"We are pleased to report solid results for our first quarter," stated Dan Juhl, Chairman and CEO of Juhl Wind, Inc. "As we have been reporting to the market, we expected our development revenue to be lower in the first half of 2012 due to the very choppy nature of how our development fee and construction revenue hits our profit and loss statement. We have been able to respond to that by focusing on building our base business with organic growth in recurring revenue as well as the acquisition of additional base operating businesses – such as our recent acquisition of Power Engineers Collaborative."
"As Dan stated, we have been taking very definitive steps to balance out our very profitable, but choppy development and construction business with a base of stable operating revenue and cash flow," added John Mitola, President of Juhl Wind, Inc. "We began to see the initial impact of these additions in the first quarter of 2012, but we expect to see a much larger step-up in base operating business in the second and third quarters of 2012 due to a more complete fold-in of all of the acquisitions we have brought together in the past year. These include our acquisition of the existing Woodstock Hills Wind Farm and our decision to take on ownership of the newly-built Winona County and Valley View Wind farms at the end of 2011. Now, with the addition of Power Engineers, we will begin to realize a significant escalation in the second quarter financial performance as well as a larger, aggregated impact to the third quarter results of 2012."
"We have stayed with a solid plan to continue profitable development of our wind farm projects consistent with the 21 projects we have completed to date," continued Mitola. "And, when developments come together, we see very strong results like those in 2011. It is those kinds of results that left us with nearly $6 million in cash on our balance sheet at the end of the first quarter and put us in the position to acquire PEC and to take additional steps throughout this year to build our base operating business. We expect to continue to acquire additional wind farms and/or complimentary companies like PEC to establish that top line mix of growing and predictable financials with our highly profitable development work as icing on the cake."
Financial Results for the First Quarter Ended March 31, 2012
Total revenue generated in the quarter ended March 31, 2012 was $1,206,000, down from approximately $6,591,000 for the quarter ended March 31, 2011 when Juhl reported historically high revenue growth as a result of development fee revenue earned from three wind farm construction projects that completed financing arrangements during the first quarter of 2011. Revenue for the quarter ended March 31, 2012 did not include any revenue from the Power Engineers Collaborative engineering firm acquired in April 2012.
Total operating loss of approximately $427,000 for the quarter ended March 31, 2012 as compared to $4,779,000 of operating income for the quarter ended March 31, 2011. General, administrative and payroll expenses were kept flat with the comparative period from March 31, 2011.
Net loss of approximately $414,000 as compared to net income of approximately $2,802,000 for the quarter ended March 31, 2011. The decrease in net income from the period ended March 31, 2011 is largely attributable to the decreased revenue sources from development fee revenue noted in the revenue section above, net of tax effects.
Basic and fully diluted loss per share of $0.03 income per common share for the quarter ended March 31, 2012 compares to the $0.13 earnings per common share for the comparative quarter a year ago.
As of March 31, 2011, the Company reported it held approximately $5,700,000 in the form of cash accounts and short term investments, which includes approximately $383,000 in balances that are restricted by a debt covenant. Our liquidity position was not significantly impacted by the reduced revenue streams for the quarter as we closely managed expense levels.
A full analysis of results for the period ended March 31, 2012 is available in the Company’s Form 10-Q, which is available on the Company’s website at www.juhlwind.com or through the Securities and Exchange Commission’s Edgar database.
Juhl Wind is an established leader in the renewable energy industry with a focus on Community Based Wind Power development, ownership and management throughout the United States and Canada. Juhl Wind pioneered Community-Based wind farms, developing the currently accepted financial, operational and legal structure providing local ownership of medium-to-large scale wind farms. To date, the Company has completed 21 wind farm projects and provides operations management and oversight across the portfolio.
Juhl Wind services every aspect of wind farm development from full development and ownership, general consultation, construction management and system operations and maintenance. With its consolidation of the Valley View, Winona County and Woodstock Hills wind farms, the Company has now invested in and operates 21.7 MWs of wind power through its independent power producer ("IPP") subsidiary, Juhl Renewable Assets, Inc. Through its subsidiary, Juhl Renewable Energy Systems, Inc. ("JRES"), the Company also provides full sales and service to smaller, on-site wind and solar projects in addition to our larger Community Wind Farms. Now, with its acquisition of Power Engineers Collaborative, Juhl provides a full range of engineering services to the energy industry, building systems markets and heavy industry. Juhl Wind is based in Pipestone, Minnesota and has offices in Chicago, Minneapolis, Madison and Milwaukee. Juhl is traded on the OTCBB under the symbol JUHL.