Slide 1: Q4 2013 Investor Call Presentation
Broadwind Energy, Inc. Q4 2013 Investor Call Presentation March 12, 2014 © 2014 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: Q4 2013 Overview
Q4 2013 Overview Business Highlights New orders of $201 million; record backlog of $311 million Revenue of $56.4 million; in line with outlook, up 26% from Q4’12 Gross profit margin* of 7.8%, up 600 bp from Q4’12 Adj. EBITDA of $2.8 million, up $2.1 million from Q4’12 Net debt negative, operating wo
Slide 4: 2013: A Pivotal Year
2013: A Pivotal Year 3/12/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 4 CAGR 12% Expanded backlog; tower capacity is sold out for 2014 and over 50% booked for 2015 Restructuring plan 88% complete; expect to realize incremental $2.4M cost savings in 2014 Sold idle tower facility – better
Slide 5: Orders and Backlog
Orders and Backlog 3/12/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 5 Orders – $ Million New tower orders of $189 million in Q4 2013; 2014 sold out, 2015 over 50% booked Gearing orders of $5.1 million – mainly industrial Services orders lag behind prior year, which included large industr
Slide 6: U.S. Wind Market Forecast
U.S. Wind Market Forecast 3/12/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 6 Assuming 16.4 GW of installations in 2014-2016 ~ 11 GW of turbine orders placed Rebound activity in Texas with new CREZ lines Still 5.0 GW of orders to be awarded as developers rush to advance projects PTC exten
Slide 7: PPA Rates by State
PPA Rates by State 3/12/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 7 Comments Wind assets are being contracted at attractive long-term power rates Further confirmation that costs and efficiencies have greatly improved Further investment will bring wind to parity with fossil fuels Wind p
Slide 8: Gearing Turnaround: Key Areas
Gearing Turnaround: 4 Key Areas 3/12/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 8 Increasing orders / sales Added 5 manufacturers’ reps 3x customer coverage Aligned workforce to revenue Reduced work force by 20% Add selectively as revenue rebounds Continued focus on on-time delivery Bet
Slide 9: 2014 Priorities
2014 Priorities Achieve accounting profitability... first time in the Company’s history Achieve top line growth of 20% YOY Achieve positive EBITDA in Gearing Complete Gearing Kaizen roadmap that focuses on on-time delivery, first pass yield and safety Show clear progress in penetrating the $110 B en
Slide 10: Consolidated Financial Results Q4 2013
Consolidated Financial Results 3/12/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 10 Q4 2013 Comments Sales up 26% from Q4 2012 –Towers and Weldments up 69% over prior year, partly offset by challenges in Gearing and Services Gross margin (ex. restructuring) up 600 bp from Q4 2012 – improv
Slide 11: Towers and Weldments Fourth Quarter 2013
Towers and Weldments 3/12/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 11 Fourth Quarter 2013 Tower volume increased 61% compared to weak Q4 2012 Q4 2013 productivity increased from process improvements and simplified mix Adj. EBITDA margin improved nearly 4x due to higher volumes, better
Slide 12: Gearing Fourth Quarter 2013
Gearing 3/12/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 12 Fourth Quarter 2013 Revenue affected by production delays related to product mix and by industrial end-market softness Adj. EBITDA decline due to lower volumes and margins and adverse manufacturing variances, partly offset by ot
Slide 13: Services Fourth Quarter 2013
Services 3/12/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 13 Fourth Quarter 2013 Revenue down 67% from Q4 2012 – lower industrial gearbox assembly work and depressed field service work resulting from period of low wind turbine installations Services work being in-sourced and longer OEM w
Slide 14: Operating Working Capital
Operating Working Capital 3/12/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 14 12/31/13 operating working capital increased $.4 million from 9/30/13 to $5.3 million, or 2% of annualized Q4 2013 sales Receivables dropped from Q3 2013 resulting from strong cash collections, offset by increa
Slide 15: Debt and Liquidity
Debt and Liquidity 3/12/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 15 Net debt negative – cash and related assets increased $2 million to $26 million from Q3 2013 Debt balance includes $3 million of forgivable economic development grants or New Markets Tax Credit financing Line of credi
Slide 16: 2014 Financial Outlook
2014 Financial Outlook 3/12/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 16 2014 EPS Walk Q1 and Q4 are typically the weakest quarters Revenue growth mainly from the Towers & Weldments Segment FY 2010 FY 2011 FY 2012 FY 2013 2014 E Q1 14 Q1 13 Revenue-$M 137.0 186.0 210.7 215.7 260-270 61
Slide 17: 2013-2014 EPS
2013-2014 EPS 3/12/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 17
Slide 18: Restructuring and Other Updates
Restructuring and Other Updates 3/12/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 18 Other Updates Restatement Restructuring 2011-12 2013 Total Incurred Total Projected % Incurred Capital Spending 2.6 2.4 5.0 5.8 86% Cash Expenses 1.8 3.5 5.3 6.2 85% Total Outlays 4.4 5.9 10.3 12.0 86% Ga
Slide 19: 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. 19 © 2014 Broadwind Energy, Inc. Al