MINNEAPOLIS, May 13, 2013 /PRNewswire/ -- Titan Energy Worldwide, Inc. (www.titanenergy.com) (OTC:TEWI), a leader in distributed power generation products and intelligent energy management services, today announced that it has reported preliminary financial statements for the 1st quarter of 2013. The Company's complete financial statements will be available at its website, www.titanenergy.com, and at www.sec.gov later this month.
"Titan Energy continues to demonstrate strong growth and financial progress, as overall sales of $4.7 million was a 42% increase compared to the same quarter in 2012. Equipment sales were $2.8 million, an increase of 32%, and service sales were $1.8 million, an increase of 62% over the same quarter in 2012. The increase in equipment sales was primarily due to improved sales activities in our Northeast division which posted record revenues and divisional profits for the quarter. The increase in service revenues was largely due to the growing success of our national accounts business," stated Jeffrey Flannery, Chief Executive Officer of Titan Energy Worldwide.
"We will post a net loss of approximately $262,000 for the quarter, compared to a net loss of $616,000 in 2012. Our adjusted EBITDA for 1Q 2013 was a positive $97,000. The 1st quarter is typically the most challenging for the Company as winter weather in the Midwest can slow down deliveries and some of our national accounts do not approve their spending budgets until March or April. But overall, Titan Energy is continuing to maintain a positive adjusted EBITDA. Management expects to achieve profitability in the 2nd Q of 2013," added Flannery.
Management uses Adjusted EBITDA as measure of operating performance and for internal planning and forecasting. Management believes that such measures help to indicate underlying trends in our business, are important in comparing our current results with prior period results and are useful to investors and financial analysts in assessing our operating performance. Management defines Adjusted EBITDA as net income (loss), excluding depreciation, amortization, stock based compensation and payments, interest (including factoring fees), income taxes (benefit) and other income and expenses. Adjusted EBITDA also eliminates items that do not require cash outlays, such as warrants and beneficial conversion features from issuing convertible securities which are treated as debt discounts and amortized to expenses; fair value adjustment for warrants and embedded conversion features, which is dependent on current stock price, volatility, term and interest rate which are factors that are not easily controlled; and amortization expense related to acquisition-related assets, which is based on our estimate of the useful life of tangible and intangible assets. These estimates could vary from the actual performance of the asset, are based on the value determined on acquisition date and may not be indicative of current or future capital expenditures. We also will eliminate from our net loss from the lease obligation as this is a settlement of a lawsuit which is not consider part of our continuing operations.
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 (www.oe.energy.gov/smartgrid.htm) 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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