Other income (expense):
                                
Other (expense) income
     (44 )     22       (72 )     71  
Interest income
     -       2       1       3  
Interest expense
     (114 )     (192 )     (265 )     (375 )
                                 
Loss before income taxes
     (897 )     (1,169 )     (2,761 )     (3,977 )
                                 
Provision for income taxes
     (3 )     (4 )     (6 )     (9 )
                                 
Net loss
   $ (900 )   $ (1,173 )   $ (2,767 )   $ (3,986 )
                                 
Net loss per share - basic and diluted
   $ (0.02 )   $ (0.04 )   $ (0.07 )   $ (0.16 )
                                 
                                 
Shares used in computing net loss per share - basic and diluted
     44,513       24,754       38,067       24,490  
 
The accompanying notes are an integral part of these financial statements.