Juhl Energy has earned $3.52 million in revenue for the quarter ended Jun 30, 2014, an increase of 19.9 percent year over year.
However, net loss for the company increased by approximately $1.24 million from a net loss of approximately $1.5 million for the six months ended June 30, 2013 to a net loss of approximately $2.7 million for the six months ended June 30, 2014.
The increase in revenue is primarily attributable to growth in engineering consulting services to the utility industry, together with sales of solar products associated with the February 2014PVPower asset acquisition.
The company has observed higher margins stemming from better wind conditions in 2014, together with growth in gross margin dollars in all of its business areas except tower maintenance services.
Tower maintenance services have been significantly impacted by production inefficiencies, winter weather issues and a significant work slowdown earlier this year regarding antenna supply delays by one of the major cellular carriers.
The company also experienced additional losses in its tower maintenance business during the second quarter, and after that it has altered their approach to the type of projects and the scale of their operations to allow for profitability and cash flow of this business unit.
The increase in net loss which is primarily attributable to a $592,000 swing in the fair value adjustments of the interest rate swap arrangement, together with the reasons cited under operating loss above for tower services, stock compensation expense and professional fees.
“Our second quarter results continue to show ongoing year-over-year growth due to the strength of our base businesses and our diversification strategy,” said Dan Juhl, chairman and CEO of Juhl Energy.
“We saw solid operating results from our wind farms and their associated electricity sales. The strong foundation provided by our Juhl Renewable Assets wind farm ownership and operations is precisely why we are so focused on growing our portfolio of wind farms, and is supported by our recent acquisition of two existing projects in Iowa,” added Juhl.
During the second quarter, the company raised additional working capital through the offering and sale of common stock, and provided value propositions that led to Juhl being selected to build a $5.0 million project for the Tooele Army Depot, as well as being named principal rooftop solar system installer for the Solar Chicago program, Juhl said.