HOUSTON, Aug. 8, 2012 (GLOBE NEWSWIRE) -- American Electric Technologies, Inc. (Nasdaq:AETI), today announced increased second quarter 2012 net income, earnings per share and EBITDA on increased second quarter revenue.
Domestic revenue for the three months ended June 30th was $12.9 million, a 13% revenue improvement over the same period 2011. The Company also generated significantly higher gross profit in the second quarter of $2.2 million, up 44%, compared to the second quarter 2011 gross profit of $1.5 million, and up 23% from the first quarter 2012.
Domestic operating income for the quarter grew by $1.5 million to $0.2 million, up from a $1.3 million loss in the same period last year, and an increase of $0.4 million from the previous quarter.
"Our improved domestic results derived from continued strength in our technical products related to the North American oil & gas business", commented Charles Dauber, president and chief executive officer. "The company is successfully executing our focus on higher-value added products for the Exploration and Production, midstream and downstream oil & gas markets, and are also realizing results from our investments in our utility-scale solar inverter product."
In the quarter, the company also reported strong growth in its net equity income in foreign joint ventures' operations of $0.9 million, a $0.8 million increase from the second quarter 2011 and a $0.3 million increase over first quarter of this year. This growth continues to be primarily driven by strong demand in China from the Company's BOMAY joint venture operations for land drilling rig power systems.
Second quarter Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, a non-GAAP measure, was $1.5 million compared to Adjusted EBITDA of a loss of $0.9 million for the second quarter of 2011.
The improved domestic and international operations resulted in the company reporting earnings before taxes of $1.1 million, up $2.2 million from the same period in 2011 and up $0.6 million from the first quarter of this year.
With the May 2012 issuance of the $5 million convertible preferred shares transaction, there was a charge to common stockholders of $0.06 million representing the dividend and amortization of the value of the related warrants issued. Therefore the net income attributable to common stockholders was $0.8 million for the quarter and $1.1 million for the six months.
Second quarter of 2012 fully diluted earnings per share attributable to common stockholders was $0.09, a $0.18 per share improvement compared to $0.09 loss per share in the second quarter of 2011.
In the quarter, the company made several announcements related to progress on its strategic focuses.
The company announced the hiring of Blair Zimmerman as Director of Midstream and Downstream equipment sales. Mr. Zimmerman joins AETI with over 30 years in the Gulf Coast industrial markets and has significant experience in the shale gas, shale oil and refining/petrochemical markets.
AETI also reported a sale of its 1 MW (Mega Watt), 1000 Volt Integrated Solar Inversion Station (ISIS) to Socios Energeticos de Mexico Verde (SEMV). SEMV choose AETI's ISIS due to AETI's proven high reliability history built on delivering hundreds of MW of power delivery systems into the world's harshest environments. The system is set to ship in the third quarter.
Detailed information about the financial results for the 2011 year is included in the Company's Annual Report on Form 10-K filed March 30, 2012 and Form 10-Q for the quarter ended June 30, 2012 which will be filed with the Securities and Exchange Commission on or before August 14, 2012.
| American Electric Technologies, Inc. and Subsidiaries | ||||||||
| Business Segments (in thousands and percentages are calculated on segment sales and total sales) | ||||||||
| Unaudited | ||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||
| 2012 | 2011 | 2012 | 2011 | |||||
| Revenue: | ||||||||
| Technical Products and Services | $ 8,647 | $ 5,384 | $ 18,470 | $ 11,784 | ||||
| Electrical and Instrumentation Construction | 2,615 | 4,361 | 5,607 | 8,278 | ||||
| American Access Technologies | 1,610 | 1,682 | 3,227 | 3,433 | ||||
| $ 12,872 | $ 11,427 | $ 27,304 | $ 23,495 | |||||
| Gross profit: | ||||||||
| Technical Products and Services | $ 1,587 | 18% | $ 846 | 16% | $ 2,957 | 16% | $ 1,343 | 11% |
| Electrical and Instrumentation Construction | 330 | 13% | 318 | 7% | 532 | 9% | 616 | 7% |
| American Access Technologies | 255 | 16% | 342 | 20% | 456 | 14% | 744 | 22% |
| $ 2,172 | 17% | $ 1,506 | 13% | $ 3,945 | 14% | $ 2,703 | 12% | |
| Income(loss) from domestic operations and net equity income from foreign joint ventures' operations: | ||||||||
| Technical Products and Services | $ 1,448 | 17% | $ 371 | 7% | $ 2,553 | 14% | $ 615 | 5% |
| Electrical and Instrumentation Construction | 330 | 13% | 318 | 7% | 532 | 9% | 616 | 7% |
| American Access Technologies | (115) | -7% | (32) | -2% | (303) | -9% | (12) | 0% |
| Corporate and other unallocated expenses | (1,495) | (1,937) | (2,812) | (3,093) | ||||
| Income (loss) from domestic operations | 168 | 1% | (1,280) | -11% | (30) | 0% | (1,874) | -8% |
| Equity income from BOMAY | 1,062 | 387 | 1,761 | 678 | ||||
| Equity income (loss) from MIEFE | 11 | (112) | 20 | (138) | ||||
| Equity income (loss) from AAG | (19) | (14) | 44 | (42) | ||||
| Foreign operations expenses | (123) | (117) | (223) | (246) | ||||
| Net equity income from foreign joint ventures' operations | 931 | 144 | 1,602 | 252 | ||||
| Income (loss) from domestic operations and net equity income from foreign joint ventures' operations | $ 1,099 | $ (1,136) | $ 1,572 | $ (1,622) | ||||
| Interest expense and other, net | (38) | (55) | (88) | (102) | ||||
| Total other income (expense) | (38) | (55) | (88) | (102) | ||||
| Income (loss) before income taxes | 1,061 | (1,191) | 1,484 | (1,724) | ||||
| Provision for (benefit from) income taxes | 245 | (464) | 334 | (675) | ||||
| Net income (loss) before mandatorily convertible preferred stock | 816 | (727) | 1,150 | (1,049) | ||||
| Dividends on mandatorily redeemable preferred stock | (55) | -- | (55) | -- | ||||
| Net income attributable to common stockholders | $ 761 | 6% | $ (727) | -6% | $ 1,095 | 4% | $ (1,049) | -4% |
| American Electric Technologies, Inc. and Subsidiaries | ||
| Condensed Consolidated Balance Sheets | ||
| (in thousands, except share and per share data) | ||
| June 30, 2012 | December 31, 2011 | |
| (unaudited) | ||
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 3,945 | $ 3,749 |
|
Accounts receivable-trade, net of allowance of $215 and $393 at June 30, 2012 and December 31, 2011, respectively |
10,073 | 11,291 |
| Inventories, net | 4,752 | 4,945 |
| Costs and estimated earnings in excess of billings on uncompleted contracts | 2,449 | 2,026 |
| Prepaid expenses and other current assets | 228 | 336 |
| Total current assets | 21,447 | 22,347 |
| Property, plant and equipment, net | 4,370 | 4,489 |
| Investments in foreign joint ventures | 10,257 | 9,308 |
| Other assets | 362 | 87 |
| Total assets | $ 36,436 | $ 36,231 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Accounts payable | $ 3,416 | $ 5,772 |
| Accrued payroll and benefits | 1,220 | 1,414 |
| Other accrued expenses | 587 | 855 |
| Billings in excess of costs and estimated earnings on uncompleted contracts | 2,213 | 2,909 |
| Short-term notes payable | 132 | 154 |
| Total current liabilities | 7,568 | 11,104 |
| Notes payable | 2,000 | 5,057 |
| Deferred income taxes | 2,706 | 2,433 |
| Deferred compensation | 119 | 116 |
| Total liabilities | 12,393 | 18,710 |
| Convertible preferred stock | ||
| Mandatorily redeemable convertible preferred stock; $.001 par value, shares issued and outstanding 1,000,000 June 30, 2012, none December 31,2011 | 4,175 | -- |
| Common stockholders' equity: | ||
|
Common stock; $0.001 par value, 50,000,000 shares authorized, 7,913,535 and 7,825,787 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively |
8 | 8 |
| Additional paid-in capital | 9,422 | 8,171 |
| Treasury stock; 20,222 shares at cost | (92) | -- |
| Accumulated other comprehensive income, foreign currency translation, net | 941 | 849 |
|
Retained earnings; including accumulated statutory reserves in equity method investments of $1,620 and $1,284 at June 30, 2012 and December 31, 2011, respectively |
9,589 | 8,493 |
| Total common stockholders' equity | 19,868 | 17,521 |
| Total liabilities, preferred stock and stockholders' equity | $ 36,436 | $ 36,231 |
| American Electric Technologies, Inc. and Subsidiaries | ||||
| Condensed Consolidated Statements of Operations | ||||
| Unaudited | ||||
| (in thousands, except share and per share data) | ||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||
| 2012 | 2011 | 2012 | 2011 | |
| Revenue | $ 12,872 | $ 11,427 | $ 27,304 | $ 23,495 |
| Cost of sales | 10,700 | 9,921 | 23,359 | 20,792 |
| Gross profit | 2,172 | 1,506 | 3,945 | 2,703 |
| Operating expenses: | ||||
| Research and development | 10 | 313 | 35 | 436 |
| Selling and marketing | 639 | 614 | 1,360 | 1,225 |
| General and administrative | 1,355 | 1,859 | 2,580 | 2,916 |
| Total operating expenses | 2,004 | 2,786 | 3,975 | 4,577 |
| Income (loss) from domestic operations | 168 | (1,280) | (30) | (1,874) |
| Net equity income from foreign joint ventures' operations: | ||||
| Equity income from foreign joint ventures' operations | 1,054 | 261 | 1,825 | 498 |
| Foreign joint ventures' operations related expenses | (123) | (117) | (223) | (246) |
|
Net equity income from foreign joint ventures' operations |
931 | 144 | 1,602 | 252 |
|
Income (loss) from domestic operations and net equity income from foreign joint ventures' operations |
1,099 | (1,136) | 1,572 | (1,622) |
| Interest expense and other, net | (38) | (55) | (88) | (102) |
| Total other income (expense) | (38) | (55) | (88) | (102) |
| Income (loss) before income taxes | 1,061 | (1,191) | 1,484 | (1,724) |
| Provision for (benefit from) income taxes | 245 | (464) | 334 | (675) |
| Net income (loss) before mandatorily redeemable convertible preferred stock | 816 | (727) | 1,150 | (1,049) |
| Dividends on mandatorily redeemable convertible preferred stock | (55) | -- | (55) | -- |
| Net income attributable to common stockholders | $ 761 | $ (727) | $ 1,095 | $ (1,049) |
| Earnings (loss) per common share: | ||||
| Basic | $ 0.10 | $ (0.09) | $ 0.14 | $ (0.13) |
| Diluted | $ 0.09 | $ (0.09) | $ 0.13 | $ (0.13) |
| Weighted-average number of common shares outstanding: | ||||
| Basic | 7,913,266 | 7,821,646 | 7,885,458 | 7,800,060 |
| Diluted | 8,247,031 | 7,821,646 | 8,242,975 | 7,800,060 |
| 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, | ||||
| Preferred Dividends, Taxes, Depreciation, Amortization and Other NonCash Items ("Adjusted EBITDA") | ||||
| Unaudited | ||||
| (In thousands) | ||||
| Three months ended June 30, | Six months ended June 30, | |||
| 2012 | 2011 | 2012 | 2011 | |
| Net Income attributable to common stockholders | $ 761 | $ (727) | $ 1,095 | $ (1,049) |
| Add: | ||||
| Dividends on mandatorily redeemable preferred stock | 55 | -- | 55 | -- |
| Depreciation and amortization | 247 | 190 | 467 | 382 |
| Interest expense and other, net | 38 | 55 | 88 | 102 |
| Provision (benefit) for income taxes | 245 | (464) | 334 | (675) |
| Non-cash charges: | ||||
| Stock-based compensation | 111 | 67 | 215 | 112 |
| Water wastewater charges | -- | -- | 212 | -- |
| Adjusted EBITDA (1) | $ 1,457 | $ (879) | $ 2,466 | $ (1,128) |
| (1) The Company is disclosing adjusted EBITDA, which is a non-GAAP measure, because it is used by management | ||||
| and provided to investors to provide comparability of underlying operational results. | ||||
Conference Call
AETI will conduct a conference call at 3:00pm CDT on Wednesday, August 8, 2012, to discuss the results with analysts, investors and other interested parties. Individuals who wish to participate in the conference call should dial 1-888-554-1419, pass code 329665, in the United States/Canada or 1-719-785-9451, passcode 329665, from outside the United States.
American Electric Technologies, Inc. (Nasdaq:AETI) is a leading global supplier of power delivery solutions to the 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.
Forward Looking Statements
Except for the historical and present factual information contained herein, the matters set forth in this document, including statements regarding the anticipated results of our foreign joint ventures are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. There are many risks, uncertainties and other factors that can prevent the achievement of our goals or cause results to differ from those expressed or implied by these forward-looking statements including, without limitation, the risks inherent in doing business outside of the U. S. such as political, social and economic instability, currency fluctuations and conversion restrictions. These and other risks which may impact management's expectations are described in greater detail in filings made by the Company with the Securities and Exchange Commission. 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 anticipated results expressed or implied herein will not be realized.