United states

Operating Cash Flows

 

		Year Ended December 31,
		2016				2015				2014
		(in thousands)
Net income (loss)		$	13,842			$	7,682			$	(6,648	)
Depreciation and amortization			12,897				11,416				7,441
Other non-cash items			16,290				3,741				2,995
Changes in assets and liabilities			10,812				8,454				(37,005	)
Net cash provided by (used in) operating activities		$	53,841			$	31,293			$	(33,217	)

 

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Net cash provided by operating activities totaled $53.8 million for the year ended December 31, 2016 and was primarily the result of net income of $13.8 million, non-cash depreciation and amortization charges totaling $12.9 million and other non-cash items of $16.3 million, as well as net changes in working capital. The key components of the $10.8 million increase in working capital includes a $15.0 million increase in accounts payable and accrued expenses, a $6.3 million increase in accrued warranty, a $5.1 million decrease in accounts receivable and a $4.0 million increase in deferred revenue. This was partially offset by an $8.3 million increase in other noncurrent assets, a $7.5 million increase in customer deposits and a $5.0 million increase in inventory. The working capital changes in accounts receivable, inventory, accounts payable and accrued expenses, accrued warranty and deferred revenue are primarily the result of the material increase in and the timing of sales in the year ended December 31, 2016.

Net cash provided by operating activities totaled $31.3 million for the year ended December 31, 2015 and was primarily the result of non-cash depreciation and amortization charges totaling $11.4 million and other non-cash items of $3.7 million, as well as net income of $7.7 million and net changes in working capital. The key components of the $8.5 million increase in working capital includes a $34.4 million increase in accounts payable and accrued expenses, a $7.7 million increase in accrued warranty, a $6.0 million increase in deferred revenue and a $4.2 million decrease in other noncurrent assets. This was partially offset by a $29.7 million increase in accounts receivable, an $11.0 million increase in prepaid expenses and other current assets and a $3.2 million decrease in customer deposits. The working capital changes in accounts receivable, inventory, accounts payable, accrued warranty and accrued expenses and deferred revenue are primarily the result of the material increase in and the timing of sales in the year ended December 31, 2015.

Net cash used in operating activities totaled $33.2 million for the year ended December 31, 2014. This cash usage was primarily the result of net changes in working capital and the net loss for the year ended December 31, 2014 of $6.6 million, partly offset by non-cash depreciation and amortization of $7.4 million. The key components of the working capital changes include a $60.3 million increase in inventory, a $31.7 million increase in accounts receivable and a $9.2 million increase in prepaid expenses and other current assets, partially reduced by $38.3 million increase in deferred revenue and a $26.1 million increase in accounts payable and accrued expenses. The working capital changes in accounts receivable, inventory, accounts payable and accrued expenses and deferred revenue are primarily the result of the material increase in and the timing of sales in the year ended December 31, 2014.

Investing Cash Flows

 

		Year Ended December 31,
		2016				2015				2014
		(in thousands)
Purchase of property and equipment		$	(30,507	)		$	(26,361	)		$	(18,924	)
Proceeds from sale of assets			—				146				—
Net cash used in investing activities		$	(30,507	)		$	(26,215	)		$	(18,924	)

Net cash flows used in investing activities totaled $30.5 million, $26.2 million and $18.9 million in the years ended December 31, 2016, 2015 and 2014, respectively, driven primarily by capital expenditures for new facilities and expansion or improvements at existing facilities. The capital expenditures for the year ended December 31, 2016 primarily related to the plant build outs of three new wind blade facilities, two in Mexico and one in Turkey. The capital expenditures for the year ended December 31, 2015 primarily related to the expansion of our China and Iowa wind blade facilities. For the year ended December 31, 2014, the capital expenditures were primarily for the Turkey, Mexico and China plant build outs.

We anticipate fiscal year 2017 capital expenditures of between $75 million to $80 million. We estimate that the cost after December 31, 2016 that we will incur to complete our current projects in process is

 

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approximately $5 million. We have used and will continue to use cash flows from operations, the proceeds received from our credit facilities and the proceeds received from the issuance of stock for major projects currently being undertaken, which include new manufacturing facilities in Mexico and Turkey, as well as continued investment in our existing China and Turkey wind blade facilities.

Financing Cash Flows

 

		Year Ended December 31,
		2016				2015				2014
		(in thousands)
Proceeds from issuance of common stock sold in initial public offering, net of underwriting discount and offering costs		$	67,199			$	—			$	—
Net proceeds from (repayment of) term loans			(930	)			19,375				23,901
Net proceeds from (repayments of) accounts receivable financing			(5,385	)			(2,472	)			34,450
Net proceeds from (repayments of) working capital loans			(4,290	)			(12,572	)			5,999
Proceeds from subordinated debt arrangements			—				—				15,000
Net repayments of other debt			(4,765	)			(2,777	)			(2,130	)
Net proceeds from customer advances			—				—				4,500
Proceeds from issuance of preferred stock			—				—				6,846
Debt issuance costs			—				(1,113	)			(4,818	)
Restricted cash and other			(499	)			(2,864	)			273
Net cash provided by (used in) financing activities		$	51,330			$	(2,423	)		$	84,021

The net cash flows provided by financing activities totaled $51.3 million and $84.0 million for the years ended December 31, 2016 and 2014, respectively. Net cash flows used in financing activities for the year ended December 31, 2015 totaled $2.4 million. Net cash flows provided by financing activities for the year ended December 31, 2016 primarily reflects the net proceeds received from our initial public offering, partially offset by repayments of working capital loans and accounts receivable loans. Net cash flows used in financing activities for the year ended December 31, 2015 primarily reflects the net repayments of working capital loans and accounts receivable loans as well as payments related to the acquisition of noncontrolling interest of our Turkey operation in 2013 and additions to restricted cash. This was partially offset by additional net proceeds from term loans. The net cash flows from financing activities for the year ended December 31, 2014 was primarily comprised of additional indebtedness provided by our senior lenders, accounts receivable financings, working capital loans and subordinated debt as well as from proceeds of preferred stock offerings.