AETI Announces 61% quarterly revenue growth
- Growth driven by 169% increase in oil & gas sector revenues
HOUSTON, August 8, 2017 - American Electric Technologies, Inc. (NASDAQ: AETI), a leading supplier of power delivery solutions for the global energy industry, today announced its second quarter 2017 financial results.
AETI announced revenue for the quarter of $13.0 million, up 61% from the $8.0 million reported in Q1 the first quarter of 2017 and up 13% compared with Q2 the second quarter of 2016.
This quarterly revenue increase was primarily driven by growth in the oil & gas sector which saw revenue growth of 169% to $10.53M million. The majority of the oil & gas sector growth came from previously reported backlog in our Technical Products operations, but the cCompany also saw recovery in its M&I Electric Brazil operation in the quarter as well.
Gross margin for the quarter was up $1.4 million from Q1 the first quarter of 2017 but down $410k from Q2 the second quarter of last year2016 due primarily to market pricing pressures in the US oil and gas markets.
The cCompany reported quarter ending backlog of $22.7 million, down $3.9 million from the $26.6 million reported at the end of Q1the first quarter of 2017. The cCompany’s quarter ending backlog did not include the previously announced $4M West Texas pipeline project award received during the first week of July.
Based on the increased revenue and gross margins, the Company saw a $1.5 million improvement in quarterly operating results versus Q1 the first quarter of 2017.
EBITDA (a non-U.S. GAAP measure) improved to a loss of $0.67 million, from a loss of $2.1 million in Q1 the first quarter of 2017, but down versusand a gain of $0.5 million in Q2 2016the second quarter of 2016, while net loss attributable to common shareholders income in the quarter was a loss of $1.1 million, compared with a loss of $2.6 million in Q1 the first quarter of 2017 and break evennet income of $0.1 million in Q2 the second quarter of 2016last year. The second quarter ofQ2 2016 EBITDA and net income included $0.4M million of one-time gains from the settlement of a claim and the gain from the sale of assets related to the disposition of the company’s South Coast facilitymanufacturing operation which closed in Q2 the second quarter of 2016.
“We were pleased with the growth in revenue and bottom line improvements resulting from our strong backlog growth in Q1 the first quarter and our services operations in the US and Brazilian markets,” said Charles Dauber, AETI president and chief executive officer. “Although our markets continue to be very challenging and liquidity remains tight, the company is doing a good job of booking business and executing projects as we head in the second half of 2017.”
AETI will conduct a conference call at 11 a.m. EST on August 8, 2017 to discuss the results with analysts, investors and other interested parties. Individuals who wish to participate in the conference call should dial 866888-454632-42073384 passcode 934089817746, in the United States and Canada. International callers should dial +1 913785-312424-93121675 passcode 934089817746.
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 construction services.
AETI is headquartered in Houston and has global sales, support and manufacturing operations in Beaumont, Texas and Houma, Louisiana; and Rio de Janeiro, Macaé and Belo Horizonte, Brazil. In addition, AETI has minority interests in two joint ventures, which have facilities located in Xian, China and Singapore. 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 domestic and international demand for our products, 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 30, 2017. 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.