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AETI Announces Q4 and FY2016 Results

  • Q4 revenue up 22% vs Q4 2015 and up 8% versus Q3 2016
  • Highest quarter ending backlog since Q1 2016

HOUSTON, March 28, 2017 (GLOBE NEWSWIRE) -- American Electric Technologies, Inc. (NASDAQ:AETI), a leading supplier of power delivery solutions for the global energy industry, today announced its fourth quarter and fiscal year 2016 financial results.

AETI announced that fourth quarter revenues were $9.4 million, up 22% versus Q4 2015 and up 8% from Q3.

The company also saw continued strong backlog growth in the quarter, reporting Q4 ending backlog of $13.5 million, which is up 24% from $10.9M at the end of Q3 and is the highest quarter ending backlog since Q1 2016.

Based on the increased revenue, the Company reported a reduced EBITDA loss (a non-U.S. GAAP measure) of $1.4 million for the quarter, compared with an EBITDA loss of $2.3 million in Q3 2016 and $2.8 million in Q4 of 2015.

Subsequent to the end of the quarter, the company announced it had closed on a new $7.0 million credit facility which will be used to refinance existing debt and for general corporate purposes. A Form 8-K reporting the transaction was filed on March 27.

“We are pleased with the continued growth of our revenue and backlog in the quarter as we execute back to profitability,” said Charles Dauber, AETI president and chief executive officer. “Our new credit facility enables the company to continue to execute on our growth initiatives and positions us well for the future.”

The Company previously announced multiple project awards including for a New England LNG project, a landfill gas project, a multi-million project at one of the world’s largest Engineering Procurement and Construction (EPC) firms, and most recently a $6M award for the company’s IntelliSafe™ medium voltage arc-resistant switchgear for a leading midstream operator.

Conference Call
AETI will conduct a conference call at 10 a.m. EDT on March 28, 2017 to discuss the results with analysts, investors and other interested parties. Individuals who wish to participate in the conference call should dial 877-876-9176 passcode 966293, in the United States and Canada. International callers should dial +1 785-424-1667 passcode 966293.

American Electric Technologies, Inc. (NASDAQ:AETI) is a leading provider of power delivery solutions to the global energy industry. AETI offers M&I Electric power distribution and control products, electrical services, and construction services.

AETI is headquartered in Houston and has global sales, support and manufacturing operations in Beaumont, Texas; and Rio de Janeiro, Macaé and Belo Horizonte, Brazil. In addition, AETI has minority interests in two joint ventures, which have facilities located in Xian, China and Singapore. AETI's SEC filings, news and product/service information are available at www.aeti.com.

Forward Looking Statements
This press release contains forward-looking statements, as defined in Section 27A of the Securities Exchange Act of 1934, concerning anticipated future domestic and international demand for our products, and other future plans and objectives. While the Company believes that such forward-looking statements are based on reasonable assumptions, there can be no assurance that such future revenues, profits, plans and objectives will be achieved on the schedule or in the amounts indicated. Investors are cautioned that these forward-looking statements are not guarantees of future performance. Actual events or results may differ from the Company’s expectations, and are subject to various risks and uncertainties, including those listed in Item 1A of the Form 10-K filed with the Securities and Exchange Commission on March 30, 2016. 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
Condensed Consolidated Statements of Operations
Unaudited
(in thousands, except share and per share data)
Three Months Ended December 31, Twelve Months Ended December 31,
2016 2015 2016 2015
Net sales$ 9,397 $ 7,690 $ 37,812 $ 49,083
Cost of sales 9,247 7,988 36,796 42,493
Gross profit 150 (298) 1,016 6,590
Operating expenses:
Research and development 98 265 962 769
Selling and marketing 422 738 2,181 2,380
General and administrative 1,328 1,736 5,242 5,782
Total operating expenses 1,848 2,739 8,385 8,931
Loss from operations (1,698) (3,037) (7,369) (2,341)
Net equity income (loss) from foreign joint ventures’ operations:
Equity income (loss) from foreign joint ventures’ operations 162 116 529 741
Foreign joint ventures’ operations related expenses (43) (83) (245) (393)
Net equity income from foreign joint ventures’ operations 119 33 284 348
Loss from operations and net equity income from foreign joint ventures’ operations (1,579) (3,004) (7,085) (1,993)
Other income (expense):
Interest expense and other, net (131) (15) 69 (172)
Loss before income taxes (1,710) (3,019) (7,016) (2,165)
Provision for (benefit from) income taxes (6) 599 44 428
Net loss before dividends on redeemable convertible preferred stock (1,704) (3,618) (7,060) (2,593)
Dividends on redeemable convertible preferred stock (88) (88) (353) (349)
Net loss attributable to common stockholders$ (1,792) $ (3,706) $ (7,413) $ (2,942)
Earnings (loss) per common share:
Basic$ (0.21) $ (0.45) $ (0.89) $ (0.36)
Diluted$ (0.21) $ (0.45) $ (0.89) $ (0.36)
Weighted - average number of common shares outstanding:
Basic 8,337,426 8,253,889 8,305,764 8,241,585
Diluted 8,337,426 8,253,889 8,305,764 8,241,585

American Electric Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
December 31, December 31,
2016 2015
Assets
Current assets:
Cash and cash equivalents$ 1,618 $ 7,989
Short-term investments 507 507
Accounts receivable-trade, net of allowance of $204 and $225 at December 31, 2016 and December 31, 2015 6,717 6,853
Inventories, net of allowance of $60 at both December 31, 2016 and December 31, 2015 1,181 1,325
Cost and estimated earnings in excess of billings on uncompleted contracts 5,829 2,302
Prepaid expenses and other current assets 349 324
Total current assets 16,201 19,300
Property, plant and equipment, net 7,298 7,915
Advances to and investments in foreign joint ventures 10,663 11,104
Retainage receivable 649 -
Intangibles 527 218
Other assets 46 49
Total assets$ 35,384 $ 38,586
Liabilities, Convertible Preferred Stock and Stockholders’ Equity
Current liabilities:
Revolving line of credit$ 1,500 $ 1,043
Current portion of long-term note payable 300 300
Accounts payable and other accrued expenses 9,798 4,907
Accrued payroll and benefits 1,093 476
Billings in excess of costs and estimated earnings on uncompleted contracts 208 1,629
Total current liabilities 12,899 8,355
Long-term note payable 3,900 4,200
Deferred compensation 260 305
Deferred income taxes 2,824 3,064
Total liabilities 19,883 15,924
Convertible preferred stock:
Redeemable convertible preferred stock, Series A, net of discount of $617 at December 31, 2016 and $671 at December 31, 2015; $0.001 par value, 1,000,000 shares authorized, issued and outstanding at December 31, 2016 and December 31, 2015 4,383 4,329
Stockholders’ equity:
Common stock; $0.001 par value, 50,000,000 shares authorized, 8,499,508 and 8,385,929 shares issued and 8,335,968 and 8,254,001 shares outstanding at December 31, 2016 and December 31, 2015 8 8
Treasury stock, at cost 163,540 shares at December 31, 2016 and 131,928 shares at December 31, 2015 (863) (792)
Additional paid-in capital 12,613 12,032
Accumulated other comprehensive income (2) 310
Retained (deficit) earnings; including accumulated statutory reserves in equity method investments of $2,887 and $2,722 at December 31, 2016 and December 31, 2015 (638) 6,775
Total stockholders’ equity 11,118 18,333
Total liabilities, convertible preferred stock and stockholders’ equity$ 35,384 $ 38,586

American Electric Technologies, Inc. and Subsidiaries
Non-GAAP Financial Measures and Reconciliations
Computation of Earnings on Continuing Operations , Including Net Equity Income from Foreign Joint Ventures, Before Interest,
Dividends, Taxes, Depreciation and Amortization ("EBITDA")
Unaudited
(in thousands)
Three Months Ended December 31, Twelve Months Ended December 31,
2016 2015 2016 2015
Net income (loss) attributable to common stockholders
$ (1,792) $ (3,706) $ (7,413) $ (2,942)
Add: Depreciation and amortization 217 221 877 894
Interest expense 78 15 251 172
Provision for (benefit from) income taxes (6) 599 44 428
Dividend on redeemable preferred stock 88 88 353 349
EBITDA$ (1,415) $ (2,783) $ (5,888) $ (1,099)
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 2015 10-K which was filed on March 30, 2016.

Investor Contact: American Electric Technologies, Inc. Bill Brod 713-644-8182 investorrelations@aeti.com

Source:American Electric Technologies, Inc.