Broadwind(BWEN) - 2023 Q4 - Annual Results

Financial Performance - Total revenue for Q4 2023 was $46.6 million, representing a 16.3% year-over-year increase[2] - Total gross profit for Q4 2023 was $7.0 million, an increase of $4.5 million year-over-year[2] - Net income for Q4 2023 was $1.1 million, or $0.05 per diluted share[2] - Total non-GAAP adjusted EBITDA for Q4 2023 was $4.4 million, up $4.3 million year-over-year[2] - The company achieved a net income of $1.1 million, or $0.05 per diluted share, compared to a net loss of $2.9 million, or ($0.14) per basic share, in Q4 2022[40] - Adjusted EBITDA for Q4 2023 was $4.4 million, significantly up from $0.2 million in the same period last year[40] - Total operating profit for the company was $2,274,000 in Q4 2023, compared to an operating loss of $(2,102,000) in Q4 2022, indicating a positive shift of about $4,376,000[59] - Interest expense for the company increased to $1,031,000 in Q4 2023 from $863,000 in Q4 2022, reflecting an increase of approximately 19.4%[60] Segment Performance - Heavy Fabrications segment sales rose by 24.4% to $29.5 million in Q4 2023, with operating income of $2.6 million compared to an operating loss of $1.0 million in the prior year[4] - Gearing segment sales declined by 5.4% to $11.1 million in Q4 2023, but operating income increased to $0.7 million from $0.1 million in the prior year[5] - Total orders for the Heavy Fabrications segment decreased to $9,985,000 in Q4 2023 from $184,075,000 in Q4 2022, representing a decline of approximately 94.6%[59] - The Gearing segment reported an Adjusted EBITDA of $1,315,000 in Q4 2023, up from $779,000 in Q4 2022, showing an increase of about 68.8%[61] - Corporate and Other segment reported a net loss of $(1,834,000) in Q4 2023, an improvement from a loss of $(2,330,000) in Q4 2022, reflecting a reduction of approximately 21.3%[62] Cash and Liquidity - Total cash on hand and availability under the credit facility was $22.8 million as of December 31, 2023, down from $40.1 million at the end of Q4 2022[3] - As of December 31, 2023, Broadwind had $22.8 million in available cash and liquidity, with a net leverage of 0.8x, well within the target range of at or below 2.0x[29] - The company has eliminated nearly all planned discretionary capital spending for 2024 to optimize liquidity during a transitional period[29] Future Outlook - Financial guidance for Q1 2024 anticipates performance to be weighted toward the second half of 2024 due to expected demand acceleration[19] - Financial guidance for Q1 2024 includes total revenue expectations ranging from $34.0 million to $38.0 million and adjusted EBITDA between $1.0 million and $2.0 million[32] - Broadwind anticipates that domestic onshore wind development activity will gradually accelerate beginning in the second half of 2024, despite current economic challenges[42] Operational Efficiency - The company continues to focus on organic sales growth through new contract wins and increased demand for its proprietary Pressure Reducing System technology[28] - Broadwind's operational efficiency improvements have been consistent with an ongoing focus on sustained operational excellence[28] Yearly Performance - The company’s total revenues for the twelve months ended December 31, 2023, reached $203,477,000, up from $176,759,000 in 2022, indicating an annual growth of about 15.1%[59] - Total revenues increased to $46,598,000 in Q4 2023, up from $40,060,000 in Q4 2022, reflecting a growth of about 38.1%[59] - Adjusted EBITDA (Non-GAAP) for Q4 2023 was $4,436,000, a significant increase from $184,000 in Q4 2022, indicating a growth of over 2300%[60] - Net income for Q4 2023 was $1,072,000, compared to a net loss of $2,851,000 in Q4 2022, marking a turnaround of approximately $3,923,000[60] - Total gross margin increased by more than 870 basis points year-over-year to 15.1%, while non-GAAP adjusted EBITDA margin rose by over 900 basis points to 9.5%[27]