Broadwind, Inc. · NASDAQ:BWEN
Broadwind — Broadwind Energy — Q3 2015 Earnings Presentation
12 slides from Broadwind's earnings presentation, Oct 29, 2015
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: Annual Tower Production
10/29/15 © 2015 Broadwind Energy, Inc. All rights reserved. 3 Annual Tower Production Ramp up to full capacity tower production has been difficult Key changes will enable us to produce at full capacity Challenges: West Coast port strike Supplier quality issues Change process management Solutions: Mo
Slide 3: Wind Market - Drivers
Wind Market - Drivers 10/29/15 © 2015 Broadwind Energy, Inc. All rights reserved. 4 >13,250 MW under construction 50% in TX 19% in Midwest 16% in Plains states Source: AWEA Q315 Market Report Tower Market Dynamics: Strong wind investment from non-utility purchasers of wind energy in Q3 15 Costs driv
Slide 4: Orders and Backlog
Orders and Backlog Orders – $M Orders in Q3 15 down compared to Q3 14 due to timing of large tower orders $3M follow-on tower order; expect to announce significant orders in Q4 15 Gearing – $7M in wind replacement gearing orders Order Backlog – $M Backlog at 9/30/15 totaled $128M Negotiating tower o
Slide 5: Consolidated Financial Results
Consolidated Financial Results 10/29/15 © 2015 Broadwind Energy, Inc. All rights reserved. 6 Sales down 10% from Q3 2014: Towers and Weldments -5%, Gearing -30% Gross margin of 5.7% – down 190 bp from Q3 2014 due to less profitable tower mix Operating expense 8.2% of sales in Q3 2015 – down 80 bp fr
Slide 6: Towers and Weldments
Towers and Weldments Q3 2014 Q3 2015 YTD 2014 YTD 2015 Orders ($M) $51.7 $3.2 $56.6 $66.3 Towers Sold (#) 107 112 334 357 Revenue ($M) 45.1 42.9 146.3 139.0 Operating Inc ($M) 3.4 2.2 17.5 10.5 -% of Sales 7% 5% 12% 8% Adj. EBITDA ($M) 4.4 3.5 20.6 13.7 - % of Sales 10% 8% 14% 10% Q3 Results Towers
Slide 7: Gearing
Gearing Q3 2014 Q3 2015 YTD 2014 YTD 2015 Orders ($M) $9.1 $9.0 $36.1 $22.5 Revenue ($M) 10.3 7.2 31.5 23.8 Operating Loss ($M) -2.3 -2.6 -7.1 -5.4 Adj. EBITDA ($M) -.1 -.5 -.3 -.6 Q3 Results Orders flat – wind up, oil and gas down Revenue down 30% in Q3, 25% YTD – oil and gas and mining Operating L
Slide 8: Liquidity
Liquidity 10/29/15 © 2015 Broadwind Energy, Inc. All rights reserved. 9 Free cash flow in Q3 totaled $5M Inventories declined >$5M in Q3; expected to decline further $3-5M by year-end Working capital declined $6M, primarily due to inventory reduction; expected to decline further by $6-8M by year-end
Slide 9: Balance Sheet
Balance Sheet YE 2014 Q1 15 Q2 15 Q3 15 Cash Assets $20.2 $.2 $.6 $4.8 Op Working Capital 8.2 25.9 33.6 27.6 Net PPE 58.5 57.1 54.6 53.6 Other Assets 7.5 7.1 6.6 7.0 Assets Held for Sale 12.3 9.8 11.4 6.9 (Debt and Cap Leases) (4.0) (4.9) (8.9) (8.1) (Other Liabilities) (12.8) (10.4) (10.8) (11.3) (
Slide 10: Consolidated Outlook
Consolidated Outlook 10/29/15 © 2015 Broadwind Energy, Inc. All rights reserved. 11 * Estimate Q4 Outlook Assumptions Tower production declines due to more difficult mix and fewer work days Gearing continues to manage well through oil & gas and mining downturn; savings from consolidation in effect,
Slide 11: 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. 10/29/15 © 2015 Broadwind Energy, I
Slide 12: Broadwind Energy is committed to helping customers maximize performance
Broadwind Energy is committed to helping customers maximize performance of their energy and infrastructure investments— quicker, easier and smarter.