Slide 1: Q2 2016 Earnings Conference Call
Q2 2016 Earnings Conference Call July 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 avail
Slide 3: Q2 2016 Highlights
Q2 2016 Highlights ▪Booked $176M net new orders in Q2 2016 -backlog extended into 2019 ▪Revenue of $43M -on plan ▪Cost reductions on track -$4M of savings in first half of 2016 ▪Break-even income from continuing operations ▪Cash and short-term investments totaled $11M at quarter-end following early
Slide 4: Progress on Priorities
Progress on Priorities 7/28/16 © 2016 Broadwind Energy, Inc. All rights reserved. 4 ▪Double Order Intake xYTD 2016 orders totaled $215M –more than last 2 years combined ▪Maintain Consistent Tower Production xBoth plants operating at plant design rate ▪Aggressively Manage Costs xYTD 2016 FOH reduced
Slide 5: Market Update - Wind
Market Update -Wind 7/28/16 © 2016 Broadwind Energy, Inc. All rights reserved. 5 0 2 4 6 8 10 12 14 2010A 2011A 2012A 2013A 2014A 2015A 2016e 2017e 2018e 2019e 2020e G W US Demand vs. Critical Component Supply (GW) GW Installations Blade Supply Tower Supply Source: MAKE Windpower2016 Report 5.2016 C
Slide 6: Market Update - Gearing
Market Update -Gearing 7/28/16 © 2016 Broadwind Energy, Inc. All rights reserved. 6 •US gear demand expected to begin rising in 2017 •Seeing strength in orders from wind gearing customers and an uptick from steel customers •Oil and gas capex may begin rising in 2017, mining in 2018-19 Source: AGMA
Slide 7: Orders and Backlog
- 50 100 150 200 250 300 350 Q2 11 Q2 12 Q2 13 Q2 14 Q2 15 Q2 16 M i l l i o n s Orders and Backlog Orders –$M ▪$171M of new Towers and Weldments orders in Q2 2016, up significantly from Q2 2015 ▪Gearing orders up vs. PY –wind replacement gearing orders partially offset by lower oil & gas orders Ord
Slide 8: Consolidated Financial Results
Consolidated Financial Results 7/28/16 © 2016 Broadwind Energy, Inc. All rights reserved. 8 ▪Q2 2016 sales down 31%: Towers and Weldments -31%, Gearing -32%; lower steel prices, absence of $5M benefit from completed towers held in inventory at end of Q1 2015 awaiting customer acceptance and timing o
Slide 9: Towers and Weldments
Towers and Weldments Q2 2015 Q2 2016 YTD 2015 YTD 2016 Orders ($M) $51.4 $170.6 $63.1 $206.1 Towers Sold (#) 142 108 245 226 Revenue ($M) 55.0 38.0 96.1 80.0 Operating Income($M) 7.2 2.7 8.3 6.0 -% of Sales 13.0% 7.2% 8.6% 7.5% EBITDA* ($M) 8.1 3.9 10.3 8.1 -% of Sales 14.7% 10.2% 10.7% 10.2% Q2 Res
Slide 10: Gearing
Gearing Q2 2015 Q2 2016 YTD 2015 YTD 2016 Orders ($M) $3.9 $5.6 $13.8 $9.1 Revenue ($M) 8.0 5.4 16.6 10.2 Operating Loss ($M) -1.5 -1.2 -2.7 -2.4 EBITDA* ($M) -0.2 -0.5 -0.1 -1.0 Q2 Results ▪Orders up $2M vs. Q2 2015 –wind and steel up, partially offset by oil & gas orders down $1M ▪Revenue down –oi
Slide 11: Liquidity
Liquidity 7/28/16 © 2016 BroadwindEnergy, Inc. All rights reserved. 11 ▪Inventory increased $3M in Q2 2016 ▪Operating working capital increased $3M, to 6% of annualized sales, in Q2 2016 driven primarily by increase in raw material purchases ▪Early repayment of term loan $2.4M; remaining debt $2.6M
Slide 12: Summary
Summary 7/28/16 © 2016 Broadwind Energy, Inc. All rights reserved. 12 ▪Tower production consistent, delivering ahead of schedule ▪Wind market dynamics strong –good visibility ▪Gearing continues to manage well through oil & gas and mining downturn; savings from consolidation in effect, aggressive cos
Slide 13: Appendix - Non-GAAP Financial Measure
Appendix –Non-GAAP Financial Measure Non-GAAP Financial Measure The Company provides non-GAAP adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, and stock compensation) as supplemental information regarding the Company’s business performance. The Company believes th
Slide 14: Appendix - Non-GAAP Financial Measure
Appendix –Non-GAAP Financial Measure 7/28/16 © 2016 Broadwind Energy, Inc. All rights reserved. 14 Gearing Segment 2016 2015 2016 2015 Net Loss……………………………. (1,194)$ (1,534)$ (2,401)$ (2,759)$ Interest Expense…………………………………. 3 9 7 21 Income Tax Provision/(Benefit)……………………………… 1 1 2 4 Depreciation and
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. 7/28/16 © 2016 Broadwind E