EXHIBIT 99.1
[GLOBAL POWER
EQUIPMENT GROUP
LOGO]
Global Power Equipment Group Inc.
Posts $.39 EPS for Fourth Quarter
Revenues for 2001 Rise by 74% to $723.5 Million
2001 EBITDA Totals $94.4 Million
TULSA, Oklahoma, February 25, 2002 - Global Power Equipment Group Inc. (NYSE:
GEG), a leading design, engineering and fabrication firm providing a broad array
of equipment and services to diversified global companies engaged in the power
and process industries, today reported financial results for the fourth quarter
and twelve months ended December 29, 2001.
Financial Results
Revenues for the fourth quarter of 2001 totaled $215.1 million, an increase of
$102.7 million from last year's comparable period. Revenues from the company's
heat recovery equipment segment increased 111 percent over last year's fourth
quarter and comprised 62 percent of total fourth quarter revenues. Revenues for
the company's auxiliary power equipment segment rose 66 percent over the fourth
quarter of last year. Requests by customers to accelerate delivery schedules
gave rise to the surge in fourth quarter revenues.
Gross profit for the fourth quarter increased to $42.6 million from $18.8
million in the same period last year, an increase of nearly 127 percent. The
company established a record gross profit margin of 19.8 percent for the fourth
quarter compared to the year ago margin of 16.8 percent. Repositioning work to
lower-cost manufacturing locations combined with better operating leverage at
record sales levels contributed to the improved gross profit margins.
Fourth quarter net income of $17.9 million produced diluted earnings per share
for the fourth quarter of $.39 per share on 45.7 million shares outstanding.
"Our customers pressed us to accelerate projects and our employees responded
well during the final quarter of 2001," stated Larry Edwards, Global Power
Equipment Group's president and chief executive officer. "While the dynamics of
the power generation markets within the U.S. have changed markedly over the past
several weeks, our business outlook remains promising. Our unparalleled
engineering expertise, in tandem with a unique low-cost global manufacturing
model, provides a strong competitive advantage that enhances our sales prospects
in any market environment."
- more -
Global Power Equipment Group Inc.
Fourth Quarter 2001 Earnings - Page 2
Revenues for the twelve-month period ended December 29, 2001 grew 74 percent to
$723.5 million over the $416.6 million for fiscal year 2000. Full year revenues
for the company's heat recovery equipment segment increased 71 percent over the
same period last year and comprised 61 percent of total revenues. Revenues for
the company's auxiliary power equipment segment rose 78 percent during fiscal
year 2001 over the prior year and represented 39 percent of total revenues for
the period.
For the fiscal year ended December 29, 2001, the Company posted pro forma net
income of $49.3 million and pro forma diluted earnings per share for the period
of $1.05 per share on an average of 46.9 million shares. Pro forma figures
reflect adjustments related to one-time non-recurring charges and assume IPO
occurs at the beginning of 2001. Preferred dividends were also added to pro
forma earnings.
The company posted EBITDA (earnings before interest, taxes, depreciation and
amortization) of $31.8 million for the fourth quarter, up nearly 179 percent
over the adjusted EBITDA of $11.4 million for the same period in 2000. Adjusted
EBITDA for fiscal 2001 totaled $94.4 million, an increase of 105 percent over
fiscal 2000 adjusted figure of $46.1 million. Adjusted figures reflect the
elimination of recapitalization, IPO-related and extraordinary charges.
At December 29, 2001, the Company's firm backlog totaled $557 million compared
to $689 million at the end of September 2001 and $465 million at the end of
December 2000. Commenting on the backlog, Mr. Edwards noted, "Although at a
year-end record level, our fourth quarter bookings reflected the postponements
announced by a number of power generation developers late in 2001. As those
development timetables have been pushed out, the change in our backlog simply
reflected the effect of customers deferring the placement of new orders while
financing issues are resolved. During the fourth quarter, there were no
significant cancellations from our firm order backlog."
Earnings Estimate
Based upon information management currently has evaluated, in conjunction with
this release, management currently estimates 2002 earnings of between $1.06 to
$1.10 per diluted share and establishes guidance for the first quarter of 2002
of $0.31 per diluted share. These figures are based upon expected revenues of
between $700 to $735 million and approximately $200 million for the full twelve
months and first quarter of 2002, respectively.
Global Power Equipment Group Inc.
6120 S. Yale, Suite 1480, Tulsa, OK 74136 U.S.A.
Phone: 1-918 488-0828 FAX: 1-918 488-8389
Global Power Equipment Group Inc.
Fourth Quarter 2001 Earnings - Page 3
About Global Power
Oklahoma based Global Power Equipment Group Inc. (NYSE: GEG) is a global
designer, engineer and fabricator of equipment for gas turbine power plants. The
company markets its products under the Deltak, Braden, and Consolidated
Fabricators brands and also offers value-added services including engineering,
retrofit and upgrade, and maintenance and repair. Global Power Equipment Group's
equipment is installed in power plants in more than 30 countries on six
continents, giving it what it believes to be one of the largest installed bases
of equipment for gas turbine power plants. Global Power Equipment Group
maintains a web site at www.globalpower.com.
-------------------
Statements contained in this release regarding the Company's or management's
intentions, beliefs, expectations, or predictions for the future, including, but
not limited to, those regarding anticipated operating results, are forward
looking statements within the meaning of U.S. federal securities laws and are
subject to a number of risks, assumptions and uncertainties that could cause the
Company's actual results to differ materially from those projected. 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 Registration Statement on Form S-1
(No. 333-56832), our 10-Q for the quarterly period ending September 29, 2001,
and other reports on file with the U.S. Securities and Exchange Commission.
Company Contact:
- ---------------
Bob Zwerneman
Director of Investor Relations
(918) 274-2398
Global Power Equipment Group Inc.
6120 S. Yale, Suite 1480, Tulsa, OK 74136 U.S.A.
Phone: 1-918 488-0828 FAX: 1-918 488-8389
Global Power Equpment Group Inc.
Fourth Quarter 2001 Earnings - Page 4
GLOBAL POWER EQUIPMENT GROUP INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In Thousands)
Three Months Ended Twelve Months Ended
------------------------------ -----------------------------
December 29, December 30, December 29, December 30,
2001 2000 2001 2000
-------------- ------------ ------------ -------------
Revenues $ 215,142 $ 112,393 $ 723,504 $ 416,591
Cost of sales 172,544 93,553 591,958 345,688
-------------- ------------ ------------ -------------
Gross profit 42,598 18,840 131,546 70,903
Selling and administrative expenses 11,594 7,962 40,333 27,045
Recapitalization charge - - - 38,114
Amortization expense 434 472 1,716 1,250
-------------- ------------ ------------ -------------
Operating income (loss) 30,570 10,406 89,497 4,494
Interest expense, net 1,182 7,228 15,896 12,175
-------------- ------------ ------------ -------------
Income (loss) before income taxes and extraordinary loss 29,388 3,178 73,601 (7,681)
Income tax provision (benefit) 11,461 (128) 22,905 (433)
Income tax benefit from tax status change - - (88,000) -
-------------- ------------ ------------ -------------
Income (loss) before extraordinary loss 17,927 3,306 138,696 (7,248)
Extraordinary loss on debt extinguishment, net of tax - - (18,060) (1,536)
-------------- ------------ ------------ -------------
Net income (loss) 17,927 3,306 120,636 (8,784)
Preferred dividend - (2,041) (2,947) (3,386)
-------------- ------------ ------------ -------------
- -
Net income (loss) available to common stockholders $ 17,927 $ 1,265 $ 117,689 $ (12,170)
============== ============ ============ =============
Basic income (loss) per common share
Weighted average shares outstanding 43,953 31,559 39,275 388,456
Income (loss) before extraordinary loss $ 0.41 $0.04 $ 3.46 $ (0.03)
Extraordinary loss - - (0.46) -
-------------- ------------ ------------ -------------
Net income (loss) available to common stockholders $ 0.41 $ 0.04 $ 3.00 $ (0.03)
============== ============ ============ =============
Diluted income (loss) per common share
Diluted shares outstanding 45,670 31,559 41,011 388,456
Income (loss) before extraordinary loss $ 0.39 $ 0.04 $ 3.31 $ (0.03)
Extraordinary loss - - (0.44) -
-------------- ------------ ------------ -------------
Net income (loss) available to common stockholders $ 0.39 $ 0.04 $ 2.87 $ (0.03)
============== ============ ============ =============
Global Power Equipment Group Inc
Fourth Quarter 2001 Earnings - Page 5
GLOBAL POWER EQUIPMENT GROUP INC.
PRO FORMA EARNINGS AND EBITDA INFORMATION
(In Thousands)
Three Months Ended Twelve Months Ended
------------------------------- ------------------------------
December 29, December 30, December 29, December 30,
2001 2000 2001 2000
-------------- -------------- ------------- -------------
Net income (loss) available to common stockholders $ 17,927 $ 1,265 $ 117,689 $ (12,170)
Add (Less):
Preferred dividend - 2,041 2,947 3,386
Extraordinary loss on debt extinguishment, net of tax - - 18,060 1,536
Income tax benefit from tax status change - - (88,000) -
Reduced tax provision due to non-taxable status prior to IPO - - (8,607) -
Pro forma effect of debt restructuring - - 6,394 -
IPO related compensation charge and other - - 804 -
Recapitalization charge - - - 38,114
-------------- -------------- ------------- -------------
Pro forma net income available to common stockholders $ 17,927 $ 3,306 $ 49,287 $ 30,866
============== ============= ============= =============
Pro forma diluted income per common share
Diluted shares outstanding 45,670 31,559 46,874 388,456
Net income (loss) available to common stockholders $ 0.39 $ 0.10 $ 1.05 $ 0.08
============== ============= ============= =============
EBITDA $ 31,828 $ 11,363 $ 76,301 $ 6,428
Add:
Extraordinary loss on debt extinguishment, net of tax - - 18,060 1,536
Recapitalization charge - - - 38,114
Adjusted EBITDA $ 31,828 $ 11,363 $ 94,361 $ 46,078
============== ============= ============= =============
Note: Quarterly reported figures may not add due to rounding for annual
earnings per share
Global Power Equipment Inc.
Fourth Quarter 2001 Earnings - Page 6
GLOBAL POWER EQUIPMENT GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
December 29, December 30,
2001 2000
---------------- --------------
ASSETS
Current Assets:
Cash and cash equivalents $ 2,435 $ 26,308
Accounts receivable, net of allowance of $2,385 and $1,841 123,182 67,798
Inventories 5,973 4,769
Costs and estimated earnings in excess of billings 131,355 70,229
Deferred tax assets 19,068 -
Other current assets 1,920 1,833
--------------- ----------------
Total current assets 283,933 170,937
Property, plant and equipment, net 27,810 19,433
Deferred tax assets 71,454 -
Goodwill, net 45,000 45,879
Other assets 2,434 9,444
---------------- ----------------
Total assets $ 430,631 $ 245,693
================ ================
LIABILITIES AND EQUITY (DEFICIT)
Current liabilities:
Current maturities of long-term debt $ 15,505 $ 3,963
Accounts payable 56,005 38,055
Accrued compensation and employee benefits 11,838 8,282
Accrued warranty 16,489 9,720
Billings in excess of costs and estimated earnings 145,522 119,110
Other current liabilities 17,968 9,002
---------------- ----------------
Total current liabilities 263,327 188,132
Long-term debt, net of current maturities 90,124 215,131
Commitments and contingencies
Members' equity (deficit) - (157,570)
Stockholders' equity
Common stock 440 -
Additional paid-in capital (28,329) -
Accumulated comprehensive loss (164) -
Retained earnings 105,233 -
---------------- ----------------
Total stockholders' equity 77,180 -
---------------- ----------------
Total Liabilities and Equity $ 430,631 $ 245,693
================ ================