Broadwind, Inc. · NASDAQ:BWEN
Broadwind — Broadwind Energy — Q4 2015 Earnings Presentation
13 slides from Broadwind's earnings presentation, Feb 26, 2016
Slide 1: Industry Data and Forward-Looking Statements Disclaimer
Industry Data and Forward-Looking Statements Disclaimer Broadwind obtained the industry and market data used throughout this presentation from our own research, internal surveys and studies conducted by third parties, independent industry associations or general publications and other publicly avail
Slide 2: 2016 Priorities
2016 Priorities Double order intake Maintain consistent tower production Aggressively manage costs 2/26/16 © 2016 Broadwind Energy, Inc. All rights reserved. 3
Slide 3: Wind Market Update
Wind Market Update 2/26/16 © 2016 Broadwind Energy, Inc. All rights reserved. 4 U.S. Market Outlook, 2015-2021e (GW) Longest planning horizon in industry history Eliminates costly start/stop inefficiencies Economics/ potential CPP become installation drivers as PTC expires Shift toward direct buys b
Slide 4: Orders and Backlog
Orders and Backlog Orders – $M $69M in Towers & Weldments orders in 2015 – reduction in steel prices passed through to customers and lower weldments orders 2015 Gearing orders down sharply from PY – weaker demand from oil & gas and mining customers Order Backlog – $M Ending backlog $93.9M ~ 6 months
Slide 5: Liquidity
Liquidity 2/26/16 © 2016 Broadwind Energy, Inc. All rights reserved. 6 Inventories declined $10M in Q4 2015 Operating working capital declined $17M in Q4 2015 primarily due to inventory reduction and reduced receivables reflecting shorter payment terms for towers produced Paid down $2M of debt in Q4
Slide 6: Consolidated Financial Results
Consolidated Financial Results 2/26/16 © 2016 Broadwind Energy, Inc. All rights reserved. 7 Sales down 24%; Towers and Weldments -17%, Gearing -46% Gross margin, profit and EPS declines all due primarily to Abilene Towers production challenges and weaker Gearing volumes from oil & gas and mining cus
Slide 7: Towers and Weldments
Towers and Weldments Q4 2014 Q4 2015 FY 2014 FY 2015 Orders ($M) $21.1 $2.8 $77.6 $69.1 Towers Sold (#) 101 93 435 450 Revenue ($M) 38.6 31.9 184.9 170.9 Operating Inc/(Loss) ($M) 0.5 -5.8 18.1 4.7 -% of Sales 1.4% -18.2% 9.8% 2.8% *Non-GAAP Adj. EBITDA ($M) 1.6 -4.2 22.3 9.5 - % of Sales 4.2% -13.1
Slide 8: Gearing
Gearing Q4 2014 Q4 2015 FY 2014 FY 2015 Orders ($M) 6.9 2.1 42.9 24.9 Revenue ($M) 10.7 5.8 42.3 29.6 Operating Loss ($M) -2.4 -2.9 -9.4 -8.2 * Non-GAAP Adj. EBITDA ($M) -0.7 -1.5 -1.0 -2.1 Q4 Results Orders down – oil & gas orders down $3M, industrial down $1.5M Revenue down 46% – oil & gas and min
Slide 9: Consolidated Outlook Estimate
Consolidated Outlook 2/26/16 © 2016 Broadwind Energy, Inc. All rights reserved. 10 Estimate Q1 16 Outlook Assumptions Tower production stabilized in late January Gearing continues to manage well through oil & gas and mining downturn; savings from consolidation in effect, aggressive cost management c
Slide 10: NOL Rights Plan Amendment Update
NOL Rights Plan Amendment Update 2/26/15 © 2015 Broadwind Energy, Inc. All rights reserved. 11 Amendment adopted by BOD, will be voted on at annual stockholders meeting Designed to protect $202 million NOL carry-forward assets Triggered upon certain beneficial ownership changes; increases in stock o
Slide 11: Appendix – Non-GAAP Financial Measure
Appendix – Non-GAAP Financial Measure Non-GAAP Financial Measure The Company provides non-GAAP adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, and stock compensation) as supplemental information regarding the Company’s business performance. The Company believes t
Slide 12: Click to edit Master title style Click to edit Master text styles Second level
Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level Broadwind Energy is committed to helping customers maximize performance of their energy and infrastructure investments— quicker, easier and smarter. 2/26/16 © 2016 Broadwind Energy, In
Slide 13: Broadwind Energy is committed to helping customers
Broadwind Energy is committed to helping customers maximize performance of their energy and infrastructure investments— quicker, easier and smarter.