Global Power Equipment paid off debt early, eyes acquisitions in 2011

By Lisa Kerner

Charlotte, N.C., March 22 - Global Power Equipment Group Inc. chief executive officer David Keller called 2010 a "transformational year" for the company, noting a shift in the business mix to service.

The company reported its highest profits since emerging from bankruptcy in 2008, Keller said during the company's fourth-quarter and full-year 2010 earnings call on Tuesday.

In the fourth quarter, Global Power paid off its term debt in full, three years early. As previously reported, the company repaid its $24.6 million term loan in full in December.

Revenues for the year ended Dec. 31 were $520.1 million.

Keller said Global Power is "actively seeking bolt-on acquisitions in products and services."

Chief financial officer David Willis said during the call that Global Power entered 2011 "in a robust financial position."

Cash net of debt was down $8 million for the quarter but up $17 million for the year.

Unrestricted cash available at year-end was $55 million, and Global Power had access to $25 million on its undrawn revolver.

"We believe we have ample liquidity to support our existing operations and to pursue accretive acquisitions," Willis said.

According to Willis, fourth-quarter consolidated revenue was $122 million, down 25% from the prior year.

Consolidated gross profit for the quarter was $26 million, or 21% of revenues, slightly more than double last year's $12 million, or 8% of revenues.

EBITDA from continuing operations was $13 million for the fourth quarter and $55 million for the full year.

The company reported net income for the quarter of $4 million, or $0.25 per diluted share. Net income for the year was $41 million, or $2.49 per diluted share, said Willis.

Global Power Equipment is a Tulsa, Okla.-based design, engineering and manufacturing firm that provides equipment and services to the power infrastructure, energy and process industries.

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