NAPERVILLE, Ill., Nov. 17 /PRNewswire-FirstCall/ -- Broadwind Energy, Inc.
(OTC Bulletin Board: BWEN), a leading provider of components, logistics and
services to the wind power and broader energy markets, today reported their
results for the quarter and nine-month periods ended September 30, 2008.
Quarterly revenues were $64.5 million, up from $40.8 million in the second
quarter of fiscal 2008 and up from $3.1 million in the third quarter of 2007.
The Company reported a net loss of $3.4 million, or ($0.04) per diluted
share, in the third quarter of 2008, compared with net income of $683,000, or
$0.01 per diluted share, in the same period in 2007. For the nine-month
period ended September 30, 2008, the Company reported a net loss of $8.9
million, or ($0.10) per diluted share, compared to net income of $1.3 million,
or $0.03 per diluted share, in the first nine months of 2007. Production
ramp-up expenses, integration-related costs from acquisitions, and continued
efforts to build the infrastructure necessary for public company and
regulatory compliance, including Sarbanes-Oxley, contributed to the loss in
the third quarter and year-to-date results.
The Company generated Earnings Before Interest, Taxes, Depreciation,
Amortization and Stock-Based Compensation (EBITDAS) of $3.1 million for the
third quarter 2008 and $10.6 million for the first nine months of 2008. For a
summary of financial results and an explanation and reconciliation of EBITDAS
to net income, please see the table below.
'Our third quarter and nine-month results reflect our continued progress
toward building Broadwind into the premier component and service provider in
the North American wind energy industry,' said Broadwind CEO J. Cameron
Drecoll. 'We have invested significantly in our infrastructure, through both
hiring and training of new employees as well as the expansion of our
state-of-the-art manufacturing capabilities. Looking ahead, we remain focused
on growing operational efficiencies throughout our subsidiaries and leveraging
our broad strengths and diverse, but complementary, product lines to further
increase our market share.'
'Our strategy to integrate the supply chain for wind power now spans from
component manufacturing to transportation, installation and service, giving us
the broadest portfolio and customer base in the wind energy market,' Drecoll
added.
During the third quarter, Broadwind also announced several key additions
to the executive team, and added key management in operating platform
leadership positions. In addition to its top-line growth, on the balance
sheet Broadwind reported an available cash balance of $34.4 million and total
debt outstanding of $36.3 million as of September 30, 2008.
Broadwind also announced it has hired Morgan Stanley & Co. Incorporated to
advise the Company on certain acquisition, growth, and financing
opportunities. Morgan Stanley will also advise the Company on issues related
to the Schedule 13D filing by its largest shareholder, Tontine Partners, L.P.
Tontine recently indicated its intent to explore alternatives for the
disposition of its ownership position in Broadwind in an orderly fashion and
with no intended timeframe. Tontine currently owns 48.7% of the total
outstanding shares of Broadwind common stock.
'As a ground-floor investor in Broadwind, Tontine has provided both
financial support and leadership expertise to our Company,' said Chief
Financial Officer Matt Gadow. 'However, Tontine has expressed their desire to
explore alternatives for the disposition of their ownership stake in Broadwind
in an orderly manner. We view this as an indication of the extraordinary
market dislocation that Tontine has recently experienced.
