TULSA, Okla., Nov. 17 /PRNewswire-FirstCall/ -- Global Power Equipment Group Inc. (Pink Sheets: GLPW) ("Global Power") today published its 2006 and 2007 audited financial statements and unaudited financial results for the three and six months ended June 30, 2008. These results are available for review at http://www.pinksheets.com/ under the ticker symbol GLPW, and on the Company's website at http://www.globalpower.com/. The Company anticipates release of its third quarter results by the end of 2008 and expects to be on a regular quarterly and yearly reporting cycle thereafter.
For the three months ended June 30, 2008, the Company reported revenues of $150.4 million and net income of $10.9 million, or $0.08 per diluted share. Revenues for the six months ended June 30, 2008 were $268.7 million and net income was $7.6 million, or $0.06 per diluted share. Revenues for the three and six month periods ended June 30, 2008 were forecasted to be $119.1 million and $212.1 million, respectively, pursuant to the financial projections included in the Company's Disclosure Statement filed in connection with the Company's emergence in January 2008 from Chapter 11.
"We exceeded our earnings expectations for the periods as the Company experienced strong performance for the first six months of 2008," said John Matheson, President and Chief Executive Officer of Global Power. "Major factors contributing to our strong performance were the high demand for our equipment in the Middle East as well as a historical high number of maintenance projects for nuclear plant outages. Our focus has been on precise execution to meet our customer's expectations, combat commodity pricing pressure and achieve the greatest margin possible."
The Company generated EBITDAR (earnings before interest, taxes, depreciation and amortization and reorganization expense) of $17.1 million and $40.1 million for the three and six months ended June 30, 2008, respectively. EBITDAR for the three and six months ended June 30, 2008 was forecasted to be $9.9 million and $18.1 million, respectively, per the Disclosure Statement projections. EBITDAR is a non-GAAP financial measure. A reconciliation of our net income to EBITDAR is included in the schedules attached to this press release. Additionally, the Company's firm backlog totaled $371 million at June 30, 2008.
Interest expense for the three and six months ended June 30, 2008 was $2.7 million and $5.9 million, respectively. On January 22, 2008, the Company secured a $150 million senior credit facility (the "Exit Facility") which is comprised of a $90 million term loan funded at close, and a $60 million letter of credit facility, a portion of which is available for cash borrowings through a revolving credit facility. As of June 30, 2008, the Company had no draws under its revolving credit facility.
The Company successfully emerged from Chapter 11 on January 22, 2008. During the six months ended June 30, 2008, the Company incurred costs for legal and advisor fees and claims related expenses totaling $25.1 million.
Income from discontinued operations during the three and six months ended June 30, 2008 was $0.0 million and $11.8 million, respectively, and is included in the EBITDAR results noted above. Income from discontinued operations is primarily attributable to the winding down of legacy Heat Recovery Steam Generator contracts pursuant to the Plan of Reorganization and operations in Brazil as described in our annual financial statements for the year ended December 31, 2007.
About Global Power
Oklahoma based Global Power Equipment Group Inc. is a leading design, engineering and manufacturing firm providing a broad array of equipment and services to the global power infrastructure, energy and process industries. Through its Global Power Services Division, the Company is a leading provider of on-site specialty support and outage management services for commercial nuclear reactors in the United States and provides maintenance services to fossil and hydroelectric power plants and other industrial operations. Through its Global Power Products Division the Company designs, engineers and manufactures a comprehensive portfolio of equipment for gas turbine power plants and power-related equipment for industrial operations, with over 40 years of power generation industry experience. The Company believes, in its product lines, it has one of the largest installed bases of equipment for power generation in the world. Additional information about Global Power Equipment Group may be found at http://www.globalpower.com/.
Forward-looking Statement Disclaimer
Statements contained in this release regarding the Company's or management's intentions, beliefs, expectations, or predictions for the future, including, but not limited to, those regarding anticipated operating results and the publication of any such results, are forward-looking statements within the meaning of U.S. federal securities laws and are subject to a number of known and unknown risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected, including the effects of the recent financial turmoil and the associated global economic down-turn, decreased demand for new gas turbine power plants, the loss of any of our major customers, the cancellation of projects, project cost overruns, including increases in prices for energy or for materials such as steel, and unforeseen schedule delays, competition for the sale of our products or services, poor performance by our subcontractors, warranty and product liability claims and changes in the economic, social and political conditions in the United States and other countries in which we operate, including fluctuations in foreign currency exchange rates and the banking environment and monetary policy. The Company assumes no obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise.
The table below represents the operating results of the Company for the periods indicated:
GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except share and per share amounts) Three Months Six Months Ended Ended June 30, 2008 (Unaudited) Product revenues $82,503 $142,251 Service revenues 67,929 126,472 Total revenues 150,432 268,723 Cost of product revenues 64,059 111,202 Cost of service revenues 59,372 111,474 Cost of revenues 123,431 222,676 Gross profit 27,001 46,047 Selling and administrative expenses 10,825 19,754 Operating income 16,176 26,293 Interest expense 2,705 5,854 Reorganization items 1,135 25,141 Income tax expense 1,381 (484) Income (loss) from continuing operations 10,955 (4,218) Discontinued operations: Income (loss) from operations of discontinued operations, net of tax (36) 11,832 Net income $10,919 $7,614 Earnings per weighted average common share: Income (loss) from continuing operations $0.08 $(0.04) Income from discontinued operations - 0.10 Income per common share - Basic $0.08 $0.06 Weighted average number of shares of common stock outstanding - basic 134,232,036 123,903,091 Income (loss) from continuing operations $0.08 $(0.04) Gain on discontinued operations - 0.10 Income per common share - diluted $0.08 $0.06 Weighted average number of shares of common stock outstanding - diluted 136,908,425 123,090,091 GLOBAL POWER EQUIPMENT GROUP INC. SUPPLEMENTAL STATISTICAL INFORMATION (in thousands) Three Months Six Months Ended Ended June 30, 2008 (Unaudited) Net income (a) $10,919 $7,614 Add back: Income tax provision 1,381 (484) Interest expense 2,705 5,854 Depreciation and amortization 988 1,950 Reorganization items 1,135 25,141 EBITDAR (b) $17,128 $40,075 (a) Includes $0 and $11.8 million, respectively, from discontinued operations. (b) EBITDAR represents net income plus income taxes, interest, depreciation, amortization and reorganization items,. While considered the most common definition used by investors and financial analysts, the EBITDAR presented above may not be comparable to similarly titled measures reported by other companies. The Company believes that EBITDAR, while providing useful information, should not be considered in isolation or as an alternative to other financial measures determined under GAAP. GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES HIGHLIGHTS FROM CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) June 30, December 31, 2008 2007 (Unaudited) (Debtor-in- ASSETS Possession) Current assets: Cash and cash equivalents $18,610 $51,676 Accounts receivable, net of allowance 61,215 37,737 Inventories 6,511 5,763 Costs and estimated earnings in excess of billings 73,455 56,798 Other current assets 7,705 11,695 Total current assets 167,496 163,669 Property, plant and equipment, net 13,017 12,129 Other long-term assets 104,042 100,083 Total assets $284,555 $275,881 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $5,000 $20,000 Accounts payable & accrued liabilities 36,062 42,863 Billings in excess of costs and estimated earnings 28,546 27,864 Deferred revenue 18,348 29,921 Deferred tax liability 2,738 2,738 Other current liabilities 16,042 20,599 Total current liabilities 106,736 143,985 Long-term deferred tax liability 6,821 6,821 Other long-term liabilities 2,842 2,845 Long-term debt, net of current maturities 82,500 - Liabilities subject to compromise 2,302 122,435 Total stockholders' equity 83,354 (205) Total liabilities and stockholders' equity $284,555 $275,881 GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES HIGHLIGHTS FROM CONSOLIDATED STATEMENT OF CASH FLOWS (in thousands) Six Months Ended June 30, 2008 (Unaudited) Net income $7,614 Net cash used in operating activities (167,471) Net cash used in investing activities (1,943) Net cash provided by financing activities 134,223 Effect of exchange rate changes on cash 2,125 Net change in cash and cash equivalents (33,066)
For the six months ended June 30, 2008, cash flows from operating activities include payment of allowed claims pursuant to the Plan of Reorganization in addition to general working capital requirements. Cash provided by financing activities for the six months ended June 30, 2008 was comprised of the Rights Offering and proceeds from the Exit Credit Facility, a portion of which was offset by the decrease in amounts due on the Debtor-in-Possession Facility which was paid in full upon emergence as further described in the notes to the condensed consolidated financial statements for the period ended June 30, 2008.
Company Contact: Candice Cheeseman Vice President of Administration and General Counsel Global Power Equipment Group Inc. (918) 488-0828
