Global Power Equipment Group Inc. Publishes 2008 Audited Financial Statements

TULSA, Okla., March 31 /PRNewswire-FirstCall/ -- Global Power Equipment Group Inc. (Pink Sheets: GLPW.PK) ("Global Power") today published its audited financial results for the year ended December 31, 2008. These results are available for review at www.pinksheets.com under the ticker symbol GLPW, and on the Company's website at www.globalpower.com.

For the three months ended December 31, 2008, the Company reported revenues of $158.2 million and net income of $10.2 million, or $0.08 per diluted share. Revenues for the year ended December 31, 2008 were $556.8 million and net income was $34.8 million, or $0.27 per diluted share. Revenues for the three months and year ended December 31, 2008 were forecasted to be $91.0 million and $396.8 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.

"For the fourth quarter 2008, we continued the trend of executing well ahead of expectations on our book of business," said John Matheson, President and Chief Executive Officer of Global Power. "2008 was one of the best performing years in Global Power's 10 year history and I personally thank our customers for entrusting us with their work and our employees and leadership team for pulling together to end 2008 on a historical high note, especially given the current environment."

The Company generated EBITDAR (earnings before interest, taxes, depreciation and amortization and reorganization expense) from continuing operations of $9.2 million and $53.4 million for the three months and year ended December 31, 2008, respectively. EBITDAR from continuing operations for the three months and year ended December 31, 2008 was forecasted to be $7.9 million and $33.1 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 backlog decreased $44 million from September 30, 2008 to $333 million as of December 31, 2008.

Interest expense for the three months and year ended December 31, 2008 was $3.0 million and $11.7 million, respectively. As of December 31, 2008, the Company had no draws under its revolving credit facility.

The Company will host a conference call on Wednesday, April 1, 2009 at 1:00 PM CDT. The numbers to call for this teleconference are: within the United States and Canada (800) 870-4027, outside North America (213) 416-2975. A playback of the call will be available from 2:00 p.m. CDT on April 1, 2009 through midnight CDT on April 15, 2009, by calling: within North America (800) 675-9924, outside North America (213) 416-2185. The replay ID code is 40109.

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 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 current financial turmoil and the associated 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.

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    Year Ended
                                                    December 31, 2008

    Product revenues                           $ 90,698          $311,603
    Service revenues                             67,491           245,161
        Total revenues                          158,189           556,764

    Cost of product revenues                     69,223           239,447
    Cost of service revenues                     60,795           217,337
        Cost of revenues                        130,018           456,784

    Gross profit                                 28,171            99,980

    Selling and administrative expenses          19,872            50,418
        Operating income                          8,299            49,562

    Interest expense                              3,023            11,667

    Reorganization items                         (2,233)           23,574

    Income tax expense                            2,449             3,151
        Income from continuing operations         5,060            11,170

    Discontinued operations:
        Income from operations of
         discontinued operations, net of tax      5,167            23,668

        Net income                              $10,227           $34,838

    Earnings per weighted average
     common share:
        Income from continuing operations        $ 0.04            $ 0.09
        Income from discontinued operations        0.04              0.18
          Income per common share - basic        $ 0.08            $ 0.27

        Weighted average number of shares of
         common stock outstanding - basic   134,586,541       129,288,721

        Income from continuing operations        $ 0.04            $ 0.09
        Income from discontinued operations        0.04              0.18
          Income per common share - diluted      $ 0.08            $ 0.27

    Weighted average number of shares
     of common stock outstanding - diluted  134,586,541       131,333,735

    GLOBAL POWER EQUIPMENT GROUP INC.
    SUPPLEMENTAL STATISTICAL INFORMATION
    (in thousands)

                                         Three Months Ended      Year Ended
                                                     December 31, 2008

    Income from continuing operations            $5,060          $ 11,170
         Add back:
           Income tax provision                   2,449             3,151
           Interest expense                       3,023            11,667
           Depreciation and amortization            868             3,792
           Reorganization items                  (2,233)           23,574
           EBITDAR from continuing operations (a)$9,167           $53,354

    (a) EBITDAR from continuing operations represents net income plus income
    taxes, interest, depreciation, and 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)

                                           December 31,      December 31,
                                                2008              2007
                                                              (Debtor-in-
    ASSETS                                                    Possession)
    Current assets:
        Cash and cash equivalents               $57,633           $51,676
        Accounts receivable,
         net of allowance                        55,953            37,737
        Inventories                               4,963             5,763
        Costs and estimated earnings
         in excess of billings                   55,922            56,798
        Other current assets                     10,329            11,695
            Total current assets                184,800           163,669

    Property, plant and equipment, net           12,610            12,129
    Other long-term assets                      103,629           100,083
            Total assets                       $301,039          $275,881

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
        Current maturities of long-term debt    $19,675           $20,000
        Accounts payable & accrued liabilities   30,640            42,863
        Billings in excess of costs and
         estimated earnings                      36,728            27,864
        Deferred revenue                          8,695            29,921
        Deferred tax liability                      -               2,738
        Other current liabilities                19,394            20,599
            Total current liabilities           115,132           143,985

    Long-term deferred tax liability             11,100             6,821
    Other long-term liabilities                   3,605             2,845
    Long-term debt, net of current maturities    65,325               -
    Liabilities subject to compromise               604           122,435

            Total stockholders' equity
             (deficit)                          105,273            (205)

            Total liabilities and
             stockholders' equity              $301,039          $275,881

    GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES
    HIGHLIGHTS FROM CONSOLIDATED STATEMENT OF CASH FLOWS
    (in thousands)

                                                                    Year
                                                                    Ended

                                                                 December 31,
                                                                     2008
                                                                  (Unaudited)

              Net cash used in operating activities               (119,472)

              Net cash used in investing activities                 (3,397)

              Net cash provided by financing activities            130,877

              Effect of exchange rate changes on cash               (2,051)

                Net change in cash and cash equivalents             $5,957



    For the year ended December 31, 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 year ended December 31, 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.
    (918) 488-0828

SOURCE Global Power Equipment Group Inc.