United states

TPI COMPOSITES, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(In thousands)

 

		Year ended December 31,
		2015				2014				2013
Cash flows from operating activities:
Net income (loss)		$	7,682			$	(6,648	)		$	(1,026	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Provision for doubtful accounts			—				—				28
Loss on disposal of property and equipment			185				128				93
Depreciation and amortization			11,416				7,441				5,250
Amortization of debt discount			3,016				—				—
Amortization of debt issuance costs			1,303				715				238
Loss on extinguishment of debt			—				2,946				—
Share-based compensation expense			—				—				36
Loss on investment in joint venture			2				6				5
Amortization of discount on customer advances			—				218				627
Deferred income taxes			(765	)			(1,018	)			1,095
Changes in assets and liabilities:
Accounts receivable			(29,652	)			(31,677	)			(6,434	)
Inventories			(626	)			(60,320	)			(9,752	)
Prepaid expenses and other current assets			(10,978	)			(9,225	)			(6,103	)
Other noncurrent assets			4,204				2,021				(3,694	)
Accounts payable and accrued expenses			34,423				26,050				10,831
Accrued warranty			7,680				2,180				(330	)
Customer deposits			(3,193	)			1,047				9,336
Deferred revenue			6,044				38,322				3,161
Other noncurrent liabilities			552				(5,403	)			(1,734	)
Net cash provided by (used in) operating activities			31,293				(33,217	)			1,627
Cash flows from investing activities:
Purchases of property and equipment			(26,361	)			(18,924	)			(7,065	)
Proceeds from sale of assets			146				—				—
Contribution to joint venture			—				—				(84	)
Net cash used in investing activities			(26,215	)			(18,924	)			(7,149	)
Cash flows from financing activities:
Proceeds from term loans			20,000				23,901				14,797
Repayments of term loans			(625	)			—				—
Net proceeds from (repayments of) accounts receivable financing			(2,472	)			34,450				2,183
Proceeds from working capital loans			11,690				19,120				3,393
Repayments of working capital loans			(24,262	)			(13,121	)			—
Proceeds from subordinated debt arrangements			—				15,000				—
Proceeds from (repayments of) other financing arrangements			(2,777	)			(2,130	)			40
Debt issuance costs			(1,113	)			(4,818	)			(1,154	)
Payment on acquisition of noncontrolling interest			(1,875	)			(1,625	)			(500	)
Proceeds from customer advances			—				4,500				—
Repayments of customer advances			—				—				(5,007	)
Proceeds from issuance of preferred stock			—				6,846				—
Restricted cash			(989	)			1,898				(804	)
Net cash provided by (used in) financing activities			(2,423	)			84,021				12,948
Impact of foreign exchange rates on cash and cash equivalents			(330	)			(43	)			720
Net change in cash and cash equivalents			2,325				31,837				8,146
Cash and cash equivalents, beginning of year			43,592				11,755				3,609
Cash and cash equivalents, end of year		$	45,917			$	43,592			$	11,755
Supplemental disclosures of cash flow information:
Cash paid for interest		$	9,439			$	6,343			$	2,545
Cash paid for income taxes, net			3,087				547				222
Supplemental disclosures of noncash investing and financing activities:
Accrued capital expenditures in accounts payable			1,860				1,980				3,607
Equipment acquired through capital lease and financing obligations			5,004				7,381				3,591
Note payable issued for the acquisition of noncontrolling interest			—				—				3,500
Customer advances applied to accounts receivable			1,171				2,753				—
Debt refinance and related fees			—				36,099				—

See accompanying notes to consolidated financial statements.

 

F-23

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