AMSC (NASDAQ:AMSC), a global solutions provider serving wind and
power grid industry leaders, today reported financial results for
its fourth quarter and full year fiscal 2015 ended March 31, 2016.
Revenues for the fourth quarter of fiscal 2015 were $27.5
million, compared with $25.1 million for the same period of fiscal
2014. The year over year increase in revenues was due primarily to
higher Grid segment revenues in the fourth quarter of fiscal
2015.
AMSC’s net loss for the fourth quarter of fiscal 2015 was $3.4
million, or $0.25 per share, compared to $3.4 million, or $0.36 per
share, for the same period of fiscal 2014. Fourth quarter fiscal
2014 net loss included a gain of $2.2 million related to the
reversal of legal expenses associated with the settlement of a
dispute with a former insurer, and a gain of $1.2 million related
to the final settlement of an arbitration proceeding with a former
customer.
The Company’s non-GAAP net loss for the fourth quarter of fiscal
2015 was $3.8 million, or $0.28 per share, compared with a non-GAAP
net loss of $6.4 million, or $0.69 per share, in the same period of
fiscal 2014. Please refer to the financial table below for a
reconciliation of GAAP to non-GAAP results.
Revenues for the full year fiscal 2015 were $96.0 million as
compared to $70.5 million in fiscal year 2014. The full year growth
in revenues was driven by growth in both business units. AMSC
reported a net loss for full year fiscal 2015 of $23.1 million, or
$1.76 per share, compared to a net loss of $48.7 million, or $5.74
per share, for fiscal year 2014. The Company's non-GAAP net loss
for full year fiscal 2015 was $26.2 million, or $1.99 per share,
compared with a non-GAAP net loss of $39.6 million, or $4.67 per
share, for fiscal year 2014.
Cash, cash equivalents, and restricted cash at March 31, 2016
increased to $40.7 million, compared with $37.7 million at December
31, 2015.
“Fiscal year 2015 was a year of strong revenue growth in both
business units, and improved financial health for our company,”
said Daniel P. McGahn, President and CEO, AMSC. “I am very pleased
to report that our team here at AMSC delivered results beyond my
expectations. As a result, we enter fiscal 2016 with a stronger
balance sheet and improved longer-term prospects in both our Wind
and Grid businesses.”
Business Outlook “First quarter revenues will
be negatively impacted by historical seasonality in our revenues
from Inox, compounded by what has been described by Inox as a
near-term working capital constraint,” added McGahn. For the
first quarter ending June 30, 2016, AMSC expects that its revenues
will be in the range of $12 million to $14 million. The Company’s
net loss for the first quarter of fiscal 2016 is expected to be
less than $13.0 million, or $0.94 per share. AMSC expects that its
non-GAAP net loss (as defined below) for the first quarter of
fiscal 2016 will be less than $12.5 million, or $0.90 per
share. “Based on discussions with our customers, revenues in
our Wind segment are currently expected to return to a more normal
level in the second fiscal quarter,” said McGahn.
Conference Call Reminder In conjunction with
this announcement, AMSC management will participate in a conference
call with investors beginning at 10:00 a.m. Eastern Time today to
discuss the Company’s results and its business outlook. Those who
wish to listen to the live or archived conference call webcast
should visit the “Investors” section of the Company’s website at
http://www.amsc.com/investors. The live call also can be accessed
by dialing 719-457-2689 and using conference ID 5408475.
About AMSC (NASDAQ:AMSC) AMSC generates the
ideas, technologies and solutions that meet the world’s demand for
smarter, cleaner … better energy™. Through its Windtec™ Solutions,
AMSC provides wind turbine electronic controls and systems, designs
and engineering services that reduce the cost of wind energy.
Through its Gridtec™ Solutions, AMSC provides the engineering
planning services and advanced grid systems that optimize network
reliability, efficiency and performance. The Company’s solutions
are now powering gigawatts of renewable energy globally and are
enhancing the performance and reliability of power networks in more
than a dozen countries. Founded in 1987, AMSC is headquartered near
Boston, Massachusetts with operations in Asia, Australia, Europe
and North America. For more information, please visit
www.amsc.com.
AMSC, Windtec, Gridtec, and Smarter, Cleaner … Better Energy are
trademarks or registered trademarks of American Superconductor
Corporation. All other brand names, product names, trademarks or
service marks belong to their respective holders.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”). Any statements in this release
about our expectations regarding anticipated financial results,
future revenues in our Wind segment and other statements containing
the words “believes,” “anticipates,” “plans,” “expects,” “will” and
similar expressions, constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Such forward-looking statements represent management’s
current expectations and are inherently uncertain. There are a
number of important factors that could materially impact the value
of our common stock or cause actual results to differ materially
from those indicated by such forward-looking statements.
These important factors, which are discussed under the caption
“Risk Factors” in Part 1. Item 1A of our Form 10-K for the fiscal
year ended March 31, 2016, and our other reports filed with the
SEC, among others, could cause actual results to differ materially
from those indicated by forward-looking statements made herein and
presented elsewhere by management from time to time. Any such
forward-looking statements represent management’s estimates as of
the date of this press release. While we may elect to update such
forward-looking statements at some point in the future, we disclaim
any obligation to do so, even if subsequent events cause our views
to change. These forward-looking statements should not be relied
upon as representing our views as of any date subsequent to the
date of this press release.
UNAUDITED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(In thousands, except per share
data) |
|
|
|
|
|
|
|
|
|
Three months ended |
|
Years ended |
|
March 31, |
|
March 31, |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
Wind |
$ |
19,907 |
|
|
$ |
21,063 |
|
|
$ |
68,883 |
|
|
$ |
51,307 |
|
Grid |
|
7,618 |
|
|
|
4,066 |
|
|
|
27,140 |
|
|
|
19,223 |
|
Total revenues |
|
27,525 |
|
|
|
25,129 |
|
|
|
96,023 |
|
|
|
70,530 |
|
|
|
|
|
|
|
|
|
Cost of
revenues |
|
18,284 |
|
|
|
23,488 |
|
|
|
74,041 |
|
|
|
67,442 |
|
|
|
|
|
|
|
|
|
Gross profit |
|
9,241 |
|
|
|
1,641 |
|
|
|
21,982 |
|
|
|
3,088 |
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Research and
development |
|
3,379 |
|
|
|
2,886 |
|
|
|
12,303 |
|
|
|
11,878 |
|
Selling, general
and administrative |
|
7,530 |
|
|
|
5,682 |
|
|
|
28,861 |
|
|
|
29,217 |
|
Arbitration
award expense |
|
— |
|
|
|
(1,201 |
) |
|
|
— |
|
|
|
8,987 |
|
Restructuring
and impairments |
|
— |
|
|
|
(50 |
) |
|
|
779 |
|
|
|
5,366 |
|
Amortization of
acquisition related intangibles |
|
39 |
|
|
|
39 |
|
|
|
157 |
|
|
|
157 |
|
Total operating
expenses |
|
10,948 |
|
|
|
7,356 |
|
|
|
42,100 |
|
|
|
55,605 |
|
|
|
|
|
|
|
|
|
Operating loss |
|
(1,707 |
) |
|
|
(5,715 |
) |
|
|
(20,118 |
) |
|
|
(52,517 |
) |
|
|
|
|
|
|
|
|
Change in fair value of
derivatives and warrants |
|
(637 |
) |
|
|
915 |
|
|
|
(228 |
) |
|
|
3,963 |
|
Gain on sale of
minority interests |
|
581 |
|
|
|
— |
|
|
|
3,092 |
|
|
|
— |
|
Interest expense,
net |
|
(196 |
) |
|
|
(327 |
) |
|
|
(1,037 |
) |
|
|
(1,882 |
) |
Other (expense) income,
net |
|
(1,268 |
) |
|
|
1,216 |
|
|
|
(2,457 |
) |
|
|
1,596 |
|
|
|
|
|
|
|
|
|
Loss before income tax
expense |
|
(3,227 |
) |
|
|
(3,911 |
) |
|
|
(20,748 |
) |
|
|
(48,840 |
) |
|
|
|
|
|
|
|
|
Income tax expense
(benefit) |
|
135 |
|
|
|
(546 |
) |
|
|
2,391 |
|
|
|
(184 |
) |
|
|
|
|
|
|
|
|
Net loss |
$ |
(3,362 |
) |
|
$ |
(3,365 |
) |
|
$ |
(23,139 |
) |
|
$ |
(48,656 |
) |
|
|
|
|
|
|
|
|
Net loss per common
share |
|
|
|
|
|
|
|
Basic |
$ |
(0.25 |
) |
|
$ |
(0.36 |
) |
|
$ |
(1.76 |
) |
|
$ |
(5.74 |
) |
Diluted |
$ |
(0.25 |
) |
|
$ |
(0.36 |
) |
|
$ |
(1.76 |
) |
|
$ |
(5.74 |
) |
|
|
|
|
|
|
|
|
Weighted average number
of common shares outstanding |
|
|
|
|
|
|
|
Basic |
|
13,559 |
|
|
|
9,235 |
|
|
|
13,178 |
|
|
|
8,477 |
|
Diluted |
|
13,559 |
|
|
|
9,235 |
|
|
|
13,178 |
|
|
|
8,477 |
|
UNAUDITED CONSOLIDATED BALANCE
SHEETS |
(In thousands) |
|
March 31, |
|
March 31, |
|
2016 |
|
2015 |
ASSETS |
|
|
|
Current
assets: |
|
|
|
Cash and cash
equivalents |
$ |
39,330 |
|
|
$ |
20,490 |
|
Accounts receivable,
net |
|
19,264 |
|
|
|
9,879 |
|
Inventory |
|
18,512 |
|
|
|
20,596 |
|
Prepaid expenses and
other current assets |
|
5,778 |
|
|
|
10,764 |
|
Restricted cash |
|
457 |
|
|
|
2,822 |
|
Total current
assets |
|
83,341 |
|
|
|
64,551 |
|
|
|
|
|
Property,
plant and equipment, net |
|
49,778 |
|
|
|
56,097 |
|
Intangibles, net |
|
854 |
|
|
|
1,422 |
|
Restricted cash |
|
934 |
|
|
|
1,236 |
|
Deferred tax assets |
|
96 |
|
|
|
7,766 |
|
Other assets |
|
315 |
|
|
|
2,753 |
|
Total assets |
$ |
135,318 |
|
|
$ |
133,825 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
Accounts payable and
accrued expenses |
$ |
23,156 |
|
|
$ |
21,615 |
|
Note payable, current
portion, net of discount of $42 as of March 31, 2016 and $244 as of
March 31, 2015 |
|
2,624 |
|
|
|
3,756 |
|
Derivative
liabilities |
|
3,227 |
|
|
|
2,999 |
|
Deferred revenue |
|
12,000 |
|
|
|
11,019 |
|
Deferred tax
liabilities |
— |
|
|
7,843 |
|
Total current
liabilities |
|
41,007 |
|
|
|
47,232 |
|
|
|
|
|
|
|
|
|
Note payable, net of
discount of $133 as of March 31, 2016 and $290 as of March 31,
2015 |
|
1,367 |
|
|
|
3,877 |
|
Deferred revenue |
|
9,269 |
|
|
|
2,756 |
|
Deferred tax
liabilities |
|
63 |
|
|
— |
Other liabilities |
|
63 |
|
|
|
67 |
|
Total liabilities |
|
51,769 |
|
|
|
53,932 |
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
Common stock, $0.01
par value, 75,000,000 shares authorized; 14,107,126 and 9,624,275
shares issued at March 31, 2016 and 2015, respectively |
|
141 |
|
|
|
96 |
|
Additional paid-in
capital |
|
1,011,813 |
|
|
|
985,921 |
|
|
|
|
|
|
|
|
|
Treasury stock, at
cost, 51,506 and 34,067 shares at March 31, 2016 and 2015,
respectively |
|
(881 |
) |
|
|
(771 |
) |
Accumulated other
comprehensive income (loss) |
|
660 |
|
|
|
(308 |
) |
Accumulated
deficit |
|
(928,184 |
) |
|
|
(905,045 |
) |
Total stockholders'
equity |
|
83,549 |
|
|
|
79,893 |
|
|
|
|
|
Total liabilities and
stockholders' equity |
$ |
135,318 |
|
|
$ |
133,825 |
|
|
|
|
|
UNAUDITED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(In thousands) |
|
|
|
Years ended March 31 |
|
|
|
|
2016 |
|
2015 |
|
Cash flows
from operating activities: |
|
|
|
|
|
Net
loss |
$ |
(23,139 |
) |
|
$ |
(48,656 |
) |
|
|
Adjustments
to reconcile net loss to net cash used in operations: |
|
|
|
|
|
|
Depreciation and amortization |
|
7,972 |
|
|
|
9,554 |
|
|
|
|
Stock-based
compensation expense |
|
3,248 |
|
|
|
5,936 |
|
|
|
|
Impairment
of minority interest investments |
|
746 |
|
|
|
3,464 |
|
|
|
|
Provision
for excess and obsolete inventory |
|
2,713 |
|
|
|
1,386 |
|
|
|
|
Write-off
prepaid taxes |
|
289 |
|
|
|
|
|
— |
|
|
|
|
Gain on
sale from minority interest investments |
|
(3,092 |
) |
|
|
|
|
— |
|
|
|
|
Loss from
minority interest investment |
|
356 |
|
|
|
743 |
|
|
|
|
Change in
fair value of derivatives and warrants |
|
228 |
|
|
|
(3,963 |
) |
|
|
|
Reversal of
Catlin legal costs |
|
— |
|
|
|
(2,220 |
) |
|
|
|
Non-cash
interest expense |
|
359 |
|
|
|
566 |
|
|
|
|
Other
non-cash items |
|
1,462 |
|
|
|
(2,436 |
) |
|
|
|
Changes in
operating asset and liability accounts: |
|
|
|
|
|
|
|
Accounts
receivable |
|
(9,318 |
) |
|
|
(2,677 |
) |
|
|
|
|
Inventory |
|
(782 |
) |
|
|
(1,887 |
) |
|
|
|
|
Prepaid expenses and
other current assets |
|
5,608 |
|
|
|
(2,330 |
) |
|
|
|
|
Accounts payable and
accrued expenses |
|
1,543 |
|
|
|
5,579 |
|
|
|
|
|
Deferred revenue |
|
7,248 |
|
|
|
4,265 |
|
|
|
Net
cash used in operating activities |
|
(4,559 |
) |
|
|
(32,676 |
) |
|
|
|
|
|
|
|
|
Cash flows
from investing activities: |
|
|
|
|
|
Net
cash provided by investing activities |
|
4,873 |
|
|
|
1,809 |
|
|
|
|
|
|
|
|
|
Cash flows
from financing activities: |
|
|
|
|
|
Net
cash provided by financing activities |
|
18,202 |
|
|
|
8,783 |
|
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash and cash equivalents |
|
324 |
|
|
|
(540 |
) |
|
|
|
|
|
|
|
|
Net
increase/(decrease) in cash and cash equivalents |
|
18,840 |
|
|
|
(22,624 |
) |
|
Cash and
cash equivalents at beginning of year |
|
20,490 |
|
|
|
43,114 |
|
|
Cash and
cash equivalents at end of period |
$ |
39,330 |
|
|
$ |
20,490 |
|
|
RECONCILIATION OF GAAP NET INCOME (LOSS) TO
NON-GAAP NET INCOME (LOSS) |
(In thousands, except per share
data) |
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Years ended |
March 31, |
March 31, |
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
Net
loss |
$ |
(3,362 |
) |
|
$ |
(3,365 |
) |
|
$ |
(23,139 |
) |
|
$ |
(48,656 |
) |
Gain on
sale of interest in minority investments, net of tax effect |
|
(565 |
) |
|
|
— |
|
|
|
(2,919 |
) |
|
|
— |
|
Stock-based
compensation |
|
706 |
|
|
|
1,316 |
|
|
|
3,248 |
|
|
|
5,936 |
|
Arbitration
award expense |
|
— |
|
|
|
(1,201 |
) |
|
|
— |
|
|
|
8,987 |
|
Amortization of acquisition-related intangibles |
|
39 |
|
|
|
39 |
|
|
|
157 |
|
|
|
157 |
|
Restructuring and impairment charges |
|
— |
|
|
|
(50 |
) |
|
|
779 |
|
|
|
5,366 |
|
Consumption
of zero cost-basis inventory |
|
(1,348 |
) |
|
|
(2,272 |
) |
|
|
(4,960 |
) |
|
|
(7,982 |
) |
Change of
fair value of derivatives and warrants |
|
637 |
|
|
|
(915 |
) |
|
|
228 |
|
|
|
(3,963 |
) |
Non-cash
interest expense |
|
69 |
|
|
|
76 |
|
|
|
359 |
|
|
|
566 |
|
Non-GAAP
net loss |
$ |
(3,824 |
) |
|
$ |
(6,372 |
) |
|
$ |
(26,247 |
) |
|
$ |
(39,589 |
) |
|
|
|
|
|
|
|
|
|
Non-GAAP
loss per share |
$ |
(0.28 |
) |
|
$ |
(0.69 |
) |
|
$ |
(1.99 |
) |
|
$ |
(4.67 |
) |
Weighted
average shares outstanding |
|
13,559 |
|
|
|
9,235 |
|
|
|
13,178 |
|
|
|
8,477 |
|
Reconciliation of Forecast GAAP Net Loss to
Non-GAAP Net Loss |
(In millions, except per share
data) |
|
|
Three months ending |
June 30, 2016 |
Net loss |
$ |
(13.0 |
) |
Stock-based
compensation |
|
0.7 |
|
Non-cash interest
expense |
|
0.1 |
|
Consumption of
zero-cost inventory |
|
(0.3 |
) |
Non-GAAP net loss |
$ |
(12.5 |
) |
Non-GAAP net loss per
share |
$ |
(0.90 |
) |
Shares outstanding |
|
13.9 |
|
Note: Non-GAAP net loss is defined by the Company as net loss
before stock-based compensation; amortization of
acquisition-related intangibles; consumption of zero cost-basis
inventory; non-cash interest expense; change in fair value of
derivatives and warrants; and other unusual charges, net of
any tax effects related to these items. The Company believes
non-GAAP net loss assists management and investors in comparing the
Company’s performance across reporting periods on a consistent
basis by excluding these non-cash, non-recurring or other charges
that it does not believe are indicative of its core operating
performance. The Company also regards non-GAAP net loss as a useful
measure of operating performance to complement operating loss, net
loss and other GAAP financial performance measures. In addition,
the Company uses non-GAAP net loss as a factor in evaluating
management’s performance when determining incentive compensation
and to evaluate the effectiveness of its business strategies.
Generally, a non-GAAP financial measure is a numerical measure
of a company's performance, financial position or cash flow that
either excludes or includes amounts that are not normally excluded
or included in the most directly comparable measure calculated and
presented in accordance with GAAP. The non-GAAP measures included
in this release, however, should be considered in addition to, and
not as a substitute for or superior to, operating income, cash
flows, or other measures of financial performance prepared in
accordance with GAAP. A reconciliation of non-GAAP to GAAP net loss
is set forth in the table above.
AMSC Contact:
Brion D. Tanous
Phone: 424-634-8592
Email: Brion.Tanous @ amsc.com
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