HOUSTON, March 29, 2018 (GLOBE NEWSWIRE) -- American Electric Technologies, Inc. (NASDAQ:AETI), a leading supplier of power delivery solutions for the global energy industry, today announced its fourth quarter and fiscal year 2017 financial results.
AETI announced revenue for the quarter of $12.9 million, up 37% from the $9.4 million reported in the fourth quarter of 2016 and down 3% compared with the third quarter of 2017.
The company’s revenue increase in the quarter was driven by strong growth in the oil & gas sector, which saw a revenue increase of 200% versus the fourth quarter of 2016 but a decline of 16% from the third quarter of 2017.
For the year, AETI revenues were $47.1M, up 25% from 2016, primarily due to growth in the midstream and downstream oil and gas sectors.
EBITDA in the quarter (a non-U.S. GAAP measure) improved by $0.5 million to a loss of $0.1 million, up from a loss of $1.1 million in the fourth quarter of 2016 and up $0.5 million from the $0.6 million loss reported in the third quarter of 2017.
Net income in the quarter was $2.3 million, up from a $1.8 million loss in the fourth quarter of 2016 and up from $1.1 million loss in the third quarter of 2017. Net income for the quarter was favorably impacted by a one-time, non-cash benefit of $2.8 million resulting from the utilization of fully reserved tax assets to offset tax liabilities related to the Company's non-US subsidiary and joint venture and based on the recently passed Tax Cuts and Jobs Act.
The company showed a $4.8 million improvement in annual net income to a loss of $2.6 million in 2017, up from a loss of $7.4 million in 2016.
“As we continue to execute on our growth strategy, results for both the fourth quarter and the year show we’re heading in the right direction,” said Charles Dauber, AETI president and chief executive officer. “Although we continue to face challenging conditions in our core markets, I am proud of advances our company and employees accomplished in 2017.”
The company reported quarter ending backlog of $18.9 million, down 20% from the $23.5 reported at the end of the third quarter of 2017, primarily due to delayed project awards in the midstream oil and gas sector.
Conference Call
AETI will conduct a conference call at 11 a.m. EDT on March 29, 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 753620, in the United States and Canada. International callers should dial +1 323-794-2095 passcode 753620.
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.
Investor Contact:
American Electric Technologies, Inc.
Bill Brod
713-644-8182
investorrelations@aeti.com
| American Electric Technologies, Inc. and Subsidiaries | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (in thousands, except share and per share data) | ||||||||
| December 31, | December 31, | |||||||
| 2017 | 2016 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 2,289 | $ | 1,618 | ||||
| Restricted short-term investments | 50 | 507 | ||||||
| Accounts receivable-trade, net of allowance of $135 and $204 at December 31, 2017 and December 31, 2016 | 6,061 | 6,717 | ||||||
| Inventories, net of allowance of $78 and $60 at both December 31, 2017 and December 31, 2016 | 1,327 | 1,181 | ||||||
| Cost and estimated earnings in excess of billings on uncompleted contracts | 6,434 | 5,829 | ||||||
| Prepaid expenses and other current assets | 534 | 349 | ||||||
| Total current assets | 16,695 | 16,201 | ||||||
| Property, plant and equipment, net | 6,920 | 7,298 | ||||||
| Advances to and investments in foreign joint ventures | 10,947 | 10,663 | ||||||
| Retainage receivable | 785 | 649 | ||||||
| Intangibles | 458 | 527 | ||||||
| Other assets | 116 | 46 | ||||||
| Total assets | $ | 35,921 | $ | 35,384 | ||||
| Liabilities, Convertible Preferred Stock and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Revolving line of credit | $ | - | $ | 1,500 | ||||
| Current portion of long-term note payable | 270 | 300 | ||||||
| Short-term note payable | 354 | - | ||||||
| Accounts payable and other accrued expenses | 12,335 | 9,798 | ||||||
| Accrued payroll and benefits | 912 | 1,093 | ||||||
| Billings in excess of costs and estimated earnings on uncompleted contracts | 1,792 | 208 | ||||||
| Total current liabilities | 15,663 | 12,899 | ||||||
| Long-term note payable, net | 5,524 | 3,900 | ||||||
| Deferred compensation | 213 | 260 | ||||||
| Deferred income taxes | - | 2,824 | ||||||
| Total liabilities | 21,400 | 19,883 | ||||||
| Convertible preferred stock: | ||||||||
| Redeemable convertible preferred stock, Series A, net of discount of $562 at December 31, 2017 and $617 at December 31, 2016; $0.001 par value, 1,000,000 shares authorized, issued and outstanding at December 31, 2017 and December 31, 2016 | 4,438 | 4,383 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock; $0.001 par value, 50,000,000 shares authorized, 8,850,532 and 8,499,508 shares issued and 8,669,650 and 8,335,968 shares outstanding at December 31, 2017 and December 31, 2016 | 9 | 8 | ||||||
| Treasury stock, at cost 180,882 shares at December 31, 2017 and 163,540 shares at December 31, 2016 | (916 | ) | (863 | ) | ||||
| Additional paid-in capital | 13,811 | 12,613 | ||||||
| Accumulated other comprehensive income | 401 | (2 | ) | |||||
| Retained (deficit) earnings; including accumulated statutory reserves in equity method investments of $2,809 and $2,887 at December 31, 2017 and December 31, 2016 | (3,222 | ) | (638 | ) | ||||
| Total stockholders’ equity | 10,083 | 11,118 | ||||||
| Total liabilities, convertible preferred stock and stockholders’ equity | $ | 35,921 | $ | 35,384 | ||||
| American Electric Technologies, Inc. and Subsidiaries | |||||||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||||
| Unaudited | |||||||||||||||
| (in thousands, except share and per share data) | |||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||||
| Net sales | $ | 12,872 | $ | 9,397 | $ | 47,130 | $ | 37,812 | |||||||
| Cost of sales | 11,780 | 9,247 | 44,702 | 36,796 | |||||||||||
| Gross profit | 1,092 | 150 | 2,428 | 1,016 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 43 | 98 | 280 | 962 | |||||||||||
| Selling and marketing | 513 | 422 | 2,465 | 2,181 | |||||||||||
| General and administrative | 1,078 | 1,328 | 4,194 | 5,242 | |||||||||||
| Total operating expenses | 1,634 | 1,848 | 6,939 | 8,385 | |||||||||||
| Loss from operations | (542 | ) | (1,698 | ) | (4,511 | ) | (7,369 | ) | |||||||
| Net equity income (loss) from foreign joint ventures’ operations: | |||||||||||||||
| Equity income (loss) from foreign joint ventures’ operations | 372 | 162 | 656 | 529 | |||||||||||
| Foreign joint ventures’ operations related expenses | (55 | ) | (43 | ) | (250 | ) | (245 | ) | |||||||
| Net equity income from foreign joint ventures’ operations | 317 | 119 | 406 | 284 | |||||||||||
| Loss from operations and net equity income from foreign joint ventures’ operations | (225 | ) | (1,579 | ) | (4,105 | ) | (7,085 | ) | |||||||
| Other income (expense): | |||||||||||||||
| Interest expense and other, net | (281 | ) | (131 | ) | (1,078 | ) | 69 | ||||||||
| Loss before income taxes | (506 | ) | (1,710 | ) | (5,183 | ) | (7,016 | ) | |||||||
| Provision for (benefit from) income taxes | (2,872 | ) | (6 | ) | (2,955 | ) | 44 | ||||||||
| Net income (loss) before dividends on redeemable convertible preferred stock | 2,366 | (1,704 | ) | (2,228 | ) | (7,060 | ) | ||||||||
| Dividends on redeemable convertible preferred stock | (89 | ) | (88 | ) | (356 | ) | (353 | ) | |||||||
| Net income (loss) attributable to common stockholders | $ | 2,277 | $ | (1,792 | ) | $ | (2,584 | ) | $ | (7,413 | ) | ||||
| Earnings (loss) per common share: | |||||||||||||||
| Basic | $ | 0.26 | $ | (0.21 | ) | $ | (0.30 | ) | $ | (0.89 | ) | ||||
| Diluted | $ | 0.26 | $ | (0.21 | ) | $ | (0.30 | ) | $ | (0.89 | ) | ||||
| Weighted - average number of common shares outstanding: | |||||||||||||||
| Basic | 8,666,034 | 8,337,426 | 8,525,645 | 8,305,764 | |||||||||||
| Diluted | 8,666,034 | 8,337,426 | 8,525,645 | 8,305,764 | |||||||||||
| 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 December 31, | Twelve Months Ended December 31, | ||||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||||
| Net income (loss) attributable to common stockholders | $ | 2,277 | $ | (1,792 | ) | $ | (2,584 | ) | $ | (7,413 | ) | ||||
| Add: Depreciation and amortization | 201 | 217 | 841 | 877 | |||||||||||
| Interest expense | 251 | 78 | 871 | 251 | |||||||||||
| Provision for (benefit from) income taxes | (2,872 | ) | (6 | ) | (2,955 | ) | 44 | ||||||||
| Dividend on redeemable preferred stock | 89 | 88 | 356 | 353 | |||||||||||
| EBITDA | $ | (54 | ) | $ | (1,415 | ) | $ | (3,471 | ) | $ | (5,888 | ) | |||
| 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 2016 10-K which was filed on March 30, 2017. | |||||||||||||||