March 05, 2024
CICERO, Ill., March 05, 2024 (GLOBE NEWSWIRE) -- 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)
FOURTH QUARTER 2023 RESULTS
(As compared to the fourth quarter 2022)
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.
“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.”
| 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 | ||||
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