Broadwind, Inc. (Nasdaq: BWEN, “Broadwind” or the “Company”), a
diversified precision manufacturer of specialized components and
solutions serving global markets, today announced results for the
second quarter 2023.
SECOND QUARTER 2023 RESULTS(As compared to the
second quarter 2022)
- Revenue of $50.8 million, +0.8 million y/y
- Gross Profit of $8.3 million, +$5.9 million y/y
- GAAP Net Income of $1.4 million, +4.1 million y/y
- Non-GAAP Adjusted EBITDA of $5.4 million, +$5.0 million
y/y
- Ratio of net debt to trailing twelve-month Non-GAAP Adjusted
EBITDA of 2.0x as of June 30, 2023
- Total backlog of $262.2 million, +$169.0 million y/y, as of
June 30, 2023
FULL-YEAR 2023 FINANCIAL GUIDANCE
- Maintaining total revenue guidance in a range of between $205
million and $220 million
- Increasing Adjusted EBITDA guidance to a range of between $17
million and $19 million
For the three months ended June 30, 2023,
Broadwind reported total revenue of $50.8 million, an increase of
2% when compared to the prior-year period. The Company reported
GAAP net income of $1.4 million, or $0.07 per diluted share, in the
second quarter 2023, compared to a net loss of ($2.7) million, or
($0.13) per basic share, in the second quarter 2022.
The Company reported non-GAAP adjusted EBITDA of $5.4 million in
the second quarter 2023, an increase of $5.0 million when compared
to the prior-year period. For a reconciliation of GAAP to non-GAAP
metrics, please see the appendix of this release.
During the second quarter, Broadwind benefited
from a combination of strong demand across its Gearing and
Industrial Solutions businesses, continued price discipline,
improved fixed cost absorption, more efficient raw materials
procurement, reduced freight expense and benefits derived from
advanced manufacturing credits associated with the Inflation
Reduction Act (“IRA”), when compared to the prior-year period. This
performance was partially offset by planned maintenance at the
Company’s Abilene, Texas tower facility during the second quarter,
which resulted in reduced plant utilization and lower tower output
in the period, as expected.
Total backlog increased by $169.0 million on a
year-over-year basis to $262.2 million in the second quarter 2023,
supported by growth across all reporting segments.
As of June 30, 2023, Broadwind had total cash on
hand and availability under its credit facility of $15.2 million,
as compared to $10.2 million at the end of the second quarter
2022.
BUSINESS UPDATE
Broadwind has continued to demonstrate strong
operational excellence and commercial execution, consistent with a
multi-year focus on building a market-leading precision
manufacturing platform. Broadwind remains focused on organic growth
within both existing and adjacent markets; further revenue mix
diversification beyond its core wind business; improved asset
optimization; ratable growth in orders and backlog; and disciplined
capital management to support the requirements of the business.
- Capitalize on favorable
demand. For the three months ended June 30, 2023,
revenue growth within the Company’s industrial and energy markets
was partially offset by decreased activity in the mining and
construction markets. Wind-related revenue declined modestly
in the second quarter 2023, versus the prior year period, primarily
due to planned maintenance at the Abilene facility. Non-GAAP
adjusted EBITDA increased meaningfully on a year-over-year basis
across each reporting segment during the second quarter of
2023.
- Drive revenue mix
diversification. On a trailing twelve-month basis through
the end of the second quarter 2023, non-wind revenue increased by
nearly 32% on a year-over-year basis to $98.9 million, supported by
broad-based share gains across most end-markets. During the second
quarter 2023, total non-wind revenue increased 12% on a
year-over-year basis to $25.9 million, driven primarily by
commercial growth across existing end-markets, together with
organic, greenfield expansion in PRS sales.
- Deliver sustained margin
expansion. In the second quarter 2023, total
gross margin rate increased 11.6 percentage points year-over-year
to 16.4%, while non-GAAP adjusted EBITDA margin increased 9.8
percentage points to 10.5% in the same period. IRA-related tax
credits, improved labor efficiencies and effective cost-management
contributed to the year-over-year improvement, partially offset by
planned facility maintenance.
- Drive asset
optimization. As of June 30, 2023, Broadwind had secured
more than 50% of its optimal tower production capacity across its
facilities for the full-years 2023 and 2024. During 2023, the
Company expects to further optimize its plant utilization,
resulting in improved economies of scale. Broadwind has deployed a
lean operating approach across all divisions which includes
continuous improvement efforts designed to drive throughput growth
and asset optimization. The base load of orders in backlog is
expected to allow the Company to focus these efforts on specific
manufacturing processes offering the highest return on resources
invested.
MANAGEMENT COMMENTARY
“Our balanced value creation strategy continues
to prioritize targeted commercial expansion within growing energy
transition markets, focused operational excellence and disciplined
capital management, consistent with our commitment to driving
superior total returns for our shareholders, over the long-term,”
stated Eric Blashford, President and CEO of Broadwind. “Our entire
organization demonstrated strong execution on our strategy during
the second quarter, resulting in year-over-year growth in non-GAAP
adjusted EBITDA, improved margin realization and near-record
profitability,” stated Eric Blashford, President and CEO of
Broadwind.
“This year, we’ve introduced a series of
performance improvement actions designed to drive greater process
efficiency, reduce fixed overhead and further optimize our
manufacturing base,” continued Blashford. “These actions, together
with economic benefit afforded by the IRA’s advanced manufacturing
tax credit, have propelled our margins and profitability toward
historic highs. Given current activity levels, we anticipate a
further acceleration in customer demand across our commercial and
industrial markets into the second half of 2023, with expectations
for improved wind tower demand during 2024.”
“Disciplined balance sheet management remains a
key strategic priority for us,” continued Blashford. “Our net
leverage profile improved meaningfully over the last year, with our
ratio of net debt to trailing twelve-month non-GAAP adjusted EBITDA
declining to 2.0x as of June 30, 2023,” noted Blashford. “In the
second half of this year, we intend to reduce inventory levels,
positioning the Company to realize improved working capital
efficiencies, while reducing our debt balance.”
“Today, we raised our full year 2023 Adjusted
EBITDA guidance, with backlog still at near-record levels entering
the third quarter,” concluded Blashford. “The overall demand
outlook remains stable, while our operations excellence initiatives
continue to drive improved cost efficiencies across the
organization. As our business becomes increasingly cash generative,
we expect to have improved balance sheet optionality with which to
pursue investments that enhance our capabilities within
complementary, high-value precision manufacturing markets.”
SEGMENT RESULTS
Heavy Fabrications Segment
Broadwind provides large, complex and precision fabrications to
customers in a broad range of industrial markets. Key products
include wind towers, PRS units and other industrial fabrications,
including mining and material handling components and other
frames/structures.
Heavy Fabrications segment sales declined 5% to
$33.9 million in the second quarter 2023 as compared to the
prior-year period, primarily driven by planned maintenance at the
Abilene, Texas tower facility that resulted in lower tower
production in the period. The segment reported operating income of
$3.9 million in the second quarter 2023, as compared to $0.1
million in the prior-year period. Segment non-GAAP adjusted EBITDA
was $5.0 million in the second quarter 2023, as compared to $1.2
million in the prior-year period.
Gearing SegmentBroadwind
provides custom gearboxes, loose gearing and heat treat services to
a broad set of customers in diverse markets, including energy
production, surface and underground mining, wind energy, steel,
material handling and other infrastructure markets.
Gearing segment sales increased by 9% to $11.0
million in the second quarter 2023, as compared to the prior-year
period, primarily driven by increased demand from industrial
customers. The segment reported operating income of $0.3 million in
the second quarter 2023, compared to an operating loss of ($0.6)
million in the prior-year period. The segment reported non-GAAP
adjusted EBITDA of $1.0 million in the second quarter 2023, as
compared to $0.1 million in the prior-year period.
Industrial Solutions Segment
Broadwind provides supply chain solutions, light fabrication,
inventory management, kitting and assembly services, primarily
serving the combined cycle natural gas turbine market as well as
other clean technology markets.
Industrial Solutions segment sales increased 24%
to $6.3 million in the second quarter 2023, as compared to the
prior-year period, primarily driven by increased demand for natural
gas turbine content, as industry gas turbine unit sales reached
multi-year highs. The segment reported operating income of $0.8
million in the second quarter 2023, compared to an operating income
of $0.03 million in the prior-year period. The segment
reported non-GAAP adjusted EBITDA of $1.0 million in the second
quarter 2023, as compared to $0.2 million in the prior-year
period.
FINANCIAL GUIDANCE
The following financial guidance for the full
year 2023 reflects the Company’s current expectations and beliefs.
All guidance is current as of the time provided and is subject to
change.
|
Full Year 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
$ in
Millions |
Prior Guidance |
|
New Guidance |
|
Low |
High |
|
Low |
High |
Revenue |
$ |
205 |
$ |
220 |
|
$ |
205 |
$ |
220 |
Non-GAAP Adjusted
EBITDA |
$ |
16 |
$ |
18 |
|
$ |
17 |
$ |
19 |
|
|
|
|
|
|
SECOND QUARTER 2023 CONFERENCE CALL
Broadwind will host a conference call today at 11:00 A.M. ET to
review the Company’s financial results, discuss recent events and
conduct a question-and-answer session.
A webcast of the conference call and accompanying presentation
materials will be available in the Investor Relations section of
the Company’s corporate website
at https://investors.bwen.com/investors. To listen to a live
broadcast, go to the site at least 15 minutes prior to the
scheduled start time in order to register, download, and install
any necessary audio software.
To participate in the live teleconference:
Live
Teleconference: |
1-877-407-9716 |
To listen to a replay of the teleconference,
which will be available through August 21, 2023:
Teleconference Replay: |
1-844-512-2921 |
Conference ID: |
13740063 |
ABOUT BROADWIND
Broadwind (NASDAQ: BWEN) is a precision
manufacturer of structures, equipment and components for clean tech
and other specialized applications. With facilities throughout the
U.S., our talented team is committed to helping customers maximize
performance of their investments—quicker, easier and smarter. Find
out more at www.bwen.com.
NON-GAAP FINANCIAL MEASURESThe
Company provides non-GAAP adjusted EBITDA (earnings before
interest, income taxes, depreciation, amortization, share-based
compensation and other stock payments, restructuring costs,
impairment charges, proxy contest-related expenses and other
non-cash gains and losses) as supplemental information regarding
the Company’s business performance. The Company’s management uses
this supplemental information when it internally evaluates its
performance, 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, which 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.
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) the impact of global health concerns on the
economies and financial markets and the demand for our products;
(ii) 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, including the advanced manufacturing tax
credits (which remain subject to further technical guidance and
regulations), and state renewable portfolio standards as well as
new or continuing tariffs on steel or other products imported into
the United States; (iii) 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; (iv) the economic and
operational stability of our significant customers and suppliers,
including their respective supply chains, and the ability to source
alternative suppliers as necessary; (v) our ability to continue to
grow our business organically and through acquisitions; (vi) the
production, sales, collections, customer deposits and revenues
generated by new customer orders and our ability to realize the
resulting cash flows; (vii) information technology failures,
network disruptions, cybersecurity attacks or breaches in data
security; (viii) the sufficiency of our liquidity and alternate
sources of funding, if necessary; (ix) our ability to realize
revenue from customer orders and backlog; (x) our ability to
operate our business efficiently, comply with our debt obligations,
manage capital expenditures and costs effectively, and generate
cash flow; (xi) the economy and the potential impact it may have on
our business, including our customers; (xii) the state of the wind
energy market and other energy and industrial markets generally,
including the availability of tax credits and the impact of
competition and economic volatility in those markets; (xiii) the
effects of market disruptions and regular market volatility,
including fluctuations in the price of oil, gas and other
commodities; (xiv) competition from new or existing industry
participants including, in particular, increased competition from
foreign tower manufacturers; (xv) the effects of the change of
administrations in the U.S. federal government; (xvi) our ability
to successfully integrate and operate acquired companies and to
identify, negotiate and execute future acquisitions; (xvii) the
potential loss of tax benefits if we experience an “ownership
change” under Section 382 of the Internal Revenue Code of 1986, as
amended; (xviii) the limited trading market for our securities and
the volatility of market price for our securities; and (xix) 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 including, but not limited to, those
set forth under the caption “Risk Factors” in Part I, Item 1A of
our most recently filed Form 10-K and our other filings with the
Securities and Exchange Commission. 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.
Accordingly, forward-looking statements should not be relied upon
as a predictor of actual results.
BROADWIND, INC. AND SUBSIDIARIESCONDENSED
CONSOLIDATED BALANCE SHEETS(IN THOUSANDS)(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
ASSETS |
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
|
Cash |
|
$ |
2,095 |
|
|
$ |
12,732 |
|
|
|
Accounts
receivable, net |
|
|
28,796 |
|
|
|
17,018 |
|
|
|
AMP credit
receivable |
|
6,729 |
|
|
|
- |
|
|
|
Contract
assets |
|
2,228 |
|
|
|
1,955 |
|
|
|
Inventories,
net |
|
|
48,555 |
|
|
|
44,262 |
|
|
|
Prepaid expenses
and other current assets |
|
|
3,143 |
|
|
|
3,291 |
|
|
|
|
Total current
assets |
|
|
91,546 |
|
|
|
79,258 |
|
|
LONG-TERM
ASSETS: |
|
|
|
|
|
|
Property and
equipment, net |
|
|
46,787 |
|
|
|
45,319 |
|
|
|
Operating lease
right-of-use assets, net |
|
15,488 |
|
|
|
16,396 |
|
|
|
Intangible assets,
net |
|
|
2,395 |
|
|
|
2,728 |
|
|
|
Other assets |
|
|
749 |
|
|
|
839 |
|
|
TOTAL
ASSETS |
|
$ |
156,965 |
|
|
$ |
144,540 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
Line of credit and
current portion of long-term debt |
|
$ |
13,110 |
|
|
$ |
1,170 |
|
|
|
Current portion of
finance lease obligations |
|
|
1,590 |
|
|
|
2,008 |
|
|
|
Current portion of
operating lease obligations |
|
1,737 |
|
|
|
1,882 |
|
|
|
Accounts
payable |
|
|
28,419 |
|
|
|
26,255 |
|
|
|
Accrued
liabilities |
|
|
5,680 |
|
|
|
4,313 |
|
|
|
Customer
deposits |
|
|
30,360 |
|
|
|
34,550 |
|
|
|
|
Total current
liabilities |
|
|
80,896 |
|
|
|
70,178 |
|
|
LONG-TERM
LIABILITIES: |
|
|
|
|
|
|
Long-term debt,
net of current maturities |
|
|
7,203 |
|
|
|
7,141 |
|
|
|
Long-term finance
lease obligations, net of current portion |
|
|
3,531 |
|
|
|
4,226 |
|
|
|
Long-term
operating lease obligations, net of current portion |
|
15,917 |
|
|
|
16,696 |
|
|
|
Other |
|
|
20 |
|
|
|
26 |
|
|
|
|
Total long-term
liabilities |
|
|
26,671 |
|
|
|
28,089 |
|
|
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; 21,578,925 and
21,127,130 shares issued as of June 30, 2023 and December 31,
2022, respectively |
|
|
22 |
|
|
|
21 |
|
|
|
Treasury stock, at
cost, 273,937 shares as of June 30, 2023 and December 31,
2022, respectively |
|
(1,842 |
) |
|
|
(1,842 |
) |
|
|
Additional paid-in
capital |
|
|
398,180 |
|
|
|
397,240 |
|
|
|
Accumulated
deficit |
|
|
(346,962 |
) |
|
|
(349,146 |
) |
|
|
|
Total
stockholders' equity |
|
|
49,398 |
|
|
|
46,273 |
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
156,965 |
|
|
$ |
144,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROADWIND, INC. AND SUBSIDIARIESCONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS(IN THOUSANDS, EXCEPT PER
SHARE DATA) (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
50,843 |
|
|
$ |
50,012 |
|
|
$ |
99,716 |
|
|
$ |
91,856 |
|
|
|
|
|
Cost of sales |
|
|
42,510 |
|
|
|
47,618 |
|
|
|
84,407 |
|
|
|
87,450 |
|
|
|
|
|
Gross profit |
|
|
8,333 |
|
|
|
2,394 |
|
|
|
15,309 |
|
|
|
4,406 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general
and administrative |
|
|
5,952 |
|
|
|
4,122 |
|
|
|
11,478 |
|
|
|
8,024 |
|
|
|
|
|
Intangible
amortization |
|
|
165 |
|
|
|
184 |
|
|
|
333 |
|
|
|
367 |
|
|
|
|
|
|
Total operating
expenses |
|
|
6,117 |
|
|
|
4,306 |
|
|
|
11,811 |
|
|
|
8,391 |
|
|
|
|
|
Operating income
(loss) |
|
|
2,216 |
|
|
|
(1,912 |
) |
|
|
3,498 |
|
|
|
(3,985 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
EXPENSE, net: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net |
|
|
(751 |
) |
|
|
(776 |
) |
|
|
(1,239 |
) |
|
|
(1,121 |
) |
|
|
|
|
Other, net |
|
|
(22 |
) |
|
|
- |
|
|
|
(24 |
) |
|
|
21 |
|
|
|
|
|
|
Total other
expense, net |
|
|
(773 |
) |
|
|
(776 |
) |
|
|
(1,263 |
) |
|
|
(1,100 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
before provision for income taxes |
|
|
1,443 |
|
|
|
(2,688 |
) |
|
|
2,235 |
|
|
|
(5,085 |
) |
|
|
|
|
Provision for
income taxes |
|
|
28 |
|
|
|
15 |
|
|
|
51 |
|
|
|
22 |
|
|
|
|
|
NET INCOME
(LOSS) |
|
$ |
1,415 |
|
|
$ |
(2,703 |
) |
|
$ |
2,184 |
|
|
$ |
(5,107 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS) PER COMMON SHARE - BASIC: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
|
$ |
0.07 |
|
|
$ |
(0.13 |
) |
|
$ |
0.10 |
|
|
$ |
(0.26 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED
AVERAGE COMMON SHARES OUTSTANDING - BASIC |
|
|
21,091 |
|
|
|
20,244 |
|
|
|
20,981 |
|
|
|
19,977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS) PER COMMON SHARE - DILUTED: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
|
$ |
0.07 |
|
|
$ |
(0.13 |
) |
|
$ |
0.10 |
|
|
$ |
(0.26 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED
AVERAGE COMMON SHARES OUTSTANDING - DILUTED |
|
|
21,409 |
|
|
|
20,244 |
|
|
|
21,390 |
|
|
|
19,977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROADWIND, INC. AND SUBSIDIARIESCONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS(IN THOUSANDS)(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
CASH FLOWS
FROM OPERATING ACTIVITIES: |
|
|
|
|
|
Net income
(loss) |
|
$ |
2,184 |
|
$ |
(5,107 |
) |
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net cash used in operating
activities: |
|
|
|
|
|
Depreciation and
amortization expense |
|
|
3,167 |
|
|
3,095 |
|
|
|
|
Deferred income
taxes |
|
|
(5 |
) |
|
(9 |
) |
|
|
|
Change in fair value
of interest rate swap agreements |
|
|
- |
|
|
2 |
|
|
|
|
Share-based
compensation |
|
|
409 |
|
|
580 |
|
|
|
|
Allowance for
doubtful accounts |
|
|
16 |
|
|
30 |
|
|
|
|
Common stock issued
under defined contribution 401(k) plan |
|
|
648 |
|
|
613 |
|
|
|
|
Loss on disposal of
assets |
|
|
48 |
|
|
3 |
|
|
|
|
Changes in operating
assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
|
(11,794 |
) |
|
(7,389 |
) |
|
|
|
|
AMP credit
receivable |
|
(6,729 |
) |
|
- |
|
|
|
|
|
Employee retention
credit receivable |
|
- |
|
|
497 |
|
|
|
|
|
Contract
assets |
|
(273 |
) |
|
(2,194 |
) |
|
|
|
|
Inventories |
|
|
(4,293 |
) |
|
(1,552 |
) |
|
|
|
|
Prepaid expenses and other
current assets |
|
|
147 |
|
|
596 |
|
|
|
|
|
Accounts payable |
|
|
1,776 |
|
|
9,698 |
|
|
|
|
|
Accrued liabilities |
|
|
1,367 |
|
|
656 |
|
|
|
|
|
Customer deposits |
|
|
(4,190 |
) |
|
(7,789 |
) |
|
|
|
|
Other non-current assets and
liabilities |
|
|
75 |
|
|
6 |
|
|
Net cash used in
operating activities |
|
|
(17,447 |
) |
|
(8,264 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS
FROM INVESTING ACTIVITIES: |
|
|
|
|
|
Purchases of
property and equipment |
|
|
(3,977 |
) |
|
(1,697 |
) |
|
|
Proceeds from
disposals of property and equipment |
|
|
15 |
|
|
- |
|
|
Net cash used in
investing activities |
|
|
(3,962 |
) |
|
(1,697 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS
FROM FINANCING ACTIVITIES: |
|
|
|
|
|
Proceeds from line of
credit, net |
|
|
11,991 |
|
|
10,687 |
|
|
|
Proceeds from
long-term debt |
|
618 |
|
|
125 |
|
|
|
Payments on long-term
debt |
|
|
(607 |
) |
|
(107 |
) |
|
|
Principal payments on
finance leases |
|
|
(1,113 |
) |
|
(1,003 |
) |
|
|
Shares withheld for
taxes in connection with issuance of restricted stock |
|
(117 |
) |
|
(544 |
) |
|
Net cash provided
by financing activities |
|
|
10,772 |
|
|
9,158 |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
NET DECREASE
IN CASH |
|
|
(10,637 |
) |
|
(803 |
) |
|
CASH
beginning of the period |
|
|
12,732 |
|
|
852 |
|
|
CASH end
of the period |
|
$ |
2,095 |
|
$ |
49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROADWIND, INC. AND SUBSIDIARIESSELECTED SEGMENT
FINANCIAL INFORMATION(IN THOUSANDS)(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
ORDERS: |
|
|
|
|
|
|
|
|
|
Heavy Fabrications |
|
$ |
12,363 |
|
|
$ |
12,989 |
|
|
$ |
32,599 |
|
|
$ |
47,149 |
|
|
|
|
Gearing |
|
|
5,813 |
|
|
|
8,941 |
|
|
|
18,206 |
|
|
|
23,003 |
|
|
|
|
Industrial Solutions |
|
|
7,185 |
|
|
|
4,116 |
|
|
|
14,158 |
|
|
|
8,587 |
|
|
|
|
Total orders |
|
$ |
25,361 |
|
|
$ |
26,046 |
|
|
$ |
64,963 |
|
|
$ |
78,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES: |
|
|
|
|
|
|
|
|
|
Heavy Fabrications |
|
$ |
33,944 |
|
|
$ |
35,575 |
|
|
$ |
65,537 |
|
|
$ |
62,847 |
|
|
|
|
Gearing |
|
|
10,977 |
|
|
|
10,115 |
|
|
|
22,943 |
|
|
|
20,700 |
|
|
|
|
Industrial Solutions |
|
|
6,270 |
|
|
|
5,049 |
|
|
|
11,692 |
|
|
|
9,121 |
|
|
|
|
Corporate and Other |
|
|
(348 |
) |
|
|
(727 |
) |
|
|
(456 |
) |
|
|
(812 |
) |
|
|
|
Total revenues |
|
$ |
50,843 |
|
|
$ |
50,012 |
|
|
$ |
99,716 |
|
|
$ |
91,856 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT/(LOSS): |
|
|
|
|
|
|
|
|
|
Heavy Fabrications |
|
$ |
3,867 |
|
|
$ |
78 |
|
|
$ |
6,657 |
|
|
$ |
(383 |
) |
|
|
|
Gearing |
|
|
348 |
|
|
|
(585 |
) |
|
|
929 |
|
|
|
(697 |
) |
|
|
|
Industrial Solutions |
|
|
843 |
|
|
|
32 |
|
|
|
1,465 |
|
|
|
(177 |
) |
|
|
|
Corporate and Other |
|
|
(2,842 |
) |
|
|
(1,437 |
) |
|
|
(5,553 |
) |
|
|
(2,728 |
) |
|
|
|
Total operating profit (loss) |
|
$ |
2,216 |
|
|
$ |
(1,912 |
) |
|
$ |
3,498 |
|
|
$ |
(3,985 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROADWIND, INC. AND SUBSIDIARIESRECONCILIATION OF
NON-GAAP FINANCIAL MEASURES(IN THOUSANDS)(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
|
Net Income
(Loss) |
|
$ |
1,415 |
|
$ |
(2,703 |
) |
|
$ |
2,184 |
|
$ |
(5,107 |
) |
|
|
Interest
Expense |
|
|
751 |
|
|
776 |
|
|
|
1,239 |
|
|
1,121 |
|
|
|
Income Tax
Provision |
|
|
28 |
|
|
15 |
|
|
|
51 |
|
|
22 |
|
|
|
Depreciation and
Amortization |
|
|
1,562 |
|
|
1,576 |
|
|
|
3,167 |
|
|
3,095 |
|
|
|
Share-based
Compensation and Other Stock Payments |
|
|
567 |
|
|
708 |
|
|
|
1,060 |
|
|
1,232 |
|
|
|
Proxy
Contest-Related Expenses |
|
|
1,036 |
|
|
- |
|
|
|
1,755 |
|
|
- |
|
|
|
|
Adjusted EBITDA
(Non-GAAP) |
|
$ |
5,359 |
|
$ |
372 |
|
|
$ |
9,456 |
|
$ |
363 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heavy Fabrications
Segment |
|
Three Months Ended June 30, |
|
Six Ended June 30, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
Net Income (Loss) |
|
$ |
3,736 |
|
|
$ |
(302 |
) |
|
$ |
6,326 |
|
$ |
(778 |
) |
|
Interest Expense |
|
|
137 |
|
|
|
455 |
|
|
|
277 |
|
|
595 |
|
|
Income Tax (Benefit)
Provision |
|
|
(5 |
) |
|
|
(74 |
) |
|
|
54 |
|
|
(201 |
) |
|
Depreciation |
|
|
856 |
|
|
|
862 |
|
|
|
1,714 |
|
|
1,741 |
|
|
Share-based Compensation and
Other Stock Payments |
|
|
241 |
|
|
|
256 |
|
|
|
452 |
|
|
472 |
|
|
Adjusted EBITDA (Non-GAAP) |
|
$ |
4,965 |
|
|
$ |
1,197 |
|
|
$ |
8,823 |
|
$ |
1,829 |
|
|
|
|
|
|
|
|
|
|
|
|
Gearing
Segment |
|
Three Months Ended June 30, |
|
Six Ended June 30, |
|
|
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
Net Income (Loss) |
|
$ |
273 |
|
$ |
(630 |
) |
|
$ |
774 |
|
$ |
(766 |
) |
|
Interest Expense |
|
|
67 |
|
|
43 |
|
|
|
140 |
|
|
90 |
|
|
Income Tax Provision |
|
|
8 |
|
|
2 |
|
|
|
15 |
|
|
2 |
|
|
Depreciation and
Amortization |
|
|
556 |
|
|
554 |
|
|
|
1,152 |
|
|
1,030 |
|
|
Share-based Compensation and
Other Stock Payments |
|
|
117 |
|
|
160 |
|
|
|
233 |
|
|
278 |
|
|
Adjusted EBITDA (Non-GAAP) |
|
$ |
1,021 |
|
$ |
129 |
|
|
$ |
2,314 |
|
$ |
634 |
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Solutions
Segment |
|
Three Months Ended June 30, |
|
Six Ended June 30, |
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
|
Net Income (Loss) |
|
$ |
681 |
|
$ |
(32 |
) |
|
$ |
1,210 |
|
$ |
(257 |
) |
|
|
Interest Expense |
|
|
128 |
|
|
52 |
|
|
|
211 |
|
|
66 |
|
|
|
Income Tax Provision |
|
|
13 |
|
|
9 |
|
|
|
21 |
|
|
11 |
|
|
|
Depreciation and
Amortization |
|
|
92 |
|
|
98 |
|
|
|
186 |
|
|
201 |
|
|
|
Share-based Compensation and
Other Stock Payments |
|
|
57 |
|
|
73 |
|
|
|
101 |
|
|
134 |
|
|
|
Adjusted EBITDA (Non-GAAP) |
|
$ |
971 |
|
$ |
200 |
|
|
$ |
1,729 |
|
$ |
155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and
Other |
|
Three Months Ended June 30, |
|
Six Ended June 30, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Net Loss |
|
$ |
(3,275 |
) |
|
$ |
(1,739 |
) |
|
$ |
(6,126 |
) |
|
$ |
(5,917 |
) |
|
Interest Expense |
|
|
419 |
|
|
|
226 |
|
|
|
611 |
|
|
|
481 |
|
|
Income Tax Provision
(Benefit) |
|
|
12 |
|
|
|
78 |
|
|
|
(39 |
) |
|
|
(408 |
) |
|
Depreciation and
Amortization |
|
|
58 |
|
|
|
62 |
|
|
|
115 |
|
|
|
212 |
|
|
Share-based Compensation and
Other Stock Payments |
|
|
152 |
|
|
|
219 |
|
|
|
274 |
|
|
|
1,155 |
|
|
Proxy Contest-Related
Expenses |
|
|
1,036 |
|
|
|
- |
|
|
|
1,755 |
|
|
|
- |
|
|
Adjusted EBITDA (Non-GAAP) |
|
$ |
(1,598 |
) |
|
$ |
(1,154 |
) |
|
$ |
(3,410 |
) |
|
$ |
(4,477 |
) |
|
|
|
|
|
|
|
|
|
|
IR CONTACT
Noel Ryan, IRC
BWEN@val-adv.com
Broadwind (NASDAQ:BWEN)
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From Apr 2024 to May 2024
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From May 2023 to May 2024