(Source: PRNewswire-FirstCall)
NAPERVILLE, Ill., Aug. 10 /PRNewswire-FirstCall/ -- Broadwind Energy, Inc. , a leading provider of components, logistics and services to the wind power and broader energy markets, today reported results for the quarter ended June 30, 2009, highlighted by a 28% increase in revenues to $52.3 million, compared to revenues of $40.8 million for the second quarter of 2008. Broadwind attributed the gains to increased wind tower revenues and increases in service and transportation contracts completed in the quarter.
The Company reported a net loss of $5.4 million or ($0.06) per basic and diluted share in the second quarter of 2009, compared to a net loss of $2.0 million or ($0.02) per basic and diluted share, in the prior year. The increased net loss was attributed to higher operating costs associated with additional facility capacity, production ramp-up costs at a new facility in Abilene, Texas and higher selling general and administrative costs, partially offset by a one-time gain of $5.0 million associated with the settlement of a post closing escrow relating to a previous acquisition.
The Company generated Earnings Before Interest, Taxes, Depreciation, Amortization and Stock-Based Compensation (EBITDAS) of $2.7 million for the second quarter of 2009 versus $4.5 million in the second quarter of last year. For a summary of financial results and an explanation and reconciliation of EBITDAS to net loss, please see the table below. Operating cash flow totaled $122,000, up sharply from the prior year quarter $6.4 million use of cash.
"The challenges associated with the ongoing global economic slowdown have resulted in lower customer demand levels and project delays," said Broadwind CEO, J. Cameron Drecoll. "As a result, our operating profits and gross margins have been negatively affected by the decline in production levels, which has created inefficiencies in the cost structures of our operations. Accordingly, the Company has taken initiatives to mitigate these effects through cost cutting measures throughout our operations, increased focus on operating cash flow, headcount rationalization as well as reducing our capital spending, while still attempting to position Broadwind to benefit from the anticipated recovery in the wind market."
Since the onset of the economic downturn the Company has taken steps to mitigate the effects of the decline in production levels through cost cutting measures at all of its operations. The Company also reported that it continues to focus efforts on maintaining adequate liquidity and cash balances for future operating needs for by focusing on cost control, asset management and restructuring existing debt and credit agreements while pursuing new financing arrangements.
While the Company's Products segment continues to be affected by the current economic downturn, its Services segment has continued to grow as a result of an increase in service contracts entered into during the current year and the inclusion of the Badger Transport acquisition in its results of operations. Additional detail regarding the results of operations of the Company's segments is detailed below.
Segment Results Products
Broadwind's Products segment includes wind tower and precision gear manufacturing and heavy steel fabrication. For the second quarter of 2009, the Products segment posted revenues of $39.9 million, compared to $34.0 million in revenues reported in the second quarter of 2008.
