AETI Announces Q4 and FY2016 Results
March 28 2017 - 7:00AM
American Electric Technologies, Inc. (NASDAQ:AETI), a leading
supplier of power delivery solutions for the global energy
industry, today announced its fourth quarter and fiscal year 2016
financial results.
AETI announced that fourth quarter revenues were
$9.4 million, up 22% versus Q4 2015 and up 8% from Q3.
The company also saw continued strong backlog
growth in the quarter, reporting Q4 ending backlog of $13.5
million, which is up 24% from $10.9M at the end of Q3 and is the
highest quarter ending backlog since Q1 2016.
Based on the increased revenue, the Company
reported a reduced EBITDA loss (a non-U.S. GAAP measure) of $1.4
million for the quarter, compared with an EBITDA loss of $2.3
million in Q3 2016 and $2.8 million in Q4 of 2015.
Subsequent to the end of the quarter, the
company announced it had closed on a new $7.0 million credit
facility which will be used to refinance existing debt and for
general corporate purposes. A Form 8-K reporting the
transaction was filed on March 27.
“We are pleased with the continued growth of our
revenue and backlog in the quarter as we execute back to
profitability,” said Charles Dauber, AETI president and chief
executive officer. “Our new credit facility enables the company to
continue to execute on our growth initiatives and positions us well
for the future.”
The Company previously announced multiple
project awards including for a New England LNG project, a landfill
gas project, a multi-million project at one of the world’s largest
Engineering Procurement and Construction (EPC) firms, and most
recently a $6M award for the company’s IntelliSafe™ medium voltage
arc-resistant switchgear for a leading midstream operator.
Conference Call AETI will
conduct a conference call at 10 a.m. EDT on March 28, 2017 to
discuss the results with analysts, investors and other interested
parties. Individuals who wish to participate in the conference call
should dial 877-876-9176 passcode 966293, in the United States and
Canada. International callers should dial +1 785-424-1667
passcode 966293.
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
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 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 30, 2016. 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) |
|
|
|
|
|
|
|
|
|
Three Months Ended December
31, |
|
Twelve Months Ended December 31, |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Net sales |
$ |
9,397 |
|
|
$ |
7,690 |
|
|
$ |
37,812 |
|
|
$ |
49,083 |
|
Cost of sales |
|
9,247 |
|
|
|
7,988 |
|
|
|
36,796 |
|
|
|
42,493 |
|
Gross profit |
|
150 |
|
|
|
(298 |
) |
|
|
1,016 |
|
|
|
6,590 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Research and
development |
|
98 |
|
|
|
265 |
|
|
|
962 |
|
|
|
769 |
|
Selling and
marketing |
|
422 |
|
|
|
738 |
|
|
|
2,181 |
|
|
|
2,380 |
|
General and
administrative |
|
1,328 |
|
|
|
1,736 |
|
|
|
5,242 |
|
|
|
5,782 |
|
Total operating
expenses |
|
1,848 |
|
|
|
2,739 |
|
|
|
8,385 |
|
|
|
8,931 |
|
Loss from
operations |
|
(1,698 |
) |
|
|
(3,037 |
) |
|
|
(7,369 |
) |
|
|
(2,341 |
) |
Net equity income
(loss) from foreign joint ventures’ operations: |
|
|
|
|
|
|
|
Equity income (loss)
from foreign joint ventures’ operations |
|
162 |
|
|
|
116 |
|
|
|
529 |
|
|
|
741 |
|
Foreign joint ventures’
operations related expenses |
|
(43 |
) |
|
|
(83 |
) |
|
|
(245 |
) |
|
|
(393 |
) |
Net equity income from
foreign joint ventures’ operations |
|
119 |
|
|
|
33 |
|
|
|
284 |
|
|
|
348 |
|
Loss from operations
and net equity income from foreign joint ventures’ operations |
|
(1,579 |
) |
|
|
(3,004 |
) |
|
|
(7,085 |
) |
|
|
(1,993 |
) |
Other income
(expense): |
|
|
|
|
|
|
|
Interest expense and
other, net |
|
(131 |
) |
|
|
(15 |
) |
|
|
69 |
|
|
|
(172 |
) |
Loss before income
taxes |
|
(1,710 |
) |
|
|
(3,019 |
) |
|
|
(7,016 |
) |
|
|
(2,165 |
) |
Provision for (benefit
from) income taxes |
|
(6 |
) |
|
|
599 |
|
|
|
44 |
|
|
|
428 |
|
Net loss before
dividends on redeemable convertible preferred stock |
|
(1,704 |
) |
|
|
(3,618 |
) |
|
|
(7,060 |
) |
|
|
(2,593 |
) |
Dividends on redeemable
convertible preferred stock |
|
(88 |
) |
|
|
(88 |
) |
|
|
(353 |
) |
|
|
(349 |
) |
Net loss attributable
to common stockholders |
$ |
(1,792 |
) |
|
$ |
(3,706 |
) |
|
$ |
(7,413 |
) |
|
$ |
(2,942 |
) |
Earnings (loss) per
common share: |
|
|
|
|
|
|
|
Basic |
$ |
(0.21 |
) |
|
$ |
(0.45 |
) |
|
$ |
(0.89 |
) |
|
$ |
(0.36 |
) |
Diluted |
$ |
(0.21 |
) |
|
$ |
(0.45 |
) |
|
$ |
(0.89 |
) |
|
$ |
(0.36 |
) |
Weighted
- average number of common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
8,337,426 |
|
|
|
8,253,889 |
|
|
|
8,305,764 |
|
|
|
8,241,585 |
|
Diluted |
|
8,337,426 |
|
|
|
8,253,889 |
|
|
|
8,305,764 |
|
|
|
8,241,585 |
|
American Electric Technologies, Inc. and
Subsidiaries |
|
Condensed Consolidated Balance
Sheets |
|
(in thousands, except share and per share
data) |
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
$ |
1,618 |
|
|
$ |
7,989 |
|
|
Short-term investments |
|
507 |
|
|
|
507 |
|
|
Accounts
receivable-trade, net of allowance of $204 and $225 at
December 31, 2016 and December 31, 2015 |
|
6,717 |
|
|
|
6,853 |
|
|
Inventories, net of allowance of $60 at both December 31, 2016
and December 31, 2015 |
|
1,181 |
|
|
|
1,325 |
|
|
Cost and
estimated earnings in excess of billings on uncompleted
contracts |
|
5,829 |
|
|
|
2,302 |
|
|
Prepaid
expenses and other current assets |
|
349 |
|
|
|
324 |
|
|
Total
current assets |
|
16,201 |
|
|
|
19,300 |
|
|
Property, plant and
equipment, net |
|
7,298 |
|
|
|
7,915 |
|
|
Advances to and
investments in foreign joint ventures |
|
10,663 |
|
|
|
11,104 |
|
|
Retainage
receivable |
|
649 |
|
|
|
- |
|
|
Intangibles |
|
527 |
|
|
|
218 |
|
|
Other assets |
|
46 |
|
|
|
49 |
|
|
Total assets |
$ |
35,384 |
|
|
$ |
38,586 |
|
|
Liabilities, Convertible Preferred Stock and Stockholders’
Equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Revolving
line of credit |
$ |
1,500 |
|
|
$ |
1,043 |
|
|
Current
portion of long-term note payable |
|
300 |
|
|
|
300 |
|
|
Accounts
payable and other accrued expenses |
|
9,798 |
|
|
|
4,907 |
|
|
Accrued
payroll and benefits |
|
1,093 |
|
|
|
476 |
|
|
Billings
in excess of costs and estimated earnings on uncompleted
contracts |
|
208 |
|
|
|
1,629 |
|
|
Total
current liabilities |
|
12,899 |
|
|
|
8,355 |
|
|
Long-term note
payable |
|
3,900 |
|
|
|
4,200 |
|
|
Deferred
compensation |
|
260 |
|
|
|
305 |
|
|
Deferred income
taxes |
|
2,824 |
|
|
|
3,064 |
|
|
Total liabilities |
|
19,883 |
|
|
|
15,924 |
|
|
Convertible preferred
stock: |
|
|
|
|
Redeemable convertible preferred stock, Series A, net of discount
of $617 at December 31, 2016 and $671 at December 31,
2015; $0.001 par value, 1,000,000 shares authorized, issued and
outstanding at December 31, 2016 and December 31,
2015 |
|
4,383 |
|
|
|
4,329 |
|
|
Stockholders’
equity: |
|
|
|
|
Common
stock; $0.001 par value, 50,000,000 shares authorized, 8,499,508
and 8,385,929 shares issued and 8,335,968 and 8,254,001 shares
outstanding at December 31, 2016 and December 31,
2015 |
|
8 |
|
|
|
8 |
|
|
Treasury
stock, at cost 163,540 shares at December 31, 2016 and 131,928
shares at December 31, 2015 |
|
(863 |
) |
|
|
(792 |
) |
|
Additional paid-in capital |
|
12,613 |
|
|
|
12,032 |
|
|
Accumulated other comprehensive income |
|
(2 |
) |
|
|
310 |
|
|
Retained
(deficit) earnings; including accumulated statutory reserves in
equity method investments of $2,887 and $2,722 at December 31,
2016 and December 31, 2015 |
|
(638 |
) |
|
|
6,775 |
|
|
Total
stockholders’ equity |
|
11,118 |
|
|
|
18,333 |
|
|
Total liabilities, convertible preferred stock and
stockholders’ equity |
$ |
35,384 |
|
|
$ |
38,586 |
|
|
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, |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Net
income (loss) attributable to common stockholders |
$ |
(1,792 |
) |
|
$ |
(3,706 |
) |
|
$ |
(7,413 |
) |
|
$ |
(2,942 |
) |
Add: Depreciation and
amortization |
|
217 |
|
|
|
221 |
|
|
|
877 |
|
|
|
894 |
|
Interest
expense |
|
78 |
|
|
|
15 |
|
|
|
251 |
|
|
|
172 |
|
Provision
for (benefit from) income taxes |
|
(6 |
) |
|
|
599 |
|
|
|
44 |
|
|
|
428 |
|
Dividend
on redeemable preferred stock |
|
88 |
|
|
|
88 |
|
|
|
353 |
|
|
|
349 |
|
EBITDA |
$ |
(1,415 |
) |
|
$ |
(2,783 |
) |
|
$ |
(5,888 |
) |
|
$ |
(1,099 |
) |
|
|
|
|
|
|
|
|
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 2015 10-K which was filed on March
30, 2016. |
|
|
|
|
|
|
|
Investor Contact:
American Electric Technologies, Inc.
Bill Brod
713-644-8182
investorrelations@aeti.com
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