11/16/2020 | Press release | Archived content
Teleconference and Webcast to be Held Today at 4:30 P.M. EST
WAUKESHA, WI / ACCESSWIRE / November 16, 2020 / Telkonet, Inc. (OTCQB:TKOI), (the "Company", "Telkonet"), an innovation leader in commercial intelligent automation and energy management solutions for Hospitality, Healthcare, Education, Military and Residential markets announces financial results for the quarter ended September 30, 2020. Management will host a teleconference at 4:30pm ET today to discuss these results with the financial community.
"While the economic environment continued to struggle during the third quarter, Telkonet's performance has demonstrated our ability to successfully identify opportunities, even during a difficult situation," stated Jason Tienor, Telkonet's Chief Executive Officer. "Having shown year-over-year revenue growth during for the third quarter shows promise for what potentially exists in Telkonet's target markets."
Operational Summary:
"As the quarter demonstrates, we've begun to recognized value in niche areas and capitalize on the versatility and flexibility of our platform and solutions," continued Tienor. "With our latest hardware and software releases, Telkonet's team continues to capitalize on innovation, market penetration across key industries and a growing understanding of customer needs."
Financial Summary:
For the three and nine month periods ended September 30, 2020:
Total Revenue: Increased 2% to $2.24 million and decreased 38% to $5.33 million, respectively, when compared to respective prior year periods.
Product Revenue: Product revenue, which principally arises from the sale and installation of our energy management platform, increased 3% to $2.05 million and decreased 40% to $4.76 million, respectively, when compared to respective prior year periods.
Recurring Revenue: Recurring revenue, which principally arises from call center support services, decreased 6% to $0.19 million and 1% to $0.56 million, respectively, when compared to respective prior year periods.
Gross Profit:Gross profit increased 26% to $1.09 million and decreased 29% to $2.33 million, respectively, when compared to respective prior year periods.
Net Loss:Net losses decreased 10% to $0.68 million and increased 8% to $2.28 million, respectively, when compared to respective prior year periods.
Teleconference
Date: Monday, November 16, 2020
Time: 4:30 pm ET (3:30 pm CT, 1:30 pm PT)
Investor Dial-In (Toll Free US & Canada): 877-407-9171
Investor Dial-In (International): 201-493-6757
A replay of the teleconference will be available until November 30, 2020, which can be accessed by dialing (877) 660-6853 if calling within the US & Canada or (201) 612-7415, if calling internationally. Please enter conference ID# 13649459 to access the replay.
NON-GAAP Financial Measures
Telkonet will post to the Company's investor relations web site (www.telkonet.com) any reconciliation of differences between non-GAAP financial information that may be required in connection with issuing the Company's financial results.
The Company, as is common in its industry, uses adjusted EBITDA, a non-GAAP measurement gauge to demonstrate earnings exclusive of interest and non-cash events. The Company manages its business based on its cash flows. The Company, in its daily management of its business affairs and analysis of its monthly, quarterly and annual performance, makes its decisions based on cash flows, not on the amortization of assets obtained through historical activities. The Company, in managing its current and future affairs, cannot affect the amortization of the intangible assets to any material degree, and therefore uses adjusted EBITDA as its primary management guide. Adjusted EBITDA is not, and should not be considered, an alternative to net income (loss), operating income (loss), or any other measure for determining operating performance of liquidity, as determined under accounting principles generally accepted in the United States (GAAP). In assessing the overall health of its business for the years ended December 31, 2019 and 2018, the Company excluded items in the following general category described below:
Adjusted EBITDA and other non-GAAP financial measures should not be considered in isolation from, or as a substitute for, a measure of financial performance prepared in accordance with GAAP. Further, investors are cautioned that there are inherent limitations associated with the use of the non-GAAP financial measure as an analytical tool. In particular, the non-GAAP financial measure is not based on a comprehensive set of accounting rules or principles and many of the adjustments to the GAAP financial measure reflect the exclusion of items that are recurring and will be reflected in the Company's financial results for the foreseeable future. The Company compensates for these limitations by providing specific information in the reconciliation included in this press release regarding the GAAP amounts excluded from the non-GAAP financial measure.
ABOUT TELKONET
Telkonet, Inc. (OTCQB: TKOI) provides innovative intelligent automation platforms at the forefront of the Internet of Things (IoT) space. Helping commercial audiences better manage operational costs, the Company's EcoSmart intelligent automation platform is supported by a full-suite of IoT-connected devices that provide in-depth energy usage information and analysis, allowing building operators to reduce energy expenses. Vertical markets that benefit from EcoSmart products include hospitality, education, military, government, healthcare and multiple dwelling housing. Telkonet was founded in 1977 and is based in Waukesha, WI. For more information, visit www.telkonet.com.
For news updates as they happen, follow @Telkonet on Twitter.
To receive updates on all of Telkonet's developments, sign up for our email alerts HERE.www.telkonet.com
FORWARD LOOKING STATEMENTS
Statements included in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as the Company's ability to access sources of liquidity necessary to continue its operations and continue as a going concern, the Company's potential inability to comply with financial covenants under its credit facility, the outcome of an ongoing patent litigation lawsuit filed against the Company, the impact of the COVID-19 pandemic on the Company's operations and financial results as well as the economy generally, competitive factors, technological development, market demand, and the Company's ability to obtain new contracts and accurately estimate net revenue due to variability in size, scope and duration of projects. Further information on potential factors that could affect the Company's financial results, can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2019, Quarterly Report on Form 10-Q for the nine months ended September 30, 2020, and in its Reports on Forms 8-K filed with the Securities and Exchange Commission ("SEC").
TELKONET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenues, net:
|
||||||||||||||||
Product
|
$ | 2,050,170 | $ | 1,995,788 | $ | 4,762,802 | $ | 7,963,349 | ||||||||
Recurring
|
189,801 | 202,855 | 562,274 | 568,531 | ||||||||||||
Total Net Revenue
|
2,239,971 | 2,198,643 | 5,325,076 | 8,531,880 | ||||||||||||
Cost of Sales:
|
||||||||||||||||
Product
|
1,131,205 | 1,259,151 | 2,933,679 | 5,026,815 | ||||||||||||
Recurring
|
16,468 | 74,437 | 65,037 | 237,551 | ||||||||||||
Total Cost of Sales
|
1,147,673 | 1,333,588 | 2,998,716 | 5,264,366 | ||||||||||||
Gross Profit
|
1,092,298 | 865,055 | 2,326,360 | 3,267,514 | ||||||||||||
Operating Expenses:
|
||||||||||||||||
Research and development
|
231,088 | 448,690 | 892,179 | 1,360,986 | ||||||||||||
Selling, general and administrative
|
1,518,915 | 1,137,084 | 3,646,246 | 3,936,851 | ||||||||||||
Depreciation and amortization
|
14,658 | 16,775 | 44,196 | 50,750 | ||||||||||||
Total Operating Expenses
|
1,764,661 | 1,602,549 | 4,582,621 | 5,348,587 | ||||||||||||
Operating Loss
|
(672,363 | ) | (737,494 | ) | (2,256,261 | ) | (2,081,073 | ) | ||||||||
Other Expenses:
|
||||||||||||||||
Gain on fixed assets
|
- | 150 | - | 150 | ||||||||||||
Interest expense, net
|
(4,392 | ) | (16,525 | ) | (19,976 | ) | (37,125 | ) | ||||||||
Total Other Expense
|
(4,392 | ) | (16,375 | ) | (19,976 | ) | (36,975 | ) | ||||||||
Loss before Provision for Income Taxes
|
(676,755 | ) | (753,869 | ) | (2,276,237 | ) | (2,118,048 | ) | ||||||||
Income Tax Provision
|
- | - | 3,116 | - | ||||||||||||
Net Loss Attributable to Common Stockholders
|
$ | (676,755 | ) | $ | (753,869 | ) | $ | (2,279,353 | ) | $ | (2,118,048 | ) | ||||
Net Loss per Common Share:
|
||||||||||||||||
Basic - net loss attributable to common stockholders
|
$ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.02 | ) | ||||
Diluted - net loss attributable to common stockholders
|
$ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.02 | ) | ||||
Weighted Average Common Shares Outstanding - basic
|
136,311,335 | 135,331,951 | 136,061,140 | 134,937,277 | ||||||||||||
Weighted Average Common Shares Outstanding - diluted
|
136,311,335 | 135,331,951 | 136,061,140 | 134,937,277 |
RECONCILIATION OF NET LOSS
TO ADJUSTED EBITDA
(Unaudited)
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net loss
|
$ | (676,755 | ) | $ | (753,869 | ) | $ | (2,279,353 | ) | $ | (2,118,048 | ) | ||||
Gain on sale of fixed assets
|
- | (150 | ) | - | (150 | ) | ||||||||||
Interest expense, net
|
4,392 | 16,525 | 19,976 | 37,125 | ||||||||||||
Income tax provision
|
- | - | 3,116 | - | ||||||||||||
Depreciation and amortization
|
14,658 | 16,775 | 44,196 | 50,750 | ||||||||||||
EBITDA
|
(657,705 | ) | (720,719 | ) | (2,212,065 | ) | (2,030,323 | ) | ||||||||
Adjustments:
|
||||||||||||||||
Stock-based compensation
|
1,815 | 1,815 | 5,446 | 5,446 | ||||||||||||
Adjusted EBITDA
|
$ | (655,890 | ) | $ | (718,904 | ) | $ | (2,206,619 | ) | $ | (2,024,877 | ) |
Media Contacts:
Telkonet Investor Relations
414.721.7988
[email protected]
SOURCE: Telkonet, Inc.
Released November 16, 2020