Northern Power Systems Announces Q1 2014 Financial Results
May 29 2014 - 6:59PM
Marketwired
Northern Power Systems Announces Q1 2014 Financial Results
Strong Revenue and Order Growth; Reinvesting in Business
Expansion
BARRE, VT--(Marketwired -
May 29, 2014) -
First Quarter 2014 Highlights:
- Expanded quarterly revenues to $13.8 million from $1.7
million in the prior year period; revenue expansion driven
by strong order fulfillment supporting demand for the
Company's distributed class turbines as well as utility class
power converters.
- Concluded capital raise of $22.3 million in April,
supporting strategic plans for global expansion in sales
of Northern Power Systems' offerings.
- Grew backlog to approximately $48 million, an increase of
more than 125 percent over the prior year period.
- Executed follow-on 3.3MW utility class
platform development contract with strategic partner WEG
Energy, enabling the future development of an expanded
licensing platform and direct sales of utility class
turbines.
Northern Power Systems Corp. (TSX:
NPS), a next generation renewable energy technology company,
today announced financial results for the three month period
ended March 31, 2014, for its predecessor company Wind Power
Holdings, Inc. Northern Power raised $22.3 million and listed its
common shares on the Toronto Stock Exchange (TSX) in April 2014
through a transaction with a Canadian capital pool company. These
funds effectively enable the company to drive its ongoing growth
strategy with investments across its three business
lines: Product Sales and Services, Technology Licensing, and
Technology Development.
"Our first quarter financial results demonstrated exceptionally
strong year-over-year revenue growth and order expansion,
particularly in our core distributed class wind turbine business.
Our results can be impacted by various seasonal trends and in the
first quarter we experienced a stronger than typical expansion,"
said Troy Patton, president and chief executive officer.
"After a record year in 2013 of orders for our distributed class
wind turbines, as well as closing key technology licensing
contracts, we were pleased to deliver continued strong order
momentum supporting our strongest backlog in Company history."
Patton continued, "Completion of our capital raise in April of
2014 will drive continued growth by effectively supporting Northern
Power Systems' expanded sales efforts and delivery of improved
technology platforms for our customers. Our development of emerging
opportunities globally continues to validate the strength and value
proposition of our technology."
Consolidated Financial Metrics:
- Revenue for the first quarter of fiscal year 2014 grew
to $13.8 million, a 712 percent increase over
revenue of $1.7 million reported in the prior year
period.
- Order backlog at March 31, 2014 was $48.4 million, a 128
percent increase over backlog of $21.2 million at March
31, 2013.
- Gross margin (revenue minus the cost of revenue as a
percent of total revenue) in the first quarter was 8.6 percent,
up from a gross margin loss of 9.8 percent in the prior year
period.
- GAAP net loss for the first quarter was $3.1 million,
representing an 8.8 percent decrease compared to a $3.4
million loss in the prior year period.
- Non-GAAP adjusted EBITDA loss for the first quarter
was $2.5 million, representing a 13.7 percent
decrease compared to a non-GAAP adjusted EBITDA loss
of $2.9 million, in the prior year period.
- Cash used in operations in the first quarter was $2.3
million, representing a 32 percent decrease compared to a
$3.4 million usage of cash for operations in the prior year
period.
- Upon closing of the capital raise in April 2014, all of
the Company's outstanding convertible notes converted to
common shares. After the consummation of the transaction the
Company had approximately $0.5 million in outstanding debt and
in excess of $20 million of cash and cash equivalents.
About non-GAAP financial measures
To supplement Northern Power Systems' consolidated financial
statements presented in accordance with U.S. generally accepted
accounting principles (GAAP), Northern Power Systems has
used a non-GAAP financial measure, specifically non-GAAP adjusted
EBITDA. Adjusted non-GAAP EBITDA is defined as net income/(loss),
excluding share-based compensation expense, amortization of
acquisition-related intangibles, depreciation of property, plant
and equipment, interest expense, tax charges, and certain other
non-cash charges as applicable.
The presentation of non-GAAP financial information is not
intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with
GAAP. For more information on non-GAAP adjusted EBITDA, please see
the table captioned "Reconciliation of GAAP Net Loss to Non-GAAP
Adjusted EBITDA Net Loss" included at the end of this release. The
table has more details on the GAAP financial measure that is most
directly comparable to non-GAAP adjusted EBITDA and the related
reconciliation between these financial measures.
Northern Power Systems' management believes that this non-GAAP
financial measure provides meaningful supplemental information in
assessing our performance and liquidity by excluding certain items
that may not be indicative of our recurring core business operating
results, which could be non-cash charges or discrete cash charges
that are infrequent in nature. This non-GAAP financial measure also
has facilitated management's internal comparisons to Northern Power
Systems' historical performance and our competitors' operating
results, as well as reflects measurements which are used by
creditors and other third parties in assessing our performance.
The "Condensed Consolidated Statements of Operations" can be
viewed on our website:
http://www.northernpower.com/nps-q1-2014-financial-results/
About Northern Power Systems
Northern Power Systems designs, manufactures, and sells wind
turbines, and provides engineering development services and
technology licenses for energy applications, into the global
marketplace from its US headquarters and European offices.
- Northern Power Systems has almost 40 years' experience in
technologies and products generating renewable energy.
- Northern Power Systems currently manufactures the NPS™ 60 and
NPS™ 100 turbines. With over 5 million run time hours across its
global fleet, Northern Power wind turbines provide customers with
clean, cost effective, reliable renewable energy.
- Patented next generation permanent magnet/direct drive (PM/DD)
technology uses fewer moving parts, delivers higher energy capture,
and provides increased reliability due to reduced maintenance and
downtime.
- Northern Power Systems offers comprehensive in-house
development services, including systems level engineering, advanced
drivetrains, power electronics, PM machine design, and remote
monitoring systems to the energy industry.
- Some of the world's largest manufacturers license the company's
next generation technology and IP for their utility and distributed
wind products and markets.
To learn more about Northern Power Systems, please visit
www.northernpower.com.
Notice regarding forward-looking statements:
This release includes forward-looking statements regarding
Northern Power Systems Corp. and its business, which may include,
but is not limited to, anticipated use of proceeds from capital
transactions, expansion into new markets, and execution of the
company's growth strategy. Often, but not always, forward-looking
statements can be identified by the use of words such as "plans",
"is expected", "expects", "scheduled", "intends", "contemplates",
"anticipates", "believes", "proposes" or variations (including
negative variations) of such words and phrases, or state that
certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved. Such statements are based
on the current expectations of the management of Northern Power
Systems Corp. The forward-looking events and circumstances
discussed in this release may not occur by certain specified dates
or at all and could differ materially as a result of known and
unknown risk factors and uncertainties affecting the company,
including risks regarding the wind power industry, performance and
acceptance of the company's products, economic factors,
competition, the equity markets generally and many other factors
beyond the control of Northern Power Systems Corp. Although
Northern Power Systems Corp. has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events
or results to differ from those anticipated, estimated or intended.
No forward-looking statement can be guaranteed. Except as required
by applicable securities laws, forward-looking statements speak
only as of the date on which they are made and Northern Power
Systems Corp. undertakes no obligation to publicly update or revise
any forward-looking statement, whether as a result of new
information, future events, or otherwise.
The following files are available for download:
|
|
NORTHERN POWER SYSTEMS
CORP. |
|
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited) |
FOR THE PREDECESSOR COMPANY
WIND POWER HOLDINGS, INC. |
FOR THE THREE MONTHS ENDED MARCH
31, 2014 AND 2013 |
(All amounts in thousands,
except share and per share amounts) |
|
|
|
|
|
|
For the three months ended |
|
|
|
March 31, 2014 |
|
|
March 31, 2013 |
|
REVENUE: |
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
13,756 |
|
|
$ |
1,678 |
|
COSTS OF REVENUE AND OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
12,566 |
|
|
|
1,844 |
|
|
Sales and marketing |
|
|
780 |
|
|
|
573 |
|
|
Research and development |
|
|
1,139 |
|
|
|
1,005 |
|
|
General and administrative |
|
|
2,176 |
|
|
|
1,512 |
|
|
|
Total costs of revenue and operating expenses |
|
|
16,661 |
|
|
|
4,934 |
|
|
Loss from operations |
|
|
(2,905 |
) |
|
|
(3,256 |
) |
|
Interest expense |
|
|
(240 |
) |
|
|
(18 |
) |
|
Other income /(expense) |
|
|
35 |
|
|
|
(84 |
) |
|
Loss before provision for income taxes |
|
|
(3,110 |
) |
|
|
(3,358 |
) |
|
Provision for income taxes |
|
|
14 |
|
|
|
26 |
|
NET LOSS |
|
$ |
(3,124 |
) |
|
$ |
(3,384 |
) |
COMPREHENSIVE LOSS |
|
$ |
(3,124 |
) |
|
$ |
(3,384 |
) |
|
|
|
|
|
|
|
|
|
Net loss applicable to common stockholders |
|
$ |
(3,124 |
) |
|
$ |
(4,907 |
) |
Net loss per common share |
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.24 |
) |
|
$ |
(325.57 |
) |
Weighted average number of common shares
outstanding |
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
12,840,187 |
|
|
|
15,072 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NORTHERN POWER SYSTEMS CORP. |
|
|
|
FOR THE PREDECESSOR COMPANY WIND POWER HOLDINGS,
INC. |
|
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited) |
|
AS OF MARCH 31, 2014 AND DECEMBER 31, 2013 |
|
(All amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
December 31, |
|
|
|
2014 |
|
|
2013 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
|
|
Cash |
|
$ |
1,996 |
|
|
$ |
4,534 |
|
|
Accounts receivable |
|
|
2,750 |
|
|
|
1,175 |
|
|
Unbilled revenue |
|
|
2,896 |
|
|
|
786 |
|
|
Inventories - net |
|
|
12,432 |
|
|
|
11,682 |
|
|
Other current assets |
|
|
2,842 |
|
|
|
2,808 |
|
|
|
Total current assets |
|
|
22,916 |
|
|
|
20,985 |
|
|
Property, plant and equipment - net |
|
|
1,477 |
|
|
|
1,414 |
|
|
Asset held for sale |
|
|
1,300 |
|
|
|
1,300 |
|
|
Intangible assets - net |
|
|
463 |
|
|
|
509 |
|
|
Goodwill |
|
|
722 |
|
|
|
722 |
|
|
Other assets |
|
|
744 |
|
|
|
2,615 |
|
|
|
Total Assets |
|
|
27,622 |
|
|
|
27,545 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIENCY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
93 |
|
|
$ |
141 |
|
|
Senior secured convertible notes |
|
|
- |
|
|
|
12,107 |
|
|
Accounts payable |
|
|
4,339 |
|
|
|
2,148 |
|
|
Accrued expenses |
|
|
3,865 |
|
|
|
2,158 |
|
|
Accrued compensation |
|
|
2,590 |
|
|
|
2,207 |
|
|
Other current liabilities |
|
|
16,294 |
|
|
|
18,465 |
|
|
|
Total current liabilities |
|
|
27,181 |
|
|
|
37,226 |
|
|
Senior secured convertible notes |
|
|
12,290 |
|
|
|
- |
|
|
Deferred revenue, less current portion |
|
|
1,284 |
|
|
|
1,163 |
|
|
Other long-term liability |
|
|
647 |
|
|
|
558 |
|
|
|
Total Liabilities |
|
|
41,402 |
|
|
|
38,947 |
|
STOCKHOLDERS' DEFICIENCY: |
|
|
|
|
|
|
|
|
Common stock |
|
|
128 |
|
|
|
128 |
|
Additional paid-in capital |
|
|
140,550 |
|
|
|
139,804 |
|
Accumulated deficit |
|
|
(154,458 |
) |
|
|
(151,334 |
) |
|
|
Total Stockholders' Deficiency |
|
|
(13,780 |
) |
|
|
(11,402 |
) |
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders' Deficiency |
|
$ |
27,622 |
|
|
$ |
27,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NORTHERN POWER SYSTEMS
CORP. |
|
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (unaudited) |
FOR THE PREDECESSOR COMPANY
WIND POWER HOLDINGS, INC. |
FOR THE THREE MONTHS ENDED
MARCH 31, 2014 AND 2013 |
(All amounts in thousands) |
|
|
|
|
|
|
For the three months ended |
|
|
|
March 31, 2014 |
|
|
March 31, 2013 |
|
OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(3,124 |
) |
|
$ |
(3,384 |
) |
Adjustments to reconcile net loss to net cash used in
operating activities: |
|
|
|
|
|
|
|
|
|
Change in fair value of warrants |
|
|
- |
|
|
|
63 |
|
|
Provision for inventory obsolescence |
|
|
93 |
|
|
|
48 |
|
|
Provision for doubtful accounts |
|
|
(63 |
) |
|
|
1 |
|
|
Stock-based compensation expense |
|
|
148 |
|
|
|
122 |
|
|
Depreciation and amortization |
|
|
178 |
|
|
|
227 |
|
|
Noncash restructure charges |
|
|
- |
|
|
|
50 |
|
|
Deferred income taxes |
|
|
3 |
|
|
|
3 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
Accounts receivable and unbilled
revenue |
|
|
(3,622 |
) |
|
|
(79 |
) |
|
Other current and noncurrent assets |
|
|
(112 |
) |
|
|
293 |
|
|
Inventories |
|
|
(843 |
) |
|
|
(1,443 |
) |
|
Accounts payable |
|
|
2,191 |
|
|
|
(57 |
) |
|
Accrued expenses |
|
|
2,090 |
|
|
|
134 |
|
|
Other liabilities |
|
|
777 |
|
|
|
587 |
|
|
|
|
|
|
|
|
|
|
|
Net cash used in operating activities |
|
|
(2,284 |
) |
|
|
(3,435 |
) |
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(195 |
) |
|
|
(53 |
) |
|
|
Net cash used in investing activities |
|
|
(195 |
) |
|
|
(53 |
) |
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
Proceeds from borrowings of short-term debt |
|
|
- |
|
|
|
750 |
|
|
Debt principal payments |
|
|
(59 |
) |
|
|
(30 |
) |
|
|
Net cash (used in) provided by financing
activities |
|
|
(59 |
) |
|
|
720 |
|
|
|
|
|
|
|
|
|
|
|
|
Change in cash |
|
|
(2,538 |
) |
|
|
(2,768 |
) |
|
Cash - Beginning of the Period |
|
|
4,534 |
|
|
|
4,456 |
|
|
Cash - End of the Period |
|
$ |
1,996 |
|
|
$ |
1,688 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NORTHERN POWER SYSTEMS CORP. |
|
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP
ADJUSTED EBITDA NET LOSS (unaudited) |
FOR THE PREDECESSOR COMPANY WIND POWER HOLDINGS,
INC. |
FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND
2013 |
(All amounts in thousands) |
|
|
|
|
|
|
For the three months ended |
|
|
|
March 31, 2014 |
|
|
March 31, 2013 |
|
|
|
NET
LOSS |
|
$ |
(3,124 |
) |
|
$ |
(3,384 |
) |
Interest
expense |
|
|
240 |
|
|
|
18 |
|
Provision
for income taxes |
|
|
14 |
|
|
|
26 |
|
Depreciation and amortization |
|
|
178 |
|
|
|
227 |
|
Stock
compensation expense |
|
|
148 |
|
|
|
122 |
|
Fair value
of warrants classified as liability |
|
|
- |
|
|
|
63 |
|
Non-GAAP
adjusted EBITDA net loss |
|
$ |
(2,544 |
) |
|
$ |
(2,928 |
) |
Ciel R. CaldwellChief Financial OfficerNorthern Power
Systems1 857 209 3606ir@northernpower.com
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