TPI Achieves Record Net Sales for the Full Year of 2021

TPI Composites, Inc. reported financial results for the fourth quarter and full year ended December 31, 2021. Net sales for the three months ended December 31, 2021, decreased by $76.1 million or 16.3% to $389.5 million as compared to $465.6 million in the same period in 2020. Net sales of wind blades decreased by $83.2 million or 18.7% to $362.3 million for the three months ended December 31, 2021, as compared to $445.5 million in the same period in 2020. The fluctuating U.S. dollar against the Euro and Turkish Lira in TPI’s Turkey operations and the Chinese Renminbi in TPI’s China operations had an unfavorable impact of 1.9% on consolidated net sales for the three months ended December 31, 2021, as compared to the 2020 period. Total cost of goods sold for the three months ended December 31, 2021, was $429.5 million and included $5.0 million of costs related to lines in startup and $6.8 million of costs related to lines in transition during the period. This compares to total cost of goods sold for the three months ended December 31, 2020, of $433.3 million and included $6.0 million of costs related to lines in startup and $7.1 million of costs related to lines in transition during the period. Total cost of goods sold as a percentage of net sales increased by approximately seventeen percentage points during the three months ended December 31, 2021, as compared to the same period in 2020. General and administrative expenses for the three months ended December 31, 2021, totaled $5.4 million, or 1.4% of net sales, compared to $7.9 million, or 1.7% of net sales, for the same period in 2020. Income taxes reflected a benefit of $3.3 million for the three months ended December 31, 2021, as compared to a provision of $9.3 million for the same period in 2020. Net loss attributable to common stockholders for the three months ended December 31, 2021, was $93.3 million as compared to net income of $5.2 million in the same period in 2020. The diluted net loss per common share was $2.39 for the three months ended December 31, 2021, compared to diluted net income per common share of $0.14 for the three months ended December 31, 2020. Adjusted EBITDA for the three months ended December 31, 2021, decreased to ($28.3) million as compared to $40.8 million during the same period in 2020. Adjusted EBITDA margin decreased to (7.3%) as compared to 8.8% during the same period in 2020. Capital expenditures were $7.0 million for the three months ended December 31, 2021, as compared to $12.2 million during the same period in 2020. TPI ended the quarter with $242.2 million of unrestricted cash and cash equivalents, and net cash was $167.5 million as compared to net debt of $88.1 million as of December 31, 2020.