Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ENERNOC INC | d132620d8k.htm |
| EX-99.2 - EX-99.2 - ENERNOC INC | d132620dex992.htm |
Exhibit 99.1
| EnerNOC Media Relations: Robin Deliso 617.692.2601 news@enernoc.com |
Investor Relations: Christopher Sands 617.692.2569 ir@enernoc.com |
EnerNOC Reports Fourth Quarter and Full Year 2015 Results
Boston, February 25, 2016 — EnerNOC, Inc. (Nasdaq: ENOC), a leading provider of energy intelligence software (EIS) and demand response, today announced results for the fourth quarter and full year ended December 31, 2015, and issued management’s outlook for 2016.
“We continued to build momentum and enhance our leadership position in the EIS market during 2015,” said Tim Healy, Chairman and CEO of EnerNOC. “And following our recent landmark victory at the Supreme Court, we begin 2016 with the clarity and focus needed to drive significant growth in our software business and maximize the cash flow generation of our demand response business.”
Summary Financial Results
In Thousands, Except Per Share Amounts
| Q4 2015 | Q4 2014 | YTD 2015 | YTD 2014 | |||||||||||||
| Revenue |
$ | 59,209 | $ | 45,963 | $ | 399,584 | $ | 471,948 | ||||||||
| Net (Loss) Income |
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| GAAP |
($ | 128,980 | ) | ($ | 26,781 | ) | ($ | 185,075 | ) | $ | 12,094 | |||||
| Non-GAAP 1 |
($ | 29,193 | ) | ($ | 16,324 | ) | ($ | 56,319 | ) | $ | 39,947 | |||||
| Net (Loss) Income Per Diluted Share |
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| GAAP |
($ | 4.51 | ) | ($ | 0.98 | ) | ($ | 6.51 | ) | $ | 0.42 | |||||
| Non-GAAP 1 |
($ | 1.02 | ) | ($ | 0.60 | ) | ($ | 1.98 | ) | $ | 1.39 | |||||
| Cash Provided by Operations |
$ | 21,706 | $ | 30,727 | $ | 3,480 | $ | 60,439 | ||||||||
| Free Cash Flow 1 |
$ | 16,747 | $ | 26,022 | ($ | 16,212 | ) | $ | 42,932 | |||||||
| Adjusted EBITDA 1 |
($ | 19,559 | ) | ($ | 14,089 | ) | ($ | 21,068 | ) | $ | 76,370 | |||||
| 1 | Refer to “Statement of Use of Non-GAAP Measures” for non-GAAP definitions and refer to the financial schedules attached to this press release for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures. |
Recent Highlights
| • | The United States Supreme Court upheld Order No. 745 of the Federal Energy Regulatory Commission (FERC), affirming FERC’s jurisdiction over the participation of demand response in U.S. wholesale electricity (grid operator) markets. The Supreme Court’s ruling is a major win for EnerNOC and all distributed energy resource providers. |
| • | The Company grew its fourth quarter enterprise Annual Recurring Revenue (ARR) by $3 million sequentially to $61 million. During 2015, the Company grew its enterprise ARR from $20 million at year end 2014 to $61 million at year end 2015, including 50% organic growth. |
| • | Consolidated Edison (Con Ed) utilized the Company’s online auction platform to procure approximately $1 billion in energy and capacity for its regulated utility subsidiaries. |
| • | The Company released new functionality in its enterprise EIS platform, enabling users to track energy projects in detail including owner, status, and estimated financial impact. The new capabilities allow for a single system of record for all energy-related initiatives across an enterprise, providing visibility to every authorized user to increase efficiency and accountability. |
Commentary on Fourth Quarter and Full Year 2015 Results and Initial 2016 Outlook
The Company’s Form 8-K filed with the Securities and Exchange Commission in conjunction with this release includes an exhibit that contains management’s commentary on the fourth quarter and full year 2015 financial results, which can be accessed at www.sec.gov.
Company Issues First Quarter and Full Year 2016 Guidance
The Company today issued guidance for the first quarter and full year 2016. In addition to consolidated financial guidance, the Company is providing revenue and adjusted EBITDA guidance for its Demand Response and Software businesses. The Company intends to report both revenue and adjusted EBITDA for these businesses beginning in 2016. The Company’s guidance is based on the current indications for its business, which may change at any time.
| Guidance for Quarter Ending March 31, 2016 | ||
| Total Revenue (in millions) |
$46-$52 | |
| Demand Response Revenue |
$33-$37 | |
| Software Revenue |
$13-$15 | |
| GAAP Net Loss Per Diluted Share |
($1.82)-($1.72) | |
| Adjusted EBITDA1 (in millions) |
($34)-($31) |
| 1 | Refer to “Statement of Use of Non-GAAP Measures” for non-GAAP definitions and refer to the financial schedules attached to this press release for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures. |
| Guidance for Year Ending December 31, 2016 | ||
| Total Revenue (in millions) |
$365-$395 | |
| Demand Response Revenue |
$285-$310 | |
| Software Revenue |
$80-$85 | |
| GAAP Net Loss Per Diluted Share |
($3.85)-($3.50) | |
| Total Adjusted EBITDA1 (in millions) |
($45)-($35) | |
| Demand Response Adjusted EBITDA1 (in millions) |
$40-$45 | |
| Software Adjusted EBITDA1 (in millions) |
($65)-($60) | |
| Corporate Adjusted EBITDA1 (in millions) |
~($20) |
| 1 | Refer to “Statement of Use of Non-GAAP Measures” for non-GAAP definitions and refer to the financial schedules attached to this press release for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures. |
Company to Host Analyst Day and Webcast
The Company’s management team plans to host an Analyst Day from 10:00 a.m. to 2:30 p.m. eastern time today to discuss management’s outlook for the business. The Analyst Day will be webcast live, and archived thereafter, on the Company’s investor relations website, which can be accessed at http://investor.enernoc.com.
About EnerNOC
EnerNOC is a leading provider of energy intelligence software (EIS) and demand response for enterprises, utilities and electric power grid operators. With capabilities to better address budgets and procurement, utility bill management, facility analysis and optimization, sustainability and reporting, project tracking, and demand management, EnerNOC’s EIS helps enterprises control energy costs, mitigate risk, and streamline sustainability and compliance reporting. EnerNOC’s EIS solutions for utilities enable energy suppliers to forge deeper customer relationships, address regulatory mandates, and cost-effectively integrate demand-side resources to improve grid reliability through key capabilities, including customer engagement, demand response, energy efficiency, and wholesale procurement. EnerNOC also offers access to more demand response programs worldwide than any other provider, offering enterprises a valuable payment stream to further enhance bottom-line results. EnerNOC supports customer success with its world-class professional services team and a Network Operations Center (NOC) staffed 24x7x365. For more information, visit www.enernoc.com.
EnerNOC, Inc. Safe Harbor Statement
Statements in this press release regarding management’s future expectations, beliefs, intentions, goals, strategies, plans or prospects, including, without limitation, statements relating to the Company’s future financial performance on both a GAAP and non-GAAP basis and the drive to significant growth in the Company’s software business and the maximization of cash flow generation in the Company’s demand response business, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Forward-looking statements can be identified by terminology such as “anticipate,” “believe,” “could,” “could increase the likelihood,” “estimate,” “expect,” “intend,” “is planned,” “may,” “should,” “will,” “will enable,” “would be expected,” “look forward,” “may provide,” “would” or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those risks, uncertainties and factors referred to under the section “Risk Factors” in EnerNOC’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, as well as other documents that may be filed by EnerNOC from time to time with the Securities and Exchange Commission. As a result of such risks, uncertainties and factors, the Company’s actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. EnerNOC is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
EnerNOC, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
(unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Revenues: |
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| Grid operator |
$ | 20,670 | $ | 18,236 | $ | 259,302 | $ | 368,828 | ||||||||
| Utility |
12,706 | 12,015 | 63,204 | 62,026 | ||||||||||||
| Enterprise |
25,833 | 15,712 | 77,078 | 41,094 | ||||||||||||
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| Total revenues |
59,209 | 45,963 | 399,584 | 471,948 | ||||||||||||
| Cost of revenues |
36,406 | 24,817 | 245,051 | 257,322 | ||||||||||||
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| Gross profit |
22,803 | 21,146 | 154,533 | 214,626 | ||||||||||||
| Operating expenses: |
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| Selling and marketing |
22,612 | 19,963 | 97,175 | 76,960 | ||||||||||||
| General and administrative |
26,817 | 25,389 | 110,267 | 97,729 | ||||||||||||
| Research and development |
7,475 | 5,239 | 29,287 | 20,671 | ||||||||||||
| Gain on sale of service line |
— | (1,054 | ) | — | (4,791 | ) | ||||||||||
| Gain on sale of assets |
— | — | (2,991 | ) | (2,171 | ) | ||||||||||
| Goodwill Impairment |
108,763 | — | 108,763 | — | ||||||||||||
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| Total operating expenses |
165,667 | 49,537 | 342,501 | 188,398 | ||||||||||||
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| (Loss) Income from operations |
(142,864 | ) | (28,391 | ) | (187,968 | ) | 26,228 | |||||||||
| Other expense, net |
(1,678 | ) | (2,423 | ) | (7,444 | ) | (3,699 | ) | ||||||||
| Gain on extinguishment of debt |
9,230 | 9,230 | ||||||||||||||
| Interest expense |
(2,161 | ) | (2,080 | ) | (8,946 | ) | (4,656 | ) | ||||||||
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| (Loss) Income before income tax |
(137,473 | ) | (32,894 | ) | (195,128 | ) | 17,873 | |||||||||
| Benefit from (Provision for) income tax |
8,487 | 6,074 | 10,010 | (5,876 | ) | |||||||||||
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| Net (loss) income |
(128,986 | ) | (26,820 | ) | (185,118 | ) | 11,997 | |||||||||
| Net loss attributable to noncontrolling interest |
(6 | ) | (39 | ) | (43 | ) | (97 | ) | ||||||||
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| Net (loss) income attributable to EnerNOC, Inc. |
($ | 128,980 | ) | ($ | 26,781 | ) | ($ | 185,075 | ) | $ | 12,094 | |||||
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| Net (loss) income per common share attributable to EnerNOC, Inc. |
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| Basic |
($ | 4.51 | ) | ($ | 0.98 | ) | ($ | 6.51 | ) | $ | 0.43 | |||||
| Diluted |
($ | 4.51 | ) | ($ | 0.98 | ) | ($ | 6.51 | ) | $ | 0.42 | |||||
| Weighted average number of common shares used in computing net (loss) income per share attributable to EnerNOC, Inc. |
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| Basic |
28,587,413 | 27,406,087 | 28,432,974 | 27,857,026 | ||||||||||||
| Diluted |
28,587,413 | 27,406,087 | 28,432,974 | 28,790,665 | ||||||||||||
EnerNOC, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except par value and share data)
(unaudited)
| December 31, 2015 | December 31, 2014 | |||||||
| ASSETS | ||||||||
| Current assets: |
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| Cash and cash equivalents |
$ | 138,120 | $ | 254,351 | ||||
| Trade accounts receivable, net |
43,355 | 40,875 | ||||||
| Unbilled revenue |
70,101 | 97,512 | ||||||
| Capitalized incremental direct customer contract costs |
33,917 | 7,633 | ||||||
| Prepaid expenses and other current assets |
8,118 | 19,263 | ||||||
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| Total current assets |
$ | 293,611 | $ | 419,634 | ||||
| Property and equipment, net |
49,653 | 50,458 | ||||||
| Goodwill and intangible assets, net |
94,099 | 146,050 | ||||||
| Deposits and other assets |
6,351 | 4,742 | ||||||
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| Total assets |
$ | 443,714 | $ | 620,884 | ||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: |
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| Accounts payable |
6,002 | $ | 9,250 | |||||
| Accrued capacity payments |
104,278 | 92,332 | ||||||
| Accrued payroll and related expenses |
18,058 | 18,446 | ||||||
| Accrued expenses and other current liabilities |
20,734 | 28,724 | ||||||
| Deferred revenue |
55,631 | 13,738 | ||||||
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| Total current liabilities |
$ | 204,703 | $ | 162,490 | ||||
| Deferred tax liability |
355 | 16,449 | ||||||
| Deferred revenue, long-term |
3,696 | 5,816 | ||||||
| Other liabilities |
8,763 | 8,919 | ||||||
| Convertible senior notes, net |
111,254 | 135,090 | ||||||
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| Total long-term liabilities |
124,068 | 166,274 | ||||||
| Stockholders’ equity: |
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| Common stock, $0.001 par value; 50,000,000 shares authorized, 30,797,289 and 29,833,578 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively |
30 | 30 | ||||||
| Additional paid-in capital |
377,473 | 365,855 | ||||||
| Accumulated other comprehensive loss |
(8,524 | ) | (4,752 | ) | ||||
| Accumulated deficit |
(254,335 | ) | (69,260 | ) | ||||
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| Total EnerNOC, Inc. stockholders’ equity |
114,644 | 291,873 | ||||||
| Non-controlling interest |
299 | 247 | ||||||
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| Total stockholders’ equity |
114,943 | 292,120 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 443,714 | $ | 620,884 | ||||
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EnerNOC, Inc.
Condensed Consolidated Statements of Cash Flow Data
(in thousands)
(unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Cash provided by operating activities |
$ | 21,706 | $ | 30,727 | $ | 3,480 | $ | 60,439 | ||||||||
| Cash used in investing activities |
(5,028 | ) | (20,962 | ) | (93,909 | ) | (74,422 | ) | ||||||||
| Cash (used in) provided by financing activities |
(20,173 | ) | (240 | ) | (22,504 | ) | 120,865 | |||||||||
| Effects of exchange rate changes on cash and cash equivalents |
(325 | ) | (1,389 | ) | (3,298 | ) | (1,720 | ) | ||||||||
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| Net change in cash and cash equivalents |
($ | 3,820 | ) | $ | 8,136 | ($ | 116,231 | ) | $ | 105,162 | ||||||
| Cash and cash equivalents at beginning of period |
141,940 | 246,215 | 254,351 | 149,189 | ||||||||||||
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| Cash and cash equivalents at end of period |
$ | 138,120 | $ | 254,351 | $ | 138,120 | $ | 254,351 | ||||||||
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EnerNOC, Inc.
Statement on Use of Non-GAAP Financial Measures
To supplement the Company’s consolidated financial statements presented on a GAAP basis, the Company discloses certain non-GAAP measures that exclude certain amounts, including non-GAAP net (loss) income attributable to EnerNOC, Inc., non-GAAP net (loss) income per share attributable to EnerNOC, Inc., adjusted EBITDA and free cash flow. These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States.
The GAAP measure most comparable to non-GAAP net (loss) income attributable to EnerNOC, Inc. is GAAP net (loss) income attributable to EnerNOC, Inc.; the GAAP measure most comparable to non-GAAP net (loss) income per share attributable to EnerNOC, Inc. is GAAP net (loss) income per share attributable to EnerNOC, Inc.; the GAAP measure most comparable to adjusted EBITDA is GAAP net (loss) income attributable to EnerNOC, Inc.; and the GAAP measure most comparable to free cash flow is cash flows provided by (used in) operating activities. Reconciliations of each of these non-GAAP financial measures to the corresponding GAAP measures are included below.
Management uses these non-GAAP measures when evaluating the Company’s operating performance and for internal planning and forecasting purposes. Management believes that such measures help indicate underlying trends in the business, are important in comparing current results with prior period results, and are useful to investors and financial analysts in assessing the Company’s operating performance. For example, management considers non-GAAP net (loss) income attributable to EnerNOC, Inc. to be an important indicator of the overall performance because it eliminates the effects of events that are either not part of the Company’s core operations or are non-cash compensation expenses. In addition, management considers adjusted EBITDA to be an important indicator of the Company’s operational strength and performance of the business and a good measure of the Company’s historical operating trend. Moreover, management considers free cash flow to be an indicator of the Company’s operating trend and performance of the business.
The following is an explanation of the non-GAAP measures that management utilizes, including the adjustments that management excluded as part of the non-GAAP measures:
| • | Management defines non-GAAP net (loss) income attributable to EnerNOC, Inc. as net (loss) income attributable to EnerNOC, Inc. before accretion expense related to the debt-discount portion of interest expense associated with the convertible note issuance, stock-based compensation, direct and incremental expenses related to acquisitions, divestitures and restructuring activities, impairment of goodwill and intangible assets, gains on early extinguishment of debt, and amortization expenses related to acquisition-related intangible assets, net of related tax effects. |
| • | Management defines adjusted EBITDA as net (loss) income attributable to EnerNOC, Inc., excluding depreciation, amortization, asset impairments, stock-based compensation, direct and incremental expenses related to acquisitions, divestitures and restructuring activities, impairment of goodwill and intangible assets, gains on early extinguishment of debt, interest expense, income taxes and other income (expense), net. |
| • | Management defines free cash flow as net cash provided by operating activities, less capital expenditures, plus net cash provided by the sale of assets or disposals of components of an entity. Management defines capital expenditures as purchases of property and equipment, which includes capitalization of internal-use software development costs. |
Non-GAAP net (loss) income attributable to EnerNOC, Inc., non-GAAP net (loss) income per share attributable to EnerNOC, Inc., adjusted EBITDA and free cash flow may have limitations as analytical tools. The non-GAAP financial information presented here should be considered in conjunction with, and not as a substitute for or superior to the financial information presented in accordance with GAAP and should not be considered measures of the Company’s liquidity. There are significant limitations associated with the use of non-GAAP financial measures. Further, these measures may differ from the non-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.
EnerNOC, Inc.
Reconciliation Of Non-GAAP Measures To Nearest GAAP Measures
Reconciliation of Non-GAAP Net Loss Attributable to EnerNOC, Inc. And Net Loss Per Share Attributable to EnerNOC, Inc.
(in thousands, except share and per share data)
(Unaudited)
| Three Months Ended December 31, | ||||||||
| 2015 | 2014 | |||||||
| GAAP net loss attributable to EnerNOC, Inc. |
($ | 128,980 | ) | ($ | 26,781 | ) | ||
| Adjustments to reconcile GAAP net loss to Non-GAAP net loss: |
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| Stock-based compensation expense |
3,198 | 3,902 | ||||||
| Amortization of acquired intangible assets |
3,645 | 2,499 | ||||||
| Direct and incremental expenses related to acquisitions, divestitures and restructuring 1 |
310 | 1,994 | ||||||
| Impairment of goodwill and intangible assets |
108,763 | — | ||||||
| Debt discount portion of interest expense related to convertible notes |
1,001 | 1,000 | ||||||
| Gain on early extinguishment of debt |
(9,230 | ) | — | |||||
| Tax impact of items listed above |
(7,900 | ) | 1,062 | |||||
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| Non-GAAP net loss attributable to EnerNOC, Inc. |
($ | 29,193 | ) | ($ | 16,324 | ) | ||
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| Weighted average number of common shares outstanding - diluted (GAAP and Non-GAAP) |
28,587,413 | 27,406,087 | ||||||
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| GAAP net loss per diluted share |
($ | 4.51 | ) | ($ | 0.98 | ) | ||
| Non-GAAP net loss per diluted share |
($ | 1.02 | ) | ($ | 0.60 | ) | ||
| 1 | Includes costs for third party professional services (legal, accounting, valuation) and severance. |
EnerNOC, Inc.
Reconciliation Of Non-GAAP Measures To Nearest GAAP Measures
Reconciliation of Non-GAAP Net (Loss) Income Attributable to EnerNOC, Inc. And Net (Loss) Income Per Share Attributable to EnerNOC, Inc.
(in thousands, except share and per share data)
(Unaudited)
| Twelve Months Ended December 31, | ||||||||
| 2015 | 2014 | |||||||
| GAAP net (loss) income attributable to EnerNOC, Inc. |
($ | 185,075 | ) | $ | 12,094 | |||
| Adjustments to reconcile GAAP net (loss) income to Non-GAAP net (loss) income: |
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| Stock-based compensation expense |
14,585 | 16,063 | ||||||
| Amortization of acquired intangible assets |
15,252 | 9,252 | ||||||
| Direct and incremental expenses related to acquisitions, divestitures and restructuring 1 |
3,222 | 3,550 | ||||||
| Impairment of goodwill and intangible assets |
108,763 | — | ||||||
| Debt discount portion of interest expense related to convertible notes |
4,064 | 1,474 | ||||||
| Gain on early extinguishment of debt |
(9,230 | ) | — | |||||
| Tax impact of items listed above |
(7,900 | ) | (2,486 | ) | ||||
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| Non-GAAP net (loss) income attributable to EnerNOC, Inc. |
($ | 56,319 | ) | $ | 39,947 | |||
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| Weighted average number of common shares outstanding - diluted (GAAP and Non-GAAP) |
28,432,974 | 28,790,665 | ||||||
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| GAAP net (loss) income per diluted share |
($ | 6.51 | ) | $ | 0.42 | |||
| Non-GAAP net (loss) income per diluted share |
($ | 1.98 | ) | $ | 1.39 | |||
| 1 | Includes costs for third party professional services (legal, accounting, valuation) and severance. |
EnerNOC, Inc.
Reconciliation of Adjusted EBITDA
(in thousands)
(unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Net (loss) income attributable to EnerNOC, Inc. |
($ | 128,980 | ) | ($ | 26,781 | ) | ($ | 185,075 | ) | $ | 12,094 | |||||
| Add back: |
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| Depreciation and amortization 1 |
11,028 | 8,250 | 40,287 | 31,417 | ||||||||||||
| Stock-based compensation expense |
3,198 | 3,902 | 14,585 | 16,063 | ||||||||||||
| Direct and incremental expenses related to acquisitions, divestitures and restructuring 2 |
310 | 1,994 | 3,222 | 3,550 | ||||||||||||
| Impairment of goodwill and intangible assets |
108,763 | — | 108,763 | — | ||||||||||||
| Gain on extinguishment of debt |
(9,230 | ) | — | (9,230 | ) | — | ||||||||||
| Other expense, net 3 |
1,678 | 2,423 | 7,444 | 3,699 | ||||||||||||
| Interest expense |
2,161 | 2,080 | 8,946 | 4,656 | ||||||||||||
| (Benefit from) Provision for income tax 4 |
(8,487 | ) | (5,957 | ) | (10,010 | ) | 4,891 | |||||||||
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| Adjusted EBITDA |
($ | 19,559 | ) | ($ | 14,089 | ) | ($ | 21,068 | ) | $ | 76,370 | |||||
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| 1 | Includes impairments to fixed assets and other long term assets recorded during the three and twelve month period ended December 31, 2015. |
| 2 | Includes costs for third party professional services (legal, accounting, valuation) and severance. |
| 3 | Other expense, net primarily relates to foreign currency (gains) losses. |
| 4 | Excludes discrete tax benefit of ($117) and discrete tax provision of $985 recorded during the three and twelve month periods ended December 31, 2014 related to the sale of the USC business component. |
EnerNOC, Inc.
Reconciliation of Free Cash Flow
(in thousands)
(unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Net cash provided by operating activities |
$ | 21,706 | $ | 30,727 | $ | 3,480 | $ | 60,439 | ||||||||
| Add: Net cash provided by the sale of assets or disposals of components of an entity |
946 | 1,600 | 3,937 | 8,046 | ||||||||||||
| Subtract: Purchases of property and equipment |
(5,905 | ) | (6,305 | ) | (23,629 | ) | (25,553 | ) | ||||||||
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| Free cash flow |
$ | 16,747 | $ | 26,022 | ($ | 16,212 | ) | $ | 42,932 | |||||||
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Non-GAAP Financial Guidance
This press release also includes estimates of future adjusted EBITDA. A reconciliation of these amounts to the nearest expected GAAP results is presented below:
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
| March 31, 2016 | December 31, 2016 | |||||||||||||||||||||||||||||||
| Per Diluted Share | Per Diluted Share | |||||||||||||||||||||||||||||||
| In Millions, Except Per Share Amounts | Low | High | Low | High | Low | High | Low | High | ||||||||||||||||||||||||
| Demand Response Adjusted EBITDA 1 |
$ | 40 | $ | 45 | ||||||||||||||||||||||||||||
| Software Adjusted EBITDA 1 |
($ | 65 | ) | ($ | 60 | ) | ||||||||||||||||||||||||||
| Corporate Adjusted EBITDA 1 |
($ | 20 | ) | ($ | 20 | ) | ||||||||||||||||||||||||||
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| Total Adjusted EBITDA |
($ | 34 | ) | ($ | 31 | ) | ($ | 45 | ) | ($ | 35 | ) | ||||||||||||||||||||
| Reconciling Adjustments: |
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| Depreciation and amortization |
$ | 10 | $ | 10 | $ | 38 | $ | 38 | ||||||||||||||||||||||||
| Stock-based compensation |
$ | 4 | $ | 4 | $ | 15 | $ | 15 | ||||||||||||||||||||||||
| Direct and incremental expenses 2 |
$ | 0 | $ | 0 | $ | 1 | $ | 1 | ||||||||||||||||||||||||
| Interest and other expense |
$ | 3 | $ | 3 | $ | 9 | $ | 9 | ||||||||||||||||||||||||
| Provision for income taxes |
$ | 1 | $ | 1 | $ | 3 | $ | 3 | ||||||||||||||||||||||||
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| Projected GAAP Net Loss |
($ | 52 | ) | ($ | 49 | ) | ($ | 1.82 | ) | ($ | 1.72 | ) | ($ | 111 | ) | ($ | 101 | ) | ($ | 3.85 | ) | ($ | 3.50 | ) | ||||||||
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| Weighted Average Number of Common Shares Outstanding-Diluted |
28.5 | 28.5 | 28.8 | 28.8 | ||||||||||||||||||||||||||||
| 1 | Only total adjusted EBITDA guidance provided for three months ended March 31, 2016. |
| 2 | Represents costs associated with reorganizing the business. |