Slide 1: Second Quarter 2021 Results Conference Call
Second 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 2Q21 Results Management Outlook As of August 2021 Performance Overview As of August 2021 Renewable energy tax credits in focus 2Q21 challenged by tower project delays Plant utilization outlook Biden Administration is proposing
Slide 5: Consolidated Financial Data
CONSOLIDATED FINANCIAL DATA Revenue declined 15% y/y, as wind tower projects were delayed to 2H21 Total Revenue(1) Gross Profit(1) ($MM) ($MM) • Total revenue declined $198.9 $174.2 $19.6 15% y/y to $46.5 million, primarily within Heavy Fabrication segment $8.9 $54.9 $46.5 $5.4 $2.2 • PPP and ERC pr
Slide 6: Heavy Fabrications Segment
HEAVY FABRICATIONS SEGMENT Higher raw materials costs and PTC extension uncertainty have pushed some projects out of 2021 • Revenue declined $7.8 million y/y to $35.8 million Segment Revenue Segment Adjusted EBITDA due to a decline in wind ($MM) ($MM) tower sections sold, lower ASP’s and lower indus
Slide 7: Heavy Fabrications Segment: Tower plant utilization
HEAVY FABRICATIONS SEGMENT Tower plant utilization expected to be ~50% in 2H 2021 • Expect tower facilities to Total Wind Tower Sections Sold Escalation in Raw Materials Costs (Indexed be at approximately 50% (Number of Sections)(1) Price of Steel Per Ton)(2) utilization in the second half 2021, giv
Slide 8: Gearing Segment
GEARING SEGMENT Y/Y growth in revenue, orders and backlog supported by recovery in energy sector demand Segment Revenue Segment Adjusted EBITDA • Revenue increased 7% y/y ($MM) in 2Q21; customer activity ($MM) is accelerating, particularly $28.7 $2.9 within energy sector $24.7 $2.3 • Orders increase
Slide 9: Industrial Solutions Segment
INDUSTRIAL SOLUTIONS SEGMENT Revenue impacted by timing of natural gas turbine customer orders • Revenue declined 19% y/y Segment Revenue Segment Adjusted EBITDA driven by lower demand ($MM) ($MM) for gas turbine $1.9 $18.0 components $16.8 • Orders declined y/y due to $1.1 a change in the timing of
Slide 10: Balance Sheet Update
BALANCE SHEET UPDATE Nearly $24 million of cash and availability to support growth as of 6/30/21 Quarter-End Operating Working Capital as a % of Sales(1) 13% 9% 9% 9% 6% 5% 3% 3% 3% 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Quarter-End Total Cash and Availability on Credit Facility ($MM) $24.1 $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) 15.3 6.0 14.6 5.6 11.6 11.7
Slide 12: Customer Diversification Initiative
CUSTOMER DIVERSIFICATION INITIATIVE Balanced revenue mix supports long-term growth and profitability Wind vs. Non-Wind Revenue Fastest Growing Non-Wind Sectors Since 2016 • Wind and renewables remain our core industry Concentration (Absolute Growth in Revenue) focus (% of Total Revenue)(1) • Revenue
Slide 13: Appendix
APPENDIX
Slide 14: Exhibit A
EXHIBIT A Revenues and Operating Income (Loss) Consolidated and by Segment Three Months Ended S ix Months Ended June 30, June 30, 2021 2020 2021 2020 ORDERS: Heavy Fabrications……………………………………………………………… $ 14,760 $ 31,401 $ 35,557 $ 46,916 Gearing……………………………………………………………… 7,858 3,731 17,778 16,151 Indus
Slide 15: Exhibit B
EXHIBIT B GAAP to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Consolidated Three Months Ended June 30, S ix Months Ended June 30, 2021 2020 2021 2020 Net Income……………..…………...……………………………………… $ 10,252 $ 529 $ 9,042 $ 1,482 Interest Expense…………………….……………………………………. 318 474 547 1,147 Income Tax
Slide 16: Exhibit C
EXHIBIT C Consolidated Statement of Cash Flows Six Months Ended June 30, 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Net income…...…………………………………………………………………………………………… $ 9,042 $ 1,482 Adjustments to reconcile net cash used in operating activities: Depreciation and amortization expense………………………………
Slide 17: Exhibit D
EXHIBIT D Consolidated Balance Sheet 17 | Investor Presentation
Slide 18: IR Contact
IR CONTACT Please contact our investor relations team at Investor@BWEN.com