Questions? +1 (202) 335-3939 Login
Trusted News Since 1995
A service for banking industry professionals · Thursday, March 28, 2024 · 699,573,265 Articles · 3+ Million Readers

AETI announces Q2 results

HOUSTON, Aug. 14, 2018 (GLOBE NEWSWIRE) -- 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 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 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 )

Primary Logo

Powered by EIN News


EIN Presswire does not exercise editorial control over third-party content provided, uploaded, published, or distributed by users of EIN Presswire. We are a distributor, not a publisher, of 3rd party content. Such content may contain the views, opinions, statements, offers, and other material of the respective users, suppliers, participants, or authors.

Submit your press release