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Profile:Global Power Equipment Group Inc. is a global designer, engineer and manufacturer of a comprehensive portfolio of equipment for gas turbine power plants The Company`s equipment is installed in power plants in more than 30 countries on six continents. In addition, the Company provides its customers with value-added services including engineering, retrofit and upgrade, and maintenance and repair. The Company sells its products to the gas turbine power generation market. Its products are critical to the efficient operation of gas turbine power plants and are highly engineered to meet customer-specific requirements. The Company`s products include heat recovery steam generators, filter houses, inlet systems, gas and steam turbine enclosures, exhaust systems, diverter dampers and specialty boilers and related products. The Company markets and sells its products globally under the Deltak, Braden and Consolidated Fabricators brand names through its worldwide sales network.
http://www.globalpowerequipment.com/
http://www.globalpowerequipment.com/
Global Power Equipment Group Inc. Posts $0.25 EPS for Third Quarter
EBITDA Doubles to $22.5 Million
Strong Cash Flow Eliminates Revolver Debt
TULSA, Okla.--(BUSINESS WIRE)--Oct. 29, 2001--Global Power Equipment Group Inc. (NYSE: GEG - news), a leading design, engineering and fabrication firm providing a broad array of equipment and services to diversified global companies engaged in the power and process industries, today reported financial results for the third quarter and nine-month period ended September 29, 2001.
Financial Results
Revenues for the third quarter of 2001 grew 80 percent to $180.8 million over the $100.2 million in last year`s comparable period. Revenues from the company`s heat recovery equipment segment increased 57 percent over last year`s third quarter and comprised 59 percent of total revenues. Revenues for the company`s auxiliary power equipment segment rose 128 percent over the third quarter last year. Organic growth accounted for 63 percent of the increase in revenues in the auxiliary power segment for the period.
Gross profit for the third quarter increased to $31.5 million from $16.7 million in the period last year, an increase of 88 percent. The company`s gross profit margin of 17.4 percent for the most recent quarter was increased from the year ago margin of 16.7 percent due to cost management and the overall sales mix. The margin for the most recent period was down slightly from the immediate prior quarter of 18.1 percent due to the product mix within the company`s auxiliary power segment. Overall the gross profit margin reflected the mid-point of the range expected by the company.
Third quarter net income of $11.6 million produced fully diluted earnings per share for the third quarter of $0.25 per share on 45.7 million shares outstanding.
``We continued to successfully execute our business plan during the third quarter and we delivered results consistent with our objectives,`` stated Larry Edwards, Global Power Equipment Group`s chief executive officer. ``The markets we serve continue to be strong and our strategy to position our manufacturing resources in low-cost locations is one of the key drivers underlying our earnings growth. We strongly believe that our superior engineering and global sourcing model will continue to serve us and our shareholders very well as international demand for new gas-fired power plants increases in the years ahead.``
Revenues for the nine-month period ended September 29, 2001 grew 67 percent to $508.4 million over the $304.2 million in the same period last year. Year-to-date revenues from the company`s heat recovery equipment segment increased 58 percent over the same period last year and comprised 61 percent of total revenues. Revenues for the company`s auxiliary power equipment segment rose 84 percent over the same period last year and represented 39 percent of total revenues for the period.
The company posted EBITDA (earnings before interest, taxes, depreciation and amortization) of $22.5 million for the third quarter, over double the adjusted EBITDA of $10.5 million for the same period last year. Adjusted EBITDA for the nine-month period ended September 29, 2001, totaled $62.5 million, an increase of 80 percent over the comparable nine month 2000 adjusted figure of $34.7 million. Adjusted figures reflect the elimination of recapitalization, IPO-related and extraordinary charges.
``Our strong operating cash flow permitted us to eliminate our borrowings under our revolver during the third quarter,`` stated Mike Hackner, Global Power Equipment Group`s chief financial officer. ``Given our limited requirement for capital expenditures, going forward we continue to apply cash generated from operations toward debt reduction and to pursue strategic acquisitions.``
About Global Power
Oklahoma-based Global Power Equipment Group Inc. (NYSE: GEG - news) is a global designer, engineer and fabricator of equipment for gas turbine power plants. The company markets its products under the Deltak, Braden, and Consolidated Fabricators brands and also offers value-added services including engineering, retrofit and upgrade, and maintenance and repair. Global Power Equipment Group`s equipment is installed in power plants in more than 30 countries on six continents, giving it what it believes to be one of the largest installed bases of equipment for gas turbine power plants. Global Power Equipment Group maintains a web site at www.globalpower.com.
Statements contained in this release, including, but not limited to, those regarding anticipated operating results, may be forward-looking statements within the meaning of U.S. federal securities laws. Actual results may differ materially from those expressed or implied in such statements. Information concerning some of the factors that could cause actual results to differ materially from those in, or implied by, the forward-looking statements are set forth under ``Risk Factors`` in Global Power`s Form S-1, and in our 10-Q for the period ending June 30, 2001, on file with the U.S. Securities and Exchange Commission.
GLOBAL POWER EQUIPMENT GROUP INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
Sept. 29, Sept. 23, Sept. 29, Sept. 23,
2001 2000 2001 2000
---- ---- ---- ----
(unaudited) (unaudited) (unaudited)(unaudited)
Revenues $180,757 $100,217 $508,362 $304,198
Cost of sales 149,230 83,479 419,414 252,135
-------- -------- -------- --------
Gross profit 31,527 16,738 88,948 52,063
17.4% 16.7% 17.5% 17.1%
Selling and administrative
expenses 9,816 6,807 28,739 19,083
Recapitalization expense - 38,114 - 38,114
Amortization expense 435 260 1,282 778
-------- -------- -------- --------
Operating income (loss) 21,276 (28,443) 58,927 (5,912)
Interest expense, net 2,331 3,945 14,714 4,947
-------- -------- -------- --------
Income (loss) before
income taxes and
extraordinary loss 18,945 (32,388) 44,213 (10,859)
Income tax
provision (benefit) 7,389 (493) 11,444 (305)
Income tax benefit from
tax status change - - (88,000) -
-------- -------- -------- --------
Income (loss) before
extraordinary loss 11,556 (31,895) 120,769 (10,554)
Extraordinary loss from
debt extinguishment,
net of tax - 1,536 18,060 1,536
-------- -------- -------- --------
Net income (loss) 11,556 (33,431) 102,709 (12,090)
Preferred dividend - 1,345 2,947 1,345
-------- -------- -------- --------
Net income (loss)
available to common
shareholders $ 11,556 $(34,776) $ 99,762 $(13,435)
======== ======== ======== ========
Basic income per
common share
Weighted average shares
outstanding 43,953 282,884 37,710 516,573
Basic income per
common share
Income before extraordinary
loss $ 0.26 $ (0.12) $ 3.12 $ (0.02)
Extraordinary loss - (0.01) (0.48) -
-------- -------- -------- --------
Net income available to
common stockholders $ 0.26 $ (0.13) $ 2.64 $ (0.02)
======== ======== ======== ========
Diluted income per common share
Fully diluted shares
outstanding 45,703 282,884 39,437 516,573
Diluted income per
common share
Income before
extraordinary loss $ 0.25 $ (0.12) $ 2.99 $ (0.02)
Extraordinary loss - (0.01) (0.46) -
-------- -------- -------- --------
Net income available
to common stockholders $ 0.25 $ (0.13) $ 2.53 $ (0.02)
======== ======== ======== ========
GLOBAL POWER EQUIPMENT GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 29, December 30,
2001 2000
---- ----
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 3,414 $ 26,308
Accounts receivable, net of
allowance of $2,257 and $1,841 101,065 67,798
Inventories 11,753 9,738
Costs and estimated earnings
in excess of billings 78,952 65,260
Deferred tax assets 17,391
Other current assets 4,587 1,833
------- --------
Total current assets 217,162 170,937
Property, plant and equipment, net 26,683 19,433
Deferred tax assets 72,427 -
Goodwill, net 45,433 45,879
Other assets 3,307 9,444
-------- --------
Total assets $365,012 $245,693
======== ========
LIABILITIES AND EQUITY (DEFICIT)
Current liabilities:
Current maturities of long-term debt $ 15,504 $ 3,963
Accounts payable 24,368 38,055
Accrued compensation
and employee benefits 8,462 8,282
Accrued warranty 14,536 9,720
Billings in excess of costs
and estimated earnings 154,938 119,110
Other current liabilities 5,458 9,002
-------- --------
Total current liabilities 223,266 188,132
Long-term debt, net of current maturities 82,341 215,131
Commitments and contingencies - -
Members` equity (deficit) - (157,570)
Stockholders` equity
Commmon Stock 440 -
Additional paid-in capital (27,973) -
Accumulated comprehensive income (loss) (284) -
Retained earnings 87,222 -
-------- --------
Total stockholders` equity 59,405 -
-------- --------
Total Liabilities and Equity $365,012 $245,693
======== ========
--------------------------------------------------------------------------------
Contact:
Global Power Equipment Group Inc., Tulsa
Bob Zwerneman, 918/274-2398
EBITDA Doubles to $22.5 Million
Strong Cash Flow Eliminates Revolver Debt
TULSA, Okla.--(BUSINESS WIRE)--Oct. 29, 2001--Global Power Equipment Group Inc. (NYSE: GEG - news), a leading design, engineering and fabrication firm providing a broad array of equipment and services to diversified global companies engaged in the power and process industries, today reported financial results for the third quarter and nine-month period ended September 29, 2001.
Financial Results
Revenues for the third quarter of 2001 grew 80 percent to $180.8 million over the $100.2 million in last year`s comparable period. Revenues from the company`s heat recovery equipment segment increased 57 percent over last year`s third quarter and comprised 59 percent of total revenues. Revenues for the company`s auxiliary power equipment segment rose 128 percent over the third quarter last year. Organic growth accounted for 63 percent of the increase in revenues in the auxiliary power segment for the period.
Gross profit for the third quarter increased to $31.5 million from $16.7 million in the period last year, an increase of 88 percent. The company`s gross profit margin of 17.4 percent for the most recent quarter was increased from the year ago margin of 16.7 percent due to cost management and the overall sales mix. The margin for the most recent period was down slightly from the immediate prior quarter of 18.1 percent due to the product mix within the company`s auxiliary power segment. Overall the gross profit margin reflected the mid-point of the range expected by the company.
Third quarter net income of $11.6 million produced fully diluted earnings per share for the third quarter of $0.25 per share on 45.7 million shares outstanding.
``We continued to successfully execute our business plan during the third quarter and we delivered results consistent with our objectives,`` stated Larry Edwards, Global Power Equipment Group`s chief executive officer. ``The markets we serve continue to be strong and our strategy to position our manufacturing resources in low-cost locations is one of the key drivers underlying our earnings growth. We strongly believe that our superior engineering and global sourcing model will continue to serve us and our shareholders very well as international demand for new gas-fired power plants increases in the years ahead.``
Revenues for the nine-month period ended September 29, 2001 grew 67 percent to $508.4 million over the $304.2 million in the same period last year. Year-to-date revenues from the company`s heat recovery equipment segment increased 58 percent over the same period last year and comprised 61 percent of total revenues. Revenues for the company`s auxiliary power equipment segment rose 84 percent over the same period last year and represented 39 percent of total revenues for the period.
The company posted EBITDA (earnings before interest, taxes, depreciation and amortization) of $22.5 million for the third quarter, over double the adjusted EBITDA of $10.5 million for the same period last year. Adjusted EBITDA for the nine-month period ended September 29, 2001, totaled $62.5 million, an increase of 80 percent over the comparable nine month 2000 adjusted figure of $34.7 million. Adjusted figures reflect the elimination of recapitalization, IPO-related and extraordinary charges.
``Our strong operating cash flow permitted us to eliminate our borrowings under our revolver during the third quarter,`` stated Mike Hackner, Global Power Equipment Group`s chief financial officer. ``Given our limited requirement for capital expenditures, going forward we continue to apply cash generated from operations toward debt reduction and to pursue strategic acquisitions.``
About Global Power
Oklahoma-based Global Power Equipment Group Inc. (NYSE: GEG - news) is a global designer, engineer and fabricator of equipment for gas turbine power plants. The company markets its products under the Deltak, Braden, and Consolidated Fabricators brands and also offers value-added services including engineering, retrofit and upgrade, and maintenance and repair. Global Power Equipment Group`s equipment is installed in power plants in more than 30 countries on six continents, giving it what it believes to be one of the largest installed bases of equipment for gas turbine power plants. Global Power Equipment Group maintains a web site at www.globalpower.com.
Statements contained in this release, including, but not limited to, those regarding anticipated operating results, may be forward-looking statements within the meaning of U.S. federal securities laws. Actual results may differ materially from those expressed or implied in such statements. Information concerning some of the factors that could cause actual results to differ materially from those in, or implied by, the forward-looking statements are set forth under ``Risk Factors`` in Global Power`s Form S-1, and in our 10-Q for the period ending June 30, 2001, on file with the U.S. Securities and Exchange Commission.
GLOBAL POWER EQUIPMENT GROUP INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
Sept. 29, Sept. 23, Sept. 29, Sept. 23,
2001 2000 2001 2000
---- ---- ---- ----
(unaudited) (unaudited) (unaudited)(unaudited)
Revenues $180,757 $100,217 $508,362 $304,198
Cost of sales 149,230 83,479 419,414 252,135
-------- -------- -------- --------
Gross profit 31,527 16,738 88,948 52,063
17.4% 16.7% 17.5% 17.1%
Selling and administrative
expenses 9,816 6,807 28,739 19,083
Recapitalization expense - 38,114 - 38,114
Amortization expense 435 260 1,282 778
-------- -------- -------- --------
Operating income (loss) 21,276 (28,443) 58,927 (5,912)
Interest expense, net 2,331 3,945 14,714 4,947
-------- -------- -------- --------
Income (loss) before
income taxes and
extraordinary loss 18,945 (32,388) 44,213 (10,859)
Income tax
provision (benefit) 7,389 (493) 11,444 (305)
Income tax benefit from
tax status change - - (88,000) -
-------- -------- -------- --------
Income (loss) before
extraordinary loss 11,556 (31,895) 120,769 (10,554)
Extraordinary loss from
debt extinguishment,
net of tax - 1,536 18,060 1,536
-------- -------- -------- --------
Net income (loss) 11,556 (33,431) 102,709 (12,090)
Preferred dividend - 1,345 2,947 1,345
-------- -------- -------- --------
Net income (loss)
available to common
shareholders $ 11,556 $(34,776) $ 99,762 $(13,435)
======== ======== ======== ========
Basic income per
common share
Weighted average shares
outstanding 43,953 282,884 37,710 516,573
Basic income per
common share
Income before extraordinary
loss $ 0.26 $ (0.12) $ 3.12 $ (0.02)
Extraordinary loss - (0.01) (0.48) -
-------- -------- -------- --------
Net income available to
common stockholders $ 0.26 $ (0.13) $ 2.64 $ (0.02)
======== ======== ======== ========
Diluted income per common share
Fully diluted shares
outstanding 45,703 282,884 39,437 516,573
Diluted income per
common share
Income before
extraordinary loss $ 0.25 $ (0.12) $ 2.99 $ (0.02)
Extraordinary loss - (0.01) (0.46) -
-------- -------- -------- --------
Net income available
to common stockholders $ 0.25 $ (0.13) $ 2.53 $ (0.02)
======== ======== ======== ========
GLOBAL POWER EQUIPMENT GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 29, December 30,
2001 2000
---- ----
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 3,414 $ 26,308
Accounts receivable, net of
allowance of $2,257 and $1,841 101,065 67,798
Inventories 11,753 9,738
Costs and estimated earnings
in excess of billings 78,952 65,260
Deferred tax assets 17,391
Other current assets 4,587 1,833
------- --------
Total current assets 217,162 170,937
Property, plant and equipment, net 26,683 19,433
Deferred tax assets 72,427 -
Goodwill, net 45,433 45,879
Other assets 3,307 9,444
-------- --------
Total assets $365,012 $245,693
======== ========
LIABILITIES AND EQUITY (DEFICIT)
Current liabilities:
Current maturities of long-term debt $ 15,504 $ 3,963
Accounts payable 24,368 38,055
Accrued compensation
and employee benefits 8,462 8,282
Accrued warranty 14,536 9,720
Billings in excess of costs
and estimated earnings 154,938 119,110
Other current liabilities 5,458 9,002
-------- --------
Total current liabilities 223,266 188,132
Long-term debt, net of current maturities 82,341 215,131
Commitments and contingencies - -
Members` equity (deficit) - (157,570)
Stockholders` equity
Commmon Stock 440 -
Additional paid-in capital (27,973) -
Accumulated comprehensive income (loss) (284) -
Retained earnings 87,222 -
-------- --------
Total stockholders` equity 59,405 -
-------- --------
Total Liabilities and Equity $365,012 $245,693
======== ========
--------------------------------------------------------------------------------
Contact:
Global Power Equipment Group Inc., Tulsa
Bob Zwerneman, 918/274-2398
Global Power Equipment Group Raises Fourth-Quarter 2001 Earnings Prospects
TULSA, Okla.--(BUSINESS WIRE)--Dec. 3, 2001--Global Power Equipment Group Inc. (NYSE: GEG - news), a leading design, engineering and fabrication firm providing a broad array of equipment and services to diversified global companies engaged in the power and process industries, today announced that the company expects to post earnings for the fourth fiscal quarter of 2001 of between $0.32 and $0.35 per share, or $0.08 to $0.11 per share higher than the current consensus of analysts.
The Company based its revised earnings expectations upon actual results through the first two months of the current fiscal quarter and work in-process that will be recorded as revenue in December. As a result of the increase in the current quarter`s anticipated results, the Company expects earnings for fiscal year 2001 will range between $0.99 and $1.02 per share based upon revenues of between $700 to $710 million. Although currently under review, the Company has not changed its previously stated guidance for fiscal year 2002.
Commenting on the revised earnings prospects, Larry Edwards, Global Power Equipment Group`s chief executive officer, stated: ``Our business remains stronger than even we had anticipated and we are very pleased with the performance in both of our operating segments. We look forward to discussing our results, current initiatives and the outlook for 2002 and beyond after the close of the current quarter.``
About Global Power Equipment Group
Oklahoma-based Global Power Equipment Group Inc. (NYSE: GEG - news) is a leading design, engineering and fabricator of equipment for gas turbine power plants. The Company markets its products under the Deltak, Braden, and Consolidated Fabricators brands and also offers value-added services including engineering, retrofit and upgrade, and maintenance and repair. Global Power Equipment Group`s equipment is installed in power plants in more than 30 countries on six continents, giving it what it believes to be one of the largest installed bases of equipment for gas-fired turbine power plants. Additional information about Global Power Equipment Group may be found at www.globalpower.com.
Statements contained in this release regarding the Company`s or management`s intentions, beliefs, expectations, or predictions for the future, including, but not limited to, those regarding anticipated operating results, are forward-looking statements within the meaning of U.S. federal securities laws and are subject to a number of risks, assumptions and uncertainties that could cause the Company`s actual results to differ materially from those projected. Information concerning some of the factors that could cause actual results to differ materially from those in, or implied by, the forward-looking statements are set forth under ``Risk Factors`` in the Company`s Registration Statement on Form S-1 (No. 333-56832), our 10-Q for the quarterly period ending September 29, 2001, and other reports on file with the U.S. Securities and Exchange Commission.
--------------------------------------------------------------------------------
Contact:
Global Power Equipment Group Inc.
Bob Zwerneman, 918/274-2398
TULSA, Okla.--(BUSINESS WIRE)--Dec. 3, 2001--Global Power Equipment Group Inc. (NYSE: GEG - news), a leading design, engineering and fabrication firm providing a broad array of equipment and services to diversified global companies engaged in the power and process industries, today announced that the company expects to post earnings for the fourth fiscal quarter of 2001 of between $0.32 and $0.35 per share, or $0.08 to $0.11 per share higher than the current consensus of analysts.
The Company based its revised earnings expectations upon actual results through the first two months of the current fiscal quarter and work in-process that will be recorded as revenue in December. As a result of the increase in the current quarter`s anticipated results, the Company expects earnings for fiscal year 2001 will range between $0.99 and $1.02 per share based upon revenues of between $700 to $710 million. Although currently under review, the Company has not changed its previously stated guidance for fiscal year 2002.
Commenting on the revised earnings prospects, Larry Edwards, Global Power Equipment Group`s chief executive officer, stated: ``Our business remains stronger than even we had anticipated and we are very pleased with the performance in both of our operating segments. We look forward to discussing our results, current initiatives and the outlook for 2002 and beyond after the close of the current quarter.``
About Global Power Equipment Group
Oklahoma-based Global Power Equipment Group Inc. (NYSE: GEG - news) is a leading design, engineering and fabricator of equipment for gas turbine power plants. The Company markets its products under the Deltak, Braden, and Consolidated Fabricators brands and also offers value-added services including engineering, retrofit and upgrade, and maintenance and repair. Global Power Equipment Group`s equipment is installed in power plants in more than 30 countries on six continents, giving it what it believes to be one of the largest installed bases of equipment for gas-fired turbine power plants. Additional information about Global Power Equipment Group may be found at www.globalpower.com.
Statements contained in this release regarding the Company`s or management`s intentions, beliefs, expectations, or predictions for the future, including, but not limited to, those regarding anticipated operating results, are forward-looking statements within the meaning of U.S. federal securities laws and are subject to a number of risks, assumptions and uncertainties that could cause the Company`s actual results to differ materially from those projected. Information concerning some of the factors that could cause actual results to differ materially from those in, or implied by, the forward-looking statements are set forth under ``Risk Factors`` in the Company`s Registration Statement on Form S-1 (No. 333-56832), our 10-Q for the quarterly period ending September 29, 2001, and other reports on file with the U.S. Securities and Exchange Commission.
--------------------------------------------------------------------------------
Contact:
Global Power Equipment Group Inc.
Bob Zwerneman, 918/274-2398
Global Power hikes fourth-quarter earnings outlook
TULSA, Okla., Dec 3 (Reuters) - Global Power Equipment Group Inc. (NYSE:GEG - news), a maker of equipment used by power companies, on Monday said its fourth-quarter earnings will beat current estimates by more than 30 percent amid stronger-than-expected business.
The Tulsa, Oklahoma-based company said it expects fourth-quarter earnings of 32 cents to 35 cents a share, compared with the current analysts` consensus estimate of 24 cents, as compiled by Thomson Financial/First Call.
As a result of the increase in the current quarter`s anticipated results, Global Power also raised its full-year earnings estimate to between 99 cents and $1.02 per share based on revenues of between $700 million and $710 million.
The company`s shares fell 84 cents, or 5.8 percent, to close at $13.55 on the New York Stock Exchange, before the earnings outlook was announced.
TULSA, Okla., Dec 3 (Reuters) - Global Power Equipment Group Inc. (NYSE:GEG - news), a maker of equipment used by power companies, on Monday said its fourth-quarter earnings will beat current estimates by more than 30 percent amid stronger-than-expected business.
The Tulsa, Oklahoma-based company said it expects fourth-quarter earnings of 32 cents to 35 cents a share, compared with the current analysts` consensus estimate of 24 cents, as compiled by Thomson Financial/First Call.
As a result of the increase in the current quarter`s anticipated results, Global Power also raised its full-year earnings estimate to between 99 cents and $1.02 per share based on revenues of between $700 million and $710 million.
The company`s shares fell 84 cents, or 5.8 percent, to close at $13.55 on the New York Stock Exchange, before the earnings outlook was announced.
Global Power ups, JD Edwards beats
By Barbara C. Costanza, CBS.MarketWatch.com
Last Update: 8:40 AM ET Dec. 4, 2001
Earnings advisories
After the market closed, Global Power Equipment Group (GEG: news, chart, profile) said it expects fourth-quarter earnings between 32 cents and 35 cents a share, while the four analysts polled by Thomson Financial/First Call currently anticipate a profit of 24 cents a share. The revision was based upon actual results for the first two months of the quarter and work in process that will be recorded as revenue in December. Fiscal 2001 profit is also expected to be higher, in the range of 99 cents to $1.02 a share. Analysts currently expect a profit of 91 cents for fiscal 2001. Revenue for the year will be between $700 million and $710 million. The company designs and makes equipment for gas turbine power plants. Shares closed down 84 cents to $13.55 ahead of the news.
http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yh…
By Barbara C. Costanza, CBS.MarketWatch.com
Last Update: 8:40 AM ET Dec. 4, 2001
Earnings advisories
After the market closed, Global Power Equipment Group (GEG: news, chart, profile) said it expects fourth-quarter earnings between 32 cents and 35 cents a share, while the four analysts polled by Thomson Financial/First Call currently anticipate a profit of 24 cents a share. The revision was based upon actual results for the first two months of the quarter and work in process that will be recorded as revenue in December. Fiscal 2001 profit is also expected to be higher, in the range of 99 cents to $1.02 a share. Analysts currently expect a profit of 91 cents for fiscal 2001. Revenue for the year will be between $700 million and $710 million. The company designs and makes equipment for gas turbine power plants. Shares closed down 84 cents to $13.55 ahead of the news.
http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yh…
Trading Spotlight
Global Power Equipment Group Inc. Reports Second Quarter EPS of $0.32
Company Reduces Debt by Nearly $43 Million During the Period
TULSA, Okla.--(BUSINESS WIRE)--July 29, 2002--Global Power Equipment Group Inc. (NYSE:GEG - News), a leading design, engineering and fabrication firm providing a broad array of equipment and services to diversified global companies engaged in the power and process industries, today reported financial results for the second quarter ended June 29, 2002.
Global Power Equipment Group reported earnings of $14.6 million, or $0.32 per diluted share, on revenues of $163 million for the second quarter of fiscal 2002. This compares to pro forma net earnings of $10.9 million, or $0.23 per diluted share, on revenues of $171 million for the second quarter of fiscal 2001.
For the six months ended June 29, 2002, the Company reported net earnings of $29.9 million, or $0.65 per diluted share, on revenues of $366 million. This compares to pro forma net earnings for the same period last year of $19.8 million, or $0.42 per diluted share, on revenues of $328 million.
The company`s gross profit margin for the most recent period was 22.0 percent compared to the year ago margin of 18.1 percent. For the first six months of 2002, the Company`s gross margin was 19.8 percent compared to 17.5 percent in the same period of 2001.
The company generated EBITDA (earnings before interest, taxes, depreciation and amortization) of $26.0 million for the second quarter, up 21 percent over adjusted EBITDA of $21.5 million for the same period in 2001.
From the end of March, the company reduced debt from $117.6 million to $74.9 million or by nearly $42.7 million.
"Our strong manufacturing performance continued to yield impressive financial results during the most recent quarter and allowed us to sharply reduce our debt," stated Larry Edwards, Global Power Equipment Group`s president and chief executive officer. "We continue to see increased activity in several markets outside of the United States, particularly in Europe and Asia. However, that activity has yet to reach a level sufficient to offset the reduced level of activity we are experiencing inside the United States. Cancellations of projects from our firm backlog have been minimal and a limited number of customers have pushed project development schedules into 2003. Announced deferrals of new power projects in the United States have adversely impacted our new order bookings. Because of these developments, we have tempered our expectations for the second half of this year."
At the end of the second quarter, the Company`s firm backlog totaled $423 million compared to $487 million at the end of March 2002 and $682 million at the end of June 2001. Approximately 25 percent of the Company`s bookings into firm backlog during the first six months have originated from projects outside the United States compared to approximately 8 percent during the same period last year.
Earnings Estimate
Based upon information management currently has evaluated, in conjunction with this release, management estimates 2002 earnings of between $0.94 to $0.98 per diluted share on sales of between $575 and $600 million. The Company further anticipates that free cash flow from operations during the second half of the current fiscal year will permit a further reduction in debt down to between $55 million and $60 million by year-end. The company establishes initial guidance for fiscal year 2003 of between $0.70 and $0.80 per diluted share on sales of between $470 and $525 million.
About Global Power
Oklahoma-based Global Power Equipment Group Inc. (NYSE:GEG - News) is a global designer, engineer and fabricator of equipment for gas turbine power plants. The company markets its products under the Deltak, Braden, and Consolidated Fabricators brands and also offers value-added services including engineering, retrofit and upgrade, and maintenance and repair. Global Power Equipment Group`s equipment is installed in power plants in more than 30 countries on six continents, giving it what it believes to be one of the largest installed bases of equipment for gas turbine power plants. Global Power Equipment Group maintains a web site at www.globalpower.com.
Statements contained in this release regarding the Company`s or management`s intentions, beliefs, expectations, or predictions for the future, including, but not limited to, those regarding anticipated operating results, are forward-looking statements within the meaning of U.S. federal securities laws and are subject to a number of risks, assumptions and uncertainties that could cause the Company`s actual results to differ materially from those projected. Information concerning some of the factors that could cause actual results to differ materially from those in, or implied by, the forward-looking statements are set forth under "Risk Factors" in the Company`s Form 10-K for the period ending December 29, 2001, and other reports on file with the U.S. Securities and Exchange Commission.
GLOBAL POWER EQUIPMENT GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
------------------ --------------------
June 29, June 30, June 29, June 30,
2002 2001 2002 2001
--------- -------- -------- ---------
Revenues $162,916 $171,435 $366,443 $327,605
Cost of sales 127,026 140,428 293,825 270,184
-------- -------- -------- --------
Gross profit 35,890 31,007 72,618 57,421
Selling and administrative
expenses 10,778 10,390 21,189 18,923
Amortization expense 43 450 87 847
-------- -------- -------- --------
Operating income 25,069 20,167 51,342 37,651
Interest expense, net 1,105 5,991 2,388 12,383
-------- -------- -------- --------
Income before income taxes
and extraordinary loss 23,964 14,176 48,954 25,268
Income tax provision 9,346 3,124 19,092 4,055
Income tax benefit from tax
status change -- (88,000) -- (88,000)
-------- -------- -------- --------
Income before extraordinary
loss 14,618 99,052 29,862 109,213
Extraordinary loss on debt
extinguishment, net of tax -- 18,060 -- 18,060
-------- -------- -------- --------
Net income 14,618 80,992 29,862 91,153
Preferred dividend -- (907) -- (2,947)
-------- -------- -------- --------
Net income available to
common stockholders $14,618 $80,085 $29,862 $88,206
======== ======== ======== ========
Basic income per common share
Weighted average shares
outstanding 43,953 37,480 43,953 34,503
Income before extraordinary
loss $0.33 $2.62 $0.68 $3.08
Extraordinary loss -- (0.48) -- (0.52)
-------- -------- -------- --------
Net income available to
common stockholders $0.33 $2.14 $0.68 $2.56
======== ======== ======== ========
Diluted income per common
share
Diluted shares outstanding 45,639 39,220 45,642 36,219
Income before extraordinary
loss $0.32 $2.50 $0.65 $2.93
Extraordinary loss -- (0.46) -- (0.50)
-------- -------- -------- --------
Net income available to
common stockholders $0.32 $2.04 $0.65 $2.43
======== ======== ======== ========
GLOBAL POWER EQUIPMENT GROUP INC.
EARNINGS AND EBITDA INFORMATION
2002 ACTUAL AND 2001 PRO FORMA
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
----------------- ----------------
June 29, June 30, June 29, June 30,
2002 2001 2002 2001
------- ------- ------- -------
Net income available to common
stockholders $14,618 $80,085 $29,862 $88,206
Add (Less):
Preferred dividend -- 907 -- 2,947
Extraordinary loss on debt
extinguishment, net of tax -- 18,060 -- 18,060
Income tax benefit from tax
status change -- (88,000) -- (88,000)
Reduced tax provision due to
non-taxable status prior to IPO -- (3,822) -- (8,607)
Pro forma effect of debt
restructuring -- 2,886 -- 6,394
IPO related compensation charge
and other -- 804 -- 804
------- ------- ------- -------
Pro forma net income available to
common stockholders $14,618 $10,920 $29,862 $19,804
======= ======= ======= =======
Pro forma basic income per common
share
Weighted average shares
outstanding 43,953 46,874 43,953 46,874
Net income available to common
stockholders $0.33 $0.23 $0.68 $0.42
======= ======= ======= =======
Pro forma diluted income per
common share
Diluted shares outstanding 45,639 46,874 45,642 46,874
Net income available to common
stockholders $0.32 $0.23 $0.65 $0.42
======= ======= ======= =======
EBITDA $25,982 $3,425 $53,145 $22,011
Add:
Extraordinary loss on debt
extinguishment, net of tax -- 18,060 -- 18,060
------- ------- ------- -------
Adjusted EBITDA $25,982 $21,485 $53,145 $40,071
======= ======= ======= =======
GLOBAL POWER EQUIPMENT GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 29, December 29,
2002 2001
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $18,383 $2,435
Accounts receivable, net of allowance of
$1,667 and $2,385 87,844 123,182
Inventories 7,003 5,973
Costs and estimated earnings in excess of
billings 113,922 131,355
Deferred tax assets 23,130 19,068
Other current assets 1,105 1,920
--------- ---------
Total current assets 251,387 283,933
Property, plant and equipment, net 27,309 27,810
Deferred tax assets 68,895 71,454
Goodwill, net 42,256 42,256
Other assets 5,378 5,178
--------- ---------
Total assets $395,225 $430,631
========= =========
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt $8,377 $15,505
Accounts payable 35,826 56,005
Accrued compensation and employee benefits 8,099 11,838
Accrued warranty 18,722 16,489
Billings in excess of costs and estimated
earnings 136,403 145,522
Other current liabilities 13,299 17,968
--------- ---------
Total current liabilities 220,726 263,327
Long-term debt, net of current maturities 66,545 90,124
Commitments and contingencies
Stockholders` equity
Common stock 440 440
Paid-in capital deficit (28,329) (28,329)
Accumulated comprehensive income (loss) 832 (80)
Retained earnings 135,011 105,149
--------- ---------
Total stockholders` equity 107,954 77,180
--------- ---------
Total liabilities and equity $395,225 $430,631
========= =========
--------------------------------------------------------------------------------
Contact:
Global Power Equipment Group Inc., Tulsa
Bob Zwerneman, 918/274-2398
Company Reduces Debt by Nearly $43 Million During the Period
TULSA, Okla.--(BUSINESS WIRE)--July 29, 2002--Global Power Equipment Group Inc. (NYSE:GEG - News), a leading design, engineering and fabrication firm providing a broad array of equipment and services to diversified global companies engaged in the power and process industries, today reported financial results for the second quarter ended June 29, 2002.
Global Power Equipment Group reported earnings of $14.6 million, or $0.32 per diluted share, on revenues of $163 million for the second quarter of fiscal 2002. This compares to pro forma net earnings of $10.9 million, or $0.23 per diluted share, on revenues of $171 million for the second quarter of fiscal 2001.
For the six months ended June 29, 2002, the Company reported net earnings of $29.9 million, or $0.65 per diluted share, on revenues of $366 million. This compares to pro forma net earnings for the same period last year of $19.8 million, or $0.42 per diluted share, on revenues of $328 million.
The company`s gross profit margin for the most recent period was 22.0 percent compared to the year ago margin of 18.1 percent. For the first six months of 2002, the Company`s gross margin was 19.8 percent compared to 17.5 percent in the same period of 2001.
The company generated EBITDA (earnings before interest, taxes, depreciation and amortization) of $26.0 million for the second quarter, up 21 percent over adjusted EBITDA of $21.5 million for the same period in 2001.
From the end of March, the company reduced debt from $117.6 million to $74.9 million or by nearly $42.7 million.
"Our strong manufacturing performance continued to yield impressive financial results during the most recent quarter and allowed us to sharply reduce our debt," stated Larry Edwards, Global Power Equipment Group`s president and chief executive officer. "We continue to see increased activity in several markets outside of the United States, particularly in Europe and Asia. However, that activity has yet to reach a level sufficient to offset the reduced level of activity we are experiencing inside the United States. Cancellations of projects from our firm backlog have been minimal and a limited number of customers have pushed project development schedules into 2003. Announced deferrals of new power projects in the United States have adversely impacted our new order bookings. Because of these developments, we have tempered our expectations for the second half of this year."
At the end of the second quarter, the Company`s firm backlog totaled $423 million compared to $487 million at the end of March 2002 and $682 million at the end of June 2001. Approximately 25 percent of the Company`s bookings into firm backlog during the first six months have originated from projects outside the United States compared to approximately 8 percent during the same period last year.
Earnings Estimate
Based upon information management currently has evaluated, in conjunction with this release, management estimates 2002 earnings of between $0.94 to $0.98 per diluted share on sales of between $575 and $600 million. The Company further anticipates that free cash flow from operations during the second half of the current fiscal year will permit a further reduction in debt down to between $55 million and $60 million by year-end. The company establishes initial guidance for fiscal year 2003 of between $0.70 and $0.80 per diluted share on sales of between $470 and $525 million.
About Global Power
Oklahoma-based Global Power Equipment Group Inc. (NYSE:GEG - News) is a global designer, engineer and fabricator of equipment for gas turbine power plants. The company markets its products under the Deltak, Braden, and Consolidated Fabricators brands and also offers value-added services including engineering, retrofit and upgrade, and maintenance and repair. Global Power Equipment Group`s equipment is installed in power plants in more than 30 countries on six continents, giving it what it believes to be one of the largest installed bases of equipment for gas turbine power plants. Global Power Equipment Group maintains a web site at www.globalpower.com.
Statements contained in this release regarding the Company`s or management`s intentions, beliefs, expectations, or predictions for the future, including, but not limited to, those regarding anticipated operating results, are forward-looking statements within the meaning of U.S. federal securities laws and are subject to a number of risks, assumptions and uncertainties that could cause the Company`s actual results to differ materially from those projected. Information concerning some of the factors that could cause actual results to differ materially from those in, or implied by, the forward-looking statements are set forth under "Risk Factors" in the Company`s Form 10-K for the period ending December 29, 2001, and other reports on file with the U.S. Securities and Exchange Commission.
GLOBAL POWER EQUIPMENT GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
------------------ --------------------
June 29, June 30, June 29, June 30,
2002 2001 2002 2001
--------- -------- -------- ---------
Revenues $162,916 $171,435 $366,443 $327,605
Cost of sales 127,026 140,428 293,825 270,184
-------- -------- -------- --------
Gross profit 35,890 31,007 72,618 57,421
Selling and administrative
expenses 10,778 10,390 21,189 18,923
Amortization expense 43 450 87 847
-------- -------- -------- --------
Operating income 25,069 20,167 51,342 37,651
Interest expense, net 1,105 5,991 2,388 12,383
-------- -------- -------- --------
Income before income taxes
and extraordinary loss 23,964 14,176 48,954 25,268
Income tax provision 9,346 3,124 19,092 4,055
Income tax benefit from tax
status change -- (88,000) -- (88,000)
-------- -------- -------- --------
Income before extraordinary
loss 14,618 99,052 29,862 109,213
Extraordinary loss on debt
extinguishment, net of tax -- 18,060 -- 18,060
-------- -------- -------- --------
Net income 14,618 80,992 29,862 91,153
Preferred dividend -- (907) -- (2,947)
-------- -------- -------- --------
Net income available to
common stockholders $14,618 $80,085 $29,862 $88,206
======== ======== ======== ========
Basic income per common share
Weighted average shares
outstanding 43,953 37,480 43,953 34,503
Income before extraordinary
loss $0.33 $2.62 $0.68 $3.08
Extraordinary loss -- (0.48) -- (0.52)
-------- -------- -------- --------
Net income available to
common stockholders $0.33 $2.14 $0.68 $2.56
======== ======== ======== ========
Diluted income per common
share
Diluted shares outstanding 45,639 39,220 45,642 36,219
Income before extraordinary
loss $0.32 $2.50 $0.65 $2.93
Extraordinary loss -- (0.46) -- (0.50)
-------- -------- -------- --------
Net income available to
common stockholders $0.32 $2.04 $0.65 $2.43
======== ======== ======== ========
GLOBAL POWER EQUIPMENT GROUP INC.
EARNINGS AND EBITDA INFORMATION
2002 ACTUAL AND 2001 PRO FORMA
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
----------------- ----------------
June 29, June 30, June 29, June 30,
2002 2001 2002 2001
------- ------- ------- -------
Net income available to common
stockholders $14,618 $80,085 $29,862 $88,206
Add (Less):
Preferred dividend -- 907 -- 2,947
Extraordinary loss on debt
extinguishment, net of tax -- 18,060 -- 18,060
Income tax benefit from tax
status change -- (88,000) -- (88,000)
Reduced tax provision due to
non-taxable status prior to IPO -- (3,822) -- (8,607)
Pro forma effect of debt
restructuring -- 2,886 -- 6,394
IPO related compensation charge
and other -- 804 -- 804
------- ------- ------- -------
Pro forma net income available to
common stockholders $14,618 $10,920 $29,862 $19,804
======= ======= ======= =======
Pro forma basic income per common
share
Weighted average shares
outstanding 43,953 46,874 43,953 46,874
Net income available to common
stockholders $0.33 $0.23 $0.68 $0.42
======= ======= ======= =======
Pro forma diluted income per
common share
Diluted shares outstanding 45,639 46,874 45,642 46,874
Net income available to common
stockholders $0.32 $0.23 $0.65 $0.42
======= ======= ======= =======
EBITDA $25,982 $3,425 $53,145 $22,011
Add:
Extraordinary loss on debt
extinguishment, net of tax -- 18,060 -- 18,060
------- ------- ------- -------
Adjusted EBITDA $25,982 $21,485 $53,145 $40,071
======= ======= ======= =======
GLOBAL POWER EQUIPMENT GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 29, December 29,
2002 2001
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $18,383 $2,435
Accounts receivable, net of allowance of
$1,667 and $2,385 87,844 123,182
Inventories 7,003 5,973
Costs and estimated earnings in excess of
billings 113,922 131,355
Deferred tax assets 23,130 19,068
Other current assets 1,105 1,920
--------- ---------
Total current assets 251,387 283,933
Property, plant and equipment, net 27,309 27,810
Deferred tax assets 68,895 71,454
Goodwill, net 42,256 42,256
Other assets 5,378 5,178
--------- ---------
Total assets $395,225 $430,631
========= =========
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt $8,377 $15,505
Accounts payable 35,826 56,005
Accrued compensation and employee benefits 8,099 11,838
Accrued warranty 18,722 16,489
Billings in excess of costs and estimated
earnings 136,403 145,522
Other current liabilities 13,299 17,968
--------- ---------
Total current liabilities 220,726 263,327
Long-term debt, net of current maturities 66,545 90,124
Commitments and contingencies
Stockholders` equity
Common stock 440 440
Paid-in capital deficit (28,329) (28,329)
Accumulated comprehensive income (loss) 832 (80)
Retained earnings 135,011 105,149
--------- ---------
Total stockholders` equity 107,954 77,180
--------- ---------
Total liabilities and equity $395,225 $430,631
========= =========
--------------------------------------------------------------------------------
Contact:
Global Power Equipment Group Inc., Tulsa
Bob Zwerneman, 918/274-2398
Global Power Equipment Group Inc. Reports Third Quarter EPS of $0.22
Monday October 28, 4:00 pm ET
Strong Cash Flow Allows Company to Further Reduce Debt
TULSA, Okla.--(BUSINESS WIRE)--Oct. 28, 2002--Global Power Equipment Group Inc. (NYSE:GEG - News), a leading design, engineering and fabrication firm providing a broad array of equipment and services to diversified global companies engaged in the power and process industries, today reported financial results for the third quarter ended September 28, 2002.
ADVERTISEMENT
Global Power Equipment Group reported earnings of $9.9 million, or $0.22 per diluted share, on revenues of $112.7 million for the third quarter of fiscal 2002. This compares to net earnings of $11.6 million, or $0.25 per diluted share, on revenues of $180.8 million for the third quarter of fiscal 2001.
For the nine months ended September 28, 2002, the Company reported net earnings of $39.8 million, or $0.87 per diluted share, on revenues of $479.1 million. This compares to pro forma net earnings for the same period last year of $31.4 million, or $0.67 per diluted share, on revenues of $508.4 million.
The Company`s gross profit for the most recent period totaled $28.5 million representing a 25.3 percent gross margin compared to the year ago gross margin of 17.4 percent. For the first nine months of 2002, the Company`s gross margin was 21.1 percent compared to 17.5 percent for the same period of 2001.
The Company generated EBITDA (earnings before interest, taxes, depreciation and amortization) of $18.3 million for the third quarter, down nearly 19 percent from the $22.5 million recorded during the same period in 2001. EBITDA for the first nine months of 2002 totaled $71.4 million compared to adjusted EBITDA of $62.5 million for the first nine months of 2001.
The Company reduced debt by $14.8 million during the third quarter bringing the year-to-date reduction to $45.5 million, including $8.6 million on the Company`s revolving credit facility. Global Power Equipment Group`s indebtedness stood at $60.1 million at the end of the third quarter representing a debt to capitalization ratio of 34 percent.
"Despite difficult market conditions, our impressive third quarter results allowed us to further reduce debt by nearly $15 million," stated Larry Edwards, Global Power Equipment Group`s president and chief executive officer. "Softness in the U.S. power business is causing an industry shake-out as several higher-cost suppliers are being forced from the marketplace. However, our strong operating model, coupled with cost management, helped us establish strong gross margins during the third quarter."
Mr. Edwards further stated, "We are actively pursuing essentially every gas turbine project around the world, with good success. However, much weaker market conditions in the United States power generation sector have impacted our 2003 expectations. Despite this change, we believe Global Power Equipment Group is uniquely positioned to benefit from the impending upturn in international markets during the next several years."
At the end of the third quarter, the Company`s firm backlog totaled $342 million compared to $423 million at the end of June 2002 and $689 million at the end of September 2001. Approximately 34 percent of the Company`s bookings into firm backlog during the first nine months have originated from projects outside the United States compared to approximately 11 percent during the same period last year.
Earnings Estimate
Based upon information management currently has evaluated, in conjunction with this release, management estimates 2002 earnings of between $0.94 to $0.98 per diluted share on sales of between $550 and $575 million.
The company now estimates it will post earnings of between $0.37 and $0.47 per diluted share on sales of between $350 and $400 million during fiscal year 2003.
About Global Power
Oklahoma based Global Power Equipment Group Inc. (NYSE:GEG - News) is a global designer, engineer and fabricator of equipment for gas turbine power plants. The company markets its products under the Deltak, Braden, and Consolidated Fabricators brands and also offers value-added services including engineering, retrofit and upgrade, and maintenance and repair. Global Power Equipment Group`s equipment is installed in power plants in more than 30 countries on six continents, giving it what it believes to be one of the largest installed bases of equipment for gas turbine power plants. Global Power Equipment Group maintains a web site at www.globalpower.com.
Statements contained in this release regarding the Company`s or management`s intentions, beliefs, expectations, or predictions for the future, including, but not limited to, those regarding anticipated operating results, are forward looking statements within the meaning of U.S. federal securities laws and are subject to a number of risks, assumptions and uncertainties that could cause the Company`s actual results to differ materially from those projected. Information concerning some of the factors that could cause actual results to differ materially from those in, or implied by, the forward looking statements are set forth under "Risk Factors" in the Company`s Form 10-K for the period ending December 28, 2001, and other reports on file with the U.S. Securities and Exchange Commission.
-0-
GLOBAL POWER EQUIPMENT GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 28, December 29,
2002 2001
------------- ------------
ASSETS
Current assets:
Cash and cash equivalents $10,180 $2,435
Accounts receivable, net of allowance of
$1,701 and $2,385 114,147 123,182
Inventories 5,874 5,973
Costs and estimated earnings in excess of
billings 77,457 131,355
Deferred tax assets 20,627 19,068
Other current assets 2,033 1,920
------------- ------------
Total current assets 230,318 283,933
Property, plant and equipment, net 26,094 27,810
Deferred tax assets 67,486 71,454
Goodwill, net 45,000 45,000
Other assets 1,431 2,434
------------- ------------
Total assets $370,329 $430,631
============= ============
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt $57 $15,505
Accounts payable 25,875 56,005
Accrued compensation and employee benefits 8,616 11,838
Accrued warranty 17,776 16,489
Billings in excess of costs and estimated
earnings 126,370 145,522
Other current liabilities 14,342 17,968
------------- ------------
Total current liabilities 193,036 263,327
Long-term debt, net of current maturities 60,034 90,124
Commitments and contingencies
Stockholders` equity
Common stock 440 440
Paid-in capital deficit (28,329) (28,329)
Accumulated comprehensive income (loss) 248 (80)
Retained earnings 144,900 105,149
------------- ------------
Total stockholders` equity 117,259 77,180
------------- ------------
Total liabilities and equity $370,329 $430,631
============= ============
GLOBAL POWER EQUIPMENT GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
------------------- -------------------
September September September September
28, 29, 28, 29,
2002 2001 2002 2001
--------- --------- --------- ---------
Revenues $112,673 $180,757 $479,116 $508,362
Cost of sales 84,175 149,230 378,000 419,414
--------- --------- --------- ---------
Gross profit 28,498 31,527 101,116 88,948
Selling and administrative
expenses 11,138 9,816 32,414 28,739
Amortization expense -- 435 -- 1,282
--------- --------- --------- ---------
Operating income 17,360 21,276 68,702 58,927
Interest expense, net 1,149 2,331 3,537 14,714
--------- --------- --------- ---------
Income before income taxes
and extraordinary loss 16,211 18,945 65,165 44,213
Income tax provision 6,322 7,389 25,414 11,444
Income tax benefit from tax
status change -- -- -- (88,000)
--------- --------- --------- ---------
Income before extraordinary
loss 9,889 11,556 39,751 120,769
Extraordinary loss on debt
extinguishment, net of tax -- -- -- 18,060
--------- --------- --------- ---------
Net income 9,889 11,556 39,751 102,709
Preferred dividend -- -- -- (2,947)
--------- --------- --------- ---------
Net income available to
common stockholders $9,889 $11,556 $39,751 $99,762
========= ========= ========= =========
Basic income per common share
Weighted average shares
outstanding 43,953 43,953 43,953 37,710
Income before extraordinary
loss $0.22 $0.26 $0.90 $3.12
Extraordinary loss -- -- -- (0.48)
--------- --------- --------- ---------
Net income available to
common stockholders $0.22 $0.26 $0.90 $2.64
========= ========= ========= =========
Diluted income per common share
Diluted shares outstanding 45,604 45,703 45,633 39,438
Income before extraordinary
loss $0.22 $0.25 $0.87 $2.99
Extraordinary loss -- -- -- (0.46)
--------- --------- --------- ---------
Net income available to
common stockholders $0.22 $0.25 $0.87 $2.53
========= ========= ========= =========
GLOBAL POWER EQUIPMENT GROUP INC.
EARNINGS AND EBITDA INFORMATION
2002 ACTUAL AND 2001 PRO FORMA
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
------------------- -------------------
September September September September
28, 29, 28, 29,
2002 2001 2002 2001
--------- --------- --------- ---------
Net income available to common
stockholders $9,889 $11,556 $39,751 $99,762
Add (Less):
Preferred dividend -- -- -- 2,947
Extraordinary loss on debt
extinguishment, net of tax -- -- -- 18,060
Income tax benefit from tax
status change -- -- -- (88,000)
Reduced tax provision due to
non-taxable status prior to
IPO -- -- -- (8,607)
Pro forma effect of debt
restructuring -- -- -- 6,394
IPO related compensation
charge and other -- -- -- 804
--------- --------- --------- ---------
Pro forma net income available
to common stockholders $9,889 $11,556 $39,751 $31,360
========= ========= ========= =========
Pro forma basic income per
common share
Weighted average shares
outstanding 43,953 43,953 43,953 43,953
Net income available to
common stockholders $0.22 $0.26 $0.90 $0.71
========= ========= ========= =========
Pro forma diluted income per
common share
Diluted shares outstanding 45,604 45,703 45,633 46,874
Net income available to
common stockholders $0.22 $0.25 $0.87 $0.67
========= ========= ========= =========
EBITDA $18,291 $22,462 $71,436 $44,473
Add:
Extraordinary loss on debt
extinguishment, net of tax -- -- -- 18,060
--------- --------- --------- ---------
Adjusted EBITDA $18,291 $22,462 $71,436 $62,533
========= ========= ========= =========
--------------------------------------------------------------------------------
Contact:
Global Power Equipment Group Inc., Tulsa
Bob Zwerneman, 918/274-2398
--------------------------------------------------------------------------------
Source: Global Power Equipment Group Inc.
Monday October 28, 4:00 pm ET
Strong Cash Flow Allows Company to Further Reduce Debt
TULSA, Okla.--(BUSINESS WIRE)--Oct. 28, 2002--Global Power Equipment Group Inc. (NYSE:GEG - News), a leading design, engineering and fabrication firm providing a broad array of equipment and services to diversified global companies engaged in the power and process industries, today reported financial results for the third quarter ended September 28, 2002.
ADVERTISEMENT
Global Power Equipment Group reported earnings of $9.9 million, or $0.22 per diluted share, on revenues of $112.7 million for the third quarter of fiscal 2002. This compares to net earnings of $11.6 million, or $0.25 per diluted share, on revenues of $180.8 million for the third quarter of fiscal 2001.
For the nine months ended September 28, 2002, the Company reported net earnings of $39.8 million, or $0.87 per diluted share, on revenues of $479.1 million. This compares to pro forma net earnings for the same period last year of $31.4 million, or $0.67 per diluted share, on revenues of $508.4 million.
The Company`s gross profit for the most recent period totaled $28.5 million representing a 25.3 percent gross margin compared to the year ago gross margin of 17.4 percent. For the first nine months of 2002, the Company`s gross margin was 21.1 percent compared to 17.5 percent for the same period of 2001.
The Company generated EBITDA (earnings before interest, taxes, depreciation and amortization) of $18.3 million for the third quarter, down nearly 19 percent from the $22.5 million recorded during the same period in 2001. EBITDA for the first nine months of 2002 totaled $71.4 million compared to adjusted EBITDA of $62.5 million for the first nine months of 2001.
The Company reduced debt by $14.8 million during the third quarter bringing the year-to-date reduction to $45.5 million, including $8.6 million on the Company`s revolving credit facility. Global Power Equipment Group`s indebtedness stood at $60.1 million at the end of the third quarter representing a debt to capitalization ratio of 34 percent.
"Despite difficult market conditions, our impressive third quarter results allowed us to further reduce debt by nearly $15 million," stated Larry Edwards, Global Power Equipment Group`s president and chief executive officer. "Softness in the U.S. power business is causing an industry shake-out as several higher-cost suppliers are being forced from the marketplace. However, our strong operating model, coupled with cost management, helped us establish strong gross margins during the third quarter."
Mr. Edwards further stated, "We are actively pursuing essentially every gas turbine project around the world, with good success. However, much weaker market conditions in the United States power generation sector have impacted our 2003 expectations. Despite this change, we believe Global Power Equipment Group is uniquely positioned to benefit from the impending upturn in international markets during the next several years."
At the end of the third quarter, the Company`s firm backlog totaled $342 million compared to $423 million at the end of June 2002 and $689 million at the end of September 2001. Approximately 34 percent of the Company`s bookings into firm backlog during the first nine months have originated from projects outside the United States compared to approximately 11 percent during the same period last year.
Earnings Estimate
Based upon information management currently has evaluated, in conjunction with this release, management estimates 2002 earnings of between $0.94 to $0.98 per diluted share on sales of between $550 and $575 million.
The company now estimates it will post earnings of between $0.37 and $0.47 per diluted share on sales of between $350 and $400 million during fiscal year 2003.
About Global Power
Oklahoma based Global Power Equipment Group Inc. (NYSE:GEG - News) is a global designer, engineer and fabricator of equipment for gas turbine power plants. The company markets its products under the Deltak, Braden, and Consolidated Fabricators brands and also offers value-added services including engineering, retrofit and upgrade, and maintenance and repair. Global Power Equipment Group`s equipment is installed in power plants in more than 30 countries on six continents, giving it what it believes to be one of the largest installed bases of equipment for gas turbine power plants. Global Power Equipment Group maintains a web site at www.globalpower.com.
Statements contained in this release regarding the Company`s or management`s intentions, beliefs, expectations, or predictions for the future, including, but not limited to, those regarding anticipated operating results, are forward looking statements within the meaning of U.S. federal securities laws and are subject to a number of risks, assumptions and uncertainties that could cause the Company`s actual results to differ materially from those projected. Information concerning some of the factors that could cause actual results to differ materially from those in, or implied by, the forward looking statements are set forth under "Risk Factors" in the Company`s Form 10-K for the period ending December 28, 2001, and other reports on file with the U.S. Securities and Exchange Commission.
-0-
GLOBAL POWER EQUIPMENT GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 28, December 29,
2002 2001
------------- ------------
ASSETS
Current assets:
Cash and cash equivalents $10,180 $2,435
Accounts receivable, net of allowance of
$1,701 and $2,385 114,147 123,182
Inventories 5,874 5,973
Costs and estimated earnings in excess of
billings 77,457 131,355
Deferred tax assets 20,627 19,068
Other current assets 2,033 1,920
------------- ------------
Total current assets 230,318 283,933
Property, plant and equipment, net 26,094 27,810
Deferred tax assets 67,486 71,454
Goodwill, net 45,000 45,000
Other assets 1,431 2,434
------------- ------------
Total assets $370,329 $430,631
============= ============
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt $57 $15,505
Accounts payable 25,875 56,005
Accrued compensation and employee benefits 8,616 11,838
Accrued warranty 17,776 16,489
Billings in excess of costs and estimated
earnings 126,370 145,522
Other current liabilities 14,342 17,968
------------- ------------
Total current liabilities 193,036 263,327
Long-term debt, net of current maturities 60,034 90,124
Commitments and contingencies
Stockholders` equity
Common stock 440 440
Paid-in capital deficit (28,329) (28,329)
Accumulated comprehensive income (loss) 248 (80)
Retained earnings 144,900 105,149
------------- ------------
Total stockholders` equity 117,259 77,180
------------- ------------
Total liabilities and equity $370,329 $430,631
============= ============
GLOBAL POWER EQUIPMENT GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
------------------- -------------------
September September September September
28, 29, 28, 29,
2002 2001 2002 2001
--------- --------- --------- ---------
Revenues $112,673 $180,757 $479,116 $508,362
Cost of sales 84,175 149,230 378,000 419,414
--------- --------- --------- ---------
Gross profit 28,498 31,527 101,116 88,948
Selling and administrative
expenses 11,138 9,816 32,414 28,739
Amortization expense -- 435 -- 1,282
--------- --------- --------- ---------
Operating income 17,360 21,276 68,702 58,927
Interest expense, net 1,149 2,331 3,537 14,714
--------- --------- --------- ---------
Income before income taxes
and extraordinary loss 16,211 18,945 65,165 44,213
Income tax provision 6,322 7,389 25,414 11,444
Income tax benefit from tax
status change -- -- -- (88,000)
--------- --------- --------- ---------
Income before extraordinary
loss 9,889 11,556 39,751 120,769
Extraordinary loss on debt
extinguishment, net of tax -- -- -- 18,060
--------- --------- --------- ---------
Net income 9,889 11,556 39,751 102,709
Preferred dividend -- -- -- (2,947)
--------- --------- --------- ---------
Net income available to
common stockholders $9,889 $11,556 $39,751 $99,762
========= ========= ========= =========
Basic income per common share
Weighted average shares
outstanding 43,953 43,953 43,953 37,710
Income before extraordinary
loss $0.22 $0.26 $0.90 $3.12
Extraordinary loss -- -- -- (0.48)
--------- --------- --------- ---------
Net income available to
common stockholders $0.22 $0.26 $0.90 $2.64
========= ========= ========= =========
Diluted income per common share
Diluted shares outstanding 45,604 45,703 45,633 39,438
Income before extraordinary
loss $0.22 $0.25 $0.87 $2.99
Extraordinary loss -- -- -- (0.46)
--------- --------- --------- ---------
Net income available to
common stockholders $0.22 $0.25 $0.87 $2.53
========= ========= ========= =========
GLOBAL POWER EQUIPMENT GROUP INC.
EARNINGS AND EBITDA INFORMATION
2002 ACTUAL AND 2001 PRO FORMA
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
------------------- -------------------
September September September September
28, 29, 28, 29,
2002 2001 2002 2001
--------- --------- --------- ---------
Net income available to common
stockholders $9,889 $11,556 $39,751 $99,762
Add (Less):
Preferred dividend -- -- -- 2,947
Extraordinary loss on debt
extinguishment, net of tax -- -- -- 18,060
Income tax benefit from tax
status change -- -- -- (88,000)
Reduced tax provision due to
non-taxable status prior to
IPO -- -- -- (8,607)
Pro forma effect of debt
restructuring -- -- -- 6,394
IPO related compensation
charge and other -- -- -- 804
--------- --------- --------- ---------
Pro forma net income available
to common stockholders $9,889 $11,556 $39,751 $31,360
========= ========= ========= =========
Pro forma basic income per
common share
Weighted average shares
outstanding 43,953 43,953 43,953 43,953
Net income available to
common stockholders $0.22 $0.26 $0.90 $0.71
========= ========= ========= =========
Pro forma diluted income per
common share
Diluted shares outstanding 45,604 45,703 45,633 46,874
Net income available to
common stockholders $0.22 $0.25 $0.87 $0.67
========= ========= ========= =========
EBITDA $18,291 $22,462 $71,436 $44,473
Add:
Extraordinary loss on debt
extinguishment, net of tax -- -- -- 18,060
--------- --------- --------- ---------
Adjusted EBITDA $18,291 $22,462 $71,436 $62,533
========= ========= ========= =========
--------------------------------------------------------------------------------
Contact:
Global Power Equipment Group Inc., Tulsa
Bob Zwerneman, 918/274-2398
--------------------------------------------------------------------------------
Source: Global Power Equipment Group Inc.
Global Power Equipment Group Inc. Reports First Quarter FY2003 EPS of $0.15
Monday April 28, 4:00 pm ET
Gross Margins Remain Strong at 27.5 Percent, Company Reaffirms Fiscal Year 2003 Guidance
TULSA, Okla.--(BUSINESS WIRE)--April 28, 2003--Global Power Equipment Group Inc. (NYSE:GEG - News), a leading design, engineering and fabrication firm providing a broad array of equipment and services to diversified global companies engaged in the power and process industries, today reported financial results for the first quarter ended March 29, 2003.
ADVERTISEMENT
Global Power Equipment Group reported earnings of $6.9 million, or $0.15 per diluted share, on revenues of $77 million for the first quarter of fiscal 2003. This compares to net earnings of $15.2 million, or $0.33 per diluted share, on revenues of $203.5 million for the first quarter of fiscal 2002.
The Company`s gross profit for the first quarter of 2003 totaled $21.2 million representing a 27.5 percent gross margin compared to a gross profit of $36.7 million and a gross margin of 18.0 percent in the first quarter of last year. The company continued to realize the benefit of higher margin jobs booked into backlog during better market conditions.
The Company generated EBITDA (earnings before income taxes, plus interest, depreciation and amortization) of $12.7 million for the first quarter of 2003, down approximately 53 percent from the $27.2 million recorded during the same period in 2002. The decrease in EBITDA was principally due to lower revenues that were partially offset by higher gross margins and reduced selling and administrative expenses.
The Company had cash and cash equivalents of $58.0 million on hand at the end of the first quarter of 2003, down $1.0 million from the level on hand at the end of 2002. Global Power Equipment Group`s net debt to equity ratio at the end of the first quarter 2003 remained low at approximately 1.5 percent compared to 54.8 percent at the end of March 2002.
"Despite challenging market conditions in a number of geographies, our entire organization continues to perform exceptionally well," stated Larry Edwards, Global Power Equipment Group`s president and chief executive officer. "As anticipated, our gross margins in the first quarter remained very strong for many of the same factors we cited in our previous quarter -- the completion of jobs that were bid during more robust market conditions and we were able to shift our manufacturing to lower cost sources. We believe the benefit of these factors will diminish during the remainder of 2003. However, we will continue to remain profit-focused at every level within our organization."
Mr. Edwards also stated, "Although we are actively pursuing virtually every international opportunity, during the first quarter, most of our bookings into firm backlog originated inside the United States, including a three-unit HRSG order for a large U.S.-based energy and petrochemical producer. Besides China, where we recently received a number of both preliminary and firm awards in each of our business segments, the Middle East has become quite active. Globally, we have witnessed a rise in new power project inquiries and our bid activity has improved rather dramatically, albeit from a very low level."
At the end of the first quarter, the Company`s firm backlog totaled $258 million compared to $275 million at the end of December 2002 and $487 million at the end of March 2002. Approximately 81 percent of the Company`s bookings during the first quarter originated from projects inside the United States compared to approximately 71 percent during the first quarter of 2002.
Non-GAAP Financial Measure
The Company believes that EBITDA is a useful measure of evaluating its financial performance because of its focus on the Company`s results from operations before interest, income taxes, depreciation and amortization. EBITDA is not a measure of financial performance under generally accepted accounting principles. However, EBITDA is a common alternative measure of operating performance used by investors, financial analysts and rating agencies. A reconciliation of EBITDA to income before income taxes, as well as additional information concerning EBITDA, is included in the exhibits to this release.
Earnings Estimate
Based upon information management currently has evaluated, in conjunction with this release, management has left its previous fiscal year 2003 earnings guidance unchanged and establishes an estimate of second quarter 2003 earnings of approximately $0.08 per share on estimated revenues of $65 million.
About Global Power Equipment Group
Oklahoma based Global Power Equipment Group Inc. (NYSE:GEG - News) is a leading designer, engineer and fabricator of a comprehensive portfolio of equipment for gas turbine power plants and power-related equipment for industrial operations, with over 30 years of power generation industry experience. The Company`s equipment is installed in power plants and in industrial operations in more than 40 countries on six continents and believes, in its product lines, it has one of the largest installed bases of equipment for power generation in the world. In addition, the Company provides its customers with value-added services including engineering, retrofit, maintenance and repair. Additional information about Global Power Equipment Group may be found at www.globalpower.com.
Statements contained in this release regarding the Company`s or management`s intentions, beliefs, expectations, or predictions for the future, including, but not limited to, those regarding anticipated operating results, are forward looking statements within the meaning of U.S. federal securities laws and are subject to a number of risks, assumptions and uncertainties that could cause the Company`s actual results to differ materially from those projected. Information concerning some of the factors that could cause actual results to differ materially from those in, or implied by, the forward looking statements are set forth under "Risk Factors" in the Company`s Form 10-K for the period ending Dec. 28, 2002, and other reports on file with the U.S. Securities and Exchange Commission.
-0-
GLOBAL POWER EQUIPMENT GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three Months Ended
--------------------
March 29, March 30,
2003 2002
--------- ---------
Revenues $77,026 $203,527
Cost of sales 55,808 166,799
--------- ---------
Gross profit 21,218 36,728
Selling and administrative expenses 9,464 10,411
Amortization expense - 44
--------- ---------
Operating income 11,754 26,273
Interest expense 498 1,283
--------- ---------
Income before income taxes 11,256 24,990
Income tax provision 4,390 9,746
--------- ---------
Net income available to common stockholders $6,866 $15,244
========= =========
Basic income per common share
Weighted average shares outstanding -- basic 43,988 43,953
Net income available to common stockholders $0.16 $0.35
Diluted income per common share
Weighted average shares outstanding -- diluted 45,609 45,643
Net income available to common stockholders $0.15 $0.33
-0-
GLOBAL POWER EQUIPMENT GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 29, Dec. 28,
2003 2002
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents $58,031 $59,042
Accounts receivable, net of allowance of
$1,949 and $1,775 95,229 82,844
Inventories 4,217 4,403
Costs and estimated earnings in excess of
billings 31,878 62,289
Deferred tax assets 18,481 22,385
Other current assets 1,364 2,082
---------- ----------
Total current assets 209,200 233,045
Property, plant and equipment, net 24,620 25,469
Deferred tax assets 63,226 64,803
Goodwill, net 45,000 45,000
Other assets 1,715 1,387
---------- ----------
Total assets $343,761 $369,704
========== ==========
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt $12,536 $5,423
Accounts payable 28,463 29,773
Accrued compensation and employee benefits 5,145 9,301
Accrued warranty 19,724 19,460
Billings in excess of costs and estimated
earnings 84,830 107,242
Accrued income taxes 4,633 9,471
Other current liabilities 3,692 4,417
---------- ----------
Total current liabilities 159,023 185,087
Long-term debt, net of current maturities 47,522 54,650
Commitments and contingencies
Stockholders` equity
Common stock 440 440
Paid-in capital deficit (28,316) (28,321)
Accumulated comprehensive income 1,200 822
Retained earnings 163,892 157,026
---------- ----------
Total stockholders` equity 137,216 129,967
---------- ----------
Total liabilities and equity $343,761 $369,704
========== ==========
-0-
GLOBAL POWER EQUIPMENT GROUP INC.
SUPPLEMENTAL STATISTICAL INFORMATION
(in thousands)
Three Months Ended
---------------------
March 29, March 30,
2003 2002
---------- ----------
Income before income taxes $11,256 $24,990
Add back:
Interest expense 498 1,283
Depreciation and amortization 908 890
---------- ----------
EBITDA (a) $12,662 $27,163
========== ==========
(a) EBITDA represents income before income taxes plus interest,
depreciation and amortization. The EBITDA presented above, while
considered the most common definition used by investors and financial
analysts, may not be comparable to similarly titled measures reported
by other companies. The Company believes that EBITDA, while
providing useful information, should not be considered in isolation
or as an alternative to other financial measures determined under
GAAP.
--------------------------------------------------------------------------------
Contact:
Global Power Equipment Group Inc., Tulsa
Bob Zwerneman, 918/274-2398
--------------------------------------------------------------------------------
Source: Global Power Equipment Group Inc.
Monday April 28, 4:00 pm ET
Gross Margins Remain Strong at 27.5 Percent, Company Reaffirms Fiscal Year 2003 Guidance
TULSA, Okla.--(BUSINESS WIRE)--April 28, 2003--Global Power Equipment Group Inc. (NYSE:GEG - News), a leading design, engineering and fabrication firm providing a broad array of equipment and services to diversified global companies engaged in the power and process industries, today reported financial results for the first quarter ended March 29, 2003.
ADVERTISEMENT
Global Power Equipment Group reported earnings of $6.9 million, or $0.15 per diluted share, on revenues of $77 million for the first quarter of fiscal 2003. This compares to net earnings of $15.2 million, or $0.33 per diluted share, on revenues of $203.5 million for the first quarter of fiscal 2002.
The Company`s gross profit for the first quarter of 2003 totaled $21.2 million representing a 27.5 percent gross margin compared to a gross profit of $36.7 million and a gross margin of 18.0 percent in the first quarter of last year. The company continued to realize the benefit of higher margin jobs booked into backlog during better market conditions.
The Company generated EBITDA (earnings before income taxes, plus interest, depreciation and amortization) of $12.7 million for the first quarter of 2003, down approximately 53 percent from the $27.2 million recorded during the same period in 2002. The decrease in EBITDA was principally due to lower revenues that were partially offset by higher gross margins and reduced selling and administrative expenses.
The Company had cash and cash equivalents of $58.0 million on hand at the end of the first quarter of 2003, down $1.0 million from the level on hand at the end of 2002. Global Power Equipment Group`s net debt to equity ratio at the end of the first quarter 2003 remained low at approximately 1.5 percent compared to 54.8 percent at the end of March 2002.
"Despite challenging market conditions in a number of geographies, our entire organization continues to perform exceptionally well," stated Larry Edwards, Global Power Equipment Group`s president and chief executive officer. "As anticipated, our gross margins in the first quarter remained very strong for many of the same factors we cited in our previous quarter -- the completion of jobs that were bid during more robust market conditions and we were able to shift our manufacturing to lower cost sources. We believe the benefit of these factors will diminish during the remainder of 2003. However, we will continue to remain profit-focused at every level within our organization."
Mr. Edwards also stated, "Although we are actively pursuing virtually every international opportunity, during the first quarter, most of our bookings into firm backlog originated inside the United States, including a three-unit HRSG order for a large U.S.-based energy and petrochemical producer. Besides China, where we recently received a number of both preliminary and firm awards in each of our business segments, the Middle East has become quite active. Globally, we have witnessed a rise in new power project inquiries and our bid activity has improved rather dramatically, albeit from a very low level."
At the end of the first quarter, the Company`s firm backlog totaled $258 million compared to $275 million at the end of December 2002 and $487 million at the end of March 2002. Approximately 81 percent of the Company`s bookings during the first quarter originated from projects inside the United States compared to approximately 71 percent during the first quarter of 2002.
Non-GAAP Financial Measure
The Company believes that EBITDA is a useful measure of evaluating its financial performance because of its focus on the Company`s results from operations before interest, income taxes, depreciation and amortization. EBITDA is not a measure of financial performance under generally accepted accounting principles. However, EBITDA is a common alternative measure of operating performance used by investors, financial analysts and rating agencies. A reconciliation of EBITDA to income before income taxes, as well as additional information concerning EBITDA, is included in the exhibits to this release.
Earnings Estimate
Based upon information management currently has evaluated, in conjunction with this release, management has left its previous fiscal year 2003 earnings guidance unchanged and establishes an estimate of second quarter 2003 earnings of approximately $0.08 per share on estimated revenues of $65 million.
About Global Power Equipment Group
Oklahoma based Global Power Equipment Group Inc. (NYSE:GEG - News) is a leading designer, engineer and fabricator of a comprehensive portfolio of equipment for gas turbine power plants and power-related equipment for industrial operations, with over 30 years of power generation industry experience. The Company`s equipment is installed in power plants and in industrial operations in more than 40 countries on six continents and believes, in its product lines, it has one of the largest installed bases of equipment for power generation in the world. In addition, the Company provides its customers with value-added services including engineering, retrofit, maintenance and repair. Additional information about Global Power Equipment Group may be found at www.globalpower.com.
Statements contained in this release regarding the Company`s or management`s intentions, beliefs, expectations, or predictions for the future, including, but not limited to, those regarding anticipated operating results, are forward looking statements within the meaning of U.S. federal securities laws and are subject to a number of risks, assumptions and uncertainties that could cause the Company`s actual results to differ materially from those projected. Information concerning some of the factors that could cause actual results to differ materially from those in, or implied by, the forward looking statements are set forth under "Risk Factors" in the Company`s Form 10-K for the period ending Dec. 28, 2002, and other reports on file with the U.S. Securities and Exchange Commission.
-0-
GLOBAL POWER EQUIPMENT GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three Months Ended
--------------------
March 29, March 30,
2003 2002
--------- ---------
Revenues $77,026 $203,527
Cost of sales 55,808 166,799
--------- ---------
Gross profit 21,218 36,728
Selling and administrative expenses 9,464 10,411
Amortization expense - 44
--------- ---------
Operating income 11,754 26,273
Interest expense 498 1,283
--------- ---------
Income before income taxes 11,256 24,990
Income tax provision 4,390 9,746
--------- ---------
Net income available to common stockholders $6,866 $15,244
========= =========
Basic income per common share
Weighted average shares outstanding -- basic 43,988 43,953
Net income available to common stockholders $0.16 $0.35
Diluted income per common share
Weighted average shares outstanding -- diluted 45,609 45,643
Net income available to common stockholders $0.15 $0.33
-0-
GLOBAL POWER EQUIPMENT GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 29, Dec. 28,
2003 2002
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents $58,031 $59,042
Accounts receivable, net of allowance of
$1,949 and $1,775 95,229 82,844
Inventories 4,217 4,403
Costs and estimated earnings in excess of
billings 31,878 62,289
Deferred tax assets 18,481 22,385
Other current assets 1,364 2,082
---------- ----------
Total current assets 209,200 233,045
Property, plant and equipment, net 24,620 25,469
Deferred tax assets 63,226 64,803
Goodwill, net 45,000 45,000
Other assets 1,715 1,387
---------- ----------
Total assets $343,761 $369,704
========== ==========
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt $12,536 $5,423
Accounts payable 28,463 29,773
Accrued compensation and employee benefits 5,145 9,301
Accrued warranty 19,724 19,460
Billings in excess of costs and estimated
earnings 84,830 107,242
Accrued income taxes 4,633 9,471
Other current liabilities 3,692 4,417
---------- ----------
Total current liabilities 159,023 185,087
Long-term debt, net of current maturities 47,522 54,650
Commitments and contingencies
Stockholders` equity
Common stock 440 440
Paid-in capital deficit (28,316) (28,321)
Accumulated comprehensive income 1,200 822
Retained earnings 163,892 157,026
---------- ----------
Total stockholders` equity 137,216 129,967
---------- ----------
Total liabilities and equity $343,761 $369,704
========== ==========
-0-
GLOBAL POWER EQUIPMENT GROUP INC.
SUPPLEMENTAL STATISTICAL INFORMATION
(in thousands)
Three Months Ended
---------------------
March 29, March 30,
2003 2002
---------- ----------
Income before income taxes $11,256 $24,990
Add back:
Interest expense 498 1,283
Depreciation and amortization 908 890
---------- ----------
EBITDA (a) $12,662 $27,163
========== ==========
(a) EBITDA represents income before income taxes plus interest,
depreciation and amortization. The EBITDA presented above, while
considered the most common definition used by investors and financial
analysts, may not be comparable to similarly titled measures reported
by other companies. The Company believes that EBITDA, while
providing useful information, should not be considered in isolation
or as an alternative to other financial measures determined under
GAAP.
--------------------------------------------------------------------------------
Contact:
Global Power Equipment Group Inc., Tulsa
Bob Zwerneman, 918/274-2398
--------------------------------------------------------------------------------
Source: Global Power Equipment Group Inc.
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