MILWAUKEE, WI — (Marketwired) — 05/11/16 — EnSync, Inc. (NYSE MKT: ESNC), dba a leading developer of innovative energy management systems for the utility, commercial, industrial and multi-tenant building markets, today announced third quarter fiscal 2016 results, ended March 31, 2016.
Successfully signed an agreement for the sale leaseback of the Company–s first Power Purchase Agreement (PPA) project in Hawaii;
The construction of the remaining PPA projects in Tranche 1 is approximately 85 percent complete, with the Company actively pursuing the sale of the remaining projects;
Entered into a strategic alliance with Open Access Technologies International, Inc. (OATI) which is focused on providing connectivity and management capability for a utility to utilize distributed energy resources through OATI–s GridControl and webSmartEnergy command, control and communications platform in conjunction with the EnSync Matrix Energy Management platform managing the distributed energy generating assets;
In addition to the newly signed agreement with OATI, progress continues to be made on the existing system installation at the facility in Bloomington, MN, with the Phase I installation expected to be completed in the current quarter and the Phase II expansion being scheduled for late this summer;
EnSync–s Cayman Islands installation is essentially complete and awaiting permit closeout, which is expected to occur this quarter, and is already yielding excellent marketing results as a reference project in the region;
Commencing the compilation of PPA projects in Tranche 2, and
Continued focus on operational efficiencies has resulted in a reduction in operating expenses from $4.3 million in the previous quarter to $3.6 million in the current quarter.
Brad Hansen, president and chief executive officer of EnSync Energy Systems, commented, “We are extremely pleased with the ongoing progress with our PPA business model. Project execution has been better than expected and investor development is progressing well. The conclusion of our successful sale-leaseback agreement for our Honolulu Christian Church power purchase agreement (PPA) is an important milestone in the history of EnSync. Policies at the local, federal and global level remain supportive with reductions or eliminations in net metering programs and implementation of time of use rates and demand charges creating an inflection point for accelerated growth in energy storage behind the meter. EnSync–s products and energy management capabilities are uniquely positioned to capitalize on these policy and regulation changes setting the stage for continued company growth, as we further the deployment of our solutions around the world.”
Mr. Hansen continued, “In addition to our PPA project opportunities, we continue to provide our products and solutions through straight system sales. Our previously announced installation at OATI in Minnesota, where we are providing our Agile Hybrid Energy Storage and Matrix Energy Management solutions will soon be complete. Additionally, our Cayman Technology Center project in George Town, Grand Cayman, remains on target, and will be a key reference project as we look to penetrate the Caribbean marketplace. Lastly, our strategic alliance with OATI provides us with a key sales channel to North American utilities and will help us take a leading market position in enabling the owner of distributed energy generation resources to provide –supply response on demand– and ancillary services to the grid operator or utility.”
Jim Schott, chief financial officer of EnSync Energy Systems, commented, “We made significant strides in our commitment to reduce our operating expenses during the quarter. Our objective to reduce operating expenses (excluding depreciation), to below $3.8 million per quarter by the beginning of next year was accomplished two quarters earlier than committed, with operating expenses of $3.6 million during the third quarter. We will continue to look for efficiencies in our cost structure, while maintaining our commitment to grow the business on a go forward basis.”
Mr. Hansen concluded, “We are making progress towards executing against our strategic objectives, but still have plenty of work to do. Our near-term focus is on the successful sale of the remaining Hawaiian PPA projects in our initial tranche, as well as the successful delivery and launch of our solutions in Minnesota and the Cayman Islands. Longer term, we feel confident in our pipeline, including in Hawaii, where we are beginning to enter into agreements for our second tranche of PPA projects, and are working hard to develop additional opportunities throughout the world. We believe we have a tremendous product portfolio with a strong pipeline of project opportunities that will allow EnSync to end calendar year 2017 at a cash flow break-even run rate.”
Total revenue for third quarter which ended March 31, 2016 was $0.1 million compared to $0.4 million in the second quarter of fiscal 2016, and $0.6 million for the three months that ended March 31, 2015. Total costs and expenses, excluding depreciation and amortization, were $3.9 million in the third quarter of fiscal 2016, compared to $4.7 million during the second quarter of fiscal 2016, and $3.8 million in the year ago third quarter. Net loss attributable to common shareholders was $(4.0) million, or $(0.08) per basic and diluted share, for the third quarter of fiscal 2016, compared to $(4.5) million, or $(0.10) per basic and diluted share, in the second quarter of fiscal 2016, and $(3.5) million, or $(0.09) per basic and diluted share, in the year ago third quarter.
Current backlog for components, systems and engineering services is approximately $2.1 million. Additionally, the Company has acquired PPA contracts valued at approximately $13.0 million, including the newly signed agreements for Tranche 2.
The Company ended the third quarter of fiscal 2016 with total assets of $40.5 million, including $21.8 million in cash. As of March 31, 2016, we have cumulative project costs of $7.3 million related to purchase power agreements. We plan to recover these costs before the end of our fiscal year as we sell or finance these projects.
Date: Wednesday, May 11, 2016
Time: 4:30 p.m. ET (3:30 p.m. CT)
Domestic participant dial in #: 888-797-2983
Participant passcode #: 6959431
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. A replay of the call will be available later on the same day via the investor relations section of the company–s web site at until June 12, 2016.
Domestic replay #: 888-203-1112
Replay passcode #: 6959431
EnSync, Inc. (NYSE MKT: ESNC), dba EnSync Energy Systems, is enabling the future of electricity with advanced energy management systems critical to a global economy becoming increasingly reliant upon the expansion of renewable energy. Whether part of the grid power transmission and distribution network, or behind the meter in commercial, industrial and multi-tenant buildings, EnSync technology brings differentiated power control and energy storage solutions to electricity-challenged environments. Our technologies also serve as the system level intelligence in microgrid applications, by seamlessly integrating multiple generation and storage assets to deliver power in remote and community level environments not served by the grid, or areas electing to use the grid secondary to microgrid assets. In 2015, EnSync incorporated power purchase agreements (PPAs) into its portfolio of offerings, enabling electricity savings for customers and providing a stable financial yield for investors. EnSync is a global corporation, with a joint venture in AnHui, China at Meineng Energy, as well as a strategic partnership with Solar Power, Inc. (SPI). For more information, visit: .
Certain statements made in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that are intended to be covered by the “safe harbor” created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “could,” “seek,” “intend,” “plan,” “estimate,” “anticipate” or other comparable terms. Forward-looking statements in this press release may address the following subjects among others: our ability to monetize our PPA assets, statements regarding the sufficiency of our capital resources, expected operating losses, expected revenues, expected expenses and our expectations concerning our business strategy. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and in Management–s Discussion and Analysis of Financial Condition and Results of Operations sections of our most recently filed Annual Report on Form 10-K and our subsequently filed Quarterly Reports on Form 10-Q. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the federal securities laws, we disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
Lytham Partners, LLC
Robert Blum, Joseph Diaz, or Joe Dorame
(602) 889-9700
Michelle Montague
(262) 735-5676
You must be logged in to post a comment Login