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Broadwind Energy posts lower Q4 earnings as tower build drops YOY

Clean tech manufacturer Broadwind Energy Inc on Feb. 27 reported a fourth-quarter 2017 net loss from continuing operations of $6.9 million, or a loss of 45 cents per share, compared with net income from continuing operations of $420,000, or 3 cents per share, in the same quarter of 2016.

The company booked an adjusted EBITDA loss of $4.0 million in fourth-quarter 2017, missing the expected guidance of $3.5 million to $3.7 million and below the $2.5 million reported in the year-ago period. The drop reflected weaker results from its towers and heavy fabrications segment. That segment experienced an uplift at the end of 2016 when tower build was high to meet terms of the Production Tax Credit, Broadwind said.

Revenues dropped to $17.8 million during the most recent quarter, from $48.2 million in the fourth quarter of 2016.

For the full year, Broadwind Energy recorded 2017 adjusted EBITDA of $2.8 million, compared with adjusted EBITDA of $9.6 million in 2016.

"Despite growth in both the Gearing and Process Systems segments, 2017 was a challenging year due to weak second half tower production, while our major customer rightsized their inventory," Broadwind CEO Stephanie Kushner said in an earnings release. "In response, we took swift action to reduce the workforce accordingly, and to reduce factory overhead and operating expenses."

The company reported a 2017 net loss from continuing operations of $3.2 million, or a loss of 21 cents per share, compared with an income of $1.3 million, or 9 cents per share, in 2016.
Revenues were down year over year to $146.8 million in 2017 from $180.8 million in 2016.

"Following a disappointing 2017, 2018 is off to a brighter start. As our tower order book firms and our gearing and heavy fabrications business accelerates, we expect consolidated Q1 2018 revenue of $28 million-30 million, with an EBITDA loss of about $1 million. Our backlog supports a further rise in revenue in Q2 2018 to approximately $40 million and a return to positive EBITDA generation. We expect to see additional growth in the back half of the year," Kushner said.