Good day and welcome to the American Electric Technologies' fourth quarter 2013 results and conference call. Today's conference is being recorded. This press release contains forward-looking statements, as defined in Section 27A of the Securities Exchange Act of 1934, concerning anticipated future demand for our products, international expansion, and other future plans and objectives. While the company believes that such forward-looking statements are based on reasonable assumptions, there can be no assurance that such future revenues, profits, plans and objectives will be achieved on the schedule or in the amounts indicated. Investors are cautioned that these forward-looking statements are not guarantees of future performance. Actual events or results may differ from the company's expectations, and are subject to various risks and uncertainties, including those listed on Item 1A of the Form 10-K filed with the Securities and Exchange Commission on March 28, 2013. The company assumes no obligation to publicly update or revise its forward-looking statements, even if experience or future events makes it clear that any of the projected results expressed or implied herein will not be realized. At this time, I would like to turn the conference over to Charles Dauber, President and CEO. You may begin.

Thank you, Jessica. Good morning, everyone. I'd like to welcome you all for American Electric Technologies' fourth quarter and fiscal year 2013 earnings call. Joining me today is our Senior Vice President and Chief Financial Officer, Andy Puhala. For our call today, I'm going to start with a review of our annual results and our fourth quarter financial highlights. I'll then have Andy walk you through some additional financial details, and I'll come back for some additional comments on our business. We'll then move to a question-and-answer session coordinated by the moderator. First, I'd like to start by saying that I was very pleased by the company's 2013 results. We finished the year with revenues from consolidated operations of $65.3 million, up 21% from 2012. With another record revenue quarter in Q4, with revenues of $18.1 million which is up 21% from fourth quarter last year and up an additional 3% from our previous record revenue reported in Q3. The primary driver for our strong 2013 and Q4 results continues to be our technical products group, which reported record revenue for the year of $49 million, up 26% from last year. Gross margins for the year were 18%, a substantial improvement over 2012 gross margins of 15%. For the quarter, gross margins were 20% compared to 17% for the fourth quarter of last year and up from 16% in Q3 of this year. This is primarily driven by the gross margin increase in our E&I Construction group. We saw their gross margin increase of 21%, which is further evident that our lead focus on energy markets and our exit from non-core municipal electrical construction markets has paid off. Income from domestic operations for the year was up almost 500% to $2.5 million. Income from domestic operations was $700,000 for the quarter, which was up a 113% versus Q4 last year, but was down $100,000 from the $800,000 we reported in last quarter. Moving to our international joint ventures. In 2013, our international JVs reported record aggregate revenues of $105 million, up 6% from 2012. AETI's net equity income after expenses was $2.8 million for the year, essentially flat from 2012. Andy will discuss in more details on our joint ventures, including the Q4 results in his comments in a minute. For the year, we are pleased to announce that AETI net income attributable to common shareholders was up over 100% or $4.2 million. In Q4, net income attributable to common shareholders was $600,000, up 21% from Q4, but down from the $900,000 reported in Q3. I'd like to now turn the call over to our CFO, Andy Puhala, for additional financial details.

Thank you, Charles. To continue were Charles left off, for 2013 we reported EPS of $0.48 per fully diluted share compared to $0.25 per share in 2012. For the fourth quarter, we reported $0.07 per fully diluted share compared to $0.06 per share in the fourth quarter of 2012 and $0.10 in Q3 of this year. The sequential decline is primarily attributable to the reduced activity levels of our foreign joint ventures in Q4. Additionally, our Q4 and 2013 full year results were negatively impacted by our American Access Technologies segment, which reported a loss of $0.7 million for the year, of which $0.4 million was incurred in the fourth quarter. Charles will touch more on AAT, later in the call. As Charles mentioned in his comments, our joint ventures net of expenses had another very strong year overall. Our net equity income from our joint venture companies after expenses was $2.8 million on combined revenues of $105 million. However, our joint ventures performed poorly in Q4 with combined revenues of $5.5 million. AETI's share of the net equity income for the quarter was a loss of $0.2 million after expenses compared to net equity income of $0.4 million in both the sequential and year-over-year quarters. As the JV revenues don't appear in our press release, I wanted to breakdown the international JV activity a bit further. Remember, as minority partners, we only report our share of the net equity income from each of these JVs in our consolidated financials. Our China joint venture, BOMAY, reported revenues of $86.3 million for the year, a 2% increase over 2012's $84.6 million. For the quarter, BOMAY reported revenues of $3.3 million versus $7.6 million in Q4 of 2012 and $18 million in Q3 of this year. Although the results for BOMAY were…

Thanks, Andy. I'd now like to share some more information with you all about our results in Q4 and how we're positioned thus far in 2014. First, we'll talk about our markets. I traditionally begin and I'll begin again with our North American oil and gas sector, which is where we provide power systems and services for the upstream, midstream and downstream oil and gas sectors. Remember, upstream is land and offshore drilling and production, midstream is oil and gas pipeline and gas fractionation plants and downstream market is refining petrochemical facilities as well as LNG operations. For the year, oil and gas revenues were $40.8 million, which represented 62% of our consolidated revenues. For the quarter, 68% of our revenues or $12.4 million came from oil and gas, which is a 16% increase over Q3. Revenues came from projects across the oil and gas markets, with revenues coming from land drilling projects, offshore drilling projects, midstream fractionation segments, et cetera. Gross margin for the year for oil and gas were 19% and were 23% in Q4, with $18.6 million in oil and gas related backlog, which is down from the $27.1 million we had at the end of Q3. Looking ahead, we are seeing some mixed messages across the oil and gas sector. On the positive side, we see external data from company such as ConocoPhillips, who are very bullish on shale as are the folks from Siemens and company. But on the pessimistic side, there are those in the industry that feel that shale plays have had a peak. For us internally, the signs are mixed as well. We've seen a strong increase in land drilling opportunities for both domestic and international exploration, but that's also countered by a reduction in quoting activities related to some of the…

(Operator Instructions) We'll go first to Les Sulewski with Sidoti & Company.

So could you help me understand with backlog, especially, you're seeing a little bit of a decrease in oil and gas, but improvements in power generation and distribution as well as marine? Can you perhaps give us a little bit of guidance on how you see 2014 play out domestically? Is it because of the order size that you mentioned that's lowering? Can you help us to get a little bit more color on that? Sidoti & Company: So could you help me understand with backlog, especially, you're seeing a little bit of a decrease in oil and gas, but improvements in power generation and distribution as well as marine? Can you perhaps give us a little bit of guidance on how you see 2014 play out domestically? Is it because of the order size that you mentioned that's lowering? Can you help us to get a little bit more color on that?

I think as I mentioned, sort of towards the end of the call, one of the interesting dynamics of this better selling is that we got the bunch of large orders last year, right. And we've seen sort of the average size of our orders go from $1 million, $2 million to $3 million, $4 million, $5 million, $6 million, $7 million, $8 million, $9 million type-projects. And so I think what that's doing is just making our backlog a little bit more lumpy, first of all. Second is, we have seen in one part of our business, which is the midstream market, a reduction in, I call it, quoting opportunities. So now versus a year ago there were just more companies pursuing more projects, in the oil and gas business, the thing that's always interesting to me is how quickly some of these things turn on and turn off and then turn back on, all right. And so I can't give you any sort of a future projection of what's going to happen in the midstream market for the year. I think the data is just mix externally and what we see from our customers. I think overall, we still think, the oil and gas markets are good. We see lots of opportunities in the upstream parts of the business. We're still seeing projects moving forward in downstream parts of the business, that's in the oil and gas, but there are still projects in the midstream part of the business, just not as many as there were at the same exact time last year. So there's probably going to be a little bit of margin compression for that particular part of the oil and gas business, which is one of our main market sectors. Power generation and distribution we think looks good. And marine and industrial, if I take the stuff that the M&I groups do, which is this steel and the chemical type-plants, I think that's going to have a reasonable year as well. So I don't know if that gives you sort of the answer that you're looking for, but that's probably the color that probably the key things or the drivers for how we think 2014 is going to look. Les Sulewski - Sidoti & Company: And then, perhaps shifting strategy, how are you focusing on gaining new customers and what kind of feedback are you seeing for yourself there?

This is where I tend to get excited, and I have to be careful because what's been announced and not announced, but what we've, as I mentioned in previous calls, we really did revamped the sales management team and the sales team over the last 12 to 18 months. And we immediately put some of these people into developing relationships and breaking into some of the large players in the industries into their installed base accounts. And normally the sales time to go to sell to customers is six to 12 months and so we're starting to see some breaking wins into some of these very large accounts that we've never had before. So when I talked in the past, I think you remember, I talked about this, we think we were only calling on 20% of the accounts in the markets that we serve. And maybe that number is now up to 25% or maybe a little bit higher, but I think what's really happening is we're starting to get deeper into these accounts and they appreciate our value proposition on this custom, turnkey solution for their energy project requirements. So I think we're actually feeling good about those wins and are excited about sort of what's on the forecast and want to go close those. Les Sulewski - Sidoti & Company: And shifting to gross margin, 19.7% fourth quarter. What's a good rate looking out? I know you had some improvements, just perhaps favorable product mix as well, any kind of outlook on that? What's your take on that, Charles?

I think we're continuing to do the work on the topline, which helps to spread our indirect costs over a wider revenue base. We're continuing to manage the projects as tightly as possible. We've implemented a new engineering management infrastructure. So we've got a sort of a layer of project managers who are getting even tighter on watching the dollars, and the hours, and the costs, and what not, so we're expecting a better visibility there. So I think that's all good. I think the construction business, the further we get away from the municipal construction, gross margin will remain solid. I think the question's from a gross margin for me, as we head into 2014 is, in the midstream market there's going to be some margin compression as those suppliers are fighting for a slightly reduced amount of quoting activity and then the American Access Technologies margins, which are challenging for us right now. But if I look at sort of the core business, I think the margins are good and are continuing to head in the right direction. Les Sulewski - Sidoti & Company: And one last one for you. You mentioned Singapore improving. There is some shifting going on there. Can you talk a little bit more about that? Is this something that's going to be material in size in the near-term and perhaps can it be any larger than what you're currently seeing from BOMAY?

So two things. So one is Singapore is the MIEFE joint venture, and I'll talk about BOMAY in a second. But we are starting to see more opportunities related to Southeast Asia oil and gas. This is offshore drilling. We've had this operation in Singapore, for I think 17 years. MIEFE, I think we're seeing market more quoting opportunities coming in that we are involved with directly and helping them to try to pursue and win. So that's how we get visibility there. And I also think that our new joint venture partner, Sonepar, I forgot the number, $17 billion entity globally. They're one of the largest electrical distributors, if not the largest in the world. Their Asian group acquired our joint venture partner Oakwell, the piece Oakwell had in MIEFE, and they've got a ton of customers and a lot of relationships that we want to go leverage. So I think we're seeing some good things in the market and we're seeing some good things that we can potentially pursue with them. So that's I think what's going on in Singapore. Whether it's going to have a material impact this year, I can't tell you about the number. I am on my way to Singapore in a couple of weeks and we'll have more board meetings, and we'll know from there, in terms of how the plan looks for the year. As you had a question about China, for BOMAY, those are some of the specific I can answer for you. Les Sulewski - Sidoti & Company: No, you almost answered it clear for the most part. I just wanted to see if the possibility of Singapore, MIEFE is anything near in size to BOMAY in terms of sales there?

Probably not in the next year or two. MIEFE I think that $12 million or so this past year, BOMAY did $89 million something like that. But I think we certainly see a nice growth opportunity and expect them to continue growing, but we've got some more work to do. I don't foresee them being a little in the size for the foreseeable future. Les Sulewski - Sidoti & Company: And there was the three combined equity income somewhat relative in 2014 comparable to 2013 would you say?

I think China had a pretty good year. It was heavily front-end loaded and weaker backend. The seasonality thing for China in Q4 seems to starting to getting the pattern, right. The way to think about China is that we think that the market is slightly better, the noises we're hearing are slightly more positive. We won't know for sure until the communist party has ended their meetings and CNPC has their annual plan comes out at the end of Chinese New Year, which will be in the next couple of weeks. So by the end of March we'll have a better visibility at where China looks for the year with their plans. But again, we're feeling more positive about Q1. And look back at what I said in the last call, I was a little bit more less positive than we were positive about China in the first of this year. I think as it compares to last year, last year was a record revenue level. I can't say we're going to have that same level of revenue, but other than that I think the Chinese market is better than where I thought it was in last eight or six months.

We'll go next to Matthew Dhane with Tieton Capital Management.

I was curious, the new sales force hires that you've made, where are they relative to your fully ramped expectations?

Sales takes a while to ramp, as you understand, right. And so I would tell you, I think that the impact that we're getting from the new sales people, overall were probably half way through that new impact, right. All of them are experienced guys, but they're building relationships for us in some new accounts that they may or may not have been calling on. So some of that just takes time and that takes taking the lunch, and that takes spending time with them and selling our value proposition and that whole thing. So what I'm looking at is the initial orders and the break in accounts, that's what we're starting to track internally, right. So this new sales guy broke into this new account, this new sales guy has been told that he is one that's following order, right. Those are the sort of things that I see happening. And that's why I'm judging are they half way there. The reason I don't give them full credit for being all the way there is because we don't see this sort of mass full impact of that sales investments that we made last year, in the backlog or in the revenue yet. So if momentum is high, excitement is high, customers, new customers, plant visits, just the whole thing is all in good swing, so I guess I'd tell you half way.

And I was curious, do you expect to make any additional sales hires this year?

We're viewing in the sales thing is a couple of things. One is, we are sort of turning the knob slightly. We have some of our sales people that call on multiple sectors. So if they're calling on the marine vessel market and the offshore drilling market, if the marine vessel market is down, they'll stop calling on as many customers there and focus more to the percentage of time calling on the offshore drilling market, which is up. So we've done those tuning if you want to call it, in terms of refocusing and doing some resources. There are a couple of additional hires we're looking at making in some of the core oil and gas markets to increase our ability to penetrate those above the 25% to 30%, and maybe call on 40% or 45% in the market. And yes, those are still in play. None have been hired at this point yet, but that's part of the plan for 2014.

Final question for me. The land drilling opportunity, did you spoke that that should be doing a lot better this year? How significant could that end up being?

Let me answer it in a couple of ways. So land drilling projects typically are somewhere between one drilling rig and three drilling rigs, sometimes maybe four, or even up to six drilling rig packages as the drilling contractor gets the project to drill hole somewhere for one of their E&P customers. The part that's interesting for us is that we've transitioned our customers and we're not focusing on the lower technology DC type drilling rigs. We've now, with the acquisition of the company Amnor Technologies, a year-and-a-half-ago, now we have a very strong position, what they called it, the next generation drilling rigs, which is based on AC technology and there's automation, that comes with our DrillAssist. So not only does the value of the power systems and control systems grow up from sort of $500,000 to $700,000 in the DC package to some between $1.2 million and $2 million for an AC package, but the margins go up nicely as well. So if we can continue taking advantage of these AC opportunities we're seeing, aggressive on the sale side, I think we could see some nice business out of that AC land drilling business this year in North America.

There are no further questions at this time.

Thank you, and I look forward to spend time with you at the next call.