FIRST QUARTER 2024 RESULTS
- Total revenue of
$37.6 million - Net income of
$1.5 million , or$0.07 per diluted share - Total non-GAAP adjusted EBITDA of
$4.2 million , or 11.1% of total revenue - Ratio of net debt to trailing twelve-month non-GAAP adjusted EBITDA of 0.6x as of
March 31, 2024
First quarter results benefited from a higher value sales mix, sustained price discipline, and targeted cost reduction actions, offset by a pause in new wind tower demand. While revenue declined by more than 23% on a year-over-year basis in the first quarter, total gross margin and non-GAAP adjusted EBITDA margin increased more than 330 basis points and 270 basis points, respectively, when compared to the year-ago period, contributing to improved profitability.
First quarter orders increased 43.5% on a sequential basis, as compared to the fourth quarter 2023, but declined as compared to the prior year period. Total backlog was
As of
MANAGEMENT COMMENTARY
“During a transitional period for the domestic onshore wind market, we’ve prioritized expansion within emerging growth, non-wind energy-transition verticals, and continued to drive improved operational efficiency across the organization, culminating in continued profitable growth,” stated
“We believe domestic onshore wind activity is poised to accelerate meaningfully in the 2025-2026 timeframe, given current indications of interest from customers,” continued Blashford. “In the interim, we’re taking action to further optimize our facilities and skilled labor force within other, higher growth energy-transition markets, while capitalizing on multi-year mega trends, including domestic onshoring and reshoring.”
“New order activity accelerated on a sequential basis across each of our reporting segments during the first quarter, with first quarter orders increasing nearly 44% versus the fourth quarter 2023,” continued Blashford. “Within our gearing segment, orders increased on a sequential basis, driven by our wind, mining and energy markets, while within Industrial Solutions, we continue to see strong activity levels from gas turbine customers,” stated Blashford.
“In recent quarters, we’ve taken significant actions to further align our cost structure with the current demand environment,” stated Blashford. “In combination, these actions will contribute more than
“Today, we introduced financial guidance for the second quarter 2024,” concluded Blashford. “While wind tower demand is expected to remain muted over the near-term, we remain pleased with the pace of new order intake and performance within our other, non-wind markets, a dynamic we expect to continue as we move through the balance of 2024.”
SEGMENT RESULTS
Heavy Fabrications Segment
Heavy Fabrications segment sales declined by 30.3% to
Gearing Segment
Gearing segment sales declined by 30.3% to
Industrial Solutions Segment
Industrial Solutions segment sales increased 47.4% to
FINANCIAL GUIDANCE
Today,
Second Quarter 2024 | ||||||
$ in Millions | Low | Mid | High | |||
Total Revenue | ||||||
Adjusted EBITDA |
FIRST QUARTER 2024 RESULTS CONFERENCE CALL
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
Teleconference Replay: | 844-512-2921 |
Conference ID: | 13745804 |
ABOUT
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
CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) (UNAUDITED) | ||||||||||
2024 | 2023 | |||||||||
ASSETS | ||||||||||
CURRENT ASSETS: | ||||||||||
Cash | $ | 1,073 | $ | 1,099 | ||||||
Accounts receivable, net | 14,601 | 19,231 | ||||||||
AMP credit receivable | 1,732 | 7,051 | ||||||||
Contract assets | 660 | 1,460 | ||||||||
Inventories | 37,386 | 37,405 | ||||||||
Prepaid expenses and other current assets | 2,829 | 3,500 | ||||||||
Total current assets | 58,281 | 69,746 | ||||||||
LONG-TERM ASSETS: | ||||||||||
Property and equipment, net | 47,137 | 47,123 | ||||||||
Operating lease right-of-use assets, net | 15,159 | 15,593 | ||||||||
Intangible assets, net | 1,899 | 2,064 | ||||||||
Other assets | 595 | 630 | ||||||||
TOTAL ASSETS | $ | 123,071 | $ | 135,156 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
CURRENT LIABILITIES: | ||||||||||
Line of credit and current maturities of long-term debt | $ | 1,428 | $ | 5,903 | ||||||
Current portion of finance lease obligations | 2,205 | 2,153 | ||||||||
Current portion of operating lease obligations | 1,914 | 1,851 | ||||||||
Accounts payable | 16,298 | 20,728 | ||||||||
Accrued liabilities | 6,406 | 6,477 | ||||||||
Customer deposits | 11,403 | 16,500 | ||||||||
Total current liabilities | 39,654 | 53,612 | ||||||||
LONG-TERM LIABILITIES: | ||||||||||
Long-term debt, net of current maturities | 6,262 | 6,250 | ||||||||
Long-term finance lease obligations, net of current portion | 3,733 | 3,372 | ||||||||
Long-term operating lease obligations, net of current portion | 15,374 | 15,888 | ||||||||
Other | 7 | 15 | ||||||||
Total long-term liabilities | 25,376 | 25,525 | ||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||
STOCKHOLDERS' EQUITY: | ||||||||||
Preferred stock, | - | - | ||||||||
Common stock, | ||||||||||
and 21,840,301 shares issued as of | ||||||||||
22 | 22 | |||||||||
respectively | (1,842 | ) | (1,842 | ) | ||||||
Additional paid-in capital | 399,848 | 399,336 | ||||||||
Accumulated deficit | (339,987 | ) | (341,497 | ) | ||||||
Total stockholders' equity | 58,041 | 56,019 | ||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 123,071 | $ | 135,156 | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) | ||||||||||
Three Months Ended | ||||||||||
2024 | 2023 | |||||||||
Revenues | $ | 37,616 | $ | 48,873 | ||||||
Cost of sales | 30,979 | 41,897 | ||||||||
Gross profit | 6,637 | 6,976 | ||||||||
OPERATING EXPENSES: | ||||||||||
Selling, general and administrative | 4,394 | 5,526 | ||||||||
Intangible amortization | 165 | 168 | ||||||||
Total operating expenses | 4,559 | 5,694 | ||||||||
Operating income | 2,078 | 1,282 | ||||||||
OTHER EXPENSE, net: | ||||||||||
Interest expense, net | (532 | ) | (488 | ) | ||||||
Other, net | 3 | (2 | ) | |||||||
Total other expense, net | (529 | ) | (490 | ) | ||||||
Net income before provision for income taxes | 1,549 | 792 | ||||||||
Provision for income taxes | 39 | 23 | ||||||||
NET INCOME | $ | 1,510 | $ | 769 | ||||||
NET INCOME PER COMMON SHARE - BASIC: | ||||||||||
Net income | $ | 0.07 | $ | 0.04 | ||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC | 21,595 | 20,869 | ||||||||
NET INCOME PER COMMON SHARE - DILUTED: | ||||||||||
Net income | $ | 0.07 | $ | 0.04 | ||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - DILUTED | 21,807 | 21,387 | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) (UNAUDITED) | |||||||||||
Three Months Ended | |||||||||||
2024 | 2023 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 1,510 | $ | 769 | |||||||
Adjustments to reconcile net cash provided by (used in) provided by operating activities: | |||||||||||
Depreciation and amortization expense | 1,596 | 1,605 | |||||||||
Deferred income taxes | (8 | ) | (5 | ) | |||||||
Stock-based compensation | 225 | 178 | |||||||||
Allowance for doubtful accounts | (2 | ) | 14 | ||||||||
Common stock issued under defined contribution 401(k) plan | 287 | 302 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 4,632 | (8,841 | ) | ||||||||
AMP credit receivable | 5,319 | (3,162 | ) | ||||||||
Contract assets | 800 | 46 | |||||||||
Inventories | 19 | (4,281 | ) | ||||||||
Prepaid expenses and other current assets | 635 | 130 | |||||||||
Accounts payable | (4,005 | ) | (784 | ) | |||||||
Accrued liabilities | (71 | ) | 847 | ||||||||
Customer deposits | (5,097 | ) | (12,799 | ) | |||||||
Other non-current assets and liabilities | 17 | (3 | ) | ||||||||
Net cash provided by (used in) operating activities | 5,857 | (25,984 | ) | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchases of property and equipment | (1,744 | ) | (1,065 | ) | |||||||
Net cash used in investing activities | (1,744 | ) | (1,065 | ) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
(Payments on) proceeds from line of credit, net | (4,657 | ) | 16,945 | ||||||||
Proceeds from long-term debt | 1,244 | - | |||||||||
Payments on long-term debt | (325 | ) | (634 | ) | |||||||
Principal payments on finance leases | (401 | ) | (265 | ) | |||||||
Net cash (used in) provided by financing activities | (4,139 | ) | 16,046 | ||||||||
(26 | ) | (11,003 | ) | ||||||||
CASH beginning of the period | 1,099 | 12,732 | |||||||||
CASH end of the period | $ | 1,073 | $ | 1,729 | |||||||
SELECTED SEGMENT FINANCIAL INFORMATION (IN THOUSANDS) (UNAUDITED) | |||||||||
Three Months Ended | |||||||||
2024 | 2023 | ||||||||
ORDERS: | |||||||||
Heavy Fabrications | $ | 11,221 | $ | 20,236 | |||||
Gearing | 10,446 | 12,393 | |||||||
Industrial Solutions | 7,329 | 6,973 | |||||||
Total orders | $ | 28,996 | $ | 39,602 | |||||
REVENUES: | |||||||||
Heavy Fabrications | $ | 22,016 | $ | 31,593 | |||||
Gearing | 8,337 | 11,965 | |||||||
Industrial Solutions | 7,994 | 5,423 | |||||||
Corporate and Other | (731 | ) | (108 | ) | |||||
Total revenues | $ | 37,616 | $ | 48,873 | |||||
OPERATING PROFIT/(LOSS): | |||||||||
Heavy Fabrications | $ | 2,046 | $ | 2,790 | |||||
Gearing | 25 | 581 | |||||||
Industrial Solutions | 1,767 | 622 | |||||||
Corporate and Other | (1,760 | ) | (2,711 | ) | |||||
Total operating profit (loss) | $ | 2,078 | $ | 1,282 | |||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (IN THOUSANDS) (UNAUDITED) | ||||||||||
Consolidated | Three Months Ended | |||||||||
2024 | 2023 | |||||||||
Net Income | $ | 1,510 | $ | 769 | ||||||
Interest Expense | 532 | 488 | ||||||||
Income Tax Provision | 39 | 23 | ||||||||
Depreciation and Amortization | 1,596 | 1,605 | ||||||||
Share-based Compensation and Other Stock Payments | 503 | 493 | ||||||||
Proxy Contest-Related Expenses | (10 | ) | 720 | |||||||
Adjusted EBITDA (Non-GAAP) | $ | 4,170 | $ | 4,098 | ||||||
Heavy Fabrications Segment | Three Months Ended | |||||||
2024 | 2023 | |||||||
Net Income | $ | 2,587 | $ | 2,590 | ||||
Interest Expense | 89 | 140 | ||||||
Income Tax (Benefit) Provision | (630 | ) | 60 | |||||
Depreciation | 911 | 858 | ||||||
Share-based Compensation and Other Stock Payments | 178 | 210 | ||||||
Adjusted EBITDA (Non-GAAP) | $ | 3,135 | $ | 3,858 | ||||
Gearing Segment | Three Months Ended | |||||||
2024 | 2023 | |||||||
Net (Loss) Income | $ | (35 | ) | $ | 501 | |||
Interest Expense | 54 | 73 | ||||||
Income Tax Provision | 7 | 8 | ||||||
Depreciation and Amortization | 540 | 595 | ||||||
Share-based Compensation and Other Stock Payments | 102 | 117 | ||||||
Adjusted EBITDA (Non-GAAP) | $ | 668 | $ | 1,294 | ||||
Industrial Solutions Segment | Three Months Ended | |||||||
2024 | 2023 | |||||||
Net Income | $ | 1,584 | $ | 529 | ||||
Interest Expense | 163 | 83 | ||||||
Income Tax Provision | 23 | 8 | ||||||
Depreciation and Amortization | 100 | 94 | ||||||
Share-based Compensation and Other Stock Payments | 50 | 43 | ||||||
Adjusted EBITDA (Non-GAAP) | $ | 1,920 | $ | 757 | ||||
Corporate and Other | Three Months Ended | |||||||
2024 | 2023 | |||||||
Net Loss | $ | (2,626 | ) | $ | (2,851 | ) | ||
Interest Expense | 226 | 192 | ||||||
Income Tax Provision (Benefit) | 639 | (53 | ) | |||||
Depreciation and Amortization | 45 | 58 | ||||||
Share-based Compensation and Other Stock Payments | 173 | 123 | ||||||
Proxy Contest-Related Expenses | (10 | ) | 720 | |||||
Adjusted EBITDA (Non-GAAP) | $ | (1,553 | ) | $ | (1,811 | ) | ||
IR CONTACTNoel Ryan , IRC BWEN@val-adv.com
Source:
2024 GlobeNewswire, Inc., source