AETI Announces Q1 results
May 15 2017 - 7:00AM
American Electric Technologies, Inc. (NASDAQ:AETI), a leading
supplier of power delivery solutions for the global energy
industry, today announced its first quarter 2017 financial results.
The company reported quarter ending backlog of
$26.6 million, the company’s second highest backlog ever reported
and the highest since Q3 2014.
For the quarter, the company reported revenue of
$8.0 million, down 14% from Q4 and 3% from the $8.3 million revenue
reported in Q1 2016. The revenue decrease was primarily
related to the general oil & gas market conditions combined
with the seasonality of our services business and the impact of the
significant backlog growth reported was not reflected in revenues
in Q1.
Based on the reduced revenue level, the Company
reported an EBITDA loss (a non-U.S. GAAP measure) of $2.2 million
for the quarter, compared with an EBITDA loss of $1.4 million in Q4
2016 and improved from the EBITDA loss of $2.7 million in Q1 of
2016.
“We were pleased with the strong increased
bookings and the refinancing of our credit facility in Q1. However,
our markets continue to be very challenging and liquidity remains
tight,” said Charles Dauber, AETI president and chief executive
officer. “Although our Q1 revenues were below our break-even level,
the projects that comprise our backlog will commence being
recognized for revenue starting in Q2.”
The 97% backlog growth compared with Q4 2016
ending backlog was primarily driven by orders in the midstream and
downstream oil & gas and power generation markets. The Company
previously announced project awards in the quarter including a $5M
break-in win at a top 5 largest Engineering, Procurement and
Construction firm for a new chemical plant project, and a $6M
contract with a leading midstream operator to enhance electrical
safety for their Permian Crude Pipeline and Terminal projects using
the company’s IntelliSafe™ arc-resistant switchgear.
On March 27th, the company announced it has
closed on a new $7.0M credit facility with Hunting Dog Capital of
San Francisco. This new credit facility will be used to refinance
existing debt and for general corporate purposes.
Conference Call AETI will
conduct a conference call at 11 a.m. EDT on May 15, 2017 to discuss
the results with analysts, investors and other interested parties.
Individuals who wish to participate in the conference call should
dial 866-454-4207 passcode 934089, in the United States and
Canada. International callers should dial +1 913-312-9312
passcode 934089.
American Electric Technologies,
Inc. (NASDAQ:AETI) is a leading provider of power delivery
solutions to the global energy industry. AETI offers M&I
Electric™ power distribution and control products, electrical
services, and construction services.
AETI is headquartered in Houston and has global
sales, support and manufacturing operations in Beaumont, Texas and
Houma, Louisiana; and Rio de Janeiro, Macaé and Belo Horizonte,
Brazil. In addition, AETI has minority interests in two joint
ventures, which have facilities located in Xian, China and
Singapore. AETI's SEC filings, news and product/service information
are available at www.aeti.com.
Forward Looking StatementsThis
press release contains forward-looking statements, as defined in
Section 27A of the Securities Exchange Act of 1934, concerning
anticipated future domestic and international demand for our
products, and other future plans and objectives. While the Company
believes that such forward-looking statements are based on
reasonable assumptions, there can be no assurance that such future
revenues, profits, plans and objectives will be achieved on
schedule or in the amounts indicated. Investors are cautioned that
these forward-looking statements are not guarantees of future
performance. Actual events or results may differ from the Company’s
expectations, and are subject to various risks and uncertainties,
including those listed in Item 1A of the Form 10-K filed with the
Securities and Exchange Commission on March 30, 2017. The Company
assumes no obligation to publicly update or revise its
forward-looking statements even if experience or future events make
it clear that any of the projected results expressed or implied
herein will not be realized.
American Electric Technologies, Inc. and
Subsidiaries |
|
Condensed Consolidated Balance
Sheets |
|
(in thousands, except share and per share
data) |
|
|
|
|
|
|
|
March 31, 2017 |
|
December 31, |
|
|
(unaudited) |
|
|
2016 |
|
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
$ |
1,559 |
|
|
$ |
1,618 |
|
|
Restricted short-term investments |
|
507 |
|
|
|
507 |
|
|
Accounts
receivable-trade, net of allowance of $ and $204 at March 31,
2017 and December 31, 2016 |
|
5,110 |
|
|
|
6,717 |
|
|
|
|
|
|
|
|
|
|
|
Inventories, net of allowance of $134 and $60 at March 31,
2017 and December 31, 2016 |
|
958 |
|
|
|
1,181 |
|
|
Cost and
estimated earnings in excess of billings on uncompleted
contracts |
|
6,170 |
|
|
|
5,829 |
|
|
Prepaid
expenses and other current assets |
|
422 |
|
|
|
349 |
|
|
Total
current assets |
|
14,726 |
|
|
|
16,201 |
|
|
Property, plant and
equipment, net |
|
7,187 |
|
|
|
7,298 |
|
|
Advances to and
investments in foreign joint ventures |
|
10,730 |
|
|
|
10,663 |
|
|
Retainage
receivable |
|
649 |
|
|
|
649 |
|
|
Intangibles |
|
510 |
|
|
|
527 |
|
|
Other assets |
|
74 |
|
|
|
46 |
|
|
Total assets |
$ |
33,876 |
|
|
$ |
35,384 |
|
|
Liabilities, Convertible Preferred Stock and Stockholders’
Equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Revolving
line of credit |
$ |
- |
|
|
$ |
1,500 |
|
|
Current
portion of long-term note payable |
|
500 |
|
|
|
300 |
|
|
Accounts
payable and other accrued expenses |
|
9,001 |
|
|
|
9,798 |
|
|
Accrued
payroll and benefits |
|
1,018 |
|
|
|
1,093 |
|
|
Billings
in excess of costs and estimated earnings on uncompleted
contracts |
|
716 |
|
|
|
208 |
|
|
Total
current liabilities |
|
11,235 |
|
|
|
12,899 |
|
|
Long-term note
payable |
|
6,166 |
|
|
|
3,900 |
|
|
Deferred
compensation |
|
248 |
|
|
|
260 |
|
|
Deferred income
taxes |
|
2,864 |
|
|
|
2,824 |
|
|
Total liabilities |
|
20,513 |
|
|
|
19,883 |
|
|
Convertible preferred
stock: |
|
|
|
|
Redeemable convertible preferred stock, Series A, net of discount
of $631 at March 31, 2017 and $671 at December 31, 2016;
$0.001 par value, 1,000,000 shares authorized, issued and
outstanding at March 31, 2017 and December 31, 2016 |
|
4,396 |
|
|
|
4,383 |
|
|
Stockholders’
equity: |
|
|
|
|
Common
stock; $0.001 par value, 50,000,000 shares authorized, 8,480,118
and 8,499,508 shares issued and 8,292,753 and 8,335,968 shares
outstanding at March 31, 2017 and December 31, 2016 |
|
8 |
|
|
|
8 |
|
|
Treasury
stock, at cost 145,877 shares at March 31, 2017 and 131,928
shares at December 31, 2016 |
|
(863 |
) |
|
|
(863 |
) |
|
Additional paid-in capital |
|
13,005 |
|
|
|
12,613 |
|
|
Accumulated other comprehensive income |
|
39 |
|
|
|
(2 |
) |
|
Retained
earnings; including accumulated statutory reserves in equity method
investments of $2,809 and $2,887 at March 31, 2017 and
December 31, 2016 |
|
(3,222 |
) |
|
|
(638 |
) |
|
Total
stockholders’ equity |
|
8,967 |
|
|
|
11,118 |
|
|
Total liabilities, convertible preferred stock and
stockholders’ equity |
$ |
33,876 |
|
|
$ |
35,384 |
|
|
|
|
|
|
|
American Electric Technologies, Inc. and
Subsidiaries |
Condensed Consolidated Statements of
Operations |
Unaudited |
(in thousands, except share and per share
data) |
|
|
|
|
|
Three Months Ended March
31, |
|
|
2017 |
|
|
|
2016 |
|
Net sales |
$ |
8,030 |
|
|
$ |
8,298 |
|
Cost of sales |
|
8,586 |
|
|
|
8,207 |
|
Gross margin |
|
(556 |
) |
|
|
91 |
|
Operating
expenses: |
|
|
|
Research and
development |
|
104 |
|
|
|
523 |
|
Selling and
marketing |
|
611 |
|
|
|
876 |
|
General and
administrative |
|
1,094 |
|
|
|
1,346 |
|
Total operating
expenses |
|
1,809 |
|
|
|
2,745 |
|
Income (loss) from
operations |
|
(2,365 |
) |
|
|
(2,654 |
) |
Net equity income
(loss) from foreign joint ventures’ operations: |
|
|
|
Equity income (loss)
from foreign joint ventures’ operations |
|
52 |
|
|
|
(195 |
) |
Foreign joint ventures’
operations related expenses |
|
(64 |
) |
|
|
(51 |
) |
Net equity loss from
foreign joint ventures’ operations |
|
(12 |
) |
|
|
(246 |
) |
Loss from operations
and net equity income from foreign joint ventures’ operations |
|
(2,377 |
) |
|
|
(2,900 |
) |
Other income
(expense): |
|
|
|
Interest expense and
other, net |
|
(100 |
) |
|
|
(39 |
) |
Loss before income
taxes |
|
(2,477 |
) |
|
|
(2,939 |
) |
Provision for (benefit
from) income taxes |
|
18 |
|
|
|
(56 |
) |
Net loss before
dividends on redeemable convertible preferred stock |
|
(2,495 |
) |
|
|
(2,883 |
) |
Dividends on redeemable
convertible preferred stock |
|
(89 |
) |
|
|
(88 |
) |
Net loss attributable
to common stockholders |
$ |
(2,584 |
) |
|
$ |
(2,971 |
) |
Earnings (loss) per
common share: |
|
|
|
Basic |
$ |
(0.31 |
) |
|
$ |
(0.36 |
) |
Diluted |
$ |
(0.31 |
) |
|
$ |
(0.36 |
) |
Weighted
- average number of common shares outstanding: |
|
|
|
Basic |
|
8,337,119 |
|
|
|
8,263,223 |
|
Diluted |
|
8,337,119 |
|
|
|
8,263,223 |
|
|
|
|
|
American Electric Technologies, Inc. and
Subsidiaries |
|
Non-GAAP Financial Measures and
Reconciliations |
|
Computation of Earnings on Continuing
Operations, Including Net Equity Income from Foreign Joint
Ventures, Before Interest, |
|
Dividends, Taxes, Depreciation and Amortization
("EBITDA") |
|
Unaudited |
|
(in thousands) |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2017 |
|
|
|
2016 |
|
|
Net
income (loss) attributable to common stockholders |
$ |
(2,584 |
) |
|
$ |
(2,971 |
) |
|
Add: Depreciation and
amortization |
|
218 |
|
|
|
221 |
|
|
Interest
expense |
|
100 |
|
|
|
45 |
|
|
Provision
for (benefit from) income taxes |
|
18 |
|
|
|
(56 |
) |
|
Dividend
on redeemable preferred stock |
|
89 |
|
|
|
88 |
|
|
EBITDA |
$ |
(2,159 |
) |
|
$ |
(2,673 |
) |
|
|
|
|
|
|
The Company is disclosing EBITDA, which is a non-GAAP measure,
because it is used by management and provided to investors to
provide comparability of underlying operational results. For more
discussion of the use and limitations of EBITDA, see the 2016
10-K which was filed on March 30, 2017. |
|
|
|
|
|
|
Investor Contact:
American Electric Technologies, Inc.
Bill Brod
713-644-8182
investorrelations@aeti.com
American Electric Techno... (NASDAQ:AETI)
Historical Stock Chart
From Mar 2024 to Apr 2024
American Electric Techno... (NASDAQ:AETI)
Historical Stock Chart
From Apr 2023 to Apr 2024