Slide 1: Fourth Quarter 2007 Earnings Conference
Fourth Quarter 2007 Earnings Conference October 24, 2007 Exhibit 99.2
Slide 2: Forward Looking Statements
This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are based upon management’s belief and assumptions made by, and information currently available to, management. Our actual results could differ materially from the resu
Slide 3: Opening Remarks
Opening Remarks Steven Boss, CEO
Slide 4: 2007 highlights
2007 highlights • Financial Highlights Ш Net Income increased to $5.5 million, $0.18 EPS Ш Gross Profit nearly doubled to $57.2 million Ш APX & ACN, net $1.9 million • $6.52 million APX settlement • $3.90 million ACN legal settlement • $0.72 million ACN legal expenses • Continued Strong Customer Gro
Slide 5: Customer adds and drops
quarter & YTD • YTD adds above expectations • Quarterly churn rate of 9% Q4 ‘07 YTD ‘07 customer adds & drops
Slide 6: Customer growth
• 43% increase in customer count over 7/31/06 • 120,000 gross customer adds in FY 2007 quarter-to-quarter comparison customer growth FY 2006 FY 2007
Slide 7: Year-end customer count and 2008 earnings estimate
year-end customer count estimate 2008 annual earnings estimate 7/31/07 7/31/08 Customers: 196,000 215,000 EPS $0.20 - $0.22 $0.12 $0.20 - $0.22 APX/ACN $0.06* EPS $0.18 * Includes $721K of ACN expenses related to ACN arbitration Actual Estimate
Slide 8: Financial Review
Financial Review Bob Hipps, Interim CFO
Slide 9: Q4 net income
Q4 ($ in millions) • APX and ACN Impact — $1.3 • Net Revenue up 106%; Gross Profit up 73% • Operating expenses up 61% net income $1.1 $0.7 Net Income ― $ 0.4
Slide 10: Q4 net revenue
Q4 ($ in millions) net revenue Net Revenue ― $55.6 106% $52.3 $107.9 $46.2 $6.1 $80.7 $25.7 Electricity MWh 243K 57% Gas DTH 2,561K 390% $1.5
Slide 11: Q4 gross profit
Q4 ($ in millions) gross profit Gas $0.4 23% Gross Profit ― $6.3 73% $8.7 $15.0 $7.1 $ 1.2 $12.3 Electricity $5.2 74% $1.6 $1.5
Slide 12: Q4 operating expenses
Q4 ($ in millions) operating expenses Sales & Marketing ― $1.4 76% $3.3 $1.9 $10.3 $6.6 G & A ― $3.7 56%
Slide 13: FY '07 net income (loss)
FY ‘07 ($ in millions) net income (loss) $5.5 YTD Net Income (loss) ― $ 7.7 $(2.2) 11 13
Slide 14: FY '07 net revenue
FY ‘07 ($ in millions) net revenue Net Revenue ― $124.5 50% $247.1 $371.6 $185.4 $ 61.7 $239.1 $126.0 Electricity MWh 290K 16% Gas DTH 9,673K 188% Gas Electricity APX $6.5
Slide 15: FY '07 gross profit
FY ‘07 ($ in millions) gross profit Gross Profit ― $28.4 99% $28.8 $57.2 $ 5.9 $22.9 $40.1 $10.6 Electricity ― $17.2 75% Gas ― $4.7 80% $ 6.5
Slide 16: FY '07 operating expenses
FY ‘07 ($ in millions) operating expenses * YTD Sales & Marketing ― $5.4 103% $10.6 $5.2 YTD G & A ― $10.4 38% $37.3 $26.9
Slide 17: Cash & liquidity
($ in thousands) cash & liquidity 07/31/07 07/31/06 Cash and cash equivalents. $ 6,559 $ 22,941 Account receivables . . . . . . . $ 65,231 $ 30,650 Working capital . . . . . . . . . . $ 38,900 $ 32,253 Current ratio* . . . . . . . . . . . 1.8:1.0 2.0:1.0 Restricted cash . . . . . . . . . . $ 10,457
Slide 18: Closing Comments
Closing Comments
Slide 19: 2007 highlights
• APX and ACN Settlements 19 • 196,000 Year-end Customers • Gross profit doubled to $57.2 million from $28.8 million last year 2007 highlights • Net income increased to $5.5 million from a net loss of $2.2 million in FY 2006
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