Energy Focus, Inc. (EFOI)

Energy Focus, Inc. (EFOI)

Energy Focus is an industry-leading innovator of energy-efficient LED lighting technology. As the creator of the first UL-verified flicker-free LED products, Energy Focus’ products provide extensive energy and maintenance savings, as well as safety, health and productivity benefits over conventional lighting.  Our customers serve the commercial, industrial, healthcare, education and military markets.

Energy Focus is headquartered in Solon, Ohio. For more information, visit our website at www.energyfocus.com

Energy Focus Inc. (NASDAQ: EFOI) has needs support for it’s turnaround efforts.

The Solon-based maker of LED lighting products revealed in a press release that it has entered into a $5 million revolving credit facility with Austin Financial Services of Los Angeles. according to the Energy Focus release, Austin provides “alternative funding in the form of fast and flexible lines of credit to small and medium-sized businesses” that are “in a growth or turnaround mode,” 

Borrowing under the credit facility “are limited to a borrowing base requirement based on 85% of eligible receivables, plus available inventory,” to a maximum $500,000 for the inventory portion, Energy Focus said in the release. The credit facility is a three-year agreement, secured by a lien on domestic assets, and it expires on Dec. 31, 2021, unless terminated sooner.

Energy Focus provided more details of the arrangement in this Form 8-K filingwith the U.S. Securities and Exchange Commission. For instance, the credit facility “has a minimum borrowing requirement of $1 million,” according to the filing, and interest on advances under the line “is due monthly at the ‘Prime Rate,’ as published by The Wall Street Journal from time to time, plus a margin of 2%.”

The company on Nov. 7 reported third-quarter sales of $5.2 million, up from $5 million in the third quarter of 2017. Energy Focus lost $1.9 million, or 16 cents per share, for the 2018 third quarter, slightly higher than the loss of $1.8 million, or 15 cents per share, in the like quarter last year.

Cash and cash equivalents were $7.1 million as of Sept. 30, 2018, compared with $8.6 million at the end of the second quarter of 2018, Energy Focus said.

In a announcement associated with the earnings release, Tewksbury said, “Revenue growth remains our top priority to achieve break-even. In Q3, we achieved several important milestones that should lead to increased revenue starting next year. First, we completed cost reductions of our legacy products, enabling us to offer customers our industry-leading quality and performance at competitive prices; second, we introduced a new shipboard retrofit kit and shipped our first units for revenue; and third, sales of new products introduced since the start of our turnaround reached their highest level to date.”

Energy Focus, Inc. (  EFOI ) is reporting for the quarter ending December 31, 2018. The building company’s consensus earnings per share forecast from the 3 analysts that follow the stock is $-0.15. This value represents a 15.38% decrease compared to the same quarter last year. EFOI missed the consensus earnings per share in the 1st calendar quarter of 2018 by -17.65%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for EFOI is -1.85 vs. an industry ratio of 5.40. 

Energy Focus tumbles 50% post Q4 results miss

Energy Focus (EFOI -50.4%) reported Q4 revenue decrease of 34% Y/Y to $3.12M. Segment Sales: Commercial products sales were $1.2M (-60.4% Y/Y), declines were due to unexpected budgetary delays, push outs in retrofit project starts and losses to lower priced competitors; and Military and maritime products sales were $1.9M (+12.4% Y/Y).

Q4 Gross margin fell by 3,370 bps to 0.61%; Loss from operations expanded to $2.97M, compared to $1.88M a year ago; and Adj. EBITDA loss expanded to $2.48M, compared to $1.26M last year.

Net cash used in operating activities for the quarter were $2.95M, compared to $1.19M a year ago.

Company has Cash and cash equivalents of $6.34M, as of December 31, 2018.

Energy Focus announced that, following a process to evaluate its strategic options, it has completed a strategic financing, which includes changes to its Board of Directors.

The strategic financing provided company with about $1.7M in exchange for subordinated convertible promissory notes. In connection with the financing, the Board of Directors appointed James Tu and Robert Farkas to join the Board, effective following the filing of Annual Report on Form 10-K.

Mr. Tu will also return to the position of Chairman, CEO and President and serve as its interim CFO effective April 2, 2019.

The Company’s initial actions included the elimination of 12 positions, restructuring of the sales organization and incentive plan, flattening of the senior management team, additional operational streamlining, management compensation reductions, and outsourcing of certain functions including warehousing and marketing.

Previously: Energy Focus misses by $0.10, misses on revenue (April 1)

Energy Focus gap down April 2nd 2019

Over the past twelve months, Energy Focus, Inc. (NASDAQ:EFOI)’s stock was -17.57%.  Over the last week of the month, it was -58.54%, -17.57% over the last quarter, and  -75.12% for the past six months.

Over the past 50 days, Energy Focus, Inc. stock’s -64.83% off of the high and -28.17% removed from the low.  Their 52-Week High and Low are noted here.  -82.41% (High), 3.66%, (Low).