TMCNet:  EnerNOC Reports Results for Second Quarter of 2014

[August 11, 2014]

EnerNOC Reports Results for Second Quarter of 2014

(ENP Newswire Via Acquire Media NewsEdge) ENP Newswire - 11 August 2014 Release date- 08082014 - BOSTON - EnerNOC, Inc. (Nasdaq: ENOC), a leading provider of energy intelligence software, today announced results for the second quarter ended June 30, 2014 and updated management's guidance for 2014.


'We are pleased with our second quarter results which were highlighted by a significant increase in our enterprise customer base and strong growth from our international operations,' said Tim Healy, Chairman and CEO of EnerNOC, Inc. 'Our results continue to reflect our ability to drive disruptive innovation with our technology as we strive to change the way the world uses energy. We continue to be focused on delivering EIS solutions that enable our customers to buy energy more efficiently, use less energy, and maximize business productivity.' Company Issues Third Quarter Guidance and Updates Full Year Guidance The Company today issued guidance for the third quarter of 2014 and updated its previously issued guidance for the full year. The Company's guidance is based on the current indications for its business, which may change at any time.

Recent Operational Highlights The Company introduced new pricing and packaging for its energy intelligence software (EIS). The new structure is designed to simplify and accelerate adoption, and deliver the capabilities to manage energy based on its three primary cost drivers: how it is bought, how much is used, and when it is used.

The new packages align with a traditional SaaS-approach of bundling features and services with three different price points that reflect increasing customer value associated with more feature-rich, high-touch deployments. The Company's EIS includes seven core areas of functionality: utility bill management, supply management, visibility and reporting, facility optimization, project management, demand management, and demand response.

The Company announced the release of its newest software update which includes predictive energy algorithms and a tariff engine, empowering enterprise customers to predict energy costs with a high degree of accuracy. The new capabilities provide a granular view into future energy usage and spend to help customers optimize consumption and reduce peak demand charges, which can comprise 30% or more of total monthly electricity costs.

The Company expanded its growing base of enterprise EIS customers. During the second quarter of 2014, the Company added over 200 new customers with enterprise revenue, including new agreements with Microsoft Corp., Equity Office Properties, Johns Manville, and Accor Hotels Australia.

The Company announced that Tucson Electric Power (TEP) has extended and expanded its contract with the Company for up to 45 megawatts of demand response capacity through 2020. TEP provides power to more than 400,000 customers in the Tucson metropolitan area and is the largest corporation headquartered in southern Arizona.

The Company announced the acquisition of EnTech, a leading provider of global utility bill management (UBM) software. EnTech's software is the global UBM solution for 8 of the Fortune 50. It is currently deployed in over 100 countries and processes over one million utility bills per year, making billing data accessible to key decision makers in finance and operations. The combination of real-time energy data, utility tariffs, and monthly utility bill data on EnerNOC's EIS platform empowers better energy management decisions across global enterprises.

The Company received a 2014 Smart Grid Product of the Year award from Smart-Grid.TMCnet.com. The Company software was recognized as an example of outstanding innovation in smart grid technology. The Company has invested approximately $200 million in its technology platform to date and its software is now deployed at tens of thousands of enterprise sites globally.

About EnerNOC EnerNOC is a leading provider of cloud-based energy intelligence software (EIS) and services to thousands of enterprise customers and utilities globally. EnerNOC's EIS solutions for enterprise customers improve energy productivity by optimizing how they buy, how much they use, and when they use energy. EIS for enterprise includes supply management, utility bill management, facility optimization, visibility and reporting, project management, demand management, and demand response.

EnerNOC's EIS solutions for utilities help maximize the value of demand-side resources, including fully outsourced and utility-managed demand response and energy efficiency programs that drive customer engagement. EnerNOC supports customer success with its world-class professional services team and a Network Operations Center (NOC) staffed 24x7x365.

EnerNOC, Inc. Safe Harbor Statement Statements in this press release regarding management's future expectations, beliefs, intentions, goals, strategies, plans or prospects, including, without limitation, statements relating to the Company's future financial performance on both a GAAP and non-GAAP basis and the future growth and success of the Company's energy intelligence software and related solutions, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws.

Forward-looking statements can be identified by terminology such as 'anticipate,' 'believe,' 'could,' 'could increase the likelihood,' 'estimate,' 'expect,' 'intend,' 'is planned,' 'may,' 'should,' 'will,' 'will enable,' 'would be expected,' 'look forward,' 'may provide,' 'would' or similar terms, variations of such terms or the negative of those terms.

Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those risks, uncertainties and factors referred to under the section 'Risk Factors' in EnerNOC's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, as well as other documents that may be filed by EnerNOC from time to time with the Securities and Exchange Commission.

As a result of such risks, uncertainties and factors, the Company's actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. EnerNOC is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Statement on Use of Non-GAAP Financial Measures To supplement the Company's consolidated financial statements presented on a GAAP basis, the Company discloses certain non-GAAP measures that exclude certain amounts, including non-GAAP net (loss) income attributable to EnerNOC, Inc., non-GAAP net (loss) income per share attributable to EnerNOC, Inc., adjusted EBITDA and free cash flow. These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States.

The GAAP measure most comparable to non-GAAP net (loss) income attributable to EnerNOC, Inc. is GAAP net (loss) income attributable to EnerNOC, Inc.; the GAAP measure most comparable to non-GAAP net (loss) income per share attributable to EnerNOC, Inc. is GAAP net (loss) income per share attributable to EnerNOC, Inc.; the GAAP measure most comparable to adjusted EBITDA is GAAP net (loss) income attributable to EnerNOC, Inc. and the GAAP measure most comparable to free cash flow is cash flows provided by (used in) operating activities.

Reconciliations of each of these non-GAAP financial measures to the corresponding GAAP measures are included below.

Management uses these non-GAAP measures when evaluating the Company's operating performance and for internal planning and forecasting purposes. Management believes that such measures help indicate underlying trends in the business, are important in comparing current results with prior period results, and are useful to investors and financial analysts in assessing the Company's operating performance.

For example, management considers non-GAAP net (loss) income attributable to EnerNOC, Inc. to be an important indicator of the overall performance because it eliminates the effects of events that are either not part of the Company's core operations or are non-cash compensation expenses.

In addition, management considers adjusted EBITDA to be an important indicator of the Company's operational strength and performance of the business and a good measure of the Company's historical operating trend. Moreover, management considers free cash flow to be an indicator of the Company's operating trend and performance of the business.

The following is an explanation of the non-GAAP measures that management utilizes, including the adjustments that management excluded as part of the non-GAAP measures, as well as, reasons for excluding these individual items: Management defines non-GAAP net income (loss) attributable to EnerNOC, Inc. as net income (loss) attributable to EnerNOC, Inc. before expenses related to stock-based compensation and amortization expenses related to acquisition-related intangible assets, net of related tax effects.

Non-GAAP net income (loss) attributable to EnerNOC, Inc. includes gains or losses resulting from either the sale of certain assets or disposals of components of an entity that do not represent a strategic shift that has (or would be expected to have) a major effect on an entity's operations and financial results, net of any related tax effects, or that represents potential ongoing operational trends or are not material.

When evaluating the materiality of a gain (or loss) on the sale of assets, management evaluates such gain (or loss) in the context of the Company's estimated full year financial results, and considers the judgment of a reasonable person relying on the evaluation and whether or not such judgment would have been changed or influenced by the inclusion or exclusion of the gain (or loss).

Management defines adjusted EBITDA as net income (loss) attributable to EnerNOC, Inc., excluding depreciation, amortization, stock-based compensation, direct and incremental expenses related to acquisitions or divestitures, interest, income taxes and other income (expense).

Adjusted EBITDA includes gains or losses resulting from either the sale of certain assets or disposals of components of an entity that do not represent a strategic shift that has (or would be expected to have) a major effect on an entity's operations and financial results, net of any related tax effects, or that represent potential ongoing operational trends or are not material.

When evaluating the materiality of a gain (or loss) on the sale of assets, management evaluates such gain (or loss) in the context of the Company's estimated full year financial results, and considers the judgment of a reasonable person relying on the evaluation and whether or not such judgment would have been changed or influenced by the inclusion or exclusion of the gain (or loss).

Adjusted EBITDA eliminates items that are either not part of our core operations or do not require a cash outlay, such as stock-based compensation. Adjusted EBITDA also excludes depreciation and amortization expense, which is based on our estimate of the useful life of tangible and intangible assets. These estimates could vary from actual performance of the asset, are based on historical cost incurred to build out our deployed network and may not be indicative of current or future capital expenditures.

Management defines free cash flow as net cash provided by (used in) operating activities less capital expenditures. Management defines capital expenditures as purchases of property and equipment, which includes capitalization of internal-use software development costs.

Non-GAAP net (loss) income attributable to EnerNOC, Inc., non-GAAP net (loss) income per share attributable to EnerNOC, Inc., adjusted EBITDA and free cash flow may have limitations as analytical tools. The non-GAAP financial information presented here should be considered in conjunction with, and not as a substitute for or superior to the financial information presented in accordance with GAAP and should not be considered measures of the Company's liquidity.

There are significant limitations associated with the use of non-GAAP financial measures. Further, these measures may differ from the non-GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare the Company's performance to that of other companies.

Media Contact: Robin Deliso Tel: (617) 692.2601 Investor Contact: Brian Norris Tel: (617) 532.8104 (c) 2014 Electronic News Publishing -

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