Broadwind Announces Fourth Quarter and Full-Year 2023 Results
CICERO, Ill., March 05, 2024 (GLOBE NEWSWIRE) — Broadwind (Nasdaq: BWEN, or the “Company”), a diversified precision manufacturer of specialized components and solutions serving global markets, today announced results for the fourth quarter and full-year 2023.
FOURTH QUARTER 2023 RESULTS
(As compared to the fourth quarter 2022)
- Total revenue of $46.6 million, +16.3% y/y
- Total gross profit of $7.0 million, +$4.5 million y/y
- Net income of $1.1 million, or $0.05 per diluted share
- Total non-GAAP adjusted EBITDA of $4.4 million, +$4.3 million y/y
- Total tower sections sold +37.5% y/y to 132 sections
- Ratio of net debt to trailing twelve-month non-GAAP adjusted EBITDA of 0.8x as of December 31, 2023
FULL-YEAR 2023 RESULTS
(As compared to the full-year 2022)
- Total revenue of $203.5 million, +15.1% y/y
- Total gross profit of $32.5 million, +203.5% y/y
- Net income of $7.6 million, or $0.36 per diluted share
- Total non-GAAP adjusted EBITDA of $21.5 million, +$19.0 million y/y
For the three months ended December 31, 2023, Broadwind reported total revenue of $46.6 million, an increase of 16.3% when compared to the prior year period. The Company reported net income of $1.1 million, or $0.05 per diluted share in the fourth quarter 2023, compared to a net loss ($2.9) million, or ($0.14) per basic share, in the fourth quarter 2022. The Company reported adjusted EBITDA, a non-GAAP measure, of $4.4 million in the fourth quarter 2023, compared to $0.2 million in the prior-year period. For a reconciliation of GAAP to non-GAAP metrics, please see the appendix of this release.
Fourth quarter results benefited from a combination of broad-based demand growth within both the Heavy Fabrications and Industrial Solutions segments, continued price discipline, and operational rigor, culminating in improved operating leverage and profitability, when compared to the year-ago period. Fourth quarter results reflect the positive impact of increased tower utilization and benefits derived from advanced manufacturing production credits associated with the Inflation Reduction Act (“IRA”). Total gross margin increased more than 870 basis points on a year-over-year basis to 15.1%, while non-GAAP adjusted EBITDA margin increased more than 900 basis points to 9.5% in the fourth quarter 2023.
Fourth quarter orders increased 27% on a sequential basis, as compared to the third quarter 2023, but declined as compared to the near-record order levels achieved in the prior-year period that was attributable to a large tower order with a global wind turbine manufacturer. Total backlog was $183.1 million as of December 31, 2023, as compared to $297.2 million in the year-ago period.
As of December 31, 2023, Broadwind had total cash on hand and availability under the Company’s credit facility of $22.8 million, down from $40.1 million at the end of the fourth quarter 2022.
MANAGEMENT COMMENTARY
“Broadwind delivered strong full-year results highlighted by record margin realization, net income and adjusted EBITDA,” stated Eric Blashford, President and CEO of Broadwind. “While 2023 was a transitional period for domestic onshore wind development, we continued to drive organic sales growth within our core industrials, mining and energy markets through a combination of new contract wins, together with increased customer demand for our proprietary Pressure Reducing System (“PRS”) technology. As we’ve built momentum through our commercial strategy, our team has also continued to drive improved productivity and cost efficiency throughout the organization, consistent with an ongoing focus on sustained operational excellence.”
“During the fourth quarter, our revenue, operating income and profitability all increased meaningfully above prior-year levels, driven by a combination of increased sales of tower sections, together with solid demand across our diverse markets,” continued Blashford. “While orders and backlog declined from near-record levels in the prior year period, order rates increased on a sequential basis across all three reporting segments.”
“Domestic onshore wind development activity is expected to gradually accelerate beginning in the second half of 2024,” noted Blashford. “Even still, a higher interest rate environment and raw materials inflation have impacted project economics for some developers, leading them to temporarily delay or defer the timing of their investments. In the interim, we have aligned our cost structure to reflect a period of lower production volumes at our tower facilities, while repurposing capacity toward non-wind demand across our diverse end markets. We remain highly constructive on the long-term economics of wind, particularly with the decade-long tax credit visibility afforded by the IRA, of which Broadwind remains a key beneficiary.”
“At year-end 2023, we had $22.8 million of available cash and liquidity to support our operations,” continued Blashford. “Looking to 2024, we have eliminated nearly all planned discretionary capital spending as we seek to optimize liquidity during a transitional period. As of December 31, 2023, our net leverage was 0.8x, well within our target range of at or below 2.0x.”
“Today, we introduced financial guidance for the first quarter 2024,” concluded Blashford. “Further to our expectations around the pace of wind-related tower demand, we anticipate our full-year performance will be weighted toward the second half of 2024, given discussions with our customers. As demand conditions accelerate, we remain well-positioned to drive improved operating leverage, while positioning the Company to further capitalize on 45x tax credit provided for within the IRA.”
SEGMENT RESULTS
Heavy Fabrications Segment
Broadwind provides large, complex and precision fabrications, and proprietary industrial processing equipment, to customers in a broad range of industrial markets. Key products include wind towers, compressed natural gas pressure reducing systems and industrial fabrications, including mining and material handling components and other frames/structures.
Heavy Fabrications segment sales increased by 24.4% to $29.5 million in the fourth quarter 2023, as compared to the prior-year period, primarily driven by a 37.5% increase in towers sections sold. The segment reported operating income of $2.6 million in the fourth quarter of 2023, as compared to an operating loss of ($1.0) million in the prior year period. Segment non-GAAP adjusted EBITDA was $3.7 million in the fourth quarter 2023, as compared to $0.3 million in the prior-year period.
Gearing Segment
Broadwind provides custom gearboxes, loose gearing and heat treat services to a broad set of customers in diverse markets, including oil & gas production, surface and underground mining, wind energy, steel, material handling and other infrastructure markets.
Gearing segment sales declined by 5.4% to $11.1 million in the fourth quarter 2023, as compared to the prior year period, as steel and industrial sector sales were offset by lower mining and energy sector activity. The segment reported operating income of $0.7 million in the fourth quarter 2023, compared to operating income of $0.1 million in the prior year period. The segment reported non-GAAP adjusted EBITDA of $1.3 million in the fourth quarter 2023, versus $0.8 million in the fourth quarter 2022.
Industrial Solutions Segment
Broadwind provides supply chain solutions, light fabrication, inventory management, kitting and assembly services, primarily serving the combined cycle natural gas turbine market as well as other clean technology markets.
Industrial Solutions segment sales increased 29.4% to $6.0 million in the fourth quarter 2023, as compared to the prior year period, primarily driven by increased demand for new and aftermarket gas turbine content. The segment reported operating income of $0.8 million in the fourth quarter 2023, compared to operating income of $0.5 million in the prior year period. The segment reported non-GAAP adjusted EBITDA of $1.0 million in the fourth quarter 2023, versus $0.7 million in the prior year period.
FINANCIAL GUIDANCE
Today, Broadwind introduced financial guidance for the first quarter 2024. The following financial guidance reflects the Company’s current expectations and beliefs. All guidance is current as of the time provided and is subject to change.
| First Quarter 2024 | ||||||
| $ in Millions | Low | Mid | High | |||
| Total Revenue | $34.0 | $36.0 | $38.0 | |||
| Adjusted EBITDA | $1.0 | $1.5 | $2.0 | |||
FOURTH QUARTER AND FULL-YEAR 2023 RESULTS CONFERENCE CALL
Broadwind will host a conference call today, March 5, 2024 at 12:00 p.m. ET to review the Company’s financial results, discuss recent events and conduct a question-and-answer session.
A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of the Company’s corporate website at https://investors.bwen.com/investors. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download, and install any necessary audio software.
To participate in the live teleconference:
Live Teleconference: 877-407-9716
To listen to a replay of the teleconference, which will be available through March 12, 2024:
Teleconference Replay: 844-512-2921
Conference ID: 13743770
ABOUT BROADWIND
Broadwind (NASDAQ: BWEN) is a precision manufacturer of structures, equipment and components for clean tech and other specialized applications. With facilities throughout the U.S., our talented team is committed to helping customers maximize performance of their investments—quicker, easier and smarter. Find out more at www.bwen.com
NON-GAAP FINANCIAL MEASURES
The Company provides non-GAAP adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, share-based compensation and other stock payments, restructuring costs, impairment charges, proxy contest-related expenses and other non-cash gains and losses) as supplemental information regarding the Company’s business performance. The Company’s management uses this supplemental information when it internally evaluates its performance, reviews financial trends and makes operating and strategic decisions. The Company believes that this non-GAAP financial measure is useful to investors because it provides investors with a better understanding of the Company’s past financial performance and future results, which allows investors to evaluate the Company’s performance using the same methodology and information as used by the Company’s management. The Company’s definition of adjusted EBITDA may be different from similar non-GAAP financial measures used by other companies and/or analysts.
FORWARD-LOOKING STATEMENTS
This release contains “forward-looking statements”—that is, statements related to future, not past, events— as defined in Section 21E of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”), that reflect our current expectations regarding our future growth, results of operations, financial condition, cash flows, performance, business prospects and opportunities, as well as assumptions made by, and information currently available to, our management. We have tried to identify forward looking statements by using words such as “anticipate,” “believe,” “expect,” “intend,” “will,” “should,” “may,” “plan” and similar expressions, but these words are not the exclusive means of identifying forward looking statements. Forward-looking statements include any statement that does not directly relate to a current or historical fact. Our forward-looking statements may include or relate to our beliefs, expectations, plans and/or assumptions with respect to the following: (i) our expectations and beliefs with respect to our financial guidance as set forth in this release; (ii) the impact of global health concerns on the economies and financial markets and the demand for our products; (iii) state, local and federal regulatory frameworks affecting the industries in which we compete, including the wind energy industry, and the related extension, continuation or renewal of federal tax incentives and grants, including the advanced manufacturing tax credits (which remain subject to further technical guidance and regulations), and state renewable portfolio standards as well as new or continuing tariffs on steel or other products imported into the United States; (iv) our customer relationships and our substantial dependency on a few significant customers and our efforts to diversify our customer base and sector focus and leverage relationships across business units; (v) our ability to operate our business efficiently, comply with our debt obligations, manage capital expenditures and costs effectively, and generate cash flow; (vi) the economic and operational stability of our significant customers and suppliers, including their respective supply chains, and the ability to source alternative suppliers as necessary; (vii) our ability to continue to grow our business organically and through acquisitions; (viii) the production, sales, collections, customer deposits and revenues generated by new customer orders and our ability to realize the resulting cash flows; (ix) information technology failures, network disruptions, cybersecurity attacks or breaches in data security; (x) the sufficiency of our liquidity and alternate sources of funding, if necessary; (xi) our ability to realize revenue from customer orders and backlog (including our ability to finalize the terms of the remaining obligations under a supply agreement with a leading global wind turbine manufacturer); (xii) the economy and the potential impact it may have on our business, including our customers; (xiii) the state of the wind energy market and other energy and industrial markets generally, including the availability of tax credits, and the impact of competition and economic volatility in those markets; (xiv) the effects of market disruptions and regular market volatility, including fluctuations in the price of oil, gas and other commodities; (xv) competition from new or existing industry participants including, in particular, increased competition from foreign tower manufacturers; (xvi) the effects of the change of administrations in the U.S. federal government; (xvii) our ability to successfully integrate and operate acquired companies and to identify, negotiate and execute future acquisitions; (xviii) the potential loss of tax benefits if we experience an “ownership change” under Section 382 of the Internal Revenue Code of 1986, as amended; (xix) the limited trading market for our securities and the volatility of market price for our securities; (xx) our outstanding indebtedness and its impact on our business activities (including our ability to incur additional debt in the future); and (xxi) the impact of future sales of our common stock or securities convertible into our common stock on our stock price. These statements are based on information currently available to us and are subject to various risks, uncertainties and other factors that could cause our actual growth, results of operations, financial condition, cash flows, performance, business prospects and opportunities to differ materially from those expressed in, or implied by, these statements including, but not limited to, those set forth under the caption “Risk Factors” in Part I, Item 1A of our most recently filed Form 10-K and other filings with the Securities and Exchange Commission. We are under no duty to update any of these statements. You should not consider any list of such factors to be an exhaustive statement of all of the risks, uncertainties or other factors that could cause our current beliefs, expectations, plans and/or assumptions to change. Accordingly, forward-looking statements should not be relied upon as a predictor of actual results.
| BROADWIND, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE DATA) | ||||||||
| December 31, | December 31, | |||||||
| 2023 | 2022 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash | $ | 1,099 | $ | 12,732 | ||||
| Accounts receivable, net | 19,231 | 17,018 | ||||||
| AMP credit receivable | 7,051 | – | ||||||
| Contract assets | 1,460 | 1,955 | ||||||
| Inventories | 37,405 | 44,262 | ||||||
| Prepaid expenses and other current assets | 3,500 | 3,291 | ||||||
| Total current assets | 69,746 | 79,258 | ||||||
| LONG-TERM ASSETS: | ||||||||
| Property and equipment, net | 47,123 | 45,319 | ||||||
| Operating lease right-of-use assets, net | 15,593 | 16,396 | ||||||
| Intangible assets, net | 2,064 | 2,728 | ||||||
| Other assets | 630 | 839 | ||||||
| TOTAL ASSETS | $ | 135,156 | $ | 144,540 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Line of credit and current maturities of long-term debt | $ | 5,903 | $ | 1,170 | ||||
| Current portion of finance lease obligations | 2,153 | 2,008 | ||||||
| Current portion of operating lease obligations | 1,851 | 1,882 | ||||||
| Accounts payable | 20,728 | 26,255 | ||||||
| Accrued liabilities | 6,477 | 4,313 | ||||||
| Customer deposits | 16,500 | 34,550 | ||||||
| Total current liabilities | 53,612 | 70,178 | ||||||
| LONG-TERM LIABILITIES: | ||||||||
| Long-term debt, net of current maturities | 6,250 | 7,141 | ||||||
| Long-term finance lease obligations, net of current portion | 3,372 | 4,226 | ||||||
| Long-term operating lease obligations, net of current portion | 15,888 | 16,696 | ||||||
| Other | 15 | 26 | ||||||
| Total long-term liabilities | 25,525 | 28,089 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| STOCKHOLDERS’ EQUITY: | ||||||||
| Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued or outstanding | – | – | ||||||
| Common stock, $0.001 par value; 30,000,000 shares authorized; 21,840,301 and 21,127,130 shares issued as of December 31, 2023 and December 31, 2022, respectively | 22 | 21 | ||||||
| Treasury stock, at cost, 273,937 shares as of December 31, 2023 and December 31, 2022, respectively | (1,842 | ) | (1,842 | ) | ||||
| Additional paid-in capital | 399,336 | 397,240 | ||||||
| Accumulated deficit | (341,497 | ) | (349,146 | ) | ||||
| Total stockholders’ equity | 56,019 | 46,273 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 135,156 | $ | 144,540 | ||||
| BROADWIND, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenues | $ | 46,598 | $ | 40,060 | $ | 203,477 | $ | 176,759 | ||||||||
| Cost of sales | 39,566 | 37,504 | 170,969 | 166,049 | ||||||||||||
| Gross profit | 7,032 | 2,556 | 32,508 | 10,710 | ||||||||||||
| OPERATING EXPENSES: | ||||||||||||||||
| Selling, general and administrative | 4,592 | 4,483 | 20,705 | 16,592 | ||||||||||||
| Intangible amortization | 166 | 175 | 664 | 725 | ||||||||||||
| Total operating expenses | 4,758 | 4,658 | 21,369 | 17,317 | ||||||||||||
| Operating income (loss) | 2,274 | (2,102 | ) | 11,139 | (6,607 | ) | ||||||||||
| OTHER EXPENSE, net: | ||||||||||||||||
| Interest expense, net | (1,030 | ) | (863 | ) | (3,201 | ) | (3,218 | ) | ||||||||
| Other, net | (11 | ) | 113 | (48 | ) | 130 | ||||||||||
| Total other expense, net | (1,041 | ) | (750 | ) | (3,249 | ) | (3,088 | ) | ||||||||
| Net income (loss) before provision for income taxes | 1,233 | (2,852 | ) | 7,890 | (9,695 | ) | ||||||||||
| Provision (benefit) for income taxes | 162 | (1 | ) | 241 | 35 | |||||||||||
| NET INCOME (LOSS) | $ | 1,071 | $ | (2,851 | ) | $ | 7,649 | $ | (9,730 | ) | ||||||
| NET INCOME (LOSS) PER COMMON SHARE – BASIC: | ||||||||||||||||
| Net income (loss) | $ | 0.05 | $ | (0.14 | ) | $ | 0.36 | $ | (0.48 | ) | ||||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING – BASIC | 21,449 | 20,723 | 21,189 | 20,299 | ||||||||||||
| NET INCOME (LOSS) PER COMMON SHARE – DILUTED: | ||||||||||||||||
| Net income (loss) | $ | 0.05 | $ | (0.14 | ) | $ | 0.36 | $ | (0.48 | ) | ||||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING – DILUTED | 21,633 | 20,723 | 21,491 | 20,299 | ||||||||||||
| BROADWIND, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) (UNAUDITED) | ||||||
| Twelve Months Ended December 31, | ||||||
| 2023 | 2022 | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
| Net income (loss) | $ | 7,649 | $ | (9,730 | ) | |
| Adjustments to reconcile net cash (used in) provided by operating activities: | ||||||
| Depreciation and amortization expense | 6,383 | 6,060 | ||||
| Deferred income taxes | (10 | ) | (13 | ) | ||
| Change in fair value of interest rate swap agreements | – | (27 | ) | |||
| Share-based compensation | 877 | 944 | ||||
| Allowance for doubtful accounts | 82 | (30 | ) | |||
| Common stock issued under defined contribution 401(k) plan | 1,336 | 1,244 | ||||
| Loss on disposal of assets | 42 | 3 | ||||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable | (2,295 | ) | (3,186 | ) | ||
| AMP credit receivable | (7,051 | ) | – | |||
| Employee retention credit receivable | – | 497 | ||||
| Contract assets | 495 | (820 | ) | |||
| Inventories | 6,857 | (10,885 | ) | |||
| Prepaid expenses and other current assets | (210 | ) | (629 | ) | ||
| Accounts payable | (6,008 | ) | 9,926 | |||
| Accrued liabilities | 2,782 | 686 | ||||
| Customer deposits | (18,050 | ) | 22,468 | |||
| Other non-current assets and liabilities | 175 | 135 | ||||
| Net cash (used in) provided by operating activities | (6,946 | ) | 16,643 | |||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
| Purchases of property and equipment | (6,405 | ) | (3,098 | ) | ||
| Proceeds from disposals of property and equipment | 21 | – | ||||
| Net cash used in investing activities | (6,384 | ) | (3,098 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
| Proceeds from (payments on) from line of credit, net | 4,705 | (6,368 | ) | |||
| Payments for deferred financing costs | (48 | ) | (452 | ) | ||
| Proceeds from long-term debt | 1,056 | 8,113 | ||||
| Payments on long-term debt | (1,872 | ) | (863 | ) | ||
| Principal payments on finance leases | (1,409 | ) | (1,776 | ) | ||
| Shares withheld for taxes in connection with issuance of restricted stock | (735 | ) | (549 | ) | ||
| Proceeds from sale of common stock, net | – | 230 | ||||
| Net cash provided by (used in) financing activities | 1,697 | (1,665 | ) | |||
| – | ||||||
| NET (DECREASE) INCREASE IN CASH | (11,633 | ) | 11,880 | |||
| CASH beginning of the period | 12,732 | 852 | ||||
| CASH end of the period | $ | 1,099 | $ | 12,732 | ||
| Supplemental cash flow information: | ||||||
| Interest paid | $ | 2,073 | $ | 1,638 | ||
| Income taxes paid | $ | 17 | $ | 23 | ||
| Non-cash investing and financing activities: | ||||||
| Equipment additions via finance lease | $ | 719 | $ | 3,882 | ||
| Non-cash purchases of property and equipment | $ | 482 | $ | 134 | ||
| Settlement of incentive compensation liability with stock | $ | 619 | $ | – | ||
| BROADWIND, INC. AND SUBSIDIARIES SELECTED SEGMENT FINANCIAL INFORMATION (IN THOUSANDS) (UNAUDITED) | |||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| December 31, | December 31, | ||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||
| ORDERS: | |||||||||||||||||
| Heavy Fabrications | $ | 9,985 | $ | 184,075 | $ | 50,594 | $ | 294,097 | |||||||||
| Gearing | 3,603 | 15,071 | 24,814 | 53,597 | |||||||||||||
| Industrial Solutions | 6,619 | 5,685 | 25,652 | 20,333 | |||||||||||||
| Total orders | $ | 20,207 | $ | 204,831 | $ | 101,060 | $ | 368,027 | |||||||||
| REVENUES: | |||||||||||||||||
| Heavy Fabrications | $ | 29,503 | $ | 23,720 | $ | 133,368 | $ | 117,206 | |||||||||
| Gearing | 11,061 | 11,697 | 45,408 | 42,588 | |||||||||||||
| Industrial Solutions | 6,035 | 4,663 | 25,159 | 17,804 | |||||||||||||
| Corporate and Other | (1 | ) | (20 | ) | (458 | ) | (839 | ) | |||||||||
| Total revenues | $ | 46,598 | $ | 40,060 | $ | 203,477 | $ | 176,759 | |||||||||
| OPERATING PROFIT/(LOSS): | |||||||||||||||||
| Heavy Fabrications | $ | 2,554 | $ | (1,032 | ) | $ | 15,006 | $ | (1,044 | ) | |||||||
| Gearing | 654 | 116 | 1,846 | 43 | |||||||||||||
| Industrial Solutions | 848 | 487 | 3,160 | 120 | |||||||||||||
| Corporate and Other | (1,782 | ) | (1,673 | ) | (8,873 | ) | (5,726 | ) | |||||||||
| Total operating profit (loss) | $ | 2,274 | $ | (2,102 | ) | $ | 11,139 | $ | (6,607 | ) | |||||||
| BROADWIND, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (IN THOUSANDS) (UNAUDITED) | |||||||||||||
| Consolidated | Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||
| Net Income (Loss) | $ | 1,072 | $ | (2,851 | ) | $ | 7,649 | $ | (9,730 | ) | |||
| Interest Expense | 1,031 | 863 | 3,201 | 3,218 | |||||||||
| Income Tax Provision (Benefit) | 162 | (1 | ) | 241 | 35 | ||||||||
| Depreciation and Amortization | 1,611 | 1,478 | 6,383 | 6,060 | |||||||||
| Share-based Compensation and Other Stock Payments | 559 | 695 | 2,220 | 2,861 | |||||||||
| Proxy Contest-Related Expenses | 1 | – | 1,780 | – | |||||||||
| Adjusted EBITDA (Non-GAAP) | $ | 4,436 | $ | 184 | $ | 21,474 | $ | 2,444 | |||||
| Heavy Fabrications Segment | Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||
| Net Income (Loss) | $ | 1,696 | $ | (926 | ) | $ | 13,862 | $ | (1,935 | ) | |||
| Interest Expense | 149 | 338 | 649 | 1,585 | |||||||||
| Income Tax Provision (Benefit) | 711 | (330 | ) | 493 | (579 | ) | |||||||
| Depreciation | 907 | 852 | 3,518 | 3,446 | |||||||||
| Share-based Compensation and Other Stock Payments | 224 | 331 | 936 | 1,028 | |||||||||
| Adjusted EBITDA (Non-GAAP) | $ | 3,687 | $ | 265 | $ | 19,458 | $ | 3,545 | |||||
| Gearing Segment | Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||
| Net Income (Loss) | $ | 585 | $ | (5 | ) | $ | 1,553 | $ | (190 | ) | |||
| Interest Expense | 59 | 117 | 262 | 249 | |||||||||
| Income Tax Provision | 9 | 4 | 32 | 7 | |||||||||
| Depreciation and Amortization | 555 | 471 | 2,270 | 1,978 | |||||||||
| Share-based Compensation and Other Stock Payments | 107 | 192 | 453 | 589 | |||||||||
| Adjusted EBITDA (Non-GAAP) | $ | 1,315 | $ | 779 | $ | 4,570 | $ | 2,633 | |||||
| Industrial Solutions Segment | Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||
| Net Income (Loss) | $ | 625 | $ | 410 | $ | 2,504 | $ | (130 | ) | ||||
| Interest Expense | 151 | 74 | 512 | 221 | |||||||||
| Income Tax Provision | 62 | 1 | 96 | 22 | |||||||||
| Depreciation and Amortization | 99 | 98 | 380 | 397 | |||||||||
| Share-based Compensation and Other Stock Payments | 48 | 112 | 196 | 295 | |||||||||
| Adjusted EBITDA (Non-GAAP) | $ | 985 | $ | 695 | $ | 3,688 | $ | 805 | |||||
| Corporate and Other | Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Net Loss | $ | (1,834 | ) | $ | (2,330 | ) | $ | (10,270 | ) | $ | (7,475 | ) | |||
| Interest Expense | 672 | 334 | 1,778 | 1,163 | |||||||||||
| Income Tax (Benefit) Provision | (620 | ) | 324 | (380 | ) | 585 | |||||||||
| Depreciation and Amortization | 50 | 57 | 215 | 239 | |||||||||||
| Share-based Compensation and Other Stock Payments | 180 | 60 | 635 | 949 | |||||||||||
| Proxy Contest-Related Expenses | 1 | – | 1,780 | – | |||||||||||
| Adjusted EBITDA (Non-GAAP) | $ | (1,551 | ) | $ | (1,555 | ) | $ | (6,242 | ) | $ | (4,539 | ) | |||
CONTACT: IR CONTACT Noel Ryan, IRC BWEN@val-adv.com
