Broadwind Energy (BWEN) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $6.33 million, or $ 0.42 a share in the quarter, against a net loss of $0.38 million, or $0.03 a share in the last year period. Revenue during the quarter grew 19.90 percent to $56.06 million from $46.76 million in the previous year period. Gross margin for the quarter expanded 290 basis points over the previous year period to 11.37 percent. Operating margin for the quarter period stood at positive 2.86 percent as compared to a negative 0.48 percent for the previous year period.
Operating income for the quarter was $1.60 million, compared with an operating loss of $0.22 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.93 million compared with $1.70 million in the prior year period. At the same time, adjusted EBITDA margin improved 336 basis points in the quarter to 7 percent from 3.64 percent in the last year period.
Broadwind chief executive officer Stephanie Kushner stated, "Broadwind started the year strong. Revenue was up 20% and we doubled our EBITDA margin to 7% from last year. Our team members focus on continuous operational improvement and stringent cost reduction is reflected in our financial performance. Towers results exceeded our plan, as we operated at full capacity to meet aggressive customer delivery schedules, while successfully converting to a new tower model in the Abilene plant.
Operating cash flow turns negativeBroadwind Energy has spent $8.07 million cash to meet operating activities during the quarter as against cash inflow of $3.89 million in the last year period. The company has spent $16.75 million cash to meet investing activities during the quarter as against cash outgo of $0.32 million in the last year period.
Cash flow from financing activities was $6.27 million for the quarter as against cash outgo of $0.34 million in the last year period.
Cash and cash equivalents stood at $0.26 million as on Mar. 31, 2017, down 97.38 percent or $9.50 million from $9.75 million on Mar. 31, 2016.
Working capital drops significantly
Broadwind Energy has witnessed a decline in the working capital over the last year. It stood at $3.43 million as at Mar. 31, 2017, down 78.29 percent or $12.38 million from $15.81 million on Mar. 31, 2016. Current ratio was at 1.07 as on Mar. 31, 2017, down from 1.45 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 20 days for the quarter from 36 days for the last year period. Days sales outstanding went up to 27 days for the quarter compared with 22 days for the same period last year.
Days inventory outstanding has decreased to 23 days for the quarter compared with 46 days for the previous year period. At the same time, days payable outstanding went down to 30 days for the quarter from 31 for the same period last year.
Debt increases substantially
Broadwind Energy has witnessed an increase in total debt over the last one year. It stood at $10.48 million as on Mar. 31, 2017, up 89.89 percent or $4.96 million from $5.52 million on Mar. 31, 2016. Total debt was 7.96 percent of total assets as on Mar. 31, 2017, compared with 5.12 percent on Mar. 31, 2016. Debt to equity ratio was at 0.14 as on Mar. 31, 2017, up from 0.08 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
