Global Power Equipment Group Inc. Announces Fourth Quarter and Fiscal 2009 Financial Results

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Mar 29, 2010, 04:01 ET

TULSA, Okla., March 29 /PRNewswire-FirstCall/ -- Global Power Equipment Group Inc. (Pink Sheets: GLPW) ("Global Power") today published its audited financial results for the year ended December 31, 2009. These results are available for review on the Company's website at www.globalpower.com.

For the three months ended December 31, 2009, the Company reported revenues of $163.0 million and a net loss of $(4.0) million, or $(0.03) per diluted share. Revenues for the year ended December 31, 2009 were $540.6 million and net income was $27.9 million, or $0.20 per diluted share.

"Fourth quarter 2009 marks the end of a solid year of operating performance for Global Power," said David Keller, President and CEO of Global Power. "We will continue to deliver value to our shareholders and are focused on our goal to relist on a major stock exchange by the end of the second quarter."

The Company generated EBITDAR (earnings before interest, taxes, depreciation, amortization and reorganization expense) from continuing operations of $1.8 million and $37.9 million for the three months and year ended December 31, 2009, respectively.

EBITDAR is a non-GAAP financial measure. A reconciliation of our income to EBITDAR is included in the schedules attached to the press release. In addition, the Company's backlog decreased $7.7 million from September 30, 2009 to $314.9 million as of December 31, 2009.

Interest expense for the three months and year ended December 31, 2009 was $2.4 million and $9.7 million, respectively. As of December 31, 2009 the Company had unrestricted cash of $103.2 million and $25 million of unused capacity on its revolving credit facility.

The Company will host a conference call on March 30 at 7:30am CDT. The numbers to call for this teleconference are within the US and Canada (877) 407-0789, and outside North America (201) 689-8562. A playback of the call will be available from 10:30am CDT on March 30 through April 13, by calling (877) 660-6853 with in the US and Canada and (201) 612-7415 from outside North America. The replay code is 348194.

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. 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 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.

Company Contact:
Jennifer Gordon
ICR
(918) 274-2280
[email protected]

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		Years Ended
				December 31,		December 31,

				2009	2008	2009	2008
				(Unaudited)

Product revenues				$ 39,458	$ 90,698	$ 193,150	$ 311,603
Service revenues				123,589	67,491	347,460	245,161
		Total revenues		163,047	158,189	540,610	556,764

Cost of product revenues				39,212	69,223	150,137	239,447
Cost of service revenues				111,465	60,795	310,048	217,337
	Cost of revenues			150,677	130,018	460,185	456,784

Gross profit				12,370	28,171	80,425	99,980

Selling and administrative expenses				11,852	19,872	46,664	50,418
	Operating income			518	8,299	33,761	49,562

Interest expense				2,425	3,023	9,667	11,667
Reorganization expense				735	(2,233)	1,030	23,574
Income tax expense				3,307	2,449	5,282	3,151
	Income from continuing operations			(5,949)	5,060	17,782	11,170

Discontinued operations:
	Income from discontinued operations, net of tax			1,729	5,167	7,369	23,668
	Gain on disposal, net of tax			201	-	2,736	-

	Net income			$ (4,019)	$ 10,227	$ 27,887	$ 34,838

Basic earnings per weighted average common share:
		Income from continuing operations		$ (0.04)	$ 0.04	$ 0.13	$ 0.09
		Income from discontinued operations		0.01	0.04	0.07	0.18
			Income per common share - basic	$ (0.03)	$ 0.08	$ 0.20	$ 0.27

Weighted average number of shares of common stock outstanding - basic				136,701,558	134,586,541	136,118,599	129,288,721

Diluted earnings per weighted average common share:
		Income from continuing operations		$ (0.04)	$ 0.04	$ 0.13	$ 0.09
		Income from discontinued operations		0.01	0.04	0.07	0.18
			Income per common share - diluted	$ (0.03)	$ 0.08	$ 0.20	$ 0.27

Weighted average number of shares of common stock outstanding - diluted				142,587,350	134,586,541	140,096,176	131,333,735


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

		Three Months Ended December 31,		Twelve Months Ended December 31,

		2009	2008	2009	2008
		(Unaudited)
Income from continuing operations		$ (5,949)	$ 5,060	$ 17,782	$ 11,170
Add back:
	Income tax provision	3,307	2,449	5,282	3,151
	Interest expense	2,425	3,023	9,667	11,667
	Depreciation and amortization	1,330	868	4,151	3,792
	Reorganization items	735	(2,233)	1,030	23,574

EBITDAR from continuing operations (a)		$ 1,848	$ 9,167	$ 37,912	$ 53,354

(a) EBITDA 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)

			December 31,	December 31,
			2009	2008
ASSETS
Current assets:
	Cash and cash equivalents		$ 103,220	$ 57,633
	Restricted cash		2,018	3,013
	Accounts receivable, net of allowance of $1,588 and $3,122		62,267	55,953
	Inventories		4,659	4,963
	Costs and estimated earnings in excess of billings		31,518	55,922
	Other current assets		11,330	7,316
		Total current assets	215,012	184,800

Property, plant and equipment, net			12,945	12,610
Other long-term assets			101,263	103,629

		Total assets	$ 329,220	$ 301,039

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Current maturities of long-term debt		$ 40,692	$ 19,675
	Accounts payable and accrued liabilities		59,392	42,588
	Billings in excess of costs and estimated earnings		34,357	36,728
	Deferred revenue		3,006	8,695
	Other current liabilities		11,363	7,446
		Total current liabilities	148,810	115,132

Long-term deferred tax liability			14,768	11,100
Other long-term liabilities			3,990	3,605
Long-term debt, net of current maturities			24,633	65,325
Liabilities subject to compromise			541	604
		Total liabilities	192,742	195,766

Stockholders' equity			136,478	105,273

Total liabilities and stockholders' equity			$ 329,220	$ 301,039


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

		Years Ended December 31,

		2009	2008 (a)


	Net cash provided by (used in) operating activities	$ 66,135	$ (119,472)

	Net cash used in investing activities	(1,748)	(3,397)

	Net cash (used in) provided by financing activities	(19,740)	130,877

	Effect of exchange rate changes on cash	940	(2,051)

	Net change in cash and cash equivalents	$ 45,587	$ 5,957

(a) 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.