TPI Composites, Inc. Announces Third Quarter 2016 Earnings Results

SCOTTSDALE, Ariz., Nov. 09, 2016 (GLOBE NEWSWIRE) -- TPI Composites, Inc. (Nasdaq:TPIC), the largest U.S.-based independent manufacturer of composite wind blades, today reported financial results for the quarter ended September 30, 2016.


For the quarter ended September 30, 2016:
  • Net sales increased 23.1% to $198.9 million
  • Total billings increased 28.0% to $196.1 million
  • Net income attributable to common shareholders increased to $2.2 million or $0.08 per diluted share and net income on a pro forma basis was $2.8 million or $0.08 per diluted share
  • EBITDA increased to $11.3 million from $6.3 million in the comparable period in 2015, with an EBITDA margin of 5.7% in the 2016 period compared to 3.9% in 2015 
  • Adjusted EBITDA increased to $19.6 million from $7.6 million in the comparable period in 2015, with an adjusted EBITDA margin of 9.9% in the 2016 period compared to 4.7% in 2015
KPIs   Q3'16 Q3'15
  Sets¹ 581 433
  Estimated megawatts² 1,321 987
  Dedicated manufacturing lines³ 38 29
  Manufacturing lines installed4 32 29
  Manufacturing lines in startup5 2 7
  Manufacturing lines in transition6   - 10

  1. Number of wind blade sets (which consist of three wind blades) invoiced worldwide in the period.
  2. Estimated megawatts of energy capacity to be generated by wind blade sets invoiced in the period.
  3. Number of manufacturing lines dedicated to our customers under long-term supply agreements.
  4. Number of manufacturing lines installed and either in operation, startup or transition.
  5. Number of manufacturing lines in a startup phase during the pre-production and production ramp-up period.
  6. Number of manufacturing lines that were being transitioned to a new wind blade model during the period.

"Our strong operational and financial performance in the third quarter of 2016 underscores our commitment to grow, expand margins and continue to drive down the levelized cost of energy. Our results were driven by increased production across three of our geographic segments as we reported year-over-year increases in net sales, total billings, EBITDA and adjusted EBITDA," said Steven Lockard, TPI Composites' President and Chief Executive Officer. "We delivered margin expansion due to improved efficiency and plant utilization with 30 manufacturing lines operating at or near 100% capacity, no manufacturing lines in transition and two lines entering the startup phase late during the quarter. In October, we extended two supply agreements with General Electric International ("GE") in Newton, Iowa and Juarez, Mexico through 2020. We also entered into a new long-term agreement with GE for the supply of wind blades for our third manufacturing facility under construction in Juarez, Mexico through 2020, expecting to begin production in the first quarter of 2017. Furthermore, today we announced that we have signed a long-term supply agreement with Nordex SE for two additional molds in our new Turkey facility. With the extensions and new long-term agreements, as of today we now have over $4.2 billion in contract value across 44 molds through 2023, this is up from $3.1 billion across 38 molds through 2021 at the end of the second quarter.  We expect to continue to capitalize on the strong wind industry growth and outsourcing trends from most of the industries OEMs and we will continue to execute on our strategy for global growth, customer diversification, and profitability under new and existing long-term supply agreements with the industry leading OEMs in the wind energy market. Our global pipeline of demand is strong enough to deliver 25% top line annual growth for the next few years."

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