Juhl Energy, Inc. Announces Financial Results for Fiscal Year 2013 Company's 2013 Revenue Surges 85.7% Over 2012 to $15.1 million
Juhl Energy, Inc. (OTCBB: JUHL, the "Company"), a leading provider of Clean Energy Solutions and the Leader in Community Wind Power, announced financial results for the twelve months ended December 31st, 2013.
"We are extremely proud of our significant revenue growth in 2013," stated Dan Juhl, Chairman and CEO of Juhl Energy, Inc. "Our long-term strategy of providing diversified renewable energy solutions to communities, industrial and agricultural customers across North America is proving successful, as demonstrated by the revenue increases we recorded across a majority of our primary business segments. This diversification is resulting in a growing base business that delivers reliable year-over-year revenue."
"We are very pleased with the ongoing growth of our family of companies," added John Mitola, President of Juhl Energy, Inc. "While we continue to develop wind projects throughout North America, our diversification with wind farm ownership, engineering and field services has resulted in a strong and steady growth curve since 2008, and just as important as our top-line growth, we have been building a very solid base of recurring revenue."
"Our marquee project in 2013 was the wind project we built for the Honda Transmission plant in Russells Point, Ohio - a first of its kind wind system serving a major industrial customer," continued Mitola. "Yet again, we were able to build a multi-million dollar project on time and under budget, in the middle of winter, and within a matter of months. This type of outcome represents the capabilities and expertise of the deep team we have built at Juhl."
"One of the most important steps we took in 2013 was our continued 'democratization' of capital in the renewable asset class," added Mitola. "This effort started long ago with Dan Juhl's creation of the 'Community Wind' financing model, and our expansion of the Juhl Renewable Assets' preferred stock instrument has taken it to a whole new level. In the latter half of 2013, we completed what we believe is the first-of-a-kind raise of our investment pool for our Juhl Renewable Assets, Inc. subsidiary. This raise was extremely well received, and what we found is strong evidence that individual investors want to make renewable investments alongside a proven player like Juhl. We remain committed to democratizing the renewable energy asset class and allowing individual investors to participate in an attractive market that has for too long been controlled by just a handful of institutions. We are currently in the process of expanding this investment pool to enable us to acquire two new projects in the Midwest."
Results for the Year Ended December 31, 2013
- Total revenue increased by approximately $6,970,000, or 85.7%, from approximately $8,131,000 for the year ended December 31, 2012, to approximately $15,101,000, for the year ended December 31, 2013. The increase in revenue is primarily attributable to the increased revenues from the effects of the acquisition of Power Engineers Collaborative in 2012 along with the expansion of maintenance services into the cellular tower industry and the revenue associated with the development and construction of the 3.4 MgW wind energy facility in Russells Point, Ohio.
- Juhl's diversification strategy to deliver sustainable revenue growth outside of wind farm development and construction continues to advance:
- Recurring revenue from our Energy & Telecom Services and Power Plant Ownership segments exceeded $11 million in 2013 as a result of adding these operations at various times since late 2011,
- The start-up of our cellular tower maintenance services division in 2013 is expected to grow our revenues in excess of $4 million annually, but we acknowledge that our 2013 net loss significantly impacted our operating results through initial start-up costs and inefficiencies related to launching this new service capability.
- Gross margins declined to approximately 18% of revenue as we have expensed the start-up costs of launching the cellular tower upgrade and maintenance services and the associated productivity inefficiencies with this added capability, together with lower than average year wind conditions in the Upper Midwest which attributed to lower electricity sales and an inventory valuation adjustment.
- Operating expenses, as a percentage of our revenue, are 37% of revenue for the year ended December 31, 2013 as compared to 57% for year ended December 31, 2012, indicating that we have controlled our indirect overhead expenses while simultaneously achieving significant revenue growth.
- Operating loss increased by approximately $1,341,000, from an operating loss of approximately $1,541,000 for the year ended December 31, 2012 to an operating loss of approximately $2,882,000 for the year ended December 31, 2013. The increase in operating loss is primarily attributable to the start-up expenses and challenging startup operating margins in establishing the tower services capability of Juhl Tower Services - a division of our Juhl Energy Services subsidiary--together with unusual charges related to inventory adjustments, non-cash acquisition-related amortization charges and stock issuance costs, offset by the positive impact of development fee and construction income in the fourth quarter. The total of unusual charges included in our operating loss approximated $750,000, and in additional non-cash depreciation charges were approximately $1,275,000.
- Net loss increased by approximately $100,000, from a net loss of approximately $2,946,000 for the year ended December 31, 2012 to a net loss of approximately $3,046,000 for the year ended December 31, 2013. The increase is primarily attributable to the start-up, operating loss incurred in the Juhl Tower Services division as noted above, combined with the inventory adjustment and write-off of issuance fees, offset by a full year of margin associated with our engineering consulting business and the margins obtained from the development and construction of the Honda Transmission wind farm project in Ohio.
- Basic and diluted net loss per share of $0.17 per common share for 2013 compares to the $0.16 net loss per common share for 2012.
A full analysis of results for the period ended December 31, 2013 is available in the Company's Form 10-K, which is available on the Company's website at www.juhlenergy.com or through the Securities and Exchange Commission's Edgar database at www.sec.gov.
ABOUT JUHL ENERGY, INC.
Juhl Energy is an established leader in the renewable energy industry with a focus on competitive, clean energy solutions and community-based wind power development, ownership and management throughout the United States and Canada. Juhl Energy pioneered community-based wind farms, developing the currently accepted financial, operational and legal structure providing local ownership of medium-to-large scale wind farms in rural America. To date, the Company has completed 24 wind farm projects totaling 240 MW and provides operations management and oversight across the portfolio. Juhl Energy services every aspect of wind farm development from full development and ownership, general consultation, construction management and system operations and maintenance. Juhl Energy also provides a broad range of clean energy solutions.
Juhl Energy operates three primary business segments: renewable energy development, renewable power plant ownership, and energy and telecommunications services. Through its Juhl Energy Development Inc. (JEDI) subsidiary, the Company provides medium and large-scale wind, solar, and cogeneration energy development services. With its acquisitions of the Valley View, Winona County and Woodstock Hills wind farms; the Company now owns and operates 21.7 MWs of wind power through its renewable power subsidiary, Juhl Renewable Assets, Inc. (JRAI). Through its third subsidiary, Juhl Energy Services, Inc. (JESI), and its acquisition of Power Engineers Collaborative, Inc., the Company provides a full range of engineering services to the energy industry, building systems markets, and heavy industry. JESI also provides full sales and service to smaller, on-site wind and solar projects through its Juhl Renewable Energy Systems division. JESI leverages the Company's deep experience with wind towers to also provide cell and radio tower services through its Juhl Tower Services division. Juhl Energy is based in Pipestone, Minnesota and has offices in Chicago, Minneapolis, Madison and Milwaukee. Juhl Energy is traded on the OTCQB under the symbol 'JUHL'. Additional information is available at the Company's website at www.juhlenergy.com or by calling (507) 562-8090.
This news release includes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 including statements that reflect Juhl Energy's current expectations about its future results, performance, prospects and opportunities. Juhl Energy has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "hope," or similar expressions. These forward-looking statements are based on information currently available to Juhl Energy and are subject to a number of risks, uncertainties and other factors that could cause Juhl Energy's actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements and specifically those statements referring to any specific projects, prospective acquisitions and wind farm assets mentioned herein. These risks are referenced in Juhl Energy's current 10K or as may be described from time to time in Juhl Energy's subsequent SEC filings; and such factors as incorporated by reference.