Broadwind Energy Announces Preliminary Q4 2015 Results
February 05 2016 - 7:00AM
Broadwind Energy, Inc. (NASDAQ:BWEN) today announced that its
revenue and loss per share for the quarter and year ending December
31, 2015 are expected to be below the Company’s previous estimates
due to substantial production issues and one-time costs associated
with an unprofitable contract in the Company’s Abilene tower
facility.
Based on preliminary financial results, the Company now expects
consolidated fourth-quarter revenue to be approximately $38 million
and the consolidated fourth-quarter operating loss to be
approximately $11 million, versus guidance of a $4-5 million
operating loss. This is primarily due to a $5 million loss in the
Towers and Heavy Weldments segment mainly due to low production in
the Company’s Abilene tower facility, where labor overruns,
inventory charges and other manufacturing inefficiencies were
incurred, associated with a challenging order taken in 2014.
Broadwind interim CEO Stephanie Kushner stated, “We can see with
hindsight that this contract was a poor fit for the site layout and
organizational maturity of our Abilene plant. As a result, our
fourth-quarter production rate was just one-quarter of our design
capacity. This drove significant labor inefficiencies and very low
overhead absorption. In early January, we made the decision to
curtail this production run in Abilene and produce the remaining
towers from this order in our Manitowoc facility. We have analyzed
past performance in the Abilene plant, implemented upgraded methods
and have now begun a new production run for a known product line
with a long-term customer. Today the plant is again producing
at or near the plant design rate.”
Ms. Kushner continued, “Despite these challenges, we ended 2015
with a cash balance that exceeded $12 million as expected, paid
down a portion of our long-term debt, and our credit line remains
undrawn. We remain focused on delivering improved performance,
reducing costs, expanding throughput and enhancing efficiency.”
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, 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 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 third-quarter outlook, as well as assumptions made
by, and information currently available to, our management.
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
continue to grow our business through organic growth; our plans
with respect to the use of proceeds from financing activities and
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.
BWEN INVESTOR CONTACT: Joni Konstantelos, 708.780.4819 joni.konstantelos@bwen.com
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