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Edited Transcript of RVLT earnings conference call or presentation 10-Mar-16 4:00pm GMT

Q4 2015 Revolution Lighting Technologies Inc Earnings Call

CHARLOTTE Apr 6, 2016 (Thomson StreetEvents) -- Edited Transcript of Revolution Lighting Technologies Inc earnings conference call or presentation Thursday, March 10, 2016 at 4:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Robert LaPenta

Revolution Lighting Technologies, Inc. - Chairman, CEO & President

* Jim DePalma

Revolution Lighting Technologies, Inc. - CFO

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Conference Call Participants

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* Craig Irwin

ROTH Capital Partners - Analyst

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Presentation

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Operator [1]

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Good morning and welcome to the Revolution Lighting Technologies fourth-quarter and full-year 2015 earnings conference call. Please note this event is being recorded. All participants will be in listen-only mode. (Operator Instructions).

Before we begin, we would like to advise you that some of the information discussed in this conference will contain forward-looking statements. These statements involve risks, uncertainties and assumptions that are difficult to predict, and such forward-looking statements are not a guarantee of performance. The Company's actual results could differ materially from those contained in such statements. Several factors could cause or contribute to those differences. These factors are described in detail in the risk factors and other sections of our annual report on Form 10-K and quarterly reports on Form 10-Q, which are on file with the SEC. These forward-looking statements speak only as of the date of this call. The Company undertakes no obligation to publicly update any forward-looking statements based on new information or revised expectations.

Today's discussions also include non-GAAP financial measures. We believe these metrics will help investors assess the operating performance of our core business. Please see the press release for a reconciliation of the non-GAAP measures to the most comparable GAAP measure.

After today's presentation, there will be an opportunity to ask questions. (Operator Instructions). I would now like to turn the conference over to Robert LaPenta, Chairman, Chief Executive Officer and President. Please go ahead, sir.

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Robert LaPenta, Revolution Lighting Technologies, Inc. - Chairman, CEO & President [2]

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Thank you, Allison. Good morning, everyone and welcome to our fourth-quarter and annual 2015 conference call. Today, we reported results for both periods. We reported revenue for the quarter of $44.3 million versus $27.5 million last year, an increase of 61%, 23% pro forma organic revenue growth. We had adjusted EBITDA of $4.5 million versus $1 million last year and we had positive cash flow.

For the year, we reported revenue of close to $130 million versus $76.8 million last year, an increase of 69%, 18% pro forma organic and we had adjusted EBITDA of $8.6 million versus negative $1.1 million last year. Jim will take you through the details on the numbers after my opening remarks.

So we are very proud of the impressive financial performance we've had this year. But I've got to say we are even more proud of the progress we've made as a company. In this now rapidly growing LED space, we think the companies that are going to excel are going to have the best management; they are going to have the best products and they are going to have the best market position. I'm proud to say we've made progress in all three areas this year. We made key management changes and improved management in engineering, sourcing, customer support and finance. We continued our leadership in tubes, which by the way represents 70% of the retrofit market, which we believe will exceed $30 billion to $40 billion by 2020.

So we continue to produce and release key new products in that space. You read and we announced that we released a key product, the T5, which is an industry-leading product with the highest lumens per watt, great ambient temperature and we believe that this gives us a leadership position in 12% of the retrofit market.

We formed key partnerships this year with large electrical distributors and contractors, Rexel and Fastenal. These are large distributors that will give our products national recognition. So this is great -- these are two great relationships and we expect them to contribute to our sales growth in 2016.

You read that we formed a partnership with the Cohen Group. The Cohen Group is headed by the former Secretary of Defense and Admiral Loy has a key position there. He's a partner. He's the former Commandant of the Coast Guard and Assistant Secretary of the Department of Homeland Security. We think this is going to give us a leadership position in the Navy, government markets, both in the US and internationally, so we are very excited about that partnership.

You read also that we acquired Energy Source. This is a great company. They are based in Rhode Island. They have a great relationship with the utilities up there, National Grid, and they get us into the utility space in the Northeast, a market -- a major initiative called Mass Save.

So we believe we are ready for the rapidly expanding revolution in LEDs that's about to take place. We are excited about where we are and we are excited about the opportunities we are looking at for next year. For 2016, we announced that we are looking at the first quarter of between $26 million and $28 million versus $20 million last year, an increase of 33% and over 20% organic. We are looking for revenues next year of about $170 million versus $130 million last year, an increase of 30% and over 20% pro forma organic.

EBITDA will be north, we believe, of $17 million versus $8.5 million this year, an increase of over 100%. We also announced today a reverse split, 1 for 10, and some people may ask why we did that. Over the past year, and even more recently, we've been trying to upgrade our investor base. We believe by rationalizing the number of shares, getting our share price up, we will now be able to bring in a higher quality investor that will look to partnership with us as we increase and grow as a company over the next couple of years.

So we are excited about where we are. We are excited about next year and now I will turn the conference over to Jim DePalma to give you details on our numbers.

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Jim DePalma, Revolution Lighting Technologies, Inc. - CFO...


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