Revolution Lighting Technologies, Inc. Reports Earnings Results for Third Quarter and Nine Months Ended September 30, 2017; Revised Earnings Outlook for Fourth Quarter of 2017; Provides Earnings Outlook for the Full Year 2017
October 26, 2017 at 07:32 am
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Revolution Lighting Technologies, Inc. reported earnings results for third quarter and nine months ended September 30, 2017. For the quarter, the company's total revenue was $43.1 million compared to $50.2 million in third quarter of 2016. The decrease in revenue primarily reflects the impact of the recent hurricane activity in Texas and the southern United States impacting multi-family lighting revenue, and the slippage of a number of Energy Source division projects. Adjusted EBITDA was $2.3 million compared to $4.6 million for the comparable period in 2016. Operating loss was $1.6 million as compared to operating income of $2.4 million in the same period in 2016, as a result of lower overall gross profit due to lower revenue and slightly higher operating costs primarily related to invest in additional sales and marketing resources. GAAP net loss for the quarter was $2.5 million compared to net income of $1.6 million for the comparable period in 2016, and reflects the aforementioned. Basic and diluted GAAP loss per share attributable to common stockholders was $0.12 as compared to income per share of $0.08 for the same period in 2016. Excluding the one-time acquisition, work force reductions and stock-based compensation, the non-GAAP net loss per share was $0.03 in 2017 compared to non-GAAP net income of $0.11 for the same period in 2016. Non-GAAP net loss was $0.7 million against income of $2.2 million a year ago.
For the nine months, the company's total revenue was $117.0 million, compared to $120.9 million for the comparable period in 2016. The decrease in revenue primarily reflects, as noted above, the impact of the recent hurricane activity in Texas and the southern United States impacting multi-family lighting revenue, and the slippage of a number of Energy Source division projects from the third quarter to the fourth quarter. Adjusted EBITDA was $5.1 million compared to $8.9 million for the comparable period in 2016. Operating loss was $5.7 million as compared to a loss of $0.2 million in the same period in 2016, reflecting investment in sales and marketing resources, higher intangible asset amortization charges relating to the 2016 TNT acquisition and an increase in stock-based compensation. GAAP net loss was $8.2 million compared to a loss of $2.1 million for the comparable period in 2016. Basic and diluted GAAP loss per share attributable to common stockholders was $0.39 as compared to a loss per share of $0.11 for the same period in 2016. Excluding the one-time acquisition, work force reductions and stock-based compensation, the non-GAAP net loss per share was $0.15 in 2017 compared to income of $0.14 in 2016. Cash used in operating activities was $9.6 million and primarily reflects an investment in inventory and vendor deposits in preparation of the expected sales increase in the fourth quarter of 2017 and reduction in accounts payable. Non-GAAP net loss was $3.2 million against income of $2.5 million a year ago.
The company has revised its fourth quarter revenue guidance to a range of $47 million to $50 million versus prior guidance of $60 million to $65 million. Adjusted EBITDA expects in the range of 7% to 9% and free cash flow in the range of $9 million to $10 million.
The company expects full year 2017 revenue in the range of $165 million to $170 million ($172 million in 2016), Adjusted EBITDA in the 5% to 7% range, and non-GAAP net loss (excluding acquisition related costs and stock-based compensation) in the $0.12 to $0.14 per share range.
Revolution Lighting Technologies, Inc. designs, manufactures, markets and sells commercial grade light-emitting diode (LED) and conventional lighting fixtures. The Company operates in Lighting Products and Solutions (principally LED fixtures and lamps) segment. The Company's products are used for outdoor and indoor applications, LED-based signage, channel-letter and contour lighting products, LED replacement lamps and commercial grade smart grid control systems. It sells its LED products under the RVLT, Seesmart, Lumificient, Value Lighting, Array and CMG brand names. The Company's commercial lamps and fixtures products include the commercial indoor and outdoor lighting products, such as linear tube lighting, multi-family lighting, commercial troffer lighting and street lighting. It caters to municipal and commercial markets, which include industrial, hospitality, institutional, educational, healthcare and signage markets in the United States, Canada and internationally.
Revolution Lighting Technologies, Inc. Reports Earnings Results for Third Quarter and Nine Months Ended September 30, 2017; Revised Earnings Outlook for Fourth Quarter of 2017; Provides Earnings Outlook for the Full Year 2017