Slide 1: Q3 Investor Call Presentation
Q3 Investor Call Presentation October 30, 2014 © 2014 Broadwind Energy, Inc. All rights reserved. 1
Slide 2: 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 3: Q3 2014 Overview
Q3 2014 Overview 10/30/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 3 End Market Environments Wind – Strong fundamentals from cost and demand perspective Oil & Gas – strong demand for gearing and fabrications Steel – strong demand for gearing Mining – demand remains flat for gearing and f
Slide 4: Orders and Backlog
Orders and Backlog © 2014 Broadwind Energy, Inc. All rights reserved. 4 Orders – $M $52M in Towers & Weldments orders in Q3 14; near tower production capacity for 2015 Strong increase in Oil and Gas orders, down from PY due to timing of a large wind replacement gearing order; YTD well ahead of PY Se
Slide 5: Towers Update
Towers Update 10/30/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 5 Challenges 12 towers fell out of quarter due to production inefficiencies Abilene hrs/section nearly 2/3 higher than expected Abilene first pass yield fell by 5x Additional maintenance spend $500K + due to poor scheduled m
Slide 6: Gearing Fundamentals
Gearing Fundamentals © 2014 Broadwind Energy, Inc. All rights reserved. 6 Market Trend Highlights Wind + Replacement Gearing O&G + Strong Market Drivers Steel + Increase in Capex Spend Mining - Little Growth Productivity Inventory Turns 10/30/2014
Slide 7: Wind Market – Drivers
Wind Market – Drivers 10/30/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 7 Market Drivers 58% reduction in the cost of energy Regulation 111d retiring older coal generation, creating partial demand for wind New financing vehicles like Yield Co’s Larger rotors have opened new geographic ar
Slide 8: Consolidated Financial Results
Consolidated Financial Results 10/30/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 8 Q3 2014 Comments Sales down 1% from Q3 2013 –Towers and Weldments -4%, Services + 36% Gross margin (ex. restructuring) – down 270 bp from Q3 2013 due to lower volumes in Towers and Weldments Operating expe
Slide 9: Towers and Weldments Third Quarter 2014 Highlights
Towers and Weldments 10/30/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 9 Third Quarter 2014 Highlights Tower volume down 14% from Q3 2013 EBITDA down $3M; challenges with new tower design and scaling up to full production capacity caused significant cost overruns in Abilene Maintenance $
Slide 10: Gearing Third Quarter 2014 Highlights
Gearing 10/30/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 10 Revenue in-line with Q3 2013 EBITDA better than PY due to higher margin mix and absence of regulatory charge Operating loss reduced by 57% due to higher margin mix, lower restructuring costs and absence of regulatory charge Inv
Slide 11: Services Third Quarter 2014 Highlights
Services 10/30/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 11 Third Quarter 2014 Highlights Industry recovering – quoting activity up; highest quarterly order rate since Q4 2012 Revenue up 36% from Q3 2013 – continued strong demand for service techs and blade repair EBITDA loss cut in ha
Slide 12: Operating Working Capital
Operating Working Capital 10/30/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 12 9/30/14 OWC decreased $14.4 Million from 6/30/14 to $11.5 Million OWC was 5% of annualized Q3 2014 sales Inventory decreased, trade payables and customer deposits increased *Operating Working Capital = Trade R
Slide 13: Debt and Liquidity
Debt and Liquidity 10/30/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 13 Net debt negative Debt and capital leases less than $5M $20M credit line remained undrawn at 9/30/14 BWEN Board authorizes $10M stock repurchase program
Slide 14: 2014 Financial Outlook
2014 Financial Outlook 10/30/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 14 2014 EPS Walk Q4 expected to be in-line with prior year Full year estimates show continued solid improvement over prior year; Revenue up 15%, operating loss reduced by >70% 2014 estimated EPS loss includes $.11 c
Slide 15: Summary
Summary Q3 Towers challenges were associated with one facility and will be corrected 2014 financial results should show good improvement over 2013 Solid order backlog to support strong 2015 revenue Wind market fundamentals are strong Oil & Gas markets strong monitoring oil prices closely Strong liqu
Slide 16: Click to edit Master title style Click to edit Master text styles Second level
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