TPI Composites Inc.
09/16/2025 | Press release | Distributed by Public on 09/16/2025 12:16
UNAUDITED PRO FORMA FINANCIAL INFORMATION (Form 8-K)
UNAUDITED PRO FORMA FINANCIAL INFORMATION
On September 10, 2025, TPI Composites, Inc. ("TPIC" or the "Company") completed the sale and transfer of the Company's ownership interests in two of the Company's subsidiaries, TPI Kompozit Kanat Sanayi ve Ticaret Anonim Şirketi ("TPI Kompozit 1") and TPI Kompozit Kanat 2 Üretim Sanayi ve Ticaret Limited Şirketi ("TPI Kompozit 2" and together, "TPI Türkiye"). The transaction involved the sale and transfer of the assets and operations of two wind blade manufacturing facilities and a field service inspection and repair business in Izmir, Türkiye on an "as-is" basis, including the assumption of the entire liability and debt position of TPI Türkiye (the "Transaction"). TPI Türkiye comprised the majority of the Company's EMEA segment.
The following unaudited pro forma financial information of the Company, as of and for the six months ended June 30, 2025 and for the years ended December 31, 2024 and 2023, has been prepared for informational purposes only and does not purport to be indicative of what would have resulted had the sale and transfer occurred on the date indicated or what may result in the future. The unaudited pro forma consolidated balance sheet assumes the sale and transfer closed on June 30, 2025. The unaudited pro forma consolidated statements of operations for the six months ended June 30, 2025, and for the years ended December 31, 2024 and 2023, assumes the sale and transfer closed on January 1, 2023. The unaudited pro forma financial information of the Company reflects the removal of the assets and liabilities of TPI Türkiye and its results of operations, which contains a gain resulting from the Transaction. The pro forma gain resulting from the Transaction is preliminary. Therefore, the actual results may differ from the amounts reflected in the pro forma financial statements.
The unaudited pro forma condensed consolidated financial statements, prepared in accordance with Article 11 of Regulation S-X, are for informational purposes only and are not intended to be a complete presentation of the Company's results of operations or financial position had the Transaction occurred as of and for the periods indicated, nor do they purport to project results of operations or financial position for any future period or as of any future date.
TPI COMPOSITES, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
June 30, 2025
(in thousands, except par value data)
| Historical | Pro Forma | |||||||||||||||||
| TPI Composites, Inc. (A) | TPI Türkiye (B) | Adjustments (C) | TPI Composites, Inc. | |||||||||||||||
| Assets | ||||||||||||||||||
| Current assets: | ||||||||||||||||||
| Cash and cash equivalents | $ | 106,419 | $ | 21,773 | $ | - | $ | 84,646 | ||||||||||
| Restricted cash | 9,798 | - | 9,798 | |||||||||||||||
| Accounts receivable | 69,053 | 18,823 | 50,230 | |||||||||||||||
| Contract assets | 83,725 | 32,334 | 51,391 | |||||||||||||||
| Prepaid expenses | 17,800 | 4,287 | 13,513 | |||||||||||||||
| Other current assets | 38,704 | 6,350 | 32,354 | |||||||||||||||
| Inventories | 4,099 | 287 | 3,812 | |||||||||||||||
| Assets held for sale | 18,095 | 17,991 | 104 | |||||||||||||||
| Current assets of discontinued operations | 975 | - | 975 | |||||||||||||||
| Total current assets | 348,668 | 101,845 | - | 246,823 | ||||||||||||||
| Property, plant and equipment, net | 88,974 | 15,921 | 73,053 | |||||||||||||||
| Operating lease right of use assets | 112,728 | 21,228 | 91,500 | |||||||||||||||
| Other noncurrent assets | 41,339 | 2,468 | 38,871 | |||||||||||||||
| Total assets | $ | 591,709 | $ | 141,462 | $ | - | $ | 450,247 | ||||||||||
| Liabilities and Stockholders' Deficit | ||||||||||||||||||
| Current liabilities: | ||||||||||||||||||
| Accounts payable and accrued expenses | $ | 267,185 | 59,132 | $ | 208,053 | |||||||||||||
| Accrued warranty | 44,812 | 3,970 | 40,842 | |||||||||||||||
| Current maturities of long-term debt | 615,878 | 86,074 | 8,000 | (C)(iv) | 537,804 | |||||||||||||
| Current operating lease liabilities | 27,347 | 8,216 | 19,131 | |||||||||||||||
| Contract liabilities | 25,077 | 3,192 | 21,885 | |||||||||||||||
| Current liabilities of discontinued operations | 713 | - | 713 | |||||||||||||||
| Total current liabilities | 981,012 | 160,584 | 8,000 | 828,428 | ||||||||||||||
| Long-term debt, net of current maturities | - | - | - | |||||||||||||||
| Noncurrent operating lease liabilities | 88,502 | 12,911 | 75,591 | |||||||||||||||
| Other noncurrent liabilities | 7,632 | 1,044 | 6,588 | |||||||||||||||
| Total liabilities | 1,077,146 | 174,539 | 8,000 | 910,607 | ||||||||||||||
| Commitments and contingencies (Note 15) | ||||||||||||||||||
| Stockholders' deficit: | ||||||||||||||||||
| Common shares, $0.01 par value, 100,000 shares authorized, 50,319 shares issued and 48,730 shares outstanding at June 30, 2025 and 100,000 shares authorized, 48,683 shares issued and 47,609 shares outstanding at December 31, 2024 | 503 | - | 503 | |||||||||||||||
| Paid-in capital | 439,756 | 27,023 | 27,023 | 439,756 | ||||||||||||||
| Accumulated other comprehensive loss | (19,554 | ) | (15,639 | ) | (3,915 | ) | ||||||||||||
| Accumulated deficit | (893,595 | ) | (44,461 | ) | 9,438 | (C)(i) | (884,157 | ) | ||||||||||
| (44,461 | ) | (C)(ii)(iii) | ||||||||||||||||
| Treasury stock, at cost, 1,589 shares at June 30, 2025 and 1,074 shares at December 31, 2024 | (12,547 | ) | - | (12,547 | ) | |||||||||||||
| Total stockholders' deficit | (485,437 | ) | (33,077 | ) | (8,000 | ) | (460,360 | ) | ||||||||||
| Total liabilities and stockholders' deficit | $ | 591,709 | $ | 141,462 | $ | - | $ | 450,247 | ||||||||||
See accompanying notes.
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
| (A) | Represents the historical consolidated balance sheet of TPI Composites, Inc. as of June 30, 2025, as reported in its Quarterly Report on Form 10-Q, filed on August 11, 2025. |
| (B) | Represents the removal of the historical balance sheet of TPI Türkiye as of June 30, 2025. |
| (C) | Represents adjustments for TPI Composites, Inc.'s sale and transfer of TPI Türkiye as of June 30, 2025, which includes (i) an adjustment for the estimated non-cash gain on the sale of TPI Türkiye, (ii) an adjustment for the release of certain outstanding intercompany agreements between the Company and TPI Türkiye, (iii) an adjustment for certain TPI Türkiye historical warranty obligations that are excluded from the Transaction, and (iv) an adjustment for the intercompany loan receivable between TPI Kompozit 1 and the Company's subsidiary TPI Composites India Private Limited, which is excluded from the Transaction. |
TPI COMPOSITES, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
For the six months ended June 30, 2025
(in thousands, except par value data)
| Historical | Pro Forma | |||||||||||||||
| TPI Composites, Inc. (A) | TPI Türkiye (B) | Adjustments (C) | TPI Composites, Inc. | |||||||||||||
| Net sales | $ | 612,402 | $ | 134,678 | $ | $ | 477,724 | |||||||||
| Cost of sales | 638,330 | 131,848 | 506,482 | |||||||||||||
| Startup and transition costs | 17,032 | - | 17,032 | |||||||||||||
| Total cost of goods sold | 655,362 | 131,848 | 523,514 | |||||||||||||
| Gross profit (loss) | (42,960 | ) | 2,830 | (45,790 | ) | |||||||||||
| General and administrative expenses | 10,470 | - | 10,470 | |||||||||||||
| Loss on sale of assets and asset impairments | 8,283 | 949 | 7,334 | |||||||||||||
| Restructuring charges, net | 485 | - | 485 | |||||||||||||
| Income (loss) from continuing operations | (62,198 | ) | 1,881 | (64,079 | ) | |||||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense, net | (48,822) | (5,194 | ) | (43,628 | ) | |||||||||||
| Foreign currency (loss) income | (7,158) | (2,981 | ) | (4,177 | ) | |||||||||||
| Miscellaneous (expense) income | 1,050 | (1,011 | ) | 2,061 | ||||||||||||
| Total other expense | (54,930 | ) | (9,186 | ) | (45,744 | ) | ||||||||||
| Loss from continuing operations before income taxes | (117,128 | ) | (7,305 | ) | (109,823 | ) | ||||||||||
| Income tax benefit (provision) | 262 | 311 | (49 | ) | ||||||||||||
| Net loss from continuing operations | (116,866 | ) | (6,994 | ) | (109,872 | ) | ||||||||||
| Net income from discontinued operations | 326 | - | 326 | |||||||||||||
| Net loss attributable to common stockholders | $ | (116,540 | ) | $ | (6,994 | ) | $ | $ | (109,546 | ) | ||||||
| Weighted-average shares of common stock outstanding: | ||||||||||||||||
| Basic | 48,343 | 48,343 | ||||||||||||||
| Diluted | 48,343 | 48,343 | ||||||||||||||
| Net loss from continuing operations per common share: | ||||||||||||||||
| Basic | $ | (2.42) | $ | (2.27 | ) | |||||||||||
| Diluted | $ | (2.42) | $ | (2.27 | ) | |||||||||||
| Net income from discontinued operations per common share: | ||||||||||||||||
| Basic | $ | 0.01 | $ | 0.01 | ||||||||||||
| Diluted | $ | 0.01 | $ | 0.01 | ||||||||||||
| Net loss per common share: | ||||||||||||||||
| Basic | $ | (2.41) | $ | (2.26 | ) | |||||||||||
| Diluted | $ | (2.41) | $ | (2.26 | ) | |||||||||||
See accompanying notes.
TPI COMPOSITES, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
For the year ended December 31, 2024
(in thousands, except par value data)
| Historical | Pro Forma | |||||||||||||||
| TPI Composites, Inc. (A) | TPI Türkiye (B) | Adjustments (C) | TPI Composites, Inc. | |||||||||||||
| Net sales | $ | 1,331,131 | $ | 441,140 | $ | $ | 889,991 | |||||||||
| Cost of sales | 1,331,241 | 387,600 | 943,641 | |||||||||||||
| Startup and transition costs | 52,889 | 11,153 | 41,736 | |||||||||||||
| Total cost of goods sold | 1,384,130 | 398,753 | 985,377 | |||||||||||||
| Gross profit (loss) | (52,999 | ) | 42,387 | (95,386) | ||||||||||||
| General and administrative expenses | 27,536 | 23 | 27,513 | |||||||||||||
| Loss on sale of assets and asset impairments | 17,230 | 2,145 | 15,085 | |||||||||||||
| Restructuring charges, net | 10,950 | 9,631 | 1,319 | |||||||||||||
| Income (loss) from continuing operations | (108,715 | ) | 30,588 | (139,303) | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense, net | (92,420 | ) | (7,701 | ) | (84,719) | |||||||||||
| Foreign currency (loss) income | (1,655 | ) | (1,038 | ) | (617) | |||||||||||
| Miscellaneous (expense) income | 5,220 | 159 | 5,061 | |||||||||||||
| Total other expense | (88,855 | ) | (8,580 | ) | (80,275) | |||||||||||
| Income (loss) from continuing operations before income taxes | (197,570 | ) | 22,008 | (219,578) | ||||||||||||
| Income tax provision | (12,550 | ) | (2,253 | ) | (10,297) | |||||||||||
| Net income (loss) from continuing operations | (210,120 | ) | 19,755 | (229,875) | ||||||||||||
| Net loss from discontinued operations | (30,587 | ) | - | (30,587) | ||||||||||||
| Net income (loss) attributable to common stockholders | $ | (240,707 | ) | $ | 19,755 | $ | $ | (260,462) | ||||||||
| Weighted-average shares of common stock outstanding: | ||||||||||||||||
| Basic | 47,462 | 47,462 | ||||||||||||||
| Diluted | 47,462 | 47,462 | ||||||||||||||
| Net loss from continuing operations per common share: | ||||||||||||||||
| Basic | $ | (4.43 | ) | $ | (4.84) | |||||||||||
| Diluted | $ | (4.43 | ) | $ | (4.84) | |||||||||||
| Net loss from discontinued operations per common share: | ||||||||||||||||
| Basic | $ | (0.64 | ) | $ | (0.64) | |||||||||||
| Diluted | $ | (0.64 | ) | $ | (0.64) | |||||||||||
| Net loss per common share: | ||||||||||||||||
| Basic | $ | (5.07 | ) | $ | (5.48) | |||||||||||
| Diluted | $ | (5.07 | ) | $ | (5.48) | |||||||||||
See accompanying notes.
TPI COMPOSITES, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
For the year ended December 31, 2023
(in thousands, except par value data)
| Historical | Pro Forma | |||||||||||||||
| TPI Composites, Inc. (A) | TPI Türkiye (B) | Adjustments (C) | TPI Composites, Inc. | |||||||||||||
| Net sales | $ | 1,432,408 | $ | 568,489 | $ | $ | 863,919 | |||||||||
| Cost of sales | 1,474,356 | 497,749 | 976,607 | |||||||||||||
| Startup and transition costs | 21,757 | - | 21,757 | |||||||||||||
| Total cost of goods sold | 1,496,113 | 497,749 | - | 998,364 | ||||||||||||
| Gross profit (loss) | (63,705 | ) | 70,740 | - | (134,445 | ) | ||||||||||
| General and administrative expenses | 28,205 | - | 28,205 | |||||||||||||
| Loss on sale of assets and asset impairments | 20,931 | 5,558 | 15,373 | |||||||||||||
| Restructuring charges, net | 4,130 | 4,090 | 40 | |||||||||||||
| Gain on sale of business | - | - | (9,438 | ) | (9,438 | ) | ||||||||||
| Income (loss) from continuing operations | (116,971 | ) | 61,092 | 9,438 | (168,625 | ) | ||||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense, net | (12,101 | ) | (5,575 | ) | (6,526 | ) | ||||||||||
| Foreign currency (loss) income | (5,122 | ) | (4,829 | ) | (293 | ) | ||||||||||
| Miscellaneous (expense) income | 1,892 | 136 | 1,756 | |||||||||||||
| Total other expense | (15,331 | ) | (10,268 | ) | - | (5,063 | ) | |||||||||
| Income (loss) from continuing operations before income taxes | (132,302 | ) | 50,824 | 9,438 | (173,688 | ) | ||||||||||
| Income tax provision | (19,664 | ) | (5,244 | ) | (14,420 | ) | ||||||||||
| Net income (loss) from continuing operations | (151,966 | ) | 45,580 | 9,438 | (188,108 | ) | ||||||||||
| Preferred stock dividends and accretion | (58,453 | ) | - | (58,453 | ) | |||||||||||
| Gain on extinguishment of Series A Preferred Stock | 82,620 | - | 82,620 | |||||||||||||
| Net income (loss) from continuing operations attributable to common stockholders | (127,799 | ) | 45,580 | 9,438 | (163,941 | ) | ||||||||||
| Net loss from discontinued operations | (49,813 | ) | - | (49,813 | ) | |||||||||||
| Net loss attributable to common stockholders | $ | (177,612 | ) | $ | 45,580 | $ | 9,438 | $ | (213,754 | ) | ||||||
| Weighted-average shares of common stock outstanding: | ||||||||||||||||
| Basic | 42,671 | 42,671 | ||||||||||||||
| Diluted | 42,671 | 42,671 | ||||||||||||||
| Net loss from continuing operations per common share: | ||||||||||||||||
| Basic | $ | (2.99 | ) | $ | (3.84 | ) | ||||||||||
| Diluted | $ | (2.99 | ) | $ | (3.84 | ) | ||||||||||
| Net loss from discontinued operations per common share: | ||||||||||||||||
| Basic | $ | (1.17 | ) | $ | (1.17 | ) | ||||||||||
| Diluted | $ | (1.17 | ) | $ | (1.17 | ) | ||||||||||
| Net loss per common share: | ||||||||||||||||
| Basic | $ | (4.16 | ) | $ | (5.01 | ) | ||||||||||
| Diluted | $ | (4.16 | ) | $ | (5.01 | ) | ||||||||||
See accompanying notes.
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| (A) | Represents the historical consolidated statement of operations of TPI Composites, Inc. for the six months ended June 30, 2025, as reported in its Quarterly Report on Form 10-Q, filed on August 11, 2025, and the historical consolidated statement of operations of TPI Composites, Inc. for the years ended December 31, 2024 and 2023, as reported in its Annual Report on Form 10-K, filed on February 20, 2025. |
| (B) | Represents the removal of the historical statement of operations of TPI Türkiye for the six months ended June 30, 2025, and for the years ended December 31, 2024 and 2023. |
| (C) | Represents adjustments for TPI Composites, Inc.'s estimated non-cash gain on the sale and transfer of TPI Türkiye. The pro forma gain on the sale and transfer of TPI Türkiye is preliminary. The actual results may differ from the amounts reflected in the pro forma financial statements. |
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