United states

Trade accounts receivable from certain customers in excess of 10 percent of total consolidated Company trade accounts receivable at December 31 are as follows:

 

		2016				2015
Customer			% of Total				% of Total
Customer 1 - GE			24.9%				26.5%
Customer 2 - Vestas			26.2%				27.9%
Customer 3 - Nordex/Acciona			26.8%				39.3%
Customer 4 - Gamesa			16.2%				4.1%

Note 19. Segment Reporting

FASB ASC Topic 280, Segment Reporting , establishes standards for the manner in which companies report financial information about operating segments, products, services, geographic areas and major customers. In managing the Company’s business, management focuses on growing its revenues and earnings in select geographic areas serving primarily the wind energy market. The Company has operations in the United States, China, Turkey and Mexico. The Company’s operating segments are defined geographically as the United States, Asia, EMEA and Mexico. Financial results are aggregated into four reportable segments based on quantitative thresholds. All of the Company’s segments operate in their local currency except for the Mexico and Asia segments, which both include a U.S. parent company.

 

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TPI COMPOSITES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

 

The following tables set forth certain information regarding each of the Company’s segments for the years ended December 31 (in thousands):

 

		2016				2015				2014
Net sales by segment:
U.S.		$	190,092			$	149,614			$	145,691
Asia			301,893				206,779				79,325
Mexico			129,756				97,912				28,725
EMEA			133,136				131,547				67,006
Total net sales		$	754,877			$	585,852			$	320,747
Net sales by geographic location (1):
United States		$	190,092			$	149,614			$	145,691
China			301,893				206,779				79,325
Mexico			129,756				97,912				28,725
Turkey			133,136				131,547				67,006
Total net sales		$	754,877			$	585,852			$	320,747
Depreciation and amortization:
U.S.		$	3,336			$	3,477			$	3,342
Asia			4,534				4,181				1,899
Mexico			2,328				1,533				517
EMEA			2,699				2,225				1,683
Total depreciation and amortization		$	12,897			$	11,416			$	7,441
Capital expenditures:
U.S.		$	4,056			$	5,379			$	808
Asia			3,287				15,632				8,903
Mexico			5,565				2,897				4,424
EMEA			17,599				2,453				4,789
Total capital expenditures		$	30,507			$	26,361			$	18,924
Income (loss) from operations:
U.S.		$	(25,099	)		$	(13,405	)		$	(1,199	)
Asia			64,393				34,998				14,771
Mexico			9,546				7,531				(6,567	)
EMEA			(5,727	)			(1,505	)			(1,528	)
Total income from operations		$	43,113			$	27,619			$	5,477
Tangible long-lived assets:
U.S.		$	16,740			$	13,805
Asia (China)			26,341				29,957
Mexico			24,842				12,600
EMEA (Turkey)			23,243				11,370
Total tangible long-lived assets		$	91,166			$	67,732
Total assets:
U.S.		$	115,213			$	116,893
Asia			172,315				92,804
Mexico			68,231				48,002
EMEA			81,447				72,221
Total assets		$	437,206			$	329,920

 

(1)

Net sales are attributable to countries based on the location where the product is manufactured or the services are performed. In 2015, the total assets of the parent company of Asia were included in the U.S. segment’s total assets, whereas in 2016, their total assets are included in the Asia segment’s total assets.

 

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TPI COMPOSITES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

 

Note 20. Selected Quarterly Financial Data (Unaudited)

The following tables set forth certain unaudited financial information for each quarter of 2016 and 2015. The unaudited quarterly information includes all normal recurring adjustments that, in the opinion of management, are necessary for the fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of the results for any future period. The unaudited quarterly results are as follows (in thousands, except per share data):

 

		2016
		First Quarter				Second Quarter				Third Quarter				Fourth Quarter
Net sales		$	176,110			$	194,255			$	198,938			$	185,574
Income from operations			8,189				17,478				8,137				9,309
Net income (loss)			1,746				11,555				2,797				(2,256	)
Net income (loss) attributable to common shareholders			(691	)			9,117				2,201				(2,256	)
Net income (loss) per common share:
Basic		$	(0.16	)		$	2.15			$	0.08			$	(0.07	)
Diluted		$	(0.16	)		$	2.15			$	0.08			$	(0.07	)
		2015
		First Quarter				Second Quarter				Third Quarter				Fourth Quarter
Net sales		$	95,589			$	149,739			$	161,578			$	178,946
Income (loss) from operations			(2,657	)			9,251				4,412				16,613
Net income (loss)			(5,737	)			4,090				(2,147	)			11,476
Net income (loss) attributable to common shareholders			(8,093	)			1,734				(4,502	)			9,120
Net income (loss) per common share:
Basic		$	(1.91	)		$	0.41			$	(1.06	)		$	2.15
Diluted		$	(1.91	)		$	0.41			$	(1.06	)		$	2.15

Note 21. Subsequent Events

In February 2017, the Company entered into a credit agreement with a Chinese financial institution to provide an unsecured credit line of up to 150.0 million Renminbi (approximately $21.6 million as of December 31, 2016), which can be used for the purpose of domestic and foreign currency loans, issuing letters of guarantee or other transactions approved by the lender. Interest on the credit line accrues at the LIBOR rate plus an applicable margin and can be paid monthly, quarterly or at the time of the debt’s maturity (February 23, 2018).

 

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4,500,000 Shares

 
Common Stock

 

 

PROSPECTUS

 

 

J.P. Morgan		Morgan Stanley

 

Cowen and Company		Raymond James		Canaccord Genuity

 

 

 

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