Highlights:
Broadwind Energy, Inc. (NASDAQ:BWEN) reported sales of $48.2
million in Q4 2016, up 28% compared to $37.6 million in Q4 2015 as
a result of significantly improved production at the Company’s
Abilene, Texas tower facility.
The Company reported income from continuing operations of $.4
million, or $.03 per share, in Q4 2016, compared to a net loss from
continuing operations of $10.7 million, or $.73 per share, in Q4
2015. The $.76 per share improvement was due to significant
operational improvements in the Towers and Weldments segment and
successful cost management actions across the Company, notably in
the Gearing segment.
The Company reported a net loss from discontinued operations of
$.1 million, or $.01 per share, in Q4 2016, unchanged from the
prior year quarter. The Company reported non-GAAP adjusted EBITDA
(earnings before interest, taxes, depreciation, amortization,
share-based payments and restructuring costs) of $2.5 million in Q4
2016, compared to a non-GAAP adjusted EBITDA loss of $8.1 million
in Q4 2015 (please refer to the reconciliation of GAAP measures to
non-GAAP measures at the end of this release). The $10.6 million
improvement was mainly attributable to the factors described
above.
Broadwind CEO Stephanie Kushner stated, “Broadwind had a solid
fourth quarter, culminating in our first profitable year. We
exceeded our targets for every metric that we set at the beginning
of the year. Orders in 2016 totaled $275 million, nearly triple the
orders in 2015. We removed $9 million from manufacturing overhead
and operating expenses in 2016, which was $1 million more than our
target. Our tower production was on schedule in both plants, and
productivity in our Abilene plant improved dramatically during
2016, ending the year at a record level with record low overtime.
This is a reflection of the process improvements we made throughout
the year and the strong team we have in place. Our Gearing segment
managed well through a challenging year. On 30% lower sales, we
were able to cut the segment’s operating loss by $5 million and
generate positive net cash flow.”
Ms. Kushner continued, “Late last year, our Board approved a
strategy whereby we plan to double our sales over the next three
years by growing our existing businesses and expanding our presence
in clean tech. We plan to accomplish this by a combination of
organic growth and bolt-on acquisitions including the recently
announced Red Wolf transaction. The Abilene tower plant expansion
will be complete by mid-2017 and will offer us important operating
flexibility and a 30% increase in capacity at this plant. For FY
2017, we expect revenue of $210-220 million and EBITDA of
approximately $14-16 million. For Q1 2017, we expect revenue of
$54-56 million and EBITDA of approximately of $3 million. Income
guidance is highly uncertain pending a third-party determination of
purchase accounting for Red Wolf. We will update income guidance
following Q1 17.”
For FY 2016, revenue totaled $180.8 million, compared to $199.2
million for FY 2015. The 9% reduction was due primarily to lower
Towers and Weldments revenue, attributable to lower steel and other
material costs, which are generally passed through to the customer,
and lower Gearing revenue related to reduced demand from oil &
gas and mining customers.
Net income from continuing operations for the twelve months
ended December 31, 2016 was $1.3 million, or $.09 per share,
compared with a net loss from continuing operations of $12.2
million, or $.83 per share, for the twelve months ended December
31, 2015. The increase was due to significantly improved operating
efficiencies in the Towers and Weldments segment and successful
cost containment efforts Company-wide. The net loss from
discontinued operations for FY 2016 totaled $1.0 million, or $.07
per share, compared to net loss from discontinued operations of
$9.6 million, or $.65 per share, for FY 2015 due to the sale and
wind-down of the unprofitable Services segment. The Company
reported non-GAAP adjusted EBITDA of $9.6 million for FY 2016,
compared to a non-GAAP adjusted EBITDA loss of $.4 million for FY
2015 (please refer to the reconciliation of GAAP measures to
non-GAAP measures at the end of this release).
Orders and Backlog
The Company booked $32.3 million of net new orders in Q4 2016,
up significantly from $5.0 million of net new orders booked in Q4
2015. Towers and Weldments orders, which vary considerably from
quarter to quarter, totaled $29.4 million in Q4 2016, up
substantially from $2.8 million in Q4 2015. Gearing orders totaled
$2.9 million in Q4 2016, compared to $2.1 million in Q4 2015.
FY 2016 net new orders totaled $275.0 million, up sharply from
$94.0 million for FY 2015. 2016 orders included a $137 million
multi-year tower order booked in Q2.
At December 31, 2016, total backlog was $188.7 million, more
than doubling backlog of $93.9 million at December 31, 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 $42.3 million in Q4
2016, compared to $31.9 million in Q4 2015. The 32% improvement was
due to significantly improved production at the Abilene facility
compared to the prior year when the plant experienced severe
production issues associated with a challenging contract with a
long-term customer. The Towers and Weldments segment operating
income totaled $2.8 million in Q4 2016, compared to an operating
loss of $5.8 million in Q4 2015. The substantial improvement was
due to significantly improved operations compared to the prior year
when the segment experienced low throughput and losses related to
labor overruns and increased logistics and contractor fees
associated with the contract referenced above. Net income for the
segment totaled $1.8 million in Q4 2016, compared to a net loss of
$3.8 million in Q4 2015. Non-GAAP adjusted EBITDA totaled $3.9
million in Q4 2016, compared to a non-GAAP adjusted EBITDA loss of
$4.2 million in Q4 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).
Towers and Weldments segment sales for FY 2016 totaled $160.2
million compared to $170.5 million for FY 2015. The decrease is due
to lower steel and other material costs of $16 million, which are
generally passed through to customers, partially offset by a 6%
increase in volume in the current year attributable to consistent
production flow. FY 2016 operating income totaled $12.8 million
compared to FY 2015 operating income of $4.7 million. The $8.1
million improvement was due to significantly improved operating
efficiencies, including higher labor productivity and better cost
management. Net income for the segment totaled $8.5 million in 2016
compared to net income of $3.1 million in 2015. Non-GAAP adjusted
EBITDA for FY 2016 totaled $17.2 million, compared to $9.5 million
for FY 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 $5.9 million in Q4 2016, up
slightly from $5.8 million in Q4 2015. On essentially flat revenue,
the Q4 2016 operating loss narrowed to $.2 million compared to an
operating loss of $2.9 million in Q4 2015. The significant
improvement was due to a higher-margin mix, better operating
performance including improved productivity, lower scrap and
successful cost management that led to an overall $.7 million
decrease in cash manufacturing overhead and operating expenses, and
also due to a $.6 million reduction in depreciation expense. The
net loss for the Gearing segment totaled $.2 million in Q4 2016,
compared to a net loss of $2.8 million in Q4 2015. Non-GAAP
adjusted EBITDA for Q4 2016 totaled $.5 million compared to
Non-GAAP adjusted EBITDA loss of $1.5 million in Q4 2015. (please
refer to the reconciliation of GAAP measures to non-GAAP measures
at the end of this release). The sharp improvement was due mainly
to the factors described above.
FY 2016 Gearing segment sales totaled $20.6 million compared to
FY 2015 sales of $29.6 million. The 30% decrease was due to weaker
demand from oil & gas and mining customers. Despite lower
revenue, the operating loss for FY 2016 narrowed to $3.2 million
compared to an operating loss of $8.2 million for FY 2015. The
improvement was due to successful cost management which led to a
$3.3 million overall decrease in cash manufacturing overhead and
operating expenses, a $2.5 million reduction in depreciation
expense and the absence of a $.9 million environmental remediation
expense that was recognized in Q3 2015. FY 2016 Gearing segment net
loss totaled $3.3 million compared to a net loss of $8.2 million in
2015. The Non-GAAP adjusted EBITDA loss totaled $.6 million in 2016
compared to a non-GAAP adjusted EBITDA loss of $2.1 million in 2015
due mainly to the factors described above (please refer to the
reconciliation of GAAP measures to non-GAAP measures at the end of
this release).
Corporate
Corporate and other expenses totaled $1.9 million in Q4 2016,
compared to $2.4 million in Q4 2015. The decrease was due mainly to
the absence of a $1.2 million cost incurred in 2015 related to the
separation of the Company’s former CEO, and the favorable impact of
cost management efforts, partially offset by higher incentive
compensation and medical expense.
Cash and Liquidity
During Q4 2016, operating working capital (accounts receivable
and inventory, net of accounts payable and customer deposits)
increased $.6 million due to lower accounts payable at year
end.
Capital expenditures, net of disposals, in Q4 2016 totaled $2.7
million, bringing FY 2016 expenditures to $6.2 million.
Expenditures included investments to upgrade the coatings systems
in the tower plants, and outlays associated with the expansion of
the Abilene tower plant which will be operational in mid-2017.
Cash assets (cash and short-term investments) totaled $21.9
million at December 31, 2016, compared to $24.3 million at
September 30, 2016.
Subsequent to year end, on February 1, 2017, the Company
announced the acquisition of Red Wolf Company, LLC for a closing
cash payment of $16.5 million, subject to adjustment and additional
earn-out payments.
Debt and capital leases totaled $4.1 million at December 31,
2016, 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 The Private Bank was undrawn at
December 31, 2016.
About Broadwind Energy, Inc.Broadwind Energy
(NASDAQ:BWEN) is a precision manufacturer of structures, equipment
and components for clean tech and other specialized applications.
From gears and gearing systems for wind, oil and gas and mining
applications, to wind towers and industrial weldments, we have
solutions for the clean tech, energy and infrastructure needs of
the future. With facilities throughout the 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 StatementsThis 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 (the “Exchange Act”), 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. 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 and through acquisitions; (iv) the
sufficiency of our liquidity and alternate sources of funding, if
necessary; (v) our ability to realize revenue from customer orders
and backlog; (vi) our ability to operate our business efficiently,
manage capital expenditures and costs effectively, and generate
cash flow; (vii) the economy and the potential impact it may have
on our business, including our customers; (viii) 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; (ix) the effects of market disruptions and regular
market volatility, including fluctuations in the price of oil, gas
and other commodities; (x) the effects of the recent change of
administrations in the U.S. federal government; (xi) our ability to
successfully integrate and operate the business of Red Wolf
Company, LLC and to identify, negotiate and execute future
acquisitions; and (xii) the potential loss of tax benefits if we
experience an “ownership change” under Section 382 of the Internal
Revenue Code of 1986, as amended (the “IRC”). 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 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.
|
BROADWIND ENERGY, INC. AND SUBSIDIARIESCONSOLIDATED
BALANCE SHEETS(IN THOUSANDS) |
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
ASSETS |
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
|
|
$ |
18,699 |
|
|
$ |
6,436 |
|
|
|
Short-term
investments |
|
|
|
|
3,171 |
|
|
|
6,179 |
|
|
|
Restricted
cash |
|
|
|
|
39 |
|
|
|
83 |
|
|
|
Accounts
receivable, net |
|
|
|
|
11,865 |
|
|
|
9,784 |
|
|
|
Inventories, net |
|
|
|
|
21,159 |
|
|
|
24,219 |
|
|
|
Prepaid
expenses and other current assets |
|
|
|
|
2,449 |
|
|
|
1,530 |
|
|
|
Current
assets held for sale |
|
|
|
|
808 |
|
|
|
4,403 |
|
|
|
|
Total
current assets |
|
|
|
|
58,190 |
|
|
|
52,634 |
|
|
LONG-TERM ASSETS: |
|
|
|
|
|
|
|
|
Property
and equipment, net |
|
|
|
|
54,606 |
|
|
|
51,906 |
|
|
|
Intangible
assets, net |
|
|
|
|
4,572 |
|
|
|
5,016 |
|
|
|
Other
assets |
|
|
|
|
294 |
|
|
|
351 |
|
|
TOTAL ASSETS |
|
|
|
$ |
117,662 |
|
|
$ |
109,907 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
Current
maturities of long-term debt |
|
|
|
$ |
- |
|
|
$ |
2,799 |
|
|
|
Current
portions of capital lease obligations |
|
|
|
|
465 |
|
|
|
447 |
|
|
|
Accounts
payable |
|
|
|
|
15,852 |
|
|
|
13,822 |
|
|
|
Accrued
liabilities |
|
|
|
|
8,430 |
|
|
|
8,134 |
|
|
|
Customer
deposits |
|
|
|
|
18,011 |
|
|
|
9,940 |
|
|
|
Current
liabilities held for sale |
|
|
|
|
493 |
|
|
|
1,613 |
|
|
|
|
Total
current liabilities |
|
|
|
|
43,251 |
|
|
|
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 |
|
|
|
|
1,038 |
|
|
|
- |
|
|
|
Other |
|
|
|
|
2,190 |
|
|
|
3,060 |
|
|
|
|
Total
long-term liabilities |
|
|
|
|
5,828 |
|
|
|
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; 15,175,767
and |
|
|
|
|
|
|
|
|
15,012,789
shares issued as of December 31, 2016 and 2015, respectively |
|
|
|
|
15 |
|
|
|
15 |
|
|
|
Treasury
stock, at cost, 273,937 shares at December 31, 2016 |
|
|
|
|
|
|
|
|
and
2015 |
|
|
|
|
(1,842 |
) |
|
|
(1,842 |
) |
|
|
Additional
paid-in capital |
|
|
|
|
378,876 |
|
|
|
378,104 |
|
|
|
Accumulated
deficit |
|
|
|
|
(308,466 |
) |
|
|
(308,785 |
) |
|
|
|
Total
stockholders' equity |
|
|
|
|
68,583 |
|
|
|
67,492 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
$ |
117,662 |
|
|
$ |
109,907 |
|
BROADWIND ENERGY, INC. AND SUBSIDIARIESCONSOLIDATED
STATEMENTS OF OPERATIONS(IN THOUSANDS, EXCEPT PER SHARE
DATA)(UNAUDITED) |
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
48,151 |
|
|
$ |
37,573 |
|
|
$ |
180,840 |
|
|
$ |
199,156 |
|
|
Cost of
sales |
|
|
43,447 |
|
|
|
43,781 |
|
|
|
162,701 |
|
|
|
191,289 |
|
|
Gross
profit |
|
|
4,704 |
|
|
|
(6,208 |
) |
|
|
18,139 |
|
|
|
7,867 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative |
|
|
4,001 |
|
|
|
4,519 |
|
|
|
15,786 |
|
|
|
18,271 |
|
|
|
Intangible
amortization |
|
111 |
|
|
|
111 |
|
|
|
444 |
|
|
|
444 |
|
|
|
Restructuring |
|
|
- |
|
|
|
186 |
|
|
|
- |
|
|
|
1,060 |
|
|
|
|
Total operating
expenses |
|
|
4,112 |
|
|
|
4,816 |
|
|
|
16,230 |
|
|
|
19,775 |
|
|
Operating
income (loss) |
|
|
592 |
|
|
|
(11,024 |
) |
|
|
1,909 |
|
|
|
(11,908 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER (EXPENSE) INCOME, net: |
|
|
|
|
|
|
|
|
|
|
Interest
expense, net |
|
|
(193 |
) |
|
|
(188 |
) |
|
|
(625 |
) |
|
|
(799 |
) |
|
|
Other,
net |
|
|
21 |
|
|
|
461 |
|
|
|
49 |
|
|
|
425 |
|
|
|
|
Total other expense,
net |
|
|
(172 |
) |
|
|
273 |
|
|
|
(576 |
) |
|
|
(374 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) before benefit for income taxes |
|
|
420 |
|
|
|
(10,751 |
) |
|
|
1,333 |
|
|
|
(12,282 |
) |
|
Provision/(benefit) for income taxes |
|
|
14 |
|
|
|
(25 |
) |
|
|
(2 |
) |
|
|
(36 |
) |
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
405 |
|
|
|
(10,726 |
) |
|
|
1,335 |
|
|
|
(12,246 |
) |
|
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX |
|
|
(108 |
) |
|
|
(66 |
) |
|
|
(1,016 |
) |
|
|
(9,561 |
) |
|
NET
INCOME (LOSS) |
|
$ |
298 |
|
|
$ |
(10,792 |
) |
|
$ |
319 |
|
|
$ |
(21,807 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME (LOSS) PER COMMON SHARE - BASIC: |
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations |
|
$ |
0.03 |
|
|
$ |
(0.73 |
) |
|
$ |
0.09 |
|
|
$ |
(0.83 |
) |
|
Loss from
discontinued operations |
|
|
(0.01 |
) |
|
|
(0.00 |
) |
|
|
(0.07 |
) |
|
|
(0.65 |
) |
|
Net income
(loss) |
|
$ |
0.02 |
|
|
$ |
(0.73 |
) |
|
$ |
0.02 |
|
|
$ |
(1.48 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -
Basic |
|
|
14,876 |
|
|
|
14,738 |
|
|
|
14,843 |
|
|
|
14,677 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME (LOSS) PER COMMON SHARE - DILUTED: |
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations |
$ |
0.03 |
|
|
$ |
(0.73 |
) |
|
$ |
0.09 |
|
|
$ |
(0.83 |
) |
|
Loss from
discontinued operations |
|
|
(0.01 |
) |
|
|
(0.00 |
) |
|
|
(0.07 |
) |
|
|
(0.65 |
) |
|
Net income
(loss) |
|
$ |
0.02 |
|
|
$ |
(0.73 |
) |
|
$ |
0.02 |
|
|
$ |
(1.48 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -
Diluted |
|
|
15,096 |
|
|
|
14,738 |
|
|
|
15,081 |
|
|
|
14,677 |
|
BROADWIND ENERGY, INC. AND SUBSIDIARIESCONSOLIDATED
STATEMENTS OF CASH FLOWS(IN THOUSANDS)(UNAUDITED) |
|
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
|
|
|
|
2016 |
|
|
2015 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
Net income
(loss) |
|
$ |
319 |
|
$ |
(21,807 |
) |
|
Loss from
discontinued operations |
|
|
(1,016 |
) |
|
(9,561 |
) |
|
Income
(loss) from continuing operations |
|
|
1,335 |
|
|
(12,246 |
) |
|
|
|
|
|
|
|
Adjustments to reconcile net cash used in operating
activities: |
|
|
|
|
Depreciation and amortization expense |
|
|
6,914 |
|
|
9,179 |
|
|
|
Impairment
charges |
|
|
- |
|
|
183 |
|
|
|
Stock-based
compensation |
|
|
753 |
|
|
919 |
|
|
|
Allowance
for doubtful accounts |
|
|
61 |
|
|
35 |
|
|
|
Gain on
disposal of assets |
|
|
(217 |
) |
|
(98 |
) |
|
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
|
Accounts
receivable |
|
|
(2,141 |
) |
|
7,223 |
|
|
|
|
Inventories |
|
|
3,060 |
|
|
6,925 |
|
|
|
|
Prepaid expenses and
other current assets |
|
|
(933 |
) |
|
(25 |
) |
|
|
|
Accounts
payable |
|
|
989 |
|
|
(3,625 |
) |
|
|
|
Accrued
liabilities |
|
|
297 |
|
|
(1,126 |
) |
|
|
|
Customer deposits |
|
|
8,057 |
|
|
(12,457 |
) |
|
|
|
Other non-current
assets and liabilities |
|
|
(875 |
) |
|
(399 |
) |
Net cash
provided by (used in) operating activities of continued
operations |
|
|
17,300 |
|
|
(5,512 |
) |
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
Purchases
of available for sale securities |
|
|
(19,223 |
) |
|
(8,062 |
) |
|
Sales of
available for sale securities |
|
|
13,061 |
|
|
5,082 |
|
|
Maturities
of available for sale securities |
|
|
9,170 |
|
|
4,825 |
|
|
Purchases
of property and equipment |
|
|
(6,624 |
) |
|
(2,789 |
) |
|
Proceeds
from disposals of property and equipment |
|
|
452 |
|
|
1,156 |
|
Net cash
(used in) provided by investing activities of continued
operations |
|
|
(3,164 |
) |
|
212 |
|
|
|
|
|
|
|
|
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 |
) |
|
(2,201 |
) |
|
Principal
payments on capital leases |
|
|
(539 |
) |
|
(747 |
) |
Net cash
(used in) provided by financing activities of continued
operations |
|
|
(3,319 |
) |
|
2,052 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DISCONTINUED OPERATIONS: |
|
|
|
|
Operating
cash flows |
|
|
731 |
|
|
(5,327 |
) |
|
Investing
cash flows |
|
|
615 |
|
|
2,864 |
|
|
Financing
cash flows |
|
|
58 |
|
|
(3 |
) |
Net cash
provided by (used in) discontinued operations (1) |
|
|
1,404 |
|
|
(2,466 |
) |
|
|
|
|
|
|
|
Add: Cash
balance of discontinued operations, beginning of period |
|
|
- |
|
|
93 |
|
Less: Cash
balance of discontinued operations, end of period |
|
|
2 |
|
|
- |
|
|
|
|
|
|
|
|
NET
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED
CASH |
|
|
12,219 |
|
|
(5,621 |
) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH beginning of
the period |
|
|
6,519 |
|
|
12,140 |
|
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH end of the
period |
|
$ |
18,738 |
|
$ |
6,519 |
|
|
|
|
|
|
|
|
Supplemental cash flow information: |
|
|
|
|
Interest
paid |
|
$ |
494 |
|
$ |
652 |
|
|
Income
taxes paid |
|
$ |
23 |
|
$ |
48 |
|
Non-cash investing and financing activities: |
|
|
|
|
Issuance of
restricted stock grants |
|
$ |
753 |
|
$ |
919 |
|
|
Equipment
additions via capital lease |
|
$ |
1,616 |
|
$ |
- |
|
|
BROADWIND ENERGY, INC. AND SUBSIDIARIESSELECTED
SEGMENT FINANCIAL INFORMATION(IN THOUSANDS)(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
ORDERS: |
|
|
|
|
|
|
Towers and
Weldments |
$ |
29,389 |
|
|
$ |
2,816 |
|
|
$ |
260,790 |
|
|
$ |
69,146 |
|
|
Gearing |
|
2,913 |
|
|
|
2,088 |
|
|
|
14,220 |
|
|
|
24,881 |
|
|
Total orders |
$ |
32,302 |
|
|
$ |
4,904 |
|
|
$ |
275,010 |
|
|
$ |
94,027 |
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES: |
|
|
|
|
|
|
Towers and
Weldments |
|
|
$ |
42,262 |
|
|
$ |
31,916 |
|
|
$ |
160,210 |
|
|
$ |
170,919 |
|
|
Gearing |
|
|
|
5,889 |
|
|
|
5,830 |
|
|
|
20,648 |
|
|
|
29,588 |
|
|
Corporate and
Other |
|
|
|
- |
|
|
|
(173 |
) |
|
|
(18 |
) |
|
|
(1,351 |
) |
|
Total
revenues |
|
|
$ |
48,151 |
|
|
$ |
37,573 |
|
|
$ |
180,840 |
|
|
$ |
199,156 |
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT/(LOSS): |
|
|
|
|
|
|
Towers and
Weldments |
|
|
$ |
2,772 |
|
|
$ |
(5,823 |
) |
|
$ |
12,788 |
|
|
$ |
4,702 |
|
|
Gearing |
|
|
|
(162 |
) |
|
|
(2,855 |
) |
|
|
(3,244 |
) |
|
|
(8,235 |
) |
|
Corporate and
Other |
|
|
|
(2,018 |
) |
|
|
(2,347 |
) |
|
|
(7,635 |
) |
|
|
(8,375 |
) |
|
Total operating
profit/(loss) |
|
|
$ |
592 |
|
|
$ |
(11,025 |
) |
|
$ |
1,909 |
|
|
$ |
(11,908 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 December 31, |
|
Twelve Months Ended December 31, |
|
|
|
|
|
2016 |
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Net
Income/(Loss) from continuing operations |
|
$ |
405 |
|
$ |
(10,726 |
) |
|
$ |
1,335 |
|
|
$ |
(12,246 |
) |
|
Interest
Expense |
|
|
193 |
|
|
188 |
|
|
|
625 |
|
|
|
799 |
|
|
Income Tax
Provision/(Benefit) |
|
|
14 |
|
|
(25 |
) |
|
|
(2 |
) |
|
|
(36 |
) |
|
Depreciation and Amortization |
|
1,776 |
|
|
2,319 |
|
|
|
6,914 |
|
|
|
9,180 |
|
|
Share-based
Compensation and Other Stock Payments |
|
126 |
|
|
(4 |
) |
|
|
753 |
|
|
|
893 |
|
|
Restructuring Expense |
|
- |
|
|
186 |
|
|
|
- |
|
|
|
1,060 |
|
|
|
Adjusted
EBITDA (Non-GAAP) |
|
$ |
2,514 |
|
$ |
(8,062 |
) |
|
$ |
9,625 |
|
|
$ |
(350 |
) |
|
Towers and
Weldments Segment |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
2016 |
|
|
2015 |
|
|
|
2016 |
|
|
2015 |
|
Net Income/(Loss) |
$ |
1,772 |
|
$ |
(3,780 |
) |
|
$ |
8,510 |
|
$ |
3,096 |
|
Interest Expense |
|
5 |
|
|
- |
|
|
|
26 |
|
|
4 |
|
Income Tax
Provision/(Benefit) |
|
1,001 |
|
|
(1,598 |
) |
|
|
4,286 |
|
|
2,161 |
|
Depreciation and
Amortization |
|
1,100 |
|
|
992 |
|
|
|
4,166 |
|
|
3,954 |
|
Share-based
Compensation and Other Stock Payments |
|
11 |
|
|
6 |
|
|
|
165 |
|
|
112 |
|
Restructuring
Expense |
|
- |
|
|
186 |
|
|
|
- |
|
|
186 |
|
Adjusted
EBITDA (Non-GAAP) |
$ |
3,889 |
|
$ |
(4,194 |
) |
|
$ |
17,153 |
|
$ |
9,513 |
|
Gearing
Segment |
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Net Loss |
|
$ |
(159 |
) |
|
$ |
(2,841 |
) |
|
$ |
(3,258 |
) |
|
$ |
(8,243 |
) |
|
Interest Expense |
|
|
- |
|
|
|
6 |
|
|
|
9 |
|
|
|
35 |
|
|
Income Tax
Provision/(Benefit) |
|
|
(3 |
) |
|
|
(4 |
) |
|
|
4 |
|
|
|
(9 |
) |
|
Depreciation and
Amortization |
|
|
627 |
|
|
|
1,275 |
|
|
|
2,546 |
|
|
|
5,032 |
|
|
Share-based
Compensation and Other Stock Payments |
|
|
17 |
|
|
|
45 |
|
|
|
106 |
|
|
|
228 |
|
|
Restructuring
Expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
874 |
|
|
Adjusted
EBITDA (Non-GAAP) |
|
$ |
482 |
|
|
$ |
(1,519 |
) |
|
$ |
(593 |
) |
|
$ |
(2,083 |
) |
|
Corporate and
Other |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Net Loss |
$ |
(1,208 |
) |
|
$ |
(4,105 |
) |
|
$ |
(3,917 |
) |
|
$ |
(7,099 |
) |
|
Interest Expense |
|
188 |
|
|
|
181 |
|
|
|
590 |
|
|
|
760 |
|
|
Income Tax
Provision/(Benefit) |
|
(984 |
) |
|
|
1,578 |
|
|
|
(4,292 |
) |
|
|
(2,188 |
) |
|
Depreciation and
Amortization |
|
49 |
|
|
|
52 |
|
|
|
202 |
|
|
|
194 |
|
|
Share-based
Compensation and Other Stock Payments |
|
98 |
|
|
|
(55 |
) |
|
|
482 |
|
|
|
553 |
|
|
Adjusted
EBITDA (Non-GAAP) |
$ |
(1,857 |
) |
|
$ |
(2,349 |
) |
|
$ |
(6,935 |
) |
|
$ |
(7,780 |
) |
BWEN INVESTOR CONTACT:
Joni Konstantelos, 708.780.4819
joni.konstantelos@bwen.com
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