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American Superconductor
Corporation has added a news release to its Investor Relations website.
Title:
AMSC Reports First Quarter Financial Results
Date: 8/5/2008 7:30:00
AM
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-- First-Quarter Revenues Doubled Year Over Year to Record $39.8 Million -- Positive Cash Flow Generated from Operations -- Total Backlog Increased to $634 Million as of June 30, 2008 -- Fiscal 2008 Revenue and EBITDAS Forecasts Increased
DEVENS,
Mass.--(BUSINESS WIRE)--Aug. 5, 2008--American
Superconductor Corporation (NASDAQ: AMSC), a leading energy
technologies company, today reported financial results for the first
quarter of fiscal year 2008 ended June 30, 2008.
Revenues
for the first quarter of fiscal 2008 were a record $39.8
million, a 101 percent increase from $19.8 million for the first
quarter of fiscal 2007. Gross margin for the first quarter of fiscal
2008 was 29.2 percent, compared to 18.1 percent for the first
quarter
of fiscal 2007.
The company
recorded a net loss for the first quarter of fiscal
2008 of $6.1 million, or $0.15 per share. This compares to a net
loss
for the first quarter of fiscal 2007 of $9.7 million, or $0.27 per
share. Net loss for the first quarter of fiscal 2008 includes a
non-cash charge of $2.4 million, or $0.06 per share, for a
mark-to-market adjustment on an outstanding warrant driven by the
increase in the company's stock price during the quarter. This
compares with a $1.0 million, or $0.03 per share, mark-to-market
charge in the first quarter of fiscal 2007. In addition to the
mark-to-market adjustments on an outstanding warrant, net loss in
each
period includes non-cash, pre-tax charges for amortization of
acquisition-related intangibles and stock-based compensation
expense.
Such charges totaled $5.2 million for the first quarter of fiscal
2008, compared to $3.2 million for the first quarter of fiscal 2007.
Earnings
before interest, taxes, other income and expense,
depreciation, amortization and stock-based compensation (EBITDAS)
was
a positive $1.7 million for the first quarter of fiscal 2008. EBITDAS
for the first quarter of fiscal 2007 was a negative $5.3 million.
Please refer to the financial schedules attached to this press
release
for reconciliation of EBITDAS to GAAP net loss.
AMSC
generated a record $3.2 million in cash from operations for
the first quarter of fiscal 2008. Cash, cash equivalents, marketable
securities and restricted cash at June 30, 2008 were $131.5 million,
an increase of $12.1 million from $119.4 million at March 31, 2008.
The company
reported backlog as of June 30, 2008 of approximately
$634 million compared with $199 million as of March 31, 2008 and $73
million as of June 30, 2007.
"We
executed to our expectations in the first quarter, delivering
continued sequential revenue growth, generating record bookings and
achieving other key financial metrics, including positive EBITDAS
and
positive cash flow from operations," said Greg Yurek, AMSC's
founder
and chief executive officer. "Operationally, the quarter was
marked by
two significant highlights. First, we completed a multi-year project
by commissioning the world's first superconductor power transmission
cable system in a commercial power grid. Operating in the heart of
Long Island Power Authority's grid since April, this system has
sparked a new wave of interest in superconductor cables among
electric
utilities worldwide. Second, we received a $450 million order from
China's Sinovel Wind for our wind turbine core electrical
components,
providing us with a significant platform for continued growth
through
calendar year 2011."
Financial
Forecast
"AMSC's performance in the first quarter from a revenue and
bookings perspective has positioned us for another strong year of
growth in fiscal 2008," said David Henry, senior vice president
and
chief financial officer. "We are increasing our revenue
guidance for
the fiscal year by $10 million to a range of $175 million to $185
million. The increase in our revenue forecast will drive higher
EBITDAS. We now expect EBITDAS for fiscal 2008 to be in the range of
$7 million to $10 million, up from our previous guidance of $3
million
to $7 million. Because of the significant increase in our stock
valuation during the first quarter and the resulting increase in
non-cash charges associated with stock compensation, the
mark-to-market adjustment on our warrant and other non-operating
factors, we are increasing our net loss guidance to a range of $13
million to $15 million, or $0.30 to $0.35 per share, compared with
our
previous range of $9 million to $12 million, or $0.21 to $0.28 per
share."
Conference
Call Reminder
In
conjunction with this announcement, AMSC management will
participate in a conference call with investors beginning at 10:00
a.m. ET today to discuss the company's results and its business
outlook. Those who wish to listen to the live conference call
webcast
should visit the "Investors" section of the company's
website at
www.amsc.com/investors. The live call also can be accessed by
dialing
913-905-3164 and using conference ID 3774017. A telephonic playback
of
the call will be available from 1:00 p.m. ET on August 5, 2008
through
1:00 p.m. ET on August 12, 2008. Please call (719) 457-0820 and
refer
to conference ID 3774017 to access the playback.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands) Three months ended June 30, --------------------------- 2008 2007 ------------- ------------ Revenues: Power Systems $ 35,930 $ 14,369 Superconductors 3,887 5,400 ------------- ------------ Total revenues 39,817 19,769 Cost of revenues 28,196 16,187 ------------- ------------ Gross profit 11,621 3,582 Operating expenses: Research and development 4,913 4,214 Selling, general and administrative 8,893 6,118 Amortization of acquisition related intangibles 503 1,162 Restructuring and impairments - 818 ------------- ------------ Total operating expenses 14,309 12,312 ------------- ------------ Operating loss (2,688) (8,730) Interest income 775 346 Other income (expense), net (2,471) (1,014) ------------- ------------ Loss before income tax (4,384) (9,398) Income tax expense 1,719 255 ------------- ------------ Net loss $ (6,103) $ (9,653) ============= ============ Net loss per common share Basic and Diluted $ (0.15) $ (0.27) ============= ============ Weighted average number of common shares outstanding Basic and Diluted 41,686 35,268 ============= ============ UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) June 30, March 31, 2008 2008 ---------- ---------- ASSETS Current assets: Cash and cash equivalents $ 69,570 $ 67,834 Marketable securities 48,301 38,398 Accounts receivable, net 33,042 37,108 Inventory 12,033 10,907 Restricted cash 11,754 12,312 Prepaid expenses and other current assets 6,411 4,467 Deferred tax assets, net 896 2,293 ---------- ---------- Total current assets 182,007 173,319 Property, plant and equipment, net 54,323 54,308 Goodwill 23,011 18,530 Intangibles, net 11,184 11,583 Long-term restricted cash 1,856 860 Other assets 2,727 2,634 ---------- ---------- Total assets $ 275,108 $ 261,234 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses 39,307 38,356 Deferred revenue 11,025 10,629 ---------- ---------- Total current liabilities 50,332 48,985 Non-current liabilities Deferred revenue 3,378 2,043 Deferred tax liabilities, net 1,147 1,244 Other non-current liabilities 64 510 ---------- ---------- Total liabilities 54,921 52,782 Stockholders' equity: Common stock 430 415 Additional paid-in capital 632,918 615,017 Accumulated other comprehensive income 3,444 3,522 Accumulated deficit (416,605) (410,502) ---------- ---------- Total stockholders' equity 220,187 208,452 ---------- ---------- Total liabilities and stockholders' equity $ 275,108 $ 261,234 ========== ========== UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) For the three months ended June 30, ------------------- 2008 2007 -------- -------- Cash flows from operating activities: Net loss $ (6,103) $ (9,653) Adjustments to reconcile net loss to net cash used in operations: Depreciation and amortization 2,124 2,310 Stock-based compensation expense 2,299 1,077 Stock-based compensation expense - non-employee 78 83 Impairment charges on long-lived assets - 607 Inventory write-down charges - 933 Re-valuation of warrant 2,396 986 Deferred income taxes 1,300 85 Other non-cash items 427 8 Changes in operating asset and liability accounts, excluding the effect of acquisitions: Accounts receivable 3,891 (2,694) Inventory (1,126) (179) Prepaid expenses and other current assets (1,944) (352) Accounts payable and accrued expenses (1,890) (4,722) Deferred revenue 1,731 3,247 --------- --------- Net cash provided by (used in) operating activities 3,183 (8,264) Cash flows from investing activities: Purchase of property, plant and equipment, net (1,526) (1,479) Purchase of marketable securities (31,648) (11,977) Proceeds from the maturity of marketable securities 21,602 16,042 Increase in restricted cash (438) (674) Acquisition costs, net of cash acquired in acquisitions - (102) Purchase of intangible assets (375) (329) Change in other assets (30) 17 --------- --------- Net cash provided by (used in) investing activities (12,415) 1,498 Cash flows from financing activities: Proceeds from exercise of employee stock options 10,913 5,971 --------- --------- Net cash provided by financing activities 10,913 5,971 --------- --------- Effect of exchange rate changes on cash and cash equivalents 55 12 --------- --------- Net increase (decrease) in cash and cash equivalents 1,736 (783) Cash and cash equivalents at beginning of period 67,834 15,925 --------- --------- Cash and cash equivalents at end of period $ 69,570 $ 15,142 ========= ========= Supplemental schedule of cash flow information: Issuance of common stock in connection with acquisitions $ - $ 4,349 Noncash issuance of common stock 147 - Noncash contingent consideration in connection with acquisitions 4,481 - Reconciliation of Net Loss to EBITDAS (In thousands) Three months ended June 30, ----------------- 2008 2007 -------- -------- Net Loss $(6,103) $(9,653) Interest income (775) (346) Other income (expense), net 2,471 1,014 Income tax expense 1,719 255 Depreciation and amortization 2,123 2,311 -------- -------- EBITDA (565) (6,419) Stock-based compensation 2,299 1,077 -------- -------- EBITDAS $ 1,734 $(5,342) ======== ======== Reconciliation of Forecast Net Loss to Forecast EBITDAS for Fiscal Year 2008 (In thousands) High Low --------- --------- Net Loss $(13,000) $(15,000) Interest income (4,000) (4,000) Other income (expense), net 4,000 4,000 Income tax expense 4,500 4,000 Depreciation and amortization 8,000 8,000 --------- --------- EBITDA (500) (3,000) Stock-based compensation 10,500 10,000 --------- --------- EBITDAS $ 10,000 $ 7,000 ========= =========
Note: EBITDAS is a
non-GAAP financial measure defined by the
company as net income
before interest, taxes, other income and
expense, depreciation
and amortization, and stock-based compensation.
The company believes
EBITDAS is an important measurement for
management and investors
given the increasing effect that non-cash
charges such as stock
compensation, amortization related to
acquisitions, taxes
associated with AMSC Windtec, and depreciation of
capital equipment will
have on the company's net income (loss). The
company regards EBITDAS
as a useful measure of operating performance
and cash flow to
complement operating income, net income and other
GAAP financial
performance measures. Additionally, management believes
that EBITDAS will
provide meaningful comparisons of past, present and
future operating
results. Generally, a non-GAAP financial measure is a
numerical measure of a
company's performance, financial position or
cash flow that either
excludes or includes amounts that are not
normally excluded or included
in the most directly comparable measure
calculated and presented
in accordance with GAAP. This measure,
however, should be
considered in addition to, and not as a substitute
or superior to,
operating income, cash flows, or other measures of
financial performance
prepared in accordance with GAAP. A
reconciliation of
EBITDAS to GAAP net loss is set forth in the table
above.
About American
Superconductor (NASDAQ: AMSC)
AMSC is a leading energy
technologies company offering an array of
solutions based on two
proprietary technologies: programmable power
electronic converters
and high temperature superconductor (HTS) wires.
The company's products,
services and system-level solutions enable
cleaner, more efficient
and more reliable generation, delivery and use
of electric power. AMSC
is a leader in alternative energy, offering
grid interconnection
solutions as well as licensed wind turbine
designs and electrical
systems. As the world's principal supplier of
HTS wire, the company is
enabling a new generation of compact,
high-power electrical
products, including power cables, grid-level
surge protectors, Secure
Super Grids(TM), motors, generators, and
advanced transportation
and defense systems. AMSC also provides
utility and industrial
customers worldwide with voltage regulation
systems that
dramatically enhance power grid capacity, reliability and
security, as well as
industrial productivity. The company's
technologies are
protected by a broad and deep intellectual property
portfolio consisting of
hundreds of patents and licenses worldwide.
More information is
available at www.amsc.com.
American Superconductor
and design, Revolutionizing the Way the
World Uses Electricity,
AMSC, Powered by AMSC, D-VAR, PQ-IVR,
PowerModule, Secure
Super Grids, Windtec and SuperGEAR are trademarks
or registered trademarks
of American Superconductor Corporation or its
subsidiaries.
Any statements in this
release about future expectations, plans
and prospects for the
company, including our expectations regarding
the future financial
performance of the company and other statements
containing the words
"believes," "anticipates," "plans,"
"expects,"
"will" and
similar expressions, constitute forward-looking statements
within the meaning of
the Private Securities Litigation Reform Act of
1995. There are a number
of important factors that could cause actual
results to differ
materially from those indicated by such
forward-looking
statements. Such factors include: uncertainties
regarding the company's
ability to obtain anticipated funding from
corporate and government
contracts, to successfully develop,
manufacture and market
commercial products, and to secure anticipated
orders; the risk that a
robust market may not develop for the
company's products; the
risk that strategic alliances and other
contracts may be
terminated; the risk that certain technologies
utilized by the company
will infringe intellectual property rights of
others; and the
competition encountered by the company. Reference is
made to these and other
factors discussed in the "Risk Factors"
section of the company's
most recent quarterly or annual report filed
with the Securities and
Exchange Commission. In addition, the
forward-looking statements
included in this press release represent
the company's views as
of the date of this release. While the company
anticipates that
subsequent events and developments may cause the
company's views to
change, the company specifically disclaims any
obligation to update
these forward-looking statements. These
forward-looking
statements should not be relied upon as representing
the company's views as
of any date subsequent to the date this press
release is issued.
CONTACT: American Superconductor Corporation Jason Fredette, 978-842-3177 Director of Investor & Media Relations jfredette@amsc.com SOURCE: American Superconductor Corporation |