Slide 1: Q1 2017 Earnings Call
Q1 2017 Earnings Call May 2, 2017
Slide 2: Industry Data and Forward-Looking Statements
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 ava
Slide 3: Q1 2017 Highlights
Q1 2017 Highlights • Completed Red Wolf acquisition—provides new growth platform and exposure to gas-fired utility scale turbine market • Q1 revenue up 20%; strong results from Towers—volume, productivity and overhead absorption all favorable • Gross Profit rose ~300 basis points to 11.4% • $.43 EPS
Slide 4: Orders and Backlog
Orders and Backlog Orders – $M Backlog – $M Q1 Q1 Book : FY 2016 2017 Bill 2016 Ratio 350 Millions Towers & 35.4 29.1 0.6 260.8 300 Weldments 250 200 Gearing 3.5 7.3 1.9 14.2 150 100 Process n/a 3.6 1.1 n/a 50 Systems - Total 39.0 40.0 .71 275.0 Q1 1 2 Q1 1 3 Q1 1 4 Q1 1 5 Q1 1 6 Q1 1 7 $29M of new
Slide 5: Wind Market Update
Wind Market Update Geographic Breakdown of Wind Power Wind Power Capacity Under Construction/Advanced Under Construction/in Advanced Development Development Others 8% Texas/Plains CO/NM 43% 12% Midwest 37% Source: AWEA Q1 17 Market Report Source: AWEA Q1 17 Market Report ~21 GW under construction
Slide 6: Gear Market Update
Gear Market Update US Gear Demand 2016 2017 by Market % Chg. % Chg. Turbines/Power -24.9 +11.0 Oil & Gas -37.8 +17.7 Mining -17.1 +11.5 Other Industrial -3.2 +11.4 US Total -16.6 +6.4 Source: IHS Source: IHS Third upward revision of US gear demand forecast within last 8 months May 2, 2017
Slide 7: BWEN Consolidated Financial Results
BWEN Consolidated Financial Results Q1 2016 2017 Total Sales $ 46.8 $ 56.1 Gross Profit 4.0 6.4 Gross Profit % 8.5% 11.4% Total Operating Expense 4.2 4.8 Income from Operations -0.2 1.6 % of Sales -0.5% 2.0% Adj. EBITDA 1.7 3.9 % of Sales 3.6% 7.0% EPS, Continuing -0.02 0.43 Memo: Net I/(L) incl. Di
Slide 8: Towers and Weldments
Towers and Weldments Q1 Q1 FY 2016 2017 2016 Q1 Results Orders ($M) 35.4 29.1 260.8 Towers sold +12% vs. Q1 16 – Towers Sold (#) 119 133 458 improved throughput in Abilene; Revenue ($M) 42.0 48.9 160.2 strong demand for 100% PTC Operating Income ($M) 3.2 5.8 12.8 qualification -% of Sales 7.7% 11.9
Slide 9: Gearing
Gearing Q1 Q1 FY Q1 Results 2016 2017 2016 Orders up significantly – oil & gas and Orders ($M) 3.5 7.3 14.2 industrial Revenue ($M) 4.8 3.9 20.6 Revenue down due to low order intake in Operating Loss -1.2 -1.5 -3.2 2H 16 ($M) Operating loss slightly worse – lower EBITDA* ($M) -0.5 -0.9 -0.6 sales
Slide 10: Process Systems
Process Systems Q1 Q1 2016 2017 Q1 Results Orders ($M) n/a 3.6 Process Systems includes Abilene-based CNG, and Red Wolf as of Feb 1 Revenue ($M) n/a 3.3 Q1 Orders include Red Wolf $2.3M and CNG $1.2M Operating Loss ($M) n/a -0.8 No CNG units shipped in Q1 Results include $0.5M of inventory E
Slide 11: Operating Working Capital (OWC)
Operating Working Capital (OWC) OWC* Management OWC* Historical Trend – cents/$ sales $0.20 12/31/16 3/31/17 $0.18 $0.16 DSO 22 39 $0.14 Inv. Turns 8.2 7.7 $0.12 $0.10 DPO 33 36 $0.08 $0.06 Cash Conv. (days) 0 28 $0.04 $0.02 $- *Operating Working Capital = Trade A/R + Inventories – Trade Payables –
Slide 12: Balance Sheet and Capital Expenditures
Balance Sheet and Capital Expenditures (In Millions) Cap Ex- % of Revenue 12/31/2016 3/31/2017 Cash Assets $ 21.9 $ 0.3 Abilene Expansion and Accounts Receivable 11.9 23.7 Coatings Improvements Inventory 21.2 25.8 5.8% 5.4% PPE 54.6 56.0 4.8% Other 8.1 25.9 Total Assets 117.7 131.7 Accounts Payable
Slide 13: 2017 Guidance and Priorities
2017 Guidance and Priorities Q2 Q2 FY FY 2016 2017 2016 2017 Revenue ($M) $46.8 $43-45 $180.8 $180-185 EBITDA* ($M) $1.7 $1.5-2 $9.6 > $11 EPS ($.02) ($.05) $.09 $.44-.46** *Reconciliation to non-GAAP measure included in Appendix ** Includes one-time tax benefit of $.34/share Sell remaining 2017-2
Slide 14: Appendix
Appendix Consolidated Three Months Ended March 31, Process Systems Three Months Ended March 31, 2017 2016 2017 2016 Net Income/(Loss) from continuing operations……………………………. $ 6,482 $ (358) Net Income/(Loss)……………………………. $ (699) $ - Interest Expense…………………………………. 139 154 Interest Expense………………………………….
Slide 15: Broadwind Energy is a precision manufacturer for clean tech
Broadwind Energy is a precision manufacturer of structures, equipment & components for clean tech and other specialized applications. www.BWEN.com May 2, 2017