UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
Form 8-K
_____________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event Reported): October 31, 2017
BROADWIND ENERGY, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware | 001-34278 | 88-0409160 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
3240 S. Central Ave., Cicero, Illinois 60804 |
(Address of Principal Executive Offices) (Zip Code) |
708-780-4800
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | ||
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02. Results of Operations and Financial Condition.
On October 31, 2017, Broadwind Energy, Inc. (the “Company”) issued a press release announcing its financial results as of and for the quarter ended September 30, 2017. The press release is incorporated herein by reference and is attached hereto as Exhibit 99.1. The information contained in, or incorporated into, this Item 2.02 of this Current Report on Form 8-K (this “Report”), including Exhibit 99.1, is furnished under Item 2.02 of Form 8-K and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended (the “Securities Act”) or the Exchange Act regardless of any general incorporation language in such filings.
Item 7.01. Regulation FD Disclosure.
An Investor Presentation dated October 31, 2017 is incorporated herein by reference and attached hereto as Exhibit 99.2. The information contained in, or incorporated into, this Item 7.01 of this Report, including Exhibit 99.2 attached hereto, is furnished under Item 7.01 of Form 8-K and shall not be deemed “filed” for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act or the Exchange Act regardless of any general incorporation language in such filings. This Report shall not be deemed an admission as to the materiality of any information in this Report that is being disclosed pursuant to Regulation FD. Please refer to Exhibit 99.2 for a discussion of certain forward-looking statements included therein and the risks and uncertainties related thereto.
Item 9.01. Financial Statements and Exhibits.
(d) | Exhibits | |
EXHIBIT | ||
NUMBER | DESCRIPTION | |
99.1 | Press Release dated October 31, 2017 | |
99.2 | Investor Presentation dated October 31, 2017 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
BROADWIND ENERGY, INC. | ||
Date: October 31, 2017 | By: | /s/ Stephanie K. Kushner |
Stephanie K. Kushner | ||
Chief Executive Officer (Principal Executive Officer) | ||
EXHIBIT INDEX
EXHIBIT NUMBER |
DESCRIPTION | |||
99.1 | Press Release dated October 31, 2017 | |||
99.2 | Investor Presentation dated October 31, 2017 |
EXHIBIT 99.1
Broadwind Energy Announces Q3 2017 Results
Highlights:
CICERO, Ill., Oct. 31, 2017 (GLOBE NEWSWIRE) -- Broadwind Energy, Inc. (NASDAQ:BWEN) reported sales of $29.6 million in Q3 2017, compared to $42.6 million in Q3 2016. Towers and Weldments segment revenue was down $22 million as customers reduced purchases in order to draw down component inventories. The weaker tower revenue was partially offset by $6.1 million of sales from the Process Systems segment due primarily to the acquisition of Red Wolf Company, LLC earlier this year, and $3 million increased sales from the Gearing segment due to the strong order intake from oil and gas customers since the beginning of the year.
The Company reported a net loss from continuing operations of $2.0 million, or $.14 per share, in Q3 2017, compared to a net income from continuing operations of $1.2 million in Q3 2016, or $.08 per share. The reduction in earnings was largely due to the significantly weaker results from the Towers and Weldments segment, partly offset by a $1.4 million gain, resulting from the expectation that the contingent consideration payment associated with the Red Wolf acquisition will not be paid for the first year of ownership.
The Company reported a net loss from discontinued operations of $.2 million, or $.01 per share in Q3 2017, compared to a net loss from discontinued operations of $.4 million, or $.03 per share in Q3 2016, as activities in the discontinued segment have substantially wound down.
The Company reported non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, share-based payments and restructuring costs) of $.9 million in Q3 2017, down from $3.3 million in Q3 2016 (please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release).
Broadwind CEO Stephanie Kushner stated, “Our Q3 2017 results were disappointing but in-line with expectations. The Towers and Weldments segment is managing through the challenges of a significant decline in production, which will recover beginning early next year. During the quarter, the tower workforce was sized appropriately for the lower production volume, although we transferred several employees to work on industrial weldments at both our Manitowoc and Abilene manufacturing facilities, where demand has been growing. Additionally, we are leveraging the Broadwind Weld School to train and qualify other Broadwind production workers to support the increasing demand for skilled welding professionals in our markets. Our Gearing segment shipped $7.6 million during the quarter as a result of the significant uptick in orders during 2017, primarily from oil & gas customers. In response to the market recovery and our strong order intake, we incurred some additional expense to purchase tooling, repair idle equipment and ramp up and train employees to support higher sales. With our current backlog, we have visibility into mid-2018 and expect quarterly revenues in the $9-10 million range.”
Ms. Kushner continued, “Our Process Systems segment had a much improved third quarter, with $6.1 million in sales and positive operating income. Integration of Red Wolf is complete, and we are focused on customer and product diversification, which is progressing more slowly than we’d planned. We remain enthusiastic about the opportunities in this business segment.
“The fourth quarter should represent our low point for towers. As a result, we expect consolidated revenues in the fourth quarter to be in the $20 million range, and to incur an EBITDA loss of $2-3 million. Revenues should begin to rebound in early 2018. We expect first quarter consolidated revenue of about $30 million and second quarter consolidated revenue to rise above $40 million. The industry maintains expectations for a strong market through at least 2020 and Broadwind continues to be a reliable supplier, producing high-quality towers which we believe is a key differentiator in this market.”
For the nine months ended September 30, 2017, revenue totaled $129.0 million, compared to $132.7 million for the nine months ended September 30, 2016. The 3% decrease was due primarily to a $18.8 million decrease in Tower and Weldments segment revenue partially offset by $12.3 million of sales from the Process Systems segment primarily due to the acquisition of Red Wolf earlier this year and $2.8 million of higher sales in the Gearing segment. The decreased sales in the Towers and Weldments segment were due to the low order intake in 2017, as noted above.
Net income from continuing operations for the nine months ended September 30, 2017 totaled $3.7 million, or $.25 per share, compared to $.9 million, or $.06 per share, for the nine months ended September 30, 2016. The current year net income 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. This was partially offset by a net loss from continuing operations in the Process Systems segment totaling $1.8 million for the nine-months ended September 30, 2017. Net loss from discontinued operations for the nine months ended September 30, 2017 totaled $.4 million compared to $.9 million for the same period in 2016. The Company reported non-GAAP adjusted EBITDA of $6.7 million for the nine months ended September 30, 2017, compared to $7.1 million for the same period in 2016. The decrease was due primarily to the reduced sales volumes in the Towers and Weldments segment, partially offset by the gain recognized from the reversal of the first year contingent consideration from the Red Wolf acquisition, as well as favorability in the other business segments (please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release).
Orders and Backlog
The Company booked $17.7 million of net new orders in Q3 2017, down from $27.5 million of net new orders booked in Q3 2016. Orders in the Towers and Weldments segment totaled $1.8 million in Q3 2017, reflecting the weaker demand from our tower customers who are drawing down component inventories. Gearing segment orders totaled $10.6 million in Q3 2017, up substantially from Q3 2016 orders of $2.2 million, due to recovery in the oil and gas industry, and the expansion of the commercial organization. Process Systems segment orders totaled $5.3 million in Q3 2017.
At September 30, 2017, total backlog was $143.3 million, compared to a backlog of $204.2 million at September 30, 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 $16.0 million in Q3 2017, compared to $38.0 million in Q3 2016. The decrease in sales was due to a 63% decrease in tower production versus the prior year, slightly offset by higher material costs, which are generally passed through to customers. Towers and Weldments operating loss in Q3 2017 totaled $1.5 million compared to operating income of $4.1 million in Q3 2016 due to the lower volume of towers sold in Q3, partly offset by significant reductions in manufacturing overhead and operating expenses. Towers and Weldments segment net loss in Q3 2017 totaled $.9 million compared to net income of $2.8 million in Q3 2016. Non-GAAP adjusted EBITDA loss totaled $.2 million in Q3 2017, compared to Non-GAAP adjusted EBITDA of $5.1 million in Q3 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).
Gearing
Broadwind Energy engineers, builds and remanufactures precision gears and gearboxes for oil and gas, mining, steel and wind applications.
Gearing segment sales totaled $7.6 million in Q3 2017, compared to $4.6 million in Q3 2016 due primarily to stronger sales to oil and gas customers.
Gearing segment operating loss totaled $.4 million in Q3 2017, compared to $.7 million in Q3 2016. The improvement was due to the initial impact of the increase in volume somewhat offset by increased expenses on tooling and maintenance and the addition of key employees to support the ramp up in production associated with the strong order intake in 2017. Net loss for the Gearing segment narrowed similarly to $.4 million compared to $.7 million in Q3 2016. Non-GAAP adjusted EBITDA for Q3 2017 totaled $.3 million, compared to break-even non-GAAP adjusted EBITDA for Q3 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 Systems
Broadwind 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-based CNG and fabrication business, previously reported as a part of Towers and Weldments, to form the Process Systems segment.
For Q3 2017, Process Systems segment sales totaled $6.1 million and Q3 2017 net income totaled $.1 million. Non-GAAP adjusted EBITDA totaled $.6 million in Q3 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 million in Q3 2017, compared to $2.0 million in Q3 2016. The current quarter included a $1.4 million gain resulting from the expectation that the contingent consideration payment associated with the Red Wolf acquisition will not be paid for the first year of ownership. This impact was partially offset by increased self-insurance expenses.
Cash and Liquidity
During Q3 2017, operating working capital (accounts receivable and inventory, net of accounts payable and customer deposits) decreased to $15.5 million, or 13% of sales, due the timing of customer receipts.
Capital expenditures, net of disposals, in Q3 2017 totaled $1.7 million due primarily to various facility upgrades. To-date, capital investments total $6.0 million, primarily for upgrades to tower manufacturing capabilities and to expand the Abilene tower facility.
Debt and capital leases totaled $12.9 million at September 30, 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 $25 million line of credit with Canadian Imperial Bank of Commerce had a balance of $7.8 million at September 30, 2017 and $11.8 million of availability.
Cash assets (cash and short-term investments) remained near zero as planned because the Company is utilizing its line of credit.
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 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. 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.
BROADWIND ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) | |||||||||||||
September 30, | December 31, | ||||||||||||
2017 | 2016 | ||||||||||||
ASSETS | (unaudited) | ||||||||||||
CURRENT ASSETS: | |||||||||||||
Cash and cash equivalents | $ | 41 | $ | 18,699 | |||||||||
Short-term investments | - | 3,171 | |||||||||||
Restricted cash | - | 39 | |||||||||||
Accounts receivable, net of allowance for doubtful accounts of $201 | |||||||||||||
and $167 as of September 30, 2017 and December 31, 2016, respectively | 9,271 | 11,865 | |||||||||||
Inventories, net | 15,409 | 21,159 | |||||||||||
Prepaid expenses and other current assets | 2,060 | 2,449 | |||||||||||
Current assets held for sale | 382 | 808 | |||||||||||
Total current assets | 27,163 | 58,190 | |||||||||||
LONG-TERM ASSETS: | |||||||||||||
Property and equipment, net | 56,452 | 54,606 | |||||||||||
Goodwill | 4,882 | - | |||||||||||
Other intangible assets, net | 16,549 | 4,572 | |||||||||||
Other assets | 238 | 294 | |||||||||||
TOTAL ASSETS | $ | 105,284 | $ | 117,662 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
CURRENT LIABILITIES: | |||||||||||||
Line of credit and NMTC note payable | $ | 10,370 | $ | - | |||||||||
Current portions of capital lease obligations | 991 | 465 | |||||||||||
Accounts payable | 7,075 | 15,852 | |||||||||||
Accrued liabilities | 6,551 | 8,430 | |||||||||||
Customer deposits | 2,085 | 18,011 | |||||||||||
Current liabilities held for sale | 323 | 493 | |||||||||||
Total current liabilities | 27,395 | 43,251 | |||||||||||
LONG-TERM LIABILITIES: | |||||||||||||
Long-term debt, net of current maturities | - | 2,600 | |||||||||||
Long-term capital lease obligations, net of current portions | 1,537 | 1,038 | |||||||||||
Other | 3,603 | 2,190 | |||||||||||
Total long-term liabilities | 5,140 | 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; 15,418,907 | |||||||||||||
and 15,175,767 shares issued as of September 30, 2017 and | |||||||||||||
December 31, 2016, respectively | 15 | 15 | |||||||||||
Treasury stock, at cost, 273,937 shares as of September 30, 2017 and December 31, 2016, | |||||||||||||
respectively | (1,842 | ) | (1,842 | ) | |||||||||
Additional paid-in capital | 379,702 | 378,876 | |||||||||||
Accumulated deficit | (305,126 | ) | (308,466 | ) | |||||||||
Total stockholders' equity | 72,749 | 68,583 | |||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 105,284 | $ | 117,662 | |||||||||
BROADWIND ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Revenues | $ | 29,595 | $ | 42,552 | $ | 129,017 | $ | 132,689 | ||||||||||||
Cost of sales | 28,581 | 37,221 | 117,757 | 119,254 | ||||||||||||||||
Gross profit | 1,014 | 5,331 | 11,260 | 13,435 | ||||||||||||||||
OPERATING EXPENSES: | ||||||||||||||||||||
Selling, general and administrative | 2,374 | 3,860 | 10,711 | 11,785 | ||||||||||||||||
Intangible amortization | 471 | 111 | 1,293 | 333 | ||||||||||||||||
Total operating expenses | 2,845 | 3,971 | 12,004 | 12,118 | ||||||||||||||||
Operating (loss) income | (1,831 | ) | 1,360 | (744 | ) | 1,317 | ||||||||||||||
OTHER (EXPENSE) INCOME, net: | ||||||||||||||||||||
Interest expense, net | (228 | ) | (125 | ) | (584 | ) | (431 | ) | ||||||||||||
Other, net | (12 | ) | 10 | 17 | 27 | |||||||||||||||
Total other expense, net | (240 | ) | (115 | ) | (567 | ) | (404 | ) | ||||||||||||
Net (loss) income before benefit for income taxes | (2,071 | ) | 1,245 | (1,311 | ) | 913 | ||||||||||||||
Benefit for income taxes | (22 | ) | - | (5,056 | ) | (16 | ) | |||||||||||||
(LOSS) INCOME FROM CONTINUING OPERATIONS | (2,049 | ) | 1,245 | 3,745 | 929 | |||||||||||||||
LOSS FROM DISCONTINUED OPERATIONS | (158 | ) | (373 | ) | (405 | ) | (908 | ) | ||||||||||||
NET (LOSS) INCOME | $ | (2,207 | ) | $ | 872 | $ | 3,340 | $ | 21 | |||||||||||
NET (LOSS) INCOME PER COMMON SHARE - BASIC: | ||||||||||||||||||||
(Loss) income from continuing operations | $ | (0.14 | ) | $ | 0.08 | $ | 0.25 | $ | 0.06 | |||||||||||
Loss from discontinued operations | (0.01 | ) | (0.03 | ) | (0.03 | ) | (0.06 | ) | ||||||||||||
Net (loss) income | $ | (0.15 | ) | $ | 0.06 | $ | 0.22 | $ | 0.00 | |||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC | 15,095 | 14,876 | 15,013 | 14,824 | ||||||||||||||||
NET (LOSS) INCOME PER COMMON SHARE - DILUTED: | ||||||||||||||||||||
(Loss) income from continuing operations | $ | (0.14 | ) | $ | 0.08 | $ | 0.24 | $ | 0.06 | |||||||||||
Loss from discontinued operations | (0.01 | ) | (0.02 | ) | (0.02 | ) | (0.06 | ) | ||||||||||||
Net (loss) income | $ | (0.15 | ) | $ | 0.06 | $ | 0.22 | $ | 0.00 | |||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - DILUTED | 15,095 | 15,121 | 15,345 | 15,038 | ||||||||||||||||
BROADWIND ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) (UNAUDITED) | |||||||||||
Nine Months Ended September 30, | |||||||||||
2017 | 2016 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 3,340 | $ | 21 | |||||||
Loss from discontinued operations | (405 | ) | (908 | ) | |||||||
Income from continuing operations | 3,745 | 929 | |||||||||
Adjustments to reconcile net cash used in operating activities: | |||||||||||
Depreciation and amortization expense | 6,571 | 5,138 | |||||||||
Deferred income taxes | (5,056 | ) | - | ||||||||
Stock-based compensation | 651 | 592 | |||||||||
Allowance for doubtful accounts | 13 | 45 | |||||||||
Common stock issued under defined contribution 401(k) plan | 175 | - | |||||||||
Gain on disposal of assets | (12 | ) | (147 | ) | |||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 5,281 | (5,187 | ) | ||||||||
Inventories | 10,928 | (2,013 | ) | ||||||||
Prepaid expenses and other current assets | 377 | (982 | ) | ||||||||
Accounts payable | (9,284 | ) | 7,118 | ||||||||
Accrued liabilities | (4,037 | ) | 777 | ||||||||
Customer deposits | (15,934 | ) | 11,541 | ||||||||
Other non-current assets and liabilities | (45 | ) | (744 | ) | |||||||
Net cash (used in) provided by operating activities of continuing operations | (6,627 | ) | 17,067 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Cash paid in acquisition | (16,449 | ) | - | ||||||||
Purchases of available for sale securities | - | (19,207 | ) | ||||||||
Sales of available for sale securities | 2,221 | 167 | |||||||||
Maturities of available for sale securities | 950 | 9,005 | |||||||||
Purchases of property and equipment | (5,972 | ) | (4,007 | ) | |||||||
Proceeds from disposals of property and equipment | 5 | 479 | |||||||||
Net cash used in investing activities of continuing operations | (19,245 | ) | (13,563 | ) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Net proceeds from issuance of stock | - | 19 | |||||||||
Net proceeds from lines of credit and notes payable | 7,770 | - | |||||||||
Payments on long-term debt | - | (2,799 | ) | ||||||||
Principal payments on capital leases | (557 | ) | (500 | ) | |||||||
Net cash provided by (used in) financing activities of continuing operations | 7,213 | (3,280 | ) | ||||||||
DISCONTINUED OPERATIONS: | |||||||||||
Operating cash flows | (40 | ) | 786 | ||||||||
Investing cash flows | - | 615 | |||||||||
Financing cash flows | - | (12 | ) | ||||||||
Net cash (used in) provided by discontinued operations | (40 | ) | 1,389 | ||||||||
Add: Cash balance of discontinued operations, beginning of period | 2 | - | |||||||||
Less: Cash balance of discontinued operations, end of period | - | 2 | |||||||||
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (18,697 | ) | 1,611 | ||||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH beginning of the period | 18,738 | 6,519 | |||||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH end of the period | $ | 41 | $ | 8,130 | |||||||
Supplemental cash flow information: | |||||||||||
Interest paid | $ | 413 | $ | 376 | |||||||
Income taxes paid | $ | 52 | $ | 22 | |||||||
Contingent consideration related to business acquisition | $ | 1,140 | |||||||||
Non-cash investing and financing activities: | |||||||||||
Issuance of restricted stock grants | $ | 651 | $ | 592 | |||||||
Equipment additions via capital lease | $ | 1,582 | $ | - | |||||||
Red Wolf acquisition: | |||||||||||
Assets acquired | $ | 26,491 | $ | - | |||||||
Liabilities assumed | $ | 7,508 | $ | - | |||||||
BROADWIND ENERGY, INC. AND SUBSIDIARIES SELECTED SEGMENT FINANCIAL INFORMATION (IN THOUSANDS) (UNAUDITED) | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||
ORDERS: | |||||||||||||||||||
Towers and Weldments | $ | 1,764 | $ | 25,329 | $ | 32,331 | $ | 231,401 | |||||||||||
Gearing | 10,566 | 2,162 | 29,530 | 11,307 | |||||||||||||||
Process Systems | 5,345 | - | 13,404 | - | |||||||||||||||
Total orders | $ | 17,675 | $ | 27,491 | $ | 75,265 | $ | 242,708 | |||||||||||
REVENUES: | |||||||||||||||||||
Towers and Weldments | $ | 15,971 | $ | 37,970 | $ | 99,194 | $ | 117,948 | |||||||||||
Gearing | 7,570 | 4,582 | 17,511 | 14,759 | |||||||||||||||
Process Systems | 6,054 | - | 12,312 | - | |||||||||||||||
Corporate and Other | - | - | - | (18 | ) | ||||||||||||||
Total revenues | $ | 29,595 | $ | 42,552 | $ | 129,017 | $ | 132,689 | |||||||||||
OPERATING PROFIT/(LOSS): | |||||||||||||||||||
Towers and Weldments | $ | (1,473 | ) | $ | 4,050 | $ | 7,177 | $ | 10,016 | ||||||||||
Gearing | (396 | ) | (692 | ) | (2,562 | ) | (3,083 | ) | |||||||||||
Process Systems | 115 | - | (1,805 | ) | - | ||||||||||||||
Corporate and Other | (77 | ) | (1,998 | ) | (3,554 | ) | (5,616 | ) | |||||||||||
Total operating profit/(loss) | $ | (1,831 | ) | $ | 1,360 | $ | (744 | ) | $ | 1,317 | |||||||||
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.
BROADWIND ENERGY, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (IN THOUSANDS) (UNAUDITED) | |||||||||||||||||
Consolidated | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||
Net Income/(Loss) from continuing operations | $ | (2,049 | ) | $ | 1,245 | $ | 3,745 | $ | 929 | ||||||||
Interest Expense | 228 | 125 | 584 | 431 | |||||||||||||
Income Tax Provision/(Benefit) | (22 | ) | 0 | (5,056 | ) | (16 | ) | ||||||||||
Depreciation and Amortization | 2,267 | 1,695 | 6,571 | 5,138 | |||||||||||||
Share-based Compensation and Other Stock Payments | 439 | 195 | 900 | 628 | |||||||||||||
Adjusted EBITDA (Non-GAAP) | $ | 863 | $ | 3,260 | $ | 6,744 | $ | 7,110 | |||||||||
Towers and Weldments Segment | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||
Net Income | $ | (901 | ) | $ | 2,797 | $ | 5,127 | $ | 6,738 | |||||
Interest Expense/(Benefit) | 28 | 5 | 63 | 21 | ||||||||||
Income Tax Provision/(Benefit) | (600 | ) | 1,259 | 2,003 | 3,285 | |||||||||
Depreciation and Amortization | 1,121 | 1,007 | 3,283 | 3,066 | ||||||||||
Share-based Compensation and Other Stock Payments | 197 | 79 | 312 | 154 | ||||||||||
Adjusted EBITDA (Non-GAAP) | $ | (155 | ) | $ | 5,147 | $ | 10,788 | $ | 13,264 | |||||
Gearing Segment | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||
Net Loss | $ | (393 | ) | $ | (697 | ) | $ | (2,568 | ) | $ | (3,099 | ) | |||||
Interest Expense | 3 | 1 | 9 | 8 | |||||||||||||
Income Tax Provision/(Benefit) | (7 | ) | 5 | (2 | ) | 7 | |||||||||||
Depreciation and Amortization | 610 | 638 | 1,847 | 1,918 | |||||||||||||
Share-based Compensation and Other Stock Payments | 72 | 17 | 113 | 89 | |||||||||||||
Adjusted EBITDA (Non-GAAP) | $ | 285 | $ | (36 | ) | $ | (601 | ) | $ | (1,077 | ) | ||||||
Process Systems | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||
Net Income/(Loss) | $ | 124 | $ | - | $ | (1,817 | ) | $ | - | |||||
Interest Expense | 1 | - | 4 | - | ||||||||||
Income Tax Provision/(Benefit) | (22 | ) | - | (10 | ) | - | ||||||||
Depreciation and Amortization | 477 | - | 1,278 | - | ||||||||||
Share-based Compensation and Other Stock Payments | 18 | - | 34 | - | ||||||||||
Adjusted EBITDA (Non-GAAP) | $ | 598 | $ | - | $ | (511 | ) | $ | - | |||||
Corporate and Other | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net Income/(Loss) | $ | (879 | ) | $ | (855 | ) | $ | 3,003 | $ | (2,710 | ) | |||||
Interest Expense | 196 | 119 | 508 | 402 | ||||||||||||
Income Tax Provision/(Benefit) | 607 | (1,264 | ) | (7,047 | ) | (3,308 | ) | |||||||||
Depreciation and Amortization | 59 | 50 | 163 | 154 | ||||||||||||
Share-based Compensation and Other Stock Payments | 152 | 99 | 441 | 385 | ||||||||||||
Adjusted EBITDA (Non-GAAP) | $ | 135 | $ | (1,851 | ) | $ | (2,932 | ) | $ | (5,077 | ) |
BWEN INVESTOR CONTACT: Joni Konstantelos, 708.780.4819 joni.konstantelos@bwen.com
EXHIBIT 99.2
Q3 2017 Earnings Call October 31, 2017
Industry Data and Forward - Looking Statements Disclaimer ▪ Broadwind obtained the industry and market data used throughout this presentation from our own research, internal surveys and st udies conducted by third parties, independent industry associations or general publications and other publicly available informatio n. Independent industry publications and surveys generally state that they have obtained information from sources believed to be reliable, but do not gu arantee the accuracy or completeness of such information. Forecasts are particularly likely to be inaccurate, especially over long periods of time. W e a re not aware of any misstatements in the industry data we have presented herein, but estimates involve risks and uncertainties and a re subject to change based on various factors beyond our control. ▪ This presentation contains “forward - looking statements ”, as defined in Section 21E of the Securities Exchange Act of 1934, as amended. Forward - looking statements include any statement that does not directly relate to a current or historical fact. Our forward - look ing 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, conti nua tion or renewal of federal tax incentives and grants and state renewable portfolio standards; (ii) our customer relationships and efforts to div ers ify our customer base and sector focus and leverage customer relationships across business units; (iii) our ability to continue to grow our busines s o rganically and through acquisitions; (iv) the sufficiency of our liquidity and alternate sources of funding, if necessary; (v) our ability t o r ealize revenue from customer orders and backlog; (vi) our ability to operate our business efficiently, manage capital expenditures and costs effe cti vely, 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 marke ts; (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. We are under no duty to update any of these statements. You sh oul d 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 c urr ent beliefs, expectations, plans and/or assumptions to change. ▪ This presentation contains non - GAAP financial information. We believe that certain non - GAAP financial measures may provide users of this financial information with meaningful comparisons between current results and results in prior operating periods. We believe tha t these non - GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a c omp arison of historical information that excludes certain infrequently occurring or non - operational items that impact the overall comparabili ty. Non - GAAP financial measures should be viewed in addition to, and not as an alternative to, our reported results prepared in accordance wi th GAAP. Please see our earnings release dated October 31, 2017 for a reconciliation of certain non - GAAP measures presented in this presentation. October 31, 2017 2 © 2017 Broadwind Energy, Inc. All rights reserved.
Highlights October 31, 2017 ▪ Q3 revenue of $30 million due to Tower weakness, offset by growth in other segments ▪ Oil and gas markets remain strong; mining demand accelerating ▪ Gearing segment results improved but fall short of expectation ▪ Process Systems is accretive in quarter, although short of earn - out targets ▪ Successful cost reduction removes $1.1 million of overhead in quarter ▪ Credit line balance declines to $8 million - $12 million additional availability on line 3 © 2017 Broadwind Energy, Inc. All rights reserved.
Orders and Backlog Orders – $M ▪ Tower orders remain weak – emerging demand for welded fabrications for mining ▪ Strong Gearing orders from oil & gas customers ▪ Process Systems Book:Bill > 1 – new gas turbine orders and mining Backlog – $M ▪ 9 /30/17 backlog $143M ▪ Current multi - year tower order supports baseload production through 2019 October 31, 2017 - 50 100 150 200 250 300 350 Q1 12 Q3 12 Q1 13 Q3 13 Q1 14 Q3 14 Q1 15 Q3 15 Q1 16 Q3 16 Q1 17 Q3 17 Millions Q3 2016 Q3 2017 YTD 2016 YTD 2017 YTD 2017 Book: Bill Towers & Weldments $25.3 $1.8 $231.4 $32.3 .33 Gearing 2.2 10.6 11.3 29.5 1.69 Process Systems n/a 5.3 n/a 13.4 1.05 Total 27.5 17.6 242.7 57.6 .45 4 © 2017 Broadwind Energy, Inc. All rights reserved.
US Wind Market Update October 31, 2017 Source: MAKE Global Wind Market Outlook Update Development Pipeline - GW Source: AWEA Q3 2017 Market Report 5 ▪ Pipeline of projects under construction or in advanced development continues to grow – 27% increase vs. Q3 2016 ▪ Adv. dev means turbines ordered, PPA signed or utility owned ▪ Little change vs. prior quarter ▪ Slight shift of demand toward PTC - expiration year ▪ Post - PTC uncertainty remains © 2017 Broadwind Energy, Inc. All rights reserved. 0 5 10 15 20 25 30 35 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Under construction at QE Adv. Development Evolving Forecast – GW Installations 6 7 8 9 10 11 12 13 2015a 2016a 2017e 2018e 2019e 2020e Q4 2016 FC Q2 2017 FC Q3 2017 FC
*Excluding automotive 6 US Gearing Production Increasing Sources: AGMA & IHS ▪ US market reached inflection point in 2016 ▪ BWEN’s gearing market generally growing faster ▪ Gearing plant configuration has been modified for improved efficiency and production flexibility 5.1% CAGR US Gear Demand by Market 2014 - 2016 CAGR 2017 - 2019 CAGR Turbines/Power - 11.5% 9.5% Oil & Gas - 24.7% 17.4% Mining - 19.8% 7.8% Other Industrial - 7.5% 5.3% US Total - 8.9% 6.2% Source: IHS Markit August 2017 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2015a 2016a 2017e 2018e 2019e 2020e $M US Gear Production
7 © 2017 Broadwind Energy, Inc. All rights reserved. Global Gas Turbine Market October 31, 2017 ▪ Red Wolf sales concentrated in gas turbine market – new units and aftermarket ▪ New unit market deliveries running well behind 2016, although back - end loading not unusual ▪ Industry experts predicting ~3% annual growth rate 2018 - 2020 Sources: McCoy Power Reports 0 10 20 30 40 50 60 70 80 0 50 100 150 200 250 300 350 400 450 500 2012 2013 2014 2015 2016 Capacity (GW) # of Units # of Units GW Global Gas Turbine Orders (Utility and IPP segment ) 2016 2017 Units 132 100 259 GW 24 17 42 First Half Memo: 2016 Full Year
BWEN Consolidated Financial Results October 31, 2017 ▪ Q3 17 sales down from Q3 16 – lower tower sales volumes, partially offset by added Red Wolf sales and increased Gearing sales ▪ Operating loss for Q3 17 due to low tower volume, partially offset by reductions in m anufacturing overhead and operating expenses ▪ Adj. EBITDA of $.9 million in Q3 17 – includes $1.4M release of Red Wolf earn out payment 8 © 2017 Broadwind Energy, Inc. All rights reserved. Q3 16 Q3 17 YTD 16 YTD 17 Total Sales $42.6 $29.6 $132.7 $129.0 Gross Profit 5.3 1.0 13.4 11.3 Gross Profit % 12.5% 3.4% 10.1% 8.7% Operating Expense 4.0 2.8 12.1 12.0 Operating Income/(Loss) 1.4 - 1.8 1.3 - 0.7 % of sales 3.2% - 6.2% 1.0% - 0.5% Adj. EBITDA 3.3 0.9 7.1 6.7 % of sales 7.7% 2.9% 5.4% 5.2% EPS, Continuing 0.08 - 0.14 0.06 0.25 $M except as noted otherwise
Towers and Weldments Q3 2016 Q3 2017 YTD 2016 YTD 2017 Orders ($M) $25.3 $1.8 $231.4 $32.3 Towers Sold (#) 113 42 339 263 Revenue ($M) 38.0 16.0 117.9 99.2 Operating Inc/Loss ($M) 4.1 - 1.5 10.0 7.2 - % of Sales 10.7 - 9.2 8.5 7.2 EBITDA* ($M) 5.1 - 0.2 13.3 10.8 - % of Sales 13.4 - 1.0 11.2 10.9 Q3 Results ▪ Tower orders remain weak – emerging demand for welded fabrications for mining ▪ Q3 17 tower count down to 42 as customers work down inventories ▪ Operating loss due to low tower volume, partially offset by lower manufacturing overhead and operating expense ▪ YTD EBITDA margin 10.9% Current Objectives ▪ Aggressive cost management in response to soft demand ▪ Complete capital investments to provide better production flexibility ▪ Diversify tower customer base and grow weldment business October 31, 2017 * Reconciliation to non - GAAP measure included in Appendix 9 © 2017 Broadwind Energy, Inc. All rights reserved. 0 100 200 300 400 500 2015a 2016a 2017e # of towers BWEN Annual Tower Sales
Gearing Q3 2016 Q3 2017 YTD 2016 YTD 2017 Orders ($M) 2.2 10.6 11.3 29.5 Revenue ($M) 4.6 7.6 14.8 17.5 Operating Loss ($M) - 0.7 - 0.4 - 3.1 - 2.6 EBITDA* ($M) 0.0 0.3 - 1.1 - 0.6 Q3 Results ▪ Orders continue to be strong primarily from oil & gas customers ▪ Revenue up 65% in Q3 and 18% YTD ▪ Plant layout reconfigured to boost productivity ▪ Operating loss improved – increased volume and productivity, partly offset by ramp - up expenses October 31, 2017 Current Objectives ▪ Leverage expanded sales resources to improve capacity utilization ▪ Continue CI events to improve production flow ▪ Continue aggressive cost management ▪ Positive EBITDA for 2017 — trending to positive operating income ▪ Complete rationalization of manufacturing footprint/finalize environmental remediation * Reconciliation to non - GAAP measure included in Appendix 10 © 2017 Broadwind Energy, Inc. All rights reserved. 0 10 20 30 40 50 2013a 2014a 2015a 2016a 2017e $ M Gearing Revenue by Market Oil & Gas Mining Wind Industrial Steel
October 31, 2017 Process Systems Q3 2016 Q3 2017 YTD 2016 YTD 2017 Orders ($M) n/a 5.3 n/a 13.4 Revenue ($M) n/a 6.1 n/a 12.3 Operating Profit/(Loss) ($M) n/a 0.1 n/a - 1.8 EBITDA* ($M) n/a 0.6 n/a - 0.5 * Reconciliation to non - GAAP measure included in Appendix Q3 Results ▪ Process Systems includes Abilene - based CNG, and Red Wolf as of Feb 1, 2017 ▪ Q3 orders up sequentially due to increased weldment orders ▪ Q3 17 revenue double Q2 17 Current Objectives ▪ Complete integration of Red Wolf into BWEN ▪ Grow Red Wolf business by expanding customer base and entering new markets ▪ Refine procurement process to support scaling up business 11 © 2017 Broadwind Energy, Inc. All rights reserved.
$- $0.05 $0.10 $0.15 $0.20 Operating Working Capital (OWC) October 31, 2017 ▪ Q3 OWC cents/$ sales flat compared to Q2 17 ▪ OWC dollars decreased as expected, due to lower sales and the timing of customer receipts * Operating Working Capital = Trade A/R + Inventories – Trade Payables – Customer Deposits 12/31/16 3/31/17 6/30/17 9/30/17 DSO 22 39 45 29 Inv. Turns 8.2 7.7 7.4 7.7 DPO 33 36 34 21 Cash Conv. (days) 0 28 50 48 OWC $M - 0.8 16.3 23.0 15.5 OWC* Historical Trend – cents/$ sales OWC* Management 12 © 2017 Broadwind Energy, Inc. All rights reserved.
Balance Sheet and Capital Expenditures October 31, 2017 $1.6 $6.2 $6.0 2015 2016 2017 YTD Cap Ex Actual $M Capital Expenditures ▪ Debt declined by $6M due to working capital reduction ▪ CIBC (previously The Private Bank) $25M credit line had $12M of additional availability at quarter - end ▪ Capital expenditures totaled $1.7M in Q3 17, $6.0M YTD – above normal 2% of sales run rate due to Abilene expansion 12/31/2016 6/30/2017 9/30/2017 Cash Assets 21.9$ 0.2$ 0.0$ Accounts Receivable 11.9 21.5 9.3 Inventory 21.2 21.3 15.4 PPE 54.6 57.4 56.5 Other 8.1 24.6 24.1 Total Assets 117.7 125.0 105.3 Accounts Payable 15.9 14.6 7.1 Customer Deposits 18.0 5.2 2.1 Debt + Cap. Leases 4.1 19.1 12.9 Other 11.1 11.5 10.4 Total Liabilities 49.1 50.4 32.5 Equity 68.6 74.6 72.8 (In Millions) 13 © 2017 Broadwind Energy, Inc. All rights reserved. % of sales 0.8% 3.4% 4.6%
2017 Guidance and Priorities October 31, 2017 ▪ Q4 g uidance: ~$20M revenue, EBITDA ($2 - 3M) ▪ Revenue normalizes beginning Q1 2018 ▪ Q1: ~$30M ▪ Q2: >$40M ▪ Continued focus on diversification of tower customers and growth of other welded fabrications ▪ Gearing – achieve consistent profitability at $9 - 10M quarterly revenue ▪ Process Systems – new product launch, customer diversification 14 © 2017 Broadwind Energy, Inc. All rights reserved.
Appendix October 31, 2017 15 © 2017 Broadwind Energy, Inc. All rights reserved. Consolidated 2017 2016 2017 2016 Net Income/(Loss) from continuing operations…………………………….(2,049)$ 1,245$ 3,745$ 929$ Interest Expense…………………………………. 228 125 584 431 Income Tax Provision/(Benefit)……………………………… (22) 0 (5,056) (16) Depreciation and Amortization………………………………………………………………2,267 1,695 6,571 5,138 Share-based Compensation and Other Stock Payments………………………………………………………………439 195 900 628 Adjusted EBITDA (Non-GAAP)………………… 863$ 3,260$ 6,744$ 7,110$ Three Months Ended September 30, Nine Months Ended September 30, Towers and Weldments Segment 2017 2016 2017 2016 Net Income…...……………………………. (901)$ 2,797$ 5,127$ 6,738$ Interest Expense/(Benefit)…………………………………. 28 5 63 21 Income Tax Provision/(Benefit)……………………………… (600) 1,259 2,003 3,285 Depreciation and Amortization………………………………………………………………1,121 1,007 3,283 3,066 Share-based Compensation and Other Stock Payments………………………………………………………………197 79 312 154 Adjusted EBITDA (Non-GAAP)…………………. (155)$ 5,147$ 10,788$ 13,264$ Three Months Ended September 30, Nine Months Ended September 30, Gearing Segment 2017 2016 2017 2016 Net Loss……………………………. (393)$ (697)$ (2,568)$ (3,099)$ Interest Expense…………………………………. 3 1 9 8 Income Tax Provision/(Benefit)……………………………… (7) 5 (2) 7 Depreciation and Amortization………………………………………………………………610 638 1,847 1,918 Share-based Compensation and Other Stock Payments………………………………………………………………72 17 113 89 Adjusted EBITDA (Non-GAAP)…………………. 285$ (36)$ (601)$ (1,077)$ Three Months Ended September 30, Nine Months Ended September 30, Process Systems 2017 2016 2017 2016 Net Income/(Loss)……………………………. 124$ -$ (1,817)$ -$ Interest Expense…………………………………. 1 - 4 - Income Tax Provision/(Benefit)……………………………… (22) - (10) - Depreciation and Amortization………………………………………………………………477 - 1,278 - Share-based Compensation and Other Stock Payments………………………………………………………………18 - 34 - Adjusted EBITDA (Non-GAAP)…………………. 598$ -$ (511)$ -$ Three Months Ended September 30, Nine Months Ended September 30, Corporate and Other 2017 2016 2017 2016 Net Income/(Loss)……………………………. (879)$ (855)$ 3,003$ (2,710)$ Interest Expense…………………………………. 196 119 508 402 Income Tax Provision/(Benefit)……………………………… 607 (1,264) (7,047) (3,308) Depreciation and Amortization………………………………………………………………59 50 163 154 Share-based Compensation and Other Stock Payments………………………………………………………………152 99 441 385 Adjusted EBITDA (Non-GAAP)…………………. 135$ (1,851)$ (2,932)$ (5,077)$ Three Months Ended September 30, Six Months Ended June 30,
Broadwind Energy is a precision manufacturer of structures, equipment & components for clean tech and other specialized applications . www.BWEN.com October 31, 2017 16 © 2017 Broadwind Energy, Inc. All rights reserved.
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