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Bob Powell: Thank you Laird.  I am very excited to be joining the Blue Earth team as CEO.  Johnny, the Board, and the team have done an exceptional job positioning Blue Earth for future success.  Having spent over 25 years in the energy industry, I see this as a unique opportunity to build a dominant energy platform that delivers significant shareholder value.  Our immediate task is to create an execution platform that supports this vision.  It is clear to me that our business model in the power generation business should support each element.  We are creating a self-supporting business model. First, as an organization we must build a culture and a foundation for success that delivers results across our business through well-managed execution.  With that execution culture we will continue the work we have started in building our growth engine, the power generation development business.  To ensure that we are delivering high quality projects we plan to enhance the construction and Operations & Maintenance base that we have assembled.  With high quality low risk projects we hope to monetize the low risk cash flows through E²B Growth, Inc., our planned yield vehicle we have previously announced.  The yieldco is expected to provide superior value via low yield cash dividends and larger monetization events as we sell ownership interests in our yieldco to third parties.  While we currently sell some of our projects to third parties, we see prospects for much greater economic value retained by our shareholders through the use of the yieldco vehicle.  We expect the cash flows and competitive cost of capital provided by the yieldco vehicle should support our power generation development business.  Thus, we believe that we are creating a self-supporting business model that will allow us to grow our power generation business while we deliver value to our shareholders.  I look forward to future calls to provide greater detail and updates on our progress.  Again, I am excited about the future at Blue Earth and I want to thank the team for their support as we execute together in the future.  Now I would like to turn over the discussion to Brett Woodard, our CFO, who will provide comments on quarterly results and the effect of BE EMS, as discontinued operations.    

Brett Woodard: Thank you for spending some time with us to review the financial performance of Blue Earth.

Blue Earth, Inc. is reporting sharply increased revenues from continuing operations for the six months ended June 30, 2015.

The Company has sharpened its focus on renewable energy project construction and the sale of power produced from those projects it retains and has sold the bulk of its Energy Management Systems business and renamed the division “Technology”. These divisions focused primarily on HVAC sales and services, which are not readily scalable to the same extent as the retained divisions.  

While this business line contributed substantially to Blue Earth’s top line, it also accounted for nearly $1 million in year-to-date cash losses in 2015 and was expected to produce additional cash losses to Blue Earth through the balance of the year and in the future.

Headcount associated with the discontinued business line amounted to nearly one third of the Company’s total personnel, the majority of whom will be employed by the acquiring company.

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Continuing efforts to better focus the Company on the construction of renewable energy projects and renewable energy production are expected to further drive down cash burn in non-core business lines.

Blue Earth reports the following results for the six months ended June 30, 2015:

Revenues from continuing operations were $7,328,414, an increase of $3,560,062 or 94%, when compared with consolidated revenue of $3,768,352 in the same period in 2014. The six month revenues represent sales from the Company’s operating segments, Technology ($248,270), Power Generation ($1,599) and Construction ($7,078,545).

Power Generation sales represent the first revenues from such segment and are from start-up power sales from the Sumter CHP unit. We expect revenues from the Sumter unit to increase, as the plant comes to optimized full time production of heat, electric power and scrubbed methane gas. Construction sales are derived from installation of alternative/renewable energy systems and installation and maintenance of back-up energy systems. Construction revenues increased due to ongoing construction of major solar projects in the US Midwest. The reported results for the Technology division include only sales of the UPStealth® battery backup management systems.

Total consolidated gross profit for the first six months of 2015 was $697,203 or 10% of revenues, compared to $947,110 or 25% of revenues for the same period of 2014. Technology had a gross profit of $15,679 or 6% compared to gross profit of $1,599 or 100% for Power Generation and $679,926 or 10% for Construction. By comparison, in the first six months of 2014, Technology had a gross profit of $141,312 or 50% compared to $805,798 or 23% for Construction.  The Power Generation division had not started operations in 2014.  The Technology division gross profits decreased due to quality issues from a major supplier which increased warranty replacements, a situation that has now been corrected. Construction division gross profits were lower in 2015 due to the higher relative costs associated with the division’s decision to outsource a higher percentage of construction operations. This decision is expected to result in higher cash profits from a larger book of business despite the reduction in gross profit percentages.

Total consolidated operating expenses for the first six months of 2015 were $12,452,968, compared to $10,819,779 for the same period of 2014 an increase of $1,633,189 or 15%. The increases were largely attributable to expenses incurred in the current restructuring.

Net loss from continuing operations for the first six months of 2015, was $13,471,679 as compared to $10,181,806 for the same period in 2014, an increased loss of $3,289,873. When adjusted for the effects of discontinued operations, the net loss for the first six months of 2015 increased to $14,383,506 compared to $10,398,301 in 2014, an increase of $3,985,205.  Excluding the non-cash expenses of common stock for services, amortization of intangible assets acquired for stock and stock options/warrants issued for services, the loss would have been $7,900,885 and $4,790,079 for the first six months of 2015 and 2014, respectively.  The increase in losses is attributable primarily to increased overhead costs associated with expanding and restructuring the business and legal costs.

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The net loss attributed to common shareholders was $14,383,506 in the first six months of 2015 compared to $11,888,004 in the same period of 2014 after taking into account preferred dividends of $0 and $1,489,703 in 2015 and 2014, respectively. The net loss translates to ($0.15) per basic and diluted share for the first six months of 2015 as compared to a net loss of ($0.16) per basic and diluted share in same period of 2014.

Revenues from continuing operations for the first six months of 2015 improved over the same period of 2014.  The Company recognized the initial revenue from its Power Generation division and focused its overall operations on construction and power generation with the sale of its HVAC service and installation and related e-commerce businesses. Gross margins and profits on the Construction business are recovering from the second half of 2014 as that group shifts to a greater emphasis on construction management of larger dollar projects. We look forward to expanding on our foundation of improved efficiencies and refocused management teams to drive Company sales upward with an improved bottom line.  This concludes the financial reporting section, so I will return the microphone to Johnny Thomas to discuss plans for our Technology division, EnSite Power.

Johnny Thomas:  We anticipate a private placement of EnSite shares to fund a development program for UPStealth® battery management systems specifically designed for data centers and telecom markets. This financing program is expected to allow us to achieve technology success without diluting our BE shareholders. We plan to spin out Blue Earth’s EnSite ownership to our shareholders of record on a date to be determined. Our high expectations for EnSite are based upon four primary principles:

1)

Data center and telecom product development mirrors what our team accomplished in developing a revolutionary UPStealth® battery management system for traffic intersections. Thus the development phase requires people and dollar resources, but there are no “research tasks” that require the invention of new technology.

2)

Our product specifications are being developed jointly with data center owners that are strategic partners that are expected to approve the product at each stage of development. This process is expected to lead to customer orders that coincide with the completion of product development.

3)

Data center markets are growing rapidly and data center companies have significant square footage of building space allocated for future growth that often does not require them to retrofit new space.

4)

We believe the economics of our UPStealth® data center and telecom products will significantly reduce both the Capex and Opex costs for building and operating new revenue generating space. Therefore, we believe they will have a compelling reason to use our UPStealth® products.

In closing my remarks, I would like to assure our shareholders that we believe this focused strategy through two public companies and a public YieldCo will strongly benefit our shareholders. I am pleased to turn the call over to our chairman again for his closing comments.

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Thanks everyone for joining us today on this 2015 conference call. We would like to thank all of our loyal customers, our employees and our shareholders for their continued support and encouragement.

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