United states

 

		March 31, 2017				December 31, 2016
Property, plant and equipment, net:
U.S.		$	17,450			$	16,740
Asia (China)			27,462				26,341
Mexico			35,634				24,842
EMEA (Turkey)			22,940				23,243
Total property, plant and equipment, net		$	103,486			$	91,166

 

(1)	Revenues are attributable to countries based on the location where the product is manufactured or the services are performed.
(2)	The losses from operations in the U.S. segment includes corporate general and administrative costs of $8.3 million and $4.7 million for the three months ended March 31, 2017 and 2016, respectively.

Note 13. Subsequent Events

In April 2017, the Company entered into a multiyear supply agreement with Vestas to supply wind blades from two manufacturing lines at a new manufacturing facility that will be constructed in Matamoros, Mexico. The Company also granted Vestas an option to add additional manufacturing lines to the scope of the supply agreement. The Company expects this new manufacturing facility will commence operations in the first half of 2018 and that the wind blades produced at this manufacturing facility will primarily serve wind markets in Mexico, Central America and South America.

 

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TPI COMPOSITES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements

 

In April 2017, the Company amended its Restated Credit Facility to increase the letter of credit sub-facility from $15.0 million to $20.0 million.

 

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Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders

TPI Composites, Inc.:

We have audited the accompanying consolidated balance sheets of TPI Composites, Inc. and subsidiaries (“Company”) as of December 31, 2016 and 2015, and the related consolidated statements of operations, comprehensive income (loss), shareholders’ equity (deficit), and cash flows for each of the years in the three-year period ended December 31, 2016. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of TPI Composites, Inc. and subsidiaries as of December 31, 2016 and 2015, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2016, in conformity with U.S. generally accepted accounting principles.

/s/ KPMG LLP

Phoenix, Arizona

March 17, 2017

 

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TPI COMPOSITES, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(In thousands, except par value data)

 

		December 31,
		2016				2015
Assets
Current assets:
Cash and cash equivalents		$	119,066			$	45,917
Restricted cash			2,259				1,760
Accounts receivable (Note 3)			67,842				72,913
Inventories			53,095				50,841
Inventories held for customer orders			52,308				49,594
Prepaid expenses and other current assets			30,657				31,337
Total current assets			325,227				252,362
Property, plant, and equipment, net			91,166				67,732
Goodwill			2,807				2,807
Intangible assets, net			265				419
Other noncurrent assets			17,741				6,600
Total assets		$	437,206			$	329,920
Liabilities and Shareholders’ Equity (Deficit)
Current liabilities:
Accounts payable and accrued expenses		$	112,281			$	101,108
Accrued warranty			19,912				13,596
Deferred revenue (Note 3)			69,568				65,520
Customer deposits and customer advances			1,390				8,905
Current maturities of long-term debt			33,403				52,065
Total current liabilities			236,554				241,194
Long-term debt, net of debt issuance costs, discount and current maturities			89,752				77,281
Other noncurrent liabilities			4,393				3,812
Total liabilities			330,699				322,287
Commitments and contingencies (Note 15)
Convertible and senior redeemable preferred shares and warrants (Note 3)			—				198,830
Shareholders’ equity (deficit): (Note 3)
Preferred shares, $0.01 par value, 5,500 shares authorized, no shares issued or outstanding at December 31, 2016; no shares authorized, issued or outstanding at December 31, 2015			—				—
Common shares, $0.01 par value, 100,000 shares authorized and 33,737 shares issued and outstanding at December 31, 2016; 31,104 shares authorized and 4,238 shares issued and outstanding at December 31, 2015			337				—
Paid-in capital			292,833				—
Accumulated other comprehensive loss			(3,862	)			(25	)
Accumulated deficit			(182,801	)			(191,172	)
Total shareholders’ equity (deficit)			106,507				(191,197	)
Total liabilities and shareholders’ equity (deficit)		$	437,206			$	329,920

See accompanying notes to consolidated financial statements.

 

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