TULSA, Okla., May 19 /PRNewswire-FirstCall/ -- Global Power Equipment Group Inc. (Pink Sheets: GLPW) ("Global Power") today announces its unaudited financial results for the three months ended March 31, 2010.
For the three months ended March 31, 2010, the Company reported revenues of $157.2 million and a net income of $11.2 million, or $0.08 per diluted share. For the three months ended March 31, 2009, Global Power reported revenues of $126.0 million and net income of $12.6 million, or $0.09 per diluted share. Services segment revenues as a percentage of consolidated revenues were 78% and 54% for the three months ended March 31, 2010 and 2009, respectively.
"Our first quarter results clearly reflect the benefit of having two platforms in the power generation industry," said David Keller, President and CEO of Global Power. "Our Services segment continued to execute on capital projects which more than offset a decrease in outage work compared to the prior year. Our Products segment performance is representative of the OEM market during this depressed part of the cycle. Products segment revenues and margins are down on a year-over-year basis due to reduced demand for equipment supporting new capacity additions. Energy regulatory uncertainty in the U.S. is also causing customers to defer capital and maintenance expenditures. Although we are pleased with the operating performance in the quarter, we remain cautious about the underlying fundamentals in our end markets."
The Company generated EBITDA (earnings before interest, taxes, depreciation, and amortization) from continuing operations of $14.9 million for the three months ended March 31, 2010, as compared to $16.8 million for the first three months of 2009. In addition, the Company's backlog decreased $47.2 million from December 31, 2009 to $267.7 million as of March 31, 2010. EBITDA and backlog are non-GAAP financial measures. A reconciliation of our net income to EBITDA is included in the schedules attached to this press release.
During the three months ended March 31, 2010, cash provided by operating activities was $1.4 million. Cash generated by operations in the quarter was affected by an increase in cost in excess of billings in the Services segment which was primarily the result of timing of collections on capital projects previously referenced.
The Global Power term loan was $24.6 million as of March 31, 2010 net of $40.7 million in payments made during the first quarter of 2010. Interest expense for the three months ended March 31, 2010 was $2.2 million. As of March 31, 2010, the Company had unrestricted cash of $62.6 million and $25 million of unused capacity on its revolving credit facility.
In light of our recent filing of a Form 10 registration statement with the SEC, we have determined not to have a quarterly conference call to discuss the information presented in this press release. The Company filed its Form 10 with the SEC on April 30, 2010 and anticipates amending the Form 10 with financial statements and related footnotes for the three month period ended March 31, 2010 in the process of addressing SEC comments. Global Power has received notice the SEC intends to conduct a full review of the Form 10 filing. A copy of this filing may be found on the Global Power Equipment Group website under the "Financials" heading.
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 generation, 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. With a strong competitive position in its product lines, the Company benefits from a large installed base of equipment in domestic and international markets. 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 financial turmoil and global recession, 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.
Company Contact: Jennifer Gordon ICR (918) 274-2280 investorrelations@globalpower.com
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 OPERATIONS (in thousands, except share and per share amounts) Three Months Ended March 31, --------- 2010 2009 ---- ---- (Unaudited) Product revenues $35,054 $57,425 Service revenues 122,096 68,549 ------- ------ Total revenues 157,150 125,974 Cost of product revenues 26,324 39,966 Cost of service revenues 105,569 59,778 ------- ------ Cost of revenues 131,893 99,744 Gross profit 25,257 26,230 Selling and administrative expenses 10,859 10,524 ------ ------ Operating income 14,398 15,706 Interest expense 2,157 2,669 Reorganization (income) expense 506 (132) Income tax expense 1,629 1,153 ----- ----- Income from continuing operations 10,106 12,016 Discontinued operations: Income from discontinued operations, net of tax 1,059 618 ----- --- Net income $11,165 $12,634 ======= ======= Basic earnings per weighted average common share: Income from continuing operations $0.07 $0.09 Income from discontinued operations 0.01 - ---- --- Income per common share - basic $0.08 $0.09 ===== ===== Weighted average number of shares of common stock outstanding -basic 137,070,982 134,937,931 =========== =========== Diluted earnings per weighted average common share: Income from continuing operations $0.07 $0.09 Income from discontinued operations 0.01 - ---- --- Income per common share - diluted $0.08 $0.09 ===== ===== Weighted average number of shares of common stock outstanding -diluted 144,390,016 134,937,931 =========== =========== GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES SUPPLEMENTAL STATISTICAL INFORMATION (in thousands) Three Months Ended March 31, ------------------ 2010 2009 ---- ---- (Unaudited) Income from continuing operations $10,106 $12,016 Add back: Income tax provision 1,629 1,153 Interest expense 2,157 2,669 Depreciation and amortization 1,040 950 EBITDA from continuing operations (a) $14,932 $16,788 ======= ======= (a) EBITDA represents net income plus income taxes, interest, depreciation and amortization. While considered the most common definition used by investors and financial analysts, the EBITDA presented above may not be comparable to similarly titled measures reported by other companies. The Company believes that EBITDA, 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) March 31, December 31, 2010 2009 ---- ---- ASSETS (unaudited) Current assets: Cash and cash equivalents $62,627 $103,220 Restricted cash 1,018 2,018 Accounts receivable, net of allowance for doubtful accounts 54,153 62,267 Inventories 5,036 4,659 Costs and estimated earnings in excess of billings 51,057 31,518 Other current assets 6,480 11,330 ----- ------ Total current assets 180,371 215,012 Property, plant and equipment, net 12,957 12,945 Other long-term assets 100,377 101,263 Total assets $293,705 $329,220 ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $1,250 $40,692 Accounts payable and accrued liabilities 57,206 59,392 Billings in excess of costs and estimated earnings 30,998 34,357 Deferred revenue 2,118 3,006 Other current liabilities 12,650 11,363 ------ ------ Total current liabilities 104,222 148,810 Long-term deferred tax liability 14,768 14,768 Other long-term liabilities 3,996 3,990 Long-term debt, net of current maturities 23,383 24,633 Liabilities subject to compromise 460 541 --- --- Total liabilities 146,829 192,742 Stockholders' equity 146,876 136,478 Total liabilities and stockholders' equity $293,705 $329,220 ======== ======== GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES HIGHLIGHTS FROM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Three Months Ended March 31, ---------------------------- 2010 2009 ---- ---- (unaudited) Net cash provided by operating activities $1,418 $19,755 Net cash provide by (used in) investing activities 493 (701) Net cash (used in) provided by financing activities (40,996) (1,315) Effect of exchange rate changes on cash (1,508) (1,286) Net change in cash and cash equivalents $(40,593) $16,453 ======== =======
Global Power Equipment Group Inc.
CONTACT: Jennifer Gordon of ICR, +1-918-274-2280,
investorrelations@globalpower.com, for Global Power Equipment Group Inc.
Web Site: http://www.globalpower.com/
