HOUSTON, May 7, 2015 (GLOBE NEWSWIRE) -- American Electric Technologies, Inc. (Nasdaq:AETI), a leading supplier of power delivery solutions for the global energy industry, today announced its first quarter 2015 financial results.
The Company reported net earnings attributable to common shareholders in the first quarter of $0.2 million, up from a loss in the fourth quarter of 2014 of ($2.1) million, and down from $0.5 million profit in the first quarter of 2014.
The Company reported consolidated revenue of $15.3 million, up from $13.7 million in Q4 2014 but down from $15.8 million in Q1 of 2014. M&I Electric Brazil, the Company's wholly owned Brazilian subsidiary, accounted for $0.6 million of consolidated revenue in the first quarter.
"The improved profitability in Q1 was the result of very hard work by our team in resolving the execution challenges related to our new product introductions and some project related execution issues that drove us to losses in Q3 and Q4", said Charles Dauber, president and chief executive officer, AETI. "We are executing our strategy to build the products, capabilities, capacity and the team to become a market leading provider of power delivery solutions to the global energy industry and we are well positioned to succeed in growing our market share for our products and services."
Gross margins improved by $2.2 million in the quarter, up to 14.9%, up from 0% in the fourth quarter but were down versus the 15.4% in the first quarter of 2014.
Consolidated income from continuing operations was $0.3 million for Q1, a $2.6 million improvement over Q4 but down versus $0.5 million in Q1 of 2014.
The Company's international joint ventures reported net equity income of $ 0.02 million for the quarter, including $0.2 million of equity income from BOMAY in China, a loss of $0.1 million from MIEFE in Singapore, and joint venture related expenses totaling $0.1 million.
The Company reported fully diluted earnings from continuing operations per share of $0.02 for the quarter, up from a loss of ($0.25) per diluted share in the fourth quarter of 2014 but down from earnings of $0.09 per fully diluted share reported in the first quarter of 2014.
The Company reported backlog of $18.6 million, down from $26.5 million in the fourth quarter of 2014, but up over 40% from the $13.2 million of total backlog reported at the end of Q1 2014.
Beginning with the first quarter 2015, the Company's operations consist of a single reporting segment. Additional information on the Company's segment reporting can be found in Form 10-Q.
Conference Call
AETI will conduct a conference call at 10 a.m. EDT on May 7 to discuss the results with analysts, investors and other interested parties. Individuals who wish to participate in the conference call should dial 866-952-1907 passcode 884605, in the United States and Canada. International callers should dial +1 785-424-1826 passcode 884605.
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; 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, 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, 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) | ||||||
| Three Months Ended | ||||||
| March 31, | December 31 | |||||
| 2015 | 2014 | 2014 | ||||
| Net sales | $ 15,311 | $ 15,848 | $ 13,693 | |||
| Cost of sales | 13,028 | 13,413 | 13,656 | |||
| Gross profit | 2,283 | 15% | 2,435 | 15% | 37 | 0% |
| Operating expenses: | ||||||
| Research and development | 138 | 66 | 155 | |||
| Selling and marketing | 603 | 663 | 667 | |||
| General and administrative | 1,267 | 1,208 | 1,572 | |||
| Total operating expenses | 2,008 | 13% | 1,937 | 12% | 2,394 | 17% |
| Income (loss) from consolidated continuing operations | 275 | 498 | (2,357) | |||
| Net equity income from foreign joint ventures' operations: | ||||||
| BOMAY | 191 | 548 | 261 | |||
| MIEFE | (75) | (36) | (1) | |||
| AAG | -- | (38) | -- | |||
| Foreign joint ventures' operations related expenses | (98) | (112) | (110) | |||
| Net equity income from foreign joint ventures' operations | 18 | 362 | 150 | |||
| Income (loss) from consolidated continuing operations and net equity income from foreign joint ventures' operations | 293 | 2% | 860 | 5% | (2,207) | -16% |
| Other income (expense): | ||||||
| Interest expense and other, net | (19) | (12) | (109) | |||
| Continuing operations income (loss) before income taxes | 274 | 848 | (2,316) | |||
| Provision for income taxes on continuing operations | -- | (334) | ||||
| Net income (loss) from continuing operations | 274 | 848 | (1,982) | |||
| Discontinued operations income (loss) | -- | (268) | -- | |||
| Provision for income taxes on discontinued operations | -- | -- | -- | |||
| Net income (loss) from discontinued operations | -- | (268) | -- | |||
| Net income (loss) before dividends on redeemable convertible preferred stock | 274 | 580 | (1,982) | |||
| Dividends on redeemable convertible preferred stock | (87) | (86) | (87) | |||
| Net income (loss) attributable to common stockholders | $ 187 | 1% | $ 494 | 3% | $ (2,069) | -15% |
| Earnings (loss) from continuing operations per common share: | ||||||
| Basic | $ 0.02 | $ 0.09 | $ (0.25) | |||
| Diluted | $ 0.02 | $ 0.09 | $ (0.25) | |||
| Weighted - average number of continuing operations shares outstanding: | ||||||
| Basic | 8,206,684 | 8,053,497 | 8,185,224 | |||
| Diluted | 8,441,782 | 9,625,258 | 8,185,224 | |||
| Loss per common share from discontinued operations: | ||||||
| Basic and diluted | 0.00 | (0.03) | 0.00 | |||
| Total Earnings (loss) per common share: | ||||||
| Basic | $ 0.02 | $ 0.06 | $ (0.25) | |||
| Diluted | $ 0.02 | $ 0.06 | $ (0.25) | |||
| Weighted - average number of common shares outstanding: | ||||||
| Basic | 8,206,684 | 8,053,497 | 8,185,224 | |||
| Diluted | 8,441,782 | 8,625,258 | 8,185,224 | |||
| American Electric Technologies, Inc. and Subsidiaries | ||
| Condensed Consolidated Balance Sheets | ||
| (in thousands, except share and per share data) | ||
| March 31, 2015 | December 31, 2014 | |
| (Unaudited) | (Unaudited) | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 2,619 | $ 3,550 |
| Accounts receivable-trade, net of allowance of $275 and $315 at March 31, 2015 and December 31, 2014, respectively | 12,445 | 11,877 |
| Inventories, net of allowance of $91 and $73 at March 31, 2015 and December 31, 2014 | 3,128 | 2,769 |
| Costs and estimated earnings in excess of billings on uncompleted contracts | 3,630 | 2,989 |
| Prepaid expenses and other current assets | 682 | 750 |
| Total current assets | 22,504 | 21,935 |
| Property, plant and equipment, net | 8,449 | 8,373 |
| Investments in foreign joint ventures | 12,105 | 12,054 |
| Other assets | 232 | 242 |
| Long-term assets held for sale | 650 | 650 |
| Total assets | $ 43,940 | $ 43,254 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Accounts payable | $ 7,319 | $ 6,447 |
| Accrued payroll and benefits | 985 | 1,145 |
| Other accrued expenses | 371 | 640 |
| Billings in excess of costs and estimated earnings on uncompleted contracts | 2,174 | 1,983 |
| Short-term notes payable | 267 | 222 |
| Other current liabilities | 179 | 150 |
| Total current liabilities | 11,295 | 10,587 |
| Notes payable | 3,711 | 3,778 |
| Deferred income taxes | 2,969 | 3,046 |
| Deferred compensation | 294 | 290 |
| Total liabilities | 18,269 | 17,701 |
| Convertible preferred stock | ||
| Redeemable convertible preferred stock, series A, net of discount of $707 and $729 at March 31, 2015 and December 31,2014, respectively; $.001 par value, shares issued and outstanding 1,000,000 March 31, 2015, and December 31, 2014 | 4,293 | 4,281 |
| Common stockholders' equity: | ||
| Common stock; $0.001 par value, 50,000,000 shares authorized, 8,249,458 and 8,185,323 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | 8 | 8 |
| Treasury stock; at cost (131,928 shares at March 31, 2015 and 111,640 shares at December 31, 2014) | (792) | (722) |
| Additional paid-in capital | 11,554 | 11,418 |
| Accumulated other comprehensive income | 704 | 851 |
| Retained earnings; including accumulated statutory reserves in equity method investments of $2,100 at March 31, 2015 and December 31, 2014, respectively | 9,904 | 9,717 |
| Total common stockholders' equity | 21,378 | 21,272 |
| Total liabilities, preferred stock and stockholders' equity | $ 43,940 | $ 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 | |||
| March 31, | March 31, | December 31, | |
| 2015 | 2014 | 2014 | |
| Net Income (loss) on continuing operations attributable to common stockholders | $ 187 | $ 762 | $ (2,069) |
| Add: | |||
| Dividends on redeemable preferred stock | 87 | 86 | 87 |
| Depreciation and amortization | 237 | 128 | 227 |
| Interest expense and other, net | 19 | 12 | 109 |
| Provision for income taxes | -- | -- | (334) |
| EBITDA | $ 530 | $ 988 | $ (1,980) |
| (1) 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 30, 2015. | |||