Broadwind, Inc. · NASDAQ:BWEN
Broadwind — Broadwind Energy — 29th Annual Roth Investor Conference (March 2017)
17 slides from Broadwind's conference presentation, Mar 13, 2017
Slide 1: Investor Presentation – Roth Investor Conference
Investor Presentation Roth Investor Conference March 13-14, 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: Broadwind Energy
Broadwind Energy 3 Yr. Strategy: 2016 Revenue 2017 Revenue Guidance Double 2016 Revenue $181M $210-220M $360M Gears 12% Process Weldments Systems 2% Gearing Acquisitions Towers 86% Weldments Towers Organic Towers and Weldments Gearing Process Systems ▪ Leading wind tower manufacturer ▪ 90-year histo
Slide 4: 2016 Highlights
2016 Highlights ▪ 2016 was 1st profitable year in Company history ▪ Orders of $275M nearly triple 2015 orders of $94M ▪ More than doubled gross profit margin ▪ Cost reductions of $9M exceeded plan by $1M ▪ Strong cash balance of $22M at year end March 2017
Slide 5: >90% of BWEN 2016 revenue from wind energy
>90% of BWEN 2016 revenue from wind energy Cumulative Installations – U.S. Wind Power Capacity Under 100 Construction/Advanced Development 82 GW 20,000 18,279 20,280 18,344 80 15,231 60 16,000 14,300 GW 40 12,000 20 8,000 0 4,000 Source: AWEA Q4 Market Report 0 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Under Co
Slide 6: Orders and Backlog
Orders and Backlog Orders – $M Order Backlog – $M Q4 Q4 Book : FY FY Book : 350 2015 2016 Bill 2015 2016 Bill 300 Ratio Ratio 250 Millions 200 Towers & 2.8 29.4 .55 69.1 260.8 1.64 150 Weldments 100 50 Gearing 2.1 2.9 .49 24.9 14.2 .69 - Q4 11 Q4 12 Q4 13 Q4 14 Q4 15 Q4 16 Total 4.9 32.3 .55 94.0 27
Slide 7: Towers and Weldments
Towers and Weldments ▪ Leading wind tower manufacturer in U.S. ▪ Have produced ~3000 >1MW towers for all major OEM’s in U.S. ▪ Manitowoc, WI plant capacity ~350 towers ▪ Abilene, TX plant capacity ~150 towers, expanding to 200 towers ▪ 2015 operational problems behind us ▪ $7 Million investment unde
Slide 8: Gearing Industry Update
Gearing Industry Update The latest US gear shipment projection has become more optimistic Note: historical revision from AGMA August 2016 Source: IHS Markit March 2017
Slide 9: Gearing
Gearing ▪ 90+ year history ▪ Competencies in wind gearing, oil & gas, mining, steel and other industrial applications ▪ Completed 3-year restructuring in 2014: well positioned for rebound in oil & gas and mining ▪ 2017 focus: Expand sales efforts, continue aggressive cost management, continue cross-
Slide 10: Consolidated Financial Results
Consolidated Financial Results 2013 2014 2015 2016 Revenue-$M $ 198.5 $225.8 $ 199.2 $ 180.8 Gross Profit-$M 14.6 19.7 7.9 18.1 -% (ex. Restructuring) 5.0% 9.3% 4.0% 10.0% Operating Expense-$M 23.1 21.2 19.8 16.2 -% (ex. Restructuring) 11.1% 9.3% 9.4% 9.0% Operating Income/(Loss)-$M (8.5) (1.5) (11.
Slide 11: Liquidity
Liquidity (In Millions) 12/31/2015 12/31/2016 Strong Working Capital Management Cash Assets $ 12.7 $ 21.9 Accounts Receivable 9.8 11.9 12/31/15 12/31/16 Inventory 24.2 21.2 DSO 26 22 PPE 51.9 54.6 Other 11.3 8.1 Inv. Turns 7.5 8.2 Total Assets 109.9 117.7 Accounts Payable 13.8 15.9 DPO 24 33 Custome
Slide 12: Strategy
Strategy MISSION: Broadwind Energy is a precision manufacturer of structures, equipment & components for clean tech and other specialized applications. VISION: Over the next three years we will double our sales by growing our existing businesses and expanding our presence in clean tech. We will buil
Slide 13: Red Wolf, A Broadwind Energy Company
Red Wolf, A Broadwind Energy Company 14,000 12,000 ▪ ~$30 million contract manufacturer specialized in 10,000 kitting, light fabrication, packaging/assembly and 8,000 testing MW 6,000 4,000 ▪ Diversifies BWEN into gas turbine install and 2,000 upgrade market 0 2010 2011 2012 2013 2014 2015 ▪ Adds ne
Slide 14: 2017 Guidance and Priorities
2017 Guidance and Priorities Q1 Q1 % FY FY % Guidance 2016 2017 Change 2016 2017 Change Revenue $46.8 $54-56M +15-19% $180.8 $210-220M +16-21% EBITDA* 1.7 ~$3M +>75% $9.6 $14-16M +45-66% ▪ Sell remaining 2017 tower capacity ▪ Reduce tower production costs through improved paint and welding ▪ Complet
Slide 15: Investment Thesis
Investment Thesis ▪ Wind markets fundamentally strong…oil and gas and mining recovering ▪ Strong balance sheet – negative net debt ▪ Trading at a discount relative to peers ▪ Surplus cash redeployed to diversify into gas turbine supply chain with Red Wolf acquisition ▪ Conservative capital structure
Slide 16: Appendix
Appendix Consolidated Three Months Ended December 31, Twelve Months Ended December 31, 2016 2015 2016 2015 Net Income/(Loss) from continuing operations……………………………. $ 405 $ (10,726) $ 1,335 $ (12,246) Interest Expense…………………………………. 193 188 625 799 Income Tax Provision/(Benefit)……………………………… 14 (25) (2
Slide 17: Broadwind Energy is a precision manufacturer
Broadwind Energy is a precision manufacturer of structures, equipment & components for clean tech and other specialized applications. www.BWEN.com March 2017
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