AETI Announces 395% Increase In First Quarter Net Income

HOUSTON, May 7, 2013 (GLOBE NEWSWIRE) -- American Electric Technologies, Inc. (Nasdaq:AETI) a leading supplier of power delivery solutions for the global energy industry, today announced its 2013 first quarter results.

For the quarter ended March 31, 2013, net income attributable to common stockholders increased 395% to $1.7 million or $0.18 per diluted share when compared to the $0.3 million, or $0.04 per diluted share, reported in the first quarter of 2012. Sequentially, net income attributable to common shareholders increased 238% when compared to $0.5 million, or $0.06 per diluted share, reported in the fourth quarter of 2012.

For the 1 st quarter 2013 AETI reported consolidated revenue of $14.4 million, flat when compared to the first quarter of 2012 and down $0.6 million when compared to the fourth quarter of 2012.

Operating income from domestic operations for the quarter ended March 31, 2013 grew to $0.6 million from a loss of ($0.2) million in the first quarter of 2012 and grew 84% when compared with the $0.3 million in the fourth quarter of 2012.  

"I am very pleased that our strategy to focus on turnkey power delivery products and E&I construction service projects for the global oil & gas industry has resulted in a significant improvement in our financial performance, more than tripling our EBITDA compared to Q1 2012," said Charles Dauber, AETI's President and Chief Executive Officer. "Our marketing push in the growing natural gas-related infrastructure and deepwater markets enabled us to achieve a backlog of $28.4 million, one of our strongest quarters ever," Dauber said.

AETI's joint venture companies reported aggregate revenues of $39.7 million for the quarter of which the Company reports only its share of the net equity income.   AETI's equity in the income of its foreign joint ventures, net of management expenses, was $1.4 million for the quarter ended March 31, 2013, compared to $0.7 million for the quarter ended March 31, 2012 and compared to the $0.4 million for the fourth quarter of 2012. Dauber added, "Our Chinese and Brazilian joint ventures completed several large projects that significantly contributed to our improved financial results."

As of March 31, 2013, the Company reported $5.2 million of cash, $0.5 million of long-term debt and a backlog of $28.4 million. 

Conference Call

AETI will conduct a conference call at 4:00 pm EDT on Tuesday, May 7th, 2013, to discuss the results with analysts, investors and other interested parties. Individuals who wish to participate in the conference call should dial 1 888-542-1137, pass code 952958, in the United States or 1 719-457-2693, pass code 952958, from outside the United States.

American Electric Technologies, Inc. (Nasdaq:AETI) is a leading provider of power delivery solutions to the global energy industry. AETI offers M&I Electric power distribution and control products, electrical services, and E&I Construction services, as well as American Access Technologies zone enclosures, and Omega Metals custom fabrication services. South Coast Electric Systems L.L.C., a subsidiary, services Gulf Coast marine and vessel customers.

AETI is headquartered in Houston and has global sales, support and manufacturing operations in Beaumont, Texas; Keystone Heights, Florida; and Bay St. Louis, Mississippi. In addition, AETI has minority interests in three joint ventures, which have facilities located in Xian, China; Singapore; and Macae, Brazil. AETI's SEC filings, news and product/service information are available at www.aeti.com.

Forward Looking Statements

This press release contains forward-looking statements, as defined in Section 27A of the Securities Exchange Act of 1934, concerning anticipated future demand for our products, international expansion, and other future plans and objectives. While the Company believes that such forward-looking statements are based on reasonable assumptions, there can be no assurance that such future revenues, profits, plans and objectives will be achieved on the schedule or in the amounts indicated. Investors are cautioned that these forward-looking statements are not guarantees of future performance. Actual events or results may differ from the Company's expectations, and are subject to various risks and uncertainties, including those listed in Item 1A of the Form 10-K filed with the Securities and Exchange Commission on March 28, 2013. The Company assumes no obligation to publicly update or revise its forward-looking statements even if experience or future events make it clear that any of the projected results expressed or implied herein will not be realized.
American Electric Technologies, Inc. and Subsidiaries 
Business Segments (in thousands and percentages are calculated on segment sales and total sales) Unaudited
             
  Three Months Ended 
  March 31,   March 31,   December 31,  
  2013   2012   2012  
Revenue:            
Technical Products and Services   $ 10,480    $ 9,823    $ 11,600  
Electrical and Instrumentation Construction   2,528    2,992    2,094  
American Access Technologies  1,422    1,617    1,342  
   $ 14,430    $ 14,432    $ 15,036  
             
Gross profit:            
Technical Products and Services   $ 1,857 18%  $ 1,369 14%  $ 2,186 19%
Electrical and Instrumentation Construction   908 36%  202 7%  (80) -4%
American Access Technologies  215 15%  201 12%  384 29%
   $ 2,980 21%  $ 1,772 12%  $ 2,490 17%
             
Income (loss) from domestic operations and net equity income from foreign joint ventures' operations:             
Technical Products and Services   $ 1,554 15%  $ 1,100 11%  $ 2,074 18%
Electrical and Instrumentation Construction   908 36%  202 7%  (80) -4%
American Access Technologies  (75) -5%  (187) -12%  45 3%
Corporate and other unallocated expenses   (1,785)    (1,314)    (1,712)  
Income (loss) from domestic operations  602 4%  (199) -1%  327 2%
Equity income from BOMAY  1,001    698    184  
Equity income (loss) from MIEFE  20    10    (3)  
Equity income from AAG  437    63    336  
Foreign operations expenses  (51)    (100)    (97)  
Net equity income from foreign joint ventures' operations  1,407    671    420  
Income (loss) from domestic operations and net equity income from foreign joint ventures' operations  2,009 14%  472 3%  747 5%
Interest expense and other, net  (16)    (49)    (32)  
Total other income (expense)  (16)    (49)    (32)  
Income (loss) before income taxes  1,993    423    715  
Provision for income taxes  255    89    141  
Net income (loss) before redeemable preferred stock  1,738    334    574  
Dividends on redeemable preferred stock  (85)    --     (85)  
Net income (loss) attributable to common stockholders  $ 1,653 11%  $ 334 2%  $ 489 3%
             
Earnings (loss) per common share:            
Basic  $ 0.21    $ 0.04    $ 0.06  
Diluted  $ 0.18    $ 0.04    $ 0.06  
             
American Electric Technologies, Inc. and Subsidiaries 
Condensed Consolidated Balance Sheets 
(in thousands, except share and per share data)
  March 31, 2013 December 31, 2012
  (Unaudited)  
Assets    
Current assets:    
Cash and cash equivalents  $ 5,203  $ 4,477
Accounts receivable-trade, net of allowance of $398 and $225 at March 31, 2013 and December 31, 2012, respectively  11,512  9,731
Inventories, net  5,195  5,616
Costs and estimated earnings in excess of billings on uncompleted contracts  2,575  2,205
Prepaid expenses and other current assets  327  318
Total current assets  24,812  22,347
Property, plant and equipment, net  5,045  4,922
Investments in foreign joint ventures  12,913  11,408
Other assets  264  297
Total assets  $ 43,034  $ 38,974
     
Liabilities and Stockholders' Equity    
Current liabilities:    
Accounts payable  $ 5,196  $ 4,438
Accrued payroll and benefits  1,190  1,519
Other accrued expenses  358  522
Billings in excess of costs and estimated earnings on uncompleted contracts  5,338  3,576
Short-term notes payable  31  54
Total current liabilities  12,113  10,109
Notes payable  500  500
Deferred income taxes  3,329  3,058
Deferred compensation  156  122
Total liabilities  16,098  13,789
Convertible preferred stock    
Redeemable convertible preferred stock, series A, net of discount of $796 and $806 at March 31, 2013 and December 31,2012, respectively; $.001 par value, shares issued and outstanding 1,000,000 March 31, 2013, and December 31,2012  4,204  4,194
     
     
Common stockholders' equity:    
Common stock; $0.001 par value, 50,000,000 shares authorized, 7,960,925 and 7,919,032 shares issued and outstanding at March 31, 2013 and December 31, 2012, respectively  8  8
Additional paid-in capital  9,800  9,597
Treasury stock; at cost (49,863 shares at March 31, 2013 and 20,222 shares at December 31, 2012).  (238)  (92)
Accumulated other comprehensive income  931  900
Retained earnings; including accumulated statutory reserves in equity method investments of $1,857 and $1,620 at March 31, 2013 and December 31, 2012, respectively  12,231  10,578
Total common stockholders' equity  22,732  20,991
Total liabilities, preferred stock and stockholders' equity  $ 43,034  $ 38,974
     
American Electric Technologies, Inc. and Subsidiaries 
Non-GAAP Financial Measures and Reconciliations
Computation of Earnings , Including Net Equity Income from Foreign Joint Ventures, Before Interest, 
Dividends, Taxes, Depreciation and Amortization ("EBITDA")
Unaudited
(In thousands)
       
     
  Three months ended
  March 31, December 31, March 31,
  2013 2012 2012
Net Income (loss) attributable to common stockholders  $ 1,653  $ 489  $ 334
Add:      
Dividends on redeemable preferred stock  85  85  -- 
Depreciation and amortization  186  195  220
Interest expense and other, net  16  32  49
Provision for income taxes  255  141  89
       
EBITDA   $ 2,195  $ 942  $ 692
       
(1) The Company is disclosing EBITDA, which is a non-GAAP measure, because it is used by management and provided to investors to provide comparability of underlying operational results. For more discussion of the use and limitations of EBITDA, see the 2012 10-K which was filed on March 28, 2013.
       
CONTACT: Investor Contacts:         American Electric Technologies, Inc.         Andrew L. Puhala         713-644-8182         investorrelations@aeti.com

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