MINNEAPOLIS, April 30, 2012 /PRNewswire/ -- Titan Energy Worldwide, Inc. (OTC:TEWI), a leader in distributed power generation products and intelligent energy management services, today announced that the Company has posted its financial statements for 2011. These financial statements were sent for publication by the Securities Exchange Commission (SEC), but the statements have not yet been audited by a registered independent auditing firm.
Stated Jeffrey Flannery, Chief Executive Officer of Titan Energy Worldwide, Inc., "The year 2011 was a time of reorganization and refocusing the Company's vision and business programs. The results of our efforts, we believe, are clear. We ended 2011 with a positive adjusted EBITDA for the month of December and entered 2012 with the highest backlog of sales in the Company's history.
"Despite a drop in 2011 equipment sales compared to 2010, we were able to increase our service sales by more than 25% and significantly increase the margin on those sales. Meanwhile we cut our operating expenses by more than $500,000 in the 4th quarter of 2011 compared to 2010. At this time, the Company is positioned to post record equipment sales and service contracts in 2012 and a positive EBITDA for the year," added Flannery.
For the year 2011, the Company posted $14,065,980 in revenues, basically the same as 2010. Equipment sales were $9,056,035, down 10% from 2010, while 2011 service sales increased by 26% over 2010 to $5,009,945. The slight drop in equipment sales is partially attributable to a depressed economy, especially in the area of new construction. The increase in service revenues is attributable to strong growth in new service contracts in the Midwest, and a significant increase in the Company's national accounts business which provides services to national retail customers throughout the United States.
The Company reported net operating losses of $3,435,009 for 2011, compared to $3,674,120 in 2010. The Company was able to demonstrate a strong improvement in losses quarter by quarter in 2011. Management believes that a more effective measure of the Company's performance is the nonGAAP "Adjusted EBITDA." The Adjusted EBITDA is defined as net income (loss), excluding depreciation, amortization, stock based compensation, interest, income taxes (benefit) and other income and expenses. The Company's Adjusted EBITDA was negative $1,577,130 and negative $1,397,426 for the years ended December 31, 2011 and 2010, respectively. Although our "adjusted EBITDA" loss was greater in 2011, in the fourth quarter of 2011 our "adjusted EBITDA" was negative $206,062, the lowest level since June 30, 2010.
About Titan Energy Worldwide, Inc.
Since its founding, Titan Energy Worldwide has been dedicated to helping companies meet their power generation and energy management needs. To date we have focused on providing thousands of customers with the most advanced power generation equipment to enable their operations to continue uninterrupted during times of power failures or disasters. We have also established a professional service team that helps customers to maintain and manage their power generations assets. From emergency and backup 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: www.titanenergy.com.
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.
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