PowerSecure’s (NASDAQ:POWR) record $70.2 million in second quarter revenue was bolstered by acquisitions – two of which closed this year.
But CEO Sidney Hinton has a message for those who think the Wake Forest company owes its growth and its second quarter performance to acquisitions.
“Some people might say, well they bought that,” Hinton said on a conference call to discuss results, according to a transcript from SeekingAlpha. “No, we did acquire some of it, but we still had 40 percent growth in our own organic businesses.”
PowerSecure provides an array of energy services to utilities, commercial and industrial customers.
The three acquisitions Hinton referenced are the company’s Solar Business, acquired last year; Energy Services Co., business or ESCO, acquired in February; and LED lighting business Solais Lighting, which was acquired in April. Solais provides LED lamps and fixtures for department stores and other commercial applications.
PowerSecure is expecting to generate more business from selling new LED lighting technologies. Hinton said PowerSecure has introduced a “specialized LED lighting solution” to its first major customer. Hinton gave no details on the LED solution, nor would he disclose the customer. But he said that PowerSecure expects to start seeing revenue from that product in the fourth quarter and the company is bullish on the product and the customer segment.
Despite the record second quarter sales, PowerSecure’s to $2.0 million in net income was down 13 percent compared to the same period a year ago. The company’s backlog – new business that has been ordered but has yet to commence – reached a record $245 million in the quarter.
PowerSecure also announced that it will move from the Nasdaq to the New York Stock Exchange on Aug. 28. With the move, PowerSecure will trade on the same exchange as the company’s utility customers, Hinton explained.
