Juhl Energy, Inc. Announces Year-End 2014 Financial Results

PIPESTONE, Minn., Apr. 6, 2015 /PRNewswire/ --Juhl Energy, Inc. (OTCQB: JUHL), (the "Company"), a leading provider of Clean Energy Solutions and the Leader in Community Wind Power, today announced financial results for the year ended December 31, 2014.

"Overall, we are very pleased with our continued growth in 2014, and in particular, with our ongoing revenue growth and with the cash flow generated from our core business in 2014," stated Dan Juhl, Chairman and CEO of Juhl Energy, Inc.   We continued our expansion of our asset ownership and engineering services, while we also completed two very important wind projects – an on-site project at Honda Transmission Manufacturing of America in Ohio at the beginning of the year and the $40 million Oak Tree Wind Farm at the end of the year."

"While we took steps to restructure a portion of our business with the wind down of Tower, we generated strong EBITDA for the year of approximately $1.3 million from our continuing, core business units," added John Mitola, President of Juhl Energy.  "That has allowed us to start 2015 with balance sheet strength and with a focused plan to continue to add new wind farm acquisitions, grow our development fee income and expand our engineering services unit.  We also expect to continue the growth of our cash flow from residual revenue generated from the wind farms we own and operate in our Juhl Renewable Asset subsidiary including the two projects we added in Iowa in 2014."

Financial Highlights for the Year Ended December 31, 2014:

• Total revenue increased by approximately $745,000, or 5.6%, from approximately $13,399,000 for the year ended December 31, 2013, to approximately $14,144,000 for the year ended December 31, 2014. The increase in revenue is primarily attributable to growth in engineering consulting services to the utility industry and increased development fee income, together with the effects of growth in sales stemming from our acquisitions of two wind farms and the online solar company, PVPower.
• Gross margins as a percentage of sales for the years ended December 31, 2014 and 2013 were relatively stable around the 25% range.  We have observed higher margins stemming from development fee income and engineering services, together with gross margin contributions from our solar business and from better wind conditions which created higher electricity sales. The overall growth in our gross margins is significantly offset, however, by a $1.8 million non-cash impairment charge taken on certain wind turbine assets in 2014.
• With regard to tower maintenance services business that was launched in February 2013, we determined in late 2014 that we should wind down the operations of Juhl Tower Services after experiencing net operating losses and facing difficulties with the working capital aspects of the industry. Accordingly, the results of operations from tower services have been reclassified into Discontinued Operations in our financial statements. We do not expect any further material adjustments to our future 2015 financial results.
• Operating expenses, as a percentage of our revenue were 44.2% of revenue for the year ended December 31, 2014 as compared to 37.4% for the year ended December 31, 2013. The increase is related to higher than normal professional fees, non-cash stock compensation expense, and investments in the expansion of our solar system sales and integration services.
• Operating loss increased approximately $1,328,000, from an operating loss of $1,489,000 for the year ended December 31, 2013 to an operating loss of approximately $2,817,000 for the year ended December 31, 2014.  The increase in loss is primarily attributable to $1.8 million turbine asset impairment charge, as well as increases in stock compensation expense and professional fees, offset by higher gross margins that are otherwise occurring from all of our business units.
• Net loss increased by approximately $2,537,000 from a net loss of approximately $3,046,000 for the year ended December 31, 2013 to a net loss of approximately $5,583,000 for the year ended December 31, 2014. The increase in net loss which is primarily attributable to the reasons described in the change in our Operating Loss, together with a $738,000 negative variation in the use of fair value accounting over an interest rate swap arrangement.
• Despite the operating and net loss amounts discussed above, we generated positive cash flow from continuing operations of approximately $1,385,000 as a result of efforts to increase revenues in each of our business segments and to control our cash expenses.
• Adjusted EBITDA increased by $569,000, or 79.4% from approximately $717,000 for the year ended December 31, 2013 to approximately $1,286,000 for the year ended December 31, 2014.  Adjusted EBITDA is a non-GAAP financial measure and as used herein represents net income before interest expense, depreciation and amortization, and other charges including unrealized gain/loss on an interest rate swap arrangement, revenue levelization accounting on power purchase contracts, stock compensation expense, stock issuance cost write-down, asset impairment charges, and discontinued operations.
• Basic and diluted net loss per share of ($0.20) per common share for the year ended December 31, 2014 compares to the ($0.17) net loss per common share for year ended December 31, 2013.

A full analysis of results for the year ended December 31, 2014 is available in the Company's Form 10-K, which is available on the Company's website at www.juhlenergy.com or through the Securities and Exchange Commission's Edgar database at www.sec.gov.

About Juhl Energy, Inc.

Juhl Energy is an established leader in the renewable energy industry with a focus on competitive, clean energy solutions and community-based wind power development, ownership and management throughout the United States and Canada.  Juhl Energy pioneered community-based wind farms, developing the currently accepted financial, operational and legal structure providing local ownership of medium-to-large scale wind farms in rural America.  To date, the Company has completed 24 wind farm projects totaling approximately 260 MW and provides operations management and oversight across the portfolio. Juhl Energy services every aspect of wind farm development from full development and ownership, general consultation, construction management and system operations and maintenance.  Juhl Energy also provides a broad range of clean energy solutions. 

Juhl Energy operates three primary business segments: renewable energy development, renewable power plant ownership, and energy and field services. Through its Juhl Energy Development Inc. (JEDI) subsidiary, the Company provides medium and large-scale wind, solar, and cogeneration energy development services. The Company holds ownership interests in five wind farm projects comprising approximately 25 MWs of wind power in Minnesota and Iowa, primarily through its subsidiary, Juhl Renewable Assets, Inc.   Through its wind farm operations subsidiary, Juhl Energy Services, Inc. (JESI), the Company performs maintenance and asset management services to over 110 MW of operating wind farms.  The acquisition of Power Engineers Collaborative enables the Company to provide a full range of engineering services to the utility industry and for central plant energy systems.  The Company also provides full sales and service to smaller, on-site wind and solar projects through its Juhl Renewable Energy Systems division. Juhl Energy is based in Pipestone, Minnesota and has other main offices in Chicago, Minneapolis, and Milwaukee. Juhl Energy is traded on the OTCQB under the symbol 'JUHL'. Additional information is available at the Company's website at www.juhlenergy.com or by calling (507) 562-8090.

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FORWARD LOOKING STATEMENTS

This news release includes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 including statements that reflect Juhl Energy's current expectations about its future results, performance, prospects and opportunities. Juhl Energy has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "hope," or similar expressions. These forward-looking statements are based on information currently available to Juhl Energy and are subject to a number of risks, uncertainties and other factors that could cause Juhl Energy's actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements and specifically those statements referring to any specific projects, prospective acquisitions and wind farm assets mentioned herein.  These risks, as may be described from time to time in Juhl Energy's SEC filings, are incorporated herein by reference.

Juhl Energy Investor Relations
Jody Janson
Phone: +1-(888)438-JUHL (5845)
Fax: +1-(585)486-1611
Email: [email protected]

SOURCE Juhl Energy, Inc.

Related Links

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