Continued distributed wind revenue and order growth
Barre, VT USA (12 November 2015) – Northern Power Systems Corp. (TSX: NPS), a next generation renewable energy technology company, today announced financial results for its third quarter ended September 30, 2015.
Revenue for the three months ended September 30, 2015 was $16.7 million, compared to $15.0 million in the third quarter of 2014. GAAP net loss for the third quarter of 2015 was $0.5 million, compared to a net loss of $0.3 million in the prior year third quarter.
“Revenue in our third quarter of 2015 continued to increase significantly on a sequential basis led by distributed turbine sales in our key markets,” stated Troy Patton, president and chief executive officer of Northern Power Systems. “Our year-to-date distributed turbine orders have increased twelve percent over the same period in 2014, demonstrating continued growth in our core business. Overall we continue to expect that revenue will be on par with 2014, despite impacts to our product sales in the first half of 2015. After announcing the launch of our FlexPhase power converters in the expanding battery energy storage market entering the quarter, we executed our first order in this market during the third quarter. Finally, we continue to focus on expanding the commercialization of our utility class wind technology leveraging its expanding proven track record in the Brazilian market.”
“Our third quarter of 2015 represented a record revenue quarter, along with achievement of declining sequential costs for our core product,” stated Ciel Caldwell, chief financial officer of Northern Power Systems. “However the mix of our sales resulted in an overall gross margin below the same quarter in 2014. During the quarter, we continued to reduce our operating expenses in our drive for profitability, while maintaining sales and marketing investment with sustained focus on expanding our business. This level of continued focus on control of expenses and working capital management maintains our confidence in having adequate cash to grow and develop our business.”
Consolidated Third Quarter Financial Metrics:
- Revenue for the third quarter of fiscal year 2015 was $16.7 million, compared to $15.0 million reported in the prior year period and $12.5 million reported in the second quarter of 2015.
- Gross margin in the third quarter was 20.4 percent, down from gross margin of 32.2 percent in the prior year period, but above gross margin of 9.3 percent in the second quarter of 2015.
- GAAP net loss for the third quarter of fiscal year 2015 was $0.5 million, compared to a $0.3 million loss in the prior year third quarter.
- Non-GAAP adjusted EBITDA income for the third quarter was $0.3 million, compared to non-GAAP adjusted EBITDA income of $0.5 million in the prior year third quarter.
- Order backlog at September 30, 2015 was approximately $36 million, compared to $47 million at September 30, 2014.
Earnings Conference Call
The Company will host a conference call and webcast tomorrow, November 13, 2015 at 8:00 a.m. (EST) to discuss the third quarter 2015 financial results and other matters.
To participate, callers in the United States should dial +1-877-317-6789, Canada +1-866-605-3852 and in other countries +1-412-317-6789. Participants should ask to be joined to the Northern Power Systems call.
The conference call will also be available via webcast on the Investor Relations section of Northern Power’s website (http://www.ir.northernpower.com). A webcast slide presentation for the quarterly results will also be available at the Company’s website.
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 income (loss). Non-GAAP adjusted EBITDA income (loss) 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 provision or benefit, and certain other non-cash impacts 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 income (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.
About Northern Power Systems
Northern Power Systems designs, manufactures, and sells wind turbines and power technology products, 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 8.5 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 (PMDD) technology uses fewer moving parts, delivers higher energy capture, and provides increased reliability due to reduced maintenance and downtime.
- Northern Power Systems’ FlexPhase™ power converter platform uses patented converter architecture and advanced controls technology for advanced grid support and generation applications.
- 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 and its business, which may include, but is not limited to, product and financial performance, regulatory developments, supplier performance, anticipated opportunity and trends for growth in our customer base and our overall business, our market opportunity, 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. 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; production, performance and acceptance of the company’s products; our sales cycle; our ability to convert backlog into revenue; performance by the company’s suppliers; our ability to maintain successful relationships with our partners and to enter into new partner relationships; our performance internationally; currency fluctuations; economic factors; competition; the equity markets generally; and the other risks detailed in Northern Power Systems’ risk factors discussed in filings with the U.S. Securities and Exchange Commission (the “SEC”), including but not limited to Northern Power Systems’ Annual Report on Form 10-K filed on March 31, 2015, as well as other documents that may be filed by Northern Power Systems from time to time with the SEC. Although Northern Power Systems 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 undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Ciel R. Caldwell,
Chief Financial Officer