TPI Composites, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>TPI Composites, Inc. has filed its 2023 10-K report detailing financial performance and operational segments.</b>

AI Summary

TPI COMPOSITES, INC (TPICQ) filed a Annual Report (10-K) with the SEC on February 22, 2024. TPI Composites, Inc. filed its 2023 Form 10-K on February 22, 2024, reporting on the fiscal year ending December 31, 2023. The filing covers financial data and business operations for TPI Composites, Inc., a manufacturer of composite wind blades. Key financial items such as revenue, net income, and debt levels are detailed for the fiscal year 2023. The report includes segment information for various geographical regions including the US, India, and Mexico. Information regarding stock performance, debt financing, and operational expenses is provided.

Why It Matters

For investors and stakeholders tracking TPI COMPOSITES, INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of TPI Composites' financial health and operational status for the fiscal year 2023, crucial for investors assessing the company's performance and future prospects. The detailed segment reporting and financial metrics within the 10-K are essential for understanding the company's revenue streams, cost structures, and geographical exposure, particularly in the renewable energy sector.

Risk Assessment

Risk Level: — TPI COMPOSITES, INC shows moderate risk based on this filing. The company operates in the highly competitive wind energy sector, facing risks related to customer concentration and fluctuating demand, as evidenced by the mention of specific customers like GE Wind and the nature of the business.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess TPI Composites' ability to navigate market challenges and achieve profitability.

Key Numbers

• 2023 — Fiscal Year End (FISCAL YEAR END)
• 1231 — Fiscal Year End (FISCAL YEAR END)
• 2024-02-22 — Filing Date (DATE AS OF CHANGE)

Key Players & Entities

• TPI COMPOSITES, INC (company) — FILER
• 0000950170-24-018800 (filing_id) — ACCESSION NUMBER
• 20240222 (date) — FILED AS OF DATE
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• GE Wind (company) — CustomerTwoGEWindMember

FAQ

Risk Factors

• Customer Concentration Risk [high — market]: The company faces significant risk due to its reliance on a limited number of customers, specifically mentioning GE Wind.

Industry Context

TPI Composites operates within the renewable energy sector, specifically manufacturing composite wind blades. The industry is subject to global energy policies, technological advancements, and supply chain dynamics.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to disclose material information about their business, financial condition, and operations.

What Investors Should Do

1. Analyze the detailed financial statements for revenue trends, profitability, and debt levels.
2. Evaluate the risk factors, particularly customer concentration and market demand for wind energy.
3. Compare key financial metrics with previous years to identify performance changes.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year 2023, providing updated financial and operational data compared to previous filings.

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 TPIC NASDAQ Global Market Securit

Filing Documents

• tpic-20231231.htm (10-K) — 4929KB
• tpic-ex21_1.htm (EX-21.1) — 26KB
• tpic-ex23_1.htm (EX-23.1) — 6KB
• tpic-ex31_1.htm (EX-31.1) — 12KB
• tpic-ex31_2.htm (EX-31.2) — 12KB
• tpic-ex32_1.htm (EX-32.1) — 8KB
• tpic-ex32_2.htm (EX-32.2) — 8KB
• tpic-ex97_1.htm (EX-97.1) — 51KB
• img145802517_0.jpg (GRAPHIC) — 7KB
• img145802517_1.jpg (GRAPHIC) — 63KB
• 0000950170-24-018800.txt (&nbsp;) — 22301KB
• tpic-20231231.xsd (EX-101.SCH) — 2896KB
• tpic-20231231_htm.xml (XML) — 4937KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 15 Item 1B. Unresolved Staff Comments 29 Item 1C. Cybersecurity 29 Item 2.

Properties

Properties 31 Item 3.

Legal Proceedings

Legal Proceedings 31 Item 4. Mine Safety Disclosures 31 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 32 Item 6. [Reserved ] 33 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 34 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 53 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 54 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 54 Item 9A.

Controls and Procedures

Controls and Procedures 54 Item 9B. Other Information 55 PART III Item 10. Directors, Executive Officers and Corporate Governance 56 Item 11.

Executive Compensation

Executive Compensation 56 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 56 Item 13. Certain Relationships and Related Transactions, and Director Independence 56 Item 14. Principal Accounting Fees and Services 56 PART IV Item 15. Exhibits and Financial Statement Schedules 57 Item 16. Form 10-K Summary 57 i SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). All statements other than statements of historical facts contained in this Annual Report on Form 10-K, including statements regarding our future results of operations and financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. In many cases, you can identify forward-looking statements by terms such as "may," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other similar words. Forward-looking statements contained in this Annual Report on Form 10-K include, but are not limited to, statements about: competition from other wind blade and wind blade turbine manufacturers; the discovery of defects in our products and our ability to estimate the future cost of warranty campaigns; the sufficiency of our cash and cash equivalents to meet our liquidity needs; the increasing cost and availability of additional capital, should such capital be needed; our projected sales and costs, including materials costs and capital expenditures, during the current fiscal year; our projected business model during the current fiscal year, including with respect to the number of wind blade manufacturing lines we anticipate;

B usiness

Item 1. B usiness Description of Business TPI Composites, Inc. is the holding company that conducts substantially all of its business operations through its direct and indirect subsidiaries (collectively, the Company, TPI or we). The Company was founded in 1968 and has been producing composite wind blades since 2001. The Company is incorporated in the State of Delaware. Discontinued Operations In December 2022, we committed to a restructuring plan to rebalance our organization and optimize our global manufacturing footprint. Changing economic and geopolitical factors, including increased logistics costs and tariffs imposed on components of wind turbines from China, including wind blades, had an adverse impact on demand and profitability for our wind blades manufactured in our Chinese facilities. In connection with our restructuring plan, we ceased production at our Yangzhou, China manufacturing facility as of December 31, 2022 and are in the final stages of shutting down our business operations in China. Our business operations in China comprised the entirety of our Asia reporting segment. This shut down has had a meaningful effect on our global manufacturing footprint and consolidated financial results. Accordingly, the historical results of our Asia reporting segment have been presented as discontinued operations in our Consolidated Statements of Operations and Consolidated Balance Sheets. Our China operations represented a geographic operating segment that included (1) the manufacturing of wind blades at our facilities in Dafeng, China and Yangzhou, China, (2) the manufacturing of precision molding and assembly systems at our Taicang Port, China facility and (3) wind blade inspection and repair services. The following discussion reflects continuing operations only, unless otherwise indicated. Overview We are the only independent manufacturer of composite wind blades for the wind energy market with a global manufacturing footprint. We enable many of th

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View this 10-K filing on SEC EDGAR