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Global Power Equipment Group Inc. Reports Earnings for the Three and Nine Months Ended September 30, 2009

TULSA, Okla., Nov. 30 /PRNewswire-FirstCall/ -- Global Power Equipment Group Inc. (Pink Sheets: GLPW) ("Global Power") today published its unaudited financial results for the three and nine months ended September 30, 2009. These results are available for review at www.pinksheets.com under the ticker symbol GLPW, and on the Company's website at www.globalpower.com.

For the three months ended September 30, 2009, the Company reported revenues of $95.8 million and net income of $1.8 million, or $0.01 per diluted common share. Revenues for the three months ended September 30, 2008 were $129.9 million and a net income of $17.0 million, or $0.12 per diluted common share. For the nine months ended September 30, 2009, the Company reported revenues of $377.6 million and net income of $31.9 million, or $0.23 per diluted share. Revenues for the nine months ended September 30, 2008 were $398.6 million and net income of $24.6 million, which included $25.8 million of reorganization expenses, or $0.19 per diluted share.

"We are clearly disappointed in the quarterly earnings which were negatively impacted by a significant cost overrun on a contract in our Products Division," stated David Keller, Global Power's President and Chief Executive Officer. "On a positive note, our Services Division completed another solid quarter and increased their backlog by $41.6 million, up 26.2%. In addition, we increased our overall cash position by $14.1 million during the quarter, to a total of $97.7 million. The strength of our balance sheet confers major operating advantages and positions us to consider a broad range of strategic alternatives to create shareholder value."

The Company's gross profit for the three and nine months ended September 30, 2009, totaled $14.0 and $68.1 million representing 14.7 and 18.0 percent gross margin compared to gross profit of $25.8 and $71.8 million, or 19.8 and 18.0 percent gross margin, for the three and nine months ended September 30, 2008. EBITDAR (earnings before interest, taxes, depreciation and amortization and reorganization expense) from continuing operations was $4.3 and $36.3 million for the three and nine months ended September 30, 2009, as compared to $16.0 and $44.2 million for the three and nine months ended September 30, 2008. EBITDAR is a non-GAAP financial measure. A reconciliation of our net income to EBITDAR is included in the schedules attached to this press release.

Interest expense for the three and nine months ended September 30, 2009, was $2.4 and $7.2 million, respectively. For the three and nine months ended September 30, 2008, interest expense was $2.8 and $8.6 million, respectively. As of September 30, 2009, the Company had no draws under its revolving credit facility.

At September 30, 2009, the Company's backlog totaled $322.6 million compared to $288.0 million at June 30, 2009 and $376.8 million as of September 30, 2008. In addition, the Company had cash and cash equivalents of $97.7 million at September 30, 2009.

The Company will host a conference call on Tuesday, December 1, 2009 at 1:00 PM CT. The numbers to call for this teleconference are: within the United States and Canada (800) 870-4027, outside North America (213) 416-2975. A playback of the call will be available from 4:00 PM CT on December 1, 2009 through midnight CT on December 15, 2009, by calling: within North America (800) 675-9924, outside North America (213) 416-2185. The replay ID code is 12109.

About Global Power

Oklahoma based Global Power Equipment Group Inc. is a leading design, engineering and manufacturing firm providing a broad array of equipment and services to the global power infrastructure, energy and process industries. Through its Global Power Services Division, the Company is a leading provider of on-site specialty support and outage management services for commercial nuclear reactors in the United States and provides maintenance services to fossil and hydroelectric power plants and other industrial operations. Through its Global Power Products Division the Company designs, engineers and manufactures a comprehensive portfolio of equipment for gas turbine power plants and power-related equipment for industrial operations, with over 40 years of power generation industry experience. With a strong competitive position in its product lines, the Company benefits from a large installed base of equipment in domestic and international markets. Additional information about Global Power Equipment Group may be found at www.globalpower.com.

Forward-looking Statement Disclaimer

Statements contained in this release regarding the Company's or management's intentions, beliefs, expectations, or predictions for the future, including, but not limited to, those regarding anticipated operating results and the publication of any such results, are forward-looking statements within the meaning of U.S. federal securities laws and are subject to a number of known and unknown risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected, including the effects of the current financial turmoil and the associated global recession, decreased demand for new gas turbine power plants, the loss of any of our major customers, the cancellation of projects, project cost overruns, including increases in prices for energy or for materials such as steel, and unforeseen schedule delays, competition for the sale of our products or services, poor performance by our subcontractors, warranty and product liability claims and changes in the economic, social and political conditions in the United States and other countries in which we operate, including fluctuations in foreign currency exchange rates and the banking environment and monetary policy. The Company assumes no obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise.

The table below represents the operating results of the Company for the periods indicated:


GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)

                      Three Months Ended             Nine Months Ended
                         September 30,                 September 30,
                         -------------                 -------------
                       2009          2008           2009          2008
                       ----          ----           ----          ----
                          (Unaudited)                   (Unaudited)

Products
 revenue            $38,272       $78,718       $153,692      $220,905
Services
 revenue             57,512        51,198        223,871       177,670
                     ------        ------        -------       -------
    Total
     revenues        95,784       129,916        377,563       398,575

Cost of
 products
 revenue             30,811        59,086        110,925       170,224
Cost of
 services
 revenue             50,950        45,068        198,583       156,542
                     ------        ------        -------       -------
    Cost of
     revenues        81,761       104,154        309,508       326,766
                     ------       -------        -------       -------
Gross profit         14,023        25,762         68,055        71,809

Selling and
 administrative
 expenses            10,936        10,745         34,812        30,546
                     ------        ------         ------        ------
    Operating
     income           3,087        15,017         33,243        41,263

Interest
 expense              2,412         2,790          7,242         8,644
Reorganization
 expense                192           666            295        25,807
Income tax
 expense (benefit)     (530)         (176)         1,975           702
                       ----          ----          -----           ---
  Income from
   continuing
   operations         1,013        11,737         23,731         6,110

Discontinued
 operations:
  Income (loss) from
   discontinued
   operations,
   net of tax        (1,709)        5,260          5,640        18,501
  Gain on
   disposal,
   net of tax         2,535             -          2,535             -
                      -----           ---          -----           ---
  Net income         $1,839       $16,997        $31,906       $24,611
                     ======       =======        =======       =======
Basic earnings
 per weighted
 average common
 share:
  Income from
   continuing
   operations         $0.01         $0.09          $0.17         $0.05
  Income from
   discontinued
   operations             -          0.04           0.06          0.14
                        ---          ----           ----          ----
    Income per
     common share
     - basic          $0.01         $0.13          $0.23         $0.19
                      =====         =====          =====         =====
  Weighted
   average number
   of shares of
   common stock
   outstanding -
   basic        136,406,184   134,586,541    135,922,144   127,503,374
                ===========   ===========    ===========   ===========
Dilutive
 earnings per
 weighted average
 common share:
  Income from
   continuing
   operations         $0.01         $0.09          $0.17         $0.05
  Income from
   discontinued
   operations             -          0.03           0.06          0.14
                        ---          ----           ----          ----
    Income per
     common share
     - diluted        $0.01         $0.12          $0.23         $0.19
                      =====         =====          =====         =====
  Weighted
   average
   number of
   shares of
   common stock
   outstanding
   - diluted    141,662,554   137,421,671    138,445,435   130,054,940
                ===========   ===========    ===========   ===========


GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES
SUPPLEMENTAL STATISTICAL INFORMATION
(in thousands)
                                 Three Months Ended    Nine Months Ended
                                     September 30,       September 30,
                                     ------------        ------------
                                    2009      2008      2009      2008
                                    ----      ----      ----      ----
                                      (unaudited)         (unaudited)
Income from continuing
 operations                       $1,013   $11,737   $23,731    $6,110
  Add back:
  Income tax provision
   (benefit)                       (530)     (176)     1,975       702
  Interest expense                 2,412     2,790     7,242     8,644
  Change in fair value
   of foreign exchange
   contracts                         474         -       249         -
  Depreciation and
   amortization                      765       974     2,821     2,924
  Reorganization items               192       666       295    25,807
                                     ---       ---       ---    ------
EBITDAR from continuing
 operations (a)                   $4,326   $15,991   $36,313   $44,187
                                  ======   =======   =======   =======

(a) EBITDAR from continuing operations represents net income plus income
    taxes, interest, reorganization items, depreciation and amortization.
    While considered the most common definition used by investors and
    financial analysts, the EBITDAR presented above may not be comparable
    to similarly titled measures reported by other companies.  The
    Company believes that EBITDAR, while providing useful information,
    should not be considered in isolation or as an alternative to other
    financial measures determined under GAAP.


GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES
HIGHLIGHTS FROM CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
                                          September 30,   December 31,
                                              2009            2008
                                              ----            ----
ASSETS                                     (unaudited)
Current assets:
  Cash and cash equivalents                 $97,694         $57,633
  Accounts receivable,
   net of allowance                          50,128          55,953
  Inventories                                 4,887           4,963
  Costs and estimated
   earnings in excess of billings            38,757          55,922
  Other current assets                       11,562          10,329
                                             ------          ------
    Total current assets                    203,028         184,800

Property, plant and equipment, net           13,127          12,610
Other long-term assets                      102,966         103,629
                                            -------         -------
    Total assets                           $319,121        $301,039
                                           ========        ========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Current maturities of long-term debt       $5,000         $19,675
  Accounts payable and accrued
   liabilities                               40,083          30,640
  Billings in excess of costs and
   estimated earnings                        32,237          36,728
  Deferred revenue                            4,590           8,695
  Other current liabilities                  20,416          19,394
                                             ------          ------
    Total current liabilities               102,326         115,132

Long-term deferred tax liability             11,100          11,100
Other long-term liabilities                   3,636           3,605
Long-term debt, net of
 current maturities                          61,575          65,325
Liabilities subject
 to compromise                                  335             604

   Total stockholders' equity               140,149         105,273
                                            -------         -------

   Total liabilities and stockholders'
    equity                                 $319,121        $301,039
                                           ========        ========


GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES
HIGHLIGHTS FROM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

                                          Nine Months Ended September 30,
                                          -------------------------------
                                               2009          2008 (a)
                                          ------------     --------------
                                                   (Unaudited)

Net cash provided by (used in) operating
 activities                                 $58,529        $(149,972)

Net cash used in investing activities        (1,352)          (2,292)

Net cash provided by (used in) financing
 activities                                 (18,490)         132,127

Effect of exchange rate changes on cash       1,374             (500)
                                              -----             ----
    Net change in cash and cash
     equivalents                            $40,061         $(20,637)
                                            =======         ========

(a) For the nine months ended September 30, 2008, cash flows from operating activities include payment of allowed claims pursuant to the Plan of Reorganization in addition to general working capital requirements. Cash provided by financing activities for the nine months ended September 30, 2008 was comprised of proceeds from the Rights Offering and proceeds from the Exit Credit Facility, a portion of which was offset by a decrease in amounts due on the Debtor-in-Possession Facility which was paid in full upon emergence.


Company Contact:
----------------
Candice Cheeseman
Vice President of Administration and General Counsel
Global Power Equipment Group Inc.
(918) 488-0828

SOURCE Global Power Equipment Group Inc.