Highlights:
Broadwind Energy, Inc. (NASDAQ:BWEN) reported sales of $56.1
million in Q1 2017, up 20% compared to $46.8 million in Q1 2016.
The increase was primarily due to a 16% increase in Towers and
Weldments segment revenue due to high shipments in advance of the
100% safe harbor Production Tax Credit deadline, and significantly
improved production flow in the Abilene tower plant. Additionally,
the current quarter included $3.3 million of sales from the newly
formed Process Systems segment, which includes the Abilene
compressed natural gas (CNG) and fabrication business and Red Wolf
Company, LLC (Red Wolf) as of the February 1, 2017 acquisition
date. These increases were partially offset by lower Gearing
segment revenue resulting from broadly lower second half 2016 order
intake.
The Company reported net income from continuing operations of
$6.5 million, or $.43 per share, in Q1 2017, compared to a net loss
from continuing operations of $.4 million, or $.02 per share, in Q1
2016. The current quarter includes a $5.1 million, or $.34 per
share income tax benefit due primarily to the partial release of a
tax valuation allowance related to the Red Wolf acquisition. The
remaining $.11 per share improvement was due mainly to the improved
production flow in the Towers and Weldments segment.
The Company reported a net loss from discontinued operations of
$.2 million, or $.01 per share, in Q1 2017, compared to near
break-even in Q1 2016. The Company reported non-GAAP adjusted
EBITDA (earnings before interest, taxes, depreciation,
amortization, share-based payments and restructuring costs) of $3.9
million in Q1 2017, compared to $1.7 million in Q1 2016 (please
refer to the reconciliation of GAAP measures to non-GAAP measures
at the end of this release). The $2.2 million improvement was
mainly attributable to the increased volume and productivity in the
Towers and Weldments segment as well as a $.4 million reduction in
Corporate expenses.
Broadwind CEO Stephanie Kushner stated, “Broadwind started the
year strong. Revenue was up 20% and we doubled our EBITDA margin to
7% from last year. Our team members’ focus on continuous
operational improvement and stringent cost reduction is reflected
in our financial performance. Towers results exceeded our plan, as
we operated at full capacity to meet aggressive customer delivery
schedules, while successfully converting to a new tower model in
the Abilene plant.
“Gearing revenue was soft due to weak order intake late last
year, but orders have risen sharply since the beginning of 2017 due
to recovering oil and gas markets and the expansion of our sales
organization. The work we did in 2016 to improve delivery times,
raise productivity and reduce costs will translate into significant
financial improvements as the year progresses.
Ms. Kushner continued, “Our tower order intake was weak in the
first quarter and the near-term demand outlook for our Manitowoc
plant is down significantly, as the impact of our customers
pre-ordering components in advance of the safe harbor Production
Tax Credit deadline was greater than we anticipated. While the
medium-term outlook for our tower business remains strong, we have
taken immediate action to reduce headcount and lower our tower
production rate through at least the next two quarters. Despite the
addition of Red Wolf and the recovery of Gearing volumes, we have
revised down our full-year outlook to reflect flat year-over-year
revenue with EBITDA growth exceeding 15 percent. We believe this
tower weakness is short-term and reflects the structure of the PTC
qualification rules. This does not alter our strategic objective of
doubling revenue and EBITDA margins over the next three years.”
Orders and Backlog
The Company booked $40.0 million of net new orders in Q1 2017,
compared to $39.0 million of net new orders booked in Q1 2016.
Towers and Weldments orders, which vary considerably from quarter
to quarter, totaled $29.1 million in Q1 2017, down from $35.4
million in Q1 2016, reflecting weaker demand for towers in the
upper Midwest, due to pre-buys of equipment by turbine
manufacturers and the locational mix of windfarms under
construction. Gearing orders totaled $7.3 million in Q1 2017, more
than double Q1 2016 orders of $3.5 million, due to increased orders
from oil & gas and industrial customers. Process Systems orders
totaled $3.6 million in Q1 2017.
At March 31, 2017, total backlog was $181.7 million, more than
double the backlog of $86.0 million at March 31, 2016.
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 $48.9 million in Q1
2017, compared to $42.0 million in Q1 2016. Tower sales increased
16% compared to Q1 2016 due to improved production flow at the
Abilene plant and higher material costs, which are generally passed
through to the customer. Operating income totaled $5.8 million in
Q1 2017, compared to $3.2 million in Q1 2016, due to the improved
throughput at the Abilene plant, and better overhead absorption at
both tower plants. Net income for the segment totaled $4.0 million
in Q1 2017, compared to $2.1 million in Q1 2016. Non-GAAP adjusted
EBITDA totaled $7.0 million in Q1 2017, compared to $4.3 million in
Q1 2016, 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)
GearingBroadwind Energy engineers, builds and
remanufactures precision gears and gearboxes for oil and gas,
mining, steel and wind applications.
Gearing segment sales totaled $3.9 million in Q1 2017, compared
to $4.8 million in Q1 2016. The $.9 million decrease was due to
reduced sales to oil & gas and mining industry customers
related to the weak order intake in the second half of 2016.
Operating loss was $1.5 million in Q1 2017, compared to $1.2
million in Q1 2016. The $.3 million increase was due to lower
sales, the absence of a $.1 gain from an asset sale recorded in Q1
2016 and higher compensation expense. Net loss for the Gearing
segment totaled $1.5 million in Q1 2017, compared to a net loss of
$1.2 million in Q1 2016. The Non-GAAP adjusted EBITDA loss for Q1
2017 totaled $.9 million, compared to $.5 million in Q1 2016, due
to the factors described above. (please refer to the reconciliation
of GAAP measures to non-GAAP measures at the end of this
release)
Process SystemsBroadwind Energy designs and
manufactures custom, modular systems for compression, filtration
and other specialized process applications for the global
market.
On February 1, 2017 the Company acquired Red Wolf which has been
combined with the Abilene CNG and fabrication business, previously
reported as a part of Towers and Weldments, to form the Process
Systems segment. The Process Systems segment results include a
partial period of Red Wolf results as of the acquisition date.
Process Systems sales for Q1 2017 totaled $3.3 million. For Q1
2017, Process Systems operating loss totaled $.8 million and net
loss for the Process Systems segment totaled $.7 million. The first
quarter loss reflects the absence of any CNG unit shipments and
included a $.2 million adverse impact of inventory revaluation
associated with purchase accounting and $.2 million of intangible
amortization associated with the Red Wolf transaction. Non-GAAP
adjusted EBITDA loss totaled $.5 million in Q1 2017. (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 Q1 2017,
compared to $2.3 million in Q1 2016. The decrease was due mainly to
lower health care costs in Q1 2017.
Cash and Liquidity
During Q1 2017, operating working capital (accounts receivable
and inventory, net of accounts payable and customer deposits)
increased to $16.4 million due to the addition of Red Wolf and
higher accounts receivable.
Capital expenditures, net of disposals, in Q1 2017 totaled $3.3
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) dropped as
expected to $.2 million at March 31, 2017, compared to $21.9
million at December 31, 2016, following the acquisition of Red Wolf
on February 1, 2017 for a closing cash payment of $16.5 million,
subject to adjustment and additional earn-out payments.
Debt and capital leases totaled $10.5 million at March 31, 2017,
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 and Trust Company had a
balance of $6.5 million at March 31, 2017. Late in the quarter, the
credit line was increased to $25 million to accommodate the
additional working capital associated with Red Wolf.
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, 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. 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) |
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
ASSETS |
|
(Unaudited) |
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
216 |
|
|
$ |
18,699 |
|
|
|
Short-term
investments |
|
|
- |
|
|
|
3,171 |
|
|
|
Restricted
cash |
|
|
39 |
|
|
|
39 |
|
|
|
Accounts
receivable, net of allowance for doubtful accounts of $153 |
|
|
|
|
|
|
and
$145 as of March 31, 2017 and December 31, 2016,
respectively |
|
|
23,690 |
|
|
|
11,865 |
|
|
|
Inventories, net |
|
|
25,775 |
|
|
|
21,159 |
|
|
|
Prepaid
expenses and other current assets |
|
|
2,027 |
|
|
|
2,449 |
|
|
|
Current
assets held for sale |
|
|
626 |
|
|
|
808 |
|
|
|
|
Total
current assets |
|
|
52,373 |
|
|
|
58,190 |
|
|
LONG-TERM ASSETS: |
|
|
|
|
|
|
Property
and equipment, net |
|
|
55,982 |
|
|
|
54,606 |
|
|
|
Goodwill |
|
|
5,568 |
|
|
|
- |
|
|
|
Other
intangible assets, net |
|
|
17,491 |
|
|
|
4,572 |
|
|
|
Other
assets |
|
|
274 |
|
|
|
294 |
|
|
TOTAL ASSETS |
|
$ |
131,688 |
|
|
$ |
117,662 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
Line of
credit and notes payable |
|
$ |
6,494 |
|
|
$ |
- |
|
|
|
Current
portions of capital lease obligations |
|
|
470 |
|
|
|
465 |
|
|
|
Accounts
payable |
|
|
19,495 |
|
|
|
15,852 |
|
|
|
Accrued
liabilities |
|
|
8,536 |
|
|
|
8,430 |
|
|
|
Customer
deposits |
|
|
13,574 |
|
|
|
18,011 |
|
|
|
Current
liabilities held for sale |
|
|
371 |
|
|
|
493 |
|
|
|
|
Total
current liabilities |
|
|
48,940 |
|
|
|
43,251 |
|
|
LONG-TERM LIABILITIES: |
|
|
|
|
|
|
Long-term
debt, net of current maturities |
|
|
2,600 |
|
|
|
2,600 |
|
|
|
Long-term
capital lease obligations, net of current portions |
|
|
918 |
|
|
|
1,038 |
|
|
|
Other |
|
|
4,098 |
|
|
|
2,190 |
|
|
|
|
Total
long-term liabilities |
|
|
7,616 |
|
|
|
5,828 |
|
|
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;
15,255,688 |
|
|
|
|
|
|
and
15,175,767 shares issued as of March 31, 2017 and |
|
|
|
|
|
|
December
31, 2016, respectively |
|
|
15 |
|
|
|
15 |
|
|
|
Treasury
stock, at cost, 273,937 shares as of March 31, 2017 and December
31, 2016 |
|
|
(1,842 |
) |
|
|
(1,842 |
) |
|
|
Additional
paid-in capital |
|
|
379,098 |
|
|
|
378,876 |
|
|
|
Accumulated
deficit |
|
|
(302,139 |
) |
|
|
(308,466 |
) |
|
|
|
Total
stockholders' equity |
|
|
75,132 |
|
|
|
68,583 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
$ |
131,688 |
|
|
$ |
117,662 |
|
|
BROADWIND ENERGY, INC. AND SUBSIDIARIESCONSOLIDATED
STATEMENTS OF OPERATIONS(IN THOUSANDS, EXCEPT PER SHARE
DATA)(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
56,060 |
|
|
$ |
46,757 |
|
|
Cost of
sales |
|
|
49,686 |
|
|
|
42,795 |
|
|
Gross
profit |
|
|
6,374 |
|
|
|
3,962 |
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
Selling,
general and administrative |
|
|
4,420 |
|
|
|
4,075 |
|
|
Intangible
amortization |
|
|
351 |
|
|
|
111 |
|
|
|
Total
operating expenses |
|
|
4,771 |
|
|
|
4,186 |
|
|
Operating
income (loss) |
|
|
1,603 |
|
|
|
(224 |
) |
|
|
|
|
|
|
|
|
|
OTHER (EXPENSE) INCOME, net: |
|
|
|
|
|
Interest
expense, net |
|
|
(139 |
) |
|
|
(154 |
) |
|
Other,
net |
|
|
- |
|
|
|
12 |
|
|
|
Total other
expense, net |
|
|
(139 |
) |
|
|
(142 |
) |
|
|
|
|
|
|
|
|
|
Net income
(loss) before benefit for income taxes |
|
|
1,464 |
|
|
|
(366 |
) |
|
Benefit for
income taxes |
|
|
(5,018 |
) |
|
|
(8 |
) |
|
INCOME (LOSS) FROM CONTINUING
OPERATIONS |
|
|
6,482 |
|
|
|
(358 |
) |
|
LOSS FROM DISCONTINUED OPERATIONS |
|
|
(155 |
) |
|
|
(19 |
) |
|
NET
INCOME (LOSS) |
|
$ |
6,327 |
|
|
$ |
(377 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME (LOSS) PER COMMON SHARE - BASIC: |
|
|
|
|
|
Income
(loss) from continuing operations |
|
$ |
0.43 |
|
|
$ |
(0.02 |
) |
|
Loss from
discontinued operations |
|
$ |
(0.01 |
) |
|
|
(0.00 |
) |
|
Net income
(loss) |
|
$ |
0.42 |
|
|
$ |
(0.03 |
) |
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -
BASIC |
|
|
14,929 |
|
|
|
14,758 |
|
|
|
|
|
|
|
|
|
|
NET
INCOME (LOSS) PER COMMON SHARE - DILUTED: |
|
|
|
|
|
Income
(loss) from continuing operations |
|
$ |
0.43 |
|
|
$ |
(0.02 |
) |
|
Loss from
discontinued operations |
|
|
(0.01 |
) |
|
|
(0.00 |
) |
|
Net income
(loss) |
|
$ |
0.42 |
|
|
$ |
(0.03 |
) |
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -
DILUTED |
|
|
15,195 |
|
|
|
14,758 |
|
BROADWIND ENERGY, INC. AND SUBSIDIARIESCONSOLIDATED
STATEMENTS OF CASH FLOWS(IN THOUSANDS)(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
|
|
2017 |
|
|
2016 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
Net income
(loss) |
|
$ |
6,327 |
|
$ |
(377 |
) |
|
Loss from
discontinued operations |
|
|
(155 |
) |
|
(19 |
) |
|
Income
(loss) from continuing operations |
|
|
6,482 |
|
|
(358 |
) |
|
|
|
|
|
|
|
Adjustments to reconcile net cash used in operating
activities: |
|
|
|
Depreciation and amortization expense |
|
|
2,101 |
|
|
1,657 |
|
|
Deferred
income taxes |
|
|
(5,050 |
) |
|
- |
|
|
Stock-based
compensation |
|
|
222 |
|
|
259 |
|
|
Allowance
for doubtful accounts |
|
|
8 |
|
|
80 |
|
|
Gain on
disposal of assets |
|
|
(2 |
) |
|
(138 |
) |
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
Accounts
receivable |
|
|
(9,037 |
) |
|
(2,753 |
) |
|
|
Inventories |
|
|
382 |
|
|
5,348 |
|
|
|
Prepaid
expenses and other current assets |
|
|
423 |
|
|
(55 |
) |
|
|
Accounts
payable |
|
|
2,883 |
|
|
1,848 |
|
|
|
Accrued
liabilities |
|
|
(2,356 |
) |
|
(129 |
) |
|
|
Customer
deposits |
|
|
(4,440 |
) |
|
(2,163 |
) |
|
|
Other
non-current assets and liabilities |
|
|
239 |
|
|
(535 |
) |
Net cash
(used in) provided by operating activities of continuing
operations |
|
|
(8,145 |
) |
|
3,061 |
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
Cash paid
in acquisition |
|
|
(16,659 |
) |
|
- |
|
|
Purchases
of available for sale securities |
|
|
- |
|
|
(1,978 |
) |
|
Sales of
available for sale securities |
|
|
2,221 |
|
|
36 |
|
|
Maturities
of available for sale securities |
|
|
950 |
|
|
2,425 |
|
|
Purchases
of property and equipment |
|
|
(3,261 |
) |
|
(950 |
) |
|
Proceeds
from disposals of property and equipment |
|
|
2 |
|
|
- |
|
Net
cash (used in) provided by investing activities of continuing
operations |
|
|
(16,747 |
) |
|
(467 |
) |
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
Net
proceeds from lines of credit and notes payable |
|
|
6,494 |
|
|
- |
|
|
Payments on
long-term debt |
|
|
- |
|
|
(179 |
) |
|
Principal
payments on capital leases |
|
|
(114 |
) |
|
(147 |
) |
Net cash
provided by (used in) financing activities of continuing
operations |
|
|
6,380 |
|
|
(326 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DISCONTINUED OPERATIONS: |
|
|
|
|
Operating
cash flows |
|
|
74 |
|
|
826 |
|
|
Investing
cash flows |
|
|
- |
|
|
151 |
|
|
Financing
cash flows |
|
|
(109 |
) |
|
(12 |
) |
Net cash
provided by (used in) discontinued operations |
|
|
(35 |
) |
|
965 |
|
|
|
|
|
|
|
|
Add: Cash
balance of discontinued operations, beginning of period |
|
|
2 |
|
|
- |
|
Less: Cash
balance of discontinued operations, end of period |
|
|
- |
|
|
2 |
|
|
|
|
|
|
|
|
NET
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED
CASH |
|
|
(18,545 |
) |
|
3,231 |
|
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH beginning of
the period |
|
|
18,800 |
|
|
6,519 |
|
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH end of the
period |
|
$ |
255 |
|
$ |
9,750 |
|
|
|
|
|
|
|
|
Supplemental cash flow information: |
|
|
|
|
Interest
paid |
|
$ |
77 |
|
$ |
143 |
|
|
Income
taxes paid |
|
$ |
3 |
|
$ |
12 |
|
|
Contingent
consideration related to business acquisition |
$ |
2,944 |
|
$ |
- |
|
Non-cash investing and financing activities: |
|
|
|
|
Issuance of
restricted stock grants |
|
$ |
222 |
|
$ |
259 |
|
Red
Wolf acquisition: |
|
|
Assets
acquired |
|
$ |
27,157 |
|
$ |
- |
|
Liabilities
assumed |
|
$ |
7,554 |
|
$ |
- |
|
|
BROADWIND ENERGY, INC. AND SUBSIDIARIESSELECTED
SEGMENT FINANCIAL INFORMATION(IN THOUSANDS)(UNAUDITED) |
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
March 31, |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
ORDERS: |
|
|
|
|
Towers and
Weldments |
$ |
29,088 |
|
|
$ |
35,436 |
|
|
Gearing |
|
7,319 |
|
|
|
3,540 |
|
|
Process
Systems |
|
3,615 |
|
|
|
- |
|
|
Total orders |
$ |
40,022 |
|
|
$ |
38,976 |
|
|
|
|
|
|
|
|
REVENUES: |
|
|
|
|
Towers and
Weldments |
|
|
$ |
48,895 |
|
|
$ |
42,015 |
|
|
Gearing |
|
|
|
3,871 |
|
|
$ |
4,760 |
|
|
Process
Systems |
|
3,294 |
|
|
|
- |
|
|
Corporate and
Other |
|
|
|
- |
|
|
|
(18 |
) |
|
Total
revenues |
|
|
$ |
56,060 |
|
|
$ |
46,757 |
|
|
|
|
|
|
|
|
OPERATING PROFIT/(LOSS): |
|
|
|
|
Towers and
Weldments |
|
|
$ |
5,849 |
|
|
|
3,241 |
|
|
Gearing |
|
|
|
(1,531 |
) |
|
|
(1,202 |
) |
|
Process
Systems |
|
(822 |
) |
|
|
- |
|
|
Corporate and
Other |
|
|
|
(1,893 |
) |
|
|
(2,263 |
) |
|
Total operating
profit/(loss) |
|
|
$ |
1,603 |
|
|
$ |
(224 |
) |
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 March 31, |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
Net
Income/(Loss) from continuing operations |
|
$ |
6,482 |
|
|
$ |
(358 |
) |
|
Interest
Expense |
|
|
139 |
|
|
|
154 |
|
|
Income Tax
Provision/(Benefit) |
|
|
(5,018 |
) |
|
|
(8 |
) |
|
Depreciation and Amortization |
|
2,101 |
|
|
|
1,657 |
|
|
Share-based
Compensation and Other Stock Payments |
|
222 |
|
|
|
259 |
|
|
Restructuring Expense |
|
- |
|
|
|
- |
|
|
|
Adjusted EBITDA
(Non-GAAP) |
|
$ |
3,926 |
|
|
$ |
1,704 |
|
Towers and
Weldments Segment |
Three Months Ended March 31, |
|
|
2017 |
|
|
2016 |
Net Income |
$ |
4,003 |
|
$ |
2,140 |
Interest
Expense/(Benefit) |
|
15 |
|
|
10 |
Income Tax
Provision/(Benefit) |
|
1,831 |
|
|
1,103 |
Depreciation and
Amortization |
|
1,092 |
|
|
966 |
Share-based
Compensation and Other Stock Payments |
|
58 |
|
|
38 |
Adjusted EBITDA
(Non-GAAP) |
$ |
6,999 |
|
$ |
4,257 |
Gearing
Segment |
|
Three Months Ended March 31, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
Net Loss |
|
$ |
(1,537 |
) |
|
$ |
(1,208 |
) |
|
Interest
Expense |
|
|
4 |
|
|
|
5 |
|
|
Income Tax
Provision/(Benefit) |
|
|
2 |
|
|
|
1 |
|
|
Depreciation and
Amortization |
|
|
625 |
|
|
|
639 |
|
|
Share-based
Compensation and Other Stock Payments |
|
|
19 |
|
|
|
48 |
|
|
Adjusted EBITDA
(Non-GAAP) |
|
$ |
(887 |
) |
|
$ |
(515 |
) |
|
|
|
|
|
|
|
Process
Systems |
Three Months Ended March 31, |
|
|
2017 |
|
|
|
2016 |
Net
Income/(Loss) |
$ |
(699 |
) |
|
$ |
- |
Interest
Expense |
|
1 |
|
|
|
- |
Income Tax
Provision/(Benefit) |
|
(125 |
) |
|
|
- |
Depreciation and
Amortization |
|
334 |
|
|
|
- |
Share-based
Compensation and Other Stock Payments |
|
6 |
|
|
|
- |
Adjusted EBITDA
(Non-GAAP) |
$ |
(483 |
) |
|
$ |
- |
Corporate and
Other |
Three Months Ended March 31, |
|
|
2017 |
|
|
|
2016 |
|
Net
Income/(Loss) |
$ |
4,715 |
|
|
$ |
(1,290 |
) |
Interest
Expense |
|
119 |
|
|
|
140 |
|
Income Tax
Provision/(Benefit) |
|
(6,726 |
) |
|
|
(1,113 |
) |
Depreciation and
Amortization |
|
51 |
|
|
|
52 |
|
Share-based
Compensation and Other Stock Payments |
|
139 |
|
|
|
173 |
|
Adjusted EBITDA
(Non-GAAP) |
$ |
(1,703 |
) |
|
$ |
(2,038 |
) |
|
|
|
|
|
|
|
|
BWEN INVESTOR CONTACT:
Joni Konstantelos, 708.780.4819
joni.konstantelos@bwen.com
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