Continued distributed wind revenue and order
growth
Northern Power Systems Corp. (TSX: NPS), a next
generation renewable energy technology company, today announced
financial results for its third quarter ended September 30,
2015.
Revenue for the three months ended September 30, 2015 was $16.7
million, compared to $15.0 million in the third quarter of 2014.
GAAP net loss for the third quarter of 2015 was $0.5 million,
compared to a net loss of $0.3 million in the prior year third
quarter.
“Revenue in our third quarter of 2015 continued to increase
significantly on a sequential basis led by distributed turbine
sales in our key markets,” stated Troy Patton, president and chief
executive officer of Northern Power Systems. “Our year-to-date
distributed turbine orders have increased twelve percent over the
same period in 2014, demonstrating continued growth in our core
business. Overall we continue to expect that revenue will be on par
with 2014, despite impacts to our product sales in the first half
of 2015. After announcing the launch of our FlexPhase power
converters in the expanding battery energy storage market entering
the quarter, we executed our first order in this market during the
third quarter. Finally, we continue to focus on expanding the
commercialization of our utility class wind technology leveraging
its expanding proven track record in the Brazilian market.”
“Our third quarter of 2015 represented a record revenue quarter,
along with achievement of declining sequential costs for our core
product,” stated Ciel Caldwell, chief financial officer of Northern
Power Systems. “However the mix of our sales resulted in an overall
gross margin below the same quarter in 2014. During the quarter, we
continued to reduce our operating expenses in our drive for
profitability, while maintaining sales and marketing investment
with sustained focus on expanding our business. This level of
continued focus on control of expenses and working capital
management maintains our confidence in having adequate cash to grow
and develop our business.”
Consolidated Third Quarter Financial Metrics:
- Revenue for the third quarter of fiscal
year 2015 was $16.7 million, compared to $15.0 million reported in
the prior year period and $12.5 million reported in the second
quarter of 2015.
- Gross margin in the third quarter was
20.4 percent, down from gross margin of 32.2 percent in the prior
year period, but above gross margin of 9.3 percent in the second
quarter of 2015.
- GAAP net loss for the third quarter of
fiscal year 2015 was $0.5 million, compared to a $0.3
million loss in the prior year third quarter.
- Non-GAAP adjusted EBITDA income for the
third quarter was $0.3 million, compared to non-GAAP adjusted
EBITDA income of $0.5 million in the prior year third
quarter.
- Order backlog at September 30, 2015 was
approximately $36 million, compared to $47 million at September 30,
2014.
Earnings Conference Call
The Company will host a conference call and webcast tomorrow,
November 13, 2015 at 8:00 a.m. (EST) to discuss the third quarter
2015 financial results and other matters.
To participate, callers in the United States should dial
+1-877-317-6789, Canada +1-866-605-3852 and in other countries
+1-412-317-6789. Participants should ask to be joined to the
Northern Power Systems call.
The conference call will also be available via webcast on the
Investor Relations section of Northern Power's website
(http://www.ir.northernpower.com). A webcast slide
presentation for the quarterly results will also be available
at the Company's website.
About non-GAAP financial measures
To supplement Northern Power Systems’ consolidated financial
statements presented in accordance with U.S. generally accepted
accounting principles (GAAP), Northern Power Systems has
used a non-GAAP financial measure, specifically non-GAAP adjusted
EBITDA income (loss). Non-GAAP adjusted EBITDA income (loss) is
defined as net income (loss), excluding share-based compensation
expense, amortization of acquisition-related intangibles,
depreciation of property, plant and equipment, interest expense,
tax provision or benefit, and certain other non-cash impacts as
applicable.
The presentation of non-GAAP financial information is not
intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with
GAAP. For more information on non-GAAP adjusted EBITDA, please see
the table captioned “Reconciliation of GAAP net loss to non-GAAP
adjusted EBITDA net income (loss)” included at the end of this
release. The table has more details on the GAAP financial measure
that is most directly comparable to non-GAAP adjusted EBITDA and
the related reconciliation between these financial measures.
Northern Power Systems’ management believes that this non-GAAP
financial measure provides meaningful supplemental information in
assessing our performance and liquidity by excluding certain items
that may not be indicative of our recurring core business operating
results, which could be non-cash charges or discrete cash charges
that are infrequent in nature. This non-GAAP financial measure also
has facilitated management’s internal comparisons to Northern Power
Systems’ historical performance and our competitors’ operating
results, as well as reflects measurements which are used by
creditors and other third parties in assessing our performance.
About Northern Power Systems
Northern Power Systems designs, manufactures, and sells wind
turbines and power technology products, and provides engineering
development services and technology licenses for energy
applications, into the global marketplace from its US headquarters
and European offices.
- Northern Power Systems has almost 40
years’ experience in technologies and products generating renewable
energy.
- Northern Power Systems currently
manufactures the NPS™ 60 and NPS™ 100 turbines. With over 8.5
million run time hours across its global fleet, Northern Power wind
turbines provide customers with clean, cost effective, reliable
renewable energy.
- Patented next generation permanent
magnet direct drive (PMDD) technology uses fewer moving parts,
delivers higher energy capture, and provides increased reliability
due to reduced maintenance and downtime.
- Northern Power Systems’ FlexPhase™
power converter platform uses patented converter architecture and
advanced controls technology for advanced grid support and
generation applications.
- Northern Power Systems offers
comprehensive in‐house development services, including systems
level engineering, advanced drivetrains, power electronics, PM
machine design, and remote monitoring systems to the energy
industry.
- Some of the world’s largest
manufacturers license the company’s next generation technology and
IP for their utility and distributed wind products and
markets.
To learn more about Northern Power Systems, please visit
www.northernpower.com.
Notice regarding forward-looking statements:This release
includes forward-looking statements regarding Northern Power
Systems and its business, which may include, but is not limited to,
product and financial performance, regulatory developments,
supplier performance, anticipated opportunity and trends for growth
in our customer base and our overall business, our market
opportunity, expansion into new markets, and execution of the
company’s growth strategy. Often, but not always, forward-looking
statements can be identified by the use of words such as “plans”,
“is expected”, “expects”, “scheduled”, “intends”, “contemplates”,
“anticipates”, “believes”, “proposes” or variations (including
negative variations) of such words and phrases, or state that
certain actions, events or results “may”, “could”, “would”, “might”
or “will” be taken, occur or be achieved. Such statements are based
on the current expectations of the management of Northern Power
Systems. The forward-looking events and circumstances discussed in
this release may not occur by certain specified dates or at all and
could differ materially as a result of known and unknown risk
factors and uncertainties affecting the company, including risks
regarding the wind power industry; production, performance and
acceptance of the company’s products; our sales cycle; our ability
to convert backlog into revenue; performance by the company’s
suppliers; our ability to maintain successful relationships with
our partners and to enter into new partner relationships; our
performance internationally; currency fluctuations; economic
factors; competition; the equity markets generally; and the other
risks detailed in Northern Power Systems’ risk factors discussed in
filings with the U.S. Securities and Exchange Commission (the
“SEC”), including but not limited to Northern Power Systems’ Annual
Report on Form 10-K filed on March 31, 2015, as well as other
documents that may be filed by Northern Power Systems from time to
time with the SEC. Although Northern Power Systems has attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results to differ from those anticipated,
estimated or intended. No forward-looking statement can be
guaranteed. Except as required by applicable securities laws,
forward-looking statements speak only as of the date on which they
are made and Northern Power Systems undertakes no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events, or otherwise.
NORTHERN POWER SYSTEMS
CORP.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30,
2015 AND 2014
(In thousands, except share and per share amounts)
For the three months ended For the nine months ended
September 30, September 30, 2015 2014
2015 2014 REVENUES: Net revenue $ 16,667 $ 15,032 $
37,435 $ 42,558 Cost of revenues 13,264 10,185
31,028 34,325 Gross profit 3,403
4,847
6,407 8,233 Gross margin percentage 20.4 % 32.2 % 17.1 % 19.3 %
OPERATING EXPENSES: Sales and marketing 947 990 3,409 2,668
Research and development 739 1,321 2,688 3,537 General and
administrative 1,621 2,312 6,668
6,793 Total operating expenses 3,307
4,623 12,765 12,998
Income/(loss) from operations 96 224 (6,358 ) (4,765
) Interest income (expense) - net (45 ) (40 ) (142 ) (312 )
Other income (expense) - net (109 ) (61 ) (221
) 41 Income/(loss) before provision for income taxes
(58 ) 123 (6,721 ) (5,036 ) Provision for income taxes 427
412 1,195 441 NET
LOSS $ (485 ) $ (289 ) $ (7,916 ) $ (5,477 ) Foreign
currency translation (27 ) - (41 ) -
COMPREHENSIVE LOSS $ (512 ) $ (289 ) $ (7,957 ) $ (5,477 )
Net loss applicable to common shareholders $ (485 ) $ (289 ) $
(7,916 ) $ (5,477 ) Net loss per common share - basic and
diluted (0.02 ) (0.01 ) (0.35 ) (0.29 ) Weighted average
number of common shares outstanding - basic and diluted 22,884,202
22,720,090 22,805,519 18,919,146 Non-GAAP adjusted EBITDA
net income/(loss) $ 323 $ 501 $ (5,862 ) $ (3,210 )
NORTHERN POWER SYSTEMS
CORP.CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)AS OF SEPTEMBER 30, 2015 AND DECEMBER 31,
2014
(In thousands, except share and per share amounts) ASSETS
September 30, 2015 December 31, 2014 CURRENT ASSETS: Cash
and cash equivalents $ 5,665 $ 13,142 Accounts receivable - net
5,286 3,491 Unbilled revenue 1,782 2,212 Inventories - net 15,548
16,456 Other current assets
1,960
3,799 Total current assets 30,241 39,100
Property, plant and equipment - net 2,628 1,854 Intangible assets -
net 944 474 Goodwill 722 722 Other assets
543
704 Total Assets
$
35,078 $ 42,854
LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT
LIABILITIES: Working capital revolving line of credit $ 4,000 $
4,000 Accounts payable 6,121 4,153 Accrued expenses 6,534 7,579
Deferred revenue 2,554 4,275 Customer deposits 5,444 5,642 Other
current liabilities 902 726 Total
current liabilities 25,555 26,375
Deferred revenue, less current portion 2,386 2,041 Other
long-term liability 280 308 Total
Liabilities 28,221 28,724
SHAREHOLDERS’EQUITY: Common stock 165,568 165,386 Additional
paid-in capital 8,474 7,972 Accumulated other comprehensive loss
(41 ) - Accumulated deficit (167,144 ) (159,228 )
Total Shareholders' Equity 6,857 14,130
Total Liabilities and Shareholders' Equity
$ 35,078 $
42,854
NORTHERN POWER SYSTEMS
CORP.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015 AND
2014
(In thousands) For the nine months ended September
30, 2015 2014 OPERATING ACTIVITIES: Net loss $
(7,916 ) $ (5,477 ) Adjustments to reconcile net loss to net cash
used in operating activities: Provision for inventory obsolescence
151 125 (Recovery of) provision for doubtful accounts (44 ) 224
Stock-based compensation expense 681 746 Depreciation and
amortization 595 763 Noncash implied license revenue (609 ) - Loss
on disposal of asset 50 - Deferred income taxes 11 10 Changes in
operating assets and liabilities: Accounts receivable and unbilled
revenue (1,320 ) (4,113 ) Inventories and deferred costs 745 (3,089
) Other current and noncurrent assets 2,065 (317 ) Accounts payable
1,968 (146 ) Accrued expenses (1,045 ) 2,171 Customer deposits (198
) (4,057 ) Other liabilities
(1,293
) 1,187 Net cash used in
operating activities
(6,159 )
(11,973 ) INVESTING
ACTIVITIES: Proceeds from sale of property - 1,218 Purchases of
property and equipment
(1,280 )
(696 ) Net cash (used in) provided
by investing activities
(1,280 )
522 FINANCING ACTIVITIES:
Proceeds from private placement equity financing, net - 19,623
Proceeds from revolving line of credit 4,000 4,000 Repayments on
revolving line of credit (4,000 ) - Proceeds from exercise of stock
options 3 53 Debt principal payments
-
(441 ) Net cash provided by
financing activities
3
23,235 Effect of exchange rate change on
cash
(41 ) -
Change in cash and cash equivalents (7,477 ) 11,784
Cash and cash equivalents - Beginning of the Period
13,142 4,534 Cash
and cash equivalents - End of the Period
$
5,665 $ 16,318
NORTHERN POWER SYSTEMS
CORP.RECONCILIATION OF NET LOSS TO NON-GAAP ADJUSTED EBITDA
INCOME/(LOSS) (unaudited)FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2015 AND 2014
(In thousands) For the three months ended
For the nine months ended September 30, September
30, 2015 2014 2015 2014 NET
LOSS $ (485 ) $ (289 ) $ (7,916 ) $ (5,477 ) Interest expense 45 40
142 317 Provision for income taxes 427 412 1,195 441 Depreciation
and amortization 212 194 595 763 Stock compensation expense 313 144
681 746 Non cash implied license revenue (189 ) - (609 ) - Loss on
disposal of asset - - 50
- Non-GAAP adjusted EBITDA income/(loss) $ 323
$ 501 $ (5,862 ) $ (3,210 )
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151112006597/en/
Chief Financial OfficerCiel R. Caldwell,
+1-857-209-3606ir@northernpower.com
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