Slide 1: Q1 2015 Earnings Conference Call
Q1 2015 Earnings Conference Call April 30, 2015
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 and studies conducted by third parties, independent industry associations or general publications and other publicly avail
Slide 3: Towers Update
Towers Update Abilene Progress Abilene production returning to normal levels Plant throughput improved Steady improvement throughout the quarter “Abilene has turned the corner” West Coast Port Delays Re-sequenced production to avoid losing production slots Deferred $5M of revenue to Q2-Q3 Inventory
Slide 4: Orders and Backlog
Orders and Backlog Orders – $M $12M in Towers & Weldments orders in Q1 15 Q1 is typically seasonally weaker Gearing Q1 15 orders ahead 17% over PY; large wind replacement gearing order offset weak oil & gas orders Services orders down 47% compared to PY Order Backlog – $M Solid backlog at Q1 15 tota
Slide 5: Wind Market Outlook
Wind Market Outlook 4/30/15 © 2015 Broadwind Energy, Inc. All rights reserved. 5 OEM’s on track to achieve bull case LCOE reduction NG in the short term appears to be the bear scenario Significant transmission in the planning process Clean Power Plan (CPP) is progressing Offshore – Likely the bear c
Slide 6: Gearing Update
Gearing Update Navigating well through rough oil and gas markets Revenue flat compared to PY Margins improved, achieved positive EBITDA Cost reductions initiated at end of Q1 15 Monitoring the markets closely © 2015 Broadwind Energy, Inc. All rights reserved. 6 4/30/15
Slide 7: Consolidated Financial Results
Consolidated Financial Results 4/30/15 © 2015 Broadwind Energy, Inc. All rights reserved. 7 Sales down 13% from Q1 2014: Towers and Weldments -15%, Services -21% Gross margin – down 770 bp from Q1 2014 due to lower tower volumes Operating expense lower than Q1 2014; lower professional fees and restr
Slide 8: Towers and Weldments
Towers and Weldments Q1 2014 Q1 2015 2014 FY Orders ($M) $3.9 $11.8 $77.6 Towers Sold (#) 108 103 435 Revenue ($M) 48.3 41.0 184.9 Operating Inc ($M) 5.6 1.1 18.1 -% of Sales 11.6% 2.8% 9.8% Adj. EBITDA ($M) 6.7 2.1 22.3 - % of Sales 13.8% 5.2% 12.0% Q1 Results Tower sections down 12% - no 4 section
Slide 9: Gearing
Gearing Q1 2014 Q1 2015 2014 FY Orders ($M) $8.3 $9.7 $41.9 Revenue ($M) 8.8 8.6 42.3 Operating Loss ($M) -3.0 -1.2 -9.4 -% of Sales -33.8% -14.1% -22.3% Adj. EBITDA ($M) -.8 .1 -.9 - % of Sales -9.0 1.7 -2.2% Q1 Results Orders up 17% - mainly timing on wind gears Oil and gas orders down sharply – s
Slide 10: Services
Services Q1 2014 Q1 2015 2014 FY Orders ($M) $3.6 $1.9 $15.7 Revenue ($M) 2.4 1.9 15.6 Operating Loss ($M) -1.3 -2.6 -4.5 -% of Sales -54.9% -135.4% -28.9% Adj. EBITDA ($M) -.9 -2.2 -3.1 - % of Sales -36.0% -111.0% -19.7% Q1 Results Weaker blade revenue $700K charge - community and kilowatt wind gea
Slide 11: Liquidity
Liquidity 4/30/15 © 2015 Broadwind Energy, Inc. All rights reserved. 11 Inventories at record balance – $5M in finished towers held, $5M extra steel on hand for Q4 2015 due to re-sequencing production Working capital spikes to $29.6M, 15% of sales, high end of BWEN historic range Year-end gross inve
Slide 12: Balance Sheet
Balance Sheet Cash assets down significantly with increased working capital requirements to support Abilene production issues and West Coast port disruptions — will recover in 2H 2015; year-end estimate >$10M Net PPE declines as capital spending is less than depreciation Conservative capital structu
Slide 13: Consolidated Outlook
Consolidated Outlook 4/30/15 © 2015 Broadwind Energy, Inc. All rights reserved. 13 * Estimate Outlook Assumptions Abilene tower production returns to normal levels in Q2, Manitowoc continues outstanding performance; 500 tower capacity remains goal West Coast port issue resolved; $4M of deferred reve
Slide 14: Summary
Summary Turned the corner on Abilene production issues Q2 rebounding nicely with $66 - $68M of revenue, $4-6M of EBITDA and returning to profitability Expect to close at least one major tower order in Q2 Overhead expense reduction action benefits of $600k per quarter kick in Towers still on track to
Slide 15: Click to edit Master title style Click to edit Master text styles Second level
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. 4/30/15 © 2015 Broadwind Energy, In