Global Power Equipment Group Inc. Reports Earnings for the Three and Nine Months Ended September 30, 2008

TULSA, Okla., Dec. 17 /PRNewswire-FirstCall/ -- Global Power Equipment Group Inc. (Pink Sheets: GLPW) ("Global Power") today published its unaudited financial results for the three and nine months ended September 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 will host a conference call on Friday, December 19, 2008 at 9:00 AM CST. The numbers to call for this teleconference are: within the United States and Canada [phone], outside North America [phone]. A playback of the call will be available from 1:00 p.m. CST on December 19, 2008 through midnight EST on January 2, 2009, by calling: within North America [phone], outside North America [phone]. The replay ID code is 121908.

For the three months ended September 30, 2008, the Company reported revenues of $129.9 million and net income of $17.0 million, or $0.12 per diluted share. Revenues for the nine months ended September 30, 2008 were $398.6 million and net income was $24.6 million, or $0.19 per diluted share. Revenues for the three and nine month periods ended September 30, 2008 were forecasted to be $93.7 million and $305.8 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.

"This was another strong quarter for the Company," said John Matheson, President and Chief Executive Officer of Global Power. "Our Products division continued to execute well primarily on Middle East gas turbine projects while our Services division benefited from additional project work and expanded outage scope from existing customer nuclear plant sites."

The Company generated EBITDAR (earnings before interest, taxes, depreciation and amortization and reorganization expense) from continuing operations of $15.9 million and $44.2 million for the three and nine months ended September 30, 2008, respectively. EBITDAR from continuing operations for the three and nine months ended September 30, 2008 was forecasted to be $7.9 million and $25.2 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 increased $6 million from June 30, 2008 to $377 million as of September 30, 2008.

Interest expense for the three and nine months ended September 30, 2008 was $2.8 million and $8.6 million, respectively. As of September 30, 2008, the Company had no draws under its revolving credit facility.

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 downturn, 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 Nine Months Ended Ended September 30, 2008 (Unaudited) Product revenues $78,654 $220,905 Service revenues 51,198 177,670 Total revenues 129,852 398,575 Cost of product revenues 59,022 170,224 Cost of service revenues 45,068 156,542 Cost of revenues 104,090 326,766 Gross profit 25,762 71,809 Selling and administrative expenses 10,792 30,546 Operating income 14,970 41,263 Interest expense 2,790 8,644 Reorganization items 666 25,807 Income tax expense 1,186 702 Income from continuing operations 10,328 6,110 Discontinued operations: Income from operations of discontinued operations, net of tax 6,669 18,501 Net income $16,997 $24,611 Earnings per weighted average common share: Income from continuing operations $0.08 $0.05 Income from discontinued operations 0.05 0.14 Income per common share - Basic $0.13 $0.19 Weighted average number of shares of common stock outstanding - basic 134,586,541 127,503,374 Income from continuing operations $0.08 $0.05 Income from discontinued operations 0.04 0.14 Income per common share - diluted $0.12 $0.19 Weighted average number of shares of common stock outstanding - diluted 137,421,671 130,054,940 GLOBAL POWER EQUIPMENT GROUP INC. SUPPLEMENTAL STATISTICAL INFORMATION (in thousands) Three Months Nine Months Ended Ended September 30, 2008 Net income from operations $10,328 $6,110 Add back: Income tax provision 1,186 702 Interest expense 2,790 8,644 Depreciation and amortization 974 2,924 Reorganization items 666 25,807 EBITDAR from continuing operations (a) $15,944 $44,187 (a) EBITDAR from continuing operations 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) September 30, December 31, 2008 2007 (Unaudited) (Debtor-in- ASSETS Possession) Current assets: Cash and cash equivalents $31,039 $51,676 Accounts receivable, net of allowance 59,073 37,737 Inventories 7,077 5,763 Costs and estimated earnings in excess of billings 62,137 56,798 Other current assets 7,508 11,695 Total current assets 166,834 163,669 Property, plant and equipment, net 12,715 12,129 Other long-term assets 104,089 100,083 Total assets $283,638 $275,881 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $5,000 $20,000 Accounts payable & accrued liabilities 34,779 42,863 Billings in excess of costs and estimated earnings 23,159 27,864 Deferred revenue 11,079 29,921 Deferred tax liability 2,738 2,738 Other current liabilities 17,488 20,599 Total current liabilities 94,243 143,985 Long-term deferred tax liability 6,821 6,821 Other long-term liabilities 2,842 2,845 Long-term debt, net of current maturities 81,250 - Liabilities subject to compromise 1,042 122,435 Total stockholders' equity 97,440 (205) Total liabilities and stockholders' equity $283,638 $275,881 GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES HIGHLIGHTS FROM CONSOLIDATED STATEMENT OF CASH FLOWS (in thousands) Nine Months Ended September 30, 2008 (Unaudited) Net income $24,611 Net cash used in operating activities (149,972) Net cash used in investing activities (2,292) Net cash provided by financing activities 132,127 Effect of exchange rate changes on cash (500) Net change in cash and cash equivalents $(20,637)

For the nine months ended September 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 nine months ended September 30, 2008 was comprised of proceeds from the Rights Offering and proceeds from the Exit Credit Facility, a portion of which was offset by a decrease in amounts due on the Debtor-in-Possession Facility which was paid in full upon emergence.

Company Contact: Candice Cheeseman Vice President of Administration and General Counsel Global Power Equipment Group Inc. [phone]