Highlights:
Broadwind Energy, Inc. (NASDAQ:BWEN) reported sales of $49.8
million for the third quarter of 2015, down 10% compared to $55.3
million in the third quarter of 2014, due mainly to reduced demand
for gearing, and lower than planned tower volume resulting from
production and supply chain challenges.
The Company reported a net loss from continuing operations of
$2.4 million or $.16 per share in Q3 2015, compared to a net loss
from continuing operations of $1.1 million or $.07 per share in Q3
2014. The $.09 per share difference was due primarily to less
robust Towers and Weldments segment results due to a lower margin
mix of tower sales in Q3 2015, and $.9 million of additional
environmental remediation expenses for a closed gearing plant which
is being readied for sale, partly offset by reduced Corporate
expenses.
The Company reported a net loss from discontinued operations of
$5.2 million or $.36 per share in Q3 2015, compared to a net loss
from discontinued operations of $.7 million or $.05 per share in Q3
2014. The increased loss was due primarily to an asset impairment
charge of $4.5 million in Q3 2015.
The Company reported non-GAAP adjusted EBITDA (earnings before
interest, taxes, depreciation, amortization, share-based payments
and restructuring costs) of $1.4 million in Q3 2015, down from $2.4
million in Q3 2014. The $1.0 million decrease was due mainly to the
factors described above.
Peter Duprey, President and Chief Executive Officer, stated, “As
previously announced, Broadwind experienced another tough quarter
due in part to production issues in our Towers business and
continued weakness in sales to oil and gas and mining customers. We
have worked through the steel supplier quality issues, and tower
production in Manitowoc is now approaching normal levels. Our
Gearing segment booked $7 million of wind replacement gearing
orders during the quarter, as we look to utilize our deep gearing
knowledge to capitalize on the need for replacement gearing for the
aging wind assets in the U.S. We continue to manage expenses
judiciously, and our inventory balances dropped as expected during
the quarter which freed up $5 million of cash. Our estimates for
the fourth quarter are tempered as we work through a tower model
changeover in the Abilene plant and anticipate continued weakness
in the Gearing segment. As a result, we are estimating Q4 revenue
of $44-45 million and an operating loss of $4-5 million.”
Mr. Duprey concluded, “Our Board of Directors authorized a plan
to divest the Services segment and we are currently in active
discussions with potential buyers. A resolution is expected prior
to year-end.”
For the nine months ended September 30, 2015, revenue totaled
$161.6 million, compared to $176.6 million for the nine months
ended September 30, 2014. The 8.5% reduction was due mainly to
production issues in the Towers and Weldments segment and a
shortfall in the Gearing segment due to weaker demand from oil and
gas and mining customers in 2015.
Net loss from continuing operations for the nine months ended
September 30, 2015 totaled $1.5 million, or $.10 per share,
compared with net income of $2.3 million, or $.15 per share, for
the nine months ended September 30, 2014. The decrease was
primarily due to tower production issues in the Abilene facility in
Q1 2015, an unusually high-margin mix of towers in 2014 and weaker
weldments profitability in 2015.
For the nine months ended September 30, 2015, net loss from
discontinued operations totaled $9.5 million, or $.65 per share,
compared to a net loss from discontinued operations of $3.3
million, or $.22 per share, for the nine months ended September 30,
2014.
The Company reported non-GAAP adjusted EBITDA of $7.7 million
for the first nine months of 2015, down from $13.0 million for the
first nine months of 2014, due to the factors described above.
Orders and Backlog
The Company booked $12.2 million in net orders in Q3 2015, down
from $60.8 million in Q3 2014, due primarily to the timing of large
tower orders. Towers and Weldments orders, which vary considerably
from quarter to quarter, totaled $3.2 million in Q3 2015, down from
$51.7 million in Q3 2014. Gearing orders totaled $9.0 million in Q3
2015, in-line with Q3 2014 orders.
Orders for the nine months ended September 30, 2015 totaled
$88.8 million, down 4% compared to the nine months ended September
30, 2014.
At September 30, 2015, total backlog, excluding Services, was
$128 million, down 43% from the backlog at September 30, 2014.
Segment Results
In September 2015, the Company’s Board of Directors approved a
plan to divest or otherwise exit the Services segment;
consequently, this segment is now reported as a Discontinued
Operation and the Company has revised its segment presentation to
include two reportable operating segments: Towers and Weldments,
and Gearing.
Towers and Weldments
Broadwind Energy produces fabrications for wind, oil and gas,
mining and other industrial applications, specializing in the
production of wind turbine towers.
Towers and Weldments segment sales totaled $42.9 million in Q3
2015, down 5% from $45.1 million in Q3 2014, as the prior year
quarter included a greater mix of larger, more complex towers.
Operating income for Q3 2015 totaled $2.2 million or 5% of sales,
down from $3.4 million in Q3 2014, due to the less favorable sales
mix and increased indirect labor costs associated with production
problems in the current year quarter.
Non-GAAP adjusted EBITDA in Q3 2015 was $3.5 million, or 8% of
sales, compared to $4.4 million, or 10% of sales, in Q3 2014, due
to the factors described above.
Gearing
Broadwind Energy engineers, builds and remanufactures precision
gears and gearboxes for oil and gas, mining, steel and wind
applications.
Gearing segment sales totaled $7.2 million in Q3 2015, down from
$10.3 million in Q3 2014, due to weak demand from oil and gas and
mining customers. Operating loss for Q3 2015 totaled $2.6 million,
compared to an operating loss of $2.3 million in Q3 2014, due to
$.9 million of additional environmental remediation expenses for a
closed plant which is being readied for sale, and the impact of the
lower sales volume. These factors were partially offset by lower
depreciation, the benefits of completing the consolidation
investment and successful cost management. Gearing non-GAAP
adjusted EBITDA loss was $.5 million in Q3 2015, compared to
non-GAAP adjusted EBITDA loss of $.1 million in Q3 2014, reflecting
the factors described above.
Corporate and Other
Corporate and other expenses totaled $1.7 million in Q3 2015,
down 20% compared to Q3 2014, due primarily to the absence of a $.8
million regulatory settlement reserve incurred in Q3 2014 and lower
sales and marketing expense.
Cash and Liquidity
During the quarter, operating working capital (accounts
receivable and inventory, net of accounts payable and customer
deposits) decreased $6.0 million to $27.6 million, or 14% of Q3
2015 annualized sales, due mainly to $5.3 million in lower
inventory, partially offset by a reduction in customer deposits of
$1.9 million. Operating working capital is expected to decline
further by approximately $5-7 million before year-end.
Cash assets (cash and short-term investments) totaled $4.7
million at September 30, 2015, compared to $.6 million at June 30,
2015. The Company’s $15 million line of credit was undrawn.
About Broadwind Energy, Inc.
Broadwind Energy (NASDAQ:BWEN) applies decades of deep
industrial expertise to innovate integrated solutions for customers
in the energy and infrastructure markets. From gears and gearing
systems for wind, steel, oil and gas and mining applications, to
wind towers and industrial weldments, we have solutions for the
energy needs of the future. With facilities throughout the central
U.S., Broadwind Energy's talented team of over 750 employees is
committed to helping customers maximize performance of their
investments – quicker, easier and smarter. Find out more at
www.bwen.com.
Forward-Looking Statements
This release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 that involve risks,
uncertainties and assumptions, such as statements regarding our
future financial condition or results of operations, cash flows,
performance, business prospects and opportunities, as well as
assumptions made by, and information currently available to, our
management, our plans to divest or otherwise exit the Services
business, and our prospects and strategies for future growth,
including with respect to estimated 2015 guidance. Forward-looking
statements include any statement that does not directly relate to a
current or historical fact. We have tried to identify
forward-looking statements by using words such as “anticipate,”
“believe,” “expect,” “intend,” “will,” “should,” “may,” “plan” and
similar expressions, but these words are not the exclusive means of
identifying forward-looking statements. These statements are based
on current expectations, and we undertake no obligation to update
these statements to reflect events or circumstances occurring after
this release. Such statements are subject to various risks and
uncertainties that could cause actual results to vary materially
from those stated. Such risks and uncertainties include, but are
not limited to: expectations regarding our business, end-markets,
relationships with customers and our ability to diversify our
customer base; the impact of competition and economic volatility on
the industries in which we compete, including, but not limited to,
the oil and gas and mining markets; our ability to realize revenue
from customer orders and backlog; the impact of regulation on our
end-markets, including the wind energy industry in particular; the
sufficiency of our liquidity and working capital and our plans to
evaluate alternative sources of funding if necessary; our ability
to preserve and utilize our tax net operating loss carry-forwards;
our plans to divest or otherwise exit the Services business; our
plans to continue to grow our business through organic growth; our
plans with respect to the use of proceeds from financing
activities; our ability to operate our business efficiently, manage
capital expenditures and costs effectively, and generate cash flow;
and other risks and uncertainties described in our filings with the
Securities and Exchange Commission, including those contained in
Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K
for the year ended December 31, 2014.
BROADWIND ENERGY, INC.
AND SUBSIDIARIES |
CONSOLIDATED BALANCE
SHEETS |
(IN THOUSANDS) |
|
|
|
September
30, |
|
December
31, |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
(Unaudited) |
|
|
|
ASSETS |
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
4,743 |
|
|
$ |
12,057 |
|
|
Short-term investments |
|
|
- |
|
|
|
8,024 |
|
|
Restricted cash |
|
|
83 |
|
|
|
83 |
|
|
Accounts receivable, net of
allowance for doubtful accounts of $103 and $81 as of
September 30, 2015 and December 31, 2014, respectively |
|
|
17,116 |
|
|
|
17,043 |
|
|
Inventories, net |
|
|
34,087 |
|
|
|
31,144 |
|
|
Prepaid expenses and other current
assets |
|
|
1,477 |
|
|
|
1,587 |
|
|
Current assets held for sale |
|
|
6,924 |
|
|
|
7,805 |
|
|
Total current assets |
|
|
64,430 |
|
|
|
77,743 |
|
|
LONG-TERM
ASSETS: |
|
|
|
|
|
Property and equipment, net |
|
|
53,558 |
|
|
|
58,529 |
|
|
Intangible assets, net |
|
|
5,127 |
|
|
|
5,459 |
|
|
Other assets |
|
|
352 |
|
|
|
414 |
|
|
Long-term assets held
for sale |
|
- |
|
|
|
4,473 |
|
|
TOTAL
ASSETS |
|
$ |
123,467 |
|
|
$ |
146,618 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
Current maturities of long-term
debt |
|
|
4,945 |
|
|
|
118 |
|
|
Current portions of capital lease
obligations |
|
|
595 |
|
|
|
767 |
|
|
Accounts payable |
|
|
16,984 |
|
|
|
17,547 |
|
|
Accrued liabilities |
|
|
8,265 |
|
|
|
9,260 |
|
|
Customer deposits |
|
|
6,625 |
|
|
|
22,397 |
|
|
Current liabilities held for
sale |
|
|
2,193 |
|
|
|
1,579 |
|
|
Total current liabilities |
|
|
39,607 |
|
|
|
51,668 |
|
|
LONG-TERM
LIABILITIES: |
|
|
|
|
|
Long-term debt, net of current
maturities |
|
|
2,600 |
|
|
|
2,646 |
|
|
Long-term capital lease
obligations, net of current portions |
|
|
- |
|
|
|
426 |
|
|
Other |
|
|
2,993 |
|
|
|
3,468 |
|
|
Long-term liabilities
held for sale |
|
- |
|
|
|
30 |
|
|
Total long-term liabilities |
|
|
5,593 |
|
|
|
6,570 |
|
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY: |
|
|
|
|
|
Preferred stock, $0.001 par value;
10,000,000 shares authorized; no shares issued or
outstanding |
|
|
- |
|
|
|
- |
|
|
Common stock, $0.001 par value;
30,000,000 shares authorized; 15,012,362 and 14,844,307 shares
issued as of September 30, 2015 and December 31, 2014,
respectively |
|
|
15 |
|
|
|
15 |
|
|
Treasury stock, at
cost, 273,937 shares at September 30, 2015 and December 31, 2014,
respectively |
|
(1,842 |
) |
|
|
(1,842 |
) |
|
Additional paid-in capital |
|
|
378,085 |
|
|
|
377,185 |
|
|
Accumulated deficit |
|
|
(297,991 |
) |
|
|
(286,978 |
) |
|
Total stockholders' equity |
|
|
78,267 |
|
|
|
88,380 |
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
123,467 |
|
|
$ |
146,618 |
|
|
BROADWIND ENERGY, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(IN
THOUSANDS, EXCEPT PER SHARE DATA) |
(UNAUDITED) |
|
|
|
Three
Months Ended September 30, |
|
Nine Months
Ended September 30, |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
49,791 |
|
|
$ |
55,295 |
|
|
$ |
161,583 |
|
|
$ |
176,637 |
|
|
Cost of sales |
|
|
46,960 |
|
|
|
51,118 |
|
|
|
147,507 |
|
|
|
156,483 |
|
|
Restructuring |
|
|
- |
|
|
|
164 |
|
|
|
- |
|
|
|
952 |
|
|
Gross profit |
|
|
2,831 |
|
|
|
4,013 |
|
|
|
14,076 |
|
|
|
19,202 |
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
|
Selling, general and
administrative |
|
|
3,981 |
|
|
|
4,058 |
|
|
|
13,752 |
|
|
|
14,422 |
|
|
Intangible
amortization |
|
|
111 |
|
|
|
111 |
|
|
|
333 |
|
|
|
333 |
|
|
Regulatory
settlement |
|
- |
|
|
|
816 |
|
|
|
- |
|
|
|
1,566 |
|
|
Restructuring |
|
|
874 |
|
|
|
114 |
|
|
|
874 |
|
|
|
222 |
|
|
Total operating expenses |
|
|
4,966 |
|
|
|
5,099 |
|
|
|
14,959 |
|
|
|
16,543 |
|
|
Operating (loss)
income |
|
|
(2,135 |
) |
|
|
(1,086 |
) |
|
|
(883 |
) |
|
|
2,659 |
|
|
|
|
|
|
|
|
|
|
|
|
OTHER (EXPENSE)
INCOME, net: |
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(210 |
) |
|
|
(159 |
) |
|
|
(611 |
) |
|
|
(467 |
) |
|
Other, net |
|
|
(64 |
) |
|
|
3 |
|
|
|
(36 |
) |
|
|
(10 |
) |
|
Gain on sale of assets and
restructuring |
|
|
- |
|
|
|
119 |
|
|
|
- |
|
|
|
119 |
|
|
Total other expense, net |
|
|
(274 |
) |
|
|
(37 |
) |
|
|
(647 |
) |
|
|
(358 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income before
(benefit) provision for income taxes |
|
|
(2,409 |
) |
|
|
(1,123 |
) |
|
|
(1,530 |
) |
|
|
2,301 |
|
|
(Benefit) provision for
income taxes |
|
|
(26 |
) |
|
|
(24 |
) |
|
|
(11 |
) |
|
|
41 |
|
|
(LOSS) INCOME FROM
CONTINUING OPERATIONS |
|
|
(2,383 |
) |
|
|
(1,099 |
) |
|
|
(1,519 |
) |
|
|
2,260 |
|
|
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX (INCLUDING
IMPAIRMENT OF $4,450 RECORDED IN THE THREE MONTHS ENDED SEPTEMBER
30, 2015) |
|
|
(5,230 |
) |
|
|
(715 |
) |
|
|
(9,494 |
) |
|
|
(3,256 |
) |
|
NET
LOSS |
|
$ |
(7,613 |
) |
|
$ |
(1,814 |
) |
|
$ |
(11,013 |
) |
|
$ |
(996 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS) INCOME
PER COMMON SHARE - BASIC AND DILUTED: |
|
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations |
|
$ |
(0.16 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.10 |
) |
|
$ |
0.15 |
|
|
Loss from discontinued
operations |
|
|
(0.36 |
) |
|
|
(0.05 |
) |
|
|
(0.65 |
) |
|
|
(0.22 |
) |
|
Net loss |
|
$ |
(0.52 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.75 |
) |
|
$ |
(0.07 |
) |
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING - BASIC AND DILUTED |
|
|
14,708 |
|
|
|
14,792 |
|
|
|
14,656 |
|
|
|
14,728 |
|
|
BROADWIND ENERGY, INC.
AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS
OF CASH FLOWS |
(IN THOUSANDS) |
(UNAUDITED) |
|
|
|
|
|
|
|
Nine Months
Ended September 30, |
|
|
|
|
2015 |
|
|
2014 |
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
Net loss |
|
$ |
(11,013 |
) |
$ |
(996 |
) |
|
Loss from discontinued
operations |
|
|
(9,494 |
) |
|
(3,256 |
) |
|
(Loss) income from continuing
operations |
|
|
(1,519 |
) |
|
2,260 |
|
|
|
|
|
|
|
Adjustments to
reconcile net cash used in operating activities: |
|
|
|
Depreciation and amortization
expense |
|
|
6,860 |
|
|
8,644 |
|
|
Impairment charges |
|
|
38 |
|
|
- |
|
|
Stock-based compensation |
|
|
900 |
|
|
516 |
|
|
Allowance for doubtful
accounts |
|
|
55 |
|
|
97 |
|
|
Common stock issued under defined
contribution 401(k) plan |
|
|
- |
|
|
163 |
|
|
Gain on disposal of assets |
|
|
(110 |
) |
|
(101 |
) |
|
Changes in operating assets and
liabilities: |
|
|
|
|
Accounts receivable |
|
|
(129 |
) |
|
(3,698 |
) |
|
Inventories |
|
|
(2,943 |
) |
|
4,385 |
|
|
Prepaid expenses and other current
assets |
|
|
10 |
|
|
1,857 |
|
|
Accounts payable |
|
|
(655 |
) |
|
(2,323 |
) |
|
Accrued liabilities |
|
|
(995 |
) |
|
1,777 |
|
|
Customer deposits |
|
|
(15,772 |
) |
|
(2,191 |
) |
|
Other non-current assets and
liabilities |
|
|
(468 |
) |
|
(376 |
) |
|
Net cash (used in)
provided by operating activities of continued operations |
|
|
(14,728 |
) |
|
11,010 |
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
Purchases of available for sale
securities |
|
|
(1,884 |
) |
|
(13,340 |
) |
|
Sales of available for sale
securities |
|
|
5,083 |
|
|
994 |
|
|
Maturities of available for sale
securities |
|
|
4,825 |
|
|
2,655 |
|
|
Purchases of property and
equipment |
|
|
(2,282 |
) |
|
(5,385 |
) |
|
Proceeds from disposals of property
and equipment |
|
|
1,156 |
|
|
1,009 |
|
|
Net cash provided by
(used in) by investing activities of continued operations |
|
|
6,898 |
|
|
(14,067 |
) |
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
Net proceeds from issuance of
stock |
|
|
- |
|
|
9 |
|
|
Payments on lines of credit and
notes payable |
|
|
(118,212 |
) |
|
- |
|
|
Proceeds from lines of credit and
notes payable |
|
|
118,212 |
|
|
- |
|
|
Proceeds from long-term
debt |
|
5,000 |
|
|
- |
|
|
Payments on long-term debt |
|
|
(119 |
) |
|
- |
|
|
Principal payments on capital
leases |
|
|
(598 |
) |
|
(743 |
) |
|
Net cash provided by
(used in) financing activities of continued operations |
|
|
4,283 |
|
|
(734 |
) |
|
|
|
|
|
|
|
|
|
|
|
DISCONTINUED
OPERATIONS: |
|
|
|
|
Operating cash flows |
|
|
(3,484 |
) |
|
(3,921 |
) |
|
Investing cash flows |
|
|
(368 |
) |
|
(139 |
) |
|
Financing cash flows |
|
|
(7 |
) |
|
(59 |
) |
|
Net cash used in
discontinued operations (1) |
|
|
(3,859 |
) |
|
(4,119 |
) |
|
|
|
|
|
|
Add: Cash balance of
discontinued operations, beginning of period |
|
|
93 |
|
|
185 |
|
|
Less: Cash balance of
discontinued operations, end of period |
|
|
1 |
|
|
38 |
|
|
|
|
|
|
|
NET DECREASE IN
CASH AND CASH EQUIVALENTS |
|
|
(7,314 |
) |
|
(7,763 |
) |
|
CASH AND CASH
EQUIVALENTS, beginning of the period |
|
|
12,057 |
|
|
24,751 |
|
|
CASH AND CASH
EQUIVALENTS, end of the period |
|
$ |
4,743 |
|
$ |
16,988 |
|
|
|
|
|
|
|
Supplemental cash
flow information: |
|
|
|
|
Interest paid |
|
$ |
647 |
|
$ |
434 |
|
|
Income taxes paid |
|
$ |
35 |
|
$ |
32 |
|
|
Non-cash investing
and financing activities: |
|
|
|
|
Issuance of restricted stock
grants |
|
$ |
900 |
|
$ |
338 |
|
|
Common stock issued under defined
contibution 401(k) plan |
|
$ |
- |
|
$ |
163 |
|
|
|
|
|
|
(1) Does not include intercompany financing of $3,767 and
$3,972 for the nine months ended September 30, 2015 and 2014,
respectively |
BROADWIND ENERGY, INC.
AND SUBSIDIARIES |
SELECTED SEGMENT
FINANCIAL INFORMATION |
(IN THOUSANDS) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
|
September
30, |
|
September
30, |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
ORDERS: |
|
|
|
|
|
Towers and
Weldments |
$ |
3,167 |
|
|
$ |
51,732 |
|
|
$ |
66,330 |
|
|
$ |
56,520 |
|
|
Gearing, net of
intercompany orders |
|
8,987 |
|
|
|
9,034 |
|
|
|
22,493 |
|
|
|
35,593 |
|
|
Total orders |
$ |
12,154 |
|
|
$ |
60,766 |
|
|
$ |
88,823 |
|
|
$ |
92,113 |
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES: |
|
|
|
|
|
Towers and Weldments |
|
$ |
42,943 |
|
|
$ |
45,100 |
|
|
$ |
139,003 |
|
|
$ |
146,284 |
|
|
Gearing |
|
|
7,184 |
|
|
|
10,334 |
|
|
|
23,758 |
|
|
|
31,533 |
|
|
Corporate and Other |
|
|
(336 |
) |
|
|
(139 |
) |
|
|
(1,178 |
) |
|
|
(1,180 |
) |
|
Total revenues |
|
$ |
49,791 |
|
|
$ |
55,295 |
|
|
$ |
161,583 |
|
|
$ |
176,637 |
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING (LOSS) PROFIT: |
|
|
|
|
|
Towers and Weldments |
|
$ |
2,235 |
|
|
$ |
3,352 |
|
|
$ |
10,525 |
|
|
$ |
17,523 |
|
|
Gearing |
|
|
(2,646 |
) |
|
|
(2,294 |
) |
|
|
(5,380 |
) |
|
|
(7,059 |
) |
|
Corporate and Other |
|
|
(1,724 |
) |
|
|
(2,144 |
) |
|
|
(6,028 |
) |
|
|
(7,805 |
) |
|
Total operating (loss) profit |
|
$ |
(2,135 |
) |
|
$ |
(1,086 |
) |
|
$ |
(883 |
) |
|
$ |
2,659 |
|
|
|
|
|
|
|
|
|
|
|
|
The Company reports its financial results in accordance with
U.S. generally accepted accounting principles (GAAP). However, the
Company’s management believes that certain non-GAAP financial
measures may provide users of this financial information with
meaningful comparisons between current results and results in prior
operating periods. Management believes that these non-GAAP
financial measures can provide additional meaningful reflection of
underlying trends of the business because they provide a comparison
of historical information that excludes certain infrequently
occurring or non-operational items that impact the overall
comparability. See the table below for supplemental financial data
and corresponding reconciliations to GAAP financial measures for
the three months and nine months ended September 30, 2015 and 2014.
Non-GAAP financial measures should be viewed in addition to, and
not as an alternative for, the Company’s reported results prepared
in accordance with GAAP.
BROADWIND ENERGY, INC.
AND SUBSIDIARIES |
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES |
(IN THOUSANDS) |
(Unaudited) |
|
|
|
|
|
|
|
Consolidated |
|
Three
Months Ended September 30, |
|
Nine Months
Ended September 30, |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
Operating (Loss)
Profit |
|
$ |
(2,135 |
) |
|
$ |
(1,086 |
) |
|
$ |
(883 |
) |
|
$ |
2,659 |
|
Depreciation and
Amortization |
|
|
2,400 |
|
|
|
2,999 |
|
|
|
6,860 |
|
|
|
8,644 |
|
Share-based
Compensation and Other Stock Payments |
|
|
310 |
|
|
|
184 |
|
|
|
900 |
|
|
|
497 |
|
Other (Loss)
Income |
|
|
(64 |
) |
|
|
3 |
|
|
|
(36 |
) |
|
|
(10 |
) |
Restructuring
Expense |
|
|
874 |
|
|
|
278 |
|
|
|
874 |
|
|
|
1,174 |
|
Total Adjusted EBITDA
(Non-GAAP) |
|
$ |
1,385 |
|
|
$ |
2,378 |
|
|
$ |
7,715 |
|
|
$ |
12,964 |
|
Towers and
Weldments Segment |
Three
Months Ended September 30, |
|
Nine Months
Ended September 30, |
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
Operating Profit |
$ |
2,235 |
|
|
$ |
3,352 |
|
|
$ |
10,525 |
|
|
$ |
17,523 |
|
Depreciation |
|
1,132 |
|
|
|
1,061 |
|
|
|
2,961 |
|
|
|
3,052 |
|
Share-based
Compensation and Other Stock Payments |
|
72 |
|
|
|
1 |
|
|
|
106 |
|
|
|
45 |
|
Other Income
(Expense) |
|
12 |
|
|
|
3 |
|
|
|
114 |
|
|
|
(13 |
) |
Restructuring
Expense |
|
- |
|
|
|
15 |
|
|
|
- |
|
|
|
41 |
|
Total Adjusted EBITDA
(Non-GAAP) |
$ |
3,451 |
|
|
$ |
4,432 |
|
|
$ |
13,706 |
|
|
$ |
20,648 |
|
|
|
Three
Months Ended September 30, |
|
Nine Months
Ended September 30, |
Gearing
Segment |
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
Operating Loss |
|
$ |
(2,646 |
) |
|
$ |
(2,294 |
) |
|
|
(5,380 |
) |
|
|
(7,059 |
) |
Depreciation |
|
|
1,105 |
|
|
|
1,796 |
|
|
|
3,424 |
|
|
|
5,179 |
|
Amortization |
|
|
111 |
|
|
|
111 |
|
|
|
333 |
|
|
|
333 |
|
Share-based
Compensation and Other Stock Payments |
|
|
44 |
|
|
|
(2 |
) |
|
|
183 |
|
|
|
129 |
|
Other Income |
|
|
2 |
|
|
|
- |
|
|
|
3 |
|
|
|
3 |
|
Restructuring
Expense |
|
|
874 |
|
|
|
262 |
|
|
|
874 |
|
|
|
1,133 |
|
Total Adjusted EBITDA
(Non-GAAP) |
|
$ |
(510 |
) |
|
$ |
(127 |
) |
|
$ |
(563 |
) |
|
$ |
(282 |
) |
Corporate and
Other |
Three
Months Ended September 30, |
|
Nine Months
Ended September 30, |
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
Operating Loss |
$ |
(1,724 |
) |
|
$ |
(2,144 |
) |
|
|
(6,028 |
) |
|
|
(7,805 |
) |
Depreciation |
|
52 |
|
|
|
31 |
|
|
|
142 |
|
|
|
80 |
|
Share-based
Compensation and Other Stock Payments |
|
194 |
|
|
|
185 |
|
|
|
611 |
|
|
|
323 |
|
Other (Expense) |
|
(78 |
) |
|
|
- |
|
|
|
(153 |
) |
|
|
(10 |
) |
Restructuring
Expense |
|
- |
|
|
|
1 |
|
|
|
- |
|
|
|
Total Adjusted EBITDA
(Non-GAAP) |
$ |
(1,556 |
) |
|
$ |
(1,927 |
) |
|
$ |
(5,428 |
) |
|
$ |
(7,412 |
) |
BWEN INVESTOR CONTACT: Joni Konstantelos, 708.780.4819 joni.konstantelos@bwen.com
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