Broadwind Energy, Inc. (NASDAQ: BWEN) stated sales of $41.7M in Q1 2k19, up 39 percent difference to $30.0M in Q1 2k18. The sharp raise was due mainly to a $10.1M raise in Towers and Heavy Fabrications segment sales as a result of a 31 percent raise in tower sections sold, in support of a strengthening Tower market and a higher average sales price driven by raises in steel prices. In Addition To, Gearing segment sales were up $1.2M, or 14 percent difference to Q1 2k18, due mainly to strong demand from mining, wind, and other industrial customers.
The Company stated a net loss of $1.0M, or $.07 per share, in Q1 2k19, difference to a net loss of $4.8M, or $.32 per share, in Q1 2k18. The current year loss narrowed as a result of the raised in sales and improved operating performance.
The Company stated non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, share-based payments and restructuring costs) of $1.7M in Q1 2k19, difference to non-GAAP adjusted EBITDA loss of $1.6M in Q1 2k18 (please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release). The $3.3M improvement was mainly attributable to significantly higher production volume in the Towers and Heavy Fabrications segment and improvements in Gearing operating performance.
Broadwind CEO Stephanie Kushner stated, “Gearing continues to deliver strong operating results, reflecting development in the customer base, stable operations, and good cost administration. The changes in the organizational structure and investments in process changes have dramatically improved the performance of this business for the long term.”
Kushner continued, “Capacity utilization at our tower plants is rising, and we expect it to remain strong for the medium term. Margins have been influenced by higher steel prices, but the team continues to deliver operational improvements to assist offset this pressure. Our expansion into other heavy fabrications remains paramount, and order activity continues to be strong.”
Kushner concluded, “In Q2, we expect revenue to exceed $40M with about $1.3 -$1.8M of EBITDA. Our full year outlook on the business is unchanged. We continue to expect quarterly revenues to exceed $40M and EBITDA generation of about $8M for the year.”
Orders and Backlog
The Company booked $24.0M of net new orders in Q1 2k19, difference to $28.1M in Q1 2k18. Towers and Heavy Fabrications orders rose to $12.5M in Q1 2k19, up from $9.8M in Q1 2k18. Gearing orders totaled $7.1M in Q1 2k19, down from $15.4M Q1 2k18, following a surge in oil and gas orders to secure production slots in the prior year, and reflecting reduced near-term demand for frack gears linked to a pause in development activity in the Permian Basin. Process Systems orders totaled $4.4M in Q1 2k19 difference to $3.0M in Q1 2k18 as a result of higher new gas turbine content demand from an international customer.
At March 31, 2k19, total backlog was $81.1M, difference to $96.5M at December 31, 2k18, a reduction that reflects the final year of a 3-year tower supply agreement. Future orders are expected to be on a spot basis, reflecting a shift in procurement practices in the industry.
Towers and Heavy Fabrications
Broadwind Energy produces fabrications for wind, oil and gas, mining and other industrial applications, specializing in the production of wind turbine towers. In Q1 2k19, the Company revised and retroactively adjusted the financial statements of its segment reporting by moving the Abilene CNG and Fabrication business to the Towers and Heavy Fabrications segment from the Process Systems segment.
Towers and Heavy Fabrications segment sales totaled $28.3M in Q1 2k19, difference to $18.2M in Q1 2k18. The noteworthy improvements was due mainly to a 31 percent raise in tower sections sold and a higher average sales price on the product mix sold due mainly to the rise in steel prices.