Revolution Lighting Technologies Provides Third and Fourth Quarter Updates and Revises Full Year Guidance

Revolution Lighting Technologies on 22nd September provided an update to its projected third and fourth quarter results, and revised its full year guidance. As a result of recent hurricane activity in Texas and the south east impacting our multifamily lighting revenue, and the slippage of a number of our Energy Source division projects from the third quarter to the fourth quarter, our third quarter results will be negatively impacted.

(Image: Revolution Lighting Technologies)

As a result of the above, the company expects third quarter revenue of approximately $42 - 44 million versus our previous guidance of $52 - 55 million. It also expects EBITDA in the 5-6% range.

Revolution Lighting expects revenue in the fourth quarter in the $60 - 65 million range representing a 50% increase over the third quarter and resulting in revenue for the full year in the range of $180 - 185 million verses prior guidance of $195 - 205 million.

It currently forecasts EBITDA in the 8% range with positive cash flow for the year.

“We are disappointed that the recent catastrophic events have negatively impacted our results, and like all of us, we feel and pray for all those who have been affected.

We believe this negative impact is short-term and we expect to begin seeing a recovery in the fourth quarter and into 2018,” expressed Revolution Lighting.

Despite the above, there are several extremely positive events that will create substantial increases in the sales and profits going forward.

This past week, Revolution Lighting Technologies was awarded its first "Energy as a Service" contract with a major governmental entity. This program will begin contributing revenue in the fourth quarter, and if fully executed, will create a $100 million revenue opportunity in lighting fixtures and controls over the next two (2) years.

In addition, it recently was awarded the first U.S. Navy contract and expect to receive a second and larger contract during the fourth quarter.

This week it received an award for the U.S. National Guard, demonstrating that the company’s Navy certified ("BAA/TAA") compliant products will have a large market beyond the U.S. Navy, including other U.S. and international governmental entities.

During the previous quarterly earnings conference call, Revolution Lighting claimed to be successful in receiving an award from a large big box retailer providing LED lighting products for their lighting retrofit program. It is expecting another award during the fourth quarter.

Activity in the lighting space is extremely robust and increasing at a rapid pace, and the company believes its revenue guidance in the fourth quarter is conservative but considering the large increase when compared to its performance in the third quarter, it is reasonable.

More details will be discussed during the third quarter earnings conference call at the end of October.

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