Revolution Lighting Technologies (RVLT) Provides Preliminary Revenue Estimates for its Fourth Quarter, Full Year 2018 and Pre...
March 27 2019 - 08:00AM
Revolution Lighting Technologies, Inc. (NASDAQ: RVLT) (“Revolution
Lighting” or the “Company”), a global provider of advanced LED
lighting solutions, today provided its preliminary estimate of
revenue for the fourth quarter and full year 2018 and announced it
will recognize restructuring charges and an impairment of goodwill
for the fourth quarter of 2018.
The Company estimates that its revenue was approximately $29
million for the fiscal quarter ended December 31, 2018 and
approximately $132 million for the full year 2018. This
compares to the guidance provided on October 17, 2018 of $140-$145
million for the full year 2018. The current estimates do not
reflect any adjustments that may be required as a result of the
Company’s ongoing Audit Committee review of the accuracy of the
Company’s previously filed financial statements, which may lead to
a restatement of those financial statements, as previously
disclosed, and may have a material effect on the revenue estimates
above. As a result of the information obtained in connection with
the ongoing Audit Committee review the Audit Committee has
concluded the Company’s consolidated financial statements as of and
for June 30, 2018, as well as for several prior fiscal periods,
should no longer be relied upon. The Company has not completed its
financial statements for the fourth quarter or the fiscal year
2018, and neither those financial statements nor the amounts
estimated above have been audited. The Company intends to issue
final results for the quarter and full year 2018 as soon as
practicable after the Audit Committee review has been
completed.
As of December 31, 2018, the Company had aggregate debt of
approximately $66.5 million. The Company’s aggregate debt as of
March 25, 2019 was approximately $68.2 million including
approximately $46.6 million in aggregate principal and interest
under loans from Robert V. LaPenta, Sr., the Company’s Chairman,
CEO and President, and his affiliate, Aston Capital, LLC.
From December 31, 2018 through March 25, 2019 debt to Mr. LaPenta
and his affiliates grew by $6.1 million and the balance owed under
the Company’s revolving credit facility and other debt was reduced
by $4.4 million.
Restructuring Charges and Goodwill
Impairment
During the fourth quarter of 2018, the Company began a
restructuring of its business operations, in which it is reducing
and consolidating warehouse space, eliminating redundant functions
and inefficient sales channels, and reducing inventory by
eliminating certain product lines. The restructuring is intended to
result in higher margins, lower operating costs and overall
stronger financial performance in the future. The Company’s overall
objective is to significantly improve cash flow and reduce overall
debt. The Company will record primarily non-cash charges for the
fourth quarter of 2018 related to the restructuring, which it
estimates will be approximately $26 million.
In addition, due to the poor performance of the Company’s common
stock price, the Company is required under generally accepted
accounting principles to reduce its book value to align with the
Company’s market capitalization. As a result, the Company
expects to record an adjustment to the carrying value of its
goodwill of approximately $26 million.
Looking Forward
“2018 was an extremely difficult year as we faced a number of
regulatory and business issues that we have previously disclosed
and which we hope to resolve satisfactorily. However, I am
confident that the actions that we are taking will significantly
improve our Company, our operations and our business prospects,”
said Robert V. LaPenta, Chairman, CEO and President of Revolution
Lighting Technologies.
Commencing in 2019 the Company will focus on delivering
comprehensive LED lighting solutions and other energy efficient
related services in new construction and retrofit-type projects.
Through the ongoing restructuring process the Company intends to
aggressively pursue new reliable larger national accounts and to
continue to provide top flight service to its core customer
base.
The Company estimates that, as of the beginning of March, its
backlog approximated $47 million. As a result of the restructuring
efforts, the Company expects to reduce overall annual selling and
administrative costs by approximately $10 million (excluding costs
associated with the restructuring efforts and charges relating to
the Company’s ongoing SEC investigation and Audit Committee review)
by the end of 2019.
The Company’s preliminary revenue estimate for 2019 is in the
range of $125-$130 million. The revenue estimate reflects expected
growth in our multifamily operation as we add new customers from
senior living, student housing and other multifamily housing
related opportunities.
About Revolution Lighting Technologies
Inc.Revolution Lighting Technologies, Inc. is a leader in
the design, manufacture, marketing, and sale of LED lighting
solutions focusing on the industrial, commercial and government
markets in the United States, Canada, and internationally. Through
advanced LED technologies, Revolution Lighting has created an
innovative lighting company that offers a comprehensive advanced
product platform of high-quality interior and exterior LED lamps
and fixtures, including control systems. Revolution Lighting
is uniquely positioned to act as an expert partner, offering full
service lighting solutions through our operating divisions
including Energy Source/TNT, Tri-State LED and Revolution Lighting
Multi-family to transform lighting into a source of superior energy
savings, quality light and well-being. Revolution Lighting
Technologies markets its products and services to large national
customers as well as to energy savings companies and other regional
accounts. Revolution Lighting Technologies trades on the Nasdaq
Capital Market under the ticker RVLT. For more information, please
visit www.rvlti.com and connect with the Company on Twitter,
LinkedIn and Facebook.
Cautionary Statement for Forward-Looking
Statements
Certain of the above statements contained in this press release
are forward-looking statements that involve a number of risks and
uncertainties, including statements relating to the possible impact
of the Audit Committee’s review on the Company’s previously
reported financial statements, the Company’s estimated revenue and
estimated future revenue, the charges relating to the restructuring
and the Company’s goodwill. Such forward-looking statements are
within the meaning of that term in Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Factors that could cause actual results to differ materially from
those in the forward-looking statements include, but are not
limited to, the risk that additional information may arise in the
process of completing the Audit Committee’s review or in a review
or audit of any revised financial statements that would require the
Company to make additional or different adjustments, the time,
effort and expense required to complete any restatement of the
Company’s financial statements, the timing and cost of the
restructuring, the Company’s ability to achieve its expectations as
to future sales and to sell its backlog of orders, the Company’s
ability to successfully implement and manage the restructuring and
the other risks described more fully in the Company’s filings with
the Securities and Exchange Commission. Revolution Lighting
Technologies, Inc. undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events, or otherwise. Readers are
cautioned that any such forward-looking statements are not
guarantees of future performance and involve risks and
uncertainties, and that actual results may differ materially from
those indicated in the forward-looking statements as a result of
various factors. Readers are cautioned not to place undue
reliance on these forward-looking statements.
RVLT Investor Relations Contact:
Amato and Partners, LLC
Investor Relations Counsel
admin@amatoandpartners.com
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