United states

Condensed Consolidated Statements of Cash Flows

(In thousands)

 

		Three Months Ended March 31,
		2017				2016
		(Unaudited)
Cash flows from operating activities:
Net income		$	3,545			$	1,746
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization			3,829				3,011
Share-based compensation expense			1,707				—
Amortization of debt issuance costs			143				412
Amortization of debt discount			—				755
Changes in assets and liabilities:
Accounts receivable			(28,722	)			(14,119	)
Inventories			(15,220	)			(5,274	)
Prepaid expenses and other current assets			6,816				(8,346	)
Other noncurrent assets			5,871				(2,959	)
Accounts payable and accrued expenses			11,211				6,801
Accrued warranty			1,983				14,339
Customer deposits			4,827				2,542
Deferred revenue			19,751				(493	)
Other noncurrent liabilities			197				446
Net cash provided by (used in) operating activities			15,938				(1,139	)
Cash flows from investing activities:
Purchase of property and equipment			(16,922	)			(10,888	)
Net cash used in investing activities			(16,922	)			(10,888	)
Cash flows from financing activities:
Repayment of term loan			(938	)			—
Net proceeds from (repayments of) accounts receivable financing			(1,233	)			6,800
Net proceeds from (repayments of) working capital loans			517				(4,958	)
Net repayments of other debt			(1,155	)			(1,192	)
Proceeds from customer advances			—				2,000
Restricted cash			331				(647	)
Net cash provided by (used in) financing activities			(2,478	)			2,003
Impact of foreign exchange rates on cash and cash equivalents			(63	)			(51	)
Net change in cash and cash equivalents			(3,525	)			(10,075	)
Cash and cash equivalents, beginning of year			119,066				45,917
Cash and cash equivalents, end of period		$	115,541			$	35,842
Supplemental disclosures of cash flow information:
Cash paid for interest		$	2,899			$	2,565
Cash paid for income taxes, net			4,146				1,426
Supplemental disclosures of noncash investing and financing activities:
Accrued capital expenditures in accounts payable			2,569				760

See accompanying notes to unaudited condensed consolidated financial statements.

 

F-5

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TPI COMPOSITES, INC. AND SUBSIDIARIES