TPI Composites, Inc. Announces Selected, Preliminary Estimated Full Year 2019 Earnings Results and Guidance for 2020
February 07 2020 - 6:00AM
TPI Composites, Inc. (Nasdaq: TPIC), the only independent
manufacturer of composite wind blades with a global footprint,
today provided selected, preliminary estimated financial results
for the full year ended December 31, 2019 and guidance for the year
ending December 31, 2020.
2019 Selected, Preliminary Estimated Results -
For the full year ended December 31, 2019, we expect:
|
2019 Selected, Preliminary Estimated Results |
Prior Guidance for 2019 |
Net Sales |
$1.42 billion to $1.44 billion |
$1.45 billion to $1.5 billion |
Adjusted EBITDA |
$80 million to $85 million |
$80 million to $85 million |
Loss per Share |
$0.43 to $0.47 |
$0.18 to $0.23 |
The selected, preliminary estimated financial results set forth
are unaudited and should be considered preliminary and subject to
change. We have provided an estimate for the selected, preliminary
estimated results described above as our final results remain
subject to the completion of our closing procedures, final
adjustments, developments that may arise between now and the time
the financial results are finalized, and management’s and the audit
committee’s final reviews. Accordingly, you should not place undue
reliance on this preliminary data, which may differ materially from
our final results. These preliminary estimates should not be viewed
as a substitute for our full audited consolidated financial
statements prepared in accordance with U.S. generally accepted
accounting principles (GAAP). In addition, they are not necessarily
indicative of the results to be achieved in any future period.
These estimates have been prepared by and are the responsibility of
management. Our independent registered public accounting firm has
not audited, compiled, performed any procedures on or reviewed the
preliminary financial data, and accordingly does not express an
opinion or any other form of assurance with respect to the
preliminary financial data. We plan to report our full results for
the fourth quarter and full year ended December 31, 2019 on our
earnings call, which is scheduled for February 27, 2020.
Guidance for 2020 – For the full year ending
December 31, 2020, we expect:
2020 Guidance |
Net Sales |
$1.55 billion to $1.65 billion |
Adjusted EBITDA |
$100 million to $125 million |
Utilization1 |
80% to 85% |
Capacity (sets)2 |
4,380 |
Average Selling Price per Blade |
$140,000 to $145,000 |
Non-Blade Sales3 |
$75 million to $100 million |
Capital Expenditures |
$80 million to $90 million |
Startup Costs |
$17 million to $20 million |
- Utilization represents the percentage of wind blades invoiced
during the period compared to the total potential capacity of wind
blades based on the number of manufacturing lines installed at the
end of the period.
- Capacity (sets) represents the total potential of wind blade
sets (which consist of three wind blades) that can be invoiced
worldwide during the period at 100% utilization.
- Non-blade Sales represent sales of all products and services
other than the sale of wind blades, which includes sales of our
tooling for wind blades and other composite structures,
transportation products, wind blade field services and repairs and
engineering services.
Our guidance for 2020 excludes the potential impact of the
Coronavirus, which we expect will negatively affect our results of
operations for 2020. Our associates at our China
manufacturing facilities were on break in late January and early
February in observation of the Chinese New Year holiday. As a
result of the Coronavirus quarantine and movement restrictions
being imposed in China, we currently expect that most of our
Chinese associates will return to our Chinese manufacturing
facilities in late February and our production of our wind blades
will restart in early March. While we expect the impact of the
Coronavirus to be temporary, we cannot reasonably estimate the
overall impact to our operations given the fluidity of the
situation at this time. We will update our guidance for 2020
as the circumstances surrounding the Coronavirus stabilize and we
can reasonably assess its impact, including whether we can make up
a portion of the projected lost volume later in 2020.
Investor Day
On February 7, 2020, we will host an Investor
Day at The Maxwell Hotel in New York City and will be discussing,
among other things, selected, preliminary estimated results for the
year ended December 31, 2019 and our guidance for 2020. A copy of
the written materials that will be used at the Investor Day event,
including our guidance for 2020, is posted and available on our
website at www.tpicomposites.com under the tab “Investors.”
Interested investors and other parties may also listen to a
simultaneous webcast of the event by logging onto the Investor
Relations section of our website at www.tpicomposites.com.
About TPI Composites, Inc. TPI Composites, Inc.
is the only independent manufacturer of composite wind blades for
the wind energy market with a global manufacturing footprint. TPI
delivers high-quality, cost-effective composite solutions through
long term relationships with leading OEMs in the wind and
transportation markets. TPI is headquartered in Scottsdale, Arizona
and operates factories throughout the U.S., China, Mexico, Turkey
and India. TPI operates additional engineering development centers
in Denmark and Germany.
Forward Looking Statements This release
contains forward-looking statements which are made pursuant to safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements include statements, among
other things, concerning: our selected, preliminary estimated
results for the year ended December 31, 2019; our guidance for
2020; effects on our financial statements and our financial
guidance; our business strategy, including anticipated trends and
developments in and management plans for our business and the wind
industry and other markets in which we operate; our projected
annual revenue growth; competition; future financial results,
operating results, revenues, gross margin, operating expenses,
profitability, products, projected costs, warranties, our ability
to improve our operating margins, and capital expenditures. These
forward-looking statements are often characterized by the use of
words such as “estimate,” “expect,” “anticipate,” “project,”
“plan,” “intend,” “seek,” “believe,” “forecast,” “foresee,”
“likely,” “may,” “should,” “goal,” “target,” “might,” “will,”
“could,” “predict,” “continue” and the negative or plural of these
words and other comparable terminology. Forward-looking statements
are only predictions based on our current expectations and our
projections about future events. You should not place undue
reliance on these forward-looking statements. We undertake no
obligation to update any of these forward-looking statements for
any reason. These forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause our
actual results, levels of activity, performance or achievements to
differ materially from those expressed or implied by these
statements. These factors include, but are not limited to, the
matters discussed in “Risk Factors,” in our Annual Report on Form
10-K and other reports that we will file with the SEC.
Non-GAAP Definitions This press release
includes unaudited non-GAAP financial measures, including EBITDA
and adjusted EBITDA. We define EBITDA as net income plus interest
expense (including losses on extinguishment of debt and net of
interest income), income taxes and depreciation and amortization.
We define adjusted EBITDA as EBITDA plus share-based compensation
expense plus or minus any gains or losses from foreign currency
transactions, plus or minus any gains or losses from the sale of
assets and asset impairments. We present non-GAAP measures when we
believe that the additional information is useful and meaningful to
investors. Non-GAAP financial measures do not have any standardized
meaning and are therefore unlikely to be comparable to similar
measures presented by other companies. The presentation of non-GAAP
financial measures is not intended to be a substitute for, and
should not be considered in isolation from, the financial measures
reported in accordance with GAAP. See below for a reconciliation of
certain non-GAAP financial measures to the comparable GAAP measures
as well as a copy of the written materials that will be used at the
Investor Day event, which can be found in the Investors section at
www.tpicomposites.com.
Investor Relations 480-315-8742
investors@TPIComposites.com
Non-GAAP Reconciliation(unaudited)
A reconciliation of the low end and high end ranges of projected
net income (loss) to projected EBITDA and projected adjusted EBITDA
for the full years 2019 and 2020 is as follows:
|
|
|
|
|
|
|
|
|
|
|
2019 Preliminary Estimated Results Range
(1) |
|
2020 Guidance Range (1) |
($ in thousands) |
|
Low End |
High End |
|
Low End |
High End |
Projected net income (loss) |
|
$ |
(16,500 |
) |
$ |
(15,000 |
) |
|
$ |
16,000 |
$ |
26,000 |
Adjustments: |
|
|
|
|
|
|
Projected depreciation and amortization |
|
|
38,500 |
|
|
39,000 |
|
|
|
50,000 |
|
55,000 |
Projected interest expense (net of interest income) |
|
|
8,000 |
|
|
8,300 |
|
|
|
11,000 |
|
13,000 |
Projected income tax provision |
|
|
22,500 |
|
|
23,500 |
|
|
|
10,000 |
|
15,000 |
Projected EBITDA |
|
|
52,500 |
|
|
55,800 |
|
|
|
87,000 |
|
109,000 |
Projected share-based compensation expense |
|
|
5,500 |
|
|
5,900 |
|
|
|
5,000 |
|
6,000 |
Projected realized loss on foreign currency remeasurement |
|
4,000 |
|
|
4,300 |
|
|
|
- |
|
- |
Projected realized loss on sale of assets and asset
impairments |
|
|
|
18,000 |
|
|
19,000 |
|
|
|
8,000 |
|
10,000 |
Projected Adjusted EBITDA |
|
$ |
80,000 |
|
$ |
85,000 |
|
|
$ |
100,000 |
$ |
125,000 |
|
|
|
|
|
|
|
|
(1) All figures presented are projected estimates for the full
years ending December 31, 2019 and 2020.
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