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:
-- PDF
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)
============== ==============
FOR FURTHER INFORMATION PLEASE CONTACT:
Ciel R. Caldwell
Chief Financial Officer
Northern Power Systems
1 857 209 3606
ir@northernpower.com
Canadian Large Cap Leade... (TSX:NPS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Canadian Large Cap Leade... (TSX:NPS)
Historical Stock Chart
From Jul 2023 to Jul 2024
