TPI Composites, Inc. Releases Fourth Quarter and Full Year 2020 Earnings Results – Double Digit Full Year Net Sales Growth

March 01 (2021

TPI Composites, Inc. reported financial results for the fourth quarter and full year ended December 31, 2020.

Highlights

For the quarter ended December 31, 2020:

• Net sales of $465.6 million
• Net income of $5.2 million or $0.14 per diluted share
• EBITDA of $30.5 million
• Adjusted EBITDA of $40.8 million

For the full year 2020:

• Net sales of $1,670.1 million
• Net loss of $19.0 million or $0.54 per diluted share
• EBITDA of $52.3 million
• Adjusted EBITDA of $94.5 million

Fourth Quarter 2020 Financial Results

Net sales for the three months ended December 31, 2020 increased by $43.5 million or 10.3% to $465.6 million compared to $422.1 million in the same period in 2019. Net sales of wind blades increased by $47.7 million or 12.0% to $445.5 million for the three months ended December 31, 2020 as compared to $397.8 million in the same period in 2019.

Total cost of goods sold for the three months ended December 31, 2020 was $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 quarter. This compares to total cost of goods sold for the three months ended December 31, 2019 of $391.3 million and included $4.6 million of costs related to lines in startup and $0.2 million of costs related to lines in transition during the quarter. Total cost of goods sold as a percentage of net sales remained relatively consistent during the three months ended December 31, 2020 as compared to the same period in 2019.

General and administrative expenses for the three months ended December 31, 2020 totaled $7.8 million, or 1.7% of net sales, compared to $12.1 million, or 2.9% of net sales, for the same period in 2019.

Income taxes reflected a provision of $9.3 million for the three months ended December 31, 2020 as compared to a provision of $8.4 million for the same period in 2019.

Net income for the three months ended December 31, 2020 was $5.2 million as compared to a net loss of $0.9 million in the same period in 2019. Adjusted EBITDA for the three months ended December 31, 2020 increased to $40.8 million compared to $32.0 million during the same period in 2019. Adjusted EBITDA margin increased to 8.8% compared to 7.6% during the same period in 2019.

Capital expenditures were $12.2 million for the three months ended December 31, 2020 compared to $15.3 million during the same period in 2019.

TPI Composites ended the quarter with $129.9 million of cash and cash equivalents, and net debt was $88.1 million as compared to $71.8 million at December 31, 2019. We provided $3.7 million of cash from operating activities and had negative free cash flow of $8.5 million during the three months ended December 31, 2020.

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