- Revenues up by 54 percent in second quarter
- Gross profit climbs by 17 percent
- Zero Cost Program sign-ups drive asset growth
The German pop group Snap! may have been singing for Zenergy Brands, Inc. (OTC: ZNGY) with its 1990 hit ‘I’ve Got the Power’, for the Texas-based company undoubtedly has. Operating in the emerging smart energy, conservation and utility markets, Zenergy provides a suite of conservation-based products and services that enable clients to achieve sustainability goals, reduce carbon emissions and improve their bottom lines. The company’s cutting-edge Zero Cost Program™, which offers energy conservation, smart controls and efficiency-based products and services to residential, commercial, industrial and municipal end-use customers, reduces utility consumption by up to 60 percent. Zenergy’s Q2 financials show that customers are increasingly considering this a winning proposition.
For the three months ended June 30, 2018, Zenergy had revenues of $464,404, an increase of 54 percent over Q1 revenues of $301,809. This revenue growth was due primarily to the company’s retail electricity services and energy conservation and efficiency contracts. Gross revenue also increased, climbing 17 percent to $109,315 over the previous quarter (http://nnw.fm/o3iUE). Zenergy’s trademarked Zero Cost Program™, wherein each customer agreement represents a long-term contracted revenue stream, has been the primary driver of the company’s growth.
Zenergy’s year-to-date revenue has now reached $766,213; it was just $10,126 for the same period last year, while assets as of June 30, 2018, have climbed to $3,959,862, up from a mere $379,763 for the same prior year period. These results indicate rapidly increasing acceptance of Zenergy’s energy solutions, particularly those under the Zero Cost Program.
The Zero Cost Program is a financing mechanism that allows customers to reduce water, natural gas and electricity consumption, with no out-of-pocket cost, through the implementation of proven conservation technologies. A variety of smart control technologies are employed, including building automation, LED lighting solutions, refrigeration optimization, efficient water systems, EC motor controls, demand-side management and load factor correction.
The Zero Cost Program was developed based on an industry standard agreement known as a Managed Energy Services Agreement (MESA). Under the MESA, Zenergy acts as an intermediary between the customer and the utility and develops, procures financing for, and installs and maintains energy efficiency measures and equipment at the client’s facilities. The MESA, a variation of an Energy Services Agreement (ESA) that’s rapidly gaining popularity, is expected to last a minimum of five years, with an average of seven years’ duration. However, unlike an ESA, under a MESA, the energy provider takes on broader energy management of a customer’s facility, including the assumption of responsibility for utility bills.
With an ESA, an energy provider sets a floor for the customer’s energy consumption and lays out projected savings after retrofitting. After the retrofits are installed, actual energy and cost savings are measured. The customer then pays the ESA provider a charge per unit of energy saved that is set below its baseline utility price, resulting in immediate reduced operating expenses. The ESA payment can be structured either as a percentage of the customer’s utility rate or as a fixed dollar amount per kilowatt-hour saved. The ESA provider retains ownership and maintains the equipment throughout the ESA to ensure reliability and performance. New efficiency measures can be added throughout the duration of the contract, at the end of which the customer can elect to purchase the equipment at fair market value, extend the contract or return the equipment.
For more information, visit the company’s website at www.ZenergyBrands.com
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