Pipestone, Minn.-based Juhl Energy reported increased quarterly net sales based on the strength of electricity sales from its wind farm portfolio. The company's net loss, however, widened due to operating losses in the company's cell tower maintenance unit.
Total revenue increased by approximately 27% to $3.2 million for the quarter ended March 31, from $2.5 million last year. The company attributes the increase in revenue associated with the completion of the development and construction activities of the 3.4 MW wind energy facility in Russells Point, Ohio, and better-than-average wind conditions which led to with revenue increases from electricity sales of wind farms. For the first time, Juhl recognized revenue from its cell tower maintenance services unit this quarter.
‘We saw strong operating results from our wind farms and their associated electricity sales,’ explains Dan Juhl, chairman/CEO of Juhl Energy. ‘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 why we recently completed terms to purchase two existing projects in Iowa.’
However, Juhl's net loss widened to $1.3 million for the quarter, compared to a $728,000 net loss last year. Juhl says the increased net loss is attributable to the operating loss incurred in the cell tower maintenance business, combined with operating expense increases in stock compensation and professional fees.
‘While we experienced additional losses in our tower maintenance business during the first quarter, the entire sector experienced a significant slowdown due to antenna supply delays for the major cellular carriers,’ explains Juhl.
‘It should be noted that this slowdown allowed us additional time to provide training across our team to prepare for an increase in business we expect to experience the remainder of 2014. As of May 1, we have seen the sector pick up generally and a significant increase in our business specifically.’