AETI announces Q1 results

HOUSTON, May 15, 2018 (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 2018 financial results.

For the quarter, the company reported revenue of $8.3 million, up 3% compared with the first quarter of 2017 but down from the $12.9 million reported in the fourth quarter of 2017, primarily due to reduced backlog in the company’s oil and gas sector entering 2018.

The company reported a 32% improvement in backlog, up from year ending backlog of $18.9 million to $24.9 million. This backlog increase included a multi-million dollar marine vessel project award and will be recognized as revenue beginning in the second quarter of 2018.

The Company reported an EBITDA loss (a non-U.S. GAAP measure) of $2.5 million for the quarter, compared with an EBITDA loss of $2.2 million in Q1 of 2017 and an EBITDA breakeven in Q4 2017.

In the quarter, the company also announced a 10 year extension of its BOMAY joint venture in China.

"Although we saw backlog growth in Q1 and are seeing recovery in our traditional drilling and marine businesses, our financial results in Q1 were unacceptable and liquidity remains tight,” said Charles Dauber, AETI president and chief executive officer.

On May 7^th, the company announced it has engaged Oppenheimer & Co. as its exclusive investment banker to assist in addressing liquidity and strategic options for growth.

“We are pleased with the progress Oppenheimer has made in providing us with multiple options to strengthen our balance sheet and enable us to execute our growth plan,” said Dauber.

Conference Call
AETI will conduct a conference call at 11 a.m. EST on May 15, 2018 to discuss the results with analysts, investors and other interested parties. Individuals who wish to participate in the conference call should dial 866-519-2796 passcode 737583, in the United States and Canada. International callers should dial +1 323-794-2095 passcode 737583.

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 interest in a joint venture in Xian, China. 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, 2017. 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 Balance Sheets
(in thousands, except share and per share data)

	March 31,			December 31,
	2018			2017
Assets	(unaudited)
Current assets:
Cash and cash equivalents	$	627		$	2,289
Restricted short-term investments		50			50
Accounts receivable-trade, net of allowance of $97 and $135 at December 31, 2017 and Three Months Ended		6,395			6,061
Inventories, net of allowance of $77 and $78 at December 31, 2017 and Three Months Ended		1,936			1,327
Cost and estimated earnings in excess of billings on uncompleted contracts		4,271			6,434
Prepaid expenses and other current assets		1,512			534
Total current assets		14,791			16,695
Property, plant and equipment, net		6,784			6,920
Advances to and investments in foreign joint ventures		10,475			10,947
Retainage receivable		-			785
Intangibles		526			458
Other assets		107			116
Total assets	$	32,683		$	35,921
Liabilities, Convertible Preferred Stock and Stockholders’ Equity
Current liabilities:
Current portion of long-term note payable	$	360		$	270
Short-term note payable		97			354
Accounts payable and other accrued expenses		10,808			12,335
Accrued payroll and benefits		1,119			912
Billings in excess of costs and estimated earnings on uncompleted contracts		2,271			1,792
Total current liabilities		14,655			15,663
Long-term note payable, net		5,662			5,524
Deferred compensation		200			213
Deferred income taxes		86			-
Total liabilities		20,603			21,400
Convertible preferred stock:
Redeemable convertible preferred stock, Series A, net of discount of $547 at December 31, 2017 and $562 at Three Months Ended; $0.001 par value, 1,000,000 shares authorized, issued and outstanding at December 31, 2017 and Three Months Ended		4,453			4,438
Stockholders’ equity:
Common stock; $0.001 par value, 50,000,000 shares authorized, 8,945,404 and 8,850,532 shares issued and 8,751,429 and 8,669,650 shares outstanding at December 31, 2017 and Three Months Ended		9			9
Treasury stock, at cost 193,975 and 180,882 shares at December 31, 2017 and Three Months Ended		(934	)		(916	)
Additional paid-in capital		14,052			13,811
Accumulated other comprehensive income		776			401
Accumulated Deficit; including accumulated statutory reserves in equity method investments of $2,809 at December 31, 2017 and Three Months Ended		(6,276	)		(3,222	)
Total stockholders’ equity		7,627			10,083
Total liabilities, convertible preferred stock and stockholders’ equity	$	32,683		$	35,921


American Electric Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
Unaudited
(in thousands, except share and per share data)

	Three Months Ended March 31,
		2018			2017
Net sales	$	8,289		$	8,030
Cost of sales		9,278			8,586
Gross margin		(989	)		(556	)
Operating expenses:
Research and development		43			104
Selling and marketing		683			611
General and administrative		1,122			1,094
Total operating expenses		1,848			1,809
Loss from operations		(2,837	)		(2,365	)
Net equity income from foreign joint ventures’ operations:
Equity income from foreign joint ventures’ operations		171			52
Foreign joint ventures’ operations related expenses		(61	)		(64	)
Net equity income from foreign joint ventures’ operations		110			(12	)
Loss from operations and net equity income from foreign joint ventures’ operations		(2,727	)		(2,377	)
Other income (expense):
Interest expense and other, net		(178	)		(100	)
Loss before income taxes		(2,905	)		(2,477	)
Provision for income taxes		59			18
Net loss		(2,964	)		(2,495	)
Dividends on redeemable convertible preferred stock		(90	)		(89	)
Net loss attributable to common stockholders	$	(3,054	)	$	(2,584	)
Loss per common share:
Basic	$	(0.35	)	$	(0.31	)
Diluted	$	(0.35	)	$	(0.31	)
Weighted - average number of common shares outstanding:
Basic		8,723,530			8,337,119
Diluted		8,723,530			8,337,119


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,
		2018			2017
Net loss attributable to common stockholders	$	(3,054	)	$	(2,584	)
Add: Depreciation and amortization		190			218
Interest expense		235			100
Provision for (benefit from) income taxes		59			18
Dividend on redeemable preferred stock		90			89
EBITDA	$	(2,480	)	$	(2,159	)

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 2017 10-K which was filed on March 29, 2018.

Investor Contact:
American Electric Technologies, Inc.
Bill Brod
713-644-8182
investorrelations@aeti.com