Slide 1: 4Q19 / Full-Year 2019 Results Conference Call
4Q19 / Full-Year 2019 Results Conference Call Investor Presentation
Slide 2: Safe-Harbor Statement
SAFE-HARBOR STATEMENT 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 available information. Independent indu
Slide 3: Performance Overview
PERFORMANCE OVERVIEW
Slide 4: 4Q19 Executive Summary
4Q19 EXECUTIVE SUMMARY 1. Total backlog +48% y/y to $142.3 million: Driven by growth in Heavy Fabrications and Diversification > Total Heavy Fabrications backlog +$53.6 million y/y, significant growth in towers sold, expansion of industrial fabrications 2. Total Revenue + 81% y/y to $49.3 million: H
Slide 5: 4Q19 Executive Summary (Continued)
4Q19 EXECUTIVE SUMMARY (Continued) 6. Total Adjusted EBITDA $1.8 million in 4Q19 vs. ($1.7) million in 4Q18 > Y/Y growth in Heavy Fabrications and Industrial Solutions Adj. EBITDA more than offset y/y decline in Gearing 7. Total cash and availability of $19.0 million as of 12/31/19 > Working capital
Slide 6: Five-Year Historical Trend Data
FIVE-YEAR HISTORICAL TREND DATA Significant Y/Y Increase In Orders and Backlog Exiting 2019 Total Annual Orders Backlog ($MM) ($MM) Surge of Tower orders 1 to support scheduled PTC installations $275.0 $221.5 $188.7 Significant Tower 2 customer adds in ’19; Positive ’20 outlook $138.2 $142.3 $93.9 $
Slide 7: Key Financial Data
KEY FINANCIAL DATA Fourth Quarter and Full-Year 2019 Total Revenue Gross Profit ($MM) ($MM) CY revs +42% y/y due to $178.2 1 $15.4 consistency of tower production, industrial $125.4 fabrications growth $4.0 $3.1 $49.3 ($0.5) $27.2 4Q18 4Q19 2018 2019 Improved operating 4Q18 4Q19 2018 2019 2 leverage
Slide 8: Heavy Fabrications Segment
HEAVY FABRICATIONS SEGMENT Positive Commercial Momentum Leading to Improved Operating Performance Revenue Adjusted EBITDA Tower sections sold 1 up to ~300 in Q4; 75% plant utilization ($MM) $128.7 ($MM) $6.7 $74.7 $37.6 $2.4 $1.1 $12.1 Margin pressure ($1.3) 2 during ’19 due to tower imports and sup
Slide 9: Heavy Fabrications Segment: PTC-Driven Demand For Tower Sections
HEAVY FABRICATIONS SEGMENT PTC-Driven Demand For Tower Sections Total Tower Sections Sold (Number of Sections) +372% y/y 302 +84% y/y Flat y/y 243 +31% y/y 201 201 188 143 132 64 1Q18 1Q19 2Q18 2Q19 3Q18 3Q19 4Q18 4Q19 Note: In December 2019, the United States production tax credit for renewable win
Slide 10: Gearing Segment
GEARING SEGMENT Higher-Value Sales Mix Contributes To Improved EBITDA Generation Generated record Revenue Adjusted EBITDA 1 operating income of $3.2 MM, EBITDA ($MM) ($MM) margin of 16.1% $38.4 $5.6 $34.9 $2.6 $10.9 $1.6 $7.6 $1.0 2 Improved margins in Mining, Steel and Wind 4Q18 4Q19 2018 2019 4Q18
Slide 11: Industrial Solutions Segment
INDUSTRIAL SOLUTIONS SEGMENT Benefited From First Solar Kitting Order In The Fourth Quarter 2019 Revenue Adjusted EBITDA 1 3rd consecutive quarter of positive EBITDA – orders ($MM) ($MM) increased 25% y/y $0.4 $14.7 $0.1 $12.5 Increased market share $4.2 $4.1 ($0.7) 2 gains, seeing positive momentum
Slide 12: Balance Sheet Update
BALANCE SHEET UPDATE Improved Operational Performance / Working Capital Initiatives Bolstering Liquidity Operating Working Capital as a % of Sales ($MM)(1) 14% 13% 12% 11% 10% 5% 3% 3% 3/31/18 1Q18 6/30/18 2Q18 9/30/18 3Q18 12/31/18 4Q18 3/31/19 1Q19 6/30/19 2Q19 9/30/19 3Q19 12/31/19 4Q19 Total Cas
Slide 13: Management Outlook
MANAGEMENT OUTLOOK
Slide 14: Financial Guidance
FINANCIAL GUIDANCE Current as of February 27, 2020 Revenue Guidance ($MM) Adjusted EBITDA Guidance ($MM) 1Q20 Full-Year 2020 1Q20 Full-Year 2020 Forecast Forecast Forecast Forecast > Total Company $48.0 to $52.0 $200 to $220 $2.8 to $3.5 $12 to $14 > Heavy $37.0 to $40.0 $4.0 to $4.5 Fabrications >
Slide 15: Financial Guidance Performance Bridge
FINANCIAL GUIDANCE PERFORMANCE BRIDGE Full-Year 2019 vs. Full-Year 2020 2020 Revenue Bridge ($MM) $200 to $220 $178.2 2020 EBITDA Bridge ($MM) $12 to $14 $7.2 15 | Investor Presentation
Slide 16: Broadwind Overview
BROADWIND OVERVIEW Positioned For Profitable Growth About Us Unique Value Proposition > Proven technical capabilities > We are a precision manufacturer of structures, > Complete turnkey solutions equipment and components for clean tech and other > Large scale complex fabrications & precision special
Slide 17: Key Initiatives by Segment
KEY INITIATIVES BY SEGMENT Positioned For Profitable Growth > Sell remaining ’20 tower capacity and expand tower and repowering customer base > Add production capabilities and complete key systems upgrades to maximize profitability Heavy Fabrications Segment > Develop offshore tower market strategy
Slide 18: Customer Diversification Initiative
CUSTOMER DIVERSIFICATION INITIATIVE Applying Precision Manufacturing Expertise Beyond Wind Energy Customer Concentration Non-Wind Revenue By Sector 2016 vs. 2019 (as % of total revenue) 2016 vs. 2019 (as % of total revenue) 10.2% Continued to execute 8.2% 94% 1 7.2% 6.8% on customer 91% 87% 5.4% div
Slide 19: U.S. Wind Sector Outlook
U.S. WIND SECTOR OUTLOOK On-Shore Ramp Occurring; Off-Shore Ramp Beginning In 2023 U.S. Wind Power On-Shore and Off-Shore Capacity Who We Serve Installations (Annual On-Shore GW Installed)(1) > Wind turbine OEMs 15.2 > Wind farm operators > Wind farm developers 12.5 Our Products 9.1 > Tower sections
Slide 20: Key Non-Wind Sector Opportunities
KEY NON-WIND SECTOR OPPORTUNITIES Growth Forecasts By Sectors U.S Industrial Machinery Sector U.S. Mining, Oil & Gas, Field Equipment Sector 1 Mining activity levels continue to be strong Y/Y Sector Production Growth(1) Y/Y Sector Production Growth(1) 7.0% 2.7% 3.0% 2.0% 1.5% -5.6% -1.4% 3.3% 2.0% 2
Slide 21: Investment Thesis
INVESTMENT THESIS Diversified Precision Manufacturer Serving Clean Tech and Industrial Applications 1. Leading precision manufacturer with a multi-industry focus > Heritage is in the renewable sector (e.g. Wind); future includes mining, oil/gas, power gen, material handling construction, industrial
Slide 22: Appendix
APPENDIX
Slide 23: Exhibit A
EXHIBIT A Orders, Revenues and Operating Income (Loss) By Segment Three Months Ended Twelve Months Ended December 31, December 31, 2019 2018 2019 2018 ORDERS: Heavy Fabrications……………………………………………………………… $ 5,260 $ 4,288 $ 179,657 $ 28,604 Gearing……………………………………………………………… 6,880 8,532 25,466 41,576 Indus
Slide 24: Exhibit B
EXHIBIT B GAAP to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Consolidated Three Months Ended December 31, Twelve Months Ended December 31, 2019 2018 2019 2018 Loss from Continuing Operations…………………………...…………. $ (1,625) $ (12,358) $ (4,585) $ (24,000) Interest Expense…………………….……………………………………
Slide 25: Exhibit C
EXHIBIT C GAAP to Non-GAAP Adjusted EBITDA Reconciliation By Segment Heavy Fabrications Segment Three Months Ended December 31, Twelve Months Ended December 31, 2019 2018 2019 2018 Net Income/(Loss)……………………...……………………………. $ 847 $ (2,387) $ 1,275 $ (4,372) Interest Expense……………………………..……………………. 106 6
Slide 26: Exhibit C (Continued)
EXHIBIT C (Continued) GAAP to Non-GAAP Adjusted EBITDA Reconciliation By Segment Corporate and Other Three Months Ended December 31, Twelve Months Ended December 31, 2019 2018 2019 2018 Loss from continuing operations…………………………...…………. $ (1,962) $ (2,577) $ (7,742) $ (4,690) Interest Expense……………….…
Slide 27: IR Contact
IR CONTACT Please contact our investor relations team at 720.334.0195