MINNEAPOLIS, MN — (Marketwire) — 08/24/11 — Titan Energy Worldwide, Inc. (OTCBB: TEWI), a leader in distributed power generation products and intelligent energy management services, announced today that it has released financial results for the second quarter of 2011.
“Titan Energy has made significant progress in the last six months streamlining its operations, reducing overhead expenses, and expanding our service programs. All of these measures help set the stage for a stronger second half of the year and our targeted goal of being profitable in 2012,” stated Jeffrey Flannery, Chief Executive Officer of Titan Energy Worldwide.
Gross sales for the quarter ending June 30, 2011 were $3.3 million, down from $3.5 million in the first quarter of 2011. Service revenues of approximately $1.1 million are up 14% compared to the same quarter in 2010. Gross margins were 26% of revenues for the same quarters in 2010 and 2011. Six month revenues were nearly identical for 2010 and 2011 at $7,019,465 and $7,017,635, respectively. Gross margins for the first six months of 2011 were down 1% compared to 2010, primarily due to an increase in national account service sales which have lower margins compared to our regular service sales.
Net operating losses for the quarter were negative $529,225 compared to $752,094 in the first quarter of 2011, a significant reduction of 30%. Corporate overhead was reduced by 25% from $414,322 in the quarter ending March 30, 2011 to $310,470 in this quarter.
“This has been a difficult year so far, and like many companies we have had to consolidate and streamline operations. We estimate that we will save approximately $500,000 in expenses in the second half of 2011 compared to the first half. With these reductions, however, and depending on the strength of sales revenues, we could very well enter 2012 near break-even on a go forward basis,” added Flannery.
“Equipment sales for the second quarter dipped slightly, primarily due to an internal slow down in our sales and shipping operations, but we do see signs that sales will pick up in the next few quarters. Our backlog for new orders at $4.7 million is higher than normal and we continue to show an increase in equipment purchase orders, an indicator of stronger future sales. With a new, more versatile financial lender now in place, we believe we will quickly recover our sales in the second half of the year. Service revenues which provide the company with significantly higher margins from long term contracts, increased significantly. We are seeing strong growth in service sales for national accounts and expect this to continue in 2012.
“With streamlined operations and lower overhead expenses, we feel we are well positioned to make solid improvements in the second half of 2011 and on in 2012. Our focus for the remainder of the year will be on increasing our revenues, expanding our service sales, and following prudent fiscal management. We have a number of growth initiatives that we are preparing to launch in the near term which we believe will strengthen sales efforts in the New York and Miami regions. In addition, we are positioning ourselves to grow significantly with new service technologies that are ready to be implemented companywide,” added Mr. Flannery.
About Titan Energy Worldwide, Inc.
Titan Energy Worldwide a provider of onsite power generation, energy management and energy efficiency products and services that help support and improve the performance of our nation–s electrical utility grid. We operate in an area of the overall electrical utility infrastructure called Distributed Generation, whereby we specialize in the deployment of power generation equipment at the consumer–s facility and the integration of that equipment through monitoring and communication systems with the needs of the utility–s electrical grid. These onsite power generation systems support a customer–s critical operations during times of power failure and serve as demand response systems that work to reduce energy usage and decrease demand on the electrical grid during peak periods. When managed with the proper intelligent monitoring systems and controls, Distributed Generation offers a vital and significant contribution to the development of the nation–s Smart Grid. We contribute the tools and resources to produce immediate and long term improvements in the performance and stability in the energy production and transmission segments of the electrical grid and reduce the need for new power plants. From emergency and back-up power technologies, to demand response programs and Smart Grid applications, Titan Energy is setting a path for the future in energy management. For more information, please visit the company–s website at: .
Forward-Looking Statements
Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statements of TEWI officials are “Forward-Looking Statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as “believes,” “anticipates,” “intends,” “plans,” “expects,” and similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future TEWI actions, which may be provided by management, are also forward-looking statements as defined by the Act. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements and to vary significantly from reporting period to reporting period. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual future results will not be different from the expectations expressed in this report. These statements are not guarantees of future performance and TEWI has no specific intention to update these statements.
For more information about Titan Energy Worldwide please contact:
Jeffrey Flannery
Titan Energy Worldwide, Inc.
619-988-5869