Broadwind(US:BWEN)2020-11-04 16:51Financial Performance - For the first nine months of 2020, the Company generated revenue of $158.174 million, a 22.6% increase from $128.967 million in the same period of 2019[33]. - The Heavy Fabrications segment accounted for 72% of the Company's revenue during the first nine months of 2020, with revenue of $125.424 million compared to $91.098 million in 2019, representing a 37.7% increase[24][33]. - The Company recognized a net loss of $1.003 million for the three months ended September 30, 2020, compared to a net income of $480 thousand in the same period of 2019[39]. - For the nine months ended September 30, 2020, revenues increased by $29,207, or 22.6%, to $158,174 compared to $128,967 in the same period of 2019[130]. - Net income for the nine months ended September 30, 2020, was $480, compared to a net loss of $2,958 in the same period of 2019[134]. - The operating profit for the Heavy Fabrications segment was $8.760 million, while the Gearing segment reported an operating loss of $1.935 million[87]. - Gross profit for the nine months increased by $3,904, resulting in a gross margin of 9.7%, up from 8.9% in the prior year[133]. Debt and Liquidity - Total debt and finance lease obligations as of September 30, 2020, amounted to $20.703 million, including $9.350 million in current outstanding debt[26]. - The Company anticipates that current cash resources, including proceeds from the Paycheck Protection Program, will be adequate to meet liquidity needs for at least the next twelve months[30]. - The Company has a revolving line of credit with $7.649 million outstanding as of September 30, 2020[26]. - The outstanding debt under the Credit Facility was $7,649 as of September 30, 2020, with an additional borrowing capacity of $19,214[52]. - Total cash and cash equivalents as of September 30, 2020, were $2,541, reflecting an increase of $125 from December 31, 2019[143]. - The company had debt and finance lease obligations totaling $20,703 as of September 30, 2020, with the ability to borrow an additional $19,214 under the Credit Facility[143]. Operational Challenges - The company experienced manufacturing inefficiencies and supply chain disruptions due to the COVID-19 pandemic, impacting financial results[113]. - The company emphasizes the impact of the COVID-19 pandemic on its operations and financial performance, highlighting risks related to customer relationships and supply chain stability[155]. - The company is monitoring the economic stability and operational capacity of its significant customers and suppliers amid the pandemic[155]. - The company acknowledges potential market disruptions and volatility, particularly in the wind energy sector and other industrial markets[155]. - There is a concern regarding increased competition from foreign tower manufacturers affecting market dynamics[155]. Segment Performance - Heavy Fabrications segment revenues increased by $34,326, a 38% rise from the prior year, driven by a 49% increase in tower sections sold[136]. - Gearing segment orders increased by 4% to $19,376, while revenues decreased by 26% to $20,273 due to lower demand in oil and gas markets[138]. - The Industrial Solutions segment saw orders rise to $15,240, a 25% increase, with revenues growing to $12,516, up 18% from the prior year[140]. - Heavy Fabrications segment revenues increased by $9,606, driven by a 28% increase in tower sections sold compared to the prior year[121]. Future Outlook - Future growth strategies include organic growth and acquisitions, although the COVID-19 pandemic poses challenges to these plans[155]. - The company is focused on diversifying its customer base and sector focus to mitigate dependency on a few significant customers[155]. - The potential impact of changes in U.S. federal government administration on regulatory frameworks is being evaluated[155]. - The company is assessing the sufficiency of its liquidity and alternative funding sources in light of ongoing uncertainties[155]. - The company is focused on efficiently managing capital expenditures and costs to generate positive cash flow[155]. Tax and Valuation - The company recorded a provision for income taxes of $103 million for the nine months ended September 30, 2020, compared to $62 million for the same period in 2019, indicating a 66.1% increase[71]. - The company has a full valuation allowance recorded against deferred tax assets as of September 30, 2020[71]. - As of September 30, 2020, the company had federal and unapportioned state net operating loss (NOL) carryforwards of $258,834 million, with $227,781 million set to expire in 2026[72]. Shareholder Information - The Company issued 91,481 shares of common stock under the At Market Issuance Sales Agreement, generating net proceeds of approximately $321 thousand[28]. - The company incurred share-based compensation expenses of $763,000 for the nine months ended September 30, 2020, resulting in a reduction in diluted earnings per share of $0.01[78]. - As of September 30, 2020, the company had 1,323,217 unvested restricted stock units, with a weighted average fair value per share of $1.85[78].