0001244937-17-000019.txt : 20170314 0001244937-17-000019.hdr.sgml : 20170314 20170314080103 ACCESSION NUMBER: 0001244937-17-000019 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20170314 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20170314 DATE AS OF CHANGE: 20170314 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENERNOC INC CENTRAL INDEX KEY: 0001244937 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370] IRS NUMBER: 870698303 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-33471 FILM NUMBER: 17686933 BUSINESS ADDRESS: STREET 1: ONE MARINA PARK DRIVE STREET 2: SUITE 400 CITY: BOSTON STATE: MA ZIP: 02210 BUSINESS PHONE: (617) 224-9900 MAIL ADDRESS: STREET 1: ONE MARINA PARK DRIVE STREET 2: SUITE 400 CITY: BOSTON STATE: MA ZIP: 02210 8-K 1 q42016pressrelease.htm 8-K Document



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549
 
FORM 8-K

 CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): March 14, 2017
 
EnerNOC, Inc.
(Exact Name of Registrant as Specified in Charter)
  
 
 
 
 
 
Delaware
 
001-33471
 
87-0698303
(State or Other Jurisdiction
of Incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
 
 
One Marina Park Drive, Suite 400, Boston, Massachusetts
 
02210
(Address of Principal Executive Offices)
 
(Zip Code)
Registrant’s telephone number, including area code: (617) 224-9900
N/A
(Former Name or Former Address, if Changed Since Last Report) 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
 
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 





Item 2.02.
Results of Operations and Financial Condition.
On March 14, 2017, EnerNOC, Inc. (the “Company”) announced its financial results for the quarter and fiscal year ended December 31, 2016. The full text of the press release issued in connection with the announcement of financial results is attached as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Current Report on Form 8-K and in Exhibit 99.1, attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01.
Financial Statements and Exhibits.
 
(d)
Exhibits
The following exhibits relating to Item 2.02 shall be deemed to be furnished, and not filed:
Exhibit
No.
  
Description
 
 
 
 
 
 
 
 
99.1

  
Press Release issued by the Company on
March 14, 2017




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
 
ENERNOC, INC.
 
 
 
Date:
March 14, 2017
By:
 
/s/ William G. Sorenson
 
 
Name:
 
William G. Sorenson
 
 
Title:
 
Chief Financial Officer
(principal financial and principal accounting officer)





EXHIBIT INDEX
Exhibit
No.
  
Description
 
 
 
 
 
 
 
 
99.1

  
Press Release issued by the Company on
March 14, 2017


 EX-99.1 2 ex991q42016.htm EXHIBIT 99.1 Exhibit
Exhibit 99.1
logoa02.jpg
EnerNOC Media Relations:
Sarah McAuley
617.532.8195
Investor Relations:
EnerNOC Reports Fourth Quarter and Full Year 2016 Results

Boston, March 14, 2017 -- EnerNOC, Inc. (Nasdaq: ENOC), a leading provider of demand response solutions and energy intelligence software (EIS), today announced results for the fourth quarter and full year ended December 31, 2016.
“In 2016, the position of demand response as a critical resource was affirmed by the Supreme Court of the United States, international demand response opportunities continued to develop particularly in Asia, and we extended our global market leadership position. On the software side of the business, although we had a number of strategic sales wins and more recently have seen indicators of accelerated market adoption, the near-term opportunity has materialized much more slowly than we expected,” said Tim Healy, Chairman and CEO of EnerNOC.
“As a result, we have taken significant steps to align the level of investment in our software business with the near-term market opportunity. We continue to be focused on making proactive decisions that maximize long-term shareholder value and position each of our businesses for success. To that end, we have concluded that it is in the interest of our customers, employees, and shareholders to explore potential alternatives to our current structure. This may include the sale or separation of one or more of our business units, a sale of the company, or other alternatives,” continued Healy.

Summary Financial Results
 
 
 
 
In Thousands, Except Per Share Amounts
 
 
 
 
 
 
 
 
Q4 2016
 
Q4 2015
 
FY 2016
 
FY 2015
Revenue
 
 
 
 
 
 
 
Demand Response
$
34,805

 
$
32,770

 
$
336,666

 
$
317,792

Software
15,299

 
26,439

 
67,293

 
81,792

Total Revenue
$
50,104

 
$
59,209

 
$
403,959

 
$
399,584

 
 
 
 
 
 
 
 
Net Loss
$
(30,599
)
 
$
(128,980
)
 
$
(50,410
)
 
$
(185,075
)
Net Loss Per Diluted Share
$
(1.04
)
 
$
(4.51
)
 
$
(1.72
)
 
$
(6.51
)
 
 
 
 
 
 
 
 
Cash Provided by (Used in) Operations
$
20,119

 
$
19,639

 
$
(44,769
)
 
$
3,172

Free Cash Flow 1
$
18,103

 
$
13,734

 
$
(60,473
)
 
$
(20,457
)
Adjusted EBITDA1
 
 
 
 
 
 
 
Demand Response adjusted EBITDA
$
(2,353
)
 
$
(4,356
)
 
$
68,427

 
$
52,274

Software adjusted EBITDA
(4,885
)
 
(9,212
)
 
(53,505
)
 
(58,300
)
Corporate unallocated expenses
(4,457
)
 
(5,990
)
 
(18,905
)
 
(18,033
)
Consolidated adjusted EBITDA1, 2
$
(11,695
)
 
$
(19,558
)
 
$
(3,983
)
 
$
(24,059
)
1 Please refer to "Statement on Use of Non-GAAP Financial 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.
2 Consolidated adjusted EBITDA excludes gains on the sale of businesses. Prior period results have been updated to conform to current period presentation.  





Recent Highlights
•
Awarded a 200 megawatt exclusive demand response contract by Taiwan Power Company.
•
Awarded a 60 megawatt demand response contract by Kyushu Electric Power Company as part of the first phase of competitively tendered demand response capacity in Japan.
•
Signed new multi-million-dollar contracts with FirstEnergy and PECO to deliver demand response capacity in Pennsylvania.
•
Grew full year subscription software revenue by 40%, after removing revenues from a divested product line.1 
•
Established a strategic partnership with Brookfield Global Integrated Solutions (BGIS) to deliver an integrated energy management and facility optimization solution to commercial buildings; BGIS is a leader in the real estate management services industry with a property portfolio of approximately 30,000 buildings globally.
•
Entered the Mexican energy procurement market and announced an advisory contract with a leading automotive systems and components supplier to provide procurement services in this recently liberalized market.
•
Generated $20 million of cash from operating activities in the fourth quarter, and ended the year with $98 million of cash.
1 
The Company divested its utility customer engagement software business in August 2016.
Company Issues First Quarter and Full Year 2017 Guidance
The Company today issued guidance for the first quarter and full year 2017. 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, 2017
Total Revenue (in millions)
$41-$47
Demand Response Revenue
$30-$34
Software Revenue
$11-$13
GAAP Net Loss Per Diluted Share
($1.49)-($1.39)
Consolidated adjusted EBITDA1 (in millions)
($23)-($20)
1 Refer to “Statement on 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 the Year Ending December 31, 2017
Total Revenue (in millions)
$310-$340
Demand Response Revenue
$260-$280
Software Revenue
$50-$60
GAAP Net Loss Per Diluted Share
($2.57)-($2.07)
Consolidated adjusted EBITDA1 (in millions)
($20)-($5)
Demand Response adjusted EBITDA1 (in millions)
$20-$30
Software adjusted EBITDA1 (in millions)
($20)-($15)
Corporate unallocated expenses1 (in millions)
~($20)
1 Refer to “Statement on Use of Non-GAAP Financial 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 Live Conference Call and Webcast
The Company’s management team plans to host a live conference call and webcast at 9:00 a.m. eastern time today to discuss financial results and management’s outlook for the business. The conference call may be accessed in the United States by dialing +1.800.230.1059 and using access code "ENOC." The conference call may be accessed outside of the United States by dialing +1.612.234.9959 and using access code "ENOC." The conference call will be simultaneously webcast on the Company’s investor relations website, which can be accessed at http://investor.enernoc.com. A replay of the conference call will be available approximately one hour after the call by dialing +1.800.475.6701 or +1.320.365.3844 and using access code 418131 or by accessing the webcast replay on the Company's investor relations website.
About EnerNOC
EnerNOC is a leading provider of demand response solutions and energy intelligence software (EIS). EnerNOC offers access to more demand response programs worldwide than any other provider, providing enterprises a valuable payment stream to further enhance bottom line results and utilities and grid operators a reliable, cost-effective demand-side resource. Also, 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 SaaS platform helps enterprises control energy costs, mitigate risk, and streamline compliance and sustainability reporting. 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 future growth and success of the Company’s energy intelligence software and demand response solutions, 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
December 31,
 
Year Ended December 31,
 
2016
 
2015
 
2016
 
2015
Revenues:
 
 
 
 
 
 
 
Demand Response
$
34,805

 
$
32,770

 
$
336,666

 
$
317,792

Software
15,299

 
26,439

 
67,293

 
81,792

Total revenues
50,104

 
59,209

 
403,959

 
399,584

Cost of revenues
30,376

 
36,406

 
241,466

 
245,051

Gross profit
19,728

 
22,803

 
162,493

 
154,533

Operating expenses (income):
 
 
 
 
 
 
 
Selling and marketing
16,449

 
22,612

 
86,989

 
97,175

General and administrative
21,491

 
26,817

 
97,179

 
110,267

Research and development
4,240

 
7,475

 
26,269

 
29,287

Gains on sale of businesses
(270
)
 
—

 
(19,875
)
 
(2,991
)
Restructuring and asset impairment charges
892

 
—

 
7,519

 
—

Goodwill impairment
—

 
108,763

 
—

 
108,763

Total operating expenses and income
42,802

 
165,667

 
198,081

 
342,501

Loss from operations
(23,074
)
 
(142,864
)
 
(35,588
)
 
(187,968
)
Other expense, net
(4,994
)
 
(1,678
)
 
(5,607
)
 
(7,444
)
Interest expense
(1,866
)
 
(2,161
)
 
(7,322
)
 
(8,946
)
Gain on early extinguishment of debt
—

 
9,230

 
—

 
9,230

Loss before income tax
(29,934
)
 
(137,473
)
 
(48,517
)
 
(195,128
)
(Provision for) benefit from income tax
(690
)
 
8,487

 
(1,961
)
 
10,010

Net loss
(30,624
)
 
(128,986
)
 
(50,478
)
 
(185,118
)
Net loss attributable to noncontrolling interest
(25
)
 
(6
)
 
(68
)
 
(43
)
Net loss attributable to EnerNOC, Inc.
$
(30,599
)
 
$
(128,980
)
 
$
(50,410
)
 
$
(185,075
)
 
 
 
 
 
 
 
 
Net loss attributable to EnerNOC, Inc. per common share
 
 
 
 
 
 
 
Basic
$
(1.04
)
 
$
(4.51
)
 
$
(1.72
)
 
$
(6.51
)
Diluted
$
(1.04
)
 
$
(4.51
)
 
$
(1.72
)
 
$
(6.51
)
 
 
 
 
 
 
 
 
Weighted average number of common shares used in computing net loss per share attributable to EnerNOC, Inc.
 
 
 
 
 
 
 
Basic
29,491,321

 
28,587,413

 
29,328,872

 
28,432,974

Diluted
29,491,321

 
28,587,413

 
29,328,872

 
28,432,974




EnerNOC, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
 
December 31, 2016
 
December 31, 2015
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
97,993

 
$
138,120

Restricted Cash
1,062

 
464

Trade accounts receivable, net
36,722

 
43,355

Unbilled revenue
45,430

 
70,101

Capitalized incremental direct customer contract costs
2,290

 
33,917

Prepaid expenses and other current assets
10,906

 
7,654

Assets held for sale
3,415

 
—

Total current assets
197,818

 
293,611

 
 
 
 
Property and equipment, net
38,828

 
49,653

Goodwill and intangible assets, net
72,433

 
94,099

Deposits and other assets
3,223

 
6,351

Total assets
$
312,302

 
$
443,714

 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
4,748

 
$
6,002

Accrued capacity payments
63,943

 
104,278

Accrued expenses and other current liabilities
28,318

 
38,792

Deferred revenue
8,193

 
55,631

Liabilities held for sale
1,780

 
—

Total current liabilities
106,982

 
204,703

 
 
 
 
Deferred revenue
2,665

 
3,696

Other liabilities
7,521

 
9,118

Convertible senior notes
115,223

 
111,254

Total long-term liabilities
125,409

 
124,068

 
 
 
 
Total EnerNOC, Inc. stockholders' equity
79,680

 
114,644

Non-controlling interest
231

 
299

Total stockholders' equity
79,911

 
114,943

Total liabilities and stockholders' equity
$
312,302

 
$
443,714






EnerNOC, Inc.
Condensed Consolidated Statements of Cash Flow Data
(in thousands)
(unaudited)
 
 
Three Months Ended
December 31,
 
Year Ended December 31,
Condensed Consolidated Statements of Cash Flow Data
 
2016
 
2015
 
2016
 
2015
Cash provided by (used in) operating activities
 
$
20,119

 
$
19,639

 
$
(44,769
)
 
$
3,172

Cash (used in) provided by investing activities
 
(1,342
)
 
(4,636
)
 
7,767

 
(93,731
)
Cash used in financing activities
 
(509
)
 
(20,348
)
 
(2,511
)
 
(22,723
)
Effects of exchange rate changes on cash and cash equivalents
 
(1,444
)
 
(325
)
 
(16
)
 
(3,298
)
Net change in cash, cash equivalents and restricted cash
 
16,824

 
(5,670
)
 
(39,529
)
 
(116,580
)
Cash, cash equivalents and restricted cash at beginning of period
 
82,231

 
144,254

 
138,584

 
255,164

Cash, cash equivalents and restricted cash at end of period
 
$
99,055

 
$
138,584

 
$
99,055

 
$
138,584




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, including consolidated 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 consolidated adjusted EBITDA is GAAP net income (loss) attributable to EnerNOC, Inc. and the GAAP measure most comparable to free cash flow is cash flow provided by (used in) operating activities. Reconciliations of each of these non-GAAP financial measures to the corresponding GAAP measures are included below.
Use and Economic Substance of Non-GAAP Financial Measures
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 consolidated 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. In addition, management considers free cash flow to be an indicator of the Company’s liquidity trend and performance of the business.
The following is an explanation of the non-GAAP measures that management utilizes, including the adjustments that management makes as part of the non-GAAP measures:
•
Management defines consolidated adjusted EBITDA as net income (loss) attributable to EnerNOC, Inc., excluding depreciation, amortization and asset impairments; stock-based compensation; gains on the sale of businesses; direct and incremental expenses or gains associated with acquisitions, divestitures, reorganizations and escrow settlements; impairment of goodwill and intangible assets; restructuring charges; gains on extinguishment of debt, interest and other income (expense), net; and benefit from (provision for) income tax.
•
Management defines free cash flow as net cash provided by (used in) operating activities less capital expenditures. Management defines capital expenditures as purchases of property and equipment, which includes capitalization of internal-use software development costs.
Material Limitations Associated with the Use of Non-GAAP Financial Measures
Consolidated 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 used by other companies, even where similarly titled, and therefore should not be used to compare the Company’s performance to that of other companies.




EnerNOC, Inc.
Reconciliation of Net Cash Provided By (Used In) Operating Activities to Free Cash Flow
(in thousands)
(unaudited)
 
Three Months Ended
December 31,
 
Year Ended December 31,
 
2016
 
2015
 
2016
 
2015
Net cash provided by (used in) operating activities
$
20,119

 
$
19,639

 
$
(44,769
)
 
$
3,172

Subtract: Purchases of property and equipment and capitalization of internal use software
(2,016
)
 
(5,905
)
 
(15,704
)
 
(23,629
)
Free cash flow
$
18,103

 
$
13,734

 
$
(60,473
)
 
$
(20,457
)

EnerNOC, Inc.
Condensed Schedule of Segment Results
(in thousands)
(unaudited)
 
Three Months Ended
December 31,
 
Year Ended December 31,
Segment Information
 
2016
 
2015
 
2016
 
2015
Revenues:
 
 
 
 
 
 
 
Demand Response
 
 
 
 
 
 
 
Grid operator
$
21,743

 
$
20,727

 
$
274,728

 
$
258,008

Utility
13,062

 
12,043

 
61,938

 
59,784

Total Demand Response Revenues
34,805

 
32,770

 
336,666

 
317,792

 
 
 
 
 
 
 
 
Software
 
 
 
 
 
 
 
Subscription software
5,833

 
5,651

 
24,799

 
19,885

Procurement solutions
8,035

 
10,554

 
35,603

 
36,428

Professional services
1,431

 
10,234

 
6,891

 
25,479

Total Software Revenues
15,299

 
26,439

 
67,293

 
81,792

 
 
 
 
 
 
 
 
Consolidated Revenues
$
50,104

 
$
59,209

 
$
403,959

 
$
399,584

 
 
 
 
 
 
 
 
Segment Adjusted EBITDA 1:
 
 
 
 
 
 
 
Demand Response adjusted EBITDA
$
(2,353
)
 
$
(4,356
)
 
$
68,427

 
$
52,274

Software adjusted EBITDA
$
(4,885
)
 
$
(9,212
)
 
$
(53,505
)
 
$
(58,300
)
1 Please refer to the table, "Reconciliation of Net Loss Attributable to EnerNOC Inc. to Consolidated Adjusted EBITDA," for a reconciliation of segment adjusted EBITDA to net loss attributable to EnerNOC, Inc., which is the most directly comparable GAAP financial measure.



EnerNOC, Inc.
Reconciliation of Net Loss Attributable to EnerNOC, Inc. to Consolidated Adjusted EBITDA
(in thousands)
(unaudited)
 
Three Months Ended
December 31,
 
Year Ended December 31,
 
2016
 
2015
 
2016
 
2015
Net loss attributable to EnerNOC, Inc.
$
(30,599
)
 
$
(128,980
)
 
$
(50,410
)
 
$
(185,075
)
Depreciation, amortization and asset impairments (1)
8,263

 
11,028

 
34,151

 
40,287

Stock-based compensation
2,220

 
3,199

 
12,455

 
14,585

Restructuring charges (2)
892

 
—

 
7,519

 
—

Gains on sale of businesses (3)
(270
)
 
—

 
(19,875
)
 
(2,991
)
Direct and incremental expenses (gains) associated with acquisitions, divestitures, reorganizations and escrow settlements (4)
249

 
310

 
(2,713
)
 
3,222

Impairment of goodwill and intangible assets
—

 
108,763

 
—

 
108,763

Gain on extinguishment of debt
—

 
(9,230
)
 
—

 
(9,230
)
Interest and other expense, net
6,860

 
3,839

 
12,929

 
16,390

Provision for (benefit from) income tax
690

 
(8,487
)
 
1,961

 
(10,010
)
Consolidated adjusted EBITDA
$
(11,695
)
 
$
(19,558
)
 
$
(3,983
)
 
$
(24,059
)
 
 
 
 
 
 
 
 
Demand Response adjusted EBITDA
$
(2,353
)
 
$
(4,356
)
 
$
68,427

 
$
52,274

Software adjusted EBITDA
$
(4,885
)
 
$
(9,212
)
 
$
(53,505
)
 
$
(58,300
)
Corporate unallocated expenses
$
(4,457
)
 
$
(5,990
)
 
$
(18,905
)
 
$
(18,033
)
1 
Includes impairments of production equipment no longer in operation.  
2 
Includes employee related severance and retention costs, asset impairments, and contract termination costs associated with approved restructuring plans.
3 
Consolidated adjusted EBITDA excludes gains on the sale of businesses. Prior period results have been updated to conform to current period presentation.  
4 
Includes expenses that are direct and incremental to business acquisitions and divestitures, including third party professional fees for legal, accounting and valuation services; employee related costs associated with reorganizing the business; and a gain recorded in the year ended December 31, 2016 associated with the recovery of an escrow settlement claim.




Non-GAAP Financial Guidance
This press release also includes estimates of future consolidated adjusted EBITDA. A reconciliation of these amounts to the nearest expected GAAP results is presented below:
 
Three Months Ended
 
Year Ended
 
March 31, 2017
 
December 31, 2017
 
 
 
Per Diluted Share
 
 
 
Per Diluted Share
In Millions, Except Per Share Amounts
Low
High
Low
High
 
Low
High
Low
High
 
 
 
 
 
 
 
 
 
 
Projected GAAP Net Loss

($44
)

($41
)

($1.49
)

($1.39
)
 

($77
)

($62
)

($2.57
)

($2.07
)
 
 
 
 
 
 
 
 
 
 
Reconciling Adjustments:
 
 
 
 
 
 
 
 
 
Depreciation, amortization and asset impairments

$7


$7

 
 
 

$27


$27

 
 
Stock-based compensation

$3


$3

 
 
 

$12


$12

 
 
Impairment of goodwill and intangible assets

$6


$6

 
 
 

$6


$6

 
 
Interest and other expense, net

$2


$2

 
 
 

$8


$8

 
 
Provision for income taxes

$3


$3

 
 
 

$4


$4

 
 
Consolidated adjusted EBITDA

($23
)

($20
)
 
 
 

($20
)

($5
)
 
 
 
 
 
 
 
 
 
 
 
 
Demand Response adjusted EBITDA
 
 
 
 
 

$20


$30

 
 
Software adjusted EBITDA
 
 
 
 
 

($20
)

($15
)
 
 
Corporate unallocated expenses
 
 
 
 
 

($20
)

($20
)
 
 
Consolidated adjusted EBITDA
 
 
 
 
 

($20
)

($5
)
 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Number of Common Shares Outstanding-Diluted
29.6

29.6

 
 
 
30.0

30.0

 
 



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