Slide 1: Fourth Quarter 2021 Results Conference Call
Fourth 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 4Q21 Results Management Outlook As of March 2022 Performance Overview As of March 2022 Long-term PTC extension remains a priority Revenue diversification offsets Wind softness Wind tower plant utilization Multi-year PTC extens
Slide 5: Consolidated Financial Data
CONSOLIDATED FINANCIAL DATA Fourth quarter results impacted by near-term pause in wind tower demand Total Revenue Gross Profit • Total revenue declined 35% ($MM) ($MM) y/y to $26 million, given lower tower demand $198.5 $18.0 $145.6 • Significant, ongoing recovery in diverse end- markets reflected i
Slide 6: Heavy Fabrications Segment
HEAVY FABRICATIONS SEGMENT Near-term wind tower demand impacted by policy uncertainty, raw material cost escalations Segment Revenue Segment Adjusted EBITDA • Segment revenue declined ($MM) ($MM) 51% y/y to $14.7 million due to lower near-term $155.2 demand for wind towers $14.4 $12.7 $102.0 • Fluid
Slide 7: Heavy Fabrications Segment: Wind tower sections sold
HEAVY FABRICATIONS SEGMENT Wind tower sections sold declined 35% y/y in 2021 Total Wind Tower Sections Sold Spread Between Plate Steel vs. HRC Steel (Number of Sections) (Price of Steel Per Ton)(1) 1,400 $16.0 $2,500 1,200 $14.0 $2,000 $12.0 1,000 $10.0 $1,500 800 $8.0 600 $1,000 $6.0 400 $4.0 $500
Slide 8: Gearing Segment
GEARING SEGMENT Accelerating momentum across diverse, non-wind end-markets a positive offset to soft tower demand • Revenue increased 70% y/y Segment Revenue Segment Adjusted EBITDA in 4Q21; customer activity ($MM) ($MM) continues to accelerate $28.6 within the energy sector, $25.1 $3.8 given recent
Slide 9: Industrial Solutions Segment
INDUSTRIAL SOLUTIONS SEGMENT Impacted by lower order intake and supply chain challenges Segment Revenue Segment Adjusted EBITDA • Revenue declined 47% y/y ($MM) ($MM) $18.3 driven by lower order intake $15.4 during early 2021 $1.4 $1.2 $5.8 $0.5 • Record order backlog since $3.0 acquisition ($0.0) 4
Slide 10: Balance Sheet Update
BALANCE SHEET UPDATE $15 million of cash and availability to support growth as of 12/31/21 Quarter-End Total Cash and Availability on Credit Facility ($MM) $24.1 $23.7 $21.9 $21.8 $21.6 $21.1 $19.0 $19.0 $14.9 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 • Ample liquidity to support the growth of th
Slide 11: U.S. Wind Power Installation Forecast
U.S. WIND POWER INSTALLATION FORECAST Potential multi-year extension of the PTC and ITC remains a key catalyst for new wind installations U.S. Onshore Wind Capacity Installations U.S. Offshore Wind Capacity Installations (Annual On-Shore GW Installed)(1) (Annual Off-Shore GW Installed)(1) 13.9 13.7
Slide 12: Customer Diversification Initiative
CUSTOMER DIVERSIFICATION INITIATIVE Balanced revenue mix supports long-term growth and profitability Wind vs. Non-Wind Revenue Concentration Fastest Growing Non-Wind Sectors in 2021 (% of Total Revenue)(1) (Absolute Growth in Revenue) Wind Revenue Non-Wind Revenue 8% 28% 31% 50% 34% 39% Industrial E
Slide 13: Appendix
APPENDIX
Slide 14: Exhibit A: Orders, Revenues and Operating Profit by Segment
EXHIBIT A Orders, Revenues and Operating (Loss)/Profit by Segment Three Months Ended Twelve Months Ended December 31, December 31, 2021 2020 2021 2020 ORDERS: Heavy Fabrications……………………………………………………………… $ 31,150 $ 27,536 $ 93,246 $ 105,843 Gearing……………………………………………………………… 16,757 5,741 46,081 25,117 In
Slide 15: Exhibit B: GAAP to Non-GAAP Adjusted EBITDA Reconciliation
EXHIBIT B GAAP to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Heavy Fabrications S egment Three Months Ended December 31, Twelve Months Ended December 31, 2021 2020 2021 2020 Net Income……………………...…………………………….……. $ 367 $ 1,270 $ 6,996 $ 7,949 Interest Expense……………………………..……………………. 149 79 530
Slide 16: Exhibit C: Consolidated Statement of Cash Flows
EXHIBIT C Consolidated Statement of Cash Flows Twelve Months Ended December 31, 2021 2020 CAS H FLOWS FROM OPERATING ACTIVITIES : Net income (loss)…...…………………………………………………………………………………………… $ 2,847 $ (1,487) Adjustments to reconcile net cash (used in) provided by operating activities: Depreciation and
Slide 17: Exhibit D: Consolidated Balance Sheet
EXHIBIT D December 31, December 31, Consolidated Balance Sheet ASSETS 2021 2020 CURRENT ASSETS: Cash……………………………………………………………………………………………………………………… $ 852 $ 3,372 Accounts receivable, net………………………………………………………………………………………………………………………13,802 15,337 Employee retention credit receivable………………………………………………………
Slide 18: IR Contact
IR CONTACT Please contact our investor relations team at Investor@BWEN.com