AETI announces 2015 Q4 and year-end results
HOUSTON, March 30, 2016 (GLOBE NEWSWIRE) -- American Electric Technologies, Inc. (NASDAQ:AETI), a leading supplier of power delivery solutions for the global energy industry, today announced its 2015 fourth quarter and fiscal year financial results.
The Company reported Q4 consolidated revenues of $7.7 million, down from $13.8 million in the 3rd quarter and down from $13.7 million in Q4 2014. For the full year, the Company reported revenues of $49.1 million, down 14% from $57.3 million in 2014. This revenue level was driven by the Company’s previously announced backlog heading into Q4 of $8.84 million, down from the $16.51 million heading into the third quarter due to reduced spending in the oil and gas markets and a $4.0 million project cancellation of an oil-related onshore production project with a major oil company.
While the company reduced its fixed indirect costs in the quarter, the lower revenues coupled with adjustments to deferred tax liabilities from international operations and several other non-cash write-downs resulted in a $3.7 million net loss attributable to common shareholders for the quarter and a $2.9 million net loss attributable to common shareholders for the 2015 fiscal year.
The Company reported a Q4 ending backlog of $19.0 million, its highest quarter-end backlog since Q4 2014. The primary driver of the backlog increase came from orders received in the power generation and distribution market sector, which represented $10.7 million or 56% of total backlog. This is the highest power generation sector backlog in the Company’s history and underscores the Company’s moves to offset reduced oil & gas sector demand levels with other market sectors.
“Our reduced backlog level at the end of Q3 lead to lower Q4 revenues that drove operating income down by approximately $1.8M, and when combined with almost $1.5M of non-cash expenses, resulted in the company’s loss for the quarter,” said Charles Dauber, AETI president and chief executive officer. “The power generation orders we booked in Q4 enabled us to show an increased backlog but the financial impact of those orders won’t be reflected until 2016.”
During the quarter, the Company closed on an $8.5 million credit facility with Frost Bank of Texas which will be used for general corporate purposes including providing the Company with the liquidity and flexibility to execute our growth strategy.
The Company’s subsidiary M&I Electric Brazil reported annual revenues of over $3M and was profitable in its first full year of operation. The Company’s international joint ventures in China and Singapore reported net equity income after expenses of $0.03 million for Q4 and $0.35 million for the full year 2015.
Basic earnings per share for the Company were ($0.45) for the quarter, down from $0.01 in Q3 of 2015 and down from a loss of ($0.25) in the fourth quarter of 2014. For the full year, basic earnings per share for the Company were ($0.36), up from ($0.62) in 2014.
The Company reported EBITDA, a non-U.S. GAAP measure, from continuing operations of ($2.8) million for the quarter, down from $0.4 million in Q3 2015 and ($2.0) million in Q4 of 2014. A reconciliation of this non-GAAP measure to our net income is set forth in the selected financial information below. For the full year, the Company reported EBITDA of ($1.1) million, up from ($1.5) million in 2014.
Conference Call
AETI will conduct a conference call on March 30, 2016 at 10 a.m. EDT to discuss the results with analysts, investors and other interested parties. Individuals who wish to participate in the conference call should dial 800-795-1259, in the United States and Canada. International callers should dial +1-785-832-0301. The passcode is 320318.
American Electric Technologies, Inc. (NASDAQ:AETI) is a leading provider of power delivery solutions to the global energy industry.
AETI is headquartered in Houston and has global sales, support and manufacturing operations in Beaumont, Texas; Bay St. Louis, Mississippi; and Macaé and Rio de Janeiro, 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 Statements
This 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, expected improvement in profitability, 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 the 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 31, 2015. 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 Statements of Operations | |||||||||||||||
| Unaudited | |||||||||||||||
| (in thousands, except share and per share data, percentages calculated on total sales) | |||||||||||||||
| For the Three Months Ended December 31, | For the Twelve Months Ended December 31, | ||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Net sales | $ | 7,690 | $ | 13,693 | $ | 49,083 | $ | 57,254 | |||||||
| Cost of sales | 7,988 | 13,656 | 42,493 | 52,259 | |||||||||||
| Gross profit | (298 | ) | 37 | 6,590 | 4,995 | ||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 265 | 156 | 769 | 807 | |||||||||||
| Selling and marketing | 738 | 667 | 2,380 | 2,517 | |||||||||||
| General and administrative | 1,736 | 1,571 | 5,782 | 5,566 | |||||||||||
| Total operating expenses | 2,739 | 2,394 | 8,931 | 8,890 | |||||||||||
| Income (loss) from consolidated continuing operations | (3,037 | ) | (2,357 | ) | (2,341 | ) | (3,895 | ) | |||||||
| Net equity income from foreign joint ventures’ operations: | |||||||||||||||
| Equity income from BOMAY | 215 | 261 | 973 | 2,054 | |||||||||||
| Equity income (loss) from MIEFE | (99 | ) | (1 | ) | (232 | ) | 138 | ||||||||
| Equity income from AAG | - | - | - | 2 | |||||||||||
| Foreign joint ventures’ operations related expenses | (83 | ) | (110 | ) | (393 | ) | (522 | ) | |||||||
| Net equity income from foreign joint ventures’ operations | 33 | 150 | 348 | 1,672 | |||||||||||
| Income (loss) from consolidated continuing operations and net equity income from foreign joint ventures’ operations | (3,004 | ) | (2,207 | ) | (1,993 | ) | (2,223 | ) | |||||||
| Other income (expense): | |||||||||||||||
| Interest expense and other, net | (15 | ) | (109 | ) | (172 | ) | (165 | ) | |||||||
| Continuing operations income (loss) before income taxes | (3,019 | ) | (2,316 | ) | (2,165 | ) | (2,388 | ) | |||||||
| Provision for (benefit from) income taxes on continuing operations | 599 | (334 | ) | 428 | (334 | ) | |||||||||
| Net income (loss) from continuing operations | (3,618 | ) | (1,982 | ) | (2,593 | ) | (2,054 | ) | |||||||
| Loss on discontinued operation | - | - | - | (2,673 | ) | ||||||||||
| Net income (loss) before dividends on redeemable convertible preferred stock | (3,618 | ) | (1,982 | ) | (2,593 | ) | (4,727 | ) | |||||||
| Dividends on redeemable convertible preferred stock | (88 | ) | (87 | ) | (349 | ) | (345 | ) | |||||||
| Net income (loss) attributable to common stockholders | $ | (3,706 | ) | $ | (2,069 | ) | $ | (2,942 | ) | $ | (5,072 | ) | |||
| Earnings (loss) from continuing operations per common share: | |||||||||||||||
| Basic | $ | (0.45 | ) | $ | (0.25 | ) | $ | (0.36 | ) | $ | (0.29 | ) | |||
| Diluted | $ | (0.45 | ) | $ | (0.25 | ) | $ | (0.36 | ) | $ | (0.29 | ) | |||
| Weighted - average number of continuing operations shares outstanding: | |||||||||||||||
| Basic | 8,253,889 | 8,180,970 | 8,241,585 | 8,182,034 | |||||||||||
| Diluted | 8,253,889 | 8,180,970 | 8,241,585 | 8,182,034 | |||||||||||
| Loss per common share from discontinued operations: | |||||||||||||||
| Basic and diluted | $ | - | $ | (0.01 | ) | $ | - | $ | (0.33 | ) | |||||
| Total earnings (loss) per common share: | |||||||||||||||
| Basic | $ | (0.45 | ) | $ | (0.26 | ) | $ | (0.36 | ) | $ | (0.62 | ) | |||
| Diluted | $ | (0.45 | ) | $ | (0.26 | ) | $ | (0.36 | ) | $ | (0.62 | ) | |||
| Weighted - average number of common shares outstanding: | |||||||||||||||
| Basic | 8,253,889 | 8,180,970 | 8,241,585 | 8,182,034 | |||||||||||
| Diluted | 8,253,889 | 8,180,970 | 8,241,585 | 8,182,034 | |||||||||||
| American Electric Technologies, Inc. and Subsidiaries | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (in thousands, except share and per share data) | ||||||||
| December 31, | December 31, | |||||||
| 2015 | 2014 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 7,989 | $ | 3,550 | ||||
| Short-term investments | 507 | - | ||||||
| Accounts receivable-trade, net of allowance of $225 and $315 at December 31, 2015 and December 31, 2014 | 6,853 | 11,877 | ||||||
| Inventories, net of allowance of $60 and $73 at December 31, 2015 and December 31, 2014 | 1,325 | 2,769 | ||||||
| Cost and estimated earnings in excess of billings on uncompleted contracts | 2,302 | 2,989 | ||||||
| Prepaid expenses and other current assets | 324 | 750 | ||||||
| Total current assets | 19,300 | 21,935 | ||||||
| Property, plant and equipment, net | 7,915 | 8,373 | ||||||
| Advances to and investments in foreign joint ventures | 11,104 | 12,054 | ||||||
| Intangibles | 218 | 236 | ||||||
| Other assets | 49 | 6 | ||||||
| Long-term assets held for sale | - | 650 | ||||||
| Total assets | $ | 38,586 | $ | 43,254 | ||||
| Liabilities, Convertible Preferred Stock and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Revolving line of credit | $ | 1,043 | $ | - | ||||
| Current portion of long-term note payable | 300 | 222 | ||||||
| Accounts payable | 4,031 | 6,447 | ||||||
| Accrued payroll and benefits | 476 | 1,145 | ||||||
| Other accrued expenses | 666 | 640 | ||||||
| Billings in excess of costs and estimated earnings on uncompleted contracts | 1,629 | 1,983 | ||||||
| Other current liabilities | 210 | 150 | ||||||
| Total current liabilities | 8,355 | 10,587 | ||||||
| Long-term note payable | 4,200 | 3,778 | ||||||
| Deferred compensation | 305 | 290 | ||||||
| Deferred income taxes | 3,064 | 3,046 | ||||||
| Total liabilities | 15,924 | 17,701 | ||||||
| Convertible preferred stock: | ||||||||
| Redeemable convertible preferred stock, Series A, net of discount of $671 at December 31, 2015 and $719 at December 31, 2014; $0.001 par value, 1,000,000 shares authorized, issued and outstanding at December 31, 2015 and December 31, 2014 | 4,329 | 4,281 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock; $0.001 par value, 50,000,000 shares authorized, 8,385,929 and 8,396,963 shares issued and , 8,254,001 and 8,185,323 shares outstanding at December 31, 2015 and December 31, 2014 | 8 | 8 | ||||||
| Treasury stock, at cost 131,928 shares at December 31, 2015 and 111,640 shares at December 31, 2014 | (792 | ) | (722 | ) | ||||
| Additional paid-in capital | 12,032 | 11,418 | ||||||
| Accumulated other comprehensive income | 310 | 851 | ||||||
| Retained earnings; including accumulated statutory reserves in equity method investments of $2,722 and $2,100 at December 31, 2015 and December 31, 2014 | 6,775 | 9,717 | ||||||
| Total stockholders’ equity | 18,333 | 21,272 | ||||||
| Total liabilities, convertible preferred stock and stockholders’ equity | $ | 38,586 | $ | 43,254 | ||||
| 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 December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Net income (loss) attributable to common stockholders |
$ | (3,706 | ) | $ | (2,069 | ) | $ | (2,942 | ) | $ | (5,072 | ) | ||||
| Add: Discontinued operations income (loss) | - | - | - | 2,673 | ||||||||||||
| Depreciation and amortization | 221 | 227 | 894 | 684 | ||||||||||||
| Interest expense and other, net | 15 | 109 | 172 | 165 | ||||||||||||
| Provision for (benefit benefit) for income taxes | 599 | (334 | ) | 428 | (334 | ) | ||||||||||
| Dividend on redeemable preferred stock | 88 | 87 | 349 | 345 | ||||||||||||
| EBITDA | $ | (2,783 | ) | $ | (1,980 | ) | $ | (1,099 | ) | $ | (1,539 | ) | ||||
| 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 2014 10-K which was filed on March 31, 2015. | ||||||||||||||||
Investor Contact: American Electric Technologies, Inc. Bill Brod 713-644-8182 investorrelations@aeti.com
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