PENNINGTON, N.J., April 17, 2006 (PRIMEZONE) -- WorldWater & Power Corp. (OTCBB:WWAT), developer and marketer of proprietary high-power solar systems, today reported financial results for the fourth quarter and full year ended December 31, 2005.
Fourth Quarter Highlights
-- Project contract signings accelerated, for production in 2006.
-- Executed ground mounting of system for Idyllwild (CA) Water District
and completed the first phase of a 500kW project for the Atlantic
County (NJ) Utilities Authority.
-- Provided a solar-powered mobile water pumping and purification
unit - the MobileMaxPure(tm) - to residents of Waveland,
Mississippi following Hurricane Katrina. Still operating as the
sole clean water source for much of the town's population.
"2005 was a transformational year for the company," declared Quentin T. Kelly, WorldWater & Power Corp. Chairman. "Demand accelerated in the second half, and we continue to build on this success, adding new customers while fully demonstrating our capabilities to existing clients in the agricultural, commercial, and industrial space, who have come to value our proprietary solar variable frequency technology and patented water pumping systems. Customers know that WorldWater offers these key differentiating features in choosing us over other potential suppliers for their solar and water needs.
"We are executing a plan to achieve our 2006 project installation goals, and we anticipate rising revenues as the year progresses - driven by increasing demand, strong customer relationships, and the operational focus of our new interim CEO, Jim Farrin. We expect to start our largest project, a 1.2 MW avocado tree farm, during the second quarter of 2006, after it receives final California permits and approvals. It is an exciting time at WorldWater, and we look forward to the year ahead."
Financial Results
Revenue for the fourth quarter was $1.2 million, as compared to the $1.6 million reported in the fourth quarter of 2004 due to the timing of certain projects. The company posted an operating loss of $(2.0) million compared to an operating loss of $(1.8) million in the fourth quarter of 2004. Net loss for the fourth quarter was $(2.7) million, or $(0.03) per share, compared to $(2.2) million, or $(0.02) per share, in the prior-year period.
For the full year, WorldWater & Power reported revenue of $2.0 million versus $5.8 million in 2004, reflecting the timing of several projects pushed into 2006. The company's operating loss declined to $(5.5) million in 2005 from a loss of $(6.1) million in 2004. Including the impact of beneficial conversion interest expense of $3.0 million, a non-cash charge, WorldWater & Power reported a net loss for 2005 of $(10.2) million, or $(0.11) per share, versus $(8.1) million, or $(0.12) per share, last year.
About WorldWater & Power Corp:
WorldWater & Power Corporation is a full-service, international solar electric engineering and water management company with unique, high-powered and patented solar technology that provides solutions to a broad spectrum of the world's electricity and water supply problems. For more information about WorldWater & Power Corp., visit the website at www.worldwater.com.
Forward Looking Statement:
Except for historical information contained herein, this document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. Further, the Company operates in industries where securities values may be volatile and may be influenced by regulatory and other factors beyond the Company's control. Other important factors that the Company believes might cause such differences are discussed in the risk factors detailed in the Company's 10-KSB and its quarterly reports on Form 10-QSB both as filed with the Securities and Exchange Commission, which include the Company's cash flow difficulties, dependence on significant customers, and rapid development of technology, among other risks. In assessing forward-looking statements contained herein, readers are urged to carefully read all cautionary statements contained in the Company's filings with the Securities and Exchange Commission.
WORLDWATER & POWER CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2005 AND 2004
2005 2004
---------- ----------
Assets
Current Assets:
Cash and cash equivalents $ 798,649 $ 38,852
Restricted cash and cash equivalents 12,143 --
Accounts receivable, net of allowance for
doubtful accounts of $53,580 and $22,388,
respectively 354,739 1,590,221
Accounts receivable, related party 32,426 --
Inventory 383,722 --
Costs and estimated earnings/losses in
excess of billings 466,985 --
Prepaid expenses and deposits 109,104 70,062
Advances to employees 17,282 14,033
---------- ----------
Total Current Assets 2,175,050 1,713,168
Equipment and Leasehold Improvements, Net 50,615 58,611
Intangible And Other Assets
Loan origination costs, net 287,688 --
Non-compete agreement, customer list,
trade name, net 109,667 --
Deposits 41,384 19,089
---------- ----------
Total Assets $2,664,404 $1,790,868
========== ==========
Liabilities and Stockholders' Deficiency
Current Liabilities:
Accounts payable and accrued expenses $2,288,607 $2,558,135
Long-term debt and notes payable, current
portion 769,180 1,235,714
Notes payable, related parties 35,748 123,013
Accrued losses on construction in progress 155,090 --
Billings in excess of costs and estimated
earnings/losses 31,802 --
REC guarantee liability, current portion 87,220 63,260
Customer deposits 89,719 57,798
---------- ----------
Total Current Liabilities 3,457,366 4,037,920
Long-term debt and notes payable 2,759,446 1,605,526
Long-term debt, related parties -- 90,706
REC guarantee liability, net of current
portion 329,351 330,357
---------- ----------
Total Liabilities 6,546,163 6,064,509
---------- ----------
Commitments and contingencies -- --
Stockholders' Deficiency:
Preferred Stock 7% Convertible $.01 par
value authorized 10,000,000; issued and
outstanding: Series B 611,111 shares
liquidation preference $550,000 as of
December 31, 2005 and 2004 6,111 6,111
Common Stock, $.001 par value; authorized
200,000,000; 108,786,940 issued and
outstanding at December 31, 2005 and
79,834,341 issued and outstanding at
December 31, 2004 108,787 79,834
Additional paid-in capital 33,893,104 23,401,472
Deferred compensation (45,000) (75,000)
Accumulated other comprehensive (loss) (845) (56,080)
Accumulated deficit (37,843,916) (27,629,978)
---------- ----------
Total Stockholders' Deficiency (3,881,759) (4,273,641)
---------- ----------
Total Liabilities and Stockholders'
Deficiency $2,664,404 $1,790,868
========== ==========
WORLDWATER & POWER CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004
2005 2004
----------- -----------
Revenues:
Contract $ 1,918,420 $ 5,614,362
Grant 113,060 222,862
----------- -----------
Total 2,031,480 5,837,224
----------- -----------
Cost of Revenues:
Contract 2,445,441 5,731,841
Grant 71,375 254,468
----------- -----------
Total 2,516,816 5,986,309
----------- -----------
Gross Profit (Loss):
Contract (527,021) (117,479)
Grant 41,685 (31,606)
----------- -----------
Total (485,336) (149,085)
----------- -----------
Operating Expenses:
Marketing, general and administrative
expenses 4,447,767 3,821,978
Debt sourcing fees and commissions 441,956 1,913,071
Research and development expense 142,182 203,224
----------- -----------
Total Expenses 5,031,905 5,938,273
----------- -----------
Loss from Operations (5,517,241) (6,087,358)
----------- -----------
Other (Expense) Income
Beneficial conversion interest (3,072,963) (855,738)
Interest expense, net (1,792,000) (1,322,484)
Other income, net (32,687) 18,380
----------- -----------
Total Other (Expense) Income, Net (4,897,650) (2,159,842)
----------- -----------
Loss before income taxes (benefit)
(10,414,891) (8,247,200)
Benefit from sale of NJ net operating
losses and NJ Research Credits 200,953 219,381
----------- -----------
Net loss (10,213,938) (8,027,819)
Accretion of preferred stock dividends -- (28,875)
----------- -----------
Net Loss Applicable to
Common Shareholders $(10,213,938) $(8,056,694)
=========== ===========
Net loss applicable per Common Share
(basic and diluted): $ (0.11) $ (0.12)
=========== ===========
Weighted Average Common Shares Outstanding
used in Per Share Calculation: 93,767,378 65,360,690
=========== ===========