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AMSC Reports Fourth Quarter and Fiscal 2015 Financial Results and Provides Business Outlook
May. 31, 2016 08:43AM PST
Cleantech InvestingDEVENS, Mass., May 31, 2016 (GLOBE NEWSWIRE) — AMSC (NASDAQ:AMSC), a global solutions provider serving wind and power grid industry leaders, today reported financial results for its fourth quarter and full year fiscal 2015 ended March 31, 2016. Revenues for the fourth quarter of fiscal 2015 were $27.5 million, compared with $25.1 million for the …
DEVENS, Mass., May 31, 2016 (GLOBE NEWSWIRE) — AMSC (NASDAQ:AMSC), a global solutions provider serving wind and power grid industry leaders, today reported financial results for its fourth quarter and full year fiscal 2015 ended March 31, 2016.
Revenues for the fourth quarter of fiscal 2015 were $27.5 million, compared with $25.1 million for the same period of fiscal 2014. The year over year increase in revenues was due primarily to higher Grid segment revenues in the fourth quarter of fiscal 2015.
AMSC’s net loss for the fourth quarter of fiscal 2015 was $3.4 million, or $0.25 per share, compared to $3.4 million, or $0.36 per share, for the same period of fiscal 2014. Fourth quarter fiscal 2014 net loss included a gain of $2.2 million related to the reversal of legal expenses associated with the settlement of a dispute with a former insurer, and a gain of $1.2 million related to the final settlement of an arbitration proceeding with a former customer.
The Company’s non-GAAP net loss for the fourth quarter of fiscal 2015 was $3.8 million, or $0.28 per share, compared with a non-GAAP net loss of $6.4 million, or $0.69 per share, in the same period of fiscal 2014. Please refer to the financial table below for a reconciliation of GAAP to non-GAAP results.
Revenues for the full year fiscal 2015 were $96.0 million as compared to $70.5 million in fiscal year 2014. The full year growth in revenues was driven by growth in both business units. AMSC reported a net loss for full year fiscal 2015 of $23.1 million, or $1.76 per share, compared to a net loss of $48.7 million, or $5.74 per share, for fiscal year 2014. The Company’s non-GAAP net loss for full year fiscal 2015 was $26.2 million, or $1.99 per share, compared with a non-GAAP net loss of $39.6 million, or $4.67 per share, for fiscal year 2014.
Cash, cash equivalents, and restricted cash at March 31, 2016 increased to $40.7 million, compared with $37.7 million at December 31, 2015.
“Fiscal year 2015 was a year of strong revenue growth in both business units, and improved financial health for our company,” said Daniel P. McGahn, President and CEO, AMSC. “I am very pleased to report that our team here at AMSC delivered results beyond my expectations. As a result, we enter fiscal 2016 with a stronger balance sheet and improved longer-term prospects in both our Wind and Grid businesses.”
Business Outlook
“First quarter revenues will be negatively impacted by historical seasonality in our revenues from Inox, compounded by what has been described by Inox as a near-term working capital constraint,” added McGahn. For the first quarter ending June 30, 2016, AMSC expects that its revenues will be in the range of $12 million to $14 million. The Company’s net loss for the first quarter of fiscal 2016 is expected to be less than $13.0 million, or $0.94 per share. AMSC expects that its non-GAAP net loss (as defined below) for the first quarter of fiscal 2016 will be less than $12.5 million, or $0.90 per share. “Based on discussions with our customers, revenues in our Wind segment are currently expected to return to a more normal level in the second fiscal quarter,” said McGahn.
Conference Call Reminder
In conjunction with this announcement, AMSC management will participate in a conference call with investors beginning at 10:00 a.m. Eastern Time today to discuss the Company’s results and its business outlook. Those who wish to listen to the live or archived conference call webcast should visit the “Investors” section of the Company’s website at https://www.amsc.com/investors. The live call also can be accessed by dialing 719-457-2689 and using conference ID 5408475.
About AMSC (NASDAQ:AMSC)
AMSC generates the ideas, technologies and solutions that meet the world’s demand for smarter, cleaner … better energy™. Through its Windtec™ Solutions, AMSC provides wind turbine electronic controls and systems, designs and engineering services that reduce the cost of wind energy. Through its Gridtec™ Solutions, AMSC provides the engineering planning services and advanced grid systems that optimize network reliability, efficiency and performance. The Company’s solutions are now powering gigawatts of renewable energy globally and are enhancing the performance and reliability of power networks in more than a dozen countries. Founded in 1987, AMSC is headquartered near Boston, Massachusetts with operations in Asia, Australia, Europe and North America. For more information, please visit www.amsc.com.
AMSC, Windtec, Gridtec, and Smarter, Cleaner … Better Energy are trademarks or registered trademarks of American Superconductor Corporation. All other brand names, product names, trademarks or service marks belong to their respective holders.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Any statements in this release about our expectations regarding anticipated financial results, future revenues in our Wind segment 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. Such forward-looking statements represent management’s current expectations and are inherently uncertain. There are a number of important factors that could materially impact the value of our common stock or cause actual results to differ materially from those indicated by such forward-looking statements.
These important factors, which are discussed under the caption “Risk Factors” in Part 1. Item 1A of our Form 10-K for the fiscal year ended March 31, 2016, and our other reports filed with the SEC, among others, could cause actual results to differ materially from those indicated by forward-looking statements made herein and presented elsewhere by management from time to time. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (In thousands, except per share data) | |||||||||||||||
| Three months ended | Years ended | ||||||||||||||
| March 31, | March 31, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| Revenues | |||||||||||||||
| Wind | $ | 19,907 | $ | 21,063 | $ | 68,883 | $ | 51,307 | |||||||
| Grid | 7,618 | 4,066 | 27,140 | 19,223 | |||||||||||
| Total revenues | 27,525 | 25,129 | 96,023 | 70,530 | |||||||||||
| Cost of revenues | 18,284 | 23,488 | 74,041 | 67,442 | |||||||||||
| Gross profit | 9,241 | 1,641 | 21,982 | 3,088 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 3,379 | 2,886 | 12,303 | 11,878 | |||||||||||
| Selling, general and administrative | 7,530 | 5,682 | 28,861 | 29,217 | |||||||||||
| Arbitration award expense | — | (1,201 | ) | — | 8,987 | ||||||||||
| Restructuring and impairments | — | (50 | ) | 779 | 5,366 | ||||||||||
| Amortization of acquisition related intangibles | 39 | 39 | 157 | 157 | |||||||||||
| Total operating expenses | 10,948 | 7,356 | 42,100 | 55,605 | |||||||||||
| Operating loss | (1,707 | ) | (5,715 | ) | (20,118 | ) | (52,517 | ) | |||||||
| Change in fair value of derivatives and warrants | (637 | ) | 915 | (228 | ) | 3,963 | |||||||||
| Gain on sale of minority interests | 581 | — | 3,092 | — | |||||||||||
| Interest expense, net | (196 | ) | (327 | ) | (1,037 | ) | (1,882 | ) | |||||||
| Other (expense) income, net | (1,268 | ) | 1,216 | (2,457 | ) | 1,596 | |||||||||
| Loss before income tax expense | (3,227 | ) | (3,911 | ) | (20,748 | ) | (48,840 | ) | |||||||
| Income tax expense (benefit) | 135 | (546 | ) | 2,391 | (184 | ) | |||||||||
| Net loss | $ | (3,362 | ) | $ | (3,365 | ) | $ | (23,139 | ) | $ | (48,656 | ) | |||
| Net loss per common share | |||||||||||||||
| Basic | $ | (0.25 | ) | $ | (0.36 | ) | $ | (1.76 | ) | $ | (5.74 | ) | |||
| Diluted | $ | (0.25 | ) | $ | (0.36 | ) | $ | (1.76 | ) | $ | (5.74 | ) | |||
| Weighted average number of common shares outstanding | |||||||||||||||
| Basic | 13,559 | 9,235 | 13,178 | 8,477 | |||||||||||
| Diluted | 13,559 | 9,235 | 13,178 | 8,477 | |||||||||||
| UNAUDITED CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||
| (In thousands) | ||||||||||||||||||
| March 31, | March 31, | |||||||||||||||||
| 2016 | 2015 | |||||||||||||||||
| ASSETS | ||||||||||||||||||
| Current assets: | ||||||||||||||||||
| Cash and cash equivalents | $ | 39,330 | $ | 20,490 | ||||||||||||||
| Accounts receivable, net | 19,264 | 9,879 | ||||||||||||||||
| Inventory | 18,512 | 20,596 | ||||||||||||||||
| Prepaid expenses and other current assets | 5,778 | 10,764 | ||||||||||||||||
| Restricted cash | 457 | 2,822 | ||||||||||||||||
| Total current assets | 83,341 | 64,551 | ||||||||||||||||
| Property, plant and equipment, net | 49,778 | 56,097 | ||||||||||||||||
| Intangibles, net | 854 | 1,422 | ||||||||||||||||
| Restricted cash | 934 | 1,236 | ||||||||||||||||
| Deferred tax assets | 96 | 7,766 | ||||||||||||||||
| Other assets | 315 | 2,753 | ||||||||||||||||
| Total assets | $ | 135,318 | $ | 133,825 | ||||||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||
| Current liabilities: | ||||||||||||||||||
| Accounts payable and accrued expenses | $ | 23,156 | $ | 21,615 | ||||||||||||||
| Note payable, current portion, net of discount of $42 as of March 31, 2016 and $244 as of March 31, 2015 | 2,624 | 3,756 | ||||||||||||||||
| Derivative liabilities | 3,227 | 2,999 | ||||||||||||||||
| Deferred revenue | 12,000 | 11,019 | ||||||||||||||||
| Deferred tax liabilities | — | 7,843 | ||||||||||||||||
| Total current liabilities | 41,007 | 47,232 | ||||||||||||||||
| Note payable, net of discount of $133 as of March 31, 2016 and $290 as of March 31, 2015 | 1,367 | 3,877 | ||||||||||||||||
| Deferred revenue | 9,269 | 2,756 | ||||||||||||||||
| Deferred tax liabilities | 63 | — | ||||||||||||||||
| Other liabilities | 63 | 67 | ||||||||||||||||
| Total liabilities | 51,769 | 53,932 | ||||||||||||||||
| Stockholders’ equity: | ||||||||||||||||||
| Common stock, $0.01 par value, 75,000,000 shares authorized; 14,107,126 and 9,624,275 shares issued at March 31, 2016 and 2015, respectively | 141 | 96 | ||||||||||||||||
| Additional paid-in capital | 1,011,813 | 985,921 | ||||||||||||||||
| Treasury stock, at cost, 51,506 and 34,067 shares at March 31, 2016 and 2015, respectively | (881 | ) | (771 | ) | ||||||||||||||
| Accumulated other comprehensive income (loss) | 660 | (308 | ) | |||||||||||||||
| Accumulated deficit | (928,184 | ) | (905,045 | ) | ||||||||||||||
| Total stockholders’ equity | 83,549 | 79,893 | ||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 135,318 | $ | 133,825 | ||||||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||
| (In thousands) | ||||||||||||||||||
| Years ended March 31 | ||||||||||||||||||
| 2016 | 2015 | |||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||
| Net loss | $ | (23,139 | ) | $ | (48,656 | ) | ||||||||||||
| Adjustments to reconcile net loss to net cash used in operations: | ||||||||||||||||||
| Depreciation and amortization | 7,972 | 9,554 | ||||||||||||||||
| Stock-based compensation expense | 3,248 | 5,936 | ||||||||||||||||
| Impairment of minority interest investments | 746 | 3,464 | ||||||||||||||||
| Provision for excess and obsolete inventory | 2,713 | 1,386 | ||||||||||||||||
| Write-off prepaid taxes | 289 | — | ||||||||||||||||
| Gain on sale from minority interest investments | (3,092 | ) | — | |||||||||||||||
| Loss from minority interest investment | 356 | 743 | ||||||||||||||||
| Change in fair value of derivatives and warrants | 228 | (3,963 | ) | |||||||||||||||
| Reversal of Catlin legal costs | — | (2,220 | ) | |||||||||||||||
| Non-cash interest expense | 359 | 566 | ||||||||||||||||
| Other non-cash items | 1,462 | (2,436 | ) | |||||||||||||||
| Changes in operating asset and liability accounts: | ||||||||||||||||||
| Accounts receivable | (9,318 | ) | (2,677 | ) | ||||||||||||||
| Inventory | (782 | ) | (1,887 | ) | ||||||||||||||
| Prepaid expenses and other current assets | 5,608 | (2,330 | ) | |||||||||||||||
| Accounts payable and accrued expenses | 1,543 | 5,579 | ||||||||||||||||
| Deferred revenue | 7,248 | 4,265 | ||||||||||||||||
| Net cash used in operating activities | (4,559 | ) | (32,676 | ) | ||||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||
| Net cash provided by investing activities | 4,873 | 1,809 | ||||||||||||||||
| Cash flows from financing activities: | ||||||||||||||||||
| Net cash provided by financing activities | 18,202 | 8,783 | ||||||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | 324 | (540 | ) | |||||||||||||||
| Net increase/(decrease) in cash and cash equivalents | 18,840 | (22,624 | ) | |||||||||||||||
| Cash and cash equivalents at beginning of year | 20,490 | 43,114 | ||||||||||||||||
| Cash and cash equivalents at end of period | $ | 39,330 | $ | 20,490 | ||||||||||||||
| RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS) | ||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| Three months ended | Years ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Net loss | $ | (3,362 | ) | $ | (3,365 | ) | $ | (23,139 | ) | $ | (48,656 | ) | ||||
| Gain on sale of interest in minority investments, net of tax effect | (565 | ) | — | (2,919 | ) | — | ||||||||||
| Stock-based compensation | 706 | 1,316 | 3,248 | 5,936 | ||||||||||||
| Arbitration award expense | — | (1,201 | ) | — | 8,987 | |||||||||||
| Amortization of acquisition-related intangibles | 39 | 39 | 157 | 157 | ||||||||||||
| Restructuring and impairment charges | — | (50 | ) | 779 | 5,366 | |||||||||||
| Consumption of zero cost-basis inventory | (1,348 | ) | (2,272 | ) | (4,960 | ) | (7,982 | ) | ||||||||
| Change of fair value of derivatives and warrants | 637 | (915 | ) | 228 | (3,963 | ) | ||||||||||
| Non-cash interest expense | 69 | 76 | 359 | 566 | ||||||||||||
| Non-GAAP net loss | $ | (3,824 | ) | $ | (6,372 | ) | $ | (26,247 | ) | $ | (39,589 | ) | ||||
| Non-GAAP loss per share | $ | (0.28 | ) | $ | (0.69 | ) | $ | (1.99 | ) | $ | (4.67 | ) | ||||
| Weighted average shares outstanding | 13,559 | 9,235 | 13,178 | 8,477 | ||||||||||||
| Reconciliation of Forecast GAAP Net Loss to Non-GAAP Net Loss | |||
| (In millions, except per share data) | |||
| Three months ending | |||
| June 30, 2016 | |||
| Net loss | $ | (13.0 | ) |
| Stock-based compensation | 0.7 | ||
| Non-cash interest expense | 0.1 | ||
| Consumption of zero-cost inventory | (0.3 | ) | |
| Non-GAAP net loss | $ | (12.5 | ) |
| Non-GAAP net loss per share | $ | (0.90 | ) |
| Shares outstanding | 13.9 | ||
Note: Non-GAAP net loss is defined by the Company as net loss before stock-based compensation; amortization of acquisition-related intangibles; consumption of zero cost-basis inventory; non-cash interest expense; change in fair value of derivatives and warrants; and other unusual charges, net of any tax effects related to these items. The Company believes non-GAAP net loss assists management and investors in comparing the Company’s performance across reporting periods on a consistent basis by excluding these non-cash, non-recurring or other charges that it does not believe are indicative of its core operating performance. The Company also regards non-GAAP net loss as a useful measure of operating performance to complement operating loss, net loss and other GAAP financial performance measures. In addition, the Company uses non-GAAP net loss as a factor in evaluating management’s performance when determining incentive compensation and to evaluate the effectiveness of its business strategies.
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. The non-GAAP measures included in this release, however, should be considered in addition to, and not as a substitute for or superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP. A reconciliation of non-GAAP to GAAP net loss is set forth in the table above.
AMSC Contact: Brion D. Tanous Phone: 424-634-8592 Email: Brion.Tanous @ amsc.com
