Broadwind (Nasdaq: BWEN, or the “Company”), a diversified precision
manufacturer of specialized components and solutions serving global
markets, today announced results for the fourth quarter and
full-year 2023.
FOURTH QUARTER 2023 RESULTS(As compared to the
fourth quarter 2022)
- Total revenue of $46.6 million, +16.3% y/y
- Total gross profit of $7.0 million, +$4.5 million y/y
- Net income of $1.1 million, or $0.05 per diluted share
- Total non-GAAP adjusted EBITDA of $4.4 million, +$4.3 million
y/y
- Total tower sections sold +37.5% y/y to 132 sections
- Ratio of net debt to trailing twelve-month non-GAAP adjusted
EBITDA of 0.8x as of December 31, 2023
FULL-YEAR 2023 RESULTS(As compared to the
full-year 2022)
- Total revenue of $203.5 million, +15.1% y/y
- Total gross profit of $32.5 million, +203.5% y/y
- Net income of $7.6 million, or $0.36 per diluted share
- Total non-GAAP adjusted EBITDA of $21.5 million, +$19.0 million
y/y
For the three months ended December 31, 2023,
Broadwind reported total revenue of $46.6 million, an increase of
16.3% when compared to the prior year period. The Company reported
net income of $1.1 million, or $0.05 per diluted share in the
fourth quarter 2023, compared to a net loss ($2.9) million, or
($0.14) per basic share, in the fourth quarter 2022. The Company
reported adjusted EBITDA, a non-GAAP measure, of $4.4 million in
the fourth quarter 2023, compared to $0.2 million in the prior-year
period. For a reconciliation of GAAP to non-GAAP metrics, please
see the appendix of this release.
Fourth quarter results benefited from a
combination of broad-based demand growth within both the Heavy
Fabrications and Industrial Solutions segments, continued price
discipline, and operational rigor, culminating in improved
operating leverage and profitability, when compared to the year-ago
period. Fourth quarter results reflect the positive impact of
increased tower utilization and benefits derived from advanced
manufacturing production credits associated with the Inflation
Reduction Act (“IRA”). Total gross margin increased more than 870
basis points on a year-over-year basis to 15.1%, while non-GAAP
adjusted EBITDA margin increased more than 900 basis points to 9.5%
in the fourth quarter 2023.
Fourth quarter orders increased 27% on a
sequential basis, as compared to the third quarter 2023, but
declined as compared to the near-record order levels achieved in
the prior-year period that was attributable to a large tower order
with a global wind turbine manufacturer. Total backlog was $183.1
million as of December 31, 2023, as compared to $297.2 million in
the year-ago period.
As of December 31, 2023, Broadwind had total
cash on hand and availability under the Company’s credit facility
of $22.8 million, down from $40.1 million at the end of the fourth
quarter 2022.
MANAGEMENT COMMENTARY
“Broadwind delivered strong full-year results
highlighted by record margin realization, net income and adjusted
EBITDA,” stated Eric Blashford, President and CEO of Broadwind.
“While 2023 was a transitional period for domestic onshore wind
development, we continued to drive organic sales growth within our
core industrials, mining and energy markets through a combination
of new contract wins, together with increased customer demand for
our proprietary Pressure Reducing System (“PRS”) technology. As
we’ve built momentum through our commercial strategy, our team has
also continued to drive improved productivity and cost efficiency
throughout the organization, consistent with an ongoing focus on
sustained operational excellence.”
“During the fourth quarter, our revenue,
operating income and profitability all increased meaningfully above
prior-year levels, driven by a combination of increased sales of
tower sections, together with solid demand across our diverse
markets,” continued Blashford. “While orders and backlog declined
from near-record levels in the prior year period, order rates
increased on a sequential basis across all three reporting
segments.”
“Domestic onshore wind development activity is
expected to gradually accelerate beginning in the second half of
2024,” noted Blashford. “Even still, a higher interest rate
environment and raw materials inflation have impacted project
economics for some developers, leading them to temporarily delay or
defer the timing of their investments. In the interim, we have
aligned our cost structure to reflect a period of lower production
volumes at our tower facilities, while repurposing capacity toward
non-wind demand across our diverse end markets. We remain highly
constructive on the long-term economics of wind, particularly with
the decade-long tax credit visibility afforded by the IRA, of which
Broadwind remains a key beneficiary.”
“At year-end 2023, we had $22.8 million of
available cash and liquidity to support our operations,” continued
Blashford. “Looking to 2024, we have eliminated nearly all planned
discretionary capital spending as we seek to optimize liquidity
during a transitional period. As of December 31, 2023, our net
leverage was 0.8x, well within our target range of at or below
2.0x.”
“Today, we introduced financial guidance for the
first quarter 2024,” concluded Blashford. “Further to our
expectations around the pace of wind-related tower demand, we
anticipate our full-year performance will be weighted toward the
second half of 2024, given discussions with our customers. As
demand conditions accelerate, we remain well-positioned to drive
improved operating leverage, while positioning the Company to
further capitalize on 45x tax credit provided for within the
IRA.”
SEGMENT RESULTS
Heavy Fabrications Segment
Broadwind provides large, complex and precision fabrications, and
proprietary industrial processing equipment, to customers in a
broad range of industrial markets. Key products include wind
towers, compressed natural gas pressure reducing systems and
industrial fabrications, including mining and material handling
components and other frames/structures.
Heavy Fabrications segment sales increased by
24.4% to $29.5 million in the fourth quarter 2023, as compared to
the prior-year period, primarily driven by a 37.5% increase in
towers sections sold. The segment reported operating income of $2.6
million in the fourth quarter of 2023, as compared to an operating
loss of ($1.0) million in the prior year period. Segment non-GAAP
adjusted EBITDA was $3.7 million in the fourth quarter 2023, as
compared to $0.3 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 oil &
gas production, surface and underground mining, wind energy, steel,
material handling and other infrastructure markets.
Gearing segment sales declined by 5.4% to $11.1
million in the fourth quarter 2023, as compared to the prior year
period, as steel and industrial sector sales were offset by lower
mining and energy sector activity. The segment reported operating
income of $0.7 million in the fourth quarter 2023, compared to
operating income of $0.1 million in the prior year period. The
segment reported non-GAAP adjusted EBITDA of $1.3 million in the
fourth quarter 2023, versus $0.8 million in the fourth quarter
2022.
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
29.4% to $6.0 million in the fourth quarter 2023, as compared to
the prior year period, primarily driven by increased demand for new
and aftermarket gas turbine content. The segment reported operating
income of $0.8 million in the fourth quarter 2023, compared to
operating income of $0.5 million in the prior year period. The
segment reported non-GAAP adjusted EBITDA of $1.0 million in the
fourth quarter 2023, versus $0.7 million in the prior year
period.
FINANCIAL GUIDANCE
Today, Broadwind introduced financial guidance
for the first quarter 2024. The following financial guidance
reflects the Company’s current expectations and beliefs. All
guidance is current as of the time provided and is subject to
change.
|
First Quarter 2024 |
$ in Millions |
Low |
Mid |
High |
|
|
|
|
Total
Revenue |
$34.0 |
$36.0 |
$38.0 |
Adjusted
EBITDA |
$1.0 |
$1.5 |
$2.0 |
FOURTH QUARTER AND FULL-YEAR 2023 RESULTS CONFERENCE
CALL
Broadwind will host a conference call today,
March 5, 2024 at 12:00 p.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: 877-407-9716
To listen to a replay of the teleconference,
which will be available through March 12, 2024:
Teleconference
Replay: 844-512-2921Conference
ID: 13743770
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 MEASURES
The 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, (the “Exchange Act”), that reflect our current
expectations regarding our future growth, results of operations,
financial condition, cash flows, performance, business prospects
and opportunities, as well as assumptions made by, and information
currently available to, our management. 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) our expectations and beliefs with
respect to our financial guidance as set forth in this release;
(ii) the impact of global health concerns on the economies and
financial markets and the demand for our products; (iii) 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; (iv) 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; (v) our ability to
operate our business efficiently, comply with our debt obligations,
manage capital expenditures and costs effectively, and generate
cash flow; (vi) 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; (vii) our ability to continue to grow our business
organically and through acquisitions; (viii) the production, sales,
collections, customer deposits and revenues generated by new
customer orders and our ability to realize the resulting cash
flows; (ix) information technology failures, network disruptions,
cybersecurity attacks or breaches in data security; (x) the
sufficiency of our liquidity and alternate sources of funding, if
necessary; (xi) our ability to realize revenue from customer orders
and backlog (including our ability to finalize the terms of the
remaining obligations under a supply agreement with a leading
global wind turbine manufacturer); (xii) the economy and the
potential impact it may have on our business, including our
customers; (xiii) 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; (xiv) the effects of market
disruptions and regular market volatility, including fluctuations
in the price of oil, gas and other commodities; (xv) competition
from new or existing industry participants including, in
particular, increased competition from foreign tower manufacturers;
(xvi) the effects of the change of administrations in the U.S.
federal government; (xvii) our ability to successfully integrate
and operate acquired companies and to identify, negotiate and
execute future acquisitions; (xviii) the potential loss of tax
benefits if we experience an “ownership change” under Section 382
of the Internal Revenue Code of 1986, as amended; (xix) the limited
trading market for our securities and the volatility of market
price for our securities; (xx) our outstanding indebtedness and its
impact on our business activities (including our ability to incur
additional debt in the future); and (xxi) 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 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
SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(IN THOUSANDS, EXCEPT SHARE
DATA) |
|
|
December
31, |
|
December
31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
ASSETS |
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
Cash |
$ |
1,099 |
|
|
$ |
12,732 |
|
|
Accounts receivable, net |
|
19,231 |
|
|
|
17,018 |
|
|
AMP credit receivable |
|
7,051 |
|
|
|
- |
|
|
Contract assets |
|
1,460 |
|
|
|
1,955 |
|
|
Inventories |
|
37,405 |
|
|
|
44,262 |
|
|
Prepaid expenses and other current assets |
|
3,500 |
|
|
|
3,291 |
|
|
Total current assets |
|
69,746 |
|
|
|
79,258 |
|
|
LONG-TERM ASSETS: |
|
|
|
|
Property and equipment, net |
|
47,123 |
|
|
|
45,319 |
|
|
Operating lease right-of-use assets, net |
|
15,593 |
|
|
|
16,396 |
|
|
Intangible assets, net |
|
2,064 |
|
|
|
2,728 |
|
|
Other assets |
|
630 |
|
|
|
839 |
|
|
TOTAL ASSETS |
$ |
135,156 |
|
|
$ |
144,540 |
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY |
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
Line of credit and current maturities of long-term debt |
$ |
5,903 |
|
|
$ |
1,170 |
|
|
Current portion of finance lease obligations |
|
2,153 |
|
|
|
2,008 |
|
|
Current portion of operating lease obligations |
|
1,851 |
|
|
|
1,882 |
|
|
Accounts payable |
|
20,728 |
|
|
|
26,255 |
|
|
Accrued liabilities |
|
6,477 |
|
|
|
4,313 |
|
|
Customer deposits |
|
16,500 |
|
|
|
34,550 |
|
|
Total current liabilities |
|
53,612 |
|
|
|
70,178 |
|
|
LONG-TERM LIABILITIES: |
|
|
|
|
Long-term debt, net of current maturities |
|
6,250 |
|
|
|
7,141 |
|
|
Long-term finance lease obligations, net of current portion |
|
3,372 |
|
|
|
4,226 |
|
|
Long-term operating lease obligations, net of current portion |
|
15,888 |
|
|
|
16,696 |
|
|
Other |
|
15 |
|
|
|
26 |
|
|
Total long-term liabilities |
|
25,525 |
|
|
|
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;
21,840,301 and 21,127,130 shares issued as of December 31, 2023 and
December 31, 2022, respectively |
|
22 |
|
|
|
21 |
|
|
Treasury stock, at cost, 273,937 shares as of December 31, 2023 and
December 31, 2022, respectively |
|
(1,842 |
) |
|
|
(1,842 |
) |
|
Additional paid-in capital |
|
399,336 |
|
|
|
397,240 |
|
|
Accumulated deficit |
|
(341,497 |
) |
|
|
(349,146 |
) |
|
Total stockholders' equity |
|
56,019 |
|
|
|
46,273 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
135,156 |
|
|
$ |
144,540 |
|
|
|
|
|
|
|
BROADWIND, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(IN THOUSANDS,
EXCEPT PER SHARE DATA)(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
46,598 |
|
|
$ |
40,060 |
|
|
$ |
203,477 |
|
|
$ |
176,759 |
|
|
Cost of
sales |
|
39,566 |
|
|
|
37,504 |
|
|
|
170,969 |
|
|
|
166,049 |
|
|
Gross
profit |
|
7,032 |
|
|
|
2,556 |
|
|
|
32,508 |
|
|
|
10,710 |
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
Selling,
general and administrative |
|
4,592 |
|
|
|
4,483 |
|
|
|
20,705 |
|
|
|
16,592 |
|
|
Intangible
amortization |
|
166 |
|
|
|
175 |
|
|
|
664 |
|
|
|
725 |
|
|
Total operating expenses |
|
4,758 |
|
|
|
4,658 |
|
|
|
21,369 |
|
|
|
17,317 |
|
|
Operating
income (loss) |
|
2,274 |
|
|
|
(2,102 |
) |
|
|
11,139 |
|
|
|
(6,607 |
) |
|
|
|
|
|
|
|
|
|
|
OTHER EXPENSE, net: |
|
|
|
|
|
|
|
|
Interest
expense, net |
|
(1,030 |
) |
|
|
(863 |
) |
|
|
(3,201 |
) |
|
|
(3,218 |
) |
|
Other,
net |
|
(11 |
) |
|
|
113 |
|
|
|
(48 |
) |
|
|
130 |
|
|
Total other expense, net |
|
(1,041 |
) |
|
|
(750 |
) |
|
|
(3,249 |
) |
|
|
(3,088 |
) |
|
|
|
|
|
|
|
|
|
|
Net income
(loss) before provision for income taxes |
|
1,233 |
|
|
|
(2,852 |
) |
|
|
7,890 |
|
|
|
(9,695 |
) |
|
Provision
(benefit) for income taxes |
|
162 |
|
|
|
(1 |
) |
|
|
241 |
|
|
|
35 |
|
|
NET
INCOME (LOSS) |
$ |
1,071 |
|
|
$ |
(2,851 |
) |
|
$ |
7,649 |
|
|
$ |
(9,730 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) PER COMMON SHARE - BASIC: |
|
|
|
|
|
|
|
|
Net income
(loss) |
$ |
0.05 |
|
|
$ |
(0.14 |
) |
|
$ |
0.36 |
|
|
$ |
(0.48 |
) |
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -
BASIC |
|
21,449 |
|
|
|
20,723 |
|
|
|
21,189 |
|
|
|
20,299 |
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) PER COMMON SHARE - DILUTED: |
|
|
|
|
|
|
|
|
Net income
(loss) |
$ |
0.05 |
|
|
$ |
(0.14 |
) |
|
$ |
0.36 |
|
|
$ |
(0.48 |
) |
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -
DILUTED |
|
21,633 |
|
|
|
20,723 |
|
|
|
21,491 |
|
|
|
20,299 |
|
|
|
|
|
|
|
|
|
|
|
BROADWIND, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(IN
THOUSANDS)(UNAUDITED) |
|
|
|
|
Twelve Months Ended December 31, |
|
|
2023 |
|
|
2022 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
Net income (loss) |
$ |
7,649 |
|
$ |
(9,730 |
) |
|
|
|
Adjustments to reconcile net cash (used in) provided by
operating activities: |
|
Depreciation and amortization expense |
|
6,383 |
|
|
6,060 |
|
Deferred income taxes |
|
(10 |
) |
|
(13 |
) |
Change in fair value of interest rate swap agreements |
|
- |
|
|
(27 |
) |
Share-based compensation |
|
877 |
|
|
944 |
|
Allowance for doubtful accounts |
|
82 |
|
|
(30 |
) |
Common stock issued under defined contribution 401(k) plan |
|
1,336 |
|
|
1,244 |
|
Loss on disposal of assets |
|
42 |
|
|
3 |
|
Changes in operating assets and liabilities: |
|
|
Accounts receivable |
|
(2,295 |
) |
|
(3,186 |
) |
AMP credit receivable |
|
(7,051 |
) |
|
- |
|
Employee retention credit receivable |
|
- |
|
|
497 |
|
Contract assets |
|
495 |
|
|
(820 |
) |
Inventories |
|
6,857 |
|
|
(10,885 |
) |
Prepaid expenses and other current assets |
|
(210 |
) |
|
(629 |
) |
Accounts payable |
|
(6,008 |
) |
|
9,926 |
|
Accrued liabilities |
|
2,782 |
|
|
686 |
|
Customer deposits |
|
(18,050 |
) |
|
22,468 |
|
Other non-current assets and liabilities |
|
175 |
|
|
135 |
|
Net cash (used in) provided by operating activities |
|
(6,946 |
) |
|
16,643 |
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
Purchases of property and equipment |
|
(6,405 |
) |
|
(3,098 |
) |
Proceeds from disposals of property and equipment |
|
21 |
|
|
- |
|
Net cash used in investing activities |
|
(6,384 |
) |
|
(3,098 |
) |
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
Proceeds from (payments on) from line of credit, net |
|
4,705 |
|
|
(6,368 |
) |
Payments for deferred financing costs |
|
(48 |
) |
|
(452 |
) |
Proceeds from long-term debt |
|
1,056 |
|
|
8,113 |
|
Payments on long-term debt |
|
(1,872 |
) |
|
(863 |
) |
Principal payments on finance leases |
|
(1,409 |
) |
|
(1,776 |
) |
Shares withheld for taxes in connection with issuance of restricted
stock |
|
(735 |
) |
|
(549 |
) |
Proceeds from sale of common stock, net |
|
- |
|
|
230 |
|
Net cash provided by (used in) financing activities |
|
1,697 |
|
|
(1,665 |
) |
|
|
|
- |
|
|
|
|
NET (DECREASE) INCREASE IN CASH |
|
(11,633 |
) |
|
11,880 |
|
CASH beginning of the period |
|
12,732 |
|
|
852 |
|
CASH end of the period |
$ |
1,099 |
|
$ |
12,732 |
|
|
|
|
Supplemental cash flow information: |
|
|
Interest paid |
$ |
2,073 |
|
$ |
1,638 |
|
Income taxes paid |
$ |
17 |
|
$ |
23 |
|
|
|
|
Non-cash investing and financing activities: |
|
|
Equipment additions via finance lease |
$ |
719 |
|
$ |
3,882 |
|
Non-cash purchases of property and equipment |
$ |
482 |
|
$ |
134 |
|
Settlement of incentive compensation liability with stock |
$ |
619 |
|
$ |
- |
|
|
|
|
BROADWIND, INC. AND
SUBSIDIARIESSELECTED SEGMENT FINANCIAL INFORMATION(IN
THOUSANDS)(UNAUDITED) |
|
|
|
Three Months
Ended |
|
Twelve
Months Ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
ORDERS: |
|
|
|
|
|
|
|
Heavy Fabrications |
|
$ |
9,985 |
|
|
$ |
184,075 |
|
|
$ |
50,594 |
|
|
$ |
294,097 |
|
|
Gearing |
|
|
3,603 |
|
|
|
15,071 |
|
|
|
24,814 |
|
|
|
53,597 |
|
|
Industrial Solutions |
|
|
6,619 |
|
|
|
5,685 |
|
|
|
25,652 |
|
|
|
20,333 |
|
|
Total orders |
|
$ |
20,207 |
|
|
$ |
204,831 |
|
|
$ |
101,060 |
|
|
$ |
368,027 |
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES: |
|
|
|
|
|
|
|
Heavy Fabrications |
|
$ |
29,503 |
|
|
$ |
23,720 |
|
|
$ |
133,368 |
|
|
$ |
117,206 |
|
|
Gearing |
|
|
11,061 |
|
|
|
11,697 |
|
|
|
45,408 |
|
|
|
42,588 |
|
|
Industrial Solutions |
|
|
6,035 |
|
|
|
4,663 |
|
|
|
25,159 |
|
|
|
17,804 |
|
|
Corporate and Other |
|
|
(1 |
) |
|
|
(20 |
) |
|
|
(458 |
) |
|
|
(839 |
) |
|
Total revenues |
|
$ |
46,598 |
|
|
$ |
40,060 |
|
|
$ |
203,477 |
|
|
$ |
176,759 |
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT/(LOSS): |
|
|
|
|
|
|
|
Heavy Fabrications |
|
$ |
2,554 |
|
|
$ |
(1,032 |
) |
|
$ |
15,006 |
|
|
$ |
(1,044 |
) |
|
Gearing |
|
|
654 |
|
|
|
116 |
|
|
|
1,846 |
|
|
|
43 |
|
|
Industrial Solutions |
|
|
848 |
|
|
|
487 |
|
|
|
3,160 |
|
|
|
120 |
|
|
Corporate and Other |
|
|
(1,782 |
) |
|
|
(1,673 |
) |
|
|
(8,873 |
) |
|
|
(5,726 |
) |
|
Total operating profit (loss) |
|
$ |
2,274 |
|
|
$ |
(2,102 |
) |
|
$ |
11,139 |
|
|
$ |
(6,607 |
) |
|
|
|
|
|
|
|
|
|
|
|
BROADWIND, INC. AND
SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL MEASURES(IN
THOUSANDS)(UNAUDITED) |
|
|
|
|
|
|
Consolidated |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
Net Income
(Loss) |
$ |
1,072 |
|
$ |
(2,851 |
) |
|
$ |
7,649 |
|
$ |
(9,730 |
) |
Interest
Expense |
|
1,031 |
|
|
863 |
|
|
|
3,201 |
|
|
3,218 |
|
Income Tax
Provision (Benefit) |
|
162 |
|
|
(1 |
) |
|
|
241 |
|
|
35 |
|
Depreciation
and Amortization |
|
1,611 |
|
|
1,478 |
|
|
|
6,383 |
|
|
6,060 |
|
Share-based
Compensation and Other Stock Payments |
|
559 |
|
|
695 |
|
|
|
2,220 |
|
|
2,861 |
|
Proxy
Contest-Related Expenses |
|
1 |
|
|
- |
|
|
|
1,780 |
|
|
- |
|
Adjusted EBITDA (Non-GAAP) |
$ |
4,436 |
|
$ |
184 |
|
|
$ |
21,474 |
|
$ |
2,444 |
|
|
|
|
|
|
|
|
|
Heavy Fabrications Segment |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
Net Income
(Loss) |
$ |
1,696 |
|
$ |
(926 |
) |
|
$ |
13,862 |
|
$ |
(1,935 |
) |
Interest
Expense |
|
149 |
|
|
338 |
|
|
|
649 |
|
|
1,585 |
|
Income Tax
Provision (Benefit) |
|
711 |
|
|
(330 |
) |
|
|
493 |
|
|
(579 |
) |
Depreciation |
|
907 |
|
|
852 |
|
|
|
3,518 |
|
|
3,446 |
|
Share-based
Compensation and Other Stock Payments |
|
224 |
|
|
331 |
|
|
|
936 |
|
|
1,028 |
|
Adjusted EBITDA (Non-GAAP) |
$ |
3,687 |
|
$ |
265 |
|
|
$ |
19,458 |
|
$ |
3,545 |
|
|
|
|
|
|
|
|
|
Gearing Segment |
Three Months EndedDecember 31, |
|
Twelve Months EndedDecember 31, |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
Net Income
(Loss) |
$ |
585 |
|
$ |
(5 |
) |
|
$ |
1,553 |
|
$ |
(190 |
) |
Interest
Expense |
|
59 |
|
|
117 |
|
|
|
262 |
|
|
249 |
|
Income Tax
Provision |
|
9 |
|
|
4 |
|
|
|
32 |
|
|
7 |
|
Depreciation
and Amortization |
|
555 |
|
|
471 |
|
|
|
2,270 |
|
|
1,978 |
|
Share-based
Compensation and Other Stock Payments |
|
107 |
|
|
192 |
|
|
|
453 |
|
|
589 |
|
Adjusted EBITDA (Non-GAAP) |
$ |
1,315 |
|
$ |
779 |
|
|
$ |
4,570 |
|
$ |
2,633 |
|
|
|
|
|
|
|
|
|
Industrial Solutions Segment |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
Net Income
(Loss) |
$ |
625 |
|
$ |
410 |
|
$ |
2,504 |
|
$ |
(130 |
) |
|
Interest
Expense |
|
151 |
|
|
74 |
|
|
512 |
|
|
221 |
|
|
Income Tax
Provision |
|
62 |
|
|
1 |
|
|
96 |
|
|
22 |
|
|
Depreciation
and Amortization |
|
99 |
|
|
98 |
|
|
380 |
|
|
397 |
|
|
Share-based
Compensation and Other Stock Payments |
|
48 |
|
|
112 |
|
|
196 |
|
|
295 |
|
|
Adjusted EBITDA (Non-GAAP) |
$ |
985 |
|
$ |
695 |
|
$ |
3,688 |
|
$ |
805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net
Loss |
$ |
(1,834 |
) |
|
$ |
(2,330 |
) |
|
$ |
(10,270 |
) |
|
$ |
(7,475 |
) |
Interest
Expense |
|
672 |
|
|
|
334 |
|
|
|
1,778 |
|
|
|
1,163 |
|
Income Tax
(Benefit) Provision |
|
(620 |
) |
|
|
324 |
|
|
|
(380 |
) |
|
|
585 |
|
Depreciation
and Amortization |
|
50 |
|
|
|
57 |
|
|
|
215 |
|
|
|
239 |
|
Share-based
Compensation and Other Stock Payments |
|
180 |
|
|
|
60 |
|
|
|
635 |
|
|
|
949 |
|
Proxy
Contest-Related Expenses |
|
1 |
|
|
|
- |
|
|
|
1,780 |
|
|
|
- |
|
Adjusted EBITDA (Non-GAAP) |
$ |
(1,551 |
) |
|
$ |
(1,555 |
) |
|
$ |
(6,242 |
) |
|
$ |
(4,539 |
) |
|
|
|
|
|
|
|
|
IR CONTACT
Noel Ryan, IRC
BWEN@val-adv.com
Broadwind (NASDAQ:BWEN)
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