HOUSTON, Nov. 12, 2013 (GLOBE NEWSWIRE) -- American Electric Technologies, Inc. (Nasdaq: AETI ), a leading supplier of power delivery solutions for the global energy industry, today announced its third quarter and year-to-date 2013 financial results.
For the quarter ended September 30, 2013 AETI reported consolidated revenue of $17.6 million, up 50 percent from Q3 2012 and up 16 percent from Q2 2013.
Operating income from domestic operations for the quarter ended September 30, 2013 increased by more than 500 percent to $0.8 million from $0.1 million in the third quarter of 2012 and up 90 percent from the $0.4 million in Q2 2013.
Net income attributable to common stockholders increased 80 percent to $0.9 million or $0.10 per diluted share when compared to the $0.5 million, or $0.06 per diluted share, reported in the third quarter of 2012. Net income attributable to common shareholders was down $0.02 when compared to the $0.12 per diluted share reported in Q2 2013.
For the first three quarters of 2013, net income attributable to common stockholders was up 127 percent to $3.6 million, up from $1.6 million in the first three quarters of 2012 on revenue of $47.2 million, a gain of 21 percent from $39.0 million of revenue reported during the first 9 months of 2012.
"Our focus on our core oil & gas and distributed power generation segments of the energy industry have driven our record revenues and backlog for the quarter," said Charles Dauber, AETI president and chief executive officer. "83% of our record quarterly backlog comes from our core energy industry focus, and we expect the strong requirements for natural gas infrastructure in the US, including pipelines and gas processing, will continue driving needs for our power delivery solutions well into 2014."
AETI's joint venture companies reported $21.0 million of aggregate revenues for the quarter of which the Company reports only its share of the net equity income. AETI's equity in the income of its foreign joint ventures, net of management expenses, was $0.4 million for the quarter, compared to $0.7 million for Q3 2012 and $1.2 million in Q2 of this year, primarily due to current macro-economic issues in both the Chinese and Brazilian markets.
For the quarter ended September 30, 2013, the Company reported Earnings Before Interest, Taxes, Depreciation and Amortization of $1.4 million, a 29 percent improvement over the same period in 2012. The Company ended the quarter with $4.2 million of cash, $0.5 million of debt and $31.1 million of backlog.
Conference Call
AETI will conduct a conference call at 10:00am EST on Tuesday, November 12, 2013, to discuss the results with analysts, investors and other interested parties. Individuals who wish to participate in the conference call should dial 1-888-461-2018, pass code 197969, in the United States or 1-719-457-2663, pass code 197969, from outside the United States.
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 E&I Construction services, as well as American Access Technologies zone enclosures, and Omega Metals custom fabrication services. South Coast Electric Systems L.L.C., a subsidiary, services Gulf Coast marine and vessel customers.
AETI is headquartered in Houston and has global sales, support and manufacturing operations in Beaumont, Texas, Keystone Heights, Fla. and Bay St. Louis, Miss. In addition, AETI has minority interests in three joint ventures, which have facilities located in Xian, China, Singapore and Macae, Brazil. AETI's SEC filings, news and product/service information are available at www.aeti.com "> 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 demand for our products, international expansion, 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 28, 2013. The Company assumes no obligation to publicly update or revise its forward-looking statements even if experience or future events make it clear that any of the projected results expressed or implied herein will not be realized.
| American Electric Technologies, Inc. and Subsidiaries | ||||||||
| Business Segments (in thousands and percentages are calculated on segment sales and total sales) Unaudited | ||||||||
| Three Months Ended | Nine Months Ended | |||||||
| September 30, | September 30, | September 30, | September 30, | |||||
| 2013 | 2012 | 2013 | 2012 | |||||
| Revenue: | ||||||||
| Technical Products and Services | $ 13,970 | $ 8,903 | $ 35,607 | $ 27,373 | ||||
| Electrical and Instrumentation Construction | 2,266 | 1,495 | 7,136 | 7,102 | ||||
| American Access Technologies | 1,349 | 1,327 | 4,441 | 4,554 | ||||
| $ 17,585 | $ 11,725 | $ 47,184 | $ 39,029 | |||||
| Gross profit: | ||||||||
| Technical Products and Services | $ 2,428 | 17% | $ 1,507 | 17% | $ 6,117 | 17% | $ 4,464 | 16% |
| Electrical and Instrumentation Construction | 331 | 15% | 61 | 4% | 1,496 | 21% | 593 | 8% |
| American Access Technologies | 108 | 8% | 121 | 9% | 630 | 14% | 577 | 13% |
| $ 2,867 | 16% | $ 1,689 | 14% | $ 8,243 | 17% | $ 5,634 | 14% | |
| Income (loss) from domestic operations and net equity income from foreign joint ventures' operations: | ||||||||
| Technical Products and Services | $ 2,188 | 16% | $ 1,389 | 16% | $ 5,372 | 15% | $ 3,941 | 14% |
| Electrical and Instrumentation Construction | 331 | 15% | 61 | 4% | 1,496 | 21% | 593 | 8% |
| American Access Technologies | (215) | -16% | (227) | -17% | (350) | -8% | (530) | -12% |
| Corporate and other unallocated expenses | (1,548) | (1,100) | (4,764) | (3,912) | ||||
| Income (loss) from domestic operations | 756 | 4% | 123 | 1% | 1,754 | 4% | 92 | 0% |
| Equity income from BOMAY | 475 | 624 | 2,123 | 2,385 | ||||
| Equity income (loss) from MIEFE | (12) | (1) | 146 | 19 | ||||
| Equity income from AAG | (29) | 123 | 871 | 167 | ||||
| Foreign operations expenses | (66) | (23) | (204) | (246) | ||||
| Net equity income from foreign joint ventures' operations | 368 | 723 | 2,936 | 2,325 | ||||
| Income (loss) from domestic operations and net equity income from foreign joint ventures' operations | 1,124 | 6% | 846 | 7% | 4,690 | 10% | 2,417 | 6% |
| Interest expense and other, net | (27) | (29) | (72) | (116) | ||||
| Total other income (expense) | (27) | (29) | (72) | (116) | ||||
| Income (loss) before income taxes | 1,097 | 817 | 4,618 | 2,301 | ||||
| Provision for income taxes | 110 | 232 | 745 | 566 | ||||
| Net income (loss) before redeemable preferred stock | 987 | 585 | 3,873 | 1,735 | ||||
| Dividends on redeemable preferred stock | (86) | (85) | (256) | (140) | ||||
| Net income (loss) attributable to common stockholders | $ 901 | 5% | $ 500 | 4% | $ 3,617 | 8% | $ 1,595 | 4% |
| Earnings (loss) per common share: | ||||||||
| Basic | $ 0.11 | $ 0.06 | $ 0.45 | $ 0.20 | ||||
| Diluted | $ 0.10 | $ 0.06 | $ 0.41 | $ 0.19 | ||||
| American Electric Technologies, Inc. and Subsidiaries | ||
| Condensed Consolidated Balance Sheets | ||
| (in thousands, except share and per share data) | ||
| September 30, 2013 | December 31, 2012 | |
| (Unaudited) | ||
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 4,176 | $ 4,477 |
| Accounts receivable-trade, net of allowance of $354 and $225 at September 30, 2013 and December 31, 2012, respectively | 10,647 | 9,731 |
| Inventories, net | 7,454 | 5,616 |
| Costs and estimated earnings in excess of billings on uncompleted contracts | 4,757 | 2,205 |
| Prepaid expenses and other current assets | 216 | 318 |
| Total current assets | 27,250 | 22,347 |
| Property, plant and equipment, net | 5,172 | 4,922 |
| Investments in foreign joint ventures | 13,088 | 11,408 |
| Other assets | 200 | 297 |
| Total assets | $ 45,710 | $ 38,974 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Accounts payable | $ 6,166 | $ 4,438 |
| Accrued payroll and benefits | 1,474 | 1,519 |
| Other accrued expenses | 518 | 522 |
| Billings in excess of costs and estimated earnings on uncompleted contracts | 4,010 | 3,576 |
| Short-term notes payable | 500 | 54 |
| Total current liabilities | 12,668 | 10,109 |
| Notes payable | -- | 500 |
| Deferred income taxes | 3,672 | 3,058 |
| Deferred compensation | 193 | 122 |
| Total liabilities | 16,533 | 13,789 |
| Convertible preferred stock | ||
| Redeemable convertible preferred stock, series A, net of discount of $775 and $806 at September 30, 2013 and December 31, 2012, respectively; $.001 par value, shares issued and outstanding 1,000,000 September 30, 2013, and December 31, 2012 | 4,225 | 4,194 |
| Common stockholders' equity: | ||
| Common stock; $0.001 par value, 50,000,000 shares authorized, 8,004,173 and 7,919,032 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 8 | 8 |
| Additional paid-in capital | 10,043 | 9,597 |
| Treasury stock; at cost (49,863 shares at September 30, 2013 and 20,222 shares at December 31, 2012). | (238) | (92) |
| Accumulated other comprehensive income | 942 | 900 |
| Retained earnings; including accumulated statutory reserves in equity method investments of $1,857 and $1,620 at September 30, 2013 and December 31, 2012, respectively | 14,197 | 10,578 |
| Total common stockholders' equity | 24,952 | 20,991 |
| Total liabilities, preferred stock and stockholders' equity | 45,710 | 38,974 |
| American Electric Technologies, Inc. and Subsidiaries | |||||
| Non-GAAP Financial Measures and Reconciliations | |||||
| Computation of Earnings, Including Net Equity Income from Foreign Joint Ventures, Before Interest, | |||||
| Dividends, Taxes, Depreciation and Amortization ("EBITDA") | |||||
| Unaudited | |||||
| (In thousands) | |||||
| Three months ended | Nine months ended | ||||
| September 30, | September 30, | September 30, | September 30, | ||
| 2013 | 2012 | 2013 | 2012 | ||
| Net Income (loss) attributable to common stockholders | $ 901 | $ 500 | $ 3,617 | $ 1,595 | |
| Add: | |||||
| Dividends on redeemable preferred stock | 86 | 85 | 256 | 140 | |
| Depreciation and amortization | 233 | 209 | 620 | 676 | |
| Interest expense and other, net | 27 | 29 | 72 | 116 | |
| Provision for income taxes | 110 | 232 | 745 | 566 | |
| EBITDA | $ 1,357 | $ 1,055 | $ 5,310 | $ 3,093 | |
| (1) 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 2012 10-K which was filed on March 28, 2013. | |||||
Investor Contact: American Electric Technologies, Inc. Andrew L. Puhala 713-644-8182 Media Contact: Molly LeCronier Ward Creative Communications 713.869.0707
