Broadwind(US:BWEN)2022-05-06 15:47Financial Performance - Net revenues for Q1 2022 were $41,844, a 28% increase from $32,728 in Q1 2021[105] - The company recorded a net loss of $2,404 or $0.12 per share in Q1 2022, compared to a net loss of $1,210 or $0.07 per share in Q1 2021[113] - Adjusted EBITDA for Q1 2022 was $(8), down from $1,217 in Q1 2021[105] - Free cash flow for Q1 2022 was $(4,487), an improvement from $(9,393) in Q1 2021[105] - Gross profit increased to $2,012 in Q1 2022, up from $282 in Q1 2021, resulting in a gross margin of 4.8%[120] - Operating expenses as a percentage of sales decreased to 9.8% in Q1 2022 from 14.0% in Q1 2021[121] - Net cash used in operating activities decreased to $6,005 in Q1 2022 from $8,437 in Q1 2021[138] - Cash totaled $773 as of March 31, 2022, a decrease of $79 from December 31, 2021[131] - Debt and finance lease obligations totaled $19,988 as of March 31, 2022[131] Orders and Backlog - Total orders in Q1 2022 were $52,693, up 54% from $34,214 in Q1 2021[111] - Backlog at the end of Q1 2022 was $117,133, compared to $94,400 at the end of Q1 2021[105] - Gearing segment orders rose by 42% to $14,061 in Q1 2022 from $9,921 in Q1 2021, primarily due to increased demand from oil & gas and mining customers[125] - Industrial Solutions segment orders increased by 28% to $4,471 in Q1 2022 from $3,496 in Q1 2021[127] - Wind tower orders in the Heavy Fabrications segment increased by 112% compared to the prior year quarter[122] Segment Performance - Gearing segment revenue increased by 98% in Q1 2022, driven by strong order intake from oil and gas and mining customers[112] - Heavy Fabrications segment revenues increased by 20% in Q1 2022, primarily due to wind repowering projects[112] - Heavy Fabrications segment revenues increased by 20% to $27,272 in Q1 2022 from $22,777 in Q1 2021, driven by wind repowering projects[122] - Gearing segment revenues increased by 98% to $10,584 in Q1 2022 from $5,349 in Q1 2021[125] Strategic Focus and Risks - The company emphasizes the impact of the COVID-19 pandemic on its operations and market conditions, highlighting the need for adaptability in its business strategies[145] - The company is focused on diversifying its customer base to reduce dependency on a few significant customers, which is crucial for long-term stability[145] - Future growth is anticipated to be influenced by the state of the wind energy market and the overall economic environment, with a particular focus on regulatory frameworks and tax incentives[145] - The company acknowledges potential risks related to supply chain stability and the operational capacity of significant customers and suppliers due to the pandemic[145] - The company is monitoring the effects of market volatility, including fluctuations in commodity prices, which could impact its financial performance[145] - The potential for increased competition from foreign manufacturers is recognized as a significant factor that could affect market positioning[145] - The company is aware of the implications of changes in U.S. federal government administration on its business operations and market strategies[145] Liquidity and Capital Management - The company anticipates that current cash resources and available credit will meet liquidity needs for at least the next twelve months[134] - The management is assessing the sufficiency of liquidity and alternative funding sources to navigate potential financial challenges[145] - The company is committed to maintaining compliance with debt obligations and effectively managing capital expenditures to ensure cash flow generation[145] - Capital expenditures in Q1 2022 were $492, down from $612 in Q1 2021[105]