IRVING, Texas, May 2, 2014 (GLOBE NEWSWIRE) -- Global Power Equipment Group Inc. (Nasdaq:GLPW) ("Global Power" or "Company") today reported its financial results for the first quarter 2014.
Luis Manuel Ramírez, President and CEO of Global Power, commented, "We delivered a strong quarter and are off to a solid start for achieving our 2014 operational and financial goals. Our strategy to invest in the natural gas sector is working and our commercial efforts are yielding results. We have expanded our capabilities to more fully participate in increasing infrastructure investments. In addition, our business realignment, energized leadership and focus on providing value-added solutions are driving orders."
He continued, "Of note, our efforts at improving productivity and creating a portfolio of higher margin products and services resulted in adjusted EBITDA of $3.7 million in our historically weakest quarter. We see this as a solid indicator for the rest of the year."FIRST QUARTER 2014 HIGHLIGHTS
- Gross margin expanded to 17.6% compared with 13.7% on 10% lower revenue.
- Revenue was $104.9 million, coming off strong deliveries in the fourth quarter.
- Product Solutions delivered $38.9 million of revenue driven by investments in natural gas infrastructure, power generation, distributed power supply and the oil and gas space creating demand. Electrical Solutions offset reduced Auxiliary Products revenue which represented $23.6 million in sales.
- Energy Services' revenue of $8.9 million included the addition of Hetsco Inc. ("Hetsco"), which diversified the Company's offerings to the industrial gas processing, chemical/petrochemical and oil and gas industries. Hetsco, which was acquired in April 2013, added $3.6 million of revenue in the quarter.
- Nuclear Services had revenue of $57.1 million and included the completion of one outage contract and one in process that was completed in April 2014.
- Earnings Before Interest, Taxes, Depreciation and Amortization ("adjusted EBITDA") was $3.7 million (refer to adjusted EBITDA Reconciliation table on page 7 for important disclosures regarding the use of non-GAAP measures). Operating income was $0.6 million.
- Income after tax was essentially breakeven.
- Product Solutions' orders were $49.8 million and backlog was a record $187.6 million.