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American Superconductor
Corporation has added a news release to its Investor Relations website.
Title: AMSC Reports Fourth Quarter and Full
Year Fiscal 2007 Financial Results
Date: 5/8/2008 7:30:02
AM
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Fourth-Quarter Revenues Increased 101 Percent Year Over Year -- Full Fiscal
2007 Revenues More Than Doubled to $112.4 Million -- Record Gross Margin of
28.5 Percent Achieved for Full Fiscal 2007 -- Total Backlog as of March 31,
2008 Increased to $199 Million -- Fiscal 2008 Revenue Forecast Revised
Upward
DEVENS, Mass., May 08, 2008 (BUSINESS WIRE)
-- American Superconductor Corporation (NASDAQ: AMSC), a leading energy
technologies company, today reported financial results for the fourth
quarter and full fiscal year 2007 ended March 31, 2008.
Revenues for the fourth
quarter of fiscal 2007 were a record $38.4 million, a 101 percent increase
from $19.1 million in revenues for the fourth quarter of fiscal 2006. Gross
margin for the fourth quarter of fiscal 2007 was 33.2 percent, which
compares with 5.7 percent for the fourth quarter of fiscal 2006.
The company's net loss
for the fourth quarter of fiscal 2007 was $1.8 million, or $0.04 per share.
This figure includes $3.6 million in restructuring and impairment charges
related primarily to the previously announced consolidation of AMSC's
operations in Massachusetts, and a gain of $0.9 million primarily resulting
from a mark-to-market adjustment on an outstanding warrant. This compares
to a net loss for the fourth quarter of fiscal 2006 of $11.4 million, or
$0.33 per share. Net loss in each period includes non-cash, pre-tax charges
for amortization of acquisition-related intangibles, stock compensation
expense and mark-to-market adjustments on an outstanding warrant. Such
charges totaled $1.0 million for the fourth quarter of fiscal 2007,
compared to $2.1 million for the fourth quarter of fiscal 2006.
Earnings before
interest, taxes, other income and expense, depreciation, amortization and
stock-based compensation (EBITDAS) was a positive $0.4 million for the
fourth quarter of fiscal 2007. This figure was negatively impacted by the
aforementioned $3.6 million in restructuring and impairment charges. This
compares to an EBITDAS loss of $8.7 million for the fourth quarter of
fiscal 2006. Please refer to the financial schedules attached to this press
release for reconciliation of EBITDAS to GAAP net loss.
Revenues for full year
fiscal 2007 were $112.4 million, an increase of 115 percent from $52.2
million for full year fiscal 2006. Gross margin for full year fiscal 2007
was 28.5 percent, which compares with a negative gross margin of 0.6
percent for full year fiscal 2006. The company's net loss for full year
fiscal 2007 was $25.4 million, or $0.65 per share, which compares to a net
loss for full year fiscal 2006 of $34.7 million, or $1.04 per share. Net
loss for fiscal 2007 includes approximately $12.4 million of non-cash,
pre-tax charges for amortization of acquisition related intangibles, stock
compensation and mark-to-market adjustments on an outstanding warrant,
compared to $4.7 million of such non-cash, pre-tax charges for fiscal 2006.
The company's EBITDAS loss for full year fiscal 2007 was $9.1 million,
which compares with an EBITDAS loss of $28.1 million for the prior fiscal
year.
Cash, cash equivalents,
and marketable securities at March 31, 2008 were $106.2 million, a decrease
of $1.6 million from cash, cash equivalents and marketable securities of
$107.8 million at December 31, 2007. Of the aforementioned decrease, $0.7
million of cash was reclassified as restricted cash. Cash, cash equivalents
and marketable securities decreased by approximately $0.9 million in the
fourth quarter of fiscal 2007 net of amounts reclassified to restricted
cash.
The company reported
backlog as of March 31, 2008 of approximately $199 million compared with $168
million as of December 31, 2007 and $76.8 million as of March 31, 2007.
"The fourth
quarter was a resounding financial success for AMSC," said Greg Yurek,
AMSC's founder and chief executive officer. "We generated record
revenues and gross margins based on the strength of our commercial sales
into the wind power and electric utility markets. In addition, AMSC
achieved positive EBITDAS for the fourth quarter. This capped off a strong
year of growth and operational enhancements at AMSC, including the integration
of two acquisitions, the consolidation of our Massachusetts operations and
the formation of AMSC China. We are confident that fiscal 2008 will be an
even greater success for AMSC."
Financial Forecast
"AMSC entered the
first quarter of fiscal 2008 with significant momentum and visibility,
providing us with confidence that our strong growth rate will continue
through this fiscal year," said David Henry, senior vice president and
chief financial officer. "We anticipate that revenues for fiscal 2008
will increase to a range of $165 million to $175 million. We expect our
bottom line to improve significantly again and anticipate a net loss of $9
million to $12 million, or $0.21 to $0.28 per share, for fiscal 2008. For
fiscal 2008, we expect EBITDAS in the range of $3 million to $7
million."
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) 312-0419 and using conference ID 3463050. A telephonic
playback of the call will be available from 1:00 p.m. ET on May 8, 2008
through 1:00 p.m. ET on May 15, 2008. Please call (719) 457-0820 and refer
to conference ID 3463050 to access the playback.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands) Three months ended Year ended March March 31, 31, ------------------ ------------------- 2008 2007 2008 2007 -------- --------- --------- --------- Revenues: Power Systems $34,333 $ 13,712 $ 96,823 $ 30,850 Superconductors 4,046 5,374 15,573 21,333 -------- --------- --------- --------- Total revenues 38,379 19,086 112,396 52,183 Cost of revenues 25,635 18,006 80,363 52,502 -------- --------- --------- --------- Gross profit 12,744 1,080 32,033 (319) Operating expenses: Research and development 3,689 5,753 15,651 17,453 Selling, general and administrative 7,746 5,476 28,752 17,503 Amortization of acquisition related intangibles 489 590 5,058 590 Restructuring and impairments 3,641 667 7,462 667 -------- --------- --------- --------- Total operating expenses 15,565 12,486 56,923 36,213 -------- --------- --------- --------- Operating loss (2,821) (11,406) (24,890) (36,532) Interest income 1,085 399 3,977 2,179 Other income (expense), net 904 (524) (1,654) (424) -------- --------- --------- --------- Loss before income tax (832) (11,531) (22,567) (34,777) Income tax expense (benefit) 980 (102) 2,880 (102) -------- --------- --------- --------- Net loss $(1,812) $(11,429) $(25,447) $(34,675) ======== ========= ========= ========= Net loss per common share Basic and Diluted $ (0.04) $ (0.33) $ (0.65) $ (1.04) ======== ========= ========= ========= Weighted average number of common shares outstanding Basic and Diluted 41,169 34,394 39,137 33,261 ======== ========= ========= ========= UNAUDITED CONSOLIDATED BALANCE SHEETS (In thousands) March 31, March 31, 2008 2007 ---------- ---------- ASSETS Current assets: Cash and cash equivalents $ 67,834 $ 15,925 Marketable securities 38,398 19,399 Accounts receivable, net 37,108 18,053 Inventory 10,907 6,853 Prepaid expenses and other current assets 16,779 1,505 Deferred tax assets 2,293 514 ---------- ---------- Total current assets 173,319 62,249 Property, plant and equipment, net 54,308 49,928 Goodwill 18,530 5,126 Other intangibles, net 11,584 12,849 Other assets 3,493 2,281 ---------- ---------- Total assets $ 261,234 $ 132,433 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $ 38,356 $ 23,532 Deferred revenue and customer deposits 10,629 3,775 ---------- ---------- Total current liabilities 48,985 27,307 Non-current liabilities: Deferred revenue and customer deposits 2,044 867 Deferred tax liabilities 1,244 2,518 Other non-current liabilities 509 120 ---------- ---------- Total liabilities 52,782 30,812 Stockholders' equity: Common stock 415 350 Additional paid-in capital 615,017 486,181 Accumulated other comprehensive income 3,522 145 Accumulated deficit (410,502) (385,055) ---------- ---------- Total stockholders' equity 208,452 101,621 ---------- ---------- Total liabilities and stockholders' equity $ 261,234 $ 132,433 ========== ========== UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year ended December 31, -------------------- 2008 2007 ---------- --------- Cash flows from operating activities: Net loss $ (25,447) $(34,675) Adjustments to reconcile net loss to net cash used in operations: Depreciation and amortization 10,095 4,750 Stock-based compensation expense 5,665 3,680 Stock-based compensation expense - non-employee 232 292 Impairment charges on long-lived assets 757 144 Inventory write-down charges 933 1,201 Re-valuation of warrant 1,652 408 Change in deferred income taxes (3,424) (119) Other non-cash items 697 391 Changes in operating asset and liability accounts, excluding the effect of acquisition: Accounts receivable (20,330) (6,281) Inventory (4,410) 1,072 Prepaid expenses and other current assets (2,853) 140 Accounts payable and accrued expenses 11,635 3,595 Deferred revenue 6,975 2,641 ---------- --------- Net cash used in operating activities (17,823) (22,761) Cash flows from investing activities: Purchase of property, plant and equipment (8,598) (10,046) Proceeds from the sale of property, plant and equipment 1,360 92 Purchase of marketable securities (174,650) (62,562) Proceeds from the maturity of marketable securities 155,917 73,785 Increase in restricted cash (13,172) -- Acquisition costs, net of cash acquired in acquisitions (102) (387) Purchase of intangible assets (1,264) (862) Change in other assets 49 (29) ---------- --------- Net cash used in investing activities (40,460) (9) Cash flows from financing activities: Proceeds from secondary public offering, net 93,612 -- Proceeds from issuances of common stock, net 14,820 3,524 ---------- --------- Net cash provided by financing activities 108,432 3,524 ---------- --------- Effect of exchange rate changes on cash and cash equivalents 1,760 -- ---------- --------- Net increase (decrease) in cash and cash equivalents 51,909 (19,246) Cash and cash equivalents at beginning of period 15,925 35,171 ---------- --------- Cash and cash equivalents at end of period $ 67,834 $ 15,925 ========== ========= Reconciliation of Net Loss to EBITDAS (1) (In thousands) Three months ended Year ended March March 31, 31, -------------------------------------- 2008 2007 2008 2007 -------- --------- --------- --------- Net Loss $(1,812) $(11,429) $(25,447) $(34,675) Interest income (1,085) (399) (3,977) (2,179) Other income (expense), net (904) 524 1,654 424 Income tax expense 980 (102) 2,880 (102) Depreciation and amortization 1,925 1,708 10,094 4,750 -------- --------- --------- --------- EBITDA (896) (9,698) (14,796) (31,782) Stock-based compensation 1,307 962 5,665 3,680 -------- --------- --------- --------- EBITDAS $ 411 $ (8,736) $ (9,131) $(28,102) ======== ========= ========= ========= Reconciliation of Forecast Net Loss to Forecast EBITDAS (1) (In thousands) High Low -------- --------- Net loss $(9,000) $(12,000) Interest income (4,500) (4,000) Other expense, net 1,500 1,000 Income tax expense 3,000 2,500 Depreciation and amortization 8,000 8,000 -------- --------- EBITDA (1,000) (4,500) Stock-based compensation 8,000 7,500 -------- --------- EBITDAS $ 7,000 $ 3,000 ======== =========
(1) 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 income (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 energy 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, SuperVAR, D-VAR, DVC, PQ-IVR, PowerModule, PQ-SVC, 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.
SOURCE: American
Superconductor Corporation
American Superconductor Corporation (NASDAQ: AMSC) Jason Fredette, 978-842-3177 Director of Investor & Media Relations jfredette@amsc.com |