AETI Announces Q1 results Company reports 97% quarterly backlog growth and the second highest backlog in company history

Transcription

1 FOR RELEASE May 15, :00 am (EST) AETI Announces Q1 results Company reports 97% quarterly backlog growth and the second highest backlog in company history HOUSTON, May 15, American Electric Technologies, Inc. (NASDAQ: AETI), a leading supplier of power delivery solutions for the global energy industry, today announced its first quarter 2017 financial results. The company reported quarter ending backlog of $26.6 million, the company s second highest backlog ever reported and the highest since Q For the quarter, the company reported revenue of $8.0 million, down 14% from Q4 and 3% from the $8.3 million revenue reported in Q The revenue decrease was primarily related to the general oil & gas market conditions combined with the seasonality of our services business and the impact of the significant backlog growth reported was not reflected in revenues in Q1. Based on the reduced revenue level, the Company reported an EBITDA loss (a non- U.S. GAAP measure) of $2.2 million for the quarter, compared with an EBITDA loss of $1.4 million in Q and improved from the EBITDA loss of $2.7 million in Q1 of We were pleased with the strong increased bookings and the refinancing of our credit facility in Q1. However, our markets continue to be very challenging and liquidity remains tight, said Charles Dauber, AETI president and chief executive officer. Although our Q1 revenues were below our break-even level, the projects that comprise our backlog will commence being recognized for revenue starting in Q2. The 97% backlog growth compared with Q ending backlog was primarily driven by orders in the midstream and downstream oil & gas and power generation markets The Company previously announced project awards in the quarter including a $5M break-in win at a top 5 largest Engineering, Procurement and Construction firm for a new chemical plant project, and a $6M contract with a leading midstream operator to enhance electrical safety for their Permian Crude Pipeline and Terminal projects using the company s IntelliSafe arc-resistant switchgear. On March 27th, the company announced it has closed on a new $7.0 million credit facility with Hunting Dog Capital of San Francisco. This new credit facility will be used to refinance existing debt and for general corporate purposes.

2 Conference Call AETI will conduct a conference call at 11 a.m. EST on May 15, 2017 to discuss the results with analysts, investors and other interested parties. Individuals who wish to participate in the conference call should dial passcode , in the United States and Canada. International callers should dial passcode 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 Houma, Louisiana; 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 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, 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. Investor Contact: American Electric Technologies, Inc. Bill Brod investorrelations@aeti.com

3 March 31, 2017 December 31, (unaudited) 2016 Assets Current assets: Cash and cash equivalents $ 1,559 $ 1,618 Restricted short-term investments Accounts receivable-trade, net of allowance of $211 and $204 at March 31, 2017 and December 31, ,110 6,717 Inventories, net of allowance of $134 and $60 at March 31, 2017 and December 31, ,181 Cost and estimated earnings in excess of billings on uncompleted contracts 6,170 5,829 Prepaid expenses and other current assets Total current assets 14,726 16,201 Property, plant and equipment, net 7,187 7,298 Advances to and investments in foreign joint ventures 10,730 10,663 Retainage receivable Intangibles Other assets Total assets $ 33,876 $ 35,384 Liabilities, Convertible Preferred Stock and Stockholders Equity Current liabilities: Revolving line of credit $ - $ 1,500 Current portion of long-term note payable Accounts payable and other accrued expenses 9,001 9,798 Accrued payroll and benefits 1,018 1,093 Billings in excess of costs and estimated earnings on uncompleted contracts Total current liabilities 11,235 12,899 Long-term note payable 6,166 3,900 Deferred compensation Deferred income taxes 2,864 2,824 Total liabilities 20,513 19,883 Convertible preferred stock: Redeemable convertible preferred stock, Series A, net of discount of $604 at March 31, 2017 and $617 at December 31, 2016; $0.001 par value, 1,000,000 shares authorized, issued and outstanding at March 31, 2017 and December 31, ,396 4,383 Stockholders equity: Common stock; $0.001 par value, 50,000,000 shares authorized, 8,650,410 and 8,499,508 shares issued and 8,486,870 and 8,335,968 shares outstanding at March 31, 2017 and December 31, Treasury stock, at cost 163,540 shares at March 31, 2017 and at December 31, 2016 (863) (863) Additional paid-in capital 13,005 12,613 Accumulated other comprehensive income 39 (2) Retained earnings; including accumulated statutory reserves in equity method investments of $2,887 at March 31, 2017 and December 31, 2016 (3,222) (638) Total stockholders equity 8,967 11,118 Total liabilities, convertible preferred stock and stockholders equity $ 33,876 $ 35,384

4 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, Net sales $ 8,030 $ 8,298 Cost of sales 8,586 8,207 Gross margin (556) 91 Operating expenses: Research and development Selling and marketing General and administrative 1,094 1,346 Total operating expenses 1,809 2,745 Income (loss) from operations (2,365) (2,654) Net equity income (loss) from foreign joint ventures operations: Equity income (loss) from foreign joint ventures operations 52 (195) Foreign joint ventures operations related expenses (64) (51) Net equity loss from foreign joint ventures operations (12) (246) Loss from operations and net equity income from foreign joint ventures operations (2,377) (2,900) Other income (expense): Interest expense and other, net (100) (39) Loss before income taxes (2,477) (2,939) Provision for (benefit from) income taxes 18 (56) Net loss before dividends on redeemable convertible preferred stock (2,495) (2,883) Dividends on redeemable convertible preferred stock (89) (88) Net loss attributable to common stockholders $ (2,584) $ (2,971) Earnings (loss) per common share: Basic $ (0.31) $ (0.36) Diluted $ (0.31) $ (0.36) Weighted - average number of common shares outstanding: Basic 8,337,119 8,263,223 Diluted 8,337,119 8,263,223

5 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, Net income (loss) attributable to common stockholders $ (2,584) $ (2,971) Add: Depreciation and amortization Interest expense Provision for (benefit from) income taxes 18 (56) Dividend on redeemable preferred stock EBITDA $ (2,159) $ (2,673) 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 K which was filed on March 30, 2017.