Slide 1: 2Q20 Results Conference Call
2Q20 Results Conference Call Investor Presentation
Slide 2: Safe-Harbor Statement
SAFE-HARBOR STATEMENT 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 information. Independent indu
Slide 3: Performance Overview
PERFORMANCE OVERVIEW
Slide 4: 2Q20 Executive Summary
2Q20 EXECUTIVE SUMMARY 1. Net Income increased $1.5 million y/y to $0.5 million > Earnings per share of $0.03 in 2Q20 vs. ($0.06) in 2Q19, second consecutive profitable quarter 2. Total Revenue +33% y/y to $54.9 million: Improved demand from wind, industrial and natural gas turbine markets > Wind ma
Slide 5: 2Q20 Executive Summary (Continued)
2Q20 EXECUTIVE SUMMARY (Continued) 7. Heavy Fabrications revenue +50% y/y: Acceleration in tower sections demand and diversification progress > Tower plants operating near 100% of optimal production capacity > ~$6M of Industrial Fabrication revenue in 2Q20; delivering against our long-term diversifi
Slide 6: Key Financial Data
KEY FINANCIAL DATA Y/Y Growth In Revenue, Gross Profit, Adjusted EBITDA and EPS Sustained Profitability Total Revenue Gross Profit ($MM) ($MM) > Second consecutive quarter of profitability; $198.9 $19.6 Generated net income $141.5 of $0.5 MM or $0.03 per share in 2Q20 $8.4 $54.9 $5.4 $41.2 $3.9 Posi
Slide 7: Heavy Fabrications Segment
HEAVY FABRICATIONS SEGMENT Approximately 90% of Full-Year 2020 Optimal Tower Production Capacity in Backlog Strong Visibility Revenue Adjusted EBITDA ($MM) ($MM) > 2020 Tower production is secured, pursuing orders $153.4 for 2021 production $88.2 $12.9 Revenue Growth $43.6 $29.0 $4.2 $1.5 $2.0 > Hea
Slide 8: Heavy Fabrications Segment: Demand for Tower Sections
HEAVY FABRICATIONS SEGMENT Demand For Tower Sections Total Tower Sections Sold (Number of Sections) +59% y/y +66% y/y +372% y/y +84% y/y 312 320 302 243 201 188 132 64 3Q18 3Q19 4Q18 4Q19 1Q19 1Q20 2Q19 2Q20 Note: In December 2019, the United States production tax credit for renewable wind projects
Slide 9: Gearing Segment
GEARING SEGMENT COVID-19 Impacted Timing of Customer Project Spend and New Orders COVID-19 Negative Revenue Impacts Adjusted EBITDA ($MM) ($MM) $6.0 > Shift in focus to $40.2 industrial and steel markets did not offset $28.7 $2.3 Oil/Gas and mining $1.5 weakness $9.3 $6.9 > Customers delayed nearly
Slide 10: Industrial Solutions Segment
INDUSTRIAL SOLUTIONS SEGMENT Natural Gas Turbine Market Driving Revenue Growth Positive KPI Trend Revenue Adjusted EBITDA ($MM) ($MM) > Y/Y improvement in 2Q20 and TTM $16.8 $1.1 Revenue, Adjusted $13.2 $0.4 EBITDA $0.2 $4.4 Strong Order Growth $2.9 > Natural gas turbine ($1.1) orders up more than 2
Slide 11: Balance Sheet Update
BALANCE SHEET UPDATE Improved Operational Performance / Working Capital Initiatives Bolstering Liquidity Operating Working Capital as a % of Sales(1) 14% 13% 10% 11% 9% 5% 5% 3% 3% 6/30/18 9/30/18 12/31/18 3/31/19 6/30/19 9/30/19 12/31/19 3/31/20 6/30/20 Total Cash and Availability on Credit Facilit
Slide 12: Management Outlook
MANAGEMENT OUTLOOK
Slide 13: COVID-19 Business Response
COVID-19 BUSINESS RESPONSE We Continue to Monitor the Potential Impact of the Pandemic on our Business Employee Health & Safety Liquidity Profile Business Continuity > We are closely monitoring the > Our business is considered critical > The Company remains in full potential impact of the novel and
Slide 14: Demand Outlook by End-Market
DEMAND OUTLOOK BY END-MARKET Customer Guidance Drives Our Outlook Wind Sector Industrial/Other Sector Power Generation Sector > TTM Revenue > TTM Revenue > 69% > TTM Revenue > 8% > Sector Outlook > 8% > Sector Outlook > Positive > Sector Outlook > Positive > Customer Feedback > Positive/Neutral > Cu
Slide 15: U.S. Wind Sector Forecast
U.S. WIND SECTOR FORECAST Onshore Ramp Occurring; Offshore Ramp Accelerating 2023-2025 U.S. Wind Power Onshore and Offshore Capacity Installations Onshore Update (Annual On-Shore GW Installed)(1) > PTC extension expected to drive strong demand in 2021 15.0 > Federal guidance giving 14.0 an extra yea
Slide 16: Key Initiatives by Segment
KEY INITIATIVES BY SEGMENT Positioned For Profitable Growth > Sell ’21 tower capacity and expand tower and repowering customer base > Add production capabilities and complete key systems upgrades to maximize profitability Heavy Fabrications Segment > Move forward with assessment of offshore wind mar
Slide 17: Investment Thesis
INVESTMENT THESIS Diversified Precision Manufacturer Serving Clean Tech and Industrial Applications 1. Leading precision manufacturer with a diversified industry focus > Heritage is in the renewable sector (e.g., Wind); future includes mining, oil/gas, power gen, material handling, construction and
Slide 18: Appendix
APPENDIX
Slide 19: Exhibit A: Orders, Revenues and Operating Income by Segment
EXHIBIT A Orders, Revenues and Operating Income (Loss) By Segment Three Months Ended S ix Months Ended June 30, June 30, 2020 2019 2020 2019 ORDERS: Heavy Fabrications……………………………………………………………… $ 31,401 $ 96,328 $ 46,916 $ 108,839 Gearing……………………………………………………………… 3,731 5,572 16,151 12,707 Industrial So
Slide 20: Exhibit B: GAAP to Non-GAAP Adjusted EBITDA Reconciliation
EXHIBIT B GAAP to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Consolidated Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net Income/(Loss)……………………...……………………………. $ 529 $ (1,018) $ 1,482 $ (2,060) Interest Expense…………………….……………………………………. 474 773 1,147 1,309 Income
Slide 21: Exhibit C: Adjusted EBITDA Reconciliation by Segment
EXHIBIT C GAAP to Non-GAAP Adjusted EBITDA Reconciliation By Segment 21 | Investor Presentation
Slide 22: Exhibit C (Continued)
EXHIBIT C (Continued) GAAP to Non-GAAP Adjusted EBITDA Reconciliation By Segment 22 | Investor Presentation
Slide 23: IR Contact
IR CONTACT Please contact our investor relations team at Investor@BWEN.com