• Reported Q1 Revenue of US $5 Million –
• Gross Margin at 33% –
• Company Reiterates 2014 Pro Forma Revenue to be in the US $110 Million Range with Pro Forma Organic Revenue Growth of Approximately 40% –
• Reiterates 2014 Adjusted EBITDA to be in the 12-15% range –

Revolution Lighting Technologies, Inc. (NASDAQ:RVLT) (“Revolution Lighting”), a leading provider of advanced LED lighting solutions, today announced financial results for the first quarter of 2014, ended March 31, 2014.

“While revenue got off to a slow start in the seasonally slow first quarter, we made great progress in growing our sales pipeline to over US $200 million,” said Robert V. LaPenta, Chairman and Chief Executive Officer, Revolution Lighting Technologies. “We continued to position Revolution Lighting for accelerated growth beginning in the second quarter and continuing throughout the year.”

2014 Outlook

Revenue in the second quarter of 2014 will include approximately two months of the recently completed Value Lighting acquisition, and is expected to be in the US $15-17 million range, as compared to US $7.4 million in the second quarter of 2013. The Company reiterates previously stated guidance of 2014 pro forma revenue in the US $110 million range with pro forma organic revenue growing by approximately 40%, compared to pro forma revenue of US $80 million in 2013, and Adjusted EBITDA in the 12-15% range.

Quarter Ended March 31, 2014

For the quarter ended March 31, 2014, total revenue was approximately US $5.0 million, as compared to US $6.3 million in the same period in 2013, a decrease of approximately 21%. The three months ended March 31, 2013 included a US $3.9 million order, which did not reoccur in the first quarter of 2014. Excluding the large order, revenue increased 108% in the first quarter of 2014.

Gross profit for the quarter was approximately US $1.7 million as compared to gross profit of approximately US $2.7 million for the corresponding period in 2013. Gross margin for the quarter was 33% as compared to 42% for the same period in 2013. The decrease in gross margin reflects the impact of lower sales. The Company expects gross margin to increase in the second quarter with gross margin to approximate 35% for the year.

The Company reported an operating loss of US $3.4 million in the first quarter of 2014 as compared to US $2.9 million in the same period of 2013. Operating results for the first quarter of 2014 were negatively impacted by one-time and non-cash charges of US $1.3 million, including expenses related to acquisitions, the amortization of intangible assets resulting from the acquisitions and stock-based compensation, compared to corresponding charges of US $3.2 million in the first quarter of 2013. Negative Adjusted EBITDA (as defined below) for the first quarter of 2014 was approximately US $2.2 million excluding the aforementioned charges compared to positive US $0.4 million in the first quarter of 2013.

The Company reported a net loss for the first quarter of 2014 of approximately US $3.5 million as compared to a net loss of US $5.3 million for the same period in 2013. The net loss for the first quarters of 2014 and 2013 includes the aforementioned one-time and non-cash charges, and in 2013, a charge for the change in fair value of embedded derivative of US $3.2 million and a gain on the bargain purchase of a business of US $0.7 million.

Basic and diluted loss per share attributable to common stockholders were US $0.05 and US $0.11, respectively, for the quarters ended March 31, 2014 and 2013. Weighted basic and diluted shares outstanding were 81.4 million for the quarter ended March 31, 2014 and 71.7 million for the quarter ended March 31, 2013. The per share amounts reflect accrual of dividends on preferred stock and the accretion to redemption value of the Series E and F preferred stock.

Recent Business Highlights

• April 22nd: Announced the launch of Seesmart-brand dimmable LED downlights, which feature a long lifetime of 35,000 hours and provide highly efficient and cost-effective solutions for a variety of lighting applications
• April 17th: Announced the completion of the acquisition of Value Lighting Inc. and certain affiliates, a leading supplier of lighting solutions to the multifamily residential housing sector and new construction marketplace across the U.S.
• April 7th: Announced master distribution agreements to expand the Company’s international footprint and drive penetration in key European and South American markets
• April 3rd: Announced the launch of Seesmart brand Generation 3 (G3) LED T8 tube lamps featuring an innovative all-plastic construction with a thermoplastic heat sink for cool, efficient operation

The Company’s business pipeline is robust with Revolution Lighting being selected for several strategic opportunities and initiating key projects in recent months, including the following:

• Down selected on LED lighting retrofit projects for several large nationwide franchise operators with over 6,000 outlets commencing in 2014 with a potential of over US $100 million
• Designated the preferred provider of LED products for New Jersey and select New York State public school systems with the potential of over US $30 million
• Selected to participate in a large multi-use project in a major U.S. city, including hotels, apartments and retail outlets with a potential of US $20 million
• Nearing completion of product delivery and installation for the retrofit of the Connecticut Convention Center, located in Hartford, Connecticut; this 540,000 square foot building is the largest energy reduction project in the state

Liquidity Position

The Company had a cash balance of US $1.0 million as of March 31, 2014.

During the fourth quarter of 2013, the Company entered in an accounts receivable financing facilities pursuant to which it can borrow up to an aggregate of US $1.5 million, subsequently increased to US $2.0 million. At March 31, 2014, US $0.7 million was outstanding under the facilities.

The Company’s controlling stockholder provided the following financings in 2014:

• During the first quarter of 2014, the Company borrowed US $3.5 million under a financing arrangement with an affiliate of its controlling stockholder.
• In April 2014, the Company borrowed an additional US $11.8 million from affiliates of its controlling stockholder, including US $10.8 million used to fund the cash portion of the consideration for the acquisition of Value Lighting and certain related expenses, and US $1.0 million for general corporate purposes.

At March 31, 2014, the Company had negative working capital of approximately US $1.9 million, excluding cash and cash equivalents of US $1.0 million compared to negative working capital of approximately US $3.5 million, excluding cash and cash equivalents of US $1.8 million at December 31, 2013.

Further information on Revolution Lighting Technologies’ quarterly and annual results can be found in the Company’s Form 10-Q for the quarter ended March 31, 2014 filed with the U.S. Securities and Exchange Commission (SEC) and may be accessed on the SEC’s website.