AETI announces Q2 results
14 Agosto 2018 - 8:00AM
American Electric Technologies, Inc. (NASDAQ:AETI), a leading
supplier of power delivery solutions for the global energy
industry, today announced its second quarter 2018 financial
results.
As a result of the Company’s previously-announced agreement to
sell the U.S. based assets of its M&I subsidiary, the assets
and liabilities of that business are classified as “held for sale”
in the Condensed Consolidated Balance Sheets and the current and
historical operating results related to those assets are reported
as income or loss from discontinued operations in the Condensed
Consolidated Statements of Operations.
For the 2018 quarter, the Company reported revenue, which
related to its Brazilian subsidiary, of $2.1 million, up 56%
compared with the $1.3M in the 2nd quarter of 2017 and up from
$1.9M in Q1 2018. This increase was primarily due to increased
service revenue for the Brazilian oil and gas market as well as a
product project executed in Brazil for a South American customer.
The Company’s China joint venture, BOMAY, saw Q2 2018 revenue
grow 76% to $12.2M from $6.8M in the same 2017 quarter and up from
$8.1M in Q1 of this year. AETI owns 40% of BOMAY and does not
consolidate revenue but reports BOMAY’s income as Equity Income
from Foreign Joint Ventures. The Chinese oil and gas market is
expected to see strong growth over the next several years as CNPC
(BOMAY Joint Venture partner BOMCO’s parent company) has announced
plans to invest more than $22B in the Xinjiang Autonomous Region,
offsetting declining production in the Daqing oil region and
increasing production of domestic natural gas to wean China away
from coal-based power generation.
The Company reported Q2 EBITDA on continued operations (a
non-U.S. GAAP measure) of $.2 million for the quarter, compared
with an EBITDA loss of $.2 million in Q1 of 2017 and an EBITDA
breakeven in Q1 2018.
“Our results highlight the growth and profit potential
represented by our Brazilian and Chinese interests. The growth in
the global oil and gas markets drove strong topline growth in both
Brazil and our Chinese joint venture in the quarter” said Charles
Dauber, AETI president and chief executive officer.
American Electric Technologies,
Inc. (NASDAQ:AETI) is a leading provider of power delivery
solutions to the global energy industry. AETI is headquartered in
Houston and has global sales, support and manufacturing operations
in Rio de Janeiro, Macaé and Belo Horizonte, Brazil. In
addition, AETI has minority interest in a joint venture in Xian,
China. AETI's SEC filings, news and product/service information are
available at www.aeti.com. Forward Looking
StatementsThis press release contains forward-looking
statements, as defined in Section 27A of the Securities Exchange
Act of 1934, concerning anticipated future domestic and
international demand for our products, and other future plans and
objectives. While the Company believes that such forward-looking
statements are based on reasonable assumptions, there can be no
assurance that such future revenues, profits, plans and objectives
will be achieved on the schedule or in the amounts indicated.
Investors are cautioned that these forward-looking statements are
not guarantees of future performance. Actual events or results may
differ from the Company’s expectations, and are subject to various
risks and uncertainties, including those listed in Item 1A of the
Form 10-K filed with the Securities and Exchange Commission on
March 29, 2018. The Company assumes no obligation to publicly
update or revise its forward-looking statements even if experience
or future events make it clear that any of the projected results
expressed or implied herein will not be realized.
Investor Contact: American Electric
Technologies, Inc. Bill Brod
713-644-8182
investorrelations@aeti.com
American Electric Technologies, Inc. and
Subsidiaries |
Condensed Consolidated Balance
Sheets |
(in thousands, except share and per share
data) |
|
June 30, |
|
December 31, |
|
|
2018 |
|
|
|
2017 |
|
Assets |
(unaudited) |
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
477 |
|
|
$ |
243 |
|
Restricted short-term investments |
|
- |
|
|
|
- |
|
Accounts
receivable-trade, net |
|
516 |
|
|
|
794 |
|
Inventories, net |
|
201 |
|
|
|
2 |
|
Cost and
estimated earnings in excess of billings on uncompleted
contracts |
|
1,419 |
|
|
|
592 |
|
Prepaid
expenses and other current assets |
|
280 |
|
|
|
151 |
|
Current
portion of assets held for sale |
|
11,871 |
|
|
|
14,912 |
|
Total
current assets |
|
14,764 |
|
|
|
16,694 |
|
Property, plant and
equipment, net |
|
578 |
|
|
|
598 |
|
Advances to and
investments in foreign joint ventures |
|
9,869 |
|
|
|
10,947 |
|
Deferred tax
benefit |
|
40 |
|
|
|
- |
|
Other assets |
|
246 |
|
|
|
116 |
|
Assets held for sale,
less current portion |
|
6,506 |
|
|
|
7,566 |
|
Total
assets |
$ |
32,003 |
|
|
$ |
35,921 |
|
Liabilities, Convertible
Preferred Stock and Stockholders’ Equity |
|
|
|
Current
liabilities: |
|
|
|
Current
portion of long-term note payable |
$ |
360 |
|
|
$ |
270 |
|
Short-term note payable |
|
5,629 |
|
|
|
203 |
|
Accounts
payable and other accrued expenses |
|
2,023 |
|
|
|
1,058 |
|
Accrued
payroll and benefits |
|
613 |
|
|
|
574 |
|
Current
portion of liabilities held for sale |
|
13,710 |
|
|
|
13,558 |
|
Total
current liabilities |
|
22,335 |
|
|
|
15,663 |
|
Long-term note payable,
net |
|
- |
|
|
|
5,524 |
|
Deferred
compensation |
|
188 |
|
|
|
213 |
|
Liabilities held for
sale, less current portion |
|
- |
|
|
|
- |
|
Total
liabilities |
|
22,523 |
|
|
|
21,400 |
|
Convertible preferred
stock: |
|
|
|
Redeemable convertible preferred stock, Series A, net of discount
of $532 at June 30, 2018 and $562 at December 31, 2017;
$0.001 par value, 1,000,000 shares authorized, issued and
outstanding at June 30, 2018 and December 31, 2017 |
|
4,468 |
|
|
|
4,438 |
|
Stockholders’
equity: |
|
|
|
Common
stock; $0.001 par value, 50,000,000 shares authorized, 9,078,837
and 8,850,532 shares issued and 8,884,862 and 8,669,650 shares
outstanding at June 30, 2018 and December 31, 2017 |
|
9 |
|
|
|
9 |
|
Treasury
stock, at cost 193,975 and 180,882 shares at June 30, 2018 and
December 31, 2017 |
|
(934 |
) |
|
|
(916 |
) |
Additional paid-in capital |
|
14,331 |
|
|
|
13,811 |
|
Accumulated other comprehensive income |
|
(90 |
) |
|
|
401 |
|
Accumulated Deficit; including accumulated statutory reserves in
equity method investments of $2,809 at June 30, 2018 and
December 31, 2017 |
|
(8,304 |
) |
|
|
(3,222 |
) |
Total
stockholders’ equity |
|
5,012 |
|
|
|
10,083 |
|
Total
liabilities, convertible preferred stock and stockholders’
equity |
$ |
32,003 |
|
|
$ |
35,921 |
|
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, |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Net sales |
$ |
2,075 |
|
|
$ |
1,331 |
|
|
$ |
3,951 |
|
|
$ |
2,546 |
|
Cost of sales |
|
1,566 |
|
|
|
972 |
|
|
|
3,114 |
|
|
|
2,042 |
|
Gross margin |
|
509 |
|
|
|
359 |
|
|
|
837 |
|
|
|
504 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Research and
development |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Selling and
marketing |
|
98 |
|
|
|
127 |
|
|
|
190 |
|
|
|
264 |
|
General and
administrative |
|
469 |
|
|
|
499 |
|
|
|
936 |
|
|
|
1,016 |
|
Total operating
expenses |
|
567 |
|
|
|
626 |
|
|
|
1,126 |
|
|
|
1,280 |
|
Loss from continuing
operations |
|
(58 |
) |
|
|
(267 |
) |
|
|
(289 |
) |
|
|
(776 |
) |
Net equity income from
foreign joint ventures’ operations: |
|
|
|
|
|
|
|
Equity income from
foreign joint ventures’ operations |
|
284 |
|
|
|
134 |
|
|
|
455 |
|
|
|
186 |
|
Foreign joint ventures’
operations related expenses |
|
(50 |
) |
|
|
(64 |
) |
|
|
(110 |
) |
|
|
(128 |
) |
Net equity income from
foreign joint ventures’ operations |
|
234 |
|
|
|
70 |
|
|
|
345 |
|
|
|
58 |
|
Income (loss) from
continuing operations and net equity income from foreign joint
ventures’ operations |
|
176 |
|
|
|
(197 |
) |
|
|
56 |
|
|
|
(718 |
) |
Other income
(expense): |
|
|
|
|
|
|
|
Interest expense and
other, net |
|
(6 |
) |
|
|
(8 |
) |
|
|
68 |
|
|
|
40 |
|
Income (loss) from
continuing operations before income taxes |
|
170 |
|
|
|
(205 |
) |
|
|
124 |
|
|
|
(678 |
) |
Provision for (benefit
from) income taxes on continuing operations |
|
129 |
|
|
|
(90 |
) |
|
|
189 |
|
|
|
(73 |
) |
Net income (loss) from
continuing operations |
|
41 |
|
|
|
(115 |
) |
|
|
(65 |
) |
|
|
(605 |
) |
Loss from discontinued
operations |
|
(1,979 |
) |
|
|
(944 |
) |
|
|
(4,838 |
) |
|
|
(2,949 |
) |
Provision for (benefit
from) income taxes on discontinued operations |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net loss from
discontinued operations |
|
(1,979 |
) |
|
|
(944 |
) |
|
|
(4,838 |
) |
|
|
(2,949 |
) |
Net loss before
dividends on redeemable convertible preferred stock |
|
(1,938 |
) |
|
|
(1,059 |
) |
|
|
(4,903 |
) |
|
|
(3,554 |
) |
Dividends on redeemable
convertible preferred stock |
|
(90 |
) |
|
|
(89 |
) |
|
|
(179 |
) |
|
|
(178 |
) |
Net loss attributable
to common stockholders |
$ |
(2,028 |
) |
|
$ |
(1,148 |
) |
|
$ |
(5,082 |
) |
|
$ |
(3,732 |
) |
Loss per common share -
basic: |
|
|
|
|
|
|
|
Continuing operations |
$ |
(0.01 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.09 |
) |
Discontinued operations |
$ |
(0.22 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.55 |
) |
|
$ |
(0.35 |
) |
Consolidated operations |
$ |
(0.23 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.58 |
) |
|
$ |
(0.44 |
) |
Loss per common share -
diluted: |
|
|
|
|
|
|
|
Continuing operations |
$ |
(0.01 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.09 |
) |
Discontinued operations |
$ |
(0.22 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.55 |
) |
|
$ |
(0.35 |
) |
Consolidated operations |
$ |
(0.23 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.58 |
) |
|
$ |
(0.44 |
) |
American Electric Technologies, Inc. and
Subsidiaries |
Non-GAAP Financial Measures and
Reconciliations |
Computation of Earnings on Continuing
Operations , Including Net Equity Income from Foreign Joint
Ventures, Before Interest, |
Dividends, Taxes, Depreciation and
Amortization ("EBITDA") |
Unaudited |
(in thousands) |
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Net loss on continuing
operations attributable to common stockholders |
$ |
(49 |
) |
|
$ |
(203 |
) |
|
$ |
(244 |
) |
|
$ |
(783 |
) |
Add: Depreciation and
amortization |
|
11 |
|
|
|
27 |
|
|
|
24 |
|
|
|
55 |
|
Interest
expense |
|
4 |
|
|
|
5 |
|
|
|
11 |
|
|
|
6 |
|
Provision
for (benefit from) income taxes |
|
129 |
|
|
|
(90 |
) |
|
|
189 |
|
|
|
(73 |
) |
Dividend
on redeemable preferred stock |
|
89 |
|
|
|
89 |
|
|
|
179 |
|
|
|
178 |
|
EBITDA |
$ |
184 |
|
|
$ |
(172 |
) |
|
$ |
159 |
|
|
$ |
(617 |
) |
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