Exhibit 99.3
Slide 1
First Quarter 2004 Earnings Call
April 27, 2004 9:00 AM EDT
Slide 2
“Forward Looking Statements”
Statements made during this presentation are based on management’s beliefs as well as assumptions made by, and information currently available to management, pursuant to “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995. While these statements reflect our best judgment, they are subject to risks and uncertainties that could cause a change in focus and direction. Information concerning some of the factors that could cause actual results to differ materially from those in, or implied by, the forward looking statements are set forth under “Risk Factors” in the Company’s Form 10-K for the period ending December 27, 2003.
Non-GAAP Financial Measure
This presentation contains disclosure of EBITDA, which is a non-GAAP financial measure within the meaning of Regulation G promulgated by the Securities and Exchange Commission. A reconciliation of EBITDA to net income available to common stockholder before income taxes, the most directly comparable GAAP financial measure, as well as additional information concerning EBITDA, is included in the exhibits to Global Power Equipment Group’s first quarter earnings release of April 26, 2004. This press release is available at http://www.globalpower.com by accessing Press Releases through the Investor Relations tab.
Slide 3
Operating Environment
1. Sales/Bookings Overview
Middle East #1 Opportunity 1st Half ‘04 China Bundle Buy – Phase 2 RFQ’s Continue to Increase
2. Impact of Higher Steel Prices
Slide 4
Financial Results – 1Q04 vs. 1Q03
In $000s, except per share and % chg
1Q04 1Q03 % Chg % Chg
Revenues $ 55,126 $ 77,026 -28.4%
Direct Costs $ 43,313 $ 55,808 -22.4%
Gross Margin $ 11,813 $ 21,218 -44.3%
Gross Margin Percent 21.4% 27.5% -6.1pts
Operating Expenses
G&A $ 7,599(a) $ 6,257 +21.4%
Other 2,662 3,207 -17.0%
Total Operating Expenses $ 10,261 $ 9,464 +8.4%
Operating Profit $ 1,552 $ 11,754 -86.8%
Net Interest Expense $ 200 $ 498 - -59.8%
Net Income Before Income Taxes $ 1,352 $ 11,256 -88.0%
Income Tax Provision $ 514 $ 4,390 -88.3%
Net Income $ 838 $ 6,866 -87.8%
Diluted Shares Outstanding 46,727 45,609 2.5%
EPS $ 0.02 $ 0.15 -86.7%
EBITDA $ 2,390 $ 12,662 -81.1%
(a)—includes $2,023 related to restructuring programs
Slide 5
Gross Margins
By Quarter
30%
25%
21.4%
Average
20% 20.7%
15%
10%
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
1999 2000 2001 2002 2003 2004
Average for year 17.9% 17.0% 18.2% 22.4% 27.1%
Slide 6
Financial Results
Segment and Geographic Details
1Q04 vs. 1Q03
In $000s, except % chg
Revenues 1Q04 1Q03 Change % Chg
Heat Recovery Equipment $ 28,436 $ 36,697 $ (8,261) (22.5)%
Auxiliary Power Equipment 26,690 40,329 (13,639) (33.8)%
Total $ 55,126 $ 77,026 $ (21,900) (28.4)%
North America $ 28,854 $ 54,062 $ (25,208) (46.6)%
Asia 6,693 3,475 3,218 92.6%
Europe 5,853 6,722 (869) (12.9)%
Middle East 12,721 9,074 3,647 40.2%
Other 1,005 3,693 (2,688) (72.8)%
Slide 7
Geographic Sales Mix
100%
Revenue 75%
International
of
50%
Percent
25%
North America
0%
1997 1998 1999 2000 2001 2002 2003 1Q04 2005E
Actual
Slide 8
Historical Backlog
By Month
750 At quarter’s end
500
MMs
$
250
0
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M
1999 2000 2001 2002 2003 2004
Slide 9
Financial Results – 1Q2004
Cash & Cash Usage
In $000s
FY2001 FY2002 FY2003 1Q2004
Beginning of period cash $ 26,308 $ 2,435 $ 59,042 $ 51,315
EBITDA 94,361 92,936 36,977 2,390
Other operating, investing, financing activities 6,790 12,123 (9,183) 8,159
Change in debt (113,465) (45,556) (35,110) (8,316)
Capital expenditures (11,559) (2,896) (411) (134)
Change in cash (23,873) 56,607 (7,727) 2,099
Cash at end of period $ 2,435 $ 59,042 $ 51,315 $ 53,414
Total Debt / Net Debt as of:
12/30/00 Total Debt $ 219,094
Net Debt 192,786
12/29/01 Total Debt $ 105,629
Net Debt 103,194
12/28/02 Total Debt $ 60,073
Net Debt 1,031
12/27/03 Total Debt $ 24,963
Net Debt (26,352)
3/27/04 Total Debt $ 16,647
Net Debt (36,767)
Note: Net Debt is Total Debt less Cash & Cash Equivalents.
Slide 10
Key Financial Statistics
As of 3/27/04
Net working capital (average LTM)—$000s $ (33,406)
EBITDA—$000s $ 2,390
Total debt - $000s $ 16,647
Cash & Cash Equivalents—$000s $ 53,414
Net debt—$000s $ (36,767)
Stockholders’ equity—$000s $ 161,109
Total capital invested (Stockholders’ equity + LT-Debt)—$000s $ 177,756
Total debt to total capitalization 10.3%
Pre-tax Return on Average Invested Capital (LTM) 18.4%
Pre-tax Return on Average Equity (LTM) 14.6%
*Pre-tax returns are based on reported pre-tax earnings over the past four quarters for average invested capital and average equity
Note: Net Debt is Total Debt less Cash & Cash Equivalents.
Slide 11
Thank You
For Additional Information Please Contact: Bob Zwerneman Director, Investor Relations Global Power Equipment Group Inc.
(918) 274-2398 bobz@globalpower.com