August 16, 2010

Global Power Equipment Group Inc. Announces Second Quarter 2010 Financial Results

TULSA, Okla., Aug 16, 2010 (GlobeNewswire via COMTEX News Network) -- Global Power Equipment Group Inc. (Nasdaq:GLPW) ("Global Power" or the "Company") today announced its unaudited financial results for the three and six months ended June 30, 2010.

For the second quarter of 2010, revenue was $124.7 million and net income was $10.6 million or $0.65 per diluted share, compared to revenue of $155.8 million and net income of $17.4 million or $1.12 per diluted share for the second quarter of 2009. For the first six months of 2010, revenue was $281.8 million and net income was $21.8 million or $1.35 per diluted share, compared to revenue of $281.8 million and net income of $30.1 million or $1.96 per diluted share for the first six months of 2009. Services division revenue as a percentage of consolidated revenue was 73% for the first half of 2010, up from 59% for the same period in 2009.

"We completed another solid quarter of operating performance with higher realized margins on lower volume compared to the prior year," said David Keller, President and CEO of Global Power. "Product bookings in the quarter showed improvement and while the increase in resulting backlog is encouraging, the margins on new Product bookings are significantly lower than shipments during the quarter due to the competitive environment in this depressed part of the OEM cycle. Our continued generation of cash has further strengthened our balance sheet and we are well-positioned to evaluate strategic options as a listed company once again."

The Company generated EBITDA (earnings before interest, taxes, depreciation and amortization) from continuing operations of $10.8 million and $25.7 million for the second quarter and first six months of 2010, as compared to $15.3 million and $32.1 million for the same periods in 2009.

The Company's term loan was $24.6 million as of June 30, 2010 net of $40.7 million in payments made during the first quarter of 2010. During the first half of 2010 cash provided by operating activities was $7.8 million. As of June 30, 2010, the Company had unrestricted cash of $66.3 million and $25 million of unused capacity on its revolving credit facility.

In addition, the Company's backlog increased $30.3 million during the second quarter of 2010 to $298.0 million as of June 30, 2010. Services division backlog as a percentage of total backlog was 67% at June 30, 2010 as compared to 63% at March 31, 2010.

The Company believes EBITDA and backlog are important supplemental measures of operating performance and uses both to assess performance and inform operating decisions. However neither EBITDA nor backlog is a GAAP financial measure. A table reconciling EBITDA to net income is included in the financial information that is part of this release. The Company's calculations of EBITDA and backlog should not be used as a substitute for GAAP measures of performance, including net cash provided by operations, operating income and net income. The Company's method of calculating EBITDA and backlog may vary substantially from the methods used by other companies and investors are cautioned not to rely unduly on these non-GAAP measures.

On July 12, 2010, after the close of the second quarter, the U.S. Bankruptcy Court approved a settlement of certain claims against the Company and its Deltak subsidiary. As a result of that settlement and the related compromise by the Company of its own claim against the fund that had been established pursuant to the Company's Plan of Reorganization to be distributed to holders of allowed unsecured claims against Deltak, the Company received a cash payment of $2.8 million on July 27, 2010.

The Company will host a conference call on Monday, August 16, 2010 at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss these results. The call can be accessed by telephone at (877) 407-0789 (within the U.S. and Canada) and at (201) 689-8562 (outside the U.S. and Canada) or by webcast through the investor information portion of the Company's website, www.globalpower.com. A replay of the conference call will be available until August 30, 2010 at (877) 660-6853 (within the U.S. and Canada) and at (201) 612-7415 (outside the U.S. and Canada). The replay account number is 3055 and the pass code is 354906. A replay of the webcast will also be available through the investor relations portion of the Company's website.

About Global Power

Oklahoma based Global Power Equipment Group Inc. is a 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 provides on-site specialty support and outage management services for commercial nuclear reactors in the United States and 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 Inc. may be found at www.globalpower.com.

Forward-looking Statement Disclaimer

This press release contains "forward-looking statements" within the meaning of that term set forth in the Private Securities Litigation Reform Act of 1995. These statements reflect our current views of future events and financial performance and are subject to a number of risks and uncertainties. Our actual results, performance or achievements may differ materially from those expressed or implied in the forward-looking statements. Risks and uncertainties that could cause or contribute to such material differences include, but are not limited to, decreased demand for new gas turbine power plants, reduced demand for, or increased regulation of, nuclear power, loss of any of our major customers, cost increases and project cost overruns, unforeseen schedule delays, poor performance by our subcontractors, cancellation of projects, competition for the sale of our products and services, shortages in, or increases in prices for, energy and materials such as steel that we use to manufacture our products, damage to our reputation, warranty or product liability claims, increased exposure to environmental or other liabilities, failure to comply with various laws and regulations, failure to attract and retain highly-qualified personnel, volatility of our stock price, deterioration or uncertainty of credit markets, 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, the banking environment or monetary policy. Other important factors that may cause actual results to differ materially from those expressed in the forward-looking statements are discussed in our filings with the Securities and Exchange Commission, including the section of our Registration Statement on Form 10 titled "Risk Factors." Except as may be required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, and we caution you not to rely upon them unduly.

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 June   Six Months Ended June
                                                     30,                       30,
                                          ------------------------  ------------------------

                                             2010         2009         2010         2009
                                          -----------  -----------  -----------  -----------
                                                 (Unaudited)               (Unaudited)

  Products revenue                           $ 38,754     $ 57,995     $ 73,808    $ 115,420

  Services revenue                             85,906       97,810      208,002      166,359
                                          -----------  -----------  -----------  -----------
    Total revenues                            124,660      155,805      281,810      281,779

  Cost of products revenue                     28,517       40,148       54,841       80,114

  Cost of services revenue                     71,996       87,855      177,565      147,633
                                          -----------  -----------  -----------  -----------
    Cost of revenues                          100,513      128,003      232,406      227,747


                                          -----------  -----------  -----------  -----------
  Gross profit                                 24,147       27,802       49,404       54,032


  Selling and administrative expenses          13,929       13,352       24,788       23,876
                                          -----------  -----------  -----------  -----------
    Operating income                           10,218       14,450       24,616       30,156

  Interest expense                              1,119        2,161        3,276        4,830
  Reorganization expense                          434          235          940          103

  Income tax expense                              149        1,352        1,778        2,505
                                          -----------  -----------  -----------  -----------
   Income from continuing operations            8,516       10,702       18,622       22,718

  Discontinued operations:

   Income from discontinued operations          2,105        6,731        3,164        7,349
                                          -----------  -----------  -----------  -----------


   Net income                                $ 10,621     $ 17,433     $ 21,786     $ 30,067
                                          ===========  ===========  ===========  ===========

  Basic earnings per weighted average
   common share: [1]
   Income from continuing operations           $ 0.56       $ 0.71       $ 1.23       $ 1.52

   Income from discontinued operations           0.13         0.45         0.20         0.49
                                          -----------  -----------  -----------  -----------

    Income per common share - basic            $ 0.69       $ 1.16       $ 1.43       $ 2.01
                                          ===========  ===========  ===========  ===========

   Weighted average number of shares of

   common stock outstanding - basic        15,303,434   15,003,875   15,189,849   14,922,756
                                          ===========  ===========  ===========  ===========

  Dilutive earnings per weighted average
   common share:
   Income from continuing operations           $ 0.52       $ 0.69       $ 1.15       $ 1.48

   Income from discontinued operations           0.13         0.43         0.20         0.48
                                          -----------  -----------  -----------  -----------

    Income per common share - diluted          $ 0.65       $ 1.12       $ 1.35       $ 1.96
                                          ===========  ===========  ===========  ===========

   Weighted average number of shares of

   common stock outstanding - diluted      16,435,396   15,564,901   16,168,683   15,351,581
                                          ===========  ===========  ===========  ===========

     [1] All share and per share numbers reflect our June 30, 2010, 1-for-9 reverse stock
                                            split.


  GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES
  Reconciliation of EBITDA to Net Income
  (in thousands)


                                              Three Months Ended     Six Months Ended June
                                                   June 30,                  30,
                                            ----------------------  ----------------------

                                               2010         2009       2010         2009
                                            -----------  ---------  -----------  ---------
                                                 (unaudited)             (unaudited)
  Net Income                                   $ 10,621   $ 17,433     $ 21,786   $ 30,067
   Add back:
    Income tax expense                              149      1,352        1,778      2,505
    Interest expense                              1,119      2,161        3,276      4,830
    Income from discontinued operations         (2,105)    (6,731)      (3,164)    (7,349)

    Depreciation and amortization                 1,012      1,106        2,052      2,056
                                            -----------  ---------  -----------  ---------


  EBITDA from continuing operations (a)        $ 10,796   $ 15,321     $ 25,728   $ 32,109
                                            ===========  =========  ===========  =========

  (a) EBITDA from continuing operations represents net income adjusted for income taxes,
   interest, depreciation and amortization and income from discontinued operations. The
   Company believes EBITDA is an important supplemental measure of operating performance
   and uses it to assess performance and inform operating decisions. However EBITDA is not
   a GAAP financial measure. The Company's calculation of EBITDA should not be used as a
   substitute for GAAP measures of performance, including net cash provided by operations,
   operating income and net income. The Company's method of calculating EBITDA may vary
   substantially from the methods used by other companies and investors are cautioned not
   to rely unduly on it.


  GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES
  HIGHLIGHTS FROM CONDENSED CONSOLIDATED BALANCE SHEETS
  (in thousands)

                                                December
                                   June 30,       31,

                                     2010         2009
                                  -----------  ----------
  ASSETS                          (unaudited)
  Current assets:
   Cash and cash equivalents         $ 66,283   $ 103,220
   Restricted cash                      1,019       2,018
   Accounts receivable, net of
    allowance for doubtful
    accounts                           53,373      62,267
   Inventories                          4,666       4,659
   Costs and estimated earnings
    in excess of billings              38,653      31,518

   Other current assets                11,257      11,330
                                  -----------  ----------
     Total current assets             175,251     215,012

  Property, plant and equipment,
   net                                 12,545      12,945
  Other long-term assets               98,465     101,263


                                  -----------  ----------

     Total assets                   $ 286,261   $ 329,220
                                  ===========  ==========

  LIABILITIES AND STOCKHOLDERS'
   EQUITY
  Current liabilities:
   Current maturities of
    long-term debt                    $ 2,500    $ 40,692
   Accounts payable and accrued
    liabilities                        41,832      59,392
   Billings in excess of costs
    and estimated earnings             31,194      34,357
   Deferred revenue                        --       3,006

   Other current liabilities           14,091      11,363
                                  -----------  ----------
     Total current liabilities         89,617     148,810

  Long-term deferred tax
   liability                           14,768      14,768
  Other long-term liabilities           3,994       3,990
  Long-term debt, net of current
   maturities                          22,133      24,633
  Liabilities subject to
   compromise                             270         541
                                  -----------  ----------
     Total liabilities                130,782     192,742

  Stockholders' equity                155,479     136,478


                                  -----------  ----------
  Total liabilities and
   stockholders' equity             $ 286,261   $ 329,220
                                  ===========  ==========


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


                                                   Six Months Ended June
                                                           30,
                                                  ----------------------


                                                     2010         2009
                                                  -----------  ---------
                                                       (unaudited)

  Net cash provided by operating activities           $ 7,774   $ 43,756

  Net cash provided by (used in) investing
   activities                                             107    (1,074)

  Net cash used in financing activities              (40,996)   (17,240)


  Effect of exchange rate changes on cash             (3,822)        565
                                                  -----------  ---------


  Net change in cash and cash equivalents          $ (36,937)   $ 26,007
                                                  ===========  =========

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Global Power Equipment Group Inc.

CONTACT:  ICR
Jennifer Gordon
(918) 274-2280
investorrelations@globalpower.com

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