Exhibit 99.1
[LOGO OF GLOBAL POWER]
Global Power Equipment Group Inc.
Posts $0.33 EPS for First Quarter
Revenues Rise 30% to $204 Million
EBITDA Totals $27.2 Million
TULSA, Oklahoma, April 29, 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 first quarter ended
March 30, 2002.
Financial Results
Revenues for the first quarter of 2002 totaled $204 million, an increase of $47
million from last year's comparable period. Revenues from the company's heat
recovery equipment segment increased 29 percent over last year's first quarter
and comprised 59 percent of total first quarter revenues. Revenues for the
company's auxiliary power equipment segment rose 32 percent over the first
quarter of last year.
Gross profit for the first quarter increased to $36.7 million from $26.4 million
in the same period last year, an increase of 39 percent. The company's gross
profit margin was 18.0 percent compared to the year ago margin of 16.9 percent.
The Company's on-going effort to shift manufacturing to lower-cost locations
continues to benefit profit margins.
First quarter net income of $15.2 million produced diluted earnings per share of
$0.33 per share on 45.6 million shares outstanding. This compares to first
quarter 2001 earnings of $10.2 million or $0.24 per share on 34.3 million shares
outstanding.
The company generated EBITDA (earnings before interest, taxes, depreciation and
amortization) of $27.2 million for the first quarter, up 46 percent over EBITDA
of $18.6 million for the same period in 2001.
"Our first quarter results were in-line with our previous guidance and our firm
backlog continues to provide excellent earnings visibility," stated Larry
Edwards, Global Power Equipment Group's president and chief executive officer.
"While the domestic market activity has subsided from a very strong level, as
expected, we are beginning to see increased activity in international markets.
We firmly believe our greatest sales opportunities over the next several years
will be outside of the United States where our global manufacturing model places
us in a strong competitive position."
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Global Power Equipment Group Inc.
First Quarter 2002 Earnings - Page 2
Approximately 30 percent of the Company's bookings into firm backlog during the
first quarter originated from projects outside the United States compared to
approximately nine percent during the same period last year.
At the end of the first quarter, the Company's firm backlog totaled $487 million
compared to $632 million at the end of March 2001 and $557 million at the end of
December 2001.
Earnings Estimate
Based upon information management currently has evaluated, in conjunction with
this release, management continues to estimate 2002 earnings of between $1.06 to
$1.10 per diluted share, unchanged from the previous guidance provided.
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 Form 10-K for the period ending
December 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 Equipment Group Inc.
First Quarter 2002 Earnings - Page 3
GLOBAL POWER EQUIPMENT GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three Months Ended
-----------------------------
March 30, March 31,
2002 2001
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Revenues $ 203,527 $ 156,170
Cost of sales 166,799 129,756
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Gross profit 36,728 26,414
Selling and administrative expenses 10,411 8,533
Amortization expense 44 397
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Operating income 26,273 17,484
Interest expense, net 1,283 6,392
----------- ----------
Income before income taxes 24,990 11,092
Income tax provision 9,746 931
----------- ----------
Net income 15,244 10,161
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Preferred dividend - (2,040)
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Net income available to common
stockholders $ 15,244 $ 8,121
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Basic income per common share
Weighted average shares outstanding 43,953 31,559
Net income available to common
stockholders $ 0.35 $ 0.26
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Diluted income per common share
Diluted shares outstanding 45,643 34,343
Net income available to common
stockholders $ 0.33 $ 0.24
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Global Power Equipment Group Inc.
First Quarter 2002 Earnings - Page 4
GLOBAL POWER EQUIPMENT GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 30, December 29,
2002 2001
----------- ----------
ASSETS
Current Assets:
Cash and cash equivalents $ 5,275 $ 2,435
Accounts receivable, net of allowance of $1,840 and $2,385 150,715 123,182
Inventories 6,492 5,973
Costs and estimated earnings in excess of billings 89,290 131,355
Deferred tax assets 20,820 19,068
Other current assets 2,010 1,920
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Total current assets 274,602 283,933
Property, plant and equipment, net 27,752 27,810
Deferred tax assets 70,137 71,454
Goodwill, net 42,256 42,256
Other assets 4,922 5,178
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Total assets $ 419,669 $ 430,631
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LIABILITIES AND EQUITY (DEFICIT)
Current liabilities:
Current maturities of long-term debt $ 17,879 $ 15,505
Accounts payable 38,565 56,005
Accrued compensation and employee benefits 7,126 11,838
Accrued warranty 17,895 16,489
Billings in excess of costs and estimated earnings 127,521 145,522
Other current liabilities 18,469 17,968
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Total current liabilities 227,455 263,327
Long-term debt, net of current maturities 99,683 90,124
Commitments and contingencies
Stockholders' equity
Common stock 440 440
Paid-in capital deficit (28,329) (28,329)
Accumulated comprehensive income (loss) 27 (80)
Retained earnings 120,393 105,149
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Total stockholders' equity 92,531 77,180
----------- ----------
Total liabilities and equity $ 419,669 $ 430,631
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