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Global Power Equipment Group Inc. Reports Earnings for the Three and Six Months Ended June 30, 2009
TULSA, Okla., Aug. 14 /PRNewswire-FirstCall/ -- Global Power Equipment Group Inc. (Pink Sheets: GLPW.PK) ("Global Power") today published its unaudited financial results for the three and six months ended June 30, 2009. 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 June 30, 2009, the Company reported revenues of $155.8 million and net income of $17.4 million, or $0.12 per diluted share. Revenues for the three months ended June 30, 2008 were $150.4 million and a net income of $10.9 million, or $0.08 per diluted share. For the six months ended June 30, 2009, the Company reported revenues of $281.8 million and net income of $30.1 million, or $0.22 per diluted share. Revenues for the six months ended June 30, 2008 were $268.7 million and a net income of $7.6 million, which included $25.1 million of reorganization expenses, or $0.06 per diluted share.
"We completed another solid quarter of financial and operational results as our Products Division executed well on projects booked in 2008 and our Services Division completed its highest spring nuclear outage season in terms of revenue," stated John Matheson, Global Power's president and chief executive officer. "Although our firm backlog declined quarter to quarter, bidding activity remains healthy but we remain cautious on booking expectations given the macro-economic environment within the power markets."
The Company's gross profit for the three and six months ended June 30, 2009 totaled $27.8 and $54.0 million representing 17.8 and 19.2 percent gross margin compared to gross profit of $27.0 and $46.0 million, or 18.0 and 17.1 percent gross margin, for the three and six months ended June 30, 2008. EBITDAR (earnings before interest, taxes, depreciation and amortization and reorganization expense) from continuing operations was $15.4 and $32.0 million for the three and six months ended June 30, 2009 as compared to $17.1 and $28.2 million for the three and six months ended June 30, 2008. 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.
Interest expense for the three and six months ended June 30, 2009 was $2.2 million and $4.8 million, respectively. For the three and six months ended June 30, 2008 interest expense was $2.7 million and $5.9 million, respectively. As of June 30, 2009, the Company had no draws under its revolving credit facility, however on July 14, 2009, the Company drew down the full amount of the $25 million on the cash advance sub-facility of the Credit Facility in order to secure the available funds as one of the two lenders on the revolver facility was undergoing significant economic difficulties.
At June 30, 2009 the Company's backlog totaled $288 million compared to $344 million at March 31, 2009 and $370 million as of June 30, 2008. In addition, the Company had cash and cash equivalents of $83.6 million at June 30, 2009.
Global Power today also announced that it intends to work towards re-listing its common stock on a stock exchange and becoming a SEC reporting company during the first half of 2010.
The Company will host a conference call on Monday, August 17, 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 4:00 PM CDT on August 17, 2009 through midnight CDT on September 1, 2009, by calling: within North America (800) 675-9924, outside North America (213) 416-2185. The replay ID code is 81709.
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 Six Months Ended
June 30, June 30,
-------------------- ---------------------
2009 2008 2009 2008
---- ---- ---- ----
(Unaudited) (Unaudited)
Products revenue $57,995 $82,502 $115,420 $142,187
Services revenue 97,810 67,929 166,359 126,472
------ ------ ------- -------
Total revenues 155,805 150,431 281,779 268,659
Cost of products revenue 40,148 64,058 80,114 111,138
Cost of services revenue 87,855 59,372 147,633 111,474
------ ------ ------- -------
Cost of revenues 128,003 123,430 227,747 222,612
------- ------- ------- -------
Gross profit 27,802 27,001 54,032 46,047
Selling and administrative
expenses 13,352 10,872 23,876 19,801
------ ------ ------ ------
Operating income 14,450 16,129 30,156 26,246
Interest expense 2,161 2,705 4,830 5,854
Reorganization expense 235 1,135 103 25,141
Income tax expense 1,352 1,381 2,505 878
------ ------ ------- -------
Income (loss) from
continuing operations 10,702 10,908 22,718 (5,627)
Discontinued operations:
Income from discontinued
operations 6,731 11 7,349 13,241
------ ------ ------- -------
Net income $17,433 $10,919 $30,067 $7,614
======= ======= ======= ======
Basic earnings (loss) per
weighted average common
share:
Income (loss) from
continuing operations $0.08 $0.08 $0.17 $(0.05)
Income from discontinued
operations 0.05 - 0.05 0.11
---- ---- ---- ----
Income per common
share - basic $0.13 $0.08 $0.22 $0.06
===== ===== ===== =====
Weighted average number
of shares of common
stock outstanding -
basic 136,406,184 134,232,036 135,676,113 123,903,091
=========== =========== =========== ===========
Dilutive earnings (loss)
per weighted
average common share:
Income (loss) from
continuing
operations $0.08 $0.08 $0.17 $(0.05)
Income from discontinued
operations 0.04 - 0.05 0.11
---- ---- ---- ----
Income per common
share - diluted $0.12 $0.08 $0.22 $0.06
===== ===== ===== =====
Weighted average
number of shares
of common stock
outstanding -
diluted 141,801,236 136,908,425 137,409,503 123,903,091
=========== =========== =========== ===========
GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES
SUPPLEMENTAL STATISTICAL INFORMATION
(in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2009 2008 2009 2008
---- ---- ---- ----
Income from continuing operations $10,702 $10,908 $22,718 $(5,627)
Add back:
Income tax provision 1,352 1,381 2,505 878
Interest expense 2,161 2,705 4,830 5,854
Change in fair value of
foreign exchange
contracts (133) - (225) -
Depreciation and
amortization 1,106 988 2,056 1,950
Reorganization items 235 1,135 103 25,141
--- ----- --- ------
EBITDAR from continuing
operations (a) $15,423 $17,117 $31,987 $28,196
======= ======= ======= =======
(a) EBITDAR from continuing operations represents net income plus income
taxes, interest, reorganization items, depreciation and amortization.
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,
2009 2008
---- ----
ASSETS
Current assets:
Cash and cash equivalents $83,640 $57,633
Accounts receivable, net of allowance 46,703 55,953
Inventories 5,639 4,963
Costs and estimated earnings
in excess of billings 39,527 55,922
Other current assets 10,768 10,329
------ ------
Total current assets 186,277 184,800
Property, plant and equipment, net 12,489 12,610
Other long-term assets 102,866 103,629
------- -------
Total assets $301,632 $301,039
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $5,000 $19,675
Accounts payable & accrued liabilities 41,148 30,640
Billings in excess of costs and estimated
earnings 26,766 36,728
Deferred revenue 2,634 8,695
Other current liabilities 11,011 19,394
------ ------
Total current liabilities 86,559 115,132
Long-term deferred tax liability 11,100 11,100
Other long-term liabilities 3,605 3,605
Long-term debt, net of current maturities 62,825 65,325
Liabilities subject to compromise 584 604
Total stockholders' equity 136,959 105,273
------- -------
Total liabilities and stockholders'
equity $301,632 $301,039
======== ========
GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES
HIGHLIGHTS FROM CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Six Months Ended June 30,
-------------------------
2009 2008 (a)
---- -------
(Unaudited)
Net cash provided by (used in) operating activities $43,756 $(167,471)
Net cash used in investing activities (1,074) (1,943)
Net cash provided by (used in) financing activities (17,240) 134,223
Effect of exchange rate changes on cash 565 2,125
------- ---------
Net change in cash and cash equivalents $26,007 $(33,066)
------- ---------
(a) 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 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.