TPI Composites(US:TPIC)2021-05-06 20:41Financial Performance - Net sales for the three months ended March 31, 2021, were $404,680,000, a 13.5% increase from $356,636,000 in the same period in 2020[93] - Adjusted EBITDA for the three months ended March 31, 2021, was $13,095,000, compared to $1,296,000 in the same period in 2020[93] - The company reported a net loss of $1,797,000 for the three months ended March 31, 2021, compared to a net loss of $492,000 in the same period in 2020[93] - Total loss from operations improved by 79.2% to $3.2 million in Q1 2021 compared to a loss of $15.4 million in Q1 2020, with notable improvements in the U.S. and India segments[109] - Diluted net loss per share was $0.05 for the three months ended March 31, 2021, compared to $0.01 for the same period in 2020[117] Sales and Revenue Breakdown - Wind blade sales increased by 12.7% to $379,179,000, driven by an 11% increase in the number of wind blades produced[98] - Net sales in the EMEA segment increased by 26.3% to $112,366,000, while the Asia segment saw a decline of 15.6% to $76,928,000[99] - Asia segment net sales decreased by 15.6% to $76.9 million in Q1 2021 from $91.1 million in Q1 2020, primarily due to a reduction in wind blade production and the removal of five manufacturing lines in China[102] - Mexico segment total net sales increased slightly by 0.2% to $118.5 million in Q1 2021, with wind blade sales down 5.9% to $108.4 million, reflecting a 6% decrease in overall wind blade volume[103] - EMEA segment net sales increased by 26.3% to $112.4 million in Q1 2021, driven by a 25.5% increase in wind blade sales to $111.0 million, supported by a 10% increase in production at Turkey plants[105] - India segment net sales surged to $47.6 million in Q1 2021 from $10.9 million in Q1 2020, driven by ramped-up production[106] Costs and Expenses - Total cost of goods sold rose by 10.2% to $397.4 million in Q1 2021, with costs as a percentage of net sales decreasing by approximately 3 percentage points to 98.2%[107] - General and administrative expenses decreased by 6.0% to $8.9 million in Q1 2021, representing 2.2% of net sales, down from 2.7% in Q1 2020[108] - Interest expense increased by 52.7% to $2.7 million in Q1 2021, while total other expense rose significantly due to increased foreign currency losses[115] Cash Flow and Debt - Free cash flow for the three months ended March 31, 2021, was $(12,046,000), an improvement from $(24,415,000) in the same period in 2020[93] - Net cash provided by operating activities increased by $4.2 million to $6.74 million for the three months ended March 31, 2021, compared to $2.57 million in 2020[123] - Net cash used in investing activities decreased by $8.2 million to $18.79 million for the three months ended March 31, 2021, compared to $26.98 million in 2020[124] - Total debt as of March 31, 2021, was $234,270,000, an increase from $216,867,000 as of December 31, 2020[93] - Total principal amount of debt outstanding as of March 31, 2021, was $235.2 million, a decrease from $64.9 million in net borrowings in the comparable period of 2020[127] Capital Expenditures and Future Outlook - Capital expenditures for the three months ended March 31, 2021, were $18,786,000, down from $26,983,000 in the same period in 2020[93] - The company anticipates fiscal year 2021 capital expenditures of between $55 million to $65 million, with an estimated $11.8 million needed to complete current projects[124] Currency and Material Impact - A hypothetical 10% change in exchange rates would have resulted in a change to income from operations of approximately $7.7 million for the three months ended March 31, 2021[134] - A 10% change in the price of resin and resin systems would have impacted income from operations by approximately $2.4 million for the three months ended March 31, 2021[137]