Sidney Hinton, one of the most outspoken CEOs in the Triangle, was in rare form Wednesday as PowerSecure reported its latest financials and looked to the future.
“We’re in great shape on 2015 and we’re working our butts off to make sure that we build a great 2016, then a great 2017 and beyond.,” Hinton declared.
Not only did PowerSecure (Nasdaq: POWR) top Wall Street expectations, the Wake Forest firm is looking to cash in on a big pipeline of deals. (Among those are $13 million in new business for data centers, which PowerSecure reported last month.)
That’s a big turnaround from 2014 in which the company reported a loss of $7 million.
PowerSecure did report a $551,000 profit for the fourth quarter and earnings of 2 cents per share. Analysts polled by Zacks Research expected a break-even quarter. Revenue rose to $81.7 million from $70.5 million.
Buoyed by the results, Hinton turned the conference call with analysts into a pep talk in contrast to some comments made last year as the company, which focuses on a variety of energy solutions, hit some rough spots.
“We have three areas of intense focus. Number one, continue our relentless pursuit of operational excellence in everything we do. Number two, expand our operating margins to drive EPS in 2015 and beyond. And number three, grow our pipeline of opportunities for 2016 and convert it into backlog as we work through the year,” Hinton said, according to a transcript of the call provided by news website Seeking Alpha.
“I would point out there is zero chance if you go back and listen to any call in our history before that we would be talking about a sequential year this early. We’re in great shape on 2015 and we’re working our butts off to make sure that we build a great 2016, then a great 2017 and beyond.”
Later, he pointed out that after a series of recent acquisitions PowerSecure is now focused on “execution, not acquisition.”
“With all the opportunities we already have in front of us in 2015, our near term focus is on execution, not acquisition. Again, our focus near term is on execution, not acquisition. But as our track record indicates we always have an eye for opportunities that will deliver substantial value to PowerSecure just as these other acquisitions have, but our focus is not on acquisitions at this time,” Hinton explained.
“In the 15-year history of PowerSecure, since I was blessed to start at back in September of 2000, we perceive we’ve never been in a better position. We have record revenues, record backlogs and a rich pipeline of opportunities. They are increasing in size and value relative to our historical opportunities. I’ll say it one more time, if you want to track our progress in 2015, you should be looking for strong operational execution, expanding operating margins which drive EPS growth and new business wins, we support our 2016 backlog.”
The full transcript is available at: http://seekingalpha.com/article/2975126-powersecure-international-powr-sidney-hinton-on-q4-2014-results-earnings-call-transcript