Slide 1: 1Q20 Results Conference Call
1Q20 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: COVID-19 Business Response
COVID-19 BUSINESS RESPONSE We Continue To Monitor The Potential Impact of The Pandemic On Our Business Employee Health & Safety Liquidity Profile Business Continuity > We are closely monitoring the > The company remains in full > Our business is considered critical potential impact of the novel comp
Slide 5: 1Q20 Executive Summary
1Q20 EXECUTIVE SUMMARY 1. Net Income increased $2.0 million y/y to $1.0 million > Earnings per share of $0.06 in 1Q20 vs. ($0.07) in 1Q19 2. Total Revenue + 17% y/y to $48.6 million: Improved Demand From Wind, Mining and Gas Turbine Markets > Wind industry sales increased by more than $9.2 million o
Slide 6: 1Q20 Executive Summary (Continued)
1Q20 EXECUTIVE SUMMARY (Continued) 7. Heavy Fabrications revenue +36% y/y: Acceleration In Wind Tower Section Demand and Diversification > Tower plants operating at 76% of nameplate capacity 8. Gearing revenue (38%) y/y: Customer Deliveries Pushed to 2H:20 Given COVID-19 Impact >11. Broad-based With
Slide 7: Key Financial Data
KEY FINANCIAL DATA Y/Y Growth In Revenue, Gross Profit, Adjusted EBITDA and EPS Return To Profitability Total Revenue Gross Profit ($MM) ($MM) > Generated net income of $1.0MM or $0.06 per $185.2 share in 1Q20 – 1st $137.1 profitable quarter since $18.0 2017 $41.7 $48.6 $6.2 $6.7 $3.5 Positive Margi
Slide 8: Heavy Fabrications Segment
HEAVY FABRICATIONS SEGMENT Approximately 80% of Full-Year 2020 Tower Production Capacity in Backlog as of May 2020 Increased Tower Demand Revenue Adjusted EBITDA ($MM) ($MM) $10.2 > Wind towers demand $138.8 driving plant utilization levels of ~75% $84.8 $4.5 Broad-Based Demand $38.4 $2.7 $28.3 $1.1
Slide 9: Heavy Fabrications Segment
HEAVY FABRICATIONS SEGMENT PTC-Driven Demand For Tower Sections Total Tower Sections Sold (Number of Sections) +66% y/y +372% y/y +84% y/y 312 302 Flat y/y 243 201 201 188 132 64 2Q18 2Q19 3Q18 3Q19 4Q18 4Q19 1Q19 1Q20 Note: In December 2019, the United States production tax credit for renewable win
Slide 10: Gearing Segment
GEARING SEGMENT Outlook weakening following COVID-19; Customer Activity Shifts From 1H20 to 2H20 Impacted by COVID-19 Revenue Adjusted EBITDA ($MM) ($MM) > Customer activity dampened by $39.6 pandemic; purchasing $31.1 activity pushed to 2H20 $4.5 $3.9 Strong Pre-COVID-19 $10.0 $2.0 orders $6.2 $0.3
Slide 11: Industrial Solutions Segment
INDUSTRIAL SOLUTIONS SEGMENT Revenue Diversification Story Continues To Make Progress Positive KPI Trend Revenue Adjusted EBITDA ($MM) ($MM) > y/y improvement in 1Q20 and TTM $15.4 $0.9 Revenue, Adjusted $12.8 $0.3 EBITDA and Orders ($0.2) ($1.4) Diversification Progress $3.3 $4.0 > Components to su
Slide 12: Balance Sheet Update
BALANCE SHEET UPDATE Improved Operational Performance / Working Capital Initiatives Bolstering Liquidity Operating Working Capital as a % of Sales(1) 14% 13% 12% 11% 10% 5% 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 3/31/20 1Q20
Slide 13: Management Outlook
MANAGEMENT OUTLOOK
Slide 14: Demand Outlook by End-Market
DEMAND OUTLOOK BY END-MARKET Customer Guidance Drives Our Outlook Wind Sector Industrial/Other Sector Power Generation Sector > TTM Revenue > TTM Revenue > TTM Revenue > 6% > 8% > 68% Sector Outlook > > Sector Outlook > Sector Outlook > Positive/Neutral > Positive > Positive Customer Feedback > > Cu
Slide 15: U.S. Wind Sector Forecast
U.S. WIND SECTOR FORECAST Onshore Ramp Occurring; Offshore Ramp Beginning In 2023 U.S. Wind Power Onshore and Offshore Capacity Installations Onshore Update (Annual On-Shore GW Installed)(1) > Near term uncertainties 14.7 arising from COVID-19 12.8 Offshore Update 10.2 9.1 > U.S. adding 19 GW of 8.4
Slide 16: 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 17: 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 18: Appendix
APPENDIX
Slide 19: Exhibit A
EXHIBIT A Orders, Revenues and Operating Income (Loss) By Segment Three Months Ended Twelve Months Ended March 31, 2020 2019 ORDERS: Heavy Fabrications……………………………………………………………… $ 15,514 $ 12,510 Gearing……………………………………………………………… 12,421 7,135 Industrial Solutions……………………………………………………………… 5,874 4,361 Tota
Slide 20: Exhibit B
EXHIBIT B GAAP to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Consolidated Three Months Ended March 31, 2020 2019 Net Income/(Loss)……………………...……………………………. $ 953 $ (1,042) Interest Expense…………………….……………………………………. 673 536 Income Tax Provision…………………………….....…………………… 52 11 Depreciation and Amo
Slide 21: Exhibit C
EXHIBIT C GAAP to Non-GAAP Adjusted EBITDA Reconciliation By Segment Heavy Fabrications Segment Three Months Ended March 31, 2020 2019 Net Income/(Loss)……………………...……………………………. $ 2,698 $ (235) Interest Expense……………………………..……………………. 105 66 Income Tax Provision/(Benefit)…………………...…………………… 738 (53) Depr
Slide 22: Exhibit C (Continued)
EXHIBIT C (Continued) GAAP to Non-GAAP Adjusted EBITDA Reconciliation By Segment Industrial S olutions Three Months Ended March 31, 2020 2019 Net Income/(Loss)……………………...……………………………. $ 159 $ (215) Interest Expense……………………………………………………. 1 1 Income Tax Provision/(Benefit)…………………...…………………… 31 (72) Depr
Slide 23: IR Contact
IR CONTACT Please contact our investor relations team at 720.334.0195