Slide 1: Third Quarter 2021 Results Conference Call
Third Quarter 2021 Results Conference Call Investor Presentation
Slide 2: Safe-Harbor Statement
SAFE-HARBOR STATEMENT This release contains “forward looking statements”—that is, statements related to future, not past, events—as defined in Section 21E of the Securities Exchange Act of 1934, as amended, that reflect our current expectations regarding our future growth, results of operations, fin
Slide 3: Performance Overview
PERFORMANCE OVERVIEW
Slide 4: Executive Summary
EXECUTIVE SUMMARY Market update, recent results and outlook Market Update 3Q21 Results Management Outlook As of November 2021 Performance Overview As of November 2021 Policy environment remains in focus 3Q21 challenged by tower project delays Wind tower plant utilization Biden Administration is prop
Slide 5: Consolidated Financial Data
CONSOLIDATED FINANCIAL DATA Third quarter results impacted by near-term pause in wind tower demand • Total revenue declined 26% Total Revenue(1) Gross Profit(1) y/y to $40.4 million ($MM) ($MM) $207.4 • Revenue growth in Gearing $19.3 and Industrial Solutions $159.9 more than offset by y/y decline i
Slide 6: Heavy Fabrications Segment
HEAVY FABRICATIONS SEGMENT Near-term wind tower demand impacted by customer project delays Segment Revenue Segment Adjusted EBITDA • Revenue declined 34% y/y ($MM) $163.0 ($MM) to $28.7 million due to lower near-term demand for wind towers $117.1 • Fluid policy environment, $14.1 $15.5 higher raw ma
Slide 7: Heavy Fabrications Segment
HEAVY FABRICATIONS SEGMENT Wind tower sections sold declined 37% y/y, due in part to rising raw material costs Total Wind Tower Sections Sold Escalation in Raw Materials Costs • Expect tower facilities to be (Number of Sections)(1) (Price of Steel Per Ton)(2) operating at approximately 50% utilizati
Slide 8: Gearing Segment
GEARING SEGMENT Y/Y growth in revenue, adj. EBITDA, orders and backlog supported by non-wind end-markets • Revenue increased 6% y/y Segment Revenue Segment Adjusted EBITDA in 3Q21; customer activity ($MM) ($MM) $27.9 $2.1 continues to accelerate $25.2 within the energy sector, given recent commodity
Slide 9: Industrial Solutions Segment
INDUSTRIAL SOLUTIONS SEGMENT Benefited from a recovery in natural gas turbine customer demand Segment Revenue Segment Adjusted EBITDA • Revenue increased 3% y/y ($MM) ($MM) driven by improved demand $18.1 $16.6 $1.7 for gas turbine components • Orders declined 9% y/y due $1.0 to a change in the timi
Slide 10: Balance Sheet Update
BALANCE SHEET UPDATE $21 million of cash and availability to support growth as of 9/30/21 Quarter-End Operating Working Capital as a % of Sales (1) 12% 9% 9% 9% 6% 5% 3% 3% 3% 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Quarter-End Total Cash and Availability on Credit Facility ($MM) $24.1 $23.7 $2
Slide 11: U.S. Wind Power Installation Forecast
U.S. WIND POWER INSTALLATION FORECAST Biden Administration considering multi-year extension of the Production Tax Credit U.S. Onshore Wind Capacity Installations U.S. Offshore Wind Capacity Installations (Annual On-Shore GW Installed)(1) (Annual Off-Shore GW Installed)(1) 2Q21 Forecast 3Q21 Forecast
Slide 12: Customer Diversification Initiative
CUSTOMER DIVERSIFICATION INITIATIVE Balanced revenue mix supports long-term growth and profitability Wind vs. Non-Wind Revenue Concentration Fastest Growing Non-Wind Sectors Since 2016 • Wind and renewables remain our core industry (% of Total Revenue)(1) (Absolute Growth in Revenue) focus Wind Reve
Slide 13: Appendix
APPENDIX
Slide 14: Exhibit A: Orders, Revenues & Operating Income
EXHIBIT A Orders, Revenues & Operating Income (Loss) Consolidated and by Segment Three Months Ended Nine Months Ended S eptember 30, S eptember 30, 2021 2020 2021 2020 ORDERS: Heavy Fabrications……………………………………………………………… $ 26,539 $ 31,391 $ 62,096 $ 78,306 Gearing……………………………………………………………… 11,546 3,225
Slide 15: Exhibit B: GAAP to Non-GAAP Adjusted EBITDA Reconciliation
EXHIBIT B GAAP to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Consolidated Three Months Ended S eptember 30, Nine Months Ended S eptember 30, 2021 2020 2021 2020 Net (Loss) Income……………..…………...……………………………………… $ (2,105) $ (1,003) $ 6,937 $ 480 Interest Expense…………………….……………………………………. 269 507
Slide 16: Exhibit C: Consolidated Statement of Cash Flows
EXHIBIT C Consolidated Statement of Cash Flows 16 | Investor Presentation
Slide 17: Exhibit D: Consolidated Balance Sheet
EXHIBIT D Consolidated Balance Sheet 17 | Investor Presentation
Slide 18: IR Contact
IR CONTACT Please contact our investor relations team at Investor@BWEN.com