WorldWater & Power Announces Fourth Quarter and Full Year Results
2006 Gross Profit of $2.7 Million on $17.3 Million of Revenue
PENNINGTON, N.J., Apr 02, 2007 (BUSINESS WIRE) -- WorldWater & Power Corp. (OTC BB:WWAT.OB), developer and marketer of proprietary high-horsepower solar systems, today announced results for the fourth quarter and full year ended December 31, 2006. Revenue for the fourth quarter was a record $7.1 million, with gross profit of $0.9 million while, for the year, WorldWater reported revenue of $17.3 million, with gross profit of $2.7 million.
"We are extremely pleased to announce, as expected, our best revenue year in the Company's history," said Quentin T. Kelly, Chairman of WorldWater & Power Corp. "We set out to transform WorldWater & Power in 2006 and accomplished just that - with revenue nearly eight times what it was in 2005, as we executed to plan and completed such major installations as the $7.8 million Farm ACW avocado ranch. Not only did we significantly grow the Company and improve gross margins, but we entered into a strategic partnership with EMCORE, raised capital, and added seasoned talent to our executive staff. We have positioned the Company for continued expansion in 2007 and are off to a great start. In total, we installed 2.4 megawatts in 2006 versus 275 kilowatts in 2005, and we expect to at least double our production during 2007 to approximately 5 megawatts of electricity.
"WorldWater is actively bidding on a number of complex, multi-megawatt projects and recently won a $5.7 solar project with Bayshore Recycling, a 700 kilowatt system. We expect to announce additional large projects in the near future, some of which will leverage our expanding relationship with ENTECH. In that regard, we are continuing to finalize our merger discussions and anticipate providing further details in the near future. While this opportunity has always been considered strategically important for WorldWater & Power, we have diligently worked to construct a transaction that brings maximum value to our shareholders."
Mr. Kelly concluded, "I am excited by the growth prospects this year and stand behind the previously-announced goal of $30-$35 million in revenue, with profitability expected as production ramps up in the second half. The first quarter will be seasonally down from the fourth quarter, but the year continues to look strong. We have a record number of outstanding proposals and are taking the appropriate steps to fund our aggressive expansion. WorldWater & Power is clearly positioned for rapid growth this year - with the technology, talent, and partners in place to take advantage of the increasing demand for large, integrated solar power systems that can save energy and pave the way for a cleaner world."
Financial Results
Revenue for the fourth quarter was $7.1 million, compared with $1.2 million reported in the fourth quarter of 2005. Gross profit for the quarter was $0.9 million, versus a loss of $0.1 million in the prior-year period. Net loss for the fourth quarter of 2006 was $5.1 million, or $(0.03) per share, compared to a loss of $2.7 million, or $(0.03) per share, in the fourth quarter of 2005. The 2006 fourth quarter includes the non-cash impact of $3.2 million in beneficial conversions related to the Company's preferred stock dividend.
For fiscal 2006, WorldWater reported revenue of $17.3 million, versus $2.0 million in 2005. Gross profit was $2.7 million, as compared with a loss of $(0.5) million last year. Net loss for the period was $11.4 million, or $(0.08) per share, versus a net loss of $10.2 million, or $(0.11) per share, in 2005. Results include $1.6 million in non-cash warrant expense for 2006 and $3.1 million in 2005; 2006 also includes the non-cash impact of $3.2 million in beneficial conversions related to the Company's preferred stock dividend.
About WorldWater & Power Corp:
WorldWater & Power Corporation is a full-service, international solar electric engineering and water management company with unique, high-powered and patented solar technology that provides solutions to a broad spectrum of the world's electricity and water supply problems. For more information about WorldWater & Power Corp., visit the website at www.worldwater.com.
Forward Looking Statements:
Except for historical information contained herein, this document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. Further, the Company operates in industries where securities values may be volatile and may be influenced by regulatory and other factors beyond the Company's control. Other important factors that the Company believes might cause such differences are discussed in the risk factors detailed in the Company's 10-KSB and its quarterly reports on Form 10-QSB both as filed with the Securities and Exchange Commission, which include the Company's cash flow difficulties, dependence on significant customers, and rapid development of technology, among other risks. In assessing forward-looking statements contained herein, readers are urged to carefully read all cautionary statements contained in the Company's filings with the Securities and Exchange Commission.
WORLDWATER & POWER CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2006 AND 2005
Three Months Twelve Months
------------------------- ---------------------------
12/31/06 12/31/05 12/31/06 12/31/05
------------ ------------ ------------- -------------
Revenues:
Contract $7,039,441 $1,107,923 $17,116,789 $1,918,420
Grant 19,041 $80,160 216,892 113,060
------------ ------------ ------------- -------------
Total 7,058,482 1,188,083 17,333,681 2,031,480
------------ ------------ ------------- -------------
Cost of
Revenues:
Contract 6,178,052 $1,221,737 14,411,406 2,445,441
Grant 20,472 $71,375 202,688 71,375
------------ ------------ ------------- -------------
Total 6,198,524 1,293,112 14,614,094 2,516,816
------------ ------------ ------------- -------------
Gross
Profit
(Loss):
Contract 861,389 $(113,814) 2,705,383 (527,021)
Grant (1,431) $8,785 14,204 41,685
------------ ------------ ------------- -------------
Total 859,958 (105,029) 2,719,587 (485,336)
------------ ------------ ------------- -------------
Operating
Expenses:
Marketing,
general and
administrative
expenses 2,328,669 $1,382,173 7,774,871 4,447,767
Research and
development
expense (15,246) $26,674 202,014 142,182
------------ ------------ ------------- -------------
Total
Expenses 2,313,423 1,408,847 7,976,885 4,589,949
------------ ------------ ------------- -------------
Loss from
Operations (1,453,465) (1,513,876) (5,257,298) (5,075,285)
------------ ------------ ------------- -------------
Other
(Expense)
Income
Debt
sourcing
fees and
commissions (90,750) $(441,956) (284,138) (441,956)
Warrant
exercise
inducement
fees - $1 (1,588,432) (3,072,963)
Interest
expense, net (394,841) $(877,489) (1,233,207) (1,792,000)
Other (Expense)
Income, Net 24,295 $160,626 120,103 168,266
------------ ----------------------------------------
Total
Other
(Expense)
Income,
Net (461,296) (1,158,818) (2,985,674) (5,138,653)
------------ ----------------------------------------
Net Loss (1,914,761) $(2,672,694) (8,242,972) (10,213,938)
Beneficial
Conversion and
Warrants on
Preferred
Stock Dividend (3,184,642) (3,184,642)
------------ ------------ ------------- -------------
Net Loss
Attributable to
Common
Shareholders $(5,099,403) $(2,672,694) $(11,427,614) $(10,213,938)
============ ============ ============= =============
Basic and diluted
net loss per
share $(0.03) $(0.03) $(0.08) $(0.11)
============ ============ ============= =============
Weighted Average
Common Shares
Outstanding used
in Per Share
Calculation 149,330,435 100,201,163 135,921,421 93,767,378
SOURCE: WorldWater & Power Corp.
CONTACT: WorldWater & Power:
Jessie Sullivan, 609-818-0700 X20
JSullivan@worldwater.com
or
Press:
Mike Breslin Productions LLC
Mike Breslin, 201-652-1287
mbrez@aol.com
Copyright Business Wire 2007
-0-
KEYWORD: United States
North America
New Jersey
INDUSTRY KEYWORD: Energy
Alternative Energy
Utilities
SUBJECT CODE: Dividend
Earnings