Broadwind, Inc. · NASDAQ:BWEN
Broadwind — Broadwind Energy — Q1 2016 Earnings Presentation
14 slides from Broadwind's earnings presentation, Apr 28, 2016
Slide 1: Q1 2016 Earnings Conference Call
Q1 2016 Earnings Conference Call April 28, 2016
Slide 2: Industry Data and Forward-Looking Statements Disclaimer
Industry Data and Forward-Looking Statements Disclaimer ▪ Broadwindobtained 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 avai
Slide 3: Q1 2016 Highlights
Q1 2016 Highlights ▪Booked $39M net new orders in Q1 2016, nearly double Q1 2015 ▪Tower units sold increased 15% compared to Q1 2015 ▪Gross Profit of $4M in Q1 2016, increased 290 basis points from Q1 2015 ▪Operating Loss narrowed to $.2M in Q1 2016, adj. EBITDA $1.7M ▪Cash and short-term investment
Slide 4: Progress on Priorities
Progress on Priorities 4/28/16 © 2016 Broadwind Energy, Inc. All rights reserved. 4 ▪Double Order Intake xQ1 2016 orders totaled $39M vs. $22M in Q1 2015 ▪Maintain Consistent Tower Production xBoth plants operating at plant design rate ▪Aggressively Manage Costs xFOH reduced $1.1M compared to Q1 201
Slide 5: Market Update
Market Update ▪Wind Energy – Industry outlook unchanged –strong installations through 2019 ▪Gearing – Weak demand expected through at least mid-2016, especially oil & gas, field equipment – After market wind gearing remains a bright spot –wind turbine lives are extending out ▪CNG – New station insta
Slide 6: Restructuring Update
Restructuring Update 4/28/16 © 2016 Broadwind Energy, Inc. All rights reserved. 6 600 700 800 900 1,000 1,100 1,200 1,300 1,400 1,500 1,600 2012 Q1 2012 Q3 2013 Q1 2013 Q3 2014 Q1 2014 Q3 2015 Q4 S q . F t . - T h o u s a n d s BroadwindFootprint Reduction Sold idle Brandon, SD Tower Facility 146K s
Slide 7: Orders and Backlog
Orders and Backlog Orders –$M ▪$35M of new tower orders in Q1 2016, up significantly from Q1 2015 ▪Gearing orders down vs. PY –lower oil & gas orders and timing of large wind gearing order Order Backlog –$M ▪Ending backlog $86.0M ▪~ 6 months of projected 2016 shipments included in backlog ▪General r
Slide 8: Liquidity
- 2 4 6 8 10 12 14 16 Liquidity 4/28/16 © 2016 BroadwindEnergy, Inc. All rights reserved. 8 ▪Inventory declined $5M in Q1 2016 ▪Operating working capital declined $2M, to 4% of annualized sales, in Q1 2016 driven primarily by decrease in raw materials ▪Outstanding debt at 3/31/16 totaled $5.2M, incl
Slide 9: Consolidated Financial Results
Consolidated Financial Results 4/28/16 © 2016 Broadwind Energy, Inc. All rights reserved. 9 ▪Sales down 5%; Towers and Weldments +2%, Gearing -45% ▪Gross margin, profit and EPS increases all due primarily to significantly improved operating efficiencies at Abilene, TX tower plant, reduced depreciati
Slide 10: Towers and Weldments
Towers and Weldments Q1 2015 Q1 2016 FY 2015 Orders ($M) $11.8 $35.4 $69.1 Towers Sold (#) 103 119 450 Revenue ($M) 41.0 42.0 170.9 Operating Income($M) 1.1 3.2 4.7 -% of Sales 2.8% 7.7% 2.8% EBITDA* ($M) 2.2 4.3 9.5 -% of Sales 5.3% 10.1% 5.6% Q1 Results ▪Towers sold up 15% vs. Q1 2015 – Abilene op
Slide 11: Gearing
Gearing Q1 2015 Q1 2016 FY 2015 Orders ($M) $9.9 $3.5 $24.9 Revenue ($M) 8.6 4.8 29.6 Operating Loss ($M) -1.2 -1.2 -8.2 EBITDA* ($M) 0.1 -0.5 -2.1 Q1 Results ▪Orders down vs. Q1 2015 –wind down $3.2M (order timing), oil & gas orders down $1.2M ▪Revenue down significantly –oil & gas and mining down
Slide 12: Summary
Summary 4/28/16 © 2016 Broadwind Energy, Inc. All rights reserved. 12 ▪Tower production stabilized ▪Gearing continues to manage well through oil & gas and mining downturn; savings from consolidation in effect, aggressive cost management continues ▪Cost reduction and continuous improvement remain pri
Slide 13: Appendix – Non-GAAP Financial Measure
Appendix –Non-GAAP Financial Measure Non-GAAP Financial Measure The Company provides non-GAAP adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, and stock compensation) as supplemental information regarding the Company’s business performance. The Company believes th
Slide 14: Click to edit Master title style ▪ Click to edit Master text styles –Second
Click to edit Master title style ▪ Click to edit Master text styles –Second level • Third level – Fourth level » Fifth level Broadwind Energy is committed to helping customers maximize performance of their energy and infrastructure investments— quicker, easier and smarter. 4/28/16 © 2016 Broadwind E