Highlights:
Broadwind Energy, Inc. (NASDAQ:BWEN) reported sales of $42.6
million in Q3 2016, down 14% compared to $49.8 million in Q3 2015
as a result of lower Towers and Weldments segment revenue, due to
lower steel and other material costs which are generally passed
through to the customer, and reduced Gearing segment revenue due to
lower demand from oil & gas and mining customers.
The Company reported income from continuing operations of $1.2
million, or $.08 per share, in Q3 2016, compared to net loss from
continuing operations of $2.4 million, or $.16 per share, in Q3
2015. The $.24 per share improvement was due to significant
operational improvements in the Towers and Weldments segment and
successful cost management actions across the Company.
The Company reported a net loss from discontinued operations of
$.4 million, or $.03 per share, in Q3 2016, compared to a net loss
from discontinued operations of $5.2 million, or $.36 per share, in
Q3 2015.
The Company reported non-GAAP adjusted EBITDA (earnings before
interest, taxes, depreciation, amortization, share-based payments
and restructuring costs) of $3.3 million in Q3 2016, compared to
$1.4 million in Q3 2015 (please refer to the reconciliation of GAAP
measures to non-GAAP measures at the end of this release). The $1.9
million increase was mainly attributable to the factors described
above.
Broadwind CEO Stephanie Kushner stated, “Broadwind had a strong
third quarter. The investments we’ve made to systematize our
production processes have significantly improved the operations and
raised productivity and margins in our tower plants. Our Gearing
business was cash neutral in a weak revenue environment. Our
Company-wide cost management efforts are ahead of plan. Employees
at all levels are contributing their ideas to our cost reduction
program. It’s exciting to see the creativity of our workforce.”
Ms. Kushner continued, “The expansion of our Abilene tower
facility is progressing on target. When this project is completed
in mid-2017, our capacity at this plant will increase by 30%. We
are focused on securing remaining orders for 2017, continued cost
management efforts and making additional gains in operational
efficiencies. For the fourth - quarter, our production mix is less
favorable, and we expect to earn approximately $500,000 on revenue
of $44-46 million.”
For the nine months ended September 30, 2016, revenue totaled
$132.7 million, compared to $161.6 million for the nine months
ended September 30, 2015. The 18% reduction was due primarily to
lower Towers and Weldments revenue attributable to lower steel and
other material costs and 2% lower volumes and lower Gearing revenue
related to reduced demand from oil & gas and mining
customers.
Net income from continuing operations for the nine months ended
September 30, 2016 was $.9 million, or $.06 per share, compared
with net loss from continuing operations of $1.5 million, or $.10
per share, for the nine months ended September 30, 2015. The
increase was due to significantly improved operating efficiencies
in the Towers and Weldments segment and successful cost containment
efforts Company-wide which more than offset the reduction in
revenue. Net loss from discontinued operations for the nine months
ended September 30, 2016 totaled $.9 million, or $.06 per share,
compared to net loss from discontinued operations of $9.5 million,
or $.65 per share, for the nine months ended September 30, 2015.
The Company reported non-GAAP adjusted EBITDA of $7.1 million for
the nine months ended September 30, 2016 (please refer to the
reconciliation of GAAP measures to non-GAAP measures at the end of
this release).
Orders and Backlog
The Company booked $27.5 million of net new orders in Q3 2016,
more than double Q3 2015 orders which totaled $12.2 million. Towers
and Weldments orders, which vary considerably from quarter to
quarter, totaled $25.3 million in Q3 2016, up substantially from
$3.2 million in Q3 2015. Gearing orders totaled $2.2 million in Q3
2016, compared to $9.0 million in Q3 2015, (which included a
multi-year buy from a wind gearing customer). At September 30,
2016, total backlog was $204.2 million, up significantly from
backlog of $130.7 million at September 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 Q3
2016, compared to $42.9 million in Q3 2015, due mainly to $5.5
million in lower steel and other material costs, which are
generally passed through to customers.
Towers and Weldments segment operating income in Q3 2016 totaled
$4.1 million, compared to $2.2 million in Q3 2015. The $1.9 million
increase was due to significantly improved operating efficiencies,
including higher labor productivity and better cost management
which more than offset the reduction in revenue described above.
Towers and Weldments segment net income in Q3 2016 totaled $2.8
million, compared to $1.4 million in Q3 2015. Non-GAAP adjusted
EBITDA totaled $5.1 million in Q3 2016, compared to non-GAAP
adjusted EBITDA of $3.5 million in Q3 2015, as a result of the
factors described above (please refer to the reconciliation of GAAP
measures to non-GAAP measures at the end of this release).
GearingBroadwind Energy engineers, builds and
remanufactures precision gears and gearboxes for oil and gas,
mining, steel and wind applications.
Gearing segment sales totaled $4.6 million in Q3 2016, compared
to $7.2 million in Q3 2015. The 36% reduction in sales was due to
weaker demand from oil & gas and mining customers.
Despite the lower revenue, Gearing segment operating loss
narrowed to $.7 million in Q3 2016, compared to an operating loss
of $2.6 million in Q3 2015. The improvement was due to the absence
of a $.9 million environmental remediation expense incurred in Q3
2015, successful cost management which led to an overall reduction
in manufacturing overhead and operating expenses, and a $.6 million
reduction in depreciation expense. Net loss for the Gearing segment
declined to $.7 million in Q3 2016 compared to $2.6 million in Q3
2015. The Gearing segment reported breakeven non-GAAP adjusted
EBITDA for Q3 2016, compared to a non-GAAP adjusted EBITDA loss of
$.5 million in Q3 2015 (please refer to the reconciliation of GAAP
measures to non-GAAP measures at the end of this release). The
change was primarily due to strong cost management efforts as
described above.
Corporate
Corporate and other expenses totaled $2.0 million in Q3 2016,
compared to $1.7 million in Q3 2015. The increase was due mainly to
higher incentive compensation in the current year period, partially
offset by lower professional fees and other successful cost
reductions.
Cash and Liquidity
During Q3 2016, operating working capital (accounts receivable
and inventory, net of accounts payable and customer deposits)
decreased $12.2 million due to the timing of customer receipts.
Operating working capital is expected to normalize before 2016
year-end, and increase by $9-10 million in the fourth quarter.
Capital expenditures, net of disposals, in Q3 2016 totaled $2.2
million, bringing year-to-date expenditures to $3.5 million.
Expenditures included investments to upgrade the coatings systems
in the tower plants, and initial outlays associated with the
expansion of the Abilene tower plant.
Cash assets (cash and short-term investments) increased sharply
to $24.3 million at September 30, 2016, compared to $11.1 million
at June 30, 2016, due to the temporary reduction in operating
working capital described above. Debt and capital leases totaled
$3.2 million, including the $2.6 million New Markets Tax Credit
loan which is expected to be substantially forgiven when it matures
in 2018.
The Company’s credit line with AloStar Bank of Commerce was
undrawn at September 30, 2016.
Subsequent to quarter-end, the Company retired the credit line
with AloStar and entered into a new three-year $20 million
asset-based credit line with The PrivateBank. Under the terms of
the new credit line, the Company may elect, with the lender’s
consent, to increase the size of the commitment by up to $5 million
if it achieves minimum EBITDA of $7 million for fiscal year 2016.
The new credit line provides enhanced borrowing availability and
more favorable terms overall, including a lower borrowing cost.
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 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 our plans to evaluate 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 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 these
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 beliefs, expectations, plans and/or
assumptions to change.
|
|
|
|
|
|
|
|
|
|
BROADWIND ENERGY, INC. AND SUBSIDIARIESCONSOLIDATED
BALANCE SHEETS(IN THOUSANDS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30, |
|
December
31, |
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
ASSETS |
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
8,091 |
|
|
$ |
6,436 |
|
|
|
|
Short-term
investments |
|
|
16,213 |
|
|
|
6,179 |
|
|
|
|
Restricted
cash |
|
|
39 |
|
|
|
83 |
|
|
|
|
Accounts
receivable, net of allowance for doubtful accounts of $161 |
|
|
|
|
|
|
|
and $84 as
of September 30, 2016 and December 31, 2015, respectively |
|
|
14,926 |
|
|
|
9,784 |
|
|
|
|
Inventories, net |
|
|
26,231 |
|
|
|
24,219 |
|
|
|
|
Prepaid
expenses and other current assets |
|
|
2,503 |
|
|
|
1,530 |
|
|
|
|
Current
assets held for sale |
|
|
866 |
|
|
|
4,403 |
|
|
|
|
|
Total
current assets |
|
|
68,869 |
|
|
|
52,634 |
|
|
|
LONG-TERM ASSETS: |
|
|
|
|
|
|
|
Property
and equipment, net |
|
|
51,761 |
|
|
|
51,906 |
|
|
|
|
Intangible
assets, net |
|
|
4,683 |
|
|
|
5,016 |
|
|
|
|
Other
assets |
|
|
323 |
|
|
|
351 |
|
|
|
TOTAL ASSETS |
|
$ |
125,636 |
|
|
$ |
109,907 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
Current
maturities of long-term debt |
|
$ |
- |
|
|
$ |
2,799 |
|
|
|
|
Current
portions of capital lease obligations |
|
|
156 |
|
|
|
447 |
|
|
|
|
Accounts
payable |
|
|
21,062 |
|
|
|
13,822 |
|
|
|
|
Accrued
liabilities |
|
|
8,916 |
|
|
|
8,134 |
|
|
|
|
Customer
deposits |
|
|
21,493 |
|
|
|
9,940 |
|
|
|
|
Current
liabilities held for sale |
|
|
538 |
|
|
|
1,613 |
|
|
|
|
|
Total
current liabilities |
|
|
52,165 |
|
|
|
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 |
|
|
416 |
|
|
|
- |
|
|
|
|
Other |
|
|
2,331 |
|
|
|
3,060 |
|
|
|
|
|
Total
long-term liabilities |
|
|
5,347 |
|
|
|
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;
15,172,245 |
|
|
|
|
|
|
|
and
15,012,789 shares issued as of September 30, 2016 and |
|
|
|
|
|
|
|
December
31, 2015, respectively |
|
|
15 |
|
|
|
15 |
|
|
|
|
Treasury
stock, at cost, 273,937 shares as of September 30, 2016 and
December 31, 2015, |
|
|
|
|
|
|
|
respectively |
|
(1,842 |
) |
|
|
(1,842 |
) |
|
|
|
Additional
paid-in capital |
|
|
378,715 |
|
|
|
378,104 |
|
|
|
|
Accumulated
deficit |
|
|
(308,764 |
) |
|
|
(308,785 |
) |
|
|
|
|
Total
stockholders' equity |
|
|
68,124 |
|
|
|
67,492 |
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
125,636 |
|
|
$ |
109,907 |
|
|
|
|
|
|
|
|
|
|
|
|
|
BROADWIND ENERGY, INC. AND SUBSIDIARIESCONSOLIDATED
STATEMENTS OF OPERATIONS(IN THOUSANDS, EXCEPT PER SHARE
DATA)(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
42,552 |
|
|
$ |
49,791 |
|
|
$ |
132,689 |
|
|
$ |
161,583 |
|
|
|
|
Cost of
sales |
|
|
37,221 |
|
|
|
46,960 |
|
|
|
119,254 |
|
|
|
147,507 |
|
|
|
|
Gross
profit |
|
|
5,331 |
|
|
|
2,831 |
|
|
|
13,435 |
|
|
|
14,076 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative |
|
|
3,860 |
|
|
|
3,981 |
|
|
|
11,785 |
|
|
|
13,752 |
|
|
|
|
Intangible
amortization |
|
|
111 |
|
|
|
111 |
|
|
|
333 |
|
|
|
333 |
|
|
|
|
Restructuring |
|
|
- |
|
|
|
874 |
|
|
|
- |
|
|
|
874 |
|
|
|
|
|
Total
operating expenses |
|
|
3,971 |
|
|
|
4,966 |
|
|
|
12,118 |
|
|
|
14,959 |
|
|
|
|
Operating
income (loss) |
|
|
1,360 |
|
|
|
(2,135 |
) |
|
|
1,317 |
|
|
|
(883 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
(EXPENSE) INCOME, net: |
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net |
|
|
(125 |
) |
|
|
(210 |
) |
|
|
(431 |
) |
|
|
(611 |
) |
|
|
|
Other,
net |
|
|
10 |
|
|
|
(64 |
) |
|
|
27 |
|
|
|
(36 |
) |
|
|
|
|
Total other
(expense), net |
|
|
(115 |
) |
|
|
(274 |
) |
|
|
(404 |
) |
|
|
(647 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) before benefit for income taxes |
|
|
1,245 |
|
|
|
(2,409 |
) |
|
|
913 |
|
|
|
(1,530 |
) |
|
|
|
Benefit for
income taxes |
|
|
- |
|
|
|
(26 |
) |
|
|
(16 |
) |
|
|
(11 |
) |
|
|
|
INCOME
(LOSS) FROM CONTINUING OPERATIONS |
|
|
1,245 |
|
|
|
(2,383 |
) |
|
|
929 |
|
|
|
(1,519 |
) |
|
|
|
LOSS FROM DISCONTINUED OPERATIONS, NET OF
TAX |
|
|
(373 |
) |
|
|
(5,230 |
) |
|
|
(908 |
) |
|
|
(9,494 |
) |
|
|
|
NET
INCOME (LOSS) |
|
$ |
872 |
|
|
$ |
(7,613 |
) |
|
$ |
21 |
|
|
$ |
(11,013 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME (LOSS) PER COMMON SHARE - BASIC: |
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
from continuing operations |
|
$ |
0.08 |
|
|
$ |
(0.16 |
) |
|
$ |
0.06 |
|
|
$ |
(0.10 |
) |
|
|
|
Loss from
discontinued operations |
|
|
(0.03 |
) |
|
|
(0.36 |
) |
|
|
(0.06 |
) |
|
|
(0.65 |
) |
|
|
|
Net income
(loss) |
|
$ |
0.06 |
|
|
$ |
(0.52 |
) |
|
$ |
0.00 |
|
|
$ |
(0.75 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -
BASIC |
|
|
14,876 |
|
|
|
14,708 |
|
|
|
14,824 |
|
|
|
14,656 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME (LOSS) PER COMMON SHARE - DILUTED: |
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
from continuing operations |
|
$ |
0.08 |
|
|
$ |
(0.16 |
) |
|
$ |
0.06 |
|
|
$ |
(0.10 |
) |
|
|
|
Loss from
discontinued operations |
|
|
(0.02 |
) |
|
|
(0.36 |
) |
|
|
(0.06 |
) |
|
|
(0.65 |
) |
|
|
|
Net income
(loss) |
|
$ |
0.06 |
|
|
$ |
(0.52 |
) |
|
$ |
0.00 |
|
|
$ |
(0.75 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -
DILUTED |
|
|
15,121 |
|
|
|
14,708 |
|
|
|
15,038 |
|
|
|
14,656 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROADWIND ENERGY, INC. AND SUBSIDIARIESCONSOLIDATED
STATEMENTS OF CASH FLOWS(IN THOUSANDS)(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
|
|
|
|
|
2016 |
|
|
2015 |
|
|
CASH
FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
Net
income |
|
$ |
21 |
|
$ |
(11,013 |
) |
|
|
Loss from
discontinued operations |
|
|
(908 |
) |
|
(9,494 |
) |
|
|
Income (loss)
income from continuing operations |
|
|
929 |
|
|
(1,519 |
) |
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net cash used in operating
activities: |
|
|
|
|
Depreciation
and amortization expense |
|
|
5,138 |
|
|
6,860 |
|
|
|
Impairment
charges |
|
|
- |
|
|
38 |
|
|
|
Stock-based
compensation |
|
|
592 |
|
|
900 |
|
|
|
Allowance for
doubtful accounts |
|
|
45 |
|
|
55 |
|
|
|
Gain on
disposal of assets |
|
|
(147 |
) |
|
(110 |
) |
|
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
|
Accounts
receivable |
|
|
(5,187 |
) |
|
(129 |
) |
|
|
|
Inventories |
|
|
(2,013 |
) |
|
(2,943 |
) |
|
|
|
Prepaid
expenses and other current assets |
|
|
(982 |
) |
|
10 |
|
|
|
|
Accounts
payable |
|
|
7,118 |
|
|
(655 |
) |
|
|
|
Accrued
liabilities |
|
|
777 |
|
|
(995 |
) |
|
|
|
Customer
deposits |
|
|
11,541 |
|
|
(15,772 |
) |
|
|
|
Other
non-current assets and liabilities |
|
|
(744 |
) |
|
(468 |
) |
|
Net cash
provided by (used in) operating activities of continuing
operations |
|
|
17,067 |
|
|
(14,728 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
Purchases
of available for sale securities |
|
|
(19,207 |
) |
|
(1,884 |
) |
|
|
Sales of
available for sale securities |
|
|
167 |
|
|
5,083 |
|
|
|
Maturities
of available for sale securities |
|
|
9,005 |
|
|
4,825 |
|
|
|
Purchases
of property and equipment |
|
|
(4,007 |
) |
|
(2,282 |
) |
|
|
Proceeds
from disposals of property and equipment |
|
|
479 |
|
|
1,156 |
|
|
|
Decrease in
restricted cash |
|
|
44 |
|
|
- |
|
|
Net cash
(used in) provided by investing activities of continuing
operations |
|
|
(13,519 |
) |
|
6,898 |
|
|
|
|
|
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
Net proceeds
from issuance of stock |
|
|
19 |
|
|
- |
|
|
|
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 |
|
|
(2,799 |
) |
|
(119 |
) |
|
|
Principal
payments on capital leases |
|
|
(500 |
) |
|
(598 |
) |
|
Net cash
(used in) provided by financing activities of continuing
operations |
|
|
(3,280 |
) |
|
4,283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DISCONTINUED OPERATIONS: |
|
|
|
|
|
Operating
cash flows |
|
|
786 |
|
|
(3,484 |
) |
|
|
Investing
cash flows |
|
|
615 |
|
|
(368 |
) |
|
|
Financing
cash flows |
|
|
(12 |
) |
|
(7 |
) |
|
Net cash
provided by (used in) discontinued operations |
|
|
1,389 |
|
|
(3,859 |
) |
|
|
|
|
|
|
|
|
|
Add: Cash
balance of discontinued operations, beginning of period |
|
|
- |
|
|
93 |
|
|
Less: Cash
balance of discontinued operations, end of period |
|
|
2 |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
NET
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
|
1,655 |
|
|
(7,314 |
) |
|
CASH AND CASH EQUIVALENTS, beginning of the
period |
|
|
6,436 |
|
|
12,057 |
|
|
CASH AND CASH EQUIVALENTS, end of the period |
|
$ |
8,091 |
|
$ |
4,743 |
|
|
|
|
|
|
|
|
|
|
Supplemental cash flow information: |
|
|
|
|
|
Interest
paid |
|
$ |
371 |
|
$ |
647 |
|
|
|
Income
taxes paid |
|
$ |
22 |
|
$ |
35 |
|
|
Non-cash investing and financing activities: |
|
|
|
|
|
Issuance of
restricted stock grants |
|
$ |
592 |
|
$ |
900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROADWIND ENERGY, INC. AND SUBSIDIARIESSELECTED
SEGMENT FINANCIAL INFORMATION(IN THOUSANDS)(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
|
|
September 30, |
|
September 30, |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
ORDERS: |
|
|
|
|
|
|
Towers and
Weldments |
$ |
25,329 |
|
|
$ |
3,167 |
|
|
$ |
231,401 |
|
|
$ |
66,330 |
|
|
Gearing |
|
2,162 |
|
|
|
8,997 |
|
|
|
11,307 |
|
|
|
22,493 |
|
|
Total orders |
$ |
27,491 |
|
|
$ |
12,164 |
|
|
$ |
242,708 |
|
|
$ |
88,823 |
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES: |
|
|
|
|
|
|
Towers and
Weldments |
|
|
$ |
37,390 |
|
|
$ |
42,943 |
|
|
$ |
117,948 |
|
|
$ |
139,003 |
|
|
Gearing |
|
|
|
4,582 |
|
|
|
7,184 |
|
|
|
14,759 |
|
|
|
23,758 |
|
|
Corporate and
Other |
|
|
|
580 |
|
|
|
(336 |
) |
|
|
(18 |
) |
|
|
(1,178 |
) |
|
Total
revenues |
|
|
$ |
42,552 |
|
|
$ |
49,791 |
|
|
$ |
132,689 |
|
|
$ |
161,583 |
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT/(LOSS): |
|
|
|
|
|
|
Towers and
Weldments |
|
|
$ |
4,050 |
|
|
$ |
2,235 |
|
|
$ |
10,016 |
|
|
$ |
10,525 |
|
|
Gearing |
|
|
|
(692 |
) |
|
|
(2,646 |
) |
|
|
(3,083 |
) |
|
|
(5,380 |
) |
|
Corporate and
Other |
|
|
|
(1,998 |
) |
|
|
(1,724 |
) |
|
|
(5,616 |
) |
|
|
(6,028 |
) |
|
Total operating
profit/(loss) |
|
|
$ |
1,360 |
|
|
$ |
(2,135 |
) |
|
$ |
1,317 |
|
|
$ |
(883 |
) |
|
|
|
|
|
|
|
|
|
|
|
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 SUBSIDIARIESRECONCILIATION
OF NON-GAAP FINANCIAL MEASURES(IN THOUSANDS)(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Net
Income/(Loss) from continuing operations |
|
$ |
1,245 |
|
|
$ |
(2,383 |
) |
|
$ |
929 |
|
|
$ |
(1,519 |
) |
|
Interest
Expense |
|
|
125 |
|
|
|
210 |
|
|
|
431 |
|
|
|
611 |
|
|
Income Tax
Provision/(Benefit) |
|
|
- |
|
|
|
(26 |
) |
|
|
(16 |
) |
|
|
(11 |
) |
|
Depreciation and Amortization |
|
1,695 |
|
|
|
2,400 |
|
|
|
5,138 |
|
|
|
6,860 |
|
|
Share-based
Compensation and Other Stock Payments |
|
195 |
|
|
|
310 |
|
|
|
628 |
|
|
|
897 |
|
|
Restructuring Expense |
|
- |
|
|
|
874 |
|
|
|
- |
|
|
|
874 |
|
|
|
Adjusted EBITDA
(Non-GAAP) |
|
$ |
3,260 |
|
|
$ |
1,385 |
|
|
$ |
7,110 |
|
|
$ |
7,712 |
|
|
Towers and
Weldments Segment |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Net Income |
$ |
2,797 |
|
|
$ |
1,366 |
|
|
$ |
6,738 |
|
|
$ |
6,877 |
|
|
Interest Expense |
|
5 |
|
|
|
- |
|
|
|
21 |
|
|
|
4 |
|
|
Income Tax
Provision/(Benefit) |
|
1,259 |
|
|
|
880 |
|
|
|
3,285 |
|
|
|
3,759 |
|
|
Depreciation and
Amortization |
|
1,007 |
|
|
|
1,132 |
|
|
|
3,066 |
|
|
|
2,961 |
|
|
Share-based
Compensation and Other Stock Payments |
|
79 |
|
|
|
72 |
|
|
|
154 |
|
|
|
106 |
|
|
Adjusted EBITDA (Non-GAAP) |
$ |
5,147 |
|
|
$ |
3,450 |
|
|
$ |
13,264 |
|
|
$ |
13,707 |
|
|
Gearing
Segment |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Net Loss |
|
$ |
(697 |
) |
|
$ |
(2,643 |
) |
|
$ |
(3,099 |
) |
|
$ |
(5,380 |
) |
|
Interest Expense |
|
|
1 |
|
|
|
8 |
|
|
|
8 |
|
|
|
29 |
|
|
Income Tax
Provision/(Benefit) |
|
|
5 |
|
|
|
(9 |
) |
|
|
7 |
|
|
|
(5 |
) |
|
Depreciation and
Amortization |
|
|
638 |
|
|
|
1,216 |
|
|
|
1,918 |
|
|
|
3,757 |
|
|
Share-based
Compensation and Other Stock Payments |
|
|
17 |
|
|
|
44 |
|
|
|
89 |
|
|
|
183 |
|
|
Restructuring
Expense |
|
|
- |
|
|
|
874 |
|
|
|
- |
|
|
|
874 |
|
|
Adjusted EBITDA (Non-GAAP) |
|
$ |
(36 |
) |
|
$ |
(510 |
) |
|
$ |
(1,077 |
) |
|
$ |
(542 |
) |
|
Corporate and
Other |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Net Income/(Loss) |
$ |
(855 |
) |
|
$ |
(1,106 |
) |
|
$ |
(2,710 |
) |
|
$ |
(3,016 |
) |
|
Interest Expense |
|
119 |
|
|
|
201 |
|
|
|
402 |
|
|
|
578 |
|
|
Income Tax
Provision/(Benefit) |
|
(1,264 |
) |
|
|
(897 |
) |
|
|
(3,308 |
) |
|
|
(3,765 |
) |
|
Depreciation and
Amortization |
|
50 |
|
|
|
52 |
|
|
|
154 |
|
|
|
142 |
|
|
Share-based
Compensation and Other Stock Payments |
|
99 |
|
|
|
194 |
|
|
|
385 |
|
|
|
608 |
|
|
Adjusted EBITDA (Non-GAAP) |
$ |
(1,851 |
) |
|
$ |
(1,555 |
) |
|
$ |
(5,077 |
) |
|
$ |
(5,453 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BWEN INVESTOR CONTACT: Joni Konstantelos, 708.780.4819 joni.konstantelos@bwen.com
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