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TPI Composites has updated its full year financial guidance for 2019 and provided preliminary results for the first quarter of 2019. The revised full year 2019 estimated net sales and Adjusted EBITDA guidance is driven by:
  1. Asset impairments and revenue recognition associated with Senvion’s entry into insolvency self-administration proceedings. On April 17, 2019, Senvion announced that it had secured a €100 million loan to enable it to continue its self-administration process. TPI determined certain assets were impaired and adjusted the revenue recognised by the amount not probable of collection at this time, which will adversely impact Adjusted EBITDA by approximately $11 million and full year Adjusted EBITDA will be impacted by approximately $16 million. Senvion currently represents approximately 4% of their total blade production capacity globally.
  2. The plant strike in Matamoros, Mexico and resultant production delays and the projected liquidated damages that they expect to pay under one of our customer contracts  All in, the estimated impact of the lost volume, liquidated damages and compensation costs related to the settlement of the strike is expected to be approximately $25 million for the full year.
  3. TPI also announced plans to take a restructuring charge in the second quarter of approximately $12 million related to the consolidation of certain of its manufacturing facilities. TPI expects that these consolidations will enable it to more effectively and efficiently support its customers globally while reducing its costs on an annual basis by approximately $11 million.
Based primarily on the above, TPI expects to report for the first quarter and revised full year guidance as follows:
   Q1 2019  Full Year 2019
 Net Sales   ~ $300M  $1.45B to $1.5B
 Net Loss  ~ ($12.1M)  ($1.0M) to ($3.0M)
 Loss Per Share  ~ ($0.35)  ($0.03) to ($0.09)
 EBITDA  ~ ($4.1M)  $62M to $66.5M
 Adjusted EBITDA  ~  $2.9M  $80M to $85M
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