Slide 1: First Quarter 2021 Results Conference Call
First Quarter 2021 Results Conference Call Investor Presentation
Slide 2: Safe-Harbor Statement
SAFE-HARBOR STATEMENT This release contains “forward looking statements”—that is, statements related to future, not past, events—as defined in Section 21E of the Securities Exchange Act of 1934, as amended, that reflect our current expectations regarding our future growth, results of operations, fin
Slide 3: Performance Overview
PERFORMANCE OVERVIEW
Slide 4: Executive Summary
EXECUTIVE SUMMARY Market Update, Recent Results and Outlook Market Update 1Q21 Results 2Q21 Outlook As of May 2021 Performance Overview Performance Overview Upgraded U.S. Onshore Wind Outlook Total Revenue (33%) y/y to $32.7 million Improved Outlook for 2Q21 Dec-20 extension of the Production Tax Cr
Slide 5: Performance Bridge
PERFORMANCE BRIDGE Revenue declined nearly $16 million y/y in 1Q21; Anticipate strong q/q improvement into 2Q21 1Q20 vs. 1Q21 Revenue Bridge ($ MM) $32.7 1Q20 vs. 1Q21 Adjusted EBITDA Bridge ($ MM) $3.6 5 | Investor Presentation
Slide 6: Consolidated Financial Data
CONSOLIDATED FINANCIAL DATA Challenging first quarter due to non-recurring factors, but TTM revenue trend remains stable • TTM revenue remains Total Revenue Gross Profit stable, despite challenging ($MM) Revenue declined ($MM) 1Q21, where revenue (1.4%) y/y declined 33% y/y Revenue declined $185.2 $
Slide 7: Heavy Fabrications Segment
HEAVY FABRICATIONS SEGMENT TX and WI wind tower facilities fully operational; tower capacity ~60% booked for the full-year 2021 Segment Revenue Segment Adjusted EBITDA ($MM) ($MM) $138.8 $139.6 $11.7 • Revenue declined $15.6 $10.2 million y/y, related to one- time, non-recurring $4.5 headwinds and l
Slide 8: Heavy Fabrications Segment
HEAVY FABRICATIONS SEGMENT TX weather, timing of customer order and supply chain impact pushed ~75 sections out of 1Q21 Total Wind Tower Sections Sold Heavy Fabrications Adjusted EBITDA Margin (Number of Sections)(1) (% of Sales) 1,400 80% • Customer diversification 9.3% driving growth in plant 70%
Slide 9: Gearing Segment
GEARING SEGMENT Order activity accelerating, supported by increased energy and industrial market demand Segment Revenue Segment Adjusted EBITDA • 1Q21 Gearing orders ($MM) equaled combined segment ($MM) orders in the entire second $31.1 $3.9 half of 2020 $24.3 $0.3 $0.3 • Revenue impacted by lower o
Slide 10: Industrial Solutions Segment
INDUSTRIAL SOLUTIONS SEGMENT 14% y/y revenue improvement driven by gas turbine market demand Segment Revenue Segment Adjusted EBITDA • Revenue increased 14% y/y ($MM) ($MM) driven by increased $18.9 demand for gas turbine $15.4 $1.5 components $0.9 • Orders declined y/y due to a change in the timing
Slide 11: Balance Sheet Update
BALANCE SHEET UPDATE More than $21 million of cash and availability to support growth as of 3/31/21 Quarter-End Operating Working Capital as a % of Sales(1) 13% 11% 9% 9% 6% 5% 3% 3% 3% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 Quarter-End Total Cash and Availability on Credit Facility ($MM) $24.
Slide 12: U.S. Wind Power Installation Forecast
U.S. WIND POWER INSTALLATION FORECAST Reduced cost of wind, clean energy policy agenda likely to improve outlook U.S. Onshore Wind Capacity Installations U.S. Offshore Wind Capacity Installations (Annual On-Shore GW Installed)(1) (Annual Off-Shore GW Installed)(1) 17.6 15.3 11.0 11.6 7.6 7.6 8.1 5.6
Slide 13: Customer Diversification Initiative
CUSTOMER DIVERSIFICATION INITIATIVE Balanced revenue mix supports long-term growth and profitability • Wind and renewables Wind vs. Non-Wind Revenue Concentration Fastest Growing Non-Wind Sectors Since 2016 remain our core industry (% of Total Revenue)(1) (Absolute Growth in Revenue) focus • Revenue
Slide 14: Appendix
APPENDIX
Slide 15: Exhibit A
EXHIBIT A Revenues and Operating Income (Loss) Consolidated and by Segment Three Months Ended March 31, 2021 2020 Three Months Ended March 31, 2021 2020 Revenues……………………………………………………………………………………………………..$ 32,728 $ 48,634 ORDERS: Cost of sales………………………………………………………………………………………………………. 32,446 42,462 Heavy
Slide 16: Exhibit B
EXHIBIT B GAAP to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Consolidated Three Months Ended March 31, Industrial S olutions S egment Three Months Ended March 31, 2021 2020 2021 2020 Net (Loss) Income……………..…………...……………………………………… $ (1,210) $ 953 Interest Expense…………………….……………………………………. 230
Slide 17: Exhibit C
EXHIBIT C Consolidated Statement of Cash Flows Three Months Ended March 31, 2021 2020 CAS H FLOWS FROM OPERATING ACTIVITIES : Net (loss) income…...…………………………………………………………………………………………… $ (1,210) $ 954 Adjustments to reconcile net cash used in operating activities: Depreciation and amortization expense
Slide 18: Exhibit D
EXHIBIT D Consolidated Balance Sheet March 31, December 31, 2021 2020 ASSETS CURRENT ASSETS: Cash……………………………………………………………………………………………………………………… $ 2,929 $ 3,372 Accounts receivable, net………………………………………………………………………………………………………………………14,326 15,337 Employee retention credit receivable…………………………………………………………
Slide 19: IR Contact
IR CONTACT Please contact our investor relations team at Investor@BWEN.com