Slide 1: Q3 2016 Earnings Conference Call
Q3 2016 Earnings Conference Call October 28, 2016
Slide 2: Industry Data and Forward-Looking Statements Disclaimer
Industry Data and Forward-Looking Statements Disclaimer ▪Broadwind obtained the industry and market data used throughout this presentation from our own research, internal surveys andstudies conducted by third parties, independent industry associations or general publications and other publicly avail
Slide 3: Q3 2016 Highlights
Q3 2016 Highlights ▪Revenue of $43M -on plan ▪Gross Profit Margin rises to 12.5% in Q3 2016, more than double Q3 2015 ▪Cost reductions on track -$6.5M of savings YTD 2016 ▪Income from continuing operations of $1.2M, or $.08 per share ▪Cash and short-term investments totaled $24M at quarter end; cred
Slide 4: Progress on Priorities
Progress on Priorities 10/28/2016 © 2016 Broadwind Energy, Inc. All rights reserved. 4 ▪Double Order Intake xYTD 2016 orders totaled $243M –more than last 2 years combined ▪Maintain Consistent Tower Production xBoth plants operating at plant design rate ▪Aggressively Manage Costs xYTD 2016 manufactu
Slide 5: Market Update - Wind
Market Update -Wind 10/28/2016 © 2016 Broadwind Energy, Inc. All rights reserved. 5 •Industry estimates adding 7.5-10.4 GW per year through 2020 •~27 GW have already been announced •Strong long-term demand for wind energy driven by PTC, RPS and fossil fuel-fired power plant retirements 0 2 4 6 8 10
Slide 6: U.S. Gear Manufacturing Outlook
U.S. Gear Manufacturing Outlook -$M 2018 provides best opportunity for market growth to pick-up at healthy rates Exported Source: AGMA & IHS 6 Consumed w/in U.S. flat 2017 BFGs near term growth will be derived from market share capture vs. market growth 10/28/2016 © 2016 Broadwind Energy, Inc. All r
Slide 7: Orders and Backlog
- 50 100 150 200 250 300 350 Q3 11 Q3 12 Q3 13 Q3 14 Q3 15 Q3 16 M i l l i o n s Orders and Backlog Orders –$M ▪$24M of new Towers and Weldments orders in Q3 2016, up significantly from Q3 2015 ▪Gearing orders down vs. PY –timing of wind replacement gearing order and lower oil & gas, mining orders O
Slide 8: Consolidated Financial Results
Consolidated Financial Results 10/28/2016 © 2016 Broadwind Energy, Inc. All rights reserved. 8 ▪Q3 2016 sales down 14% from prior year: Towers and Weldments -11%, Gearing -36%; lower steel prices, lower Gearing sales to oil & gas and mining customers ▪Q3 2016 gross margin, profit and EPS all higher
Slide 9: Towers and Weldments
Towers and Weldments Q3 2015 Q3 2016 YTD 2015 YTD 2016 Orders ($M) 3.2 23.5 66.3 231.4 Towers Sold (#) 112 113 357 339 Revenue ($M) 42.9 38.0 139.0 118.0 Operating Income($M) 2.2 4.1 10.5 10.0 -% of Sales 5.2% 10.7% 7.6% 8.5% EBITDA* ($M) 3.5 5.2 13.7 13.3 -% of Sales 8.0% 13.8% 9.9% 11.2% Q3 Result
Slide 10: Gearing
Gearing Q3 2015 Q3 2016 YTD 2015 YTD 2016 Orders ($M) 9.0 2.2 22.8 11.3 Revenue ($M) 7.2 4.6 23.8 14.8 Operating Loss ($M) -2.7 -.7 -5.4 -3.1 EBITDA* ($M) -.5 -.0 -.6 -1.1 Q3 Results ▪Orders down vs. Q3 2015 –timing of large wind replacement gearing order and lower oil & gas, mining ▪Revenue down –o
Slide 11: Liquidity
Liquidity 10/28/2016 © 2016 Broadwind Energy, Inc. All rights reserved. 11 ▪Cash and short-term investments totaled $24M at 9/30/16 due to a temporary drop in working capital; credit line undrawn ▪Operating working capital (OWC) decreased $12.2M due to timing of customer receipts; OWC expected to no
Slide 12: Summary
Summary 10/28/2016 © 2016 Broadwind Energy, Inc. All rights reserved. 12 ▪ Tower production consistent, delivering ahead of schedule ▪ Wind market dynamics strong –good visibility ▪ Gearing continues to manage well through oil & gas and mining downturn; savings from consolidation in effect, aggressi
Slide 13: Appendix – Non-GAAP Financial Measure
Appendix –Non-GAAP Financial Measure Non-GAAP Financial Measure The Company provides non-GAAP adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, stock compensation and restructuring) as supplemental information regarding the Company’s business performance. The Compa
Slide 14: Appendix – Non-GAAP Financial Measure
Appendix –Non-GAAP Financial Measure 10/28/2016 © 2016 Broadwind Energy, Inc. All rights reserved. 14 Gearing Segment 2016 2015 2016 2015 Net Loss……………………………. (697)$ (2,643)$ (3,099)$ (5,380)$ Interest Expense…………………………………. 1 8 8 29 Income Tax Provision/(Benefit)……………………………… 5 (9) 7 (5) Depreciation
Slide 15: 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. 10/28/2016 © 2016 Broadwin