HOUSTON, Aug. 13, 2015 (GLOBE NEWSWIRE) -- American Electric Technologies, Inc. (NASDAQ:AETI), a leading provider of power delivery solutions for the global energy industry, today announced its second quarter 2015 financial results.
The Company reported net income attributable to common shareholders of $0.5 million, up 146% from the $0.2 million reported in the first quarter and up from the $1.4 million loss in the 2nd quarter of 2014. The Q2 2014 results included the impairment of the Company's American Access Technologies business.
Fully diluted earnings per share were $0.06 for the quarter, up from $0.02 in Q1 of 2015 and up from a loss of ($0.17) in the second quarter of 2014.
"Although the oil & gas markets have been challenging so far this year, I'm pleased we were able to achieve higher gross margin percentages and profitability based on continued improvement in project execution and on our focus on higher margin, energy-related services," said Charles Dauber, AETI president and chief executive officer.
Gross margins increased to 17% during the quarter from 15% in both Q1 of this year and Q2 of 2014.
The Company reported consolidated revenue of $12.3 million in the quarter, down from $15.3 million in Q1 of this year and down from the $13.4 million in the second quarter of 2014.
Dauber continued, "Although revenues were lower in Q2 as a result of the slowdown in land and offshore oil drilling markets and reduced power generation business, as we look ahead to the second half of the year, we see business in our mid and down-stream oil & gas and power generation sectors picking up and have been booking orders in those sectors for end of the year deliveries."
M&I Electric Brazil, the Company's wholly owned subsidiary in Brazil, contributed $1.0 million of revenue and $0.26 million of profit in the quarter, its first profitable quarter after starting operations in Q3 of last year. The Company's international joint ventures reported net equity income after expenses, of $0.2 million for the quarter, up from breakeven performance in Q1 of this year, but down from the $0.9 million in the second quarter of 2014.
"Internationally, our wholly-owned subsidiary M&I Electric Brazil is growing and profitable in the quarter. We were pleased that our BOMAY joint venture in China continues to have a good year and are working with our Singapore Joint Venture Partner, Sonepar, to get the MIEFE joint venture back on track," added Dauber.
The Company reported EBITDA, a non-U.S. GAAP measure, from continuing operations of $0.7 million, up from $0.5 million in Q1 2015 but down from $1.2 million in Q2 2014.
The Company reported backlog of $16.5 million for the second quarter of 2015 which is down from the $20.3 million reported for the first quarter.
Conference Call
AETI will conduct a conference call at 10 a.m. EST on August 13 to discuss the results with analysts, investors and other interested parties. Individuals who wish to participate in the conference call should dial 866-952-1908 passcode 624731 in the United States and Canada. International callers should dial +1 785-424-1827 passcode 624731.
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) | ||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||
| 2015 | 2014 | 2015 | 2014 | |
| Net sales | $ 12,302 | $ 13,430 | $ 27,613 | $ 29,278 |
| Cost of sales | 10,258 | 11,402 | 23,286 | 24,815 |
| Gross profit | 2,044 | 2,028 | 4,327 | 4,463 |
| Operating expenses: | ||||
| Research and development | 90 | 159 | 228 | 226 |
| Selling and marketing | 493 | 570 | 1,096 | 1,233 |
| General and administrative | 1,256 | 1,148 | 2,523 | 2,355 |
| Total operating expenses | 1,839 | 1,877 | 3,847 | 3,814 |
| Income (loss) from consolidated continuing operations | 205 | 151 | 480 | 649 |
| Net equity income from foreign joint ventures' operations: | ||||
| BOMAY | 265 | 960 | 456 | 1,508 |
| MIEFE | 19 | 112 | (56) | 74 |
| AAG | -- | 38 | -- | 2 |
| Foreign joint ventures' operations related expenses | (109) | (178) | (207) | (290) |
| Net equity income from foreign joint ventures' operations | 175 | 932 | 193 | 1,294 |
| Income (loss) from consolidated continuing operations and net equity income from foreign joint ventures' operations | 380 | 1,083 | 673 | 1,943 |
| Other income (expense): | ||||
| Interest expense and other, net | (45) | (21) | (64) | (33) |
| Foreign transaction gain | 134 | -- | 134 | -- |
| Continuing operations income (loss) before income taxes | 469 | 1,062 | 743 | 1,910 |
| Provision for (benefit from) income taxes on continuing operations | (78) | -- | (78) | -- |
| Net income (loss) from continuing operations | 547 | 1,062 | 821 | 1,910 |
| Discontinued operations income (loss) | -- | (2,384) | -- | (2,652) |
| Provision for income taxes on discontinued operations | -- | -- | -- | -- |
| Net income (loss) from discontinued operations | -- | (2,384) | -- | (2,652) |
| Net income (loss) before dividends on redeemable convertible preferred stock | 547 | (1,322) | 821 | (742) |
| Dividends on redeemable convertible preferred stock | (87) | (86) | (174) | (172) |
| Net income (loss) attributable to common stockholders | $ 460 | $ (1,408) | $ 647 | $ (914) |
| Earnings (loss) from continuing operations per common share: | ||||
| Basic | $ 0.06 | $ 0.12 | $ 0.08 | $ 0.21 |
| Diluted | $ 0.06 | $ 0.11 | $ 0.08 | $ 0.20 |
| Weighted - average number of continuing operations shares outstanding: | ||||
| Basic | 8,250,833 | 8,176,808 | 8,235,901 | 8,115,214 |
| Diluted | 8,293,947 | 9,723,076 | 8,279,014 | 9,710,422 |
| Loss per common share from discontinued operations: | ||||
| Basic and diluted | $ -- | $ (0.29) | $ -- | $ (0.32) |
| Total earnings (loss) per common share: | ||||
| Basic | $ 0.06 | $ (0.17) | $ 0.08 | $ (0.11) |
| Diluted | $ 0.06 | $ (0.17) | $ 0.08 | $ (0.11) |
| Weighted - average number of common shares outstanding: | ||||
| Basic | 8,250,833 | 8,176,808 | 8,235,901 | 8,115,214 |
| Diluted | 8,293,947 | 8,176,808 | 8,279,014 | 8,115,214 |
| American Electric Technologies, Inc. and Subsidiaries | ||
| Condensed Consolidated Balance Sheets | ||
| (in thousands, except share and per share data) | ||
| June 30, 2015 | December 31, | |
| (unaudited) | 2014 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 8,246 | $ 3,550 |
| Accounts receivable-trade, net of allowance of $285 and $315 at June 30, 2015 and December 31, 2014 | 7,641 | 11,877 |
| Inventories, net of allowance of $108 and $73 at June 30, 2015 and December 31, 2014 | 2,110 | 2,769 |
| Cost and estimated earnings in excess of billings on uncompleted contracts | 3,789 | 2,989 |
| Prepaid expenses and other current assets | 504 | 750 |
| Total current assets | 22,290 | 21,935 |
| Property, plant and equipment, net | 8,363 | 8,373 |
| Advances to and investments in foreign joint ventures | 11,436 | 12,054 |
| Other assets | 502 | 242 |
| Long-term assets held for sale | 650 | 650 |
| Total assets | $ 43,241 | $ 43,254 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Accounts payable | $ 4,271 | $ 6,447 |
| Accrued payroll and benefits | 710 | 1,145 |
| Other accrued expenses | 459 | 640 |
| Billings in excess of costs and estimated earnings on uncompleted contracts | 2,715 | 1,983 |
| Revolving line of credit | 1,500 | -- |
| Current portion of long-term note payable | 267 | 222 |
| Other current liabilities | 67 | 150 |
| Total current liabilities | 9,989 | 10,587 |
| Long-term note payable | 3,644 | 3,778 |
| Deferred income taxes | 2,996 | 3,046 |
| Deferred compensation | 297 | 290 |
| Total liabilities | 16,926 | 17,701 |
| Convertible preferred stock: | ||
| Redeemable convertible preferred stock, Series A, net of discount of $695 at June 30, 2015 and $719 at December 31, 2014; $0.001 par value, 1,000,000 shares authorized, issued and outstanding at June 30, 2015 and December 31, 2014 | 4,305 | 4,281 |
| Stockholders' equity: | ||
| Common stock; $0.001 par value, 50,000,000 shares authorized, 8,250,897 and 8,185,323 shares issued and outstanding at June 30, 2015 and December 31, 2014 | 8 | 8 |
| Treasury stock, at cost 131,928 shares at June 30, 2015 and 111,640 shares at December 31, 2014 | (792) | (722) |
| Additional paid-in capital | 11,674 | 11,418 |
| Accumulated other comprehensive income | 756 | 851 |
| Retained earnings; including accumulated statutory reserves in equity method investments of $2,237 and $2,100 at June 30, 2015 and December 31, 2014 | 10,364 | 9,717 |
| Total stockholders' equity | 22,010 | 21,272 |
| Total liabilities and stockholders' equity | $ 43,241 | $ 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 June 30, | Six Months Ended June 30, | |||
| 2015 | 2014 | 2015 | 2014 | |
| Net income (loss) attributable to common stockholders | $ 460 | $ (1,408) | $ 647 | $ (914) |
| Add: Discontinued operations income (loss) | -- | 2,384 | -- | 2,652 |
| Depreciation and amortization | 222 | 131 | 459 | 259 |
| Interest expense and other, net | 45 | 21 | 64 | 33 |
| Provision for (benefit benefit) for income taxes | (78) | -- | (78) | -- |
| Dividend on redeemable preferred stock | 87 | 86 | 174 | 172 |
| EBITDA | $ 736 | $ 1,214 | $ 1,266 | $ 2,202 |
| 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. | ||||