Highlights:
Broadwind Energy, Inc. (NASDAQ:BWEN) reported sales of $43.4
million in Q2 2016, down 31% compared to $62.6 million in Q2 2015
as a result of lower Towers and Weldments segment revenue due to
lower volume and material costs, and reduced Gearing segment
revenue due to lower demand from oil & gas and mining
customers.
The Company reported break-even results for continuing
operations in Q2 2016, compared to net income from continuing
operations of $3.4 million, or $.23 per share, in Q2 2015. The $.23
per share reduction was due to the timing of tower deliveries in
2015 and a less profitable mix of towers produced in the Towers and
Weldments segment, partially offset by significant operational
improvements in the Company’s Abilene, TX tower facility and
successful cost management actions across the Company.
The Company reported a net loss from discontinued operations of
$.5 million, or $.03 per share, in Q2 2016, compared to a net loss
from discontinued operations of $1.8 million, or $.12 per share, in
Q2 2015.
The Company reported non-GAAP adjusted EBITDA (earnings before
interest, taxes, depreciation, amortization, share-based payments
and restructuring costs) of $2.1 million in Q2 2016, compared to
$6.1 million in Q2 2015 (see attached reconciliation of non-GAAP
financial measure). The $4.0 million decrease was mainly
attributable to the factors described above.
Broadwind CEO Stephanie Kushner stated, “Broadwind had a solid
second quarter. We booked $176 million in new orders, essentially
filling our tower backlog for the remainder of 2016 and locking in
a significant portion of tower production through 2019. Gearing is
seeing strength in the wind and steel markets that is helping to
offset weak orders in the oil & gas and mining markets. Overall
tower revenue was down compared to Q2 2015, as expected,
attributable to lower steel costs, a spike in tower deliveries in
the second quarter of last year and planned lower production in our
Wisconsin plant. In Gearing, despite lower revenue, successful cost
management efforts led to a narrowed operating loss compared to Q2
2015. Our cash outlook is strong, so we repaid $2.4 million of debt
early, leaving only the low-interest subsidized loan in place.”
Ms. Kushner continued, “Our tower plants are running very well,
and we are ahead of schedule on contracted deliveries despite a
model changeover during the quarter. We are focused on securing
remaining tower orders for 2017, expanding our gearing customer
base and tightly managing costs across the Company. For the second
half of the year, we expect to be modestly profitable on revenue of
$86-90 million.”
For the six months ended June 30, 2016, revenue totaled $90.1
million, compared to $111.8 million for the six months ended June
30, 2015. The 19% reduction was due primarily to lower Towers and
Weldments revenue attributable to lower steel and other material
costs and 4% lower volumes, and lower Gearing revenue related to
reduced demand from oil & gas and mining customers. Net loss
from continuing operations for the six months ended June 30, 2016
was $.3 million, or $.02 per share, compared with net income from
continuing operations of $.9 million, or $.06 per share, for the
six months ended June 30, 2015. The decrease was due to a lower
margin mix of towers sold and reduced Gearing revenue, largely
offset by cost saving initiatives Company-wide. The Company
reported non-GAAP adjusted EBITDA of $3.8 million for the six
months ended June 30, 2016, down from $6.9 million for the six
months ended June 30, 2015, due to the factors described above.
Orders and Backlog
The Company booked $176.2 million of net new orders in Q2 2016,
up sharply from $55.2 million of orders booked in Q2 2015. Towers
and Weldments orders, which vary considerably from quarter to
quarter, totaled $170.6 million in Q2 2016, up substantially from
$51.4 million in Q2 2015. Of the $170.6 million, $137 million was
attributable to a multi-year framework agreement that locks up a
significant portion of production capacity for the next three
years. Gearing orders totaled $5.6 million in Q2 2016, nearly
double the prior year period, due to strength in the wind and steel
markets which offset very low orders from oil & gas customers,
and continued weakness in mining.
At June 30, 2016, total backlog was $218.9 million, up
significantly from backlog of $165.8 million at June 30, 2015.
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 $38.0 million in Q2
2016, compared to $55.0 million in Q2 2015 due mainly to $6 million
in lower steel and other material costs, which are generally passed
through to customers and due to the absence of the $5 million
timing benefit in Q2 2015 when towers completed in Q1 2015 and held
in inventory pending customer acceptance were delivered. The
decrease in sales was also attributable to 8% lower production
driven by the timing of orders and steel deliveries, and a less
profitable mix of towers produced in Q2 2016.
Towers and Weldments segment operating income in Q2 2016 totaled
$2.7 million, compared to $7.2 million in Q2 2015, reflecting the
volume and mix factors cited above, partially offset by
significantly improved operating efficiencies at the Company’s
Abilene, TX tower facility in Q2 2016.Towers and Weldments segment
net income in Q2 2016 totaled $1.8 million compared to $4.7 million
in Q2 2015. Non-GAAP adjusted EBITDA totaled $3.9 million in Q2
2016, compared to non-GAAP adjusted EBITDA of $8.1 million in Q2
2015, as a result of the factors described above. (See attached
reconciliation of non-GAAP financial measure).
GearingBroadwind Energy engineers, builds and
remanufactures precision gears and gearboxes for oil and gas,
mining, steel and wind applications.
Gearing segment sales totaled $5.4 million in Q2 2016, compared
to $8.0 million in Q2 2015. The 32% reduction in sales was due to
weaker demand from oil & gas and mining customers.
Despite the lower revenue, Gearing segment operating loss
narrowed to $1.2 million in Q2 2016, compared to $1.5 million in Q2
2015. Successful cost management led to an overall reduction in
fixed overhead and operating expenses which more than offset $.3
million in severance charges. Net Loss for the Gearing segment
declined to $1.2 million in Q2 2016 compared to $1.5 million in Q2
2015. Non-GAAP adjusted EBITDA loss for Q2 2016 was $.5 million,
compared to non-GAAP adjusted EBITDA loss of $.2 million in Q2
2015. ( See attached reconciliation of non-GAAP financial measure).
The increase was primarily due to lower volumes, offset by strong
cost control efforts.
CorporateCorporate and other expenses totaled
$1.4 million in Q2 2016, compared to $2.0 million in Q2 2015. Lower
employee compensation costs and other cost savings initiatives
contributed to this decrease.
Cash and LiquidityDuring Q2 2016, operating
working capital (accounts receivable and inventory, net of accounts
payable and customer deposits) increased by $3.0 million to $10.8
million, or 6% of Q2 2016 annualized sales, mainly due to a $2.0
million increase in inventory.
Capital expenditures in Q2 2016 totaled $1.0 million, up from
$.6 million in Q2 2015.
At June 30, 2016, debt and capital lease obligations totaled
$3.3 million, down from $5.5 million at March 31, 2016, due to an
early pay-down of term debt during Q2 2016.
Cash assets (cash and short-term investments) totaled $11.1
million at June 30, 2016, compared to $15.4 million at March 31,
2016 due to the debt repayment described above. The Company’s
credit line was undrawn at June 30, 2016.
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”, as defined
in Section 21E of the Securities Exchange Act of 1934, as
amended. Forward‑looking statements include any statement that does
not directly relate to a current or historical fact. Our
forward-looking statements may include or relate to our beliefs,
expectations, plans and/or assumptions with respect to the
following: (i) 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 customer relationships and efforts to diversify
our customer base and sector focus and leverage customer
relationships across business units; (iii) our ability to continue
to grow our business organically; (iv) the sufficiency of our
liquidity and alternate sources of funding, if necessary; (v) our
restructuring efforts, including estimated costs and saving
opportunities; (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) the economy and the potential impact it
may have on our business, including our customers; (ix) 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) the effects of market disruptions and regular
market volatility, including 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 results to be materially different from the forward-looking
statements including, but not limited to, those set forth under the
caption “Risk Factors” in Item 1A of our Annual Report on Form 10-K
for the year ended December 31, 2015. We are under no duty to
update any of these statements. You should not consider any list of
such factors to be an exhaustive statement of all of the risks,
uncertainties or other factors that could cause our current
beliefs, expectations, plans and/or assumptions to change and
could.
|
|
|
|
|
|
|
|
BROADWIND ENERGY, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(IN THOUSANDS) |
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December
31, |
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
ASSETS |
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
7,501 |
|
|
$ |
6,436 |
|
|
|
|
Short-term
investments |
|
|
3,605 |
|
|
|
6,179 |
|
|
|
|
Restricted
cash |
|
|
39 |
|
|
|
83 |
|
|
|
|
Accounts
receivable, net of allowance for doubtful accounts of $159 |
|
|
|
|
|
|
|
and
$84 as of June 30, 2016 and December 31, 2015, respectively |
|
|
16,866 |
|
|
|
9,784 |
|
|
|
|
Inventories, net |
|
|
21,047 |
|
|
|
24,219 |
|
|
|
|
Prepaid
expenses and other current assets |
|
|
1,333 |
|
|
|
1,530 |
|
|
|
|
Current
assets held for sale |
|
|
1,637 |
|
|
|
4,403 |
|
|
|
|
|
Total
current assets |
|
|
52,028 |
|
|
|
52,634 |
|
|
|
LONG-TERM ASSETS: |
|
|
|
|
|
|
|
Property
and equipment, net |
|
|
51,310 |
|
|
|
51,906 |
|
|
|
|
Intangible
assets, net |
|
|
4,794 |
|
|
|
5,016 |
|
|
|
|
Other
assets |
|
|
336 |
|
|
|
351 |
|
|
|
TOTAL ASSETS |
|
$ |
108,468 |
|
|
$ |
109,907 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
Current
maturities of long-term debt |
|
$ |
- |
|
|
$ |
2,799 |
|
|
|
|
Current
portions of capital lease obligations |
|
|
297 |
|
|
|
447 |
|
|
|
|
Accounts
payable |
|
|
15,736 |
|
|
|
13,822 |
|
|
|
|
Accrued
liabilities |
|
|
7,658 |
|
|
|
8,134 |
|
|
|
|
Customer
deposits |
|
|
11,383 |
|
|
|
9,940 |
|
|
|
|
Current
liabilities held for sale |
|
|
960 |
|
|
|
1,613 |
|
|
|
|
|
Total
current liabilities |
|
|
36,034 |
|
|
|
36,755 |
|
|
|
LONG-TERM LIABILITIES: |
|
|
|
|
|
|
|
Long-term
debt, net of current maturities |
|
|
2,600 |
|
|
|
2,600 |
|
|
|
|
Long-term
capital lease obligations, net of current portions |
|
|
451 |
|
|
|
- |
|
|
|
|
Other |
|
|
2,310 |
|
|
|
3,060 |
|
|
|
|
|
Total
long-term liabilities |
|
|
5,361 |
|
|
|
5,660 |
|
|
|
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;
15,124,046 |
|
|
|
|
|
|
|
and
15,012,789 shares issued as of June 30, 2016 and |
|
|
|
|
|
|
|
December
31, 2015, respectively |
|
|
15 |
|
|
|
15 |
|
|
|
|
Treasury
stock, at cost, 273,937 shares as of June 30, 2016 and December 31,
2015, |
|
|
|
|
|
|
|
respectively |
|
(1,842 |
) |
|
|
(1,842 |
) |
|
|
|
Additional
paid-in capital |
|
|
378,536 |
|
|
|
378,104 |
|
|
|
|
Accumulated
deficit |
|
|
(309,636 |
) |
|
|
(308,785 |
) |
|
|
|
|
Total
stockholders' equity |
|
|
67,073 |
|
|
|
67,492 |
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
108,468 |
|
|
$ |
109,907 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROADWIND ENERGY, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(IN THOUSANDS,
EXCEPT PER SHARE DATA)(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
Revenues |
|
$ |
43,380 |
|
|
$ |
62,563 |
|
|
$ |
90,137 |
|
|
$ |
111,792 |
|
|
|
|
Cost of
sales |
|
|
39,238 |
|
|
|
54,064 |
|
|
|
82,033 |
|
|
|
100,548 |
|
|
|
|
Gross
profit |
|
|
4,142 |
|
|
|
8,499 |
|
|
|
8,104 |
|
|
|
11,244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative |
|
|
3,850 |
|
|
|
4,755 |
|
|
|
7,925 |
|
|
|
9,770 |
|
|
|
|
Intangible
amortization |
|
|
111 |
|
|
|
111 |
|
|
|
222 |
|
|
|
222 |
|
|
|
|
Restructuring |
|
|
- |
|
|
|
17 |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
Total
operating expenses |
|
|
3,961 |
|
|
|
4,883 |
|
|
|
8,147 |
|
|
|
9,992 |
|
|
|
|
Operating
Income/(loss) |
|
|
181 |
|
|
|
3,616 |
|
|
|
(43 |
) |
|
|
1,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
(EXPENSE) INCOME, net: |
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net |
|
|
(152 |
) |
|
|
(247 |
) |
|
|
(306 |
) |
|
|
(401 |
) |
|
|
|
Other,
net |
|
|
5 |
|
|
|
(83 |
) |
|
|
17 |
|
|
|
27 |
|
|
|
|
Gain on sale
of assets and restructuring |
|
|
- |
|
|
|
38 |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
Total other
(expense), net |
|
|
(147 |
) |
|
|
(292 |
) |
|
|
(289 |
) |
|
|
(374 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss) before (benefit) provision for income taxes |
|
|
34 |
|
|
|
3,324 |
|
|
|
(332 |
) |
|
|
878 |
|
|
|
|
(Benefit)
provision for income taxes |
|
|
(8 |
) |
|
|
(62 |
) |
|
|
(16 |
) |
|
|
15 |
|
|
|
|
INCOME/(LOSS) FROM CONTINUING OPERATIONS |
|
|
42 |
|
|
|
3,386 |
|
|
|
(316 |
) |
|
|
863 |
|
|
|
|
LOSS FROM DISCONTINUED OPERATIONS, NET OF
TAX |
|
|
(516 |
) |
|
|
(1,771 |
) |
|
|
(535 |
) |
|
|
(4,263 |
) |
|
|
|
NET
INCOME/(LOSS) |
|
$ |
(474 |
) |
|
$ |
1,615 |
|
|
$ |
(851 |
) |
|
$ |
(3,400 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NETINCOME/( LOSS) PER COMMON SHARE - BASIC: |
|
|
|
|
|
|
|
|
|
|
|
Income/(loss)
from continuing operations |
|
$ |
0.00 |
|
|
$ |
0.23 |
|
|
$ |
(0.02 |
) |
|
$ |
0.06 |
|
|
|
|
Loss from
discontinued operations |
|
|
(0.03 |
) |
|
|
(0.12 |
) |
|
|
(0.04 |
) |
|
|
(0.29 |
) |
|
|
|
Net
Income/(loss) |
|
$ |
(0.03 |
) |
|
$ |
0.11 |
|
|
$ |
(0.06 |
) |
|
$ |
(0.23 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -
BASIC |
|
|
14,835 |
|
|
|
14,663 |
|
|
|
14,797 |
|
|
|
14,630 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME (LOSS) PER COMMON SHARE - DILUTED: |
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
from continuing operations |
|
$ |
0.00 |
|
|
$ |
0.23 |
|
|
$ |
(0.02 |
) |
|
$ |
0.06 |
|
|
|
|
Loss from
discontinued operations |
|
|
(0.03 |
) |
|
|
(0.12 |
) |
|
|
(0.04 |
) |
|
|
(0.29 |
) |
|
|
|
Net income
(loss) |
|
$ |
(0.03 |
) |
|
$ |
0.11 |
|
|
$ |
(0.06 |
) |
|
$ |
(0.23 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -
DILUTED |
|
|
14,835 |
|
|
|
14,780 |
|
|
|
14,797 |
|
|
|
14,630 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROADWIND ENERGY, INC. AND SUBSIDIARIESCONSOLIDATED
STATEMENTS OF CASH FLOWS(IN THOUSANDS)(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
|
|
|
|
|
|
|
2016 |
|
|
2015 |
|
|
|
|
CASH
FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
Net loss |
|
$ |
(851 |
) |
$ |
(3,400 |
) |
|
|
|
|
Loss from
discontinued operations |
|
|
(535 |
) |
|
(4,263 |
) |
|
|
|
|
Income/(Loss)
from continuing operations |
|
|
(316 |
) |
|
863 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net cash used in operating
activities: |
|
|
|
|
|
|
Depreciation
and amortization expense |
|
|
3,443 |
|
|
4,460 |
|
|
|
|
|
Impairment
charges |
|
|
- |
|
|
38 |
|
|
|
|
|
Stock-based
compensation |
|
|
432 |
|
|
607 |
|
|
|
|
|
Allowance for
doubtful accounts |
|
|
75 |
|
|
14 |
|
|
|
|
|
Gain on
disposal of assets |
|
|
(138 |
) |
|
- |
|
|
|
|
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts
receivable |
|
|
(7,165 |
) |
|
(2,376 |
) |
|
|
|
|
|
Inventories |
|
|
3,171 |
|
|
(8,291 |
) |
|
|
|
|
|
Prepaid
expenses and other current assets |
|
|
189 |
|
|
461 |
|
|
|
|
|
|
Accounts
payable |
|
|
1,891 |
|
|
(691 |
) |
|
|
|
|
|
Accrued
liabilities |
|
|
(476 |
) |
|
(1,494 |
) |
|
|
|
|
|
Customer
deposits |
|
|
1,433 |
|
|
(13,845 |
) |
|
|
|
|
|
Other
non-current assets and liabilities |
|
|
(751 |
) |
|
(463 |
) |
|
|
|
Net cash
provided by (used in) operating activities of continuing
operations |
|
|
1,788 |
|
|
(20,717 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
Purchases
of available for sale securities |
|
|
(3,581 |
) |
|
(1,884 |
) |
|
|
|
|
Sales of
available for sale securities |
|
|
95 |
|
|
5,083 |
|
|
|
|
|
Maturities
of available for sale securities |
|
|
6,060 |
|
|
4,825 |
|
|
|
|
|
Purchases
of property and equipment |
|
|
(1,966 |
) |
|
(1,328 |
) |
|
|
|
|
Proceeds
from disposals of property and equipment |
|
|
554 |
|
|
- |
|
|
|
|
|
Decrease in
restricted cash |
|
|
44 |
|
|
- |
|
|
|
|
Net cash
provided by investing activities of continuing operations |
|
|
1,206 |
|
|
6,696 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
Payments on
lines of credit and notes payable |
|
|
- |
|
|
(80,685 |
) |
|
|
|
|
Proceeds from
lines of credit and notes payable |
|
|
- |
|
|
81,212 |
|
|
|
|
|
Proceeds from
long-term debt |
|
- |
|
|
5,000 |
|
|
|
|
|
Payments on
long-term debt |
|
|
(2,799 |
) |
|
- |
|
|
|
|
|
Principal
payments on capital leases |
|
|
(328 |
) |
|
(451 |
) |
|
|
|
Net cash
(used in) provided by financing activities of continuing
operations |
|
|
(3,127 |
) |
|
5,076 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DISCONTINUED OPERATIONS: |
|
|
|
|
|
|
|
Operating
cash flows |
|
|
907 |
|
|
(2,393 |
) |
|
|
|
|
Investing
cash flows |
|
|
303 |
|
|
(276 |
) |
|
|
|
|
Financing
cash flows |
|
|
(12 |
) |
|
(5 |
) |
|
|
|
Net cash
provided by (used in) discontinued operations |
|
|
1,198 |
|
|
(2,674 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Cash
balance of discontinued operations, beginning of period |
|
|
- |
|
|
93 |
|
|
|
|
Less: Cash
balance of discontinued operations, end of period |
|
|
- |
|
|
21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
|
1,065 |
|
|
(11,547 |
) |
|
|
|
CASH AND CASH EQUIVALENTS, beginning of the
period |
|
|
6,436 |
|
|
12,056 |
|
|
|
|
CASH AND CASH EQUIVALENTS, end of the period |
|
$ |
7,501 |
|
$ |
509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash flow information: |
|
|
|
|
|
|
|
Interest
paid |
|
$ |
267 |
|
$ |
293 |
|
|
|
|
|
Income
taxes paid |
|
$ |
12 |
|
$ |
35 |
|
|
|
|
Non-cash investing and financing activities: |
|
|
|
|
|
|
|
Issuance of
restricted stock grants |
|
$ |
432 |
|
$ |
607 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROADWIND ENERGY, INC. AND SUBSIDIARIESSELECTED
SEGMENT FINANCIAL INFORMATION(IN THOUSANDS)(UNAUDITED) |
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
ORDERS: |
|
|
|
|
|
|
Towers and
Weldments |
$ |
170,637 |
|
|
$ |
51,392 |
|
|
$ |
206,072 |
|
|
$ |
63,163 |
|
|
Gearing |
|
5,588 |
|
|
|
3,878 |
|
|
|
9,129 |
|
|
|
13,796 |
|
|
Total orders |
$ |
176,225 |
|
|
$ |
55,270 |
|
|
$ |
215,201 |
|
|
$ |
76,959 |
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES: |
|
|
|
|
|
|
Towers and
Weldments |
|
|
$ |
37,963 |
|
|
$ |
55,032 |
|
|
$ |
79,978 |
|
|
$ |
96,060 |
|
|
Gearing |
|
|
|
5,417 |
|
|
|
7,966 |
|
|
|
10,177 |
|
|
|
16,574 |
|
|
Corporate and
Other |
|
|
|
- |
|
|
|
(435 |
) |
|
|
(18 |
) |
|
|
(842 |
) |
|
Total
revenues |
|
|
$ |
43,380 |
|
|
$ |
62,563 |
|
|
$ |
90,137 |
|
|
$ |
111,792 |
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT/(LOSS): |
|
|
|
|
|
|
Towers and
Weldments |
|
|
$ |
2,725 |
|
|
$ |
7,156 |
|
|
$ |
5,966 |
|
|
$ |
8,290 |
|
|
Gearing |
|
|
|
(1,189 |
) |
|
|
(1,524 |
) |
|
|
(2,392 |
) |
|
|
(2,736 |
) |
|
Corporate and
Other |
|
|
|
(1,355 |
) |
|
|
(2,016 |
) |
|
|
(3,617 |
) |
|
|
(4,302 |
) |
|
Total
operating profit/(loss) |
|
|
$ |
181 |
|
|
$ |
3,616 |
|
|
$ |
(43 |
) |
|
$ |
1,252 |
|
|
|
|
|
|
|
|
|
|
|
|
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’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
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 allows investors to
evaluate the Company’s performance using the same methodology and
information as used by the Company’s 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 June 30, |
|
Six Months Ended June 30, |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Net
Income/(Loss) |
|
$ |
42 |
|
|
$ |
3,386 |
|
|
$ |
(316 |
) |
|
$ |
863 |
|
|
Interest
Expense |
|
|
152 |
|
|
|
247 |
|
|
|
306 |
|
|
|
401 |
|
|
Income Tax
Provision/(Benefit) |
|
|
(8 |
) |
|
|
(62 |
) |
|
|
(16 |
) |
|
|
15 |
|
|
Depreciation and Amortization |
|
1,787 |
|
|
|
2,203 |
|
|
|
3,443 |
|
|
|
5,097 |
|
|
Share-based
Compensation and Other Stock Payments |
|
174 |
|
|
|
343 |
|
|
|
433 |
|
|
|
606 |
|
|
Restructuring Expense |
|
- |
|
|
|
(21 |
) |
|
|
- |
|
|
|
- |
|
|
|
Adjusted EBITDA
(Non-GAAP) |
|
$ |
2,147 |
|
|
$ |
6,096 |
|
|
$ |
3,850 |
|
|
$ |
6,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Towers and
Weldments Segment |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
1,801 |
|
|
$ |
4,721 |
|
|
$ |
3,941 |
|
|
$ |
5,511 |
|
|
|
Interest Expense |
|
6 |
|
|
|
1 |
|
|
|
16 |
|
|
|
4 |
|
|
|
Income Tax
Provision/(Benefit) |
|
923 |
|
|
|
2,464 |
|
|
|
2,027 |
|
|
|
2,879 |
|
|
|
Depreciation and
Amortization |
|
1,094 |
|
|
|
915 |
|
|
|
2,060 |
|
|
|
1,829 |
|
|
|
Share-based
Compensation and Other Stock Payments |
|
37 |
|
|
|
19 |
|
|
|
75 |
|
|
|
34 |
|
|
|
Restructuring
Expense |
|
- |
|
|
|
(21 |
) |
|
|
- |
|
|
|
- |
|
|
|
Adjusted
EBITDA (Non-GAAP) |
$ |
3,861 |
|
|
$ |
8,099 |
|
|
$ |
8,119 |
|
|
$ |
10,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gearing
Segment |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
|
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
Amortization |
|
|
641 |
|
|
|
1,244 |
|
|
|
1,280 |
|
|
|
2,541 |
|
|
Share-based
Compensation and Other Stock Payments |
|
|
25 |
|
|
|
76 |
|
|
|
72 |
|
|
|
139 |
|
|
Adjusted
EBITDA (Non-GAAP) |
|
$ |
(524 |
) |
|
$ |
(204 |
) |
|
$ |
(1,040 |
) |
|
$ |
(54 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and
Other |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Net Income/(Loss) |
$ |
(565 |
) |
|
$ |
199 |
|
|
$ |
(1,856 |
) |
|
$ |
(1,889 |
) |
|
Interest Expense |
|
143 |
|
|
|
237 |
|
|
|
283 |
|
|
|
376 |
|
|
Income Tax
Provision/(Benefit) |
|
(932 |
) |
|
|
(2,527 |
) |
|
|
(2,045 |
) |
|
|
(2,868 |
) |
|
Depreciation and
Amortization |
|
52 |
|
|
|
44 |
|
|
|
103 |
|
|
|
727 |
|
|
Share-based
Compensation and Other Stock Payments |
|
112 |
|
|
|
248 |
|
|
|
286 |
|
|
|
433 |
|
|
Adjusted
EBITDA (Non-GAAP) |
$ |
(1,190 |
) |
|
$ |
(1,799 |
) |
|
$ |
(3,229 |
) |
|
$ |
(3,221 |
) |
BWEN INVESTOR CONTACT:
Joni Konstantelos, 708.780.4819 joni.konstantelos@bwen.com
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