Broadwind Energy, Inc. (BWEN) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $0.87 million, or $ 0.06 a share in the quarter, against a net loss of $7.61 million, or $0.52 a share in the last year period. Revenue during the quarter dropped 14.54 percent to $42.55 million from $49.79 million in the previous year period. Gross margin for the quarter expanded 684 basis points over the previous year period to 12.53 percent. Operating margin for the quarter period stood at positive 3.20 percent as compared to a negative 4.29 percent for the previous year period.
Operating income for the quarter was $1.36 million, compared with an operating loss of $2.14 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.26 million compared with $1.38 million in the prior year period. At the same time, adjusted EBITDA margin improved 488 basis points in the quarter to 7.66 percent from 2.78 percent in the last year period.
Broadwind chief executive officer Stephanie Kushner stated, "Broadwind had a strong third quarter. The investments we’ve made to systematize our production processes have significantly improved the operations and raised productivity and margins in our tower plants. Our Gearing business was cash neutral in a weak revenue environment. Our Company-wide cost management efforts are ahead of plan. Employees at all levels are contributing their ideas to our cost reduction program. It’s exciting to see the creativity of our workforce."
Operating cash flow turns positive
Broadwind Energy, Inc. has generated cash of $17.85 million from operating activities during the nine month period as against cash outgo of $18.21 million in the last year period. The company has spent $12.90 million cash to meet investing activities during the nine month period as against cash inflow of $6.53 million in the last year period It has incurred net capital expenditure of $3.53 million on net basis during the nine month period, up 213.32 percent or $2.40 million from year ago period.
The company has spent $3.29 million cash to carry out financing activities during the nine month period as against cash inflow of $4.28 million in the last year period.
Cash and cash equivalents stood at $8.09 million as on Sep. 30, 2016, up 70.59 percent or $3.35 million from $4.74 million on Sep. 30, 2015.
Working capital drops significantly
Broadwind Energy, Inc. has witnessed a decline in the working capital over the last year. It stood at $16.70 million as at Sep. 30, 2016, down 32.71 percent or $8.12 million from $24.82 million on Sep. 30, 2015. Current ratio was at 1.32 as on Sep. 30, 2016, down from 1.63 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 24 days for the quarter from 77 days for the last year period. Days sales outstanding went up to 39 days for the quarter compared with 36 days for the same period last year.
Days inventory outstanding has decreased to 32 days for the quarter compared with 76 days for the previous year period. At the same time, days payable outstanding went up to 48 days for the quarter from 34 for the same period last year.
Debt comes down significantly
Broadwind Energy, Inc. has recorded a decline in total debt over the last one year. It stood at $3.17 million as on Sep. 30, 2016, down 61.03 percent or $4.97 million from $8.14 million on Sep. 30, 2015. Total debt was 2.52 percent of total assets as on Sep. 30, 2016, compared with 6.59 percent on Sep. 30, 2015. Debt to equity ratio was at 0.05 as on Sep. 30, 2016, down from 0.10 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
