World Energy Revenue Up 15%
World Energy Solutions of Worcester increased its quarterly revenue 15 percent to more than $8.7 million, and, although it lost nearly $600,000, expects improving operating margins, the company said today.
Revenue for the energy management services firm was $7.6 million in the third quarter of last year. The company pared its loss before income taxes, from $522,655 in 2012 to $449,743. But after taxes, the net loss amounted to $592,298, worse than the $545,155 from the same quarter in 2012. The company has been reporting losses in recent quarters due to a change in its revenue-recognition policy that defers some revenue to future quarters.
But a 16-percent jump in annualized backlog, to $24 million, bodes well for the company’s long-term prospects. World Energy also more than doubled its free cash flow, from $338,034 in the third quarter of last year to $840,362. For the first nine months of the year, its free cash flow nearly doubled, from $1.02 million in the third quarter of 2012 to $2.01 million in this year’s third quarter.
CEO Phil Adams said he was pleased with the results, especially crediting his sales team. “The recovery that we predicted would begin in (the third quarter) has, in fact, taken place” as the company works through the revenue-recognition change.
Adams said the company foresees double-digit revenue growth and a return to profitability in 2014.
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