News Release
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MEDIA CONTACTS:
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Telkonet Investor Relations |
414.721.7988 | |
ir@telkonet.com |
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Revenue of $1.9 million, a decrease of 22% compared to $2.5 million for the quarter ended March 31, 2011.
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● | Gross margins of 54% a decrease of 7% compared to 61% for the quarter ended March 31, 2011. |
● | Loss from operations for the quarter ended March 31, 2012 was $0.7 million, compared to income of $0.1 million for the quarter ended March 31, 2011. |
● | Net loss for the quarter ended March 31, 2012 was $0.7 million, compared to net income of $0.9 million for the quarter ended March 31, 2011. |
● | Negative adjusted EBITDA of $0.6 million for the quarter ended March 31, 2012 compared to an adjusted EBITDA of $0.2 million for the quarter ended March 31, 2011. |
● | Cash and cash equivalents of $0.5 million for the quarter ended March 31, 2012 compared to $0.2 million for the quarter ended March 31, 2011. |
● | Working capital deficit decrease of $1.3 million from a working capital deficit (current liabilities in excess of current assets) of $2.7 million at March 31, 2011 to a working capital deficit of $1.4 million at March 31, 2012. |
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Gain (loss) on derivative liability. The Company has historically recorded non-cash gains and losses on the fair value of its derivative liabilities that arose from the sale of the Convertible Debentures in May and July 2008. These Debentures had embedded derivatives and the accounting treatment of derivative financial instruments requires that the Company record all derivatives and related warrants, and classify all other non-employee stock options and warrants as derivative liabilities and mark them to market at each reporting date. The Company considers this a financing transaction, and it is not an indication of current or future operating performance. Therefore, the Company does not consider the inclusion of this transaction helpful in assessing its current financial performance compared to previous periods as well as prospects for the future.
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·
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Stock-based compensation. The Company believes that because of the variety of equity awards used by companies, varying methodologies for determining stock-based compensation and the assumptions and estimates involved in those determinations, the exclusion of non-cash stock-based compensation enhances the ability of management and investors to understand the impact of non-cash stock-based compensation on our operating results. Further, the Company believes that excluding stock-based compensation expense allows for a more transparent comparison of its financial results to previous periods.
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·
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Gain (loss) on disposal of property and equipment: In the first quarter of 2011, the Company recorded the disposal of a company vehicle. The Company considered this a one-time transaction, and it is not an indication of current or future operating performance. Therefore, the Company does not consider the inclusion of this transaction helpful in assessing its current financial performance compared to previous periods as well as prospects for the future.
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·
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Gain on sale of product line: In the first quarter of 2011, the Company sold its Series 5 Power Line Carrier product line and related business assets. The Company considered this a one-time transaction, and it is not an indication of current or future operating performance. Therefore, the Company does not consider the inclusion of this transaction helpful in assessing its current financial performance compared to previous periods as well as prospects for the future.
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2012
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2011
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|||||||
Net income (loss)
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$ | (728,824 | ) | $ | 926,292 | |||
Interest expense, net
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31,764 | 190,234 | ||||||
Depreciation and amortization
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72,598 | 61,528 | ||||||
EBITDA attributed to Telkonet segment
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(624,462 | ) | 1,178,054 | |||||
Adjustments:
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||||||||
(Gain) loss on disposal of property and equipment
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- | (2,165 | ) | |||||
(Gain) loss on derivative liability
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- | (172,476 | ) | |||||
(Gain) loss on sale of product line
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- | (829,296 | ) | |||||
Stock based compensation
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36,165 | 32,494 | ||||||
Adjusted EBITDA
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$ | (588,297 | ) | $ | 206,611 |
2012
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2011
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|||||||
Revenues, net:
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||||||||
Product
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$
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917,929
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$
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1,351,072
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||||
Recurring
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1,010,672
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1,131,627
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||||||
Total Revenue
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1,928,601
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2,482,699
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||||||
Cost of Sales:
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||||||||
Product
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600,809
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708,270
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||||||
Recurring
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289,909
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263,869
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||||||
Total Cost of Sales
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890,718
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972,139
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||||||
Gross Profit
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1,037,883
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1,510,560
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||||||
Operating Expenses:
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||||||||
Research and development
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230,564
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208,609
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||||||
Selling, general and administrative
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1,431,781
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1,127,834
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||||||
Depreciation and amortization
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72,598
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61,528
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||||||
Total Operating Expense
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1,734,943
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1,397,971
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||||||
Income (Loss) from Operations
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(697,060
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)
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112,589
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|||||
Other Income (Expenses):
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||||||||
Interest expense, net
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(31,764
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)
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(190,234
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)
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||||
Gain on derivative liability
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-
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172,476
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||||||
Gain on disposal of property and equipment
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-
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2,165
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||||||
Gain on sale of product line
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-
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829,296
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||||||
Total Other Income (Expense)
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(31,764
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)
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813,703
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|||||
Income (Loss) Before Provision for Income Taxes
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(728,824
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)
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926,292
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|||||
Provision for Income Taxes
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-
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-
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||||||
Net Income (Loss)
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(728,824
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)
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926,292
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|||||
Accretion of preferred dividends and discount
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(190,753
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)
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(104,899
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)
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Net income (loss) attributable to common stockholders
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$
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(919,577
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)
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$
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821,393
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Net income (loss) per common share:
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||||||||
Income (loss) per common share – basic
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$
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(0.01
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)
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$
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0.01
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|||
Income (loss) per common share – diluted
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$
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(0.01
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)
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$
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0.01
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Weighted Average Common Shares Outstanding – basic
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104,351,326
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101,363,617
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||||||
Weighted Average Common Shares Outstanding – diluted
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106,457,737
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101,868,176
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