Broadwind (NASDAQ: BWEN), a diversified precision
manufacturer of specialized components and solutions serving global
markets, today provided an update on new order activity and current
business conditions.
ORDER ACTIVITY
Broadwind today announced that it has received
wind tower orders from an existing wind turbine customer,
representing a total value of approximately $21 million.
Broadwind will manufacture the tower sections at its Abilene, Texas
facility. The Company expects to deliver the tower sections
to its customer during the first half of 2021.
BUSINESS UPDATE
A wind turbine OEM customer has chosen to
postpone a portion of a tower order originally scheduled for the
third quarter 2020 to the first quarter of 2021. Further,
within the Company’s Gearing segment, demand conditions remain
below prior-year levels, with expectations for improved order
activity into 2021.
Due to the reduced plant capacity utilization,
Broadwind estimates that up to $2.5 million of adjusted EBITDA will
shift from the second half 2020 to the first half 2021. The
Company believes that most of the revenue and EBITDA shift will
adversely impact third quarter 2020 results. Importantly, the
Company has not experienced any material customer cancellations
within its order book.
MANAGEMENT COMMENTARY
“While the timing of wind tower orders can vary
from quarter to quarter, our tower backlog remains at elevated
levels, providing improved visibility as we look ahead to 2021,”
stated Eric Blashford, President and CEO of Broadwind. “While
the impact of COVID-19 has pushed some customer orders out into
early next year, all indications are that tower demand activity is
expected to remain strong over the next twelve months, given the
overall strength of the wind market supported by the recent
Production Tax Credit safe-harbor extension. For the
full-year 2020, we anticipate revenue of approximately $200
million, together with double digit percent year-over-year growth
in Adjusted EBITDA, supported by our ongoing diversification
efforts and a stable outlook within our core clean tech
markets.”
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 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, many of which are, and will be,
amplified by the COVID-19 pandemic: (i) the impact of global health
concerns, including the impact of the current COVID-19 pandemic 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 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, in light of
the COVID-19 pandemic; (v) our ability to continue to grow our
business organically and through acquisitions, and the impairment
thereto by the impact of the COVID-19 pandemic; (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, including with respect to any remote work arrangements
implemented in response to the COVID-19 pandemic; (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,
including its stability in light of the COVID-19 pandemic, 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 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) our ability to utilize various relief options
enabled by the CARES Act, including our ability to receive
forgiveness of the PPP Loans; (xix) the limited trading market for
our securities and the volatility of market price for our
securities; and (xx) 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 Annual Report on Form 10-K for the year ended December 31,
2019, as supplemented by our Current Report on Form 10-Q filed
August 5, 2020. 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.
CORPORATE CONTACT
Jason Bonfigt708.780.4821
Broadwind (NASDAQ:BWEN)
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