Broadwind Energy Announces Preliminary Q4 and Full Year 2017 Results
January 31 2018 - 7:00AM
Broadwind Energy, Inc. (NASDAQ:BWEN) today announced that its
financial results for the quarter and year ending December 31, 2017
are expected to be below the Company’s previous estimates.
Based on preliminary results, Q4 2017 revenue totaled
approximately $18 million, $2 million below expectations due to
weak CNG sales and lower gearing shipments caused by delayed
material receipts primarily due to a tightening of the oil and gas
supply chain. The Company now expects the consolidated Q4 2017
EBITDA loss to be approximately $3.5-3.7 million, versus guidance
of a $2-3 million loss provided in October.
Broadwind CEO Stephanie Kushner stated, “Our gearing orders were
up more than 150%, due to market recovery and share gains with new
oil and gas customers. However, with the surge in orders, our
supply chain partners have extended their lead times and have had
difficulties meeting scheduled production dates, causing us to miss
delivery dates with our customers. Our Gearing segment revenues
totaled $8.5 million in the quarter, down from our expectation of
$9-9.5 million. Despite the weaker than anticipated shipment levels
to end the year, our Gearing backlog remains strong and we are
currently booking orders to support Q3 2018 volumes."
Kushner continued, “Due to the weaker results, we have worked
with our bank to waive our debt covenant for the quarter and reset
covenants for 2018. At year-end, $10.6 million was drawn against
the credit line and availability totaled $12 million. Operating
working capital declined by $4 million due to the timing of
customer deposits in Q4 2017 to support higher 2018 tower
production."
Kushner added, “As expected, our tower business is firming in
2018 and we are improving our capacity utilization. We are actively
bidding on tower contracts with multiple customers in order to
supplement the baseload of approximately $50 million in 2018
shippable backlog which we booked in 2016 under a multi-year
contract. As the tower segment recovers, we expect consolidated
revenues to rebound to $28-30 million in the first quarter, and
then to rise to about $40 million in the second quarter with a
return to positive EBITDA.”
Fourth quarter and full-year earnings are scheduled to be
announced on Tuesday, February 27, 2018, before market open. An
investor conference call will follow at 10 a.m. Central time. For
real-time internet access to the conference call, visit
investors.bwen.com/investors/events-and-presentations. An archived
replay of the conference call will be available on the Company's
website shortly after the call concludes.
About Broadwind Energy, Inc.Broadwind Energy,
Inc. (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 our
substantial dependency on a few significant customers and our
efforts to diversify our customer base and sector focus and
leverage 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; (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; and (xiii) the impact of future
sales of our common stock or securities convertible into our common
stock on our stock price. 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.
Non-GAAP Financial Measure The
Company provides non-GAAP adjusted EBITDA (earnings before
interest, income taxes, depreciation, amortization, share based
compensation, and other stock payments) 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, and it 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.
BWEN INVESTOR CONTACT:
Joni Konstantelos
708.780.4819
joni.konstantelos@bwen.com
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