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AETI Records $1.5M Quarterly Loss Before One-Time Expenses And Announces Record Backlog


American Electric Technologies, Inc. (Nasdaq: AETI), a leading supplier of power delivery solutions for the global energy industry, today announced its third quarter 2014 financial results.

The Company reported a $2.1 million net loss attributable to common shareholders in the third quarter of 2014 on consolidated revenue of $14.3 million, down from income of $0.9 million in the third quarter of 2013 on $16.2 million of revenue. Included in the results was a loss of $0.2 million related to the start-up of the Company's Brazilian subsidiary and a $0.4 million write-down of the Company's remaining renewable energy business assets.

During the quarter, the Company experienced project delays and manufacturing cost overruns due to new product introductions and a significant increase in the number of large power distribution center (PDC) projects in process for the midstream and downstream oil and gas markets.

The cost overruns and one-time charges drove gross margins for the company to 3%, down from 17% in Q3 of 2013.

The Company also reported that based on continued sales success and new major customer wins that it achieved record year-to-date revenues from continuing operations of $43.6 million for the first nine months of the year and ended the quarter with record backlog of $28 million.

"Our record first nine-month revenue and backlog for the quarter and our expanding list of break-in wins at new blue-chip energy customers highlight our progress in becoming a market leader in turnkey power delivery solutions for the North American energy market", said Charles Dauber, president and chief executive officer, AETI. "This quarter, we experienced cost overruns and project delays that impacted our project margins due to the significant increase in the number of million-dollar-plus PDC projects we have in process and the introduction of our arc-resistant product lines. Most of these projects will be completed during the fourth quarter."

In the third quarter, the Company reported the hiring of Bill Miller as its new chief operating officer. In this newly created role, Mr. Miller is responsible for scaling the company's operations, improving project execution and driving the company's profitability. Mr. Miller has 30 years of experience in plant management, operations and business leadership, and is located in the Company's Beaumont, Texas manufacturing and operations facility.

The Company's international joint ventures reported net equity income after expenses of $ 0.2 million, which reflects the typical seasonality of its Chinese joint venture.

Dauber continued, "We understand the causes of our growing pains and are addressing those issues. The hiring of our new chief operating officer will enable us to improve project execution and to profitably scale our operations. While Q3 financial results were disappointing, the strategy and foundation we are putting in place will allow us to scale the company and add long-term value for our shareholders."

Posted-In: News Press Releases


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