Slide 1: Broadwind Energy, Inc. Q3 2013 Investor Call Presentation
Broadwind Energy, Inc. Q3 2013 Investor Call Presentation © 2013 Broadwind Energy, Inc. All Rights Reserved.
Slide 2: Industry Disclaimer and Forward Looking Statements
Industry Disclaimer and Forward Looking Statements 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 available
Slide 3: Q3 2013 Overview
Q3 2013 Overview Business Highlights New orders of $87 million; excludes $106 million tower order received after quarter-end Revenue of $62.4 million, beat outlook and up 13% from prior year Gross profit margin (ex. restructuring) rose to 9.1%, up 370 bp from Q3 2012 Adj. EBITDA of $2.6 million – $4
Slide 4: Orders and Backlog
Orders and Backlog 10/31/2013 © 2013 Broadwind Energy, Inc. All rights reserved. 4 Orders – $ Million New tower orders of $70 million $106 million in tower orders received after quarter-end; 2014 tower capacity substantially sold out, taking orders for 2015 Gearing orders of $13 million – mainly rep
Slide 5: Wind – A Part Of The US Energy Mix
Wind – A Part Of The US Energy Mix 10/31/2013 © 2013 Broadwind Energy, Inc. All rights reserved. 5 Levelized Cost $ / MWhr Levelized Cost of Energy Notable 2013 PPA/Project Announcements MidAmerican Energy – 1,050 MW Public Service Co. of Oklahoma – 600 MW Northern States Power – 600 MW Austin Energ
Slide 6: Gearing Turnaround
Gearing Turnaround 10/31/2013 © 2013 Broadwind Energy, Inc. All rights reserved. 6 Total Cost $9M cash, $5M non -cash Annual Savings ~$3.5M Comments Reduced 25 heads, saving $1.7 million annually Restructuring – $1.1 million benefit in 2013, expect $2.4 million incremental benefit in 2014 5 Kaizen e
Slide 7: Consolidated Financial Results
Consolidated Financial Results 10/31/2013 © 2013 Broadwind Energy, Inc. All rights reserved. 7 Q3 2013 Comments Sales up 13% from Q3 2012 – record quarter for Towers and Weldments partly offset by challenges in Gearing and Services Gross margin (ex. restructuring) up 370 bp from Q3 2012 – improved t
Slide 8: Profitability Progress
Profitability Progress 10/31/2013 © 2013 Broadwind Energy, Inc. All rights reserved. 8 9-11% 9-10% Gross Margin Improvements Less variable mix and production enhancements – Towers Square footage reduction (restructuring) Challenges Rising share of gearboxes – Gearing Soft end markets for Gearing – m
Slide 9: Towers and Weldments Third Quarter 2013
Towers and Weldments 10/31/2013 © 2013 Broadwind Energy, Inc. All rights reserved. 9 Third Quarter 2013 Strongest quarter on record for Towers Tower section volume increased 18% compared to Q3 2012 Q3 2013 productivity increase from process improvements and more uniform tower types Adj. EBITDA margi
Slide 10: Gearing Third Quarter 2013
Gearing 10/31/2013 © 2013 Broadwind Energy, Inc. All rights reserved. 10 Third Quarter 2013 Revenue affected by production delays related to product mix and by industrial end-market softness Adj. EBITDA decline due to regulatory settlement charge of $1.5M, lower volumes and margins, partly offset by
Slide 11: Services Third Quarter 2013
Services 10/31/2013 © 2013 Broadwind Energy, Inc. All rights reserved. 11 Third Quarter 2013 Revenue down 46% from Q3 2012 – lower gearbox sales and depressed field service work resulting from period of low wind turbine installations Services work being in-sourced and longer OEM warranties contribut
Slide 12: Operating Working Capital
Operating Working Capital 10/31/2013 © 2013 Broadwind Energy, Inc. All rights reserved. 12 9/30/13 operating working capital decreased $5.5 million from 6/30/13 to $4 million, or 2% of annualized Q3 2013 sales Inventories dropped from Q2 2013 related to the shipment of $4.4 million of towers produce
Slide 13: Debt and Liquidity
Debt and Liquidity 10/31/2013 © 2013 Broadwind Energy, Inc. All rights reserved. 13 Net debt negative – cash and related assets increased $6 million from Q2 2013 Debt balance includes $3 million which is either forgivable economic development grants or New Markets Tax Credit financing Capital leases
Slide 14: 2013 Financial Outlook
2013 Financial Outlook 10/31/2013 © 2013 Broadwind Energy, Inc. All rights reserved. 14 Towers and Weldments: Greater revenue visibility given improved supply/demand balance Level-loading, fewer tower types increasing throughput, efficiencies and margins Gearing: Revenue and end-market demand down f
Slide 15: Other Updates
Other Updates 10/31/2013 © 2013 Broadwind Energy, Inc. All rights reserved. 15 Other Updates Regulatory Settlement Auditor 2011-12 YTD 2013 Total Incurred Total Projected % Incurred Capital Spending 2.6 2.0 4.6 5.8 79% Cash Expenses 1.8 2.9 4.7 5.7 82% Total Outlays 4.4 4.9 9.3 11.5 80% Gain on Sale
Slide 16: Broadwind Energy is committed to helping customers maximize performance of their energy and infrastructure
Broadwind Energy is committed to helping customers maximize performance of their energy and infrastructure investments— quicker, easier and smarter. 16 © 2013 Broadwind Energy, Inc. All rights reserved. 10/31/2013