Broadwind Energy, Inc. (NASDAQ:BWEN) reported sales of $37.6
million in Q4 2015, down 24% compared to $49.2 million in Q4 2014
due mainly to lower tower production resulting from production
challenges in the Abilene tower facility, and reduced demand for
gearing.
The Company reported a net loss from continuing operations of
$10.7 million, or $.73 per share, in Q4 2015, compared to $4.1
million, or $.28 per share, in Q4 2014. The $.45 per share increase
in net loss was due primarily to significantly lower Towers and
Weldments segment results due to production challenges associated
with a challenging contract in the Abilene tower facility as
previously announced.
The Company reported a net loss from discontinued operations of
$.1 million, or $.00 per share, in Q4 2015, compared to $1.1
million or $.08 per share, in Q4 2014. In Q4 2015, the Company sold
the majority of the Services segment assets.
The Company reported a non-GAAP adjusted EBITDA (earnings before
interest, taxes, depreciation, amortization, share-based payments
and restructuring costs) loss of $8.1 million in Q4 2015 compared
to a loss of $1.1 million in Q4 2014 (see attached reconciliation
of non-GAAP financial measure). The $7.0 million increased loss was
mainly attributable to losses associated with the production
challenges in the Abilene tower facility during Q4 2015.
For the full-year 2015, the Company reported sales of $199.2
million, compared to $225.8 million for the full-year 2014. The 12%
reduction was due primarily to production challenges in the Towers
and Weldments segment and a shortfall in the Gearing segment as a
result of weaker demand from oil & gas and mining customers in
2015.
Net loss from continuing operations for the full-year 2015
totaled $12.2 million or $.83 per share, compared to $1.8 million
or $.12 per share for the full-year 2014.
The Company reported a full-year 2015 non-GAAP adjusted EBITDA
loss of $.4 million compared to non-GAAP adjusted EBITDA of $11.9
million for the full-year 2014.
Broadwind Interim CEO Stephanie Kushner stated, “2015 was a
challenging year for Broadwind. Our Towers and Weldments segment
experienced production challenges and supply chain issues and our
Gearing segment suffered from weak demand due to the downturn in
the oil & gas and mining markets. Despite these significant
challenges, in the fourth quarter we sold the unprofitable Services
business, significantly reduced our working capital, paid down debt
and built up our cash balance. Our Abilene tower production
returned to plant-design levels in the current quarter. In Gearing
we applied strict cost control practices and were able to reduce
the annual operating loss by $1 million despite 30% less revenue in
this segment. In addition, we reduced our annual corporate expenses
by $2 million.”
Ms. Kushner continued, “In 2016, we will continue our focus on
improving production and tightly managing costs across the Company.
As we look to Q1, we expect $45-47 million in revenue and an
improvement to a $1.5-$2.0 million operating loss with a return to
positive EBITDA generation.”
Orders and Backlog
The Company booked $4.9 million of net new orders in Q4 2015,
down significantly from $27.9 million booked in Q4 2014 due
primarily to the timing of large tower orders. Towers and Weldments
orders, which vary considerably from quarter to quarter, totaled
$2.8 million in Q4 2015, down from $21.1 million in Q4 2014.
Gearing orders totaled $2.1 million in Q4 2015, down from $6.9
million in Q4 2014 mainly due to weaker demand from oil & gas
and mining customers.
Orders for the full-year 2015 totaled $94.0 million, down from
$120.5 million or 22% compared to the full-year 2014. Towers and
Weldments orders, which vary considerably from quarter to quarter,
totaled $69.1 million in 2015, down from $77.6 million in 2014 due
to a reduction in steel pricing passed through to customers and
lower weldments orders in 2015. Gearing orders totaled $24.9
million in 2015, down from $42.9 million in 2014 due to weaker
demand from oil & gas and mining
customers.
At December 31, 2015, total backlog was $93.9 million,
representing about six months of projected 2016 shipments. This is
down significantly from backlog of $201.4 million at December 31,
2014, as a portion of 2016 tower volume is not yet booked.
Segment Results
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 $31.9 million in Q4
2015, compared to $38.6 million in Q4 2014. The 17% decrease was
due primarily to production challenges at the Abilene facility
associated with a difficult contract. The segment experienced an
operating loss of $5.8 million in the quarter (the first quarterly
operating loss since Q4 2012) compared to operating income of $.5
million in Q4 2014. The poor results were attributable to low
production in the Company’s Abilene tower facility and losses
related to labor overruns and increased logistics and contractor
fees associated with a challenging contract from a long-term
customer. Non-GAAP adjusted EBITDA loss totaled $4.2 million,
compared to non-GAAP adjusted EBITDA of $1.6 million in Q4
2014, as a result of the factors described above.
Towers and Weldments segment sales for the full-year 2015
totaled $170.9 million, compared to $184.9 million in 2014. The 8%
reduction was primarily due to lower steel prices, which are
generally passed through to customers, the absence of a greater mix
of larger, more-complex towers in 2015, and $3.4 million of lower
weldments revenue compared to 2014. Operating income for 2015
totaled $4.7 million, down significantly from $18.1 million in
2014. The $12.8 million decrease was primarily due to the
production inefficiencies associated with an unprofitable tower
contract in the Company’s Abilene facility, as described above.
Non-GAAP adjusted EBITDA for 2015 totaled $9.5 million, compared to
$22.3 million in 2014, as a result of the factors described
above.
GearingBroadwind Energy engineers, builds and
remanufactures precision gears and gearboxes for oil and gas,
mining, steel and wind applications.
Gearing segment sales totaled $5.8 million in Q4 2015, compared
to $10.7 million in Q4 2014. The reduction was due to lower
production volumes associated with weaker demand from oil & gas
and mining customers. Gearing segment operating loss was $2.9
million in Q4 2015, compared to $2.4 million in Q4 2014. The
increased loss was due to lower volumes, offset by strong cost
control efforts in response to sharply lower revenues as well as
the absence of restructuring costs in Q4 2015. Non-GAAP adjusted
EBITDA loss for Q4 2015 was $1.5 million, compared to $.7 million
in Q4 2014, as a result of the factors described above.
Gearing segment sales for the full-year 2015 totaled $29.6
million, compared to $42.3 million in 2014. The 30% decrease was
attributable to weaker demand from oil & gas and mining
customers, partially offset by increased sales to wind energy
customers. Gearing segment operating loss for the full-year 2015
was $8.2 million, compared to $9.4 million in 2014. The $1.2
million improvement was due to successful cost management in
response to sharply lower revenues, lower depreciation and the
benefits of completing the consolidation investment. This was
partially offset by $.9 million of additional environmental
remediation expenses incurred earlier in 2015 associated with a
closed plant which is being readied for sale, and the impact of the
lower sales volume. Non-GAAP adjusted EBITDA loss was $2.1 million
in 2015, compared to $1.0 million in 2014. The increased loss was
due to the impact of lower sales volume and the $.9 million
environmental remediation expense, partially offset by the impact
of successful cost management.
CorporateCorporate and other expenses totaled
$2.3 million for Q4 2015, essentially unchanged as compared to Q4
2014.
For the full-year 2015, Corporate and other expenses totaled
$8.4 million, compared to $10.1 million in 2014. The 17% decrease
was primarily due to the absence of a $1.6 million regulatory
settlement charge in 2015, lower incentive compensation and strong
cost management, partially offset by a $1.2 million cost related to
the separation of the Company’s former CEO.
Cash and LiquidityDuring Q4 2015, operating
working capital (accounts receivable and inventory, net of accounts
payable and customer deposits) decreased sharply by $16.8 million
to $10.2 million or 7% of Q4 2015 annualized sales, mainly due to a
$9.9 million decrease in inventory and a $7.3 million decrease in
receivables during Q4 2015. The reduction in receivables reflects
shorter payment terms for the mix of towers produced.
Full-year 2015 capital expenditures totaled $2.8 million, down
from $6.3 million in 2014.
Cash assets (cash and short-term investments) totaled $12.7
million at December 31, 2015, compared to $4.8 million at September
30, 2015. The Company paid down $2 million of term debt during Q4
2015 and its credit line was undrawn at December 31, 2015. The
Company was not in compliance with the adjusted EBITDA covenant
under its loan agreement with AloStar Bank of Commerce as of
December 31, 2015. On February 23, 2016, the
Company and AloStar executed a ninth amendment to the loan
agreement waiving compliance with this covenant and amending the
covenant going forward. In connection therewith,
the Company’s credit facility was reduced from $15 million to $10
million, with a liquidity requirement of $3.5
million. The amendment also extended the credit
facility until February 28, 2017.
At year-end, debt and capital lease obligations totaled $5.8
million, down from $8.1 million at September 30, 2015.
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”—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, financial condition, cash flows,
performance, business prospects and opportunities, 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. Our
forward‑looking statements may include or relate to the following:
(i) our expectations relating to state, local and federal
regulatory frameworks affecting the industries in which we compete,
including the wind energy industry, and the related extension,
continuation or renewal of federal tax incentives and grants and
state renewable portfolio standards; (ii) our expectations with
respect to our customer relationships and efforts to diversify our
customer base and sector focus and leverage customer relationships
across business units; (iii) our plans to continue to grow our
business organically; (iv) our beliefs with respect to the
sufficiency of our liquidity and our plans to evaluate alternate
sources of funding if necessary; (v) our plans and
assumptions, including estimated costs and saving opportunities,
regarding our restructuring efforts; (vi) our ability to
realize revenue from customer orders and backlog; (vii) our
ability to operate our business efficiently, manage capital
expenditures and costs effectively, and generate cash flow;
(viii) our beliefs and expectations relating to the economy
and the potential impact it may have on our business, including our
customers; (ix) our beliefs regarding the state of the wind
energy market and other energy and industrial markets generally and
the impact of competition and economic volatility in those markets;
(x) our beliefs and expectations relating to the effects of
market disruptions and regular market volatility, including the
fluctuations in the price of oil, gas and other commodities; and
(xi) the potential loss of tax benefits if we experience an
“ownership change” under Section 382 of the Internal Revenue
Code of 1986, as amended. These statements are based on information
currently available to us and are subject to various risks,
uncertainties and other factors that could cause our actual growth,
results of operations, financial condition, cash flows,
performance, business prospects and opportunities to differ
materially from those expressed in, or implied by, these
statements. We are under no duty to update any of the
forward-looking statements after the date of this release to
conform such statements to actual results. You should not consider
any list of such factors to be an exhaustive statement of all of
the risks, uncertainties or potentially inaccurate assumptions that
could cause our current expectations or beliefs to change.
|
BROADWIND ENERGY, INC. AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(IN THOUSANDS) |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
|
|
$ |
6,436 |
|
|
$ |
12,057 |
|
|
|
|
Short-term
investments |
|
|
|
|
6,179 |
|
|
|
8,024 |
|
|
|
|
Restricted
cash |
|
|
|
|
83 |
|
|
|
83 |
|
|
|
|
Accounts
receivable, net |
|
|
|
|
9,784 |
|
|
|
17,043 |
|
|
|
|
Inventories, net |
|
|
|
|
24,219 |
|
|
|
31,144 |
|
|
|
|
Prepaid
expenses and other current assets |
|
|
|
|
1,530 |
|
|
|
1,587 |
|
|
|
|
Current
assets held for sale |
|
|
|
|
4,403 |
|
|
|
7,805 |
|
|
|
|
|
Total
current assets |
|
|
|
|
52,634 |
|
|
|
77,743 |
|
|
|
LONG-TERM ASSETS: |
|
|
|
|
|
|
|
|
|
Property
and equipment, net |
|
|
|
|
51,906 |
|
|
|
58,529 |
|
|
|
|
Intangible
assets, net |
|
|
|
|
5,016 |
|
|
|
5,459 |
|
|
|
|
Other
assets |
|
351 |
|
|
|
413 |
|
|
|
|
Long-term
assets held for sale |
|
|
|
|
- |
|
|
|
4,473 |
|
|
|
TOTAL ASSETS |
|
|
|
$ |
109,907 |
|
|
$ |
146,617 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
|
Current
maturities of long-term debt |
|
|
|
$ |
2,799 |
|
|
$ |
118 |
|
|
|
|
Current
portions of capital lease obligations |
|
|
|
|
447 |
|
|
|
767 |
|
|
|
|
Accounts
payable |
|
|
|
|
13,822 |
|
|
|
17,547 |
|
|
|
|
Accrued
liabilities |
|
|
|
|
8,134 |
|
|
|
9,260 |
|
|
|
|
Customer
deposits |
|
|
|
|
9,940 |
|
|
|
22,397 |
|
|
|
|
Current
liabilities held for sale |
|
|
|
|
1,613 |
|
|
|
1,579 |
|
|
|
|
|
Total
current liabilities |
|
|
|
|
36,755 |
|
|
|
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 |
|
3,060 |
|
|
|
3,467 |
|
|
|
|
Long-term
liabilities held for sale |
|
|
|
|
- |
|
|
|
30 |
|
|
|
|
|
Total
long-term liabilities |
|
|
|
|
5,660 |
|
|
|
6,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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; 15,012,789
and |
|
|
|
|
|
|
|
|
|
14,844,307
shares issued as of December 31, 2015 and 2014, respectively |
|
|
|
|
15 |
|
|
|
15 |
|
|
|
|
Treasury
stock, at cost, 273,937 shares and 0 shares at December 31,
2015 |
|
|
|
|
|
|
|
|
|
and 2014,
respectively |
|
|
|
|
(1,842 |
) |
|
|
(1,842 |
) |
|
|
|
Additional
paid-in capital |
|
|
|
|
378,104 |
|
|
|
377,185 |
|
|
|
|
Accumulated
deficit |
|
|
|
|
(308,785 |
) |
|
|
(286,978 |
) |
|
|
|
|
Total
stockholders' equity |
|
|
|
|
67,492 |
|
|
|
88,380 |
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
$ |
109,907 |
|
|
$ |
146,617 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROADWIND ENERGY, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(IN THOUSANDS, EXCEPT PER SHARE DATA) |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
For the Years Ended December 31, |
|
|
|
|
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
37,573 |
|
|
$ |
49,193 |
|
|
$ |
199,156 |
|
|
$ |
225,829 |
|
|
|
|
Cost of
sales |
|
|
43,781 |
|
|
|
48,370 |
|
|
|
191,289 |
|
|
|
204,852 |
|
|
|
|
Restructuring |
|
|
- |
|
|
|
329 |
|
|
|
- |
|
|
|
1,281 |
|
|
|
|
Gross
profit |
|
|
(6,208 |
) |
|
|
494 |
|
|
|
7,867 |
|
|
|
19,696 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative |
|
|
4,519 |
|
|
|
4,508 |
|
|
|
18,271 |
|
|
|
18,931 |
|
|
|
|
Intangible
amortization |
|
|
111 |
|
|
|
111 |
|
|
|
444 |
|
|
|
444 |
|
|
|
|
Regulatory
settlement |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,566 |
|
|
|
|
Restructuring |
|
|
186 |
|
|
|
11 |
|
|
|
1,060 |
|
|
|
233 |
|
|
|
|
|
Total
operating expenses |
|
|
4,816 |
|
|
|
4,630 |
|
|
|
19,775 |
|
|
|
21,174 |
|
|
|
|
Operating
loss |
|
|
(11,024 |
) |
|
|
(4,136 |
) |
|
|
(11,908 |
) |
|
|
(1,478 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
(EXPENSE) INCOME, net: |
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net |
|
|
(188 |
) |
|
|
(189 |
) |
|
|
(799 |
) |
|
|
(656 |
) |
|
|
|
Other,
net |
|
|
461 |
|
|
|
83 |
|
|
|
425 |
|
|
|
73 |
|
|
|
|
Gain on sale
of assets and restructuring |
|
|
- |
|
|
|
(84 |
) |
|
|
- |
|
|
|
36 |
|
|
|
|
|
Total other
expense, net |
|
|
273 |
|
|
|
(190 |
) |
|
|
(374 |
) |
|
|
(547 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
before (benefit) for income taxes |
|
|
(10,751 |
) |
|
|
(4,326 |
) |
|
|
(12,282 |
) |
|
|
(2,025 |
) |
|
|
|
(Benefit) for
income taxes |
|
|
(25 |
) |
|
|
(271 |
) |
|
|
(36 |
) |
|
|
(232 |
) |
|
|
|
(LOSS)
FROM CONTINUING OPERATIONS |
|
|
(10,726 |
) |
|
|
(4,055 |
) |
|
|
(12,246 |
) |
|
|
(1,793 |
) |
|
|
|
(LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX
(INCLUDING IMPAIRMENT OF $1,500 RECORDED IN THE YEAR ENDED DECEMBER
31, 2015) |
|
|
(66 |
) |
|
|
(1,117 |
) |
|
|
(9,561 |
) |
|
|
(4,375 |
) |
|
|
|
NET
LOSS |
|
$ |
(10,792 |
) |
|
$ |
(5,172 |
) |
|
$ |
(21,807 |
) |
|
$ |
(6,168 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
(LOSS) PER COMMON SHARE - BASIC AND DILUTED: |
|
|
|
|
|
|
|
|
|
|
|
(Loss) from
continuing operations |
|
$ |
(0.73 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.83 |
) |
|
$ |
(0.12 |
) |
|
|
|
(Loss) from
discontinued operations |
|
|
(0.00 |
) |
|
|
(0.08 |
) |
|
|
(0.65 |
) |
|
|
(0.30 |
) |
|
|
|
Net loss |
|
$ |
(0.73 |
) |
|
$ |
(0.35 |
) |
|
$ |
(1.48 |
) |
|
$ |
(0.42 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND
DILUTED |
|
|
14,738 |
|
|
|
14,677 |
|
|
|
14,677 |
|
|
|
14,715 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROADWIND ENERGY, INC. AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
|
|
|
|
|
|
|
|
(IN
THOUSANDS) |
|
|
|
|
|
|
|
|
|
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
|
CASH
FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
Net loss |
|
$ |
(21,807 |
) |
$ |
(6,168 |
) |
|
|
|
|
Loss from
discontinued operations |
|
|
(9,561 |
) |
|
(4,375 |
) |
|
|
|
|
Loss from
continuing operations |
|
|
(12,246 |
) |
|
(1,793 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net cash used in operating
activities: |
|
|
|
|
|
|
|
Depreciation
and amortization expense |
|
|
9,179 |
|
|
10,944 |
|
|
|
|
|
|
Impairment
charges |
|
|
183 |
|
|
84 |
|
|
|
|
|
|
Stock-based
compensation |
|
|
919 |
|
|
888 |
|
|
|
|
|
|
Allowance for
doubtful accounts |
|
|
35 |
|
|
65 |
|
|
|
|
|
|
Common stock
issued under defined contribution 401(k) plan |
|
|
- |
|
|
163 |
|
|
|
|
|
|
Gain on
disposal of assets |
|
|
(98 |
) |
|
(157 |
) |
|
|
|
|
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
Accounts
receivable |
|
|
7,223 |
|
|
498 |
|
|
|
|
|
|
|
Inventories |
|
|
6,925 |
|
|
1,599 |
|
|
|
|
|
|
|
Prepaid expenses and
other current assets |
|
|
(25 |
) |
|
2,091 |
|
|
|
|
|
|
|
Accounts
payable |
|
|
(3,625 |
) |
|
(8,872 |
) |
|
|
|
|
|
|
Accrued
liabilities |
|
|
(1,126 |
) |
|
1,330 |
|
|
|
|
|
|
|
Customer deposits |
|
|
(12,457 |
) |
|
(253 |
) |
|
|
|
|
|
|
Other non-current
assets and liabilities |
|
|
(399 |
) |
|
(472 |
) |
|
|
|
Net cash
(used in) provided by operating activities of continued
operations |
|
|
(5,512 |
) |
|
6,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
Purchases
of available for sale securities |
|
|
(8,062 |
) |
|
(15,088 |
) |
|
|
|
|
Sales of
available for sale securities |
|
|
5,082 |
|
|
1,101 |
|
|
|
|
|
Maturities
of available for sale securities |
|
|
4,825 |
|
|
7,106 |
|
|
|
|
|
Purchases
of property and equipment |
|
|
(2,789 |
) |
|
(6,297 |
) |
|
|
|
|
Proceeds
from disposals of property and equipment |
|
|
1,156 |
|
|
1,009 |
|
|
|
|
Net cash
provided by (used in) by investing activities of continued
operations |
|
|
212 |
|
|
(12,169 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
Net proceeds
from issuance of stock |
|
|
- |
|
|
9 |
|
|
|
|
|
Net proceeds
used in repurchasing of common stock |
|
- |
|
|
(1,842 |
) |
|
|
|
|
Payments on
lines of credit and notes payable |
|
|
(118,212 |
) |
|
(15,850 |
) |
|
|
|
|
Proceeds from
lines of credit and notes payable |
|
|
118,212 |
|
|
15,850 |
|
|
|
|
|
Proceeds from
long-term debt |
|
5,000 |
|
|
- |
|
|
|
|
|
Payments on
long-term debt |
|
|
(2,201 |
) |
|
- |
|
|
|
|
|
Principal
payments on capital leases |
|
|
(747 |
) |
|
(934 |
) |
|
|
|
Net cash
provided by (used in) financing activities of continued
operations |
|
|
2,052 |
|
|
(2,767 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DISCONTINUED OPERATIONS: |
|
|
|
|
|
|
|
Operating
cash flows |
|
|
(5,327 |
) |
|
(3,613 |
) |
|
|
|
|
Investing
cash flows |
|
|
2,864 |
|
|
(151 |
) |
|
|
|
|
Financing
cash flows |
|
|
(3 |
) |
|
(201 |
) |
|
|
|
Net cash
used in discontinued operations |
|
|
(2,466 |
) |
|
(3,965 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Cash
balance of discontinued operations, beginning of period |
|
|
93 |
|
|
185 |
|
|
|
|
Less: Cash
balance of discontinued operations, end of period |
|
|
- |
|
|
93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
DECREASE IN CASH AND CASH EQUIVALENTS |
|
|
(5,621 |
) |
|
(12,694 |
) |
|
|
|
CASH AND CASH EQUIVALENTS, beginning of the
period |
|
|
12,057 |
|
|
24,751 |
|
|
|
|
CASH AND CASH EQUIVALENTS, end of the period |
|
$ |
6,436 |
|
$ |
12,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash flow information: |
|
|
|
|
|
|
|
Interest
paid |
|
$ |
652 |
|
$ |
601 |
|
|
|
|
|
Income
taxes paid |
|
$ |
48 |
|
$ |
62 |
|
|
|
|
Non-cash investing and financing activities: |
|
|
|
|
|
|
|
Issuance of
restricted stock grants |
|
$ |
919 |
|
$ |
888 |
|
|
|
|
|
Common
stock issued under defined contribution 401(k) plan |
|
$ |
- |
|
$ |
163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROADWIND ENERGY, INC. AND SUBSIDIARIES |
|
SELECTED SEGMENT FINANCIAL INFORMATION |
|
(IN THOUSANDS) |
|
(UNAUDITED) |
|
|
|
|
|
|
Three Months
Ended |
|
Twelve Months
Ended |
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
ORDERS: |
|
|
|
|
|
|
|
|
|
Towers and
Weldments |
$ |
2,816 |
|
|
$ |
21,051 |
|
|
$ |
69,146 |
|
|
$ |
77,570 |
|
|
|
|
|
Gearing |
|
2,088 |
|
|
|
6,858 |
|
|
|
24,881 |
|
|
|
42,910 |
|
|
|
|
|
Total orders |
$ |
4,904 |
|
|
$ |
27,909 |
|
|
$ |
94,027 |
|
|
$ |
120,480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES: |
|
|
|
|
|
|
|
|
|
Towers and
Weldments |
|
|
$ |
31,916 |
|
|
$ |
38,620 |
|
|
$ |
170,919 |
|
|
$ |
184,904 |
|
|
|
|
|
Gearing |
|
|
|
5,830 |
|
|
|
10,720 |
|
|
|
29,588 |
|
|
|
42,253 |
|
|
|
|
|
Corporate and
Other |
|
|
|
(173 |
) |
|
|
(148 |
) |
|
|
(1,351 |
) |
|
|
(1,328 |
) |
|
|
|
|
Total revenues |
|
|
$ |
37,573 |
|
|
$ |
49,192 |
|
|
$ |
199,156 |
|
|
$ |
225,829 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING (LOSS) PROFIT: |
|
|
|
|
|
|
|
|
|
Towers and
Weldments |
|
|
$ |
(5,823 |
) |
|
$ |
542 |
|
|
$ |
4,702 |
|
|
$ |
18,065 |
|
|
|
|
|
Gearing |
|
|
|
(2,855 |
) |
|
|
(2,364 |
) |
|
|
(8,235 |
) |
|
|
(9,423 |
) |
|
|
|
|
Corporate and
Other |
|
|
|
(2,347 |
) |
|
|
(2,315 |
) |
|
|
(8,375 |
) |
|
|
(10,120 |
) |
|
|
|
|
Total operating (loss) profit |
|
|
$ |
(11,025 |
) |
|
$ |
(4,137 |
) |
|
$ |
(11,908 |
) |
|
$ |
(1,478 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 that this non-GAAP financial measure is useful to
investors because it provides investors with a better understanding
of the Company’s past financial performance and future results. The
Company’s management uses adjusted EBITDA when it internally
evaluates the performance of the Company’s business, reviews
financial trends and makes operating and strategic decisions. The
Company believes that providing this non-GAAP financial measure to
its investors is useful because it allows investors to evaluate the
Company’s performance using the same methodology and information as
Company management. The Company's definition of adjusted EBITDA may
be different from similar non-GAAP financial measures used by other
companies and/or analysts.
|
|
|
|
BROADWIND ENERGY, INC. AND SUBSIDIARIES |
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|
|
(IN THOUSANDS) |
|
|
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
Operating
(Loss) |
|
$ |
(11,024 |
) |
|
$ |
(4,137 |
) |
|
$ |
(11,908 |
) |
|
$ |
(1,478 |
) |
|
Depreciation and Amortization |
|
|
2,319 |
|
|
|
2,300 |
|
|
|
9,179 |
|
|
|
10,944 |
|
|
Share-based
Compensation and Other Stock Payments |
|
|
(4 |
) |
|
|
355 |
|
|
|
893 |
|
|
|
852 |
|
|
Other
Income |
|
|
461 |
|
|
|
83 |
|
|
|
425 |
|
|
|
73 |
|
|
Restructuring Expense |
|
|
186 |
|
|
|
340 |
|
|
|
1,060 |
|
|
|
1,514 |
|
|
|
|
Adjusted EBITDA
(Non-GAAP) |
|
$ |
(8,062 |
) |
|
$ |
(1,059 |
) |
|
$ |
(351 |
) |
|
$ |
11,905 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Towers and
Weldments Segment |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
Operating (Loss)
Profit |
$ |
(5,823 |
) |
|
$ |
542 |
|
|
$ |
4,702 |
|
|
$ |
18,065 |
|
|
Depreciation |
|
992 |
|
|
|
941 |
|
|
|
3,954 |
|
|
|
3,993 |
|
|
Share-based
Compensation and Other Stock Payments |
|
6 |
|
|
|
54 |
|
|
|
111 |
|
|
|
99 |
|
|
Other Income |
|
445 |
|
|
|
84 |
|
|
|
560 |
|
|
|
71 |
|
|
Restructuring
Expense |
|
186 |
|
|
|
7 |
|
|
|
186 |
|
|
|
47 |
|
|
Adjusted EBITDA (Non-GAAP) |
$ |
(4,194 |
) |
|
$ |
1,628 |
|
|
$ |
9,513 |
|
|
$ |
22,275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
Gearing
Segment |
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
$ |
(2,855 |
) |
|
$ |
(2,364 |
) |
|
|
(8,235 |
) |
|
|
(9,423 |
) |
|
|
|
Depreciation |
|
|
1,164 |
|
|
|
1,193 |
|
|
|
4,588 |
|
|
|
6,372 |
|
|
|
|
Amortization |
|
|
111 |
|
|
|
111 |
|
|
|
444 |
|
|
|
444 |
|
|
|
|
Share-based
Compensation and Other Stock Payments |
|
|
45 |
|
|
|
62 |
|
|
|
228 |
|
|
|
191 |
|
|
|
|
Other Income |
|
|
16 |
|
|
|
- |
|
|
|
18 |
|
|
|
3 |
|
|
|
|
Restructuring
Expense |
|
|
- |
|
|
|
333 |
|
|
|
874 |
|
|
|
1,466 |
|
|
|
|
Adjusted EBITDA (Non-GAAP) |
|
$ |
(1,519 |
) |
|
$ |
(665 |
) |
|
$ |
(2,083 |
) |
|
$ |
(947 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and
Other |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
Operating Loss |
$ |
(2,347 |
) |
|
$ |
(2,315 |
) |
|
|
(8,375 |
) |
|
|
(10,120 |
) |
|
|
Depreciation |
|
52 |
|
|
|
55 |
|
|
|
194 |
|
|
|
135 |
|
|
|
Share-based
Compensation and Other Stock Payments |
|
(55 |
) |
|
|
238 |
|
|
|
553 |
|
|
|
562 |
|
|
|
Other (Expense) |
|
- |
|
|
|
- |
|
|
|
(153 |
) |
|
|
- |
|
|
|
Adjusted EBITDA (Non-GAAP) |
$ |
(2,350 |
) |
|
$ |
(2,022 |
) |
|
$ |
(7,781 |
) |
|
$ |
(9,423 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BWEN INVESTOR CONTACT: Joni Konstantelos, 708.780.4819 joni.konstantelos@bwen.com
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