8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): December 19, 2017

Global Power Equipment Group Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware	001-16501	73-1541378
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification Number)

400 E. Las Colinas Boulevard, Suite 400

Irving, Texas 75039

(Address of Principal Executive Offices, Zip Code)

Registrant’s telephone number, including area code: 214-574-2700

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On December 19, 2017, Global Power Equipment Group Inc. (the “Company”) issued a press release (the “press release”) reporting its financial results for the three months ended March 31, 2017 and the three and six months ended June 30, 2017. As noted in the press release, management will host a conference call on Wednesday, December 20, 2017, at 10:00 a.m. Eastern time (9:00 a.m. Central) to discuss such financial results, as well as recent corporate developments and strategic initiatives. Instructions on how to participate in the conference call are contained in the press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The press release contains a discussion of adjusted EBITDA (earnings before interest expense, net, income tax (benefit) expense, depreciation and amortization, and unusual gains or charges), a non-GAAP financial measure within the meaning of Regulation G promulgated under the rules and regulations of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company believes that providing non-GAAP information, such as adjusted EBITDA, is important as such information is used as analytical indicators by the Company’s management to better understand operating performance. The press release contains reconciliations of comparable GAAP to non-GAAP measures.

The information in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, regardless of the general incorporation language contained in such filing. Without limiting the generality of the foregoing, the text of the press release set forth under the heading entitled “Forward-looking Statement Disclaimer” is incorporated by reference into this Item 2.02.

Item 7.01 Regulation FD Disclosure.

In connection with the conference call announced in the press release, the Company made available the Company Information Presentation beginning on December 20, 2017, relating to its financial results for the three months ended March 31, 2017 and the three and six months ended June 30, 2017. The Company Information Presentation may be accessed within the investor relations section of the Company’s website, http://www.globalpower.com. A copy of the Company Information Presentation is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

The information in this Item 7.01, including Exhibit 99.2, shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act or the Exchange Act, regardless of the general incorporation language contained in such filing. Without limiting the generality of the foregoing, the text of the slide in the Company Information Presentation entitled “Forward-Looking Statements” is incorporated by reference into this Item 7.01.

Item 9.01Financial Statements and Exhibits.

	Exhibits
99.1	Press Release, dated December 19, 2017 of Global Power Equipment Group Inc.
99.2	Company Information Presentation.

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release, dated December 19, 2017 of Global Power Equipment Group Inc.
99.2	Company Information Presentation.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: December 19, 2017

Global Power Equipment Group Inc.
By:	/s/ Charles E. Wheelock
	Charles E. Wheelock
	Vice President, Administration, General Counsel, and Secretary

EX-99.1

Exhibit 99.1

NEWS
RELEASE

Global Power ♦400 E Las Colinas Blvd., Suite 400 ♦ Irving, TX 75039

FOR IMMEDIATE RELEASE

Global Power Reports First and Second Quarter 2017 Financial Results and Announces New Strategic Initiative

IRVING, Texas, December 19, 2017 – Global Power Equipment Group Inc. (OTC: GLPW) (“Global Power” or the “Company”) today reported its financial results for the quarter ended March 31, 2017, and the quarter and six months ended June 30, 2017. The delay in reporting the Company’s financial results for the first half of 2017 was due to the time it took to prepare and audit the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (the “2015 Report”), which included the restatement of certain prior period financial results and was filed on March 15, 2017, as well as the subsequent time required to file the Annual Report on Form 10-K for the year ended December 31, 2016, which was filed on September 12, 2017.

The Company also reported on its operational progress in 2017 and its current strategic initiatives.

Craig Holmes and Tracy Pagliara, Co-Presidents and Co-CEOs of Global Power, commented, “As we had previously disclosed,  financial results of the first half of 2017 reflect many of the on-going operational challenges that we have been diligently addressing. We believe we have made substantial progress in better positioning the Company for long-term success, but we recognize that these operational challenges, combined with liquidity constraints, restrict our ability to invest in our businesses.”

They added, “After having successfully divested substantially all of the operating assets and liabilities of the Mechanical Solutions segment in October of this year, we are now currently evaluating strategic alternatives for our Electrical Solutions segment. This business has great employees, customers, manufacturing capabilities, suppliers and end markets. Consequently, we believe Electrical Solutions could benefit from a new strategic partner that can provide increased liquidity and capital for the business to improve operations and pursue greater growth in its diversified end markets. This will also allow us to further reduce debt and focus efforts on enhancing our Services segment, which has recently entered into a significant joint venture and is continuing to pursue a pipeline of solid and diverse opportunities. It will also help accelerate our ongoing efforts to reduce costs in our administrative and corporate functions.”

Consolidated Results for the Six Months ended June 30, 2017(compared with the corresponding period in 2016 unless noted otherwise)

· Revenue was $157.9 million compared with $229.5 million, a $71.6 million decline. Items impacting revenue included:

o The sale of various businesses and a plant closure had a combined negative impact to revenue of $21.8 million.

o The timing of projects, as well as the decreased number and magnitude of projects, were the primary reasons for reduced revenue in both the Services and Mechanical Solutions segments.  Delays in completing projects was the primary reason for a $6.0 million decline in volume in Electrical Solutions.  

· Cost reductions and expense management helped to drive a $3.4 million, or 13.2%, decline in general and administrative expenses. These measures also reduced selling and marketing expenses by $1.5 million, or 29.2%. Restatement expenses were down $2.0 million, as the restatement of 2014 and certain prior-period financial results was completed in March 2017.

· The $0.8 million reduction in interest expense was the result of a lower average debt balance.

· The income tax benefit was mainly related to a $2.2 million decrease in indefinite-lived intangible deferred tax liabilities resulting from the disposition of Hetsco, Inc., a wholly owned subsidiary (“Hetsco”).

Global Power Reports First and Second Quarter 2017 Financial Results and Announces New Strategic Initiative

December 19, 2017

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· Net loss was $31.7 million, or $1.81 per share.

· At the end of the period, backlog was $215.5 million, of which $122.8 million, or 57.0%, was related to the Services segment.

Focused on Execution in First Half 2017

· In January, the Company sold the stock of Hetsco, to Chart Industries, Inc. (NASDAQ: GTLS) for net proceeds of $20.2 million.  

· In March, Global Power completed the restatement of 2014 and certain prior-period financial results and filed the 2015 Report.  

· In June, the Company secured a $45.0 million senior secured term loan, which matures in December 2021, and used part of the proceeds to repay in full all outstanding loans and obligations under the Company’s previous credit agreement.

Business Segment Review for the Three Months Ended March 31, 2017 (compared with the corresponding period in 2016 unless noted otherwise)

Services segment:

· Services revenue of $41.2 million was down $27.5 million due primarily to completion in 2016 of construction and support services for the restart of a new build nuclear reactor that contributed $19.8 million in revenue for the prior-year period. Also, approximately $3.1 million of the decline was related to the sale of Hetsco.

· Services operating loss was $9.2 million, a $12.8 million decrease, due primarily to $13.1 million of costs recognized to reflect estimated losses on several large non-recurring fixed-price contracts under which Services performed change orders in the interest of keeping projects on track that are currently in dispute with the customer. In such cases, the costs are recognized when incurred, but revenue recognition is deferred subject to the resolution of the dispute. No estimated losses on contracts were recorded in the first quarter of 2016.

Electrical Solutions segment:

· Revenue for the segment was $13.5 million, a $4.1 million decline,  mostly as the result of the closure of the Chattanooga facility, which led to the loss of a major customer.

· Electrical Solutions operating loss increased $1.3 million to $4.0 million due primarily to a  $1.8 million increase in estimated losses on certain contracts.

Mechanical Solutions segment:

· Revenue was $16.7 million, down $19.7 million as the segment had declining demand for its products and was not able to replace projects. 

· Despite measurable cost reduction efforts, the significant reduction in revenue was the primary cause of Mechanical Solutions’ $0.2 million operating loss compared with $1.5 million of operating income in the prior-year period.

Business Segment Review for the Three Months Ended June 30, 2017 (compared with the corresponding period in 2016 unless noted otherwise)

Services segment:

· Services revenue increased $2.2 million as the timing of a customer-scheduled nuclear facility outage more than offset the impact of the sale of Hetsco and completion of significant work in 2016 associated with the restart of a new build nuclear plant. Services revenue was up $16.7 million compared with the first quarter of 2017, given the impact of the timing of outage work.

· Operating income for the segment was $3.1 million compared with an operating loss of $8.7 million in the second quarter of 2016. The $11.8 million increase was largely due to the non-recurrence of an $8.2 million loss related to net assets held for sale for Hetsco that was recognized in the prior-year period, a $2.6 million reduction of loss contract charges and a $0.7 million reduction in operating expenses from the reorganization of the Williams business unit.

Global Power Reports First and Second Quarter 2017 Financial Results and Announces New Strategic Initiative

December 19, 2017

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· Backlog at the end of the period was $122.8 million compared with $138.6 million at the end of 2016. Approximately $18.3 million of the decline in Services backlog was due to the completion of the spring outage work related to a maintenance and modification contract.

Electrical Solutions segment:

· Revenue was $10.5 million in the quarter, down from $22.2 million in the second quarter of 2016. The decline was primarily related to the Chattanooga plant closure, which had a $5.5 million negative impact, and lower production volume due to delays in project completion. This had a $6.2 million negative impact on revenue.

· Operating loss increased to $4.3 million compared with $0.5 million in the prior-year period due to the significant revenue decline and resulting $2.0 million decrease in gross profit. Additionally, estimated losses on certain contracts increased $2.0 million. The losses were the result of incurring liquidated damages from missed delivery dates and operating inefficiencies, primarily in the Houston facility.

· Electrical Solutions backlog at June 30, 2017 increased $3.7 million from December 31, 2016 due to delays in production and shipments.

Mechanical Solutions segment:

· Revenue was $17.9 million, down $10.9 million, as the segment had declining demand for its products and was not able to replace projects.

· Operating loss was $0.2 million compared with $1.8 million in the prior-year period, due primarily to an increase in gross profit of $1.1 million due to $2.0 million of loss contract accruals that were recorded in the same period of the prior year and measurable cost reduction efforts, offset by the significant reduction in revenue.

· Mechanical Solutions backlog at June 30, 2017 was $33.1 million, a $4.7 million decline from December 31, 2016.

Creating Liquidity; Driving Operational and Organizational Progress

Messrs. Holmes and Pagliara noted, “The hard work and dedicated effort of our employees resulted in a great number of accomplishments in 2017. We recognize that more work remains to address significant operational and liquidity issues,  and we are defining a path to alleviate these challenges.”

Successful efforts in second half of 2017 include the following:

· Sold the Mechanical Solutions segment and its related Mexico facility and equipment for total net proceeds of $44.5 million.

· With proceeds from the sale of Mechanical Solutions, the Company reduced debt by $35.9 million in October 2017, including full repayment of a $10.0 million first-out term loan from August 2017, which enables the Company to avoid an increase in the facility’s payable-in-kind interest rate in 2018.

· Realigned and strengthened management team within Electrical Solutions by adding experienced industry personnel in key operational leadership positions.

· Initiated the process for the evaluation of strategic alternatives for Electrical Solutions segment, which could provide liquidity, pay down additional debt and provide the segment with increased investment capital.

· Formed joint venture between Services business and prime construction contractor to supply craft labor for the new nuclear power plant construction at Plant Vogtle Units 3 &  4. The Services segment will also provide supervision and ancillary support services to the joint venture. The segment is well-positioned for a variety of potential multi-year, multi-discipline projects including, for example, site coatings, insulation and perimeter security. Later this month, the Georgia Public Service Commission is expected to issue final approval or denial related to continued construction at Plant Vogtle Units 3 & 4.

· Awarded new nuclear and fossil-power contracts by long-standing customers of the Services segment.

· Negotiated receipt of $6.4 million of outstanding receivables for pre-petition services rendered to a customer that filed for bankruptcy protection.  Expect  to be paid for the remaining $2.3 million in outstanding pre-petition receivables as well.

Global Power Reports First and Second Quarter 2017 Financial Results and Announces New Strategic Initiative

December 19, 2017

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· Became more current in the filing of our financial reports with the Securities and Exchange Commission, including filing the comprehensive Annual Report on Form 10-K for the year ended December 31, 2016 and the quarterly reports on Form 10-Q for the first and second quarters of 2017.

Planned efforts for facilitating improved performance in 2018 and beyond include the following:

· Seek a new asset-based lending facility, which would provide additional liquidity through new borrowings, the release of restricted cash that is currently collateral for standby letters of credit and the ability to issue new standby letters of credit.

· Expand decommissioning business by leveraging nuclear experience and capabilities,  developing partnerships and pursuing new opportunities in this large and growing market.

· Work toward a diversified pipeline of opportunities to compete in transmission and distribution, oil and  gas and petrochemical markets and consider potential market expansion opportunities in Canada.

· Seek to refinance the term-loan debt pending a successful conclusion of the Electrical Solutions strategic alternatives process.

· Focus on improving days sales outstanding and days payable outstanding.

· Aggressively continue to reduce corporate and other operating costs.

· Become current with the SEC by filing the annual report on Form 10-K for the year ended December 31, 2017 by April 2, 2018.

Liquidity Update

As of December 14, 2017, the Company had $15.4 million in cash and equivalents on-hand, including $11.8 million in restricted cash, and had an outstanding gross debt balance of approximately $25.1 million.

For the six months ended June 30, 2017, the Company had negative cash flow from operations of $5.8 million. Since June 2017, the Company’s liquidity has remained very constrained as a result of continued losses, inconsistent cash flows from operations and the inability to borrow additional amounts for short-term working capital needs or issue additional standby letters of credit. Management continues to assess and implement steps in its liquidity plan.

Update on Financial Reporting for 2017

The Company expects to file its quarterly report on Form 10-Q for the three and nine months ended September 30, 2017 during January 2018 and its annual report on Form 10-K for the year ended December 31, 2017 by the filing deadline on April 2, 2018.

Webcast and Teleconference

The Company will host a conference call on Wednesday, December 20, 2017, at 10:00 a.m. Eastern time (9:00 a.m. Central). A webcast of the call and an accompanying slide presentation will be available at www.globalpower.com. To access the conference call by telephone, listeners should dial 201-493-6780.

An audio replay of the call will be available from 1:00 p.m. Eastern time  (12:00 p.m. Central) on the day of the teleconference until the end of day on January 3, 2018. To listen to the audio replay, dial 412-317-6671 and enter conference ID number 13674323.  Alternatively, you may access the webcast replay at http://ir.globalpower.com/, where a transcript will be posted once available.

About Global Power

Global Power is a design, engineering and manufacturing firm providing a broad array of equipment and services to the global power infrastructure, energy and process industries. 

Additional information about Global Power can be found on its website:  www.globalpower.com.  

Global Power Reports First and Second Quarter 2017 Financial Results and Announces New Strategic Initiative

December 19, 2017

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Forward-looking Statement Disclaimer
This press release contains “forward-looking statements” within the meaning of the term set forth in the Private Securities Litigation Reform Act of 1995. The forward-looking statements include statements or expectations regarding the Company’s ability to comply with the terms of its debt instruments, the timing and the Company’s ability to file its remaining 2017 financial results and regain SEC reporting compliance, if at all, the timing or outcome of its strategic alternative initiatives with its Electrical Solutions segment, the expected timing of shipments and other related matters. These statements reflect our current views of future events and financial performance and are subject to a number of risks and uncertainties, including our ability to comply with the terms of our credit facility and enter into new lending facilities and access letters of credit and to remain as a publicly reporting entity pursuant to Securities Exchange Act of 1934, as amended (the “Exchange Act”).  Our actual results, performance or achievements may differ materially from those expressed or implied in the forward-looking statements. Additional risks and uncertainties that could cause or contribute to such material differences include, but are not limited to, decreased demand for new gas turbine power plants, reduced demand for, or increased regulation of, nuclear power, loss of any of our major customers, whether pursuant to the loss of pending or future bids for either new business or an extension of existing business, termination of customer or vendor relationships, cost increases and project cost overruns, unforeseen schedule delays, poor performance by our subcontractors, cancellation of projects, competition for the sale of our products and services, including competitors being awarded business by our customers that we previously provided, shortages in, or increases in prices for, energy and materials such as steel that we use to manufacture our products, damage to our reputation, warranty or product liability claims, increased exposure to environmental or other liabilities, failure to comply with various laws and regulations, failure to attract and retain highly-qualified personnel, loss of customer relationships with critical personnel, effective integration of acquisitions, volatility of our stock price, deterioration or uncertainty of credit markets, changes in the economic and social and political conditions in the United States and other countries in which we operate, including fluctuations in foreign currency exchange rates, the banking environment or monetary policy, and any suspension of our continued reporting obligations under the Exchange Act.

Other important factors that may cause actual results to differ materially from those expressed in the forward-looking statements are discussed in our filings with the SEC, including the section of the 2016 10-K titled “Risk Factors.” Any forward-looking statement speaks only as of the date of this press release. Except as may be required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, and we caution you not to rely upon them unduly.

Investor Relations Contact:
Deborah K. Pawlowski
Kei Advisors LLC
(716) 843-3908
dpawlowski@keiadvisors.com

Financial Tables Follow.

Global Power Reports First and Second Quarter 2017 Financial Results and Announces New Strategic Initiative

December 19, 2017

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GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

	Three Months Ended March 31,				Three Months Ended June 30,
($ in thousands, except share and per share amounts)	2017		2016		2017		2016
Revenue
Services	$	41,232	$	68,729	$	57,981	$	55,809
Electrical Solutions		13,547		17,637		10,532		22,202
Mechanical Solutions		16,678		36,356		17,901		28,776
Total revenue		71,457		122,722		86,414		106,787
Cost of revenue
Services		47,187		59,125		51,227		50,345
Electrical Solutions		15,170		17,654		12,560		20,223
Mechanical Solutions		13,530		31,132		14,963		26,933
Total cost of revenue		75,887		107,911		78,750		97,501
Gross profit		(4,430)		14,811		7,664		9,286
Gross margin		(6.2)%		12.1%		8.9%		8.7%
Selling and marketing expenses		1,836		2,578		1,858		2,639
General and administrative expenses		11,223		13,059		11,107		12,652
Restatement expenses		1,720		2,913		713		1,542
(Gain) loss on sale of business and net assets held for sale		(239)		—		—		8,193
Depreciation and amortization expense(1)		1,274		2,216		1,228		2,193
Total operating expenses		15,814		20,766		14,906		27,219
Operating loss		(20,244)		(5,955)		(7,242)		(17,933)
Operating margin		(28.3)%		(4.9)%		(8.4)%		(16.8)%
Interest expense, net		1,708		2,660		2,108		1,997
Foreign currency gain		156		308		301		(129)
Other expense, net		(1)		(5)		1		64
Total other expenses (income), net		1,863		2,963		2,410		1,932
Loss before income tax		(22,107)		(8,918)		(9,652)		(19,865)
Income tax expense (benefit)		(636)		867		541		247
Net loss	$	(21,471)	$	(9,785)	$	(10,193)	$	(20,112)
Loss per common share - basic and diluted	$	(1.23)	$	(0.57)	$	(0.58)	$	(1.16)
Weighted average common shares outstanding - basic and diluted		17,470,817		17,223,901		17,551,664		17,338,255

(1) Excludes depreciation and amortization for the three months ended March 31, 2017 and 2016 of $0.3 million and $0.6 million, respectively, and for the three months ended June 30, 2017 and 2016 of $0.4 million and $0.6 million, respectively included in cost of revenue.

Global Power Reports First and Second Quarter 2017 Financial Results and Announces New Strategic Initiative

December 19, 2017

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GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

	Six Months Ended June 30,
($ in thousands, except share and per share amounts)	2017		2016
Revenue
Services	$	99,213	$	124,538
Electrical Solutions		24,079		39,839
Mechanical Solutions		34,579		65,132
Total revenue		157,871		229,509
Cost of revenue
Services		98,414		109,470
Electrical Solutions		27,730		37,877
Mechanical Solutions		28,493		58,065
Total cost of revenue		154,637		205,412
Gross profit		3,234		24,097
Gross margin		2.0%		10.5%
Selling and marketing expenses		3,694		5,217
General and administrative expenses		22,330		25,711
Restatement expenses		2,433		4,455
(Gain) loss on sale of business and net assets held for sale		(239)		8,193
Depreciation and amortization expense(1)		2,502		4,409
Total operating expenses		30,720		47,985
Operating loss		(27,486)		(23,888)
Operating margin		(17.4)%		(10.4)%
Interest expense, net		3,816		4,657
Foreign currency gain		457		179
Other expense, net		—		59
Total other expenses (income), net		4,273		4,895
Loss before income tax		(31,759)		(28,783)
Income tax expense (benefit)		(95)		1,114
Net loss	$	(31,664)	$	(29,897)
Loss per common share - basic and diluted	$	(1.81)	$	(1.73)
Weighted average common shares outstanding - basic and diluted		17,511,232		17,280,866

(1) Excludes depreciation and amortization for the six months ended June 30, 2017 and 2016 of $0.7 million and $1.2 million, respectively, included in cost of revenue.

Global Power Reports First and Second Quarter 2017 Financial Results and Announces New Strategic Initiative

December 19, 2017

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GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	March 31,		June 30,		December 31,
($ in thousands, except share and per share amounts)	2017		2017		2016
ASSETS
Current assets:
Cash and cash equivalents	$	6,544	$	8,509	$	2,805
Restricted cash		11,588		14,685		8,765
Accounts receivable, net of allowance of $1,545, $1,636 and $1,634, respectively		52,315		55,776		59,280
Inventories:
Raw material		4,313		4,872		4,210
Finished goods		629		753		699
Inventory reserve		(1,024)		(1,070)		(981)
Costs and estimated earnings in excess of billings		47,963		47,948		52,696
Assets held for sale		—		—		22,832
Other current assets		7,544		6,189		7,936
Total current assets		129,872		137,662		158,242
Property, plant and equipment, net		12,300		11,819		12,596
Goodwill		36,456		36,456		36,456
Intangible assets, net		24,129		23,457		24,801
Other long-term assets		754		641		747
Total assets	$	203,511	$	210,035	$	232,842
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	22,182	$	19,868	$	19,076
Accrued compensation and benefits		16,320		12,146		10,640
Billings in excess of costs and estimated earnings		9,432		11,977		6,754
Accrued warranties		5,411		4,572		5,806
Liabilities related to assets held for sale		—		—		1,151
Other current liabilities		34,932		36,231		33,915
Total current liabilities		88,277		84,794		77,342
Long-term debt		25,873		43,500		45,341
Deferred tax liabilities		14,465		15,264		15,499
Other long-term liabilities		8,091		7,742		7,526
Total liabilities		136,706		151,300		145,708
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value, 170,000,000 shares authorized and 18,916,983, 18,947,127 and 18,855,409 shares issued, respectively, and 17,565,465, 17,587,751 and 17,485,941 shares outstanding, respectively		189		189		188
Paid-in capital		77,463		78,079		76,708
Accumulated other comprehensive income		(8,924)		(7,417)		(9,513)
Retained earnings		(1,910)		(12,103)		19,764
Treasury stock, at par (1,351,518, 1,359,376 and 1,369,468 common shares, respectively)		(13)		(13)		(13)
Total stockholders’ equity		66,805		58,735		87,134
Total liabilities and stockholders’ equity	$	203,511	$	210,035	$	232,842

Global Power Reports First and Second Quarter 2017 Financial Results and Announces New Strategic Initiative

December 19, 2017

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GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Three Months ended March 31,				Six Months ended June 30,
(in thousands)	2017		2016		2017		2016
Operating activities:
Net loss	$	(21,471)	$	(9,785)	$	(31,664)	$	(29,897)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Deferred income tax expense (benefit)		(1,034)		247		(234)		465
Depreciation and amortization on plant, property and equipment and intangible assets		1,607		2,834		3,170		5,638
Amortization of deferred financing costs		35		59		81		116
Loss on disposals of property, plant and equipment		30		39		45		39
(Gain) loss on sale of business and net assets held for sale		(239)		—		(239)		8,193
Bad debt expense		(51)		23		(9)		(233)
Stock-based compensation		1,006		790		1,858		1,366
Payable-in-kind interest		78		—		531		—
Changes in operating assets and liabilities, net of business sold:
Accounts receivable		6,548		30,895		3,974		17,624
Inventories		42		(1,139)		(508)		(250)
Costs and estimated earnings in excess of billings		5,634		(21,941)		6,553		(11,749)
Other current assets		4,432		(2,005)		5,940		(132)
Other assets		480		219		244		145
Accounts payable		3,008		(6,083)		446		(2,365)
Accrued and other liabilities		4,065		6,174		168		6,744
Accrued warranties		(404)		(160)		(1,251)		(1,423)
Billings in excess of costs and estimated earnings		2,596		305		5,136		(4,538)
Net cash provided by (used in) operating activities		6,362		472		(5,759)		(10,257)
Investing activities:
Proceeds from sale of business, net of restricted cash and transaction costs		20,206		—		20,206		—
Net transfers of restricted cash		(2,815)		(175)		(2,608)		(3,129)
Proceeds from sale of property, plant and equipment		14		44		14		5
Purchase of property, plant and equipment		(301)		(425)		(583)		(508)
Net cash provided by (used in) investing activities		17,104		(556)		17,029		(3,632)
Financing activities:
Repurchase of stock-based awards for payment of statutory taxes due on stock-based compensation		(185)		(110)		(223)		(153)
Debt issuance costs		(57)		—		(1,704)		—
Dividends paid		(9)		—		(9)		—
Proceeds from long-term debt		83,100		—		161,599		—
Payments of long-term debt		(102,647)		(500)		(165,515)		(1,000)
Net cash provided by (used in) financing activities		(19,798)		(610)		(5,852)		(1,153)
Effect of exchange rate changes on cash		71		275		286		219
Net change in cash and cash equivalents		3,739		(419)		5,704		(14,823)
Cash and cash equivalents, beginning of year		2,805		22,239		2,805		22,239
Cash and cash equivalents, end of quarter	$	6,544	$	21,820	$	8,509	$	7,416
Supplemental Disclosures:
Cash paid for interest	$	1,863	$	1,697	$	3,416	$	3,343
Cash paid for income taxes, net of refunds	$	86	$	229	$	992	$	789
Noncash repayment of revolving credit facility	$	—		—	$	(36,224)		—
Noncash upfront fee related to senior secured term loan facility	$	—		—	$	(3,150)		—

Global Power Reports First and Second Quarter 2017 Financial Results and Announces New Strategic Initiative

December 19, 2017

Page 10 of 11

GLOBAL POWER EQUIPMENT GROUP INC.

SEGMENT DATA (UNAUDITED)

	Three Months Ended March 31, 2017
($ in thousands)	Services		Electrical Solutions		Mechanical Solutions		Corporate		Consolidated
Revenue	$	41,232	$	13,547	$	16,678	$	—	$	71,457
Gross profit	$	(5,955)	$	(1,623)	$	3,148	$	—	$	(4,430)
Gross margin		(14.4)%		(12.0)%		18.9%		—		(6.2)%
Operating loss	$	(9,206)	$	(4,024)	$	(235)	$	(6,779)	$	(20,244)
Operating margin		(22.3)%		(29.7)%		(1.4)%		—		(28.3)%
	Three Months Ended June 30, 2017
($ in thousands)	Services		Electrical Solutions		Mechanical Solutions		Corporate		Consolidated
Revenue	$	57,981	$	10,532	$	17,901	$	—	$	86,414
Gross profit	$	6,754	$	(2,028)	$	2,938	$	—	$	7,664
Gross margin		11.6%		(19.3)%		16.4%		—		8.9%
Operating income (loss)	$	3,085	$	(4,313)	$	(207)	$	(5,807)	$	(7,242)
Operating margin		5.3%		(41.0)%		(1.2)%		—		(8.4)%
	Six Months Ended June 30, 2017
($ in thousands)	Services		Electrical Solutions		Mechanical Solutions		Corporate		Consolidated
Revenue	$	99,213	$	24,079	$	34,579	$	—	$	157,871
Gross profit	$	799	$	(3,651)	$	6,086	$	—	$	3,234
Gross margin		0.8%		(15.2)%		17.6%		—		2.0%
Operating loss	$	(6,121)	$	(8,337)	$	(442)	$	(12,586)	$	(27,486)
Operating margin		(6.2)%		(34.6)%		(1.3)%		—		(17.4)%

CONSOLIDATED BACKLOG (UNAUDITED)

	June 30,		March 31,		December 31,
(in thousands)	2017		2017		2016
Services	$	122,778	$	149,474	$	138,567
Electrical Solutions		59,622		52,469		55,891
Mechanical Solutions		33,100		36,894		37,792
Total	$	215,500	$	238,837	$	232,250

· Services backlog as of June 30, 2017 decreased  $15.8 million  from December 31, 2016 due primarily to the completion of the spring outage work at the Columbia Generating Station.

· Electrical Solutions backlog as of June 30, 2017 increased $3.7 million from December 31, 2016 due to a delay in the production of multiple large control house projects that were originally expected to ship during the second quarter of 2017.

· Mechanical Solutions backlog as of June 30, 2017 decreased $4.7 million from December 31, 2017 due to a slowdown in diverter product line orders with one of our key original equipment manufacturer customers in 2017.

Global Power Reports First and Second Quarter 2017 Financial Results and Announces New Strategic Initiative

December 19, 2017

Page 11 of 11

GLOBAL POWER EQUIPMENT GROUP INC.

NON-GAAP FINANCIAL MEASURE (UNAUDITED)

This press release contains financial measures not derived in accordance with accounting principles generally accepted in the United States (“GAAP”). A reconciliation to the most comparable GAAP measure is provided below.

ADJUSTED EBITDA CONSOLIDATED

	Three Months Ended March 31,				Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2017		2016		2017		2016		2017		2016
Net loss	$	(21,471)	$	(9,785)	$	(10,193)	$	(20,112)	$	(31,664)	$	(29,897)
Add back:
Depreciation and amortization expense		1,607		2,834		1,563		2,804		3,170		5,638
Loss on sale of business and net assets held for sale		(239)		—		—		8,193		(239)		8,193
Interest expense, net		1,708		2,660		2,108		1,997		3,816		4,657
Restatement expenses		1,720		2,913		713		1,542		2,433		4,455
Stock-based compensation		1,006		790		852		576		1,858		1,366
Income tax expense (benefit)		(636)		867		541		247		(95)		1,114
Bank restructuring costs		200		—		150		—		350		—
Severance costs		251		46		648		496		899		542
Asset disposition costs		36		203		208		259		244		462
Franchise taxes		94		122		95		125		189		247
Foreign currency (gain) loss		156		308		301		(129)		457		179
Adjusted EBITDA	$	(15,568)	$	958	$	(3,014)	$	(4,002)	$	(18,582)	$	(3,044)

ADJUSTED EBITDA BY SEGMENT

	Three Months Ended March 31,				Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)		2017		2016		2017		2016		2017		2016
Services	$	(9,354)	$	4,513	$	3,399	$	471	$	(5,955)	$	4,984
Electrical Solutions		(3,009)		(1,479)		(3,273)		656		(6,282)		(823)
Mechanical Solutions		445		2,289		752		(879)		1,197		1,410
Corporate		(3,650)		(4,365)		(3,892)		(4,250)		(7,542)		(8,615)
Adjusted EBITDA	$	(15,568)	$	958	$	(3,014)	$	(4,002)	$	(18,582)	$	(3,044)

Adjusted EBITDA is not calculated through the application of GAAP and is not the required form of disclosure by the U.S. Securities and Exchange Commission. Adjusted EBITDA is the sum of our net loss before interest expense, net and income tax (benefit) expense and unusual gains or charges. It also excludes non-cash charges such as depreciation and amortization. The Company’s management believes adjusted EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare the performance of its core operations from period to period by removing the impact of the capital structure (interest), tangible and intangible asset base (depreciation and amortization), taxes and unusual gains or charges (foreign currency gain, stock-based compensation, restatement expenses, asset disposition costs, loss on sale of business and net assets held for sale, bank restructuring costs and severance costs), which are not always commensurate with the reporting period in which such items are included.Global Power’s credit facility also contains ratios based on EBITDA. Adjusted EBITDA should not be considered an alternative to net income or as a better measure of liquidity than net cash flows from operating activities, as determined by GAAP, and therefore, should not be used in isolation from, but in conjunction with, the GAAP measures. The use of any non-GAAP measure may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies.

EX-99.2

Exhibit 99.2

December 20, 2017 First Half 2017 Financial Results and Strategic Update Craig E. Holmes Co-President, Co-CEO Tracy Pagliara Co-President, Co-CEO Erin Gonzalez CFO

Forward-Looking Statements 1 Cautionary Note Regarding Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the term set forth in the Private Securities Litigation Reform Act of 1995. The forward-looking statements include statements or expectations regarding the Company’s ability to comply with the terms of its debt instruments, the timing and the Company’s ability to file its remaining 2017 financial results and regain SEC reporting compliance, if at all, the timing or outcome of its strategic alternative initiatives with its Electrical Solutions segment, the expected timing of shipments and other related matters. These statements reflect our current views of future events and financial performance and are subject to a number of risks and uncertainties, including our ability to comply with the terms of our credit facility and enter into new lending facilities and access letters of credit and to remain as a publicly reporting entity pursuant to Securities Exchange Act of 1934, as amended (the “Exchange Act”). Our actual results, performance or achievements may differ materially from those expressed or implied in the forward-looking statements. Additional risks and uncertainties that could cause or contribute to such material differences include, but are not limited to, decreased demand for new gas turbine power plants, reduced demand for, or increased regulation of, nuclear power, loss of any of our major customers, whether pursuant to the loss of pending or future bids for either new business or an extension of existing business, termination of customer or vendor relationships, cost increases and project cost overruns, unforeseen schedule delays, poor performance by our subcontractors, cancellation of projects, competition for the sale of our products and services, including competitors being awarded business by our customers that we previously provided, shortages in, or increases in prices for, energy and materials such as steel that we use to manufacture our products, damage to our reputation, warranty or product liability claims, increased exposure to environmental or other liabilities, failure to comply with various laws and regulations, failure to attract and retain highly-qualified personnel, loss of customer relationships with critical personnel, effective integration of acquisitions, volatility of our stock price, deterioration or uncertainty of credit markets, changes in the economic and social and political conditions in the United States and other countries in which we operate, including fluctuations in foreign currency exchange rates, the banking environment or monetary policy, and any suspension of our continued reporting obligations under the Exchange Act. Other important factors that may cause actual results to differ materially from those expressed in the forward-looking statements are discussed in our filings with the SEC, including the section of the 2016 10-K titled “Risk Factors.” Any forward-looking statement speaks only as of the date of this press release. Except as may be required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, and we caution you not to rely upon them unduly. Non-GAAP Financial Measures This presentation will discuss some non-GAAP financial measures, which Global Power believes are useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results compared in accordance with GAAP. The Company has provided reconciliations of comparable GAAP to non-GAAP measures in tables found in the Supplemental Information portion of this presentation.

Goal: Improve Liquidity 2 Aggressive, proactive efforts to address challenges Strategic initiatives: Divested Mechanical Solutions Significantly reducing debt Initiating strategic alternatives process for Electrical Solutions Services segment: Expand capabilities and build pipeline Leverage highly respected brand, broad set of service offerings and highly experienced team Liquidity focus: Working capital, operating expenses

Core Values our MISSION To safely provide superior engineered products and services that exceed customer expectations, create enduring value for our shareholders and reward high-performing employees. Our VISION To be recognized as a premier global supplier of engineered products and services. our CORE VALUES SAFETY- “Safety comes first” INTEGRITY- “Always do the right thing” EXCELLENCE- “Strive to be the best” RESULTS- “Deliver on promises” SAFETY INTEGRITY EXCELLENCE RESULTS Be active in company safety programs. Learn from accidents, so as not to repeat them. Watch out for others as you would for yourself. Take care of your personal health, wellness and safety. Your safety comes first no matter the location or circumstances. Treat others with respect. Do what you say. Say what you mean. Take pride in your work. Share knowledge with your teammates. You should always do the right thing professionally and personally. Pay attention to the details. Focus on the customer and their needs. Strive to improve each day. Learn from mistakes. Do you best always. You should constantly strive to exceed expectations and perform to your best. Complete tasks on-time. Do quality work. Ask what’s next instead of waiting for instructions. Overcome obstacles. Keep a positive attitude. You should always be focused on the results and stay motivated in your performance. www.globalpower.com 3

4 Divested segment in October 2017 Received total net proceeds of $44.5 million Repaid $35.9 million of term debt Repaid First-Out Loan Removed minimum liquidity requirements Eliminated PIK rate increase on January 1, 2018 Mechanical Solutions: Divested

5 Evaluating strategic alternatives Employees, customers, manufacturing capabilities and suppliers could benefit from new strategic partner Provide increased liquidity and capital for operational improvement and growth Lack of synergies between segments GLPW will benefit from further reducing debt, refinancing and focusing resources on enhancing Services segment Premiere Koontz-Wagner brand well- recognized throughout the industry Diversified customers and end markets Broad geographic footprint Electrical Solutions: Alternatives

6 Services segment building momentum Completed spring outage related to a maintenance and modification contract Extended long-standing customer relationship through GUBMK partnership Formed joint venture with a prime construction contractor to provide craft labor at Plant Vogtle Units 3 & 4 Opportunity for multi-year, multi-discipline projects direct with end-customers Pursuing pipeline of solid and diverse opportunities Performing nuclear decommissioning work Seeking to grow capabilities and services in oil & gas, petrochemical, T&D, and Canada Services: Building Momentum

($ in millions) 7 1H 2017 Revenue Services $25.7 million decline due to completion of work at a new build nuclear reactor $13.0 lower revenue due to 1H 2016 large non-recurring fixed-price projects Divestiture of Hetsco had $8.7 million impact Offset by $20.7 million increase related to scheduled outage and $5.0 million increase from new nuclear construction work Electrical Solutions $9.8 million decline related to Chattanooga plant closure and subsequent loss of major customer $6.0 million decrease due to delays in completing projects Mechanical Solutions Down $30.6 million on lower order volume $3.3 million decrease related to sale of TOG

($ in millions) 8 1H 2017 Gross Profit Services Gross profit declined $14.3 million $10.5 million of incremental loss contract accruals related to disputed change orders $3.1 million decline for Hetsco divestiture Electrical Solutions Gross profit declined $5.6 million $2.4 million due to decline in revenue $3.8 million of incremental loss contract accruals $0.6 million slight offset from targeted pricing changes, product mix and productivity improvements (other than Houston) Mechanical Solutions Improved gross margin; Gross profit down just $1.0 million on significant revenue decline $0.6 million decline due to TOG sale $2.6 million of loss contract accruals recorded in 1H 2016 10.5% $24.1 10.9% 4.9% 12.1% 10.5% $3.2 17.6% 0.8% (15.2)% 2.0%

Selling & Marketing $1.5 million decline from reduced labor costs General & Administrative Reduced cost structure by $3.4 million $2.6 million decrease in total compensation expense $0.4 million decrease in travel & entertainment Offset by higher stock-based compensation ($0.6 million) and bad debt expense ($0.3 million) Depreciation & Amortization $1.9 million decrease primarily related to Hetsco sale * Non-recurring items included in Total Operating Expenses Restatement expenses: $4.4 million in 1H 2016 and $2.4 million in 1H 2017, down $2.0 million 1H 2017 included $0.2 positive working capital adjustment versus an $8.2 million loss on business and assets held for sale in 1H 2016 ($ in millions) 9 1H 2017 Operating Expenses $35.3 $28.5

($ in millions) 10 1H 2017 Operating Loss Services Loss increased $0.9 million $8.2 million loss recognized in prior year related to Hetsco assets held for sale $3.3 million improvement due to reduced operating expenses resulting from Hetsco sale $1.6 million reduced operating expenses due to reorganization of Williams business unit Improvements above primarily offset by $14.3 million lower gross profit Electrical Solutions Loss increased $5.1 million due primarily to lower gross profit Mechanical Solutions Loss increased $0.1 million primarily due to lower gross profit and increased severance expense, offset by lower operating expenses from 2016 TOG sale and lower compensation expense Corporate Loss improved by $2.6 million due primarily to lower restatement expenses in 1H 2017 ($27.5) ($23.9)

1H 2017 unfavorably impacted by $20.9 million lower gross profit, partially offset by $4.9 million of lower selling & marketing and general & administrative expenses EBITDA adjustments relating to liquidity initiatives were as follows: Loss on then anticipated sale of Hetsco: $8.2 million recorded in 1H 2016 Restatement expenses: $4.4 million in 1H 2016 and $2.4 million in 1H 2017 11 1H Adjusted EBITDA Adjusted EBITDA is a non-GAAP measure. Global Power believes that providing non-GAAP information, such as Adjusted EBITDA, is important as that information is used as analytical indicators by Global Power's management to better understand operating performance. Global Power’s credit facility also contains ratios based on EBITDA. Because Adjusted EBITDA is a non-GAAP measure and is thus susceptible to varying calculations, Adjusted EBITDA, as presented, may not be directly comparable to other similarly titled measures used by other companies. See the attached tables for additional important disclosures regarding Global Power’s use of Adjusted EBITDA, as well as the reconciliation of GAAP net income/(loss) to Adjusted EBITDA. ($ in millions) ($3.0) ($18.6) $5.1 ($5.9) ($0.8) ($6.3) $1.9 $1.2 ($9.2) ($7.5) 1H 2016 1H 2017 Adjusted EBITDA Services Electrical Solutions Mechanical Solutions Corporate

Progress in 2017 12 1H 2017: Realized negative cash flows from operations of $5.8 million October 2017: Divested Mechanical Solutions including Mexico facility & equipment for $44.5 million net proceeds November 2017: Received $6.4 million on pre-petition services due from Westinghouse December 14, 2017: Outstanding debt balance was $25.1 million December 14, 2017: Cash was $15.4 million, including $11.8 million of restricted cash New Lending Agreement Date: Source: Terms June 2017 $45 million credit facility, senior secured term loan Initial interest is LIBOR +9% per year, payable in cash, plus 10% payable in-kind (“PIK”) interest Prepayment premium range: 0% - 3% Term end: December 16, 2021 August 2017 $10 million expansion with first-out payment Same as above Term end: September 30, 2018 October2017 Full repayment of $10 million first-out term loan established in August Repayment resulted in avoidance of potential increase in PIK rate in 2018 A default under the current agreement would allow lenders to exercise their rights to collect then-outstanding amounts, which may include foreclosure on substantially all of the Company’s assets. This action could have a material adverse effect on the business. Please refer to the Company’s 2016 Annual Report on Form 10-K for additional risks and discussions relative to the Company’s liquidity status.

Opportunities for 2018 and Beyond 13 Evaluate strategic alternatives for Electrical Solutions Provide liquidity and reduce debt Provide segment increased investment capital Creating financial flexibility Look to secure ABL facility for additional liquidity Enable release $9.7 million of restricted cash from letters of credit Improve working capital requirements Seek to refinance term loan pending successful outcome of Electrical Solutions process Focus resources on Services segment Strong pipeline of opportunities increasing scope with current customers and adding new customers Seeking to diversify into additional geographic and end markets with strong growth potential: nuclear decommissioning and Canada Aggressively reduce corporate and other operating costs Become current with SEC filings upon filing 2017 10-K by April 2, 2018 due date

First Half 2017 Financial Results and Strategic Update

15 EBITDA Reconciliation Global Power Equipment Group Inc. Adjusted EBITDA Reconciliation Six Months Ended June 30, ($ in thousands) 2016 2017 Net loss $ (29,897) $ (31,664) Add back: Depreciation and amortization expense 5,638 3,170 Loss on sale of business and net assets held for sale 8,193 (239) Interest expense, net 4,657 3,816 Restatement expenses 4,455 2,433 Stock-based compensation 1,366 1,858 Income tax expense (benefit) 1,114 (95) Bank restructuring costs - 350 Severance costs 542 899 Asset disposition costs 462 244 Franchise taxes 247 189 Foreign currency (gain) loss 179 457 Non-GAAP Adjusted EBITDA $ (3,044) $ (18,582) Non-GAAP Financial Measure: Adjusted EBITDA is defined as consolidated net income before interest expense, net, income tax expense (benefit), franchise taxes, depreciation and amortization expense, impairment expenses, bargain purchase gain, foreign currency gain, other expense, net, stock-based compensation, restatement expenses, asset disposition costs, net loss on sale-leasebacks, loss on sale of business and net assets held for sale, bank restructuring costs, facility exit costs and severance costs. Adjusted EBITDA is not a measure determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP. Nevertheless, Global Power believes that providing non-GAAP information such as Adjusted EBITDA is important for investors and other readers of Global Power's financial statements, as they are used as analytical indicators by Global Power's management to better understand operating performance. Global Power’s credit facility also contains ratios based on EBITDA. Because Adjusted EBITDA is a non-GAAP measure and is thus susceptible to varying calculations, Adjusted EBITDA, as presented, may not be directly comparable to other similarly titled measures used by other companies.