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Orion Energy Systems, Inc. (OESX)
F3Q2013 Results Earnings Call
February 5, 2013 5:00 PM ET
Scott Jensen - Chief Financial Officer
John Scribante - Chief Executive Officer
Previous Statements by OESX
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I would like to introduce the host for today’s conference, Scott Jensen, Chief Financial Officer. Please go ahead.
Thank you, operator. Good afternoon, everyone, and thank you for joining us today for the Orion Energy Systems third quarter fiscal 2013 conference call. Once again, my name is Scott Jensen, Chief Financial Officer. With me on the call today is John Scribante, Chief Executive Officer.
As a reminder, the earnings press release issued today once again includes a section that briefly discusses the supplemental information document that was posted to the company’s website. This supplemental information document provides additional details and analysis on Orion’s financial performance for the third quarter and year-to-date periods ended December 31, 2012. Additionally, John’s presentation today includes materials that are also posted to our website.
I will now read the Safe Harbor statement. Our remarks that follow, including answers to your questions, include statements that we believe to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identified as such because the context of such statements will include words, such as believe, anticipate, expect or words of similar import. Similarly, statements that describe future plans, objectives, or goals are also forward-looking statements.
These forward-looking statements are subject to risks that could cause actual results to be materially different. Those risks include among others matters that we have described in our press release issued this afternoon and in our filings with the Securities and Exchange Commission. Except as described in these filings we disclaim any obligation to update these forward-looking statements, which may not be updated until our next quarterly conference call if at all.
And now, I’d like to turn the call over to John Scribante, Chief Executive Officer of Orion Energy Systems.
Good afternoon, and thank you all for joining our call today. By most measures quarter three was a great quarter for Orion. Our performance was driven by the relentless execution of our strategy, the focuses on delivering financial results and building out our sales organization all the while developing our culture of employees as owners. This strategy is supported by our industry leading products, services and exceptional people.
Our commitment to succeed is demonstrated in our Q3 results and has established an even stronger foundation for continued success into the future. And while we focus day-to-day on delivering strong results, we continue to explore strategic opportunities where we could use our resources for improved shareholder value. We successfully navigated through a management transition with no negative fallout from employees, customers or suppliers. And in fact, our people have risen to a new challenge and welcome the newfound focus and commitment.
Turning to our results, we are very pleased to report both sales and earnings growth. For the third quarter, total revenues grew 6% year-over-year and up 50% from last quarter to $29 million. Our earnings per share returned to positive territory at $0.03 versus break-even last year and a loss of $0.46 in fiscal quarter two. And our cash from operations was off last year, primarily due to our unusually high solar collections and accounts payable aging.
With cash, equity and total assets relatively unchanged, we were able to reduce our debt 9% compared to the prior quarter. And I believe these results directly reflect our renewed focus on our sales organization, operational efficiency and financial discipline.
On our call in November you may recall, I discussed a few key initiatives to deliver sustainable improvement in our financial performance. We’ve made considerable progress, but there’s still more work to do. And I want to briefly touch on our execution to-date as these strategies remain a key ingredient for driving long-term shareholder value.
From an operational standpoint, we’ve realigned our workforce to leverage the talent within Orion to the right areas of the business with the right measures. We shifted the culture among managers and employees towards financial discipline and improving performance and we streamlined the order to ship process, reducing costs and delays.
On the sales expansion front, we recently added several new top sales talents for our direct sales force who have significant experience in the energy management space. We consolidated four different sales forces into one and began collocating our direct sales force within our integration partners in some markets where we overlap, demonstrating the continued value of this channel. And with the renewed focus on direct sales, the month of December was the first in several months where direct sales bookings were higher than our indirect sales.
Regarding new product development, we streamlined the process to be more effective, resulting in a record setting timeframe from concept to market launch with our ISON Class LED line. And in addition, the new InteLite control system version released in October included simplifications and more robust documentation enabling our sales people and integrators to sell and configure more easily leading to a triple-digit increase in unit sales compared to quarter two.