Broadwind Energy Inc (BWEN) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $0.30 million, or $ 0.02 a share in the quarter, against a net loss of $10.79 million, or $0.73 a share in the last year period. Revenue during the quarter grew 28.15 percent to $48.15 million from $37.57 million in the previous year period. Gross margin for the quarter period stood at positive 9.77 percent as compared to a negative 16.52 percent for the previous year period. Operating margin for the quarter period stood at positive 1.23 percent as compared to a negative 29.34 percent for the previous year period.
Operating income for the quarter was $0.59 million, compared with an operating loss of $11.02 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.51 million compared to negative $8.06 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 5.22 percent for the quarter compared to negative 21.46 percent in the last year period.
Broadwind chief executive officer Stephanie Kushner stated, “Broadwind had a solid fourth quarter, culminating in our first profitable year. We exceeded our targets for every metric that we set at the beginning of the year. Orders in 2016 totaled $275 million, nearly triple the orders in 2015. We removed $9 million from manufacturing overhead and operating expenses in 2016, which was $1 million more than our target. Our tower production was on schedule in both plants, and productivity in our Abilene plant improved dramatically during 2016, ending the year at a record level with record low overtime. This is a reflection of the process improvements we made throughout the year and the strong team we have in place. Our Gearing segment managed well through a challenging year. On 30% lower sales, we were able to cut the segment’s operating loss by $5 million and generate positive net cash flow.”
Operating cash flow turns positive
Broadwind Energy Inc has generated cash of $18.03 million from operating activities during the year as against cash outgo of $10.84 million in the last year. The company has spent $2.55 million cash to meet investing activities during the year as against cash inflow of $3.08 million in the last year. It has incurred net capital expenditure of $6.17 million on net basis during the year, up 277.95 percent or $4.54 million from year ago.
The company has spent $3.26 million cash to carry out financing activities during the year as against cash inflow of $2.05 million in the last year period.
Cash and cash equivalents stood at $18.70 million as on Dec. 31, 2016, up 190.54 percent or $12.26 million from $6.44 million on Dec. 31, 2015.
Working capital declines
Broadwind Energy Inc has witnessed a decline in the working capital over the last year. It stood at $14.94 million as at Dec. 31, 2016, down 5.92 percent or $0.94 million from $15.88 million on Dec. 31, 2015. Current ratio was at 1.35 as on Dec. 31, 2016, down from 1.43 on Dec. 31, 2015.
Debt comes down significantly
Broadwind Energy Inc has recorded a decline in total debt over the last one year. It stood at $4.10 million as on Dec. 31, 2016, down 29.82 percent or $1.74 million from $5.85 million on Dec. 31, 2015. Total debt was 3.49 percent of total assets as on Dec. 31, 2016, compared with 5.32 percent on Dec. 31, 2015. Debt to equity ratio was at 0.06 as on Dec. 31, 2016, down from 0.09 as on Dec. 31, 2015.
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