NOS4-1 (WLMSQ) 8-K Regulation FD Disclosure

1

Exhibit 99.1

Investor Presentation

2

This

presentation

contains

"forward-looking

statements"

within

the

meaning

of

that

term

set

forth

in

the

Private

Securities

Litigation

Reform

Act

of

1995.

These

statements

reflect

our

current

views

of

future

events

and

financial

performance

and

are

subject

to

a

number

of

risks

and

uncertainties.

Our

actual

results,

performance

or

achievements

may

differ

materially

from

those

expressed

or

implied

in

the

forward-looking

statements.

Risks

and

uncertainties

that

could

cause

or

contribute

to

such

material

differences

include,

but

are

not

limited

to,

decreased

demand

for

new

gas

turbine

power

plants,

reduced

demand

for,

or

increased

regulation

of,

nuclear

power,

loss

of

any

of

our

major

customers,

cost

increases

and

project

cost

overruns,

unforeseen

schedule

delays,

poor

performance

by

our

subcontractors,

cancellation

of

projects,

competition

for

the

sale

of

our

products

and

services,

shortages

in,

or

increases

in

prices

for,

energy

and

materials

such

as

steel

that

we

use

to

manufacture

our

products,

damage

to

our

reputation,

warranty

or

product

liability

claims,

increased

exposure

to

environmental

or

other

liabilities,

failure

to

comply

with

various

laws

and

regulations,

failure

to

attract

and

retain

highly-qualified

personnel,

volatility

of

our

stock

price,

deterioration

or

uncertainty

of

credit

markets,

and

changes

in

the

economic,

social

and

political

conditions

in

the

United

States

and

other

countries

in

which

we

operate,

including

fluctuations

in

foreign

currency

exchange

rates,

the

banking

environment

or

monetary

policy.

Other

important

factors

that

may

cause

actual

results

to

differ

materially

from

those

expressed

in

the

forward-looking

statements

are

discussed

in

our

filings

with

the

Securities

and

Exchange

Commission,

including

the

section

of

our

Registration

Statement

on

Form

10

titled

"Risk

Factors."

Except

as

may

be

required

by

applicable

law,

we

undertake

no

obligation

to

publicly

update

or

revise

any

forward-looking

statements,

whether

as

a

result

of

new

information,

future

events or otherwise, and we caution you not to rely upon them unduly.

Forward-Looking Statements

3

Market Overview

Market Overview

1.

Power Generation equipment and service is one of the largest industries worldwide

2.

Technology is stable

–

owners are conservative due to the large capital investments

3.

Economics

of

power

generation

plants

are

dynamic

due

to

fluctuating

fuel

prices

and

environmental compliance costs

4.

Service market is stable / slow growth and consistently profitable

5.

OEM / new equipment market is global, cyclical and generates higher risks and earnings

swings

Global Power

Mission Statement

Mission Statement

We will safely provide superior engineered products and services

that exceed

customer standards while affording employees opportunities for career growth and

earning our investors a superior rate of return on their investment.

4

Global Power

What we do

Global

Power

Equipment

Group

Inc.

is

a

comprehensive

provider

of

power

generation

equipment

and

maintenance

services

for

customers

in

the

domestic

and

international

energy,

power

infrastructure

and

service

industries.

5

Global Power

Executive management

Tracy Pagliara

General Counsel, Secretary &

VP Business Development

25 yrs experience

David Willis

CFO & SVP

17 yrs experience

Ken Robuck

SVP & President of Services

28 yrs experience

Dean Glover

SVP & President of Products

20 yrs experience

David Keller

President & CEO

30 yrs experience

6

A Global Presence

Cost effective / low risk OEM model takes us worldwide

7

Financial Overview

6/30/10 Snapshot

Market cap (9/9/10):

$232

million

Total unrestricted cash:

$66 million

Cash position net of term loan:

$42 million

Total backlog:

$298 million

Fully diluted shares:

16.2 million

Operating revenues:

$282 million

Net income:

$22 million

Earnings per fully diluted share:

$1.35

Consolidated operating EBITDA:

$26 million

Year to Date

6/30/10

As of 6/30/10

EBITDA is a non-GAAP measure; see appendix for reconciliation to net income

8

Snapshot of Backlog

66%

51%

38%

37%

33%

34%

49%

62%

63%

67%

2007

2008

2009

1Q10

2Q10

Products

Services

Historical Backlog

Historical Backlog

$377

$332

$314

$267

$298

Services

62%

Products

38%

Segment

Cost

Plus

90%

Fixed

Price

10%

Contract Type

Services

(Williams)

Fixed

Price

100%

Contract Type

Products

(Braden/Deltak)

Backlog (6/30/10)

Backlog (6/30/10)

9

Blue Chip Customer Base

Bad debt expense and warranty claims represent 0.166%

of

revenues from top 10 customers from 2007 –

2009.

1) As of August 2010

2) Bond issue rating

Credit

% of GPEG

Bad Debt

Warranty

Relationship

Rating ¹

Revenue

Exp

Claims

Tenure

($ in 000's)

($ in 000's)

1.

General Electric

AA+ / stable

42 years

2.

Southern Company

A / stable

40 years

3.

Tennessee Valley Authority

A / stable ²

34 years

4.

Florida Power & Light Group

A- / stable

34 years

5.

Energy Northwest

AA / stable ²

5 years

6.

Siemens

A+ / stable

39 years

7.

Entergy

BBB / stable

1 year

8.

Jacksonville Electric Authority

A+ / stable ²

19 years

9.

Alstom

BBB+ / Neg

18 years

10.

Mitsubishi

A / stable

16 years

    Subtotal - Top Customers

79%

43

$          

1,705

$     

All Others

21%

    Total Revenue

100%

Customer

2007 - 2009

10

Strategic Overview

Where we have been

Global Power has strengthened and repositioned itself over the last four years

Exited large-scale  HRSG

product line

Divested foreign subsidiary

Successfully exited Chapter 11

Additional equity capital

Commenced trading under

“GLPW”

on Pink Sheets

Entered into $150m exit

facility:

-

$90m term loan

-

$60m revolver facility

New management

Successfully re-listed on NASDAQ to

capitalize on strong performance and

position company for growth

Solid financials/Operating Performance

(across 2008-10)

-

Unrestricted cash of $66.3m

-

Term loan balance reduced from

$90m to $24.6m

Improving management systems and

controls

11

Strategic Overview

Where we are going

Organic Outlook

Organic Outlook

Products

OEM market expected to stabilize in 2011 with industry consensus view of recovery in 2012 of gas

turbine power projects

-

2011 revenues: potential growth range of mid-single digits compared to 2010

-

2011 gross margins anticipated to be mid-single digits lower than 2010 as current prospects are

booking

at

lower

margins

compared

to

1

st

half

2010

results

Services

is positioned to pursue more capital projects; shift in mix from maintenance and modification    

work could result in “lumpy”

bookings activity

-

2011 revenues anticipated to be flat to mid-single digit decline compared to 2010 due to the

completion of a large site security project

-

2011

margins

anticipated

to

stabilize

at

historical

run

rates

of

10%

-

13%

Consolidated operating expenses expected to stabilize at more predictable levels in 2011

One time non-recurring expenses: re-listing

/ SOX audit preparation

12

Strategic Overview

Where we are going (cont’d)

Acquisition Prospects

Acquisition Prospects

Products

acquisition targets include:

-

Bolt-on product lines

-

Product offerings that complement existing markets or broaden exposure beyond OEM

gas turbine cycle

Services

acquisitions targets include:

-

Specialty services that enhance our current capabilities

-

Engineering

and

design

capabilities

open

additional

EPC

project

opportunities

(we

currently participate in this space through alliances with engineering firms or through

subcontract relationships)

Opportunities will be prioritized based on a disciplined valuation approach, strategic fit and

timeline for accretion to shareholders

13

Global Power

Strong fundamental structure for a growing industry

Strong commercial risk / reward profile

Flexible manufacturing model

Geographic and end-market diversity

Long-standing relationships with a blue-chip customer base

Strong free cash flow generation

Favorable end-market dynamics

Acquisition growth opportunities

14

Industry

15

Poised For Growth

In a changing industry

Source: DOE Annual Energy Outlook, December, 2009

Hydropower*

10%

Nuclear

10%

Other

Renewables

4%

Other

12%

Coal

31%

Natural Gas

33%

2008 Capacity

Nuclear

3%

Other

Renewables

37%

Other 

1%

Natural Gas

46%

Coal

13%

Hydropower*

0.4%

Capacity Additions 2008 to 2035

* Includes storage

1,008

Gigawatts

250

Gigawatts

Natural

gas-fired

plants

utilizing

gas

turbine

power

generation

equipment

are

expected

to account for 46% of capacity additions through 2035

Environmental concerns favor gas-fired generation, especially in countries with a high

dependence on coal-fired output

16

Comparative Economics

Source: Compiled by FERC staff from various sources

FERC forecast data demonstrates gas is expected to be a compelling fuel source for power

generation capacity additions

Nuclear

Conventional Coal

IGCC Coal

Combined Cycle (Gas)

Combustion Turbine (Gas)

Wind

2003-04

Geothermal

2008

Concentrated Solar

$/kw

$6,000

$7,000

$8,000

$0

$1,000

$2,000

$3,000

$4,000

$5,000

17

United

States

currently

has

104

operating

nuclear

reactors

at

65

plant

sites

that

generate

about

20%

of

electricity used in the US. These plants have been in operation for an average of 30 years and are

operating at close to 90% capacity.

In 2000, the NRC issued the first license renewal to a nuclear power plant, extending its license for an

additional 20 years beyond its original 40-year license.

Capacity Factor Trend

Source: Department of Energy

Maintenance:  A Multi-Billion Dollar Industry

Aging nuclear fleet that requires extensive ongoing services

18

Services Spectrum 2010

Nuclear Power

Plant

Maintenance

Fossil Fuel,

Hydroelectric

Power Plant

Maintenance

Industrial

Painting and

Coatings

Insulation

Roofing

Systems

Abatement

Valve Services

What it is

Performed during

outages,

decommissioning

services

Routine maintenance,

repair and capital project

services

Clearing, surface

preparation, coatings

application, quality

control and inspection

testing

Industrial insulation

services commonly

packaged with industrial

coatings projects

Replace, repair and

upgrade industrial facility

roofing systems

Removal of asbestos

and heavy metal based

coatings such as lead

paint

Inspection, preventative

maintenance, repair of

valves and actuators

Nature of

contract award

Primarily Cost Plus

Primarily Cost Plus

Cost Plus

Cost Plus

Cost Plus

Cost Plus

Cost Plus/Fixed Price

Key Players

Bartlett,

Day

&

Zimmerman,

Shaw

Group,

URS

Alstom,

Babcock

&

Wilcox,

Foster

Wheeler,

Jingoli,

Kiweit,

Matrix,

Shaw

Group,

Southern

Industrial,

URS,

WW

Gay,

Yates

Brock,

K2

Industrial,

Manta

Brock,

K2

Industrial,

LVI,

Shook

and

Fletcher,

Vulcan

Brock,

Denard,

K2

Industrial

K2

Industrial,

LVI,

Shook

and

Fletcher,

Vulcan

Day

&

Zimmerman,

Ames,

Crane

19

Products Spectrum 2010

Filter Houses

Inlet Systems

Exhaust Systems

Diverter Dampers

HRSGs

Specialty Boilers

What it is

Cleans debris and dirt from

air that enters gas turbine

Connects the filter house to

gas turbine and provides

noise control

Directs hot exhaust from the

turbine to the atmosphere

Diverts hot exhaust from

the gas turbine into a HRSG

at a CCS facility, or into

exhaust stack at a simple

cycle facility

Boiler that creates steam to

drive a steam turbine used

for industrial processing

Highly customized system

to capture waste heat and

convert it to steam

Nature of

contract award

Fixed Price

Fixed Price

Fixed Price

Fixed Price

Fixed Price

Fixed Price

Key Players

AAF,

BHA/Altair,

Camfill

Farr

Eng,

Donaldson,

J&G

Steel,

Bilfinger

&

Burger,

G&H

AAF,

BHA/Altair,

Camfill

Farr

Eng,

Donaldson,

J&G

Steel,

Bilfinger

&

Burger

AAF,

Atco/Higgot

Kane,

Bachmann,

Camfill

Farr

Eng,

G&H,

NEM

Power

Systems,

Peerless

Bachmann,

Camfill

Farr

Eng,

Donaldson,

NEM

Power

Systems,

Stejasa

EIT,

Vogt,

Aalborg,

NEM

Power

Systems,

Nooter

Erikson

Rentech,

NEM

Power

Systems,

Technotherm

20

Operating Divisions

21

Braden

Headquarters in Tulsa, OK and

Herleen, The Netherlands

Global sales representatives located in

the US, The Netherlands, Egypt, Korea

and China

Braden engineers work exclusively on

gas turbine plan designs

Highly flexible outsourced

manufacturing model

-

25-30% In-house

-

70-75% Outsourced

22

Supplied Filter Houses and Exhaust

Systems for 2 X 7FA Gas Turbine Power

Plant in Florida

All fabrication completed in house by

Braden Mexico

Very stringent low noise acoustical

requirements

Two Customers:

Braden

Greenland Energy Center Project -

Florida

-

Filter Houses Supplied to Turbine OEM

-

Exhaust System supplied to the EPC

23

One of the world’s largest natural gas transmission projects; 12,000 miles across

China

71 gas turbine exhaust systems; 100% market share

Order executed in local currency using Braden Shanghai Office

Fabricated

In

China

using

local

fabrication

partners

and

locally

available

material,

100% on time

Braden

West to East Gas Pipeline Project -

China

24

Braden

The value model…attractive margins / low cost base

•

Proprietary designs

•

Extensive operating track record

•

High end quality

•

Commercial savvy

•

Low capital asset base

•

Low cost fabrication

•

Absence of performance

guarantees

Pricing Leverage

Attractive Profit Margins

Favorable Cost

Position

Braden

Industry

Braden primarily serves the

worldwide gas turbine market

Natural gas-fired plants expected

to account for 46% of capacity

additions, as compared with 37%

for renewables, 12% for coal-fired

power plants and 3% for nuclear

through 2035

Upwards trend on average revenue

per new unit shipped

Average Revenue per Turbine Shipped

*Information per internal company estimates; 2005 is unaudited

Source: DOE Annual Energy Outlook 2010

Braden Revenue & EBITDA

25

26

Williams

Headquarters in Tucker, GA

Seasoned Management/Project

Supervisory Staff

Top 5% in Industrial Safety Performance

Primarily Services US Nuclear Power

Plants

Multi-year Contracts for Nuclear Outage

Maintenance and Modification Work

Provider of Specialty Services at  Nuclear and

Industrial Sites

-

On 35 of 65 Nuclear Plant Sites

27

Williams

Value

proposition

Client Benefits

Williams

Industry

Williams primarily services U.S.

nuclear power plants

Nuclear power is a significant

component of the U.S. power

supply

Electricity generation from

nuclear power plants is expected

to grow from 806 billion kilowatt-

hours in 2008 to 898 billion

kilowatt-hours in 2035

The mix of future investments in

new power plants expected to

include fewer coal-fired plants

than other fuel technologies

Source: EIA Outlook, December 2009

Billion

kwh

Williams Revenue & Gross Margin

28

*2005 is unaudited; reflects results post acquisition from 4/5/05 – 12/31/05

29

Security

upgrades

for

entire

nuclear

fleet

–

North

and

South

Integrated design / build contract

ENERCON has design scope

Williams has construction, purchasing, and

subcontracts

Cameras, fencing, observation towers and other

security upgrades

Williams/ENERCON

Alliance for nuclear capital project

30

Williams

Energy Northwest reactor siding project

An

excellent

safety

record

with

zero

recordables

while

working

200’

in

the

air

Only

re-siding

project

in

the

world

that

was 

performed while the station was on-line

Provided the client with specialized

methods for

accessing the work area

Delivered the project under the estimated   

funding and ahead of schedule

Completed extended condition repairs to   

other buildings

31

Williams

Company information

Employees

-

Approximately 250 FT

-

Up to 6,000 Craft

-

(Average 3,000)

Work Type

-

60% maintenance

-

30% capital projects

-

10% new construction

Double-breasted

-

Union labor

-

Non-union labor

Customers

-

70% private sector

-

65% repeat business

32

Deltak

Headquarters in Plymouth, MN

Majority of manufacturing is completed 

in-house for domestic projects

Specialty boiler systems for municipal

waste incinerators and chemical processes

Mid-sized HRSGs (<85MW) for power  

applications, industrial process and  

enhanced oil recovery

33

Deltak

Industry

Industrial and utility markets which include refineries, petrochemical,

pharmaceutical, paper and pulp and steel companies, in addition to

utilities, account for the bulk of the market for cogeneration equipment

Deltak anticipates growth in the mid-sized HRSG and CHP markets

General shift towards lowering carbon off take adding momentum to

generation

Sweet spot refineries

34

Global Power

Strong fundamental structure for a growing industry

Strong commercial risk / reward profile

Flexible manufacturing model

Geographic and end-market diversity

Long-standing relationships with a blue-chip customer base

Strong free cash flow generation

Favorable end-market dynamics

Acquisition growth opportunities

35

David L. Keller

President and Chief Executive Officer

David

L.

Keller

served

as

the

President

and

Chief

Operating

Officer

of

The

Babcock

&

Wilcox

Company

(B&W),

a

wholly

owned

subsidiary

of

McDermott

International,

Inc.,

from

March

2001

until

his

retirement

in

June

2007.

B&W,

a

company

with

approximately

$2

billion

in

revenues

in

2006,

supplies

fossil-fuel

fired

boilers,

commercial

nuclear

steam

generators,

environmental

equipment

and

components,

and

boiler

auxiliary

equipment

and

provides

related

services,

including

construction

services.

Mr.

Keller’s

prior

position

was

President

of

Diamond

Power

International,

Inc.,

a

wholly

owned

subsidiary

of

B&W,

from

March

1998

to

February

2001.

During

his

tenure

with

B&W,

Mr.

Keller

served

as

a

Board

Chairman

or

Director

of

subsidiaries

and

joint

ventures

in

the

Peoples

Republic

of

China,

Denmark,

the

United

Kingdom,

Australia

and

South

Africa.

He

holds

a

Bachelor

of

Science

degree

in

Mathematics

from

the

University

of

Akron.

David L. Willis

Chief Financial Officer and Senior Vice President

•

David

L.

Willis

has

a

broad

range

of

leadership

experience

across

a

range

of

industries:

restructuring

advisory

services,

telecommunications,

energy

companies

and

public

accounting.

From

October

2001

to

January

2008,

he

was

with

the

restructuring

practice

of

Alvarez

&

Marsal

LLC,

a

global

professional

services

firm,

where

he

served

clients

in

advisory

and

interim

management

capacities,

most

recently

as

Senior

Director,

overseeing

the

development

and

implementation

of

initiatives

to

improve

operational

and

financial

performance.

Prior

to

Alvarez

&

Marsal,

Mr.

Willis

held

positions

with

The

Williams

Communications

Group

and

Ernst

&

Young.

Mr.

Willis

received

his

Bachelor

of

Business

Administration

degree

from

the

Price

College

of

Business

at

the

University

of

Oklahoma

and

holds

an

M.B.A.

from

the

University

of

Tulsa.

He

is

a

Certified

Public

Accountant

and

has

a

Certified

Insolvency

and

Restructuring

Advisor

certification

(inactive).

Management

Years of

Experience

30

17

36

Tracy D. Pagliara

General Counsel, Secretary and VP of Business Development

•

Tracy

D.

Pagliara

served

as

the

Chief

Legal

Officer

of

Gardner

Denver,

Inc.,

a

leading

global

manufacturer

of

highly

engineered

compressors,

blowers,

pumps

and

other

fluid

transfer

equipment,

from

August

2000

through

August

2008.

He

also

had

responsibility

for

other

roles

during

his

tenure

with

Gardner

Denver,

including

Vice

President

of

Administration,

Chief

Compliance

Officer,

and

Corporate

Secretary.

Prior

to

joining

Gardner

Denver,

Mr.

Pagliara

held

positions

of

increasing

responsibility

in

the

legal

departments

of

Verizon

Communications/GTE

Corporation

from

August

1996

to

August

2000

and

Kellwood

Company

from

May

1993

to

August

1996,

ultimately

serving

in

the

role

of

Assistant

General

Counsel

for

each

company.

Mr.

Pagliara

has

a

B.S.

in

Accounting

and

a

J.D.

from

the

University

of

Illinois.

He

is

a

member

of

the

Missouri

and

Illinois

State

Bars

and

a

Certified

Public

Accountant.

Kenneth W. Robuck

Senior Vice President and President of the Services Division

•

Kenneth

W.

Robuck

originally

joined

the

Williams

Group

in

1995;

he

left

the

company

for

a

brief

period

and

returned

in

2005

to

run

Williams

Plant

Services,

LLC,

the

largest

of

the

Williams’

subsidiaries,

which

is

responsible

for

all

major

maintenance

and

construction

services

work.

In

early

2006,

Mr.

Robuck

assumed

the

additional

responsibility

of

Chief

Operating

Officer

and

was

appointed

President

of

the

Williams

Group

in

October

2007.

Mr.

Robuck

has

over

27

years

experience

in

the

nuclear

power,

fossil-fuel

power,

petrochemical

and

related

industrial

industries.

Mr.

Robuck

is

a

graduate

of

Auburn

University with a B.S. in Civil Engineering.

•

Management

Years of

Experience

25

28

37

Dean J. Glover

Senior Vice President and President of the Products Division

Dean

J.

Glover

joined

Braden

Manufacturing

in

December

2005

as

Chief

Operating

Officer

and

was

promoted

to

his

positions

at

Global

Power

and

Deltak

in

September

2008.

Mr.

Glover

has

extensive

international

experience

having

lived

in

various

international

locations

for

most

of

his

career.

Mr.

Glover

has

over

18

years

of

commercial

and

technical

experience

in

the

power

industry.

Prior

to

joining

Global

Power,

Mr.

Glover

led

the

global

supply

chain,

including

manufacturing

for

Diebold

Inc.

Prior

to

this,

Mr.

Glover

spent

13

years

with

General

Electric

in

various

managerial

and

technical

roles

and

is

a

certified

Six

Sigma

Master

Blackbelt.

Mr.

Glover

holds

a

Bachelors

Degree

in

Mechanical

Engineering

from

the

University

of

Nebraska

and

an

M.B.A.

from

the

Kellogg

Graduate

School

of

Management,

Northwestern

University.

•

Management

Years of

Experience

20

38

Appendix

Company history

The Braden Group founded as Braden Steel in 1923 in Tulsa

Various owners over the next six decades, vast assortment of products spanning several industry

sectors:

-

Metal buildings, air inlet and exhaust systems, large mining trucks, pump jacks, magnetic

containment enclosures, industrial incinerators, heat recovery boilers

The Williams Group formed in 1958 as a family owned specialty painting business

The Deltak Group formed in 1969 and spun out to employees in 1972

The Braden Group sold to Jason Incorporated in 1989, which also purchased the Deltak Group in 1994,

forming Global Power’s predecessor, Jason Power Systems

GEEG Holdings L.L.C. created through leveraged buyout in 1998

-

Private

equity

sponsor

—

Sawmill

Capital

-

GEEG purchased by Harvest Partners in August 2000

-

Purchased Consolidated Fabricators in September 2000

Global Power Equipment Group formed through IPO in May, 2001

-

Purchased Deltak Power Equipment China (“DPEC”) in July 2004*

-

Purchased the Williams Group in April 2005

* Sold in 2007 when Deltak exited the large-scale HRSG business

39

Appendix

Balance sheet highlights

GPEG has strengthened its balance by building cash and paying down debt since the

emergence from Chapter 11 in January 2008.

Cumulative

3/31/08

12/31/08

12/31/09

6/30/10

Variances

Unrestricted Cash

36,540

$ 

57,633

$ 

103,220

$

66,283

$ 

29,743

$ 

Restricted Cash

3,006

3,013

2,018

1,019

Other Current Assets

138,092

124,154

109,774

107,949

Current Assets

177,638

184,800

215,012

175,251

Fixed Assets

12,639

12,610

12,945

12,545

Goodwill & Intangibles

98,414

96,909

95,149

94,269

Other Assets

6,227

6,720

6,114

4,196

Total Assets

294,918

301,039

329,220

286,261

Accounts Payable / Accruals

44,665

42,588

58,801

41,832

Deferred Revenue

17,895

8,695

3,006

-

Other Current Liabilities

53,222

44,174

46,311

45,285

Current Liabilities

115,782

95,457

108,118

87,117

Term Debt (including current portion)

88,750

85,000

65,325

24,633

(64,117)

$

Other Long-Term Liabilities

19,379

15,309

19,299

19,032

Total Liabilities

231,040

195,766

192,742

130,782

Stockholders Equity

71,007

105,273

136,478

155,479

84,472

$ 

Total Liabilities & Equity

302,254

$

301,039

$

329,220

$

286,261

$

40

Appendix

Operations highlights

Over this period, GPEG’s Products and Services platforms have balanced one another

through the recent cycle in the gas turbine OEM space

Actual

Actual

Six Months

Ended

2008

2009

6/30/10

Revenue

556,764

$    

540,610

$    

281,810

$    

Cost of Sales

456,784

460,185

232,406

Gross Profit

99,980

80,425

49,404

% of Revenue

18.0%

14.9%

17.5%

Operating Expenses

50,418

46,664

24,788

% of Revenue

9.1%

8.6%

8.8%

Operating Profit (Loss)

49,562

33,761

24,616

% of Revenue

8.9%

6.2%

8.7%

EBITDA

53,354

$     

37,912

$     

25,728

$     

% of Revenue

9.6%

7.0%

9.1%

Revenue Mix

Products

56%

36%

26%

Services

44%

64%

74%

EBITDA is a non-GAAP measure; see following page for reconciliation to net income.

41

Appendix

Reconciliation of EBITDA to net income

Actual

Actual

Six Months

ended

2008

2009

6/30/10

EBITDA

53,354

$     

37,912

$     

25,728

$     

Less:

  Income tax provision

(3,151)

(5,282)

(1,778)

  Interest expense

(11,667)

(9,667)

(3,276)

  Depreciation and amortization

(3,792)

(4,151)

(2,052)

  Reorganization items

(23,574)

(1,030)

-

Add:

  Income from discontinuted operations

23,668

10,105

3,164

Net Income

34,838

$     

27,877

$     

21,786

$