World Energy Solutions Announces Q3 Financial Results

Company Achieves Double-Digit Revenue Growth and Record Adjusted EBITDA

Worcester, MA – November 10, 2014 – World Energy Solutions, Inc. (NASDAQ: XWES), a leading energy technology and services firm, today announced financial results for the three and nine months ended September 30, 2014.

Financial Highlights (All figures are in US dollars; comparisons of performance are made between Q3 2014 results and Q3 2013 results, unless otherwise noted.)

Revenue and Backlog

  • Quarterly revenue grew 13% to $9.9 million
    • Energy procurement revenue for the quarter grew 6%
    • Energy efficiency services revenue rose 49%
  • Revenue for the nine-month period increased 14% to $28.8 million
  • Annualized backlog stood at $23.9 million
  • Total backlog declined 4% to $44.2 million

Operating Results

  • Adjusted EBITDA* climbed to a record $1.4 million, up from $0.8 million
  • Net loss decreased to ($0.1) million, or ($0.01) per share, from ($0.6) million, or ($0.05) per share
  • Non-GAAP adjusted net income was $0.3 million, or $0.02 per share, which excludes $0.4 million in merger-related costs
  • Gross margins in the quarter fell slightly to 73% from 74%, reflecting the increased contribution of energy efficiency services revenue to total revenue
    • Energy procurement gross margins increased to 88% from 84%
    • Energy efficiency services gross margins decreased to 21% from 24%
  • Free cash flow for the quarter was $0.7 million

Liquidity and Balance Sheet

  • Cash and cash equivalents were $2.8 million at quarter end, a 60% increase from December 31, 2013
  • The Company commenced principal payments against its long-term debt

“This is clearly an exciting time for World Energy as evidenced by our strong quarterly performance and the recently announced agreement with EnerNOC,” said Phil Adams, CEO of World Energy Solutions. “Our Q3 results underscore the strength of our business model, which reliably generates profit and cash. Not only did we post another quarter of double-digit organic revenue growth, highlighted by the second best revenue quarter in our history, but we also achieved record adjusted EBITDA.

“Against this backdrop, we have attracted the attention of EnerNOC, which entered into an agreement to acquire World Energy last week. This move further validates our reputation as a technology leader in the energy management space. Our software-based auction platform continues to demonstrate significant value to participants in the retail energy sector and is poised to deliver significant synergies and cost savings to customers as part of EnerNOC’s energy intelligence software platform.”

Financial Review

Q3 2014

Revenue for the three months ended September 30, 2014 increased 13% to $9.9 million as revenue from both segments increased compared to the same period last year. Energy procurement revenue rose 6%, reflecting increased transaction activity from our auction, mid-market and wholesale customers as well as an increase in revenue recognized from previously deferred items. Energy efficiency services grew 49% as our rebuilt Massachusetts sales team continued to deliver an increase in the number of projects and average project size completed during the third quarter of 2014.

Gross margins decreased 1% to 73%, reflecting the increased contribution of energy efficiency services revenue to total revenue. Energy procurement gross margins increased to 88%, from 84%, reflecting a decrease in payroll due to our continued integration, automation, and reorganization efforts to improve processes and drive scalability. Energy efficiency services gross margins decreased to 21%, from 24% in the same period last year, due to the completion of one low-margin project completed during the quarter. Operating expenses as a percentage of sales decreased to 72%, from 76% in the same period last year, primarily resulting from the growth in revenue. Operating expenses increased primarily due to $0.4 million of costs incurred  related to our recently announced proposed merger with EnerNOC. Our operating margin improved to 1% as compared to (2%) in the same period last year, and adjusted EBITDA* margin was 14% compared to 10% in the prior year quarter. Non-GAAP adjusted net income was $0.3 million, or $0.02 per share, for the three months ended September 30, 2014 compared to a net loss of ($0.6) million, or ($0.05) per share in 2013.

At September 30, 2014, we had cash and cash equivalents of $2.8 million compared to $1.7 million at December 31, 2013 and $2.3 million at June 30, 2014. The increase in cash and cash equivalents during the quarter was primarily due  to free cash flow of $0.7 million for the quarter, which was partially offset by principal payments against our long-term bank debt. Free cash flow decreased from the same period last year as improved net income, adjusted for non-cash items, was offset by increases in accounts receivable and capitalized software costs, and a decrease in deferred revenue. The Company continues to maintain a $2.5 million line-of-credit with Commerce Bank and has not borrowed against this facility.

Year-to-Date 2014

Revenue for the nine months ended September 30, 2014 rose 14% over the same period last year to $28.8 million as revenue from both segments increased over the same period last year. Energy procurement increased 9%, reflecting increased transaction activity from our auction and mid-market customers, as well as increased revenue recognized from previously deferred items. These increases were partially offset by a decrease in gas transaction activity as increased commodity prices during the first quarter delayed contracting decisions by listers. Energy efficiency services increased 41% as our rebuilt Massachusetts sales team continued to deliver increased revenue in the NSTAR territory in Massachusetts during 2014. Gross margins were 75% for the nine months ended September 30, 2014 compared to 74% for the same period last year, reflecting an increase in both segments. Energy procurement gross margins increased to 87%, from 83%, primarily resulting from a decrease in payroll resulting from our continued integration, automation, and reorganization efforts to improve processes and drive scalability. Energy efficiency services gross margins increased to 20%, from 18% in the same period last year, due to improved contribution margins on projects completed during the first nine-months of 2014. Operating expenses as a percentage of sales decreased to 75%, from 82% in the same period last year, as the growth in revenue exceeded the increase in costs. The increase in operating expenses was primarily due to increased legal and consulting costs related to costs associated with our proposed merger with EnerNOC and the shareholder action in the first quarter of 2014. Overall, the Company’s operating margin improved to 1%, and adjusted EBITDA* margin was 12% as compared to 4% for the same period last year.

Note: Backlog relates to contracts in force on a given date representing transactions between bidders and listers on our platform related to commodity brokerage assuming listers consume energy at their historical usage levels or deliver credits at expected levels. Total backlog represents the commission that the Company would derive over the remaining life of those contracts. Annualized backlog represents the commission that the Company would derive from those contracts within the 12 months following the date on which the backlog is calculated. Total and annualized backlog at September 30, 2014 included commodity backlog of $43.3 million and $23.0 million, respectively. In addition, total and annualized backlog include contracted management fees between World Energy and energy consumers for energy management and auction administration services of $0.9 million that are expected to be received over the following 12-month period. These management fees can be terminated within 30 days per the terms of the contracts.

Conference Call & Webcast

World Energy will hold a conference call today, November 10, 2014, at 5:00 p.m. (ET) to discuss its financial results and other corporate developments. To access the conference call by telephone, dial 1 (800) 774-6070 (domestic) or 1 (630) 691-2753 (international) and enter passcode 8871616#. A replay will be available two hours after the completion of the call, and for three months following the call, by dialing 1 (888) 843-7419 for domestic participants or 1 (630) 652-3042 for international participants, and entering passcode 8871616# when prompted.

Participants may also access a live webcast of the conference call through the investor relations section of World Energy’s website, www.worldenergy.com. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 30 days.for three months following the call, by dialing 1 (888) 843-7419 for domestic participants or 1 (630) 652-3042 for international participants, and entering passcode 8871616# when prompted.

* Non-GAAP Financial Measures

World Energy provides all information required in accordance with GAAP and also provides certain “non-GAAP financial measures.” A non-GAAP financial measure refers to a numerical financial measure that is included in (or excluded from) the most directly comparable financial measure calculated and presented in accordance with GAAP in the Company’s financial statements. World Energy provides Non-GAAP net income (loss), adjusted EBITDA and free cash flow as additional information relating to our operating results. These non-GAAP measures exclude expenses related to the proposed merger of the Company with EnerNOC, depreciation related to our fixed assets, amortization expense related to acquisition-related assets and other assets, interest expense on bank borrowings, notes payable to sellers and contingent consideration, interest income on invested funds, and income taxes.

Management believes it is useful to exclude expenses related to the proposed merger, depreciation, amortization, net interest and income tax expense as these are essentially fixed amounts that cannot be influenced by management in the short term. Management defines free cash flow as net cash provided by operating activities less capital expenditures. Management defines capital expenditures as purchases of property and equipment, which includes capitalization of internal-use software development costs.

Management uses these non-GAAP measures for internal reporting and bank reporting purposes. World Energy provides these non-GAAP financial measures in addition to GAAP financial results, because management believes that these non-GAAP financial measures provide useful information to certain investors and financial analysts in helping them to better understand the Company’s operating results and underlying operational trends. They also provide a consistent basis for comparison across accounting periods.

These non-GAAP financial measures are not prepared in accordance with GAAP. These measures may differ from the GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare the Company’s performance to that of other companies. There are significant limitations associated with the use of non-GAAP financial measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net loss prepared in accordance with GAAP.

Whenever World Energy reports non-GAAP financial measures, a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure will be made available. Investors are encouraged to review these reconciliations to ensure they have a thorough understanding of the reported non-GAAP financial measures and their most directly comparable GAAP financial measures. Reconciliation of GAAP net loss to non-GAAP adjusted net income (loss), adjusted EBITDA and Free cash Flow is shown below:

GAAP Net Loss

Reconciliation of Free Cash Flow

Notice to Investors

The tender offer described herein has not yet been commenced. The description contained in this press release is neither an offer to purchase nor a solicitation of an offer to sell securities of the Company. At the time the tender offer is commenced, EnerNOC and its wholly owned subsidiary intend to file a Tender Offer Statement on Schedule TO containing an offer to purchase, forms of letters of transmittal and other documents relating to the tender offer, and the Company intends to file a Solicitation/Recommendation Statement on Schedule 14D-9 with respect to the tender offer. Investors and stockholders of the Company are strongly advised to read the Tender Offer Statement on Schedule TO, including the offer to purchase, form of letter of transmittal and other documents related to the tender offer, and the Solicitation/Recommendation Statement on Schedule 14D-9 that will be filed by the Company, and other relevant materials when they become available, because these materials contain important information regarding the tender offer. Stockholders of the Company will be able to obtain a free copy of these documents (when they become available) and other documents filed by the Company or EnerNOC with the SEC at the website maintained by the SEC at www.sec.gov. In addition, the Schedule TO and related exhibits, including the offer to purchase, forms of letters of transmittal, and other related tender offer documents may be obtained (when available) for free by contacting the Company at 100 Front Street, Worcester, MA 01608.

About World Energy Solutions, Inc.

World Energy Solutions, Inc. (NASDAQ: XWES) is an energy technology and services firm transforming energy procurement and energy efficiency for commercial, industrial, institutional, government and utility customers. The Company’s award-winning, cloud-based auction platform, the World Energy Exchange®, its team of energy experts, and a network of more than 500 suppliers and 300 channel partners form an ecosystem that enables customers to minimize their total cost of energy. To date, World Energy has transacted over $45 billion in energy, demand response and environmental commodities, creating more than $3 billion in value for its customers. World Energy is also a leader in the global carbon market, where its World Energy Exchange® supports the Regional Greenhouse Gas Initiative (RGGI), the first mandatory market-based regulatory program in the U.S. to reduce greenhouse gas emissions. For more information, please visit www.worldenergy.com.

This press release contains forward-looking statements which involve risk and uncertainties. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “forecasts,” “projects,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company has based these forward-looking statements on its current expectations and projections about future events, including without limitation, its expectations of backlog and energy prices, and its expectations in growth in revenue, operating results, operating margins, and free cash flow. Although the Company believes that the expectations underlying any of its forward-looking statements are reasonable, these expectations may prove to be incorrect and all of these statements are subject to risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions, projections or expectations prove incorrect, actual results, performance or financial condition may vary materially and adversely from those anticipated, estimated or expected. Such risks and uncertainties include, but are not limited to the following: whether the acquisition will be consummated; whether the Company will obtain a superior proposal; the Company’s revenue and backlog are dependent on actual future energy purchases pursuant to completed procurements; the demand for the Company’s services is affected by changes in regulated prices or cyclicality or volatility in competitive market prices for energy; the potential impact on the Company’s historical and prospective financial results of a change in accounting policy may negatively impact its stock price; and other factors outside the Company’s control that affect transaction volume in the electricity market. Additional risk factors are identified in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 and subsequent reports filed with the Securities and Exchange Commission. The forward-looking statements made in this press release are made as at the date hereof. Readers are cautioned not to place undue reliance on forward-looking statements as actual results could differ materially from the forward-looking statements expressed in this press release. Forward-looking statements are provided for the purpose of presenting information about management’s current expectations relating to the future, and readers are cautioned that such statements may not be appropriate for other purposes. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, other than as required by securities laws.

For additional information, contact:

Jim Parslow
World Energy Solutions, Inc.
(508) 459-8100
jparslow@worldenergy.com

or

Dan Mees
World Energy Solutions, Inc.
(508) 459-8156
dmees@worldenergy.com

or

In Canada:
Craig Armitage
The Equicom Group
(416) 815-0700 x278
carmitage@equicomgroup.com

Summary of Condensed Consolidated Statements of Operations

Summary of Condensed Consolidated Balance Sheet

Source: World Energy Solutions, Inc.

World Energy Solutions Announces Q2 Financial Results

Company Posts Net Income, Record EBITDA and 18% Top-Line Growth

Worcester, MA – August 8, 2014 – World Energy Solutions, Inc. (NASDAQ: XWES), a leading energy technology and services firm, today announced financial results for the three and six months ended June 30, 2014.

Financial Highlights (All figures are in US dollars; comparisons of performance are made between Q2 2014 results and Q2 2013 results, unless otherwise noted.)

Revenue and Backlog

  • Quarterly revenue grew 18% to $9.4 million
  • Revenue for the six-month period increased 14% to $18.9 million
  • Annualized backlog grew 1% to $24.3 million
  • Total backlog increased 2% to $45.0 million

Operating Results

  • EBITDA climbed to a record $1.3 million, up from ($0.2) million
    • EBITDA margin was 14%, up from (3%)
  • Net income improved to $0.3 million, or $0.02 per share, up from a ($1.7) million loss or ($0.14) per share
  • Gross margins in the quarter rose to 77%, up from 73%
    • Energy procurement gross margins increased to 88% from 82%
    • Energy efficiency services gross margins increased to 21% from 9%

Liquidity and Balance Sheet

  • Cash and cash equivalents were $2.3 million at quarter end, a 33% increase from December 31, 2013
  • The Company retired the last of its seller-note and earnout obligations

“The second quarter marks a return to GAAP net income for World Energy,” said Phil Adams, CEO of World Energy Solutions. “Not only did we show double-digit organic revenue growth, but we achieved record EBITDA and reached quarterly profitability more quickly than expected.  We also continued to generate cash, growing our cash balance 33% from year end, while retiring the last $500,000 in seller notes from our acquisitions.

“In Q2, our energy procurement team posted strong sales, as energy prices moved down from their winter highs. Our energy efficiency team also had a successful sales quarter, growing revenue by nearly 50% over Q2 2013 and increasing margins. We expect the energy efficiency segment to generate net income for the second half of the year.

“Based on our results through the first half of the year, a strong sales pipeline, and continued improvement in sales and operational performance, we are again raising our view on EBITDA growth. We now forecast we will double last year’s EBITDA and reach GAAP profitability for the full year.”

Financial Review

Q2 2014

Revenue for the three months ended June 30, 2014 increased 18% to $9.4 million as revenue from both segments increased compared to the same period last year. Energy procurement revenue rose 14%, reflecting increased transaction activity from our auction and mid-market customers as well as higher revenue recognized from previously deferred items. Energy efficiency services grew 47% as our rebuilt Massachusetts sales team gained traction in the market and delivered an increase in the number of projects and the average project size in the second quarter of 2014.

Gross margins improved to 77% compared to 73% in the same period last year, reflecting an increase in both segments. Energy procurement gross margins increased to 88%, from 82%, reflecting a decrease in payroll due to our continued integration, automation, and reorganization efforts to improve processes and drive scalability. Energy efficiency services gross margins increased to 21%, from 9% in the same period last year, due to improved contribution margins on projects completed during the quarter. Operating expenses as a percentage of sales decreased to 73%, from 89% in the same period last year, primarily resulting from the growth in revenue while costs decreased slightly. The decrease in costs reflects a reduction in internal commissions resulting primarily from the change in commission structure for our mid-market group at the beginning of the second quarter of 2013. Our operating margin improved to 4% as compared to (16%) in the same period last year, and EBITDA* margin was 14% compared to a deficit of (3%) in the prior year quarter. We recorded a $0.1 million income tax benefit for the three months ended June 30, 2014 compared to a $0.1 million income tax expense in the same period last year as we utilized an actual effective tax rate in 2014 due to changes in our financial projections for the full year. Net income was $0.3 million, or $0.02 per share, for the three months ended June 30, 2014 compared to a net loss of ($1.7) million, or ($0.14) per share in 2013.

At June 30, 2014, we had cash and cash equivalents of $2.3 million compared to $1.7 million at December 31, 2013 and $2.6 million at March 31, 2014. The decrease in cash and cash equivalents during the quarter was primarily due to the final $0.5 million Seller note payment to Northeast Energy Partners, LLC (“NEP”), a CT-based mid-market energy procurement firm we acquired in 2012. Free cash flow was $0.2 million for the quarter, or $0.02 per share. Free cash flow decreased from the same period last year due to our strengthening working capital position. Excluding this increase in working capital, our cash flow from operations, adjusted for non-cash expense items, was $1.3 million for the quarter compared to ($0.3) million in Q2 2013. In addition, on April 4, 2014, we settled all outstanding earnout claims with the former owners of GSE Consulting, LP (“GSE”), a TX-based mid-market energy procurement firm we acquired in 2011, by issuing 200,000 shares of common stock. We have now settled all of our seller-note and earnout obligations. The Company continues to maintain a $2.5 million line-of-credit with Commerce Bank and has not borrowed against this facility.

Year-to-Date 2014

Revenue for the six months ended June 30, 2014 rose 14% over the same period last year to $18.9 million as revenue from both segments increased over the same period last year. Energy procurement increased 11%, reflecting increased transaction activity from our auction and mid-market customers, as well as increased revenue recognized from previously deferred items. These increases were partially offset by decreases in wholesale and gas transaction activity as increased commodity prices during the first quarter delayed contracting decisions by listers. Energy efficiency services increased 35% as our rebuilt Massachusetts sales team gained traction in the market and delivered increased revenue in the NSTAR territory in Massachusetts during 2014. Gross margins were 77% for the six months ended June 30, 2014 compared to 74% for the same period last year, reflecting an increase in both segments. Energy procurement gross margins increased to 87%, from 83%, primarily resulting from a decrease in payroll resulting from our continued integration, automation, and reorganization efforts to improve processes and drive scalability. Energy efficiency services gross margins increased to 19%, from 15% in the same period last year, due to improved contribution margins on projects completed during the first half of 2014. Operating expenses as a percentage of sales decreased to 76%, from 85% in the same period last year, as the increase in costs was exceeded by the growth in revenue. The increase in operating expenses was primarily due to increased legal and consulting costs related to a shareholder action in the first quarter of 2014. Overall, the Company’s operating margin improved to 1% and EBITDA* margin was 11% as compared to 1% for the same period last year.

Note: Backlog relates to contracts in force on a given date representing transactions between bidders and listers on our platform related to commodity brokerage assuming listers consume energy at their historical usage levels or deliver credits at expected levels. Total backlog represents the commission that the Company would derive over the remaining life of those contracts. Annualized backlog represents the commission that the Company would derive from those contracts within the 12 months following the date on which the backlog is calculated. Total and annualized backlog at June 30, 2014 included commodity backlog of $44.3 million and $23.6 million, respectively. In addition, total and annualized backlog include contracted management fees between World Energy and energy consumers for energy management and auction administration services of $0.7 million that are expected to be received over the following 12-month period. These management fees can be terminated within 30 days per the terms of the contracts.

Conference Call & Webcast

World Energy will hold a conference call today, August 8, 2014, at 10:00 a.m. (ET) to discuss its financial results and other corporate developments. To access the conference call by telephone, dial 1 (888) 517-2458 (domestic) or 1 (847) 413-3538 (international) and enter passcode 9074853#. A replay will be available two hours after the completion of the call, and for three months following the call, by dialing 1 (888) 843-7419 for domestic participants or 1 (630) 652-3042 for international participants, and entering passcode 9895528# when prompted. Participants may also access a live webcast of the conference call through the investor relations section of World Energy’s website, www.worldenergy.com. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 90 days.for three months following the call, by dialing 1 (888) 843-7419 for domestic participants or 1 (630) 652-3042 for international participants, and entering passcode 9895528# when prompted.

* Non-GAAP Financial Measures

World Energy provides all information required in accordance with GAAP and also provides certain “non-GAAP financial measures.” A non-GAAP financial measure refers to a numerical financial measure that is included in (or excluded from) the most directly comparable financial measure calculated and presented in accordance with GAAP in the Company’s financial statements. World Energy provides EBITDA, adjusted EBITDA, net income / (loss) adjusted for non-cash items and free cash flow as additional information relating to our operating results. These non-GAAP measures exclude expenses related to share-based compensation, depreciation related to our fixed assets, amortization expense related to acquisition-related assets and other assets, interest expense on bank borrowings, notes payable to sellers and contingent consideration, interest income on invested funds and notes receivable, and income taxes.

Management believes it is useful to exclude depreciation, amortization, net interest and income tax expense as these are essentially fixed amounts that cannot be influenced by management in the short term. In addition, management believes it is useful to exclude share-based compensation as this is not a cash expense.

Management defines free cash flow as net cash provided by operating activities less capital expenditures. Management defines capital expenditures as purchases of property and equipment, which includes capitalization of internal-use software development costs.

Management uses these non-GAAP measures for internal reporting and bank reporting purposes. World Energy provides these non-GAAP financial measures in addition to GAAP financial results, because management believes that these non-GAAP financial measures provide useful information to certain investors and financial analysts in helping them to better understand the Company’s operating results and underlying operational trends. They also provide a consistent basis for comparison across accounting periods.

These non-GAAP financial measures are not prepared in accordance with GAAP. These measures may differ from the GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare the Company’s performance to that of other companies. There are significant limitations associated with the use of non-GAAP financial measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income (loss) prepared in accordance with GAAP.

Whenever World Energy reports non-GAAP financial measures, a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure will be made available. Investors are encouraged to review these reconciliations to ensure they have a thorough understanding of the reported non-GAAP financial measures and their most directly comparable GAAP financial measures. Reconciliation of GAAP net income (loss) to EBITDA and adjusted EBITDA is shown below:

About World Energy Solutions, Inc.

World Energy Solutions, Inc. (NASDAQ: XWES) is an energy technology and services firm transforming energy procurement and energy efficiency for commercial, industrial, institutional, government and utility customers. The Company’s award-winning, cloud-based auction platform, the World Energy Exchange®, its team of energy experts, and a network of more than 500 suppliers and 300 channel partners form an ecosystem that enables customers to minimize their total cost of energy. To date, World Energy has transacted over $45 billion in energy, demand response and environmental commodities, creating more than $3 billion in value for its customers. For more information, please visit www.worldenergy.com.

This press release contains forward-looking statements which involve risk and uncertainties. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “forecasts,” “projects,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company has based these forward-looking statements on its current expectations and projections about future events, including without limitation, its expectations of backlog and energy prices, and its expectations in growth in revenue, operating results, operating margins, and free cash flow. Although the Company believes that the expectations underlying any of its forward-looking statements are reasonable, these expectations may prove to be incorrect and all of these statements are subject to risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions, projections or expectations prove incorrect, actual results, performance or financial condition may vary materially and adversely from those anticipated, estimated or expected. Such risks and uncertainties include, but are not limited to the following: the Company’s revenue and backlog are dependent on actual future energy purchases pursuant to completed procurements; the demand for the Company’s services is affected by changes in regulated prices or cyclicality or volatility in competitive market prices for energy; the potential impact on the Company’s historical and prospective financial results of a change in accounting policy may negatively impact its stock price; and other factors outside the Company’s control that affect transaction volume in the electricity market. Additional risk factors are identified in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 and subsequent reports filed with the Securities and Exchange Commission. The forward-looking statements made in this press release are made as at the date hereof. Readers are cautioned not to place undue reliance on forward-looking statements as actual results could differ materially from the forward-looking statements expressed in this press release. Forward-looking statements are provided for the purpose of presenting information about management’s current expectations relating to the future, and readers are cautioned that such statements may not be appropriate for other purposes. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, other than as required by securities laws. 

For additional information, contact:

Jim Parslow
World Energy Solutions, Inc.
(508) 459-8100
jparslow@worldenergy.com

or

Dan Mees
World Energy Solutions, Inc.
(508) 459-8156
dmees@worldenergy.com

or

In Canada:
Craig Armitage
The Equicom Group
(416) 815-0700 x278
carmitage@equicomgroup.com

 

Source: World Energy Solutions, Inc.

 

World Energy Solutions to Release Fiscal Second Quarter 2014 Earnings Results and Host Conference Call on August 8, 2014

Worcester, MA – July 24, 2014 – World Energy Solutions, Inc. (NASDAQ: XWES), a leading energy management services firm, will release financial results for its fiscal second quarter 2014 on Friday, August 8, 2014, before the market opens, and will host a conference call later that morning at 10:00 a.m. ET to discuss the results.

World Energy Solutions invites all those interested in hearing management’s discussion of its results to join the call by dialing 1 (888) 517-2458 and entering passcode 9074853#. International participants may access the call by dialing 1 (847) 413-3538 and entering passcode 9074853#. A replay will be available two hours after the completion of the call, and for three months following the call, by dialing 1 (888) 843-7419 for domestic participants or 1 (630) 652-3042 for international participants, and entering passcode 9895528# when prompted.

Participants may also access a live webcast of the conference call through the investor relations section (see “Events”) of World Energy’s website, www.worldenergy.com. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to play the webcast. An archived replay of the webcast will be available for 90 days in the same section of the website.

For more news and information on World Energy Solutions, Inc., please visit www.worldenergy.com.

About World Energy Solutions, Inc.
World Energy Solutions, Inc. (NASDAQ: XWES) is an energy technology and services firm transforming energy procurement and energy efficiency for commercial, industrial, institutional, government and utility customers. The Company’s award-winning, cloud-based auction platform, the World Energy Exchange®, its team of energy experts, and a network of more than 500 suppliers and 300 channel partners form an ecosystem that enables customers to minimize their total cost of energy. To date, World Energy has transacted over $45 billion in energy, demand response and environmental commodities, creating more than $3 billion in value for its customers. For more information, please visit www.worldenergy.com.

This press release contains forward-looking statements. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company has based these forward-looking statements on its current expectations and projections about future events, including without limitation, its expectations of backlog and energy prices. Although the Company believes that the expectations underlying any of its forward-looking statements are reasonable, these expectations may prove to be incorrect and all of these statements are subject to risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions, projections or expectations prove incorrect, actual results, performance or financial condition may vary materially and adversely from those anticipated, estimated or expected. Such risks and uncertainties include, but are not limited to the following: the Company’s revenue and backlog are dependent on actual future energy purchases pursuant to completed procurements; the demand for the Company’s services is affected by changes in regulated prices or cyclicality or volatility in competitive market prices for energy; the potential impact on the Company’s historical and prospective financial results of a change in accounting policy may negatively impact its stock price; and other factors outside the Company’s control that affect transaction volume in the electricity market. Additional risk factors are identified in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 and subsequent reports filed with the Securities and Exchange Commission. The forward-looking statements made in this press release are made as at the date hereof. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, other than as required by securities laws.

For additional information, contact:

Dan Mees
World Energy Solutions, Inc.
(508) 459-8156
dmees@worldenergy.com

Source: World Energy Solutions, Inc.

World Energy Solutions Announces Q1 Financial Results

Company Posts Record Q1 Revenue, Shows Strong EBITDA and Free Cash Flow Growth

Worcester, MA – May 8, 2014 – World Energy Solutions, Inc. (NASDAQ: XWES), a leading energy management services firm, today announced financial results for the first quarter ended March 31, 2014.

Financial Highlights (All figures are in US dollars and compare the first quarter 2014 results to the corresponding period in the prior year, unless otherwise noted.)

Revenue and Backlog

  • Quarterly revenue grew 10% to $9.5 million, a record for Q1
    • Energy procurement revenue rose 7%
    • Energy efficiency services revenue increased 25%
  • Backlog remained stable due to the unusually high pricing environment
    • Annualized backlog ticked up 0.4% to $23.9 million
    • Total backlog declined 0.1% to $43.8 million

Operating Results

  • EBITDA grew 82% to $0.8 million
  • Net loss decreased 48% to ($0.5) million, or ($0.04) per share, and included more than $0.03 per share in one-time legal and other costs related to a shareholder action
  • Gross margins improved to 76%
    • Energy procurement gross margins ticked up to 87%
    • Energy efficiency services gross margins declined 2% to 18%

Liquidity and Balance Sheet

  • Cash flow from operations was $0.9 million, up 34%
  • Free cash flow was $0.8 million, up 28%
  • Cash and cash equivalents were $2.6 million, a 23% increase
  • Subsequent to quarter end, the Company retired the last of its seller-note and earnout obligations for the NEP and GSE Consulting acquisitions.

“The themes we outlined several weeks ago on our 2013 year-end earnings call are playing out as previewed, resulting in Q1 performance that continues a trend of recovery and improvement, highlighted by solid revenue growth and increasing cash generation,” said Phil Adams, CEO, World Energy Solutions.

“These achievements all occurred against the backdrop of rising energy commodity prices, which caused many of our customers to delay energy-contracting decisions in the quarter, temporarily curbing backlog growth. Subsequent to quarter end, we have seen an uptick in transaction activity due to a combination of moderating prices and customers accepting the current pricing environment as a ‘new normal.’

“Based on our Q1 performance, and visibility into our 2014 sales pipeline and revenue backlog, we continue to anticipate double-digit organic growth in 2014, while raising our view on EBITDA growth from 40% to 60%.”

Financial Review

Revenue for the three months ended March 31, 2014 increased 10% to $9.5 million, as revenue from both segments increased over the same period last year. Energy procurement increased 7%, reflecting increased revenue in our retail product line from both our auction and mid-market customers. These increases were partially offset by decreases in wholesale and natural-gas transaction activity within the quarter as increases in commodity prices resulted in delayed contracting decisions by listers. Energy efficiency services grew 25% as our reorganization of the Massachusetts sales team in 2013 resulted in increased revenue in the NSTAR territory in Massachusetts during the quarter.

Gross margins improved to 76% compared to 74% in the same period last year, reflecting an increase in Energy procurement margins. Energy procurement gross margins increased 4% to 87%, reflecting our continued integration efforts to improve processes and drive scalability. Energy efficiency services gross margins declined 2% to 18% due to slightly lower contribution margins on projects completed in the first quarter of 2014. Operating expenses as a percentage of sales decreased 2% to 79% as the growth in revenue exceeded the increase in costs. The increase in costs was primarily related to legal and other costs resulting from the shareholder action in the first quarter of 2014. Our operating margin improved 65% to (3)%, and EBITDA* margin was 8% compared to 5% in the prior year quarter.

At March 31, 2014, we had cash and cash equivalents of $2.6 million compared to $1.7 million at December 31, 2013 and $2.1 million at March 31, 2013. The increase in cash and cash equivalents during the quarter was primarily from free cash flows of $0.8 million during the quarter. As of March 31, 2014, we have substantially retired all of our acquisition-related obligations. We made the final $0.5 million Seller note payment to NEP on April 1, 2014, and on April 4, 2014, we settled all outstanding earnout claims with GSE for 200,000 shares of common stock. Free cash flow was $0.8 million for the quarter, or $0.07 per share, an increase of 28% over the same period last year. The Company continues to maintain a $2.5 million line-of-credit with Commerce Bank and has not borrowed against this facility.

Note: Backlog relates to contracts in force on a given date representing transactions between bidders and listers on our platform related to commodity brokerage assuming listers consume energy at their historical usage levels or deliver credits at expected levels. Total backlog represents the commission that the Company would derive over the remaining life of those contracts. Annualized backlog represents the commission that the Company would derive from those contracts within the 12 months following the date on which the backlog is calculated. Total and annualized backlog at March 31, 2014 included commodity backlog of $43.1 million and $23.2 million, respectively. In addition, total and annualized backlog include contracted management fees between World Energy and energy consumers for energy management and auction administration services of $0.7 million that are expected to be received over the following 12-month period. These management fees can be terminated within 30 days per the terms of the contracts.

Conference Call & Webcast

World Energy will hold a conference call today, May 8, 2014 at 10:00 a.m. (ET) to discuss its financial results and other corporate developments. To access the conference call by telephone, dial 1 (888) 517-2513 (domestic) or 1 (847) 619-6533 (international) and enter passcode 9354319#. A replay will be available two hours after the completion of the call, and for one month following the call, by dialing 1 (888) 843-7419 for domestic participants or 1 (630) 652-3042 for international participants, and entering passcode 9895528# when prompted.

Participants may also access a live webcast of the conference call through the investor relations section of World Energy’s website, www.worldenergy.com. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 30 days.

* Non-GAAP Financial Measures

World Energy provides all information required in accordance with GAAP and also provides certain “non-GAAP financial measures.” A non-GAAP financial measure refers to a numerical financial measure that is included in (or excluded from) the most directly comparable financial measure calculated and presented in accordance with GAAP in the Company’s financial statements. World Energy provides EBITDA, adjusted EBITDA and free cash flow as additional information relating to our operating results. These non-GAAP measures exclude expenses related to share-based compensation, depreciation related to our fixed assets, amortization expense related to acquisition-related assets and other assets, interest expense on bank borrowings, notes payable to sellers and contingent consideration, interest income on invested funds and notes receivable, and income taxes.

Management believes it is useful to exclude depreciation, amortization, share-based compensation, net interest and income tax expense as these are essentially fixed amounts that cannot be influenced by management in the short term. Management defines free cash flow as net cash provided by operating activities less capital expenditures. Management defines capital expenditures as purchases of property and equipment, which includes capitalization of internal-use software development costs.

Management uses these non-GAAP measures for internal reporting and bank reporting purposes. World Energy provides these non-GAAP financial measures in addition to GAAP financial results, because management believes that these non-GAAP financial measures provide useful information to certain investors and financial analysts in helping them to better understand the Company’s operating results and underlying operational trends. They also provide a consistent basis for comparison across accounting periods.

These non-GAAP financial measures are not prepared in accordance with GAAP. These measures may differ from the GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare the Company’s performance to that of other companies. There are significant limitations associated with the use of non-GAAP financial measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net loss prepared in accordance with GAAP.

Whenever World Energy reports non-GAAP financial measures, a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure will be made available. Investors are encouraged to review these reconciliations to ensure they have a thorough understanding of the reported non-GAAP financial measures and their most directly comparable GAAP financial measures. The reconciliation of GAAP net loss to EBITDA and adjusted EBITDA is shown below:

Q1 2014 EBITDA FINAL

 

About World Energy Solutions, Inc.

World Energy Solutions, Inc. (NASDAQ: XWES) is an energy technology and services firm transforming energy procurement and energy efficiency for commercial, industrial, institutional, government and utility customers. The Company’s award-winning, cloud-based auction platform, the World Energy Exchange®, its team of energy experts, and a network of more than 500 suppliers and 300 channel partners form an ecosystem that enables customers to minimize their total cost of energy. To date, World Energy has transacted over $45 billion in energy, demand response and environmental commodities, creating more than $3 billion in value for its customers. For more information, please visit www.worldenergy.com.

This press release contains forward-looking statements which involve risk and uncertainties. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “forecasts,” “projects,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company has based these forward-looking statements on its current expectations and projections about future events, including without limitation, its expectations of backlog and energy prices, and its expectations in growth in revenue, operating results, operating margins, and free cash flow. Although the Company believes that the expectations underlying any of its forward-looking statements are reasonable, these expectations may prove to be incorrect and all of these statements are subject to risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions, projections or expectations prove incorrect, actual results, performance or financial condition may vary materially and adversely from those anticipated, estimated or expected. Such risks and uncertainties include, but are not limited to the following: the Company’s revenue and backlog are dependent on actual future energy purchases pursuant to completed procurements; the demand for the Company’s services is affected by changes in regulated prices or cyclicality or volatility in competitive market prices for energy; the potential impact on the Company’s historical and prospective financial results of a change in accounting policy may negatively impact its stock price; and other factors outside the Company’s control that affect transaction volume in the electricity market. Additional risk factors are identified in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 and subsequent reports filed with the Securities and Exchange Commission. The forward-looking statements made in this press release are made as at the date hereof. Readers are cautioned not to place undue reliance on forward-looking statements as actual results could differ materially from the forward-looking statements expressed in this press release. Forward-looking statements are provided for the purpose of presenting information about management’s current expectations relating to the future, and readers are cautioned that such statements may not be appropriate for other purposes. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, other than as required by securities laws.

For additional information, contact:

Jim Parslow
World Energy Solutions, Inc.
(508) 459-8100
jparslow@worldenergy.com

or

Dan Mees
World Energy Solutions, Inc.
(508) 459-8156
dmees@worldenergy.com

or

In Canada:
Craig Armitage
The Equicom Group
(416) 815-0700 x278
carmitage@equicomgroup.com

Source: World Energy Solutions, Inc.

Summary of Condensed Consolidated Statements of Operations Q1 2014 FINAL

 

 

World Energy Solutions to Release Fiscal First Quarter 2014 Earnings Results and Host Conference Call on May 8, 2014

Worcester, MA – May 5, 2014 – World Energy Solutions, Inc. (NASDAQ: XWES), a leading energy management services firm, will release financial results for its fiscal first quarter 2014 on Thursday, May 8, 2014, before the market opens, and will host a conference call later that morning at 10:00 a.m. ET to discuss the results.

World Energy Solutions invites all those interested in hearing management’s discussion of its results to join the call by dialing 1 (888) 517-2513 and entering passcode 9354319#. International participants may access the call by dialing 1 (847) 619-6533 and entering passcode 9354319#. A replay will be available two hours after the completion of the call, and for one month following the call, by dialing 1 (888) 843-7419 for domestic participants or 1 (630) 652-3042 for international participants, and entering passcode 9895528# when prompted.

Participants may also access a live webcast of the conference call through the investor relations section (see “Events”) of World Energy’s website, www.worldenergy.com. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to play the webcast. An archived replay of the webcast will be available for 30 days.

For more news and information on World Energy Solutions, Inc., please visit www.worldenergy.com.

About World Energy Solutions, Inc.

World Energy Solutions, Inc. (NASDAQ: XWES) is an energy technology and services firm transforming energy procurement and energy efficiency for commercial, industrial, institutional, government and utility customers. The Company’s award-winning, cloud-based auction platform, the World Energy Exchange®, its team of energy experts, and a network of more than 500 suppliers and 300 channel partners form an ecosystem that enables customers to minimize their total cost of energy. To date, World Energy has transacted over $45 billion in energy, demand response and environmental commodities, creating more than $3 billion in value for its customers. For more information, please visit www.worldenergy.com.

This press release contains forward-looking statements. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company has based these forward-looking statements on its current expectations and projections about future events, including without limitation, its expectations of backlog and energy prices. Although the Company believes that the expectations underlying any of its forward-looking statements are reasonable, these expectations may prove to be incorrect and all of these statements are subject to risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions, projections or expectations prove incorrect, actual results, performance or financial condition may vary materially and adversely from those anticipated, estimated or expected. Such risks and uncertainties include, but are not limited to the following: the Company’s revenue and backlog are dependent on actual future energy purchases pursuant to completed procurements; the demand for the Company’s services is affected by changes in regulated prices or cyclicality or volatility in competitive market prices for energy; the potential impact on the Company’s historical and prospective financial results of a change in accounting policy may negatively impact its stock price; and other factors outside the Company’s control that affect transaction volume in the electricity market. Additional risk factors are identified in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 and subsequent reports filed with the Securities and Exchange Commission. The forward-looking statements made in this press release are made as at the date hereof. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, other than as required by securities laws.

For additional information, contact:

Dan Mees
World Energy Solutions, Inc.
(508) 459-8156
dmees@worldenergy.com

Source: World Energy Solutions, Inc.

 

World Energy Solutions Announces Q4 and Full-Year 2013 Financial Results

Worcester, MA – March 31, 2014 – World Energy Solutions, Inc. (NASDAQ: XWES), a leading energy management services firm, today announced financial results for the fourth quarter and fiscal year ended December 31, 2013.

Financial Highlights (All figures are in US dollars and compare the fourth quarter and annual 2013 results to the corresponding periods in the prior year.)

Revenue and Backlog

  • Annual revenue grew 9% to $34.7 million
    • Energy procurement grew 18% to $28.9 million
    • Energy efficiency services declined 21% to $5.8 million
  • Q4 revenue decreased 8% to $9.3 million, reflecting the decline in energy efficiency services revenue
  • Backlog grew to record levels
    • Annual backlog increased to $24.9 million
    • Total backlog improved to $47.5 million

Operating Results

  • EBITDA*
    • Increased 40% to a record $2.3 million for the year
    • Decreased $30,000 to $1.2 million in Q4
  • Free cash flow
    • $2.9 million, or $0.24 per share, for the year
    • $0.9 million, or $0.08 per share, for Q4
  • Net income (loss)
    • ($2.3 million), or ($0.19) per share, for the year
    • $0.9 million, or $0.07 per share, for Q4, reflecting a tax benefit within the quarter
  • Gross margins for the year improved to 73%
    • 84% in Energy procurement, a 3% increase
    • 19% in Energy efficiency services, an 8% decrease

Liquidity and Balance Sheet

  • Cash and cash equivalents at year end were $1.7 million, down from $3.3 million in 2012, as the Company paid $4.7 million in acquisition and debt obligations in 2013
  • Deferred revenue increased $2.1 million to $7.5 million for the year
  • In December 2013, the Company refinanced its credit facility with Commerce Bank

“World Energy showed great tenacity and resolve in 2013 to drive the Company forward while addressing a revenue restatement resulting from the GSE acquisition, the integration of GSE, NES and NEP, and a rising commodity-price environment,” said Phil Adams, CEO of World Energy Solutions. “From an operating perspective, we saw double-digit growth in our procurement segment, gross margins improve, free cash flow remain strong, and EBITDA and backlog reach record levels. While efficiency results were substantially below plan due to personnel issues, we have bolstered, reorganized, and reenergized the team, and have seen performance improvement emerge in Q4, and extend into Q1 2014.

“Innovation through software development is a significant part of our strategy. We are quite proud that our World Energy Exchange® recently won a Product of the Year Award from Environmental Leader.  As part of our integration efforts, we are extending our Exchange’s capabilities into the mid-market, enabling sealed bid auctions into that customer segment with the ultimate goal of creating a self-serve platform for the brokerage community. We also launched Q, our automated audit and proposal generating tool, aimed at improving the productivity of our efficiency team.

“Looking ahead, we aim to drive increasing volumes through our Exchange through technology advances and more active engagement of our channel strategy. We anticipate double-digit revenue growth, with EBITDA scaling over 40% for the full year.”

Financial Review

Full Year 2013

Revenue for the year ended December 31, 2013 rose 9% over the same period last year to $34.7 million, as Energy procurement grew 18% to $28.9 million and Energy efficiency services decreased by 21% to $5.8 million. The increase in Energy procurement reflects continued execution in the Company’s retail product line and the acquisition of NEP in Q4 2012. The decrease in Energy efficiency services reflects the turnover of the Massachusetts sales team that occurred in 2013.

Gross margins were 73% for the year ended December 31, 2013 compared to 68% for the same period last year, reflecting a greater mix of higher margin procurement revenue in 2013 compared to 2012. Energy procurement gross margins increased 3% to 84%. Energy efficiency services gross margins were 19% compared to 27% for the year ended December 31, 2012, reflecting increased payroll costs associated with additional personnel. The Company’s operating margin was (5)% for both periods and EBITDA* margin was 7% compared to 5% in the prior year.

During 2013, the Company paid $4.7 million in acquisition and debt obligations. These payments were funded by $2.9 million of free cash flow generated by the Company in 2013 and cash on hand of $1.6 million. As a result, cash and cash equivalents decreased to $1.7 million at December 31, 2013 compared with $3.3 million at December 31, 2012. At December 31, 2013, the Company has substantially retired all of its acquisition-related obligations. There are two    acquisition-related obligations remaining that are scheduled to be retired in the first half of 2014. Free cash flow for the year was $2.9 million, or $0.24 per share, a decrease of $0.5 million compared to the same period in 2012, reflecting the change in the Company’s revenue-recognition policy for its mid-market group and its decision to implement a bookings bonus program to offset the effect of that change on the Company’s mid-market sales reps. The Company has a $2.5 million line-of-credit with Commerce Bank and has not borrowed against this facility.

Q4 2013

Revenue for the three months ended December 31, 2013 decreased 8% over the same period last year to $9.3 million, as Energy procurement grew 3% and Energy efficiency services declined 34%.

Gross margins were 71% for the quarter ended December 31, 2013 compared to 66% for the same period last year, reflecting a greater mix of higher margin procurement revenue in the quarter. Energy procurement gross margins increased 3% to 86% as the Company continues to integrate operations, enhance its technology platform to improve processes and drive scalability. Energy efficiency services gross margins were 21% compared to 30% in Q4 2012, reflecting increased staffing levels in anticipation of executing an increased number of projects in 2013. The Company’s operating margin remained relatively constant at 2% and EBITDA* margin was 13% compared to 12% in the prior year quarter.

Note: Backlog relates to contracts in force on a given date representing transactions between bidders and listers on our platform related to commodity brokerage assuming listers consume energy at their historical usage levels or deliver credits at expected levels. Total backlog represents the commission that the Company would derive over the remaining life of those contracts. Annualized backlog represents the commission that the Company would derive from those contracts within the 12 months following the date on which the backlog is calculated. Total and annualized backlog at December 31, 2013 included commodity backlog of $46.8 million and $24.2 million, respectively. In addition, total and annualized backlog include contracted management fees between World Energy and energy consumers for energy management and auction administration services of $0.7 million that are expected to be received over the following 12-month period. These management fees can be terminated within 30 days per the terms of the contracts.

Conference Call & Webcast
World Energy will hold a conference call today, March 31, 2014 at 10:00 a.m. (ET) to discuss its financial results and other corporate developments. To access the conference call by telephone, dial 1 (888) 517-2458 (domestic) or 1 (847) 413-3538 (international) and enter passcode 6744440#. A replay will be available two hours after the completion of the call, and for one month following the call, by dialing 1 (888) 843-7419 for domestic participants or 1 (630) 652-3042 for international participants, and entering passcode 9895528# when prompted.

Participants may also access a live webcast of the conference call through the investor relations section of World Energy’s website, www.worldenergy.com. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 30 days.  

* Non-GAAP Financial Measures

World Energy provides all information required in accordance with GAAP and also provides certain “non-GAAP financial measures.” A non-GAAP financial measure refers to a numerical financial measure that is included in (or excluded from) the most directly comparable financial measure calculated and presented in accordance with GAAP in the Company’s financial statements. World Energy provides EBITDA, adjusted EBITDA and free cash flow as additional information relating to our operating results. These non-GAAP measures exclude expenses related to share-based compensation, depreciation related to our fixed assets, amortization expense related to acquisition-related assets and other assets, interest expense on bank borrowings, notes payable to sellers and contingent consideration, interest income on invested funds and notes receivable, and income taxes.

Management believes it is useful to exclude depreciation, amortization, share-based compensation, net interest and income tax expense as these are essentially fixed amounts that cannot be influenced by management in the short term. Management defines free cash flow as net cash provided by operating activities less capital expenditures. Management defines capital expenditures as purchases of property and equipment, which includes capitalization of internal-use software development costs.

Management uses these non-GAAP measures for internal reporting and bank reporting purposes. World Energy provides these non-GAAP financial measures in addition to GAAP financial results, because management believes that these non-GAAP financial measures provide useful information to certain investors and financial analysts in helping them to better understand the Company’s operating results and underlying operational trends. They also provide a consistent basis for comparison across accounting periods.

These non-GAAP financial measures are not prepared in accordance with GAAP. These measures may differ from the GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare the Company’s performance to that of other companies. There are significant limitations associated with the use of non-GAAP financial measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net loss prepared in accordance with GAAP.

Whenever World Energy reports non-GAAP financial measures, a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure will be made available. Investors are encouraged to review these reconciliations to ensure they have a thorough understanding of the reported non-GAAP financial measures and their most directly comparable GAAP financial measures. The reconciliation of GAAP net loss to EBITDA and adjusted EBITDA is shown below:

GAAP Net Loss to EBITDA 490x290 Adjust EBITDA490x180

About World Energy Solutions, Inc.

World Energy Solutions, Inc. (NASDAQ: XWES) is an energy technology and services firm transforming energy procurement and energy efficiency for commercial, industrial, institutional, government and utility customers. The Company’s award-winning, cloud-based auction platform, the World Energy Exchange®, its team of energy experts, and a network of more than 500 suppliers and 300 channel partners form an ecosystem that enables customers to minimize their total cost of energy. To date, World Energy has transacted over $40 billion in energy, demand response and environmental commodities, creating more than $2 billion in value for its customers. For more information, please visit www.worldenergy.com.    

This press release contains forward-looking statements which involve risk and uncertainties. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “forecasts,” “projects,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company has based these forward-looking statements on its current expectations and projections about future events, including without limitation, its expectations of backlog and energy prices, and its expectations in growth in revenue, operating results, operating margins, and free cash flow. Although the Company believes that the expectations underlying any of its forward-looking statements are reasonable, these expectations may prove to be incorrect and all of these statements are subject to risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions, projections or expectations prove incorrect, actual results, performance or financial condition may vary materially and adversely from those anticipated, estimated or expected. Such risks and uncertainties include, but are not limited to the following: the Company’s revenue and backlog are dependent on actual future energy purchases pursuant to completed procurements; the demand for the Company’s services is affected by changes in regulated prices or cyclicality or volatility in competitive market prices for energy; the potential impact on the Company’s historical and prospective financial results of a change in accounting policy may negatively impact its stock price; and other factors outside the Company’s control that affect transaction volume in the electricity market. Additional risk factors are identified in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 and subsequent reports filed with the Securities and Exchange Commission. The forward-looking statements made in this press release are made as at the date hereof. Readers are cautioned not to place undue reliance on forward-looking statements as actual results could differ materially from the forward-looking statements expressed in this press release. Forward-looking statements are provided for the purpose of presenting information about management’s current expectations relating to the future, and readers are cautioned that such statements may not be appropriate for other purposes. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, other than as required by securities laws.

For additional information, contact:

Jim Parslow
World Energy Solutions, Inc.
(508) 459-8100
jparslow@worldenergy.com

or

Dan Mees
World Energy Solutions, Inc.
(508) 459-8156
dmees@worldenergy.com

or

In Canada:
Craig Armitage
The Equicom Group
(416) 815-0700 x278
carmitage@equicomgroup.com

Source: World Energy Solutions, Inc.

Summary of Condensed Consolidated Statements of Operations490x333 Summary of Condensed Consolidated Balance Sheet490x356

World Energy Solutions to Release Fiscal Fourth Quarter and Year End 2013 Earnings Results and Host Conference Call on March 31, 2014

Worcester, MA – March 17, 2014 – World Energy Solutions, Inc. (NASDAQ: XWES), a leading energy management services firm, will release financial results for its fiscal fourth quarter and year end 2013 on Monday, March 31, 2014, before the market opens, and will host a conference call later that morning at 10:00 a.m. ET to discuss the results.

World Energy Solutions invites all those interested in hearing management’s discussion of its results to join the call by dialing 1 (888) 517-2458 and entering passcode 6744440#. International participants may access the call by dialing 1 (847) 413-3538 and entering passcode 6744440#. A replay will be available two hours after the completion of the call, and for one month following the call, by dialing 1 (888) 843-7419 for domestic participants or 1 (630) 652-3042 for international participants, and entering passcode 9895528# when prompted.

Participants may also access a live webcast of the conference call through the investor relations section (see “Events”) of World Energy’s website, www.worldenergy.com. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to play the webcast. An archived replay of the webcast will be available for 30 days.

For more news and information on World Energy Solutions, Inc., please visit www.worldenergy.com.

About World Energy Solutions, Inc.

World Energy Solutions, Inc. (NASDAQ: XWES) is an energy management services firm that brings together the passion, processes and technologies to take the complexity out of energy management and turn it into bottom-line impact for the businesses, institutions and governments we serve. To date, the Company has transacted more than $40 billion in energy, demand response and environmental commodities on behalf of its customers, creating more than $2 billion in value for them. World Energy is also a leader in the global carbon market, where its World Energy Exchange® supports the Regional Greenhouse Gas Initiative (RGGI), the first mandatory market-based regulatory program in the U.S. to reduce greenhouse gas emissions. For more information, please visit www.worldenergy.com.

This press release contains forward-looking statements. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company has based these forward-looking statements on its current expectations and projections about future events, including without limitation, its expectations of backlog and energy prices. Although the Company believes that the expectations underlying any of its forward-looking statements are reasonable, these expectations may prove to be incorrect and all of these statements are subject to risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions, projections or expectations prove incorrect, actual results, performance or financial condition may vary materially and adversely from those anticipated, estimated or expected. Such risks and uncertainties include, but are not limited to the following: the Company’s revenue and backlog are dependent on actual future energy purchases pursuant to completed procurements; the demand for the Company’s services is affected by changes in regulated prices or cyclicality or volatility in competitive market prices for energy; the potential impact on the Company’s historical and prospective financial results of a change in accounting policy may negatively impact its stock price; and other factors outside the Company’s control that affect transaction volume in the electricity market. Additional risk factors are identified in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 and subsequent reports filed with the Securities and Exchange Commission.The forward-looking statements made in this press release are made as at the date hereof. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, other than as required by securities laws.

For additional information, contact:

Dan Mees
World Energy Solutions, Inc.
(508) 459-8156
dmees@worldenergy.com

Source: World Energy Solutions, Inc.

World Energy Solutions to Announce Third Quarter 2013 Financial Results on November 8, 2013

Worcester, MA – October 29, 2013 – World Energy Solutions, Inc. (NASDAQ: XWES), a leading energy management services firm, will release financial results for its fiscal third quarter 2013 on Friday, November 8, 2013 before the market opens, and will host a conference call later that morning at 10:00 a.m. ET to discuss the results.

World Energy Solutions invites all those interested in hearing management’s discussion of its results to join the call by dialing 1 (888) 517-2485 and entering passcode 7869381#. International participants may access the call by dialing 1 (847) 413-3615 and entering passcode 7869381#. A replay will be available two hours after the completion of the call, and for one month following the call, by dialing 1 (888) 843-7419 for domestic participants or 1 (630) 652-3042 for international participants, and entering passcode 9895528# when prompted.

Participants may also access a live webcast of the conference call through the investor relations section (see “Events”) of World Energy’s website, www.worldenergy.com. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to play the webcast. An archived replay of the webcast will be available for 30 days.

About World Energy Solutions, Inc.
World Energy Solutions, Inc. (XWES) is an energy management services firm that brings together the passion, processes and technologies to take the complexity out of energy management and turn it into bottom-line impact for the businesses, institutions and governments we serve. To date, the Company has transacted more than $40 billion in energy, demand response and environmental commodities on behalf of its customers, creating more than $2 billion in value for them. World Energy is also a leader in the global carbon market, where its World Energy Exchange® supports the Regional Greenhouse Gas Initiative (RGGI), the first mandatory market-based regulatory program in the U.S. to reduce greenhouse gas emissions. For more information, please visit www.worldenergy.com.

This press release contains forward-looking statements. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company has based these forward-looking statements on its current expectations and projections about future events, including without limitation, its expectations of backlog and energy prices. Although the Company believes that the expectations underlying any of its forward-looking statements are reasonable, these expectations may prove to be incorrect and all of these statements are subject to risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions, projections or expectations prove incorrect, actual results, performance or financial condition may vary materially and adversely from those anticipated, estimated or expected. Such risks and uncertainties include, but are not limited to the following: the Company’s revenue and backlog are dependent on actual future energy purchases pursuant to completed procurements; the demand for the Company’s services is affected by changes in regulated prices or cyclicality or volatility in competitive market prices for energy; the potential impact on the Company’s historical and prospective financial results of a change in accounting policy may negatively impact its stock price; and other factors outside the Company’s control that affect transaction volume in the electricity market. Additional risk factors are identified in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 and subsequent reports filed with the Securities and Exchange Commission. The forward-looking statements made in this press release are made as at the date hereof. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, other than as required by securities laws.

Contact:
Dan Mees
World Energy Solutions, Inc.
(508) 459-8156
dmees@worldenergy.com

Source: World Energy Solutions, Inc.

World Energy Solutions Announces Q2 Financial Results

 Worcester, MA – August 8, 2013 – World Energy Solutions, Inc. (NASDAQ: XWES), a leading energy management services firm, today announced financial results for the three and six months ended June 30, 2013.

Financial Highlights (All figures are in US dollars; comparisons of performance are made between Q2 2013 results and Q2 2012 results, unless otherwise noted.)

Revenue

  • Revenue for the six-month period was up 19% to $16.6 million
  • Quarterly revenue increased 10% to $7.9 million

Backlog

  • Total backlog plus deferred revenue rose 18% to $51.2 million
  • Annualized backlog increased 10% to $23.9 million

Operating Results

  • Cash flow from operations was $0.6 million, or $0.05 per share, for the quarter; $1.2 million, or $0.10 per share, for the six-month period
  • Gross margins in the quarter improved to 73%, up from 70%
  • Net loss for the quarter was ($1.7) million or ($0.14) per share

Liquidity and Balance Sheet

  • Deferred revenue increased $0.7 million during the quarter to $7.0 million
  • Retired $0.5 million in debt to SVB in the quarter
  • Cash and cash equivalents were $2.2 million at quarter end

“Overall, I am pleased with our execution this quarter and our performance over the first half year, where we grew revenue 19 percent and generated $0.10 per share in cash flow from operations,” said Phil Adams, CEO of World Energy Solutions. “Our second quarter delivered the most revenue we’ve seen in a second quarter – traditionally our seasonally slowest quarter.  We had many successes which underscore the attractive fundamentals of our business. We had strong new bookings in our Energy Procurement segment; our Northeast Mid-Market team experienced its first successes up-selling auction deals; and cross-selling activity amongst our Energy Efficiency Services and Mid-Market groups continued to increase. In addition, we had more than half a million dollars in deals due to close in the quarter slip to Q3 and since close.

“While I am encouraged by these developments, this is clearly a transitional quarter for us. This is the second quarter where we continue to work through the effects of a revenue recognition policy change that defers revenue from certain mid-market deals to future quarters while incurring in-period expense. That said, we remain bullish on our business and know from experience that as we continue to execute the GAAP numbers will follow.”

Financial Review

Year-to-Date 2013

Revenue for the six months ended June 30, 2013 rose 19% over the same period last year to $16.6 million, as Energy Procurement grew 21%. This reflects continued execution in the Company’s retail product line, including the acquisition of NEP in Q4 2012. Energy Efficiency Services increased 4%, as we completed more projects covered by the four utility efficiency programs in 2013 as compared to 2012 and capitalized on cross-sell opportunities.

Gross margins were 74% for the six months ended June 30, 2013 compared to 72% for the same period last year, reflecting a greater mix of higher margin procurement revenue in 2013 compared to 2012. Energy Procurement gross margins increased 3% to 83% as a result of increased revenue with costs only slightly increasing over the six-months ended June 30, 2012. Energy Efficiency Services gross margins were 15% compared to 27% for the six-months ended June 30, 2012, reflecting a low contribution margin on a large municipal project completed during the period and increased payroll costs associated with additional personnel in 2013 compared to 2012 as we hired in advance of expected revenue growth in the second half of 2013. Operating expenses as a percentage of sales increased 2% to 85% as the increase in costs exceeded the growth in revenue. The increase in operating expenses was primarily due to higher payroll, commissions and amortization of intangible assets related to the NEP acquisition and general headcount increases in the Company’s sales, marketing and back office operations. As a result, the Company’s operating margin remained at (11)% and EBITDA* margin was 1% for both periods.

Q2 2013

Revenue for the three months ended June 30, 2013 rose 10% over the same period last year to $7.9 million, as Energy Procurement grew 19%. This reflects continued execution in the Company’s base business, including the acquisition of NEP in Q4 2012. Energy Efficiency Services declined 27%, as several projects completed at or near quarter end did not get utility approval until the third quarter due to a change in one utility’s close out procedures. These projects will be reflected in the Company’s third quarter results.

Gross margins were 73% for the quarter ended June 30, 2013 compared to 70% for the same period last year, reflecting a greater mix of higher margin procurement revenue in 2013 compared to 2012. Energy Procurement gross margins increased 2% to 82% as a result of increased revenue with costs only slightly increasing over Q2 2012. Energy Efficiency Services gross margins were 9% compared to 27% in Q2 2012, reflecting a low contribution margin on a large municipal project completed during the quarter and increased payroll costs associated with additional personnel in Q2 2013 as we hired in advance of expected revenue growth in the second half of 2013. Operating expenses as a percentage of sales increased 8% to 89% as the increase in costs exceeded the growth in revenue. The increase in operating expenses was primarily due to higher payroll, commissions and amortization of intangible assets related to the NEP acquisition and general headcount increases in the Company’s sales, marketing and back office operations. As a result, the Company’s operating margin declined 5% to (16)% and EBITDA* margin was (3)% compared to (1)% in the prior year quarter. As revenue continues to grow and the Company works through the effects of its mid-market revenue recognition policy change, the Company expects operating margins to improve, reflecting the inherent leverage in its model.

At June 30, 2013, the Company had cash and cash equivalents of $2.2 million, compared with $3.3 million at December 31, 2012 and $2.1 million at March 31, 2013. The increase in cash and cash equivalents during the quarter was primarily due to $0.6 million of cash flow from operations which was substantially offset by $0.5 million of principal payments on long-term debt. Cash flow from operations for the six months ended June 30, 2013 increased $0.3 million, or 30%, compared to the same period in 2012. The Company continues to maintain its $2.5 million line-of-credit and has not borrowed against that facility to date.

Note: Backlog relates to contracts in force on a given date representing transactions between bidders and listers on our platform related to commodity brokerage assuming listers consume energy at their historical usage levels or deliver credits at expected levels. Total backlog represents the commission that the Company would derive over the remaining life of those contracts. Annualized backlog represents the commission that the Company would derive from those contracts within the 12 months following the date on which the backlog is calculated. Total and annualized backlog at June 30, 2013 included commodity backlog of $43.5 million and $23.2 million, respectively. In addition, total and annualized backlog include contracted management fees between World Energy and energy consumers for energy management and auction administration services of $0.7 million that are expected to be received over the following 12-month period. These management fees can be terminated within 30 days per the terms of the contracts.

Conference Call & Webcast

World Energy will hold a conference call today, August 8, 2013, at 10:00 a.m. (ET) to discuss its financial results and other corporate developments. To access the conference call by telephone, dial 1 (888) 517-2458 (domestic) or 1 (847) 413-3538 (international) and enter passcode 6462953#. A replay will be available two hours after the completion of the call, and for one month following the call, by dialing 1 (888) 843-7419 for domestic participants or 1 (630) 652-3042 for international participants, and entering passcode 9895528# when prompted.

Participants may also access a live webcast of the conference call through the investor relations section of World Energy’s website, www.worldenergy.com. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 30 days.

* Non-GAAP Financial Measures

World Energy provides all information required in accordance with GAAP and also provides certain “non-GAAP financial measures.” A non-GAAP financial measure refers to a numerical financial measure that is included in (or excluded from) the most directly comparable financial measure calculated and presented in accordance with GAAP in the Company’s financial statements. World Energy provides EBITDA, adjusted EBITDA and free cash flow as additional information relating to our operating results. These non-GAAP measures exclude expenses related to share-based compensation, depreciation related to our fixed assets, amortization expense related to acquisition-related assets and other assets, interest expense on bank borrowings, notes payable to sellers and contingent consideration, interest income on invested funds and notes receivable, and income taxes.

Management believes it is useful to exclude depreciation, amortization, net interest and income tax expense as these are essentially fixed amounts that cannot be influenced by management in the short term. In addition, management believes it is useful to exclude share-based compensation as this is not a cash expense.

Management defines free cash flow as net cash provided by operating activities less capital expenditures. Management defines capital expenditures as purchases of property and equipment, which includes capitalization of internal-use software development costs.

Management uses these non-GAAP measures for internal reporting and bank reporting purposes. World Energy provides these non-GAAP financial measures in addition to GAAP financial results, because management believes that these non-GAAP financial measures provide useful information to certain investors and financial analysts in helping them to better understand the Company’s operating results and underlying operational trends. They also provide a consistent basis for comparison across accounting periods.

These non-GAAP financial measures are not prepared in accordance with GAAP. These measures may differ from the GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare the Company’s performance to that of other companies. There are significant limitations associated with the use of non-GAAP financial measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income prepared in accordance with GAAP.

Whenever World Energy reports non-GAAP financial measures, a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure will be made available. Investors are encouraged to review these reconciliations to ensure they have a thorough understanding of the reported non-GAAP financial measures and their most directly comparable GAAP financial measures. Reconciliation of GAAP net income to EBITDA and adjusted EBITDA is shown below:

ebidta

free cash flow

 

 

About World Energy Solutions, Inc.

World Energy Solutions, Inc. (NASDAQ: XWES) is an energy management services firm that brings together the passion, processes and technologies to take the complexity out of energy management and turn it into bottom-line impact for the businesses, institutions and governments we serve. To date, the Company has transacted more than $40 billion in energy, demand response and environmental commodities on behalf of its customers, creating more than $2 billion in value for them. World Energy is also a leader in the global carbon market, where its World Energy Exchange® supports the Regional Greenhouse Gas Initiative (RGGI), the first mandatory market-based regulatory program in the U.S. to reduce greenhouse gas emissions. For more information, please visit www.worldenergy.com.

This press release contains forward-looking statements. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company has based these forward-looking statements on its current expectations and projections about future events, including without limitation, its expectations of backlog and energy prices. Although the Company believes that the expectations underlying any of its forward-looking statements are reasonable, these expectations may prove to be incorrect and all of these statements are subject to risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions, projections or expectations prove incorrect, actual results, performance or financial condition may vary materially and adversely from those anticipated, estimated or expected. Such risks and uncertainties include, but are not limited to the following: the Company’s revenue and backlog are dependent on actual future energy purchases pursuant to completed procurements; the demand for the Company’s services is affected by changes in regulated prices or cyclicality or volatility in competitive market prices for energy; the potential impact on the Company’s historical and prospective financial results of a change in accounting policy may negatively impact its stock price; and other factors outside the Company’s control that affect transaction volume in the electricity market. Additional risk factors are identified in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 and subsequent reports filed with the Securities and Exchange Commission. The forward-looking statements made in this press release are made as at the date hereof. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, other than as required by securities laws.

For additional information, contact:

Jim Parslow
World Energy Solutions, Inc.
(508) 459-8100
jparslow@worldenergy.com

or

Dan Mees
World Energy Solutions, Inc.
(508) 459-8156
dmees@worldenergy.comSusan Forman
Dian Griesel Inc.
(212) 825-3210
sforman@dgicomm.com

or

In Canada:
Craig Armitage
The Equicom Group
(416) 815-0700 x278
carmitage@equicomgroup.com

 

statement of operations q2

balance sheet q2

 

World Energy Solutions to Announce Second Quarter 2013 Financial Results on August 8, 2013

Worcester, MA – July 25, 2013 – World Energy Solutions, Inc. (NASDAQ: XWES), a leading energy management services firm, will release financial results for its fiscal second quarter 2013 on Thursday, August 8, 2013 before the market opens, and will host a conference call later that morning at 10:00 a.m. ET to discuss the results.

World Energy Solutions invites all those interested in hearing management’s discussion of its results to join the call by dialing 1 (888) 517-2458 and entering passcode 6462953#. International participants may access the call by dialing 1 (847) 413-3538 and entering passcode 6462953#. A replay will be available two hours after the completion of the call, and for one month following the call, by dialing 1 (888) 843-7419 for domestic participants or 1 (630) 652-3042 for international participants, and entering passcode 9895528# when prompted.

Participants may also access a live webcast of the conference call through the investor relations section (see “Events”) of World Energy’s website, www.worldenergy.com. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to play the webcast. An archived replay of the webcast will be available for 30 days.

About World Energy Solutions, Inc.
World Energy Solutions, Inc. (XWES) is an energy management services firm that brings together the passion, processes and technologies to take the complexity out of energy management and turn it into bottom-line impact for the businesses, institutions and governments we serve. To date, the Company has transacted more than $40 billion in energy, demand response and environmental commodities on behalf of its customers, creating more than $2 billion in value for them. World Energy is also a leader in the global carbon market, where its World Energy Exchange® supports the Regional Greenhouse Gas Initiative (RGGI), the first mandatory market-based regulatory program in the U.S. to reduce greenhouse gas emissions. For more information, please visit www.worldenergy.com.

This press release contains forward-looking statements. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company has based these forward-looking statements on its current expectations and projections about future events, including without limitation, its expectations of backlog and energy prices. Although the Company believes that the expectations underlying any of its forward-looking statements are reasonable, these expectations may prove to be incorrect and all of these statements are subject to risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions, projections or expectations prove incorrect, actual results, performance or financial condition may vary materially and adversely from those anticipated, estimated or expected. Such risks and uncertainties include, but are not limited to the following: the Company’s revenue and backlog are dependent on actual future energy purchases pursuant to completed procurements; the demand for the Company’s services is affected by changes in regulated prices or cyclicality or volatility in competitive market prices for energy; the potential impact on the Company’s historical and prospective financial results of a change in accounting policy may negatively impact its stock price; and other factors outside the Company’s control that affect transaction volume in the electricity market. Additional risk factors are identified in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 and subsequent reports filed with the Securities and Exchange Commission. The forward-looking statements made in this press release are made as at the date hereof. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, other than as required by securities laws.

Contact:

Dan Mees
World Energy Solutions, Inc.
(508) 459-8156
dmees@worldenergy.com

Susan Forman
Dian Griesel, Inc.
(212) 825-3210
sforman@dgicomm.com

Source:  World Energy Solutions, Inc.