GSE Holding, Inc., a leading global provider of highly engineered geosynthetic containment solutions for environmental protection and confinement applications, reported its financial results for the Company's fourth quarter and full year 2012.
Selected financial highlights for the full year 2012:GSE Holding, Inc., a leading global provider of highly engineered geosynthetic containment solutions for environmental protection and confinement applications, reported its financial results for the #
-Sales of $476.6 million vs. $464.5 million in 2011
-Gross margin of 16.3% vs. 15.2% in 2011
-Adjusted EBITDA of $45.7 million vs. $44.5 million in 2011
-Adjusted net income of $15.5 million and adjusted diluted earnings per share of $0.80 per share
-Unadjusted net income of $1.1 million and diluted earnings per share of $0.06 per share
Selected financial highlights for the fourth quarter of 2012:
-Sales of $121.4 million vs. $110.7 million in 4Q 2011
-Gross margin of 16.3% vs. 15.9% in 4Q 2011
-Adjusted EBITDA of $10.0 million vs. $8.8 million in 4Q 2011
Mark Arnold, President and Chief Executive Officer stated that "During 2012 we saw gains across most of our end-markets, and began expanding our worldwide manufacturing capabilities. Most notably, we recently announced the groundbreaking on our new manufacturing facility in China, which will allow us to more readily service the fast-growing Asian Pacific geography. In addition to this facility, we also have planned capacity additions in 2013 for our existing facilities in Thailand and Egypt, and we have completed the addition of a GCL line to our Kingstree, South Carolina plant.
“We were recently awarded a contract with an Asian engineering company for a mining application in the region. This contract is one of the largest in our Company's history and is expected to begin shipping in the second quarter of 2013. We are confident with our growth strategy and remain focused on expanding our manufacturing capabilities and market development globally."
Fourth Quarter Summary
Total revenue for the fourth quarter was $121.4 million, compared to $110.7 million for the prior year period. Strong sales in Energy, Coal Ash, and Oil and Gas helped offset a decline in our North American Environmental Containment end-market. The decline in revenue from the Environmental Containment end-market reflects the Company's continued proactive decision to not pursue low margin contracts.
Mr. Arnold continued, "The adoption of our innovative products such as our leak location liner system and our high performance geomembrane not only positively impacted our product mix during the quarter, but also reinforced our growth thesis that our customers want a total solution that helps them drive efficiencies to better manage their operations."
Gross profit increased to $19.7 million in the fourth quarter of 2012 from $17.6 million in the prior year period, resulting in gross margin for the fourth quarter of 2012 improving to 16.3% from 15.9% in the prior year period, highlighting the Company's focus on more profitable end markets and higher value products.
The fourth quarter included an income tax benefit of approximately $2.0 million or $0.10 per share representing the reversal of the beginning of year valuation allowance reserve for U.S. net operating losses, which we believe are more likely than not to be utilized.
Adjusted EBITDA improved to $10.0 million from $8.8 million in the prior year period. Adjusted Net Income in the fourth quarter was $5.3 million, or $0.26 per fully diluted share compared to a loss of $0.4 million or ($0.04) per fully diluted share in the prior year period. Unadjusted net income for the quarter was $4.8 million, or $0.24 per fully diluted share, compared to a net loss of $0.9 million, or ($0.09) per fully diluted share in the prior year period.
Full Year 2012 Summary
Total revenue for 2012 was $476.6 million, compared to $464.5 million for the prior year. Gross profit increased to $77.7 million from $70.5 million in 2011, resulting in gross margin for the full year 2012 of 16.3%, a 110 basis point improvement from 15.2% in 2011. Adjusted Net Income for 2012 was $15.5 million or $0.80 per fully diluted share up from $4.9 million or $0.41 per fully diluted share in 2011. Adjusted EBITDA in 2012 improved to $45.7 million from $44.5 million in 2011. Unadjusted net income for the full year was $1.1 million, or $0.06 per fully diluted share, compared to net income of $f $1.0 million, or $0.08 per fully diluted share in 2011.
GSE Holding, Inc
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