Demand Management, Energy Efficiency, Industrial - March 15, 2017
EnerNOC exploring alternatives, potential sale
After investing heavily in the expansion of its energy efficiency and management software businesses, Boston-based demand response provider EnerNOC said in its 2016 fourth-quarter and full-year earnings report that it may be forced to offload certain business operations or sell the company.
"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," EnerNOC Chairman and CEO Tim Healy said in the March 14 earnings release.
The news follows months of volatility in EnerNOC stock amid other strategic announcements; in September 2016 announced a restructuring of its subscription-based energy information systems business that will result in a 15% reduction in the company's global workforce. That announcement came after the company in June 2016 announced the sale of its industrial utility services business unit to CLEAResult.
While beating analyst expectations for full-year net income and revenue, the reported that it expects revenue between $310 million and $340 million in 2017, compared to revenue of roughly $404 million in 2016. EnerNOC expects losses per diluted share to drop to between $2.07 and $2.57 in 2017, compared to a loss of $1.74 per diluted share in 2016.
The company attributed the anticipated decline to a drop in expected revenue from the company's demand response business for PJM, the mid-Atlantic grid operator that accounts for roughly 70% of EnerNOC’s total revenue, Greentech Media reported March 14.
“We continue to be focused on making proactive decisions that maximize long-term shareholder value and position each of our businesses for success," Healy said. "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."
While not providing an exact timeframe for exploring strategic alternatives, the CEO said on the company's earnings call that the process could come in the next six to nine months, GTM reported.
Read These Related Articles:
Stay Up-To-Date
