SAN LEANDRO, Calif., April 26, 2012 -- Energy Recovery Inc (NASDAQ: ERII), a leader in the design and development of energy recovery devices for desalination and other industrial processes, today announced that it has acquired over one million shares of its common stock on the open market as part of the stock repurchase program authorized by the board of directors and announced in August of 2011. Specifically, as of April 25, 2012, the Company has acquired 1,027,327 shares at a weighted average price of $2.15 over the preceding five weeks.
Tom Rooney, President and Chief Executive Officer, commented that "these share repurchases reflect our strong and continued confidence in the long-term fundamentals of the Company as well as our projections related to improved financial performance in 2012. With the transition year of 2011 now behind us, we have observed a notable increase in mega-project activity around the world, evidenced through several announcements of recent awards. Accordingly, we remain confident in our strategic plan, we are committed to drive value through steadfast execution of this plan, and we are anticipating much-improved results in the second and third quarters of the current year. "
During the most recent earnings conference call, which was conducted on March 8, 2012, the Company conveyed a forecast of 40% revenue growth in 2012 as compared to 2011 with the benefit of an improved cost structure achieved through restructuring and other cost-reduction initiatives. Thereafter, the Company predicted 20% growth in revenue, excluding expected revenue growth specific to energy recovery applications in the oil & gas market. With nearly all business drivers pointing in the right direction-including market opportunity, market share, volume, pricing, costs, and margins-and in response to the recent downward movement in share price, the Company moved decisively, using existing cash to fund share repurchases for the benefit of long-term shareholders. Alex Buehler, Chief Financial Officer, stated that "we are very comfortable with our current cash position and cash flow forecast; therefore, we intend to continue these share repurchases in the future as a statement that speaks to our confidence in the direction of the Company and our perception of value associated with the same."
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include our belief in the long-term fundamentals of the Company, our perception of 2011 as a transition year, our anticipation of improved results in 2012, an increase in mega-project activity, our projection of much-improved results in the second and third quarters of the current year, our forecast for 40% revenue growth in 2012 and 20% annual revenue growth thereafter, our expectation of incremental growth through oil & gas applications, our interpretation of certain business drivers and the continuation thereof (including market opportunity, market share, volume, pricing, costs, and margins), future share repurchases, and future uses of cash. Because such forward-looking statements involve risks and uncertainties, the Company's actual results may differ materially from the predictions in those forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, delays in, or cancellation of, the construction of desalination plants; risks that our market diversification and other strategic efforts will not yield intended benefits; political unrest; the inability of our customers to obtain project financing; delays in governmental approvals; changes in end users' budgets for desalination plants or the timing of their purchasing decisions; our ability to ship new products to meet scheduled delivery times; the global economic crisis; our ability to develop other energy recovery solutions for markets outside of desalination; and other risks detailed in the Company's filings with the Securities and Exchange Commission ("SEC"). All forward-looking statements are made as of today, and the Company assumes no obligation to update such statements. For more details relating to the risks and uncertainties that could cause actual results to differ materially from those anticipated in our forward-looking statements, please refer to the Company's SEC filings.
About Energy Recovery Inc
Energy Recovery Inc (NASDAQ: ERII) designs and develops energy recovery devices and pumps that significantly reduce energy consumption for desalination and other industrial processes. In total, Energy Recovery Inc has more than 12,000 devices installed worldwide, helping to save our clients in excess of one billion dollars in energy costs every year. The Company is headquartered in the San Francisco Bay Area with offices worldwide, including Madrid, Shanghai, and Dubai. For more information about Energy Recovery Inc, please visit www.energyrecovery.com.
Energy Recovery Inc