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Achieved record backlog of $402.5 million driven by Services Division contract wins
Revenue in the second quarter was $94.7 million, down from $138.3 million due to shipment delays and reduced maintenance services
Second quarter gross margin expanded to 17.9% compared with 15.8% on higher "as sold" margins and favorable project execution
Strong balance sheet: $90.5 million in cash and no debt
Expects full year 2012 consolidated revenue to be up 8% to 12% over prior year as acquisition offsets lower growth potential in 2012 for Services Division
IRVING, Texas, Aug. 9, 2012 (GLOBE NEWSWIRE) -- Global Power Equipment Group Inc. (Nasdaq:GLPW) ("Global Power" or "Company") today reported its financial results for the second quarter ended June 30, 2012.
Total revenue in the second quarter of 2012 was $94.7 million, down 31.5% from total revenue of $138.3 million in the prior year's second quarter. Lower revenue was the result of $16.9 million in delayed customer shipments by the Products Division, while the Services Division had fewer refueling outages combined with customers deferring maintenance and constricting capital spending in response to lower demand and a mild 2011 winter.
Net income was $0.9 million, or $0.05 per diluted share, in the second quarter of 2012 compared with $49.6 million, or $2.92 per diluted share, in the same prior-year period. Second quarter 2011 net income included a $40.1 million, or $2.36 per diluted share, tax benefit. The decline in net income was primarily driven by lower volume and higher selling and administrative expenses (S&A) including one-time items which were partially offset by gross margin expansion from both operating divisions.
"Our financial results this quarter were weaker than expected due to customer-related delays for receipt of gas turbine auxiliary equipment and reduced spending on elective maintenance projects. We see these as short-term issues and are focused on delivering solid second half 2012 results. Despite the uncertainty surrounding the global economy and slowing electrical power demand in the U.S., we believe fundamentally the markets we serve create measurable opportunity for us in the long-term. We achieved record backlog in the quarter, and believe this is a testament to our competitive advantages and growth potential," said Luis Manuel Ramírez, President and Chief Executive Officer of Global Power.