updated 3/21/2011 4:16:42 PM ET 2011-03-21T20:16:42

TULSA, Okla., March 21, 2011 (GLOBE NEWSWIRE) -- Global Power Equipment Group Inc. (Nasdaq:GLPW) ("Global Power" or the "Company") today announced its audited financial results for the fourth quarter and year ended December 31, 2010. These results are available for review on the Company's website at www.globalpower.com .

For the three months ended December 31, 2010, the Company reported revenues of $121.9 million and net income of $4.2 million, or $0.26 per diluted share. Revenues for the year ended December 31, 2010 were $520.1 million and net income was $40.6 million, or $2.49 per diluted share.

"Our fourth quarter 2010 financial results were once again well above normal operating profit margins and helped us to post full year results that exceeded our expectations. However, it should be noted that our full year results were materially impacted by favorable non-recurring items and we have updated our directional guidance for 2011 to reflect our current view of market conditions and outlook," said David Keller, President and CEO of Global Power. "We are extremely pleased to have paid off our term loan balance in full during the fourth quarter and continue to see signals that support accelerating growth projections in 2012 and beyond."

The Company generated EBITDA (earnings before interest, taxes, depreciation, and amortization) from continuing operations of $13.0 million and $55.2 million for the three months and year ended December 31, 2010, respectively. EBITDA is a non-GAAP financial measure. A reconciliation of our income to EBITDA is included in the schedules attached to this press release.

In addition, the Company's backlog increased $3.8 million from September 30, 2010 to $349.3 million as of December 31, 2010. Backlog is not a measure defined by generally accepted accounting principles, and our methodology for determining backlog may vary from the methodology used by other companies in determining their backlog amounts. Backlog may not be indicative of future operating results and projects in our backlog may be cancelled, modified or otherwise altered by our customers.

Interest expense for the three months and year ended December 31, 2010 was $2.8 million and $7.1 million, respectively. As of December 31, 2010, the Company had unrestricted cash of $55.5 million and $25 million of unused capacity on its revolving credit facility.

The Company has posted updates to its investor presentation including 2010 financial results and directional guidance for 2011. The presentation is accessible in the Investor Relations section of our website at www.globalpower.com.

The Company will host a conference call on Tuesday, March 22, 2011 at 10:30 a.m. Central Time (11:30 a.m. Eastern Time) to discuss these results. The call can be accessed live over the telephone by dialing (877) 407-9039, or for international callers, (201) 689-8470. A replay will be available shortly after the call and can be accessed by dialing (877) 870-5176, or for international callers, (858) 384-5517. The passcode for the replay is 368176. The replay will be available until April 5, 2011.

About Global Power

Oklahoma-based Global Power Equipment Group Inc. is a design, engineering and manufacturing firm providing a broad array of equipment and services to the global power infrastructure, energy and process industries. Through its Services Division, the Company provides on-site specialty support and outage management services for commercial nuclear reactors in the United States, and maintenance services to fossil and hydroelectric power plants and other industrial operations. Through its Products Division, the Company designs, engineers and manufactures a comprehensive portfolio of equipment for gas turbine power plants and power-related equipment for industrial operations, with over 40 years of power generation industry experience. With a strong competitive position in its product lines, the Company benefits from a large installed base of equipment in domestic and international markets. Additional information about Global Power may be found at www.globalpower.com .

The table below represents the operating results of the Company for the periods indicated:

 
GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
         
  Three Months Ended

December 31,
Years Ended

December 31,
  2010 2009 2010 2009
  (Unaudited)    
         
Product revenues  $ 32,143  $ 39,458  $ 142,683  $ 193,150
Service revenues  89,737  123,589  377,461  347,460
Total revenues  121,880  163,047  520,144  540,610
         
Cost of product revenues  22,090  39,212  98,757  150,137
Cost of service revenues  73,706  111,465  318,866  310,048
Cost of revenues  95,796  150,677  417,623  460,185
         
Gross profit  26,084  12,370  102,521  80,425
         
Selling and administrative expenses  14,153  11,852  52,872  46,664
Operating income  11,931  518  49,649  33,761
         
Interest expense  2,800  2,425  7,052  9,667
Reorganization expense (income)  28  735  (1,477)  1,030
Income tax expense   4,711  3,307  6,410  5,282
Income (loss) from continuing operations  4,392  (5,949)  37,664  17,782
         
Discontinued operations:        
Income (loss) from discontinued operations, net of tax  (193)  1,729  2,971  7,369
Gain on disposal, net of tax  --  201  --  2,736
         
Net income (loss)  $ 4,199  $ (4,019)  $ 40,635  $ 27,887
         
Basic earnings per weighted average common share:        
Income (loss) from continuing operations   $ 0.29  $ (0.39)  $ 2.47  $ 1.19
Income (loss) from discontinued operations  (0.02)  0.13  0.19  0.67
Income (loss) per common share - basic  $ 0.27  $ (0.26)  $ 2.66  $ 1.86
         
Weighted average number of shares of common stock outstanding - basic  15,316,910  15,189,062  15,253,579  14,971,921
         
Diluted earnings per weighted average common share:        
Income (loss) from continuing operations   $ 0.27  $ (0.37)  $ 2.30  $ 1.14
Income (loss) from discontinued operations  (0.01)  0.12  0.19  0.65
Income (loss) per common share - diluted  $ 0.26  $ (0.25)  $ 2.49  $ 1.79
         
Weighted average number of shares of common stock outstanding - diluted  16,451,155  15,867,188  16,340,336  15,566,242
 
 
GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES
SUPPLEMENTAL STATISTICAL INFORMATION
(in thousands)
         
  Three Months Ended

December 31,
Twelve Months Ended

December 31, 
  2010 2009 2010 2009
  (Unaudited)    
Income from continuing operations  $ 4,392  $ (5,949)  $ 37,664  $ 17,782
Add back:        
Income tax provision  4,711  3,307  6,410  5,282
Interest expense  2,800  2,425  7,052  9,667
Depreciation and amortization  1,052  1,330  4,060  4,151
         
EBITDA from continuing operations (a)  $ 12,955  $ 1,113  $ 55,186  $ 36,882
         
(a) EBITDA from continuing operations represents net income adjusted for income taxes, interest, depreciation and amortization and income from discontinued operations. The Company believes EBITDA is an important supplemental measure of operating performance and uses it to assess performance and inform operating decisions. However EBITDA is not a GAAP financial measure. The Company's calculation of EBITDA should not be used as a substitute for GAAP measures of performance, including net cash provided by operations, operating income and net income. The Company's method of calculating EBITDA may vary substantially from the methods used by other companies and investors are cautioned not to rely unduly on it.
 
 
GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES
HIGHLIGHTS FROM CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
     
     
  December 31,

2010
December 31,

2009
ASSETS    
Current assets:    
Cash and cash equivalents  $ 55,474  $ 103,220
Restricted cash  1,019  2,018
Accounts receivable, net of allowance of $2,508 and $1,588  58,892  62,267
Inventories  5,077  4,659
Costs and estimated earnings in excess of billings  33,076  29,470
Other current assets  4,901  10,169
Total current assets  158,439  211,803
     
Property, plant and equipment, net  12,234  12,945
Other long-term assets  95,052  101,263
Total assets  $ 265,725  $ 326,011
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Current maturities of long-term debt  $ --   $ 40,692
Accounts payable and accrued liabilities  37,328  48,411
Billings in excess of costs and estimated earnings  11,335  31,148
Deferred revenue  --   3,006
Other current liabilities  15,892  22,344
Total current liabilities  64,555  145,601
     
Long-term deferred tax liability  17,748  14,768
Other long-term liabilities  4,159  3,990
Long-term debt, net of current maturities  --   24,633
Liabilities subject to compromise  207  541
Total liabilities  86,669  189,533
     
Stockholders' equity  179,056  136,478
     
Total liabilities and stockholders' equity  $ 265,725  $ 326,011
 
 
GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES
HIGHLIGHTS FROM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
          Years Ended December 31,
          2010 2009
             
             
Net cash provided by operating activities          $ 19,675  $ 63,388
Net cash (used in) provided by investing activities          (681)  999
Net cash (used in) financing activities          (65,334)  (19,740)
Effect of exchange rate changes on cash          (1,406)  940
Net change in cash and cash equivalents          $ (47,746)  $ 45,587
CONTACT: Jennifer Gordon
         ICR
         (918) 274-2280
         investorrelations@globalpower.com

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