Broadwind Inc (BWEN) 2023 Q1 法說會逐字稿

Greetings, and welcome to Broadwind's First Quarter 2023 Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions)

您好，歡迎來到 Broadwind 2023 年第一季度業績電話會議。此時，所有參與者都處於只聽模式。問答環節將在正式介紹之後進行。 （操作員說明）

As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Tom Ciccone. You may begin.

提醒一下，這次會議正在錄製中。我現在想把會議轉交給你的東道主 Tom Ciccone 先生。你可以開始了。

Good morning, and welcome to the Broadwind First Quarter 2023 Results Conference Call. Leading the call today is our CEO, Eric Blashford; and I'm Tom Ciccone, the company's Vice President and Chief Financial Officer. We issued a press release before the market opened today, detailing our first quarter results. I would like to remind you that management's commentary and responses to questions on today's conference call may include forward-looking statements, which, by their nature, are uncertain and outside of the company's control. Although these forward-looking statements are based on management's current expectations and beliefs, actual results may differ materially. For a discussion of some of the factors that could cause actual results to differ, please refer to the Risk Factors section of our latest annual and quarterly filings with the SEC. Additionally, please note that you can find reconciliations of the historical non-GAAP financial measures discussed during our call in the press release issued today. I would like to inform you that Broadwind filed its definitive proxy statement and related proxy materials with the SEC in connection with the 2023 Annual Meeting of Stockholders and in connection therewith, its directors and certain of its executive officers are participants in the solicitation of proxies from our stockholders in connection with such annual meeting. Stockholders of Broadwind are strongly encouraged to read such proxy statement and all other related materials filed with the SEC carefully and in their entirety when they become available as they will contain important information about the 2023 Annual Meeting, including the identity of the participants in the solicitation and their direct or indirect address by security holdings or otherwise.

早上好，歡迎來到 Broadwind 2023 年第一季度業績電話會議。今天主持電話會議的是我們的首席執行官 Eric Blashford；我是公司的副總裁兼首席財務官 Tom Ciccone。我們在今天開市前發布了一份新聞稿，詳細介紹了我們第一季度的業績。我想提醒您，管理層在今天的電話會議上發表的評論和對問題的回答可能包含前瞻性陳述，這些陳述本質上是不確定的，並且不在公司的控制範圍內。儘管這些前瞻性陳述是基於管理層當前的預期和信念，但實際結果可能存在重大差異。有關可能導致實際結果不同的一些因素的討論，請參閱我們向美國證券交易委員會提交的最新年度和季度文件中的風險因素部分。此外，請注意，您可以在今天發布的新聞稿中找到我們電話會議期間討論的歷史非 GAAP 財務指標的對賬。我想通知您，Broadwind 已就 2023 年股東年會向美國證券交易委員會提交了最終委託書和相關委託書材料，與此相關，其董事和某些執行官參與了從我們的股東與此類年度會議有關。強烈建議 Broadwind 的股東在這些委託書和向美國證券交易委員會提交的所有其他相關材料可用時仔細完整地閱讀，因為它們將包含有關 2023 年年會的重要信息，包括邀請參與者的身份以及他們通過證券持有或其他方式的直接或間接地址。

At this time, we will make no further comment on the nominations made by WM Argyle Fund or any matters or discussions related to WM Argyle Fund or its nominations.

目前，我們不會對 WM Argyle Fund 的提名或與 WM Argyle Fund 或其提名相關的任何事項或討論發表進一步評論。

At the conclusion of our prepared remarks, we will open the line for questions. With that, I'll turn the call over to Eric.

在我們準備好的發言結束時，我們將打開提問熱線。有了這個，我會把電話轉給埃里克。

Thanks, Tom, and welcome to those joining us today.

謝謝，湯姆，歡迎今天加入我們的人。

Our first quarter results demonstrate a strong start to the year as sustained demand across diverse end markets, improved margin realization and consistent operational execution contributed to significant year-over-year growth in profitability. The green shoots first evidenced as we exited last year continued into the first quarter. As indications of interest from OEM customers, together with continued stability across our diverse, non-wind markets, have contributed to improved visibility and optimism across our business in 2023 and into 2024. We've recently announced several significant new business winds, including the $175 million in new tower orders followed by a record $8 million order for our proprietary mobile Pressure Reducing Systems, or PRSs, and related accessories in April. These orders reflect positive business momentum within our legacy wind business, together with significant traction within new, higher-margin adjacent markets that leverage the unique intellectual property we are developing here at Broadwind.

我們的第一季度業績表明今年開局強勁，因為不同終端市場的持續需求、利潤實現的改善和一致的運營執行促成了盈利能力的同比顯著增長。我們去年退出時首次出現的綠芽一直持續到第一季度。由於 OEM 客戶表現出興趣，加上我們多樣化的非風能市場的持續穩定，有助於提高我們在 2023 年和 2024 年的業務知名度和樂觀情緒。我們最近宣布了幾個重要的新業務風向，包括新塔訂單價值 1.75 億美元，緊隨其後的是 4 月份我們專有的移動減壓系統 (PRS) 及相關配件的訂單達到創紀錄的 800 萬美元。這些訂單反映了我們傳統風能業務的積極業務勢頭，以及利用我們在 Broadwind 開發的獨特知識產權的新的、利潤率更高的相鄰市場的巨大吸引力。

Importantly, this performance reflects meaningful progress on our strategic plan, which emphasizes profitable growth across a broader spectrum of energy transition and clean tech opportunities. As we further expand our product and service capabilities, we expect to drive improved asset utilization and unit economics consistent with our focus on driving improved margin realization through the cycle. We booked $40 million in orders in the first quarter, down about 25% from the prior year quarter as expected, given the pull forward of the large multi-year tower order we received in December 2022. The timing of these tower orders was partially offset by a more than 100% increase in our industrial fabrications orders, which include of our proprietary PRS product line.

重要的是，這一業績反映了我們戰略計劃取得的重大進展，該計劃強調更廣泛的能源轉型和清潔技術機會的盈利增長。隨著我們進一步擴展我們的產品和服務能力，我們希望推動提高資產利用率和單位經濟效益，這與我們在整個週期中推動提高利潤率實現的重點一致。考慮到我們在 2022 年 12 月收到的多年期大型塔式訂單的提前，我們在第一季度預訂了 4000 萬美元的訂單，與去年同期相比下降了約 25%。這些塔式訂單的時間被部分抵消了我們的工業製造訂單增加了 100% 以上，其中包括我們專有的 PRS 產品線。

Entering the second quarter, we continue to operate on plan both at a commercial and an operational level. Commercially, we are staying disciplined on price as we pass along inflationary cost increases to our customers. We are also negotiating improved contract terms and prudently managing our cash and liquidity to ensure adequate working capital availability as we grow. We're also focusing on expanding our product mix within higher-margin or profitable adjacent markets as reflected by our recent PRS product launches.

進入第二季度，我們繼續在商業和運營層面按計劃運營。在商業上，當我們將通貨膨脹成本增加轉嫁給客戶時，我們在價格上保持紀律。我們還在談判改進合同條款並謹慎管理我們的現金和流動資金，以確保隨著我們的發展有足夠的營運資金可用。正如我們最近推出的 PRS 產品所反映的那樣，我們還專注於在利潤率較高或盈利的鄰近市場擴大我們的產品組合。

Operationally, we continue to deploy lean operating principles across the organization, including continuous improvement projects across all divisions with an emphasis on improved asset utilization. We've continued to focus increasingly on plant and process automation, positioning us to capture improved manufacturing efficiencies. This year, we've led a major retooling and automation of our coatings process at the Abilene plant, which is expected to be fully operational at the end of May 2023. We generated revenue of $49 million in the first quarter, a year-over-year increase of 17%, with each reporting segment posting double-digit gains. We generated $4.1 million of adjusted EBITDA in the quarter, an increase of more than $4 million versus the prior year period, resulting in a return to profitability in the period. Our Heavy Fabrications segment booked Q1 orders of $20 million, down 41% year-over-year as expected, given that we received the $175 million multi-year tower order late last year. We're pleased to see increasing strength in our Industrial Fabrications product line, with orders more than doubling year-over-year. Our gearing orders were $12 million, down 12% year-over-year, led by softening of incoming oil and gas orders, partially offset by increases in orders from the industrial and steel processing sectors. Orders for Industrial Solutions of $7 million continued to be strong, posting a 56% increase year-over-year led by orders for both new gas turbine builds as well as the gas turbine aftermarket.

在運營方面，我們繼續在整個組織部署精益運營原則，包括所有部門的持續改進項目，重點是提高資產利用率。我們繼續越來越關注工廠和過程自動化，使我們能夠提高製造效率。今年，我們領導了 Abilene 工廠的塗層工藝的重大重組和自動化，該工廠預計將於 2023 年 5 月底全面投入運營。我們在第一季度創造了 4900 萬美元的收入，比一年多-年增長 17%，每個報告部門都實現了兩位數的增長。我們在本季度產生了 410 萬美元的調整後 EBITDA，比去年同期增加了超過 400 萬美元，從而在該期間恢復了盈利。我們的重型製造部門在第一季度預訂了 2000 萬美元的訂單，如預期的那樣同比下降 41%，因為我們在去年年底收到了價值 1.75 億美元的多年塔式訂單。我們很高興看到我們的工業製造產品線實力不斷增強，訂單同比增長一倍多。我們的資產負債訂單為 1200 萬美元，同比下降 12%，主要是石油和天然氣訂單疲軟，部分被工業和鋼鐵加工行業的訂單增加所抵消。 700 萬美元的工業解決方案訂單繼續保持強勁勢頭，同比增長 56%，這主要得益於新燃氣輪機製造以及燃氣輪機售後市場的訂單。

Our total backlog at the end of Q1 was $288 million, a 146% increase versus the prior year period. Quoting activity in our non-wind markets remain strong, and we expect good order flow to continue through the balance of this year. Within our Heavy Fabrication segment, Q1 revenue was $32 million, a 16% increase year-over-year, with wind towers and other industrial fabrications posting gains of 12% and 31%, respectively. Importantly, our new proprietary product line, the Broadwind Pressure Reducing System or PRS, which is a vital part of the natural gas virtual pipeline system in North America, continues to perform well, with revenues up 65% year-over-year as we execute our strategy to expand in clean fuels.

我們在第一季度末的總積壓訂單為 2.88 億美元，比去年同期增長 146%。我們非風能市場的報價活動依然強勁，我們預計良好的訂單流將在今年餘下時間繼續。在我們的重型製造部門，第一季度收入為 3200 萬美元，同比增長 16%，風塔和其他工業製造分別增長 12% 和 31%。重要的是，我們新的專有產品線 Broadwind 減壓系統或 PRS 是北美天然氣虛擬管道系統的重要組成部分，繼續表現良好，隨著我們的執行，收入同比增長 65%我們擴大清潔燃料的戰略。

Gearing revenue was $12 million, a 13% increase year-over-year as customer activity continues to be strong within both the energy and industrial sectors. We are seeing the positive impact of our commercial strategy given 165% year-over-year growth in our Industrial segment this quarter. In summary, I'm pleased with the operating performance of all divisions entering the year as we continue to execute our growth and diversification strategy.

由於能源和工業領域的客戶活動持續強勁，資產負債收入為 1200 萬美元，同比增長 13%。鑑於本季度我們的工業部門同比增長 165%，我們看到了我們商業戰略的積極影響。總而言之，隨著我們繼續執行我們的增長和多元化戰略，我對今年所有部門的經營業績感到滿意。

With that, I'll turn the call back over to Tom for a discussion of our first quarter performance.

有了這個，我會把電話轉回湯姆討論我們第一季度的表現。

Thank you, Eric.

謝謝你，埃里克。

Turning to Slide 5 for an overview of our first quarter results. We had a strong first quarter performance with consolidated revenues of $48.9 million compared to $41.8 million in the prior year quarter. The 17% increase was primarily reflective of the sustained demand strength and strong operational execution across our diverse end markets. Each of our operating segments generated year-over-year growth in both revenues and operating income.

轉到幻燈片 5，了解我們第一季度的業績概覽。我們第一季度表現強勁，綜合收入為 4890 萬美元，而去年同期為 4180 萬美元。 17% 的增長主要反映了我們多元化終端市場的持續需求強度和強大的運營執行力。我們的每個運營部門的收入和營業收入都實現了同比增長。

In Q1, we recognized $4.1 million of EBITDA compared to breakeven EBITDA in the prior year first quarter. Our strong EBIT performance and improved margin realization is primarily attributable to the higher overall volume level and the benefits attributable to the advanced manufacturing production tax credits or AMP credits. We are, in this quarter, associated with our wind tower production. The AMP credits were introduced as part of the Inflation Reduction Act, which was enacted into law in 2022. The IRA provides for manufacturing tax credits associated with eligible wind and solar components. Manufacturers qualify for these credits based on the electricity output for each component produced and sold in the U.S. starting in 2023. It is also important to point out that we generated GAAP net income of $800,000 or $0.04 per diluted share in the first quarter. After adjusting for the $700,000 of proxy contest-related costs, we generated $1.5 million of net income or $0.07 per diluted share.

在第一季度，我們確認了 410 萬美元的 EBITDA，與去年第一季度的收支平衡 EBITDA 相比。我們強勁的息稅前利潤表現和提高的利潤率實現主要歸因於較高的整體銷量水平以及先進製造生產稅收抵免或 AMP 抵免帶來的好處。在本季度，我們與我們的風塔生產相關聯。 AMP 抵免是作為《降低通貨膨脹法案》的一部分引入的，該法案於 2022 年成為法律。IRA 規定了與符合條件的風能和太陽能組件相關的製造稅收抵免。根據從 2023 年開始在美國生產和銷售的每個組件的電力輸出，製造商有資格獲得這些信用。同樣重要的是要指出，我們在第一季度產生了 800,000 美元的 GAAP 淨收入或每股攤薄收益 0.04 美元。在調整 700,000 美元的代理權競爭相關成本後，我們產生了 150 萬美元的淨收入或每股攤薄收益 0.07 美元。

Turning to Slide 6 for a discussion of our Heavy Fabrications segment. First quarter orders were comparatively limited at $20.2 million, a decrease from the prior year period and sequentially. This decrease is attributable to the timing of the large multiyear $175 million tower order that was received late in 2022. Based on the timing of this order and the resulting near-record backlog that we've carried since year-end, we expect the orders to be limited when compared to prior periods where order intake levels reflected a more consistent project by project timing.

轉到幻燈片 6 討論我們的重型製造部分。第一季度訂單相對有限，為 2020 萬美元，較上年同期和環比有所下降。這一減少歸因於 2022 年底收到的數年 1.75 億美元的大型塔式訂單的時間安排。根據該訂單的時間安排以及由此產生的我們自年底以來接近創紀錄的積壓訂單，我們預計訂單與前幾個時期相比，訂單接收水平反映了按項目時間安排的更一致的項目。

First quarter revenues were $31.6 million, up from $27.3 million in the prior year quarter. Although we sold less tower sections versus the prior year period, we realized an increase in wind tower revenue as we had less customer supply material and increased steel costs, which is generally a pass-through to customers. In addition, we recognized a 31% increase in industrial fabrication product line revenue due to increased demand for mining customers as well as for our PRS units in the current year quarter.

第一季度收入為 3160 萬美元，高於去年同期的 2730 萬美元。儘管與去年同期相比，我們銷售的塔架部分較少，但我們實現了風塔收入的增加，因為我們的客戶供應材料減少，鋼材成本增加，這通常會轉嫁給客戶。此外，由於本年度季度對採礦客戶以及我們的 PRS 裝置的需求增加，我們確認工業製造產品線收入增長了 31%。

During the first quarter, we recognized EBITDA of $3.9 million, an improvement of $3.3 million versus the prior year period, primarily driven by the AMP credits recognized in the current year period as well as the increased industrial fabrication product line revenue.

第一季度，我們確認 EBITDA 為 390 萬美元，比去年同期增加 330 萬美元，這主要是由於本年度確認的 AMP 信貸以及工業製造產品線收入的增加。

Turning to Slide 7. Gearing orders continue to be strong in Q1, totaling $12.4 million. This represents a decrease versus the prior year first quarter but remains on pace with $13 million quarterly averaged experienced during 2022. Backlog increased again in Q1 and the resulting balance represents the highest reported level in recent history. Compared to the prior year first quarter, segment revenues increased 13% to $12 million, reflective of the comparatively stronger backlog that we entered 2023 with. We generated $1.3 million of segment EBITDA in Q1, an increase of $0.8 million versus the prior year quarter, a result of the additional revenue, a more profitable mix of products sold and the lack of ramp-up costs incurred in the prior year.

轉到幻燈片 7。槓桿訂單在第一季度繼續強勁，總計 1240 萬美元。這與去年第一季度相比有所下降，但與 2022 年季度平均 1300 萬美元的水平持平。第一季度積壓訂單再次增加，由此產生的餘額是近期歷史上報告的最高水平。與去年第一季度相比，分部收入增長 13% 至 1200 萬美元，反映出我們進入 2023 年時積壓的訂單相對較多。我們在第一季度產生了 130 萬美元的部門 EBITDA，比去年同期增加了 80 萬美元，這是由於額外的收入、更有利可圖的銷售產品組合以及上一年沒有增加成本。

Turning to Slide 8 for a discussion of our Industrial Solutions segment. Industrial Solutions recorded $7 million of new orders in Q1. This represents a $2.5 million or 56% increase versus the prior year first quarter. We ended the first quarter with a record high $17 million in backlog as we continue to see strong demand for our core natural gas turbine offerings.

轉到幻燈片 8 討論我們的工業解決方案部分。 Industrial Solutions 第一季度錄得 700 萬美元的新訂單。這比去年第一季度增加了 250 萬美元或 56%。由於我們繼續看到對我們的核心天然氣渦輪機產品的強勁需求，我們在第一季度結束時積壓了創紀錄的 1700 萬美元。

First quarter segment revenues increased to $5.4 million from $4.1 million in the prior year period due primarily to the strong order intake levels we've been experiencing and a large shipment for an international customer. EBITDA increased to $0.8 million, consistent with the increased revenue as well as an improved mix of products sold when compared to the prior year quarter.

第一季度分部收入從上年同期的 410 萬美元增加到 540 萬美元，這主要是由於我們經歷的強勁訂單接收水平和國際客戶的大量出貨量。 EBITDA 增至 80 萬美元，與去年同期相比收入增加以及銷售產品組合有所改善。

Turning to Slide 9. Our quarter end liquidity remains adequate, with cash and availability under our credit facility of $12.3 million. As noted during the Q4 results conference call, we expect that our operating working capital to increase in Q1 as a result of higher AR and inventory balances consistent with the increased production levels as well as deposit balances decreasing to our new normalized operating levels. As such, we saw operating working capital increased sequentially, which was funded by our line of credit. We don't anticipate any further significant increases in operating working capital for the balance of the year.

轉到幻燈片 9。我們的季度末流動性仍然充足，我們的信貸額度下的現金和可用性為 1230 萬美元。正如在第四季度業績電話會議上指出的那樣，我們預計我們的運營營運資金將在第一季度增加，因為較高的 AR 和庫存餘額與生產水平的提高以及存款餘額下降到我們新的正常運營水平一致。因此，我們看到運營營運資金連續增加，這是由我們的信貸額度提供的。我們預計今年餘下時間運營營運資金不會進一步大幅增加。

It should be noted that the AMP credits are not part of our traditional operating working capital calculation, but we do expect this receivable balance to increase during the year.

應該注意的是，AMP 信貸不是我們傳統運營營運資金計算的一部分，但我們確實預計這一年應收賬款餘額會增加。

Finally, as we announced on April 20, we are affirming our full year financial guidance. For the full year 2023, we currently anticipate total revenue to be within a range of $205 million and $220 million and adjusted EBITDA to be approximately $16 million to $18 million.

最後，正如我們在 4 月 20 日宣布的那樣，我們確認了我們的全年財務指導。對於 2023 年全年，我們目前預計總收入將在 2.05 億美元至 2.2 億美元之間，調整後的 EBITDA 約為 1600 萬至 1800 萬美元。

That concludes my remarks. I will turn the call back over to Eric for an overview of end markets in addition to some concluding remarks.

我的發言到此結束。除了一些總結性評論外，我將把電話轉回給埃里克，以了解終端市場的概況。

Thanks, Tom. In the near to medium term, we continue to view the Inflation Reduction Act of 2022 as a significant positive catalyst for the wind sector, as it provides the long-term policy certainty long awaited by developers. We believe that the IRA, supported by rising commercial and industrial demand, will support ratable growth in new wind installations beginning in 2024. Even as we await final IRS guidance, we are seeing renewed confidence at our wind customers given expectations for a more stable industry growth over the next decade. The AMP credits included in the IRA create a new production credit for domestic manufacturers of the components relating to clean energy, including our wind tower products. As we look forward to the balance of 2023 and into the next year, we have increased visibility and a strengthened backlog in each of our operating segments as we build on our legacy in wind to expand into new adjacent clean tech markets such as clean fuels, solar and power and infrastructure.

謝謝，湯姆。在中短期內，我們繼續將 2022 年的通貨膨脹減少法案視為風能行業的重要積極催化劑，因為它提供了開發商期待已久的長期政策確定性。我們相信，在不斷增長的商業和工業需求的支持下，IRA 將支持從 2024 年開始的新風力發電裝置的可比增長。即使在我們等待 IRS 最終指南的同時，鑑於對更穩定的行業的期望，我們也看到風能客戶重拾信心未來十年的增長。 IRA 中包含的 AMP 信貸為國內清潔能源相關組件製造商創造了新的生產信貸，包括我們的風塔產品。在我們展望 2023 年和明年的平衡時，隨著我們在風能領域的傳統基礎上擴展到清潔燃料等新的相鄰清潔技術市場，我們提高了每個運營部門的知名度並加強了積壓，太陽能、電力和基礎設施。

As mentioned earlier, in our Heavy Fabrication segment, we are adding coatings automation to improve our plant throughput, optimize labor and reduce costs as we continue to work with our customers to book capacity for towers and other industrial fabrications for 2023 and beyond. The line of proprietary Pressure Reducing Systems introduced last year is progressing as per our strategy, and we're pleased with the favorable market response and order activity we've received for the new high flow model released this year. We've also introduced a rental option for these units in response to customer demand. Given our current capacity, we expect to generate approximately $20 million in annual incremental revenue from this product line by 2025 at attractive margins.

如前所述，在我們的重型製造部門，我們正在增加塗料自動化，以提高我們的工廠產量、優化勞動力並降低成本，因為我們將繼續與客戶合作，為 2023 年及以後的塔和其他工業製造預訂產能。去年推出的專有減壓系統系列正在按照我們的戰略取得進展，我們對今年發布的新高流量型號收到的良好市場反應和訂單活動感到滿意。我們還根據客戶需求為這些設備推出了租賃選項。鑑於我們目前的產能，我們預計到 2025 年該產品線的年度增量收入將達到約 2000 萬美元，利潤率極具吸引力。

In our Gearing segment, we are seeing success with our efforts to broaden our sales mix into less cyclical markets to achieve a more balanced revenue stream going forward. Order growth from industrial and steel processing segments has been strong, and we're seeing good response to our increased focus on gearbox repair and refurbishment services.

在我們的齒輪部門，我們看到成功將我們的銷售組合擴大到週期性較弱的市場，以實現未來更平衡的收入流。來自工業和鋼鐵加工領域的訂單增長強勁，我們看到對變速箱維修和翻新服務的日益關注得到了良好的回應。

And finally, our strategy to add process capabilities to our Industrial Solutions business to expand our share of wallet within existing accounts while penetrating new ones and improve margin profiles is yielding desired results.

最後，我們的戰略是為我們的工業解決方案業務增加流程能力，以擴大我們在現有賬戶中的錢包份額，同時滲透新賬戶並改善利潤率，正在產生預期的結果。

In summary, I'm pleased with the progress our team is making to build a durable foundation for steady profitable growth and look forward to capitalizing on improved market demand in the years ahead. As wind and renewables investment activity gradually increases over the next several years, our strategy to prudently maintain our facilities, equipment and vital core talent positions us well to support an ongoing recovery in order activity. We will leverage the presence we have established within wind, clean fuels and power generation while establishing footholds within other complementary market adjacencies such as solar. Concurrently, we will drive capacity utilization, margin expansion and reduced net leverage, ensuring continued balance sheet optionality to support the long-term growth of our business.

總而言之，我對我們的團隊在為穩步盈利增長奠定持久基礎方面取得的進展感到高興，並期待在未來幾年利用改善的市場需求。隨著風能和可再生能源投資活動在未來幾年逐漸增加，我們審慎維護設施、設備和重要核心人才的戰略使我們能夠很好地支持訂單活動的持續復甦。我們將利用我們在風能、清潔燃料和發電領域建立的影響力，同時在太陽能等其他互補市場鄰接領域建立立足點。同時，我們將提高產能利用率、擴大利潤率並降低淨槓桿率，確保資產負債表的持續選擇性，以支持我們業務的長期增長。

With the successful execution of our strategy, we expect to generate significant growth in both revenue and income over the next several years as we more fully leverage our NOLs, with emphasis on long-term value creation.

隨著我們戰略的成功執行，隨著我們更充分地利用我們的 NOL，並強調長期價值創造，我們預計在未來幾年內收入和收入都會顯著增長。

With that said, I will turn the call over to the moderator for the Q&A session.

話雖如此，我會將電話轉給問答環節的主持人。

(Operator Instructions) Our first question comes from Eric Stine with Craig-Hallum.

（操作員說明）我們的第一個問題來自 Eric Stine 和 Craig-Hallum。

Eric and Tom. So curious if you could talk a little bit about the large wind contracts, presumably the business that you did in Q1 is really business secured in what, mid-'22 or potentially in early '22. So I just want to confirm that, but then also just think about any more clarity as the year progresses on when you expect that large contract to start up? And when it does, is it still the view that it would be ratable through the end of 2024?

埃里克和湯姆。很好奇您是否可以談談大型風電合同，大概您在第一季度所做的業務確實在 22 年中期或可能在 22 年初得到了保障。所以我只想確認這一點，但隨著時間的推移，你希望大合同何時啟動，還要考慮更清晰的情況嗎？到 2024 年底，它是否仍然可以評級？

Yes. On orders against that particular larger order will be in producing in Q3 and they'll last all the way through the end of 2024. Ratably, to your point, yes.

是的。針對該特定較大訂單的訂單將在第三季度生產，它們將一直持續到 2024 年底。Ratably，就您而言，是的。

Got it. And then you talked -- I guess in the past, you've guided into the forward quarter. And I know that you've talked about having better visibility, better than you've ever had. Just curious, any color you can provide on Q2 and maybe just linearity versus Q1? And then also, any chance you can talk about the mix of winds, since that's obviously going to dictate the credit that you would recognize in the quarter?

知道了。然後你說——我想在過去，你已經進入了前區。而且我知道你談到了比以往任何時候都更好的知名度。只是好奇，您可以在 Q2 上提供任何顏色，也許只是與 Q1 的線性關係？然後，您是否有機會談論風的混合，因為這顯然會決定您在本季度認可的信用？

I think for Q2, we're going to see consistent with Q1, the mix, the mixture also be consistent. We were able to pull a little bit of towers into Q1. This robot, this coatings automation that we are putting in this year, we elected to put that in Q2 instead of Q1 so it pulled some orders into Q1. But I do expect it to be consistent with Q1.

我認為對於第二季度，我們將看到與第一季度一致的混合，混合也保持一致。我們能夠將一些塔拉入 Q1。我們今年推出的這個機器人，這個塗料自動化，我們選擇把它放在第二季度而不是第一季度，所以它把一些訂單拉到了第一季度。但我確實希望它與第一季度保持一致。

Okay. With a little less wind, just to be clear.

好的。少了一點風，只為晴朗。

Little less wind, yes.

風少了，是的。

Okay. All right. No, that's fair. I appreciate that.

好的。好的。不，這很公平。我很感激。

And then maybe just sticking with wind, it sounds like in your commentary, you're talking about '24 in terms of maybe an uptick in orders there. I mean, so does that kind of imply that for the Manitowoc facility that it's still early in the wind recovery? That that's kind of the time frame when you might expect some orders that would fill up that facility?

然後也許只是堅持風，這聽起來像在你的評論中，你談論的是 24 年，那裡的訂單可能會增加。我的意思是，這是否意味著對於 Manitowoc 工廠來說，它仍處於風力恢復的早期階段？那就是您可能期望一些訂單會填滿該設施的時間範圍？

Yes, I would say we're -- I would call it the early innings. As I mentioned before in previous calls, the south has been harder than the north. And the north is starting to heat up, but it will take some time. So I think you're correct. In '24, we'll start seeing some orders consistent with the overall growth in installation expectations of the wind market.

是的，我會說我們 - 我會稱之為早期局。正如我之前在之前的電話中提到的，南方比北方更難。北方開始升溫，但還需要一些時間。所以我認為你是對的。在 24 年，我們將開始看到一些訂單與風電市場安裝預期的整體增長相一致。

Yes. No, understood. Great color, I guess. Maybe just last one for me. Just for Tom, on working capital. Given kind of what you're talking about in terms of free cash flow and $6 million of CapEx for the year implies that not only does it going to stay flattish or that you actually start to get a working capital benefit as the year progresses. So I mean, any color you can provide in terms of how that might hit throughout the year?

是的。不，明白。很棒的顏色，我想。也許對我來說只是最後一個。只是為了湯姆，關於營運資金。考慮到你所說的自由現金流和今年 600 萬美元的資本支出，這意味著它不僅會保持平穩，而且隨著時間的推移，你實際上開始獲得營運資本收益。所以我的意思是，您可以提供任何顏色來說明全年可能會受到影響嗎？

Yes. No, I think we've seen the significant increase in working capital that we projected kind of plateau now at the end of Q1, so I don't expect a lot of significant movement for the balance of the year. There may be some ebb and flows within the quarters, but I think it will be pretty stable throughout the balance of the year. I think the balance of our free cash flow will come from our earnings. So there might be some small benefit to working capital, but I think it's mostly on the cash that we'll generate.

是的。不，我認為我們已經看到我們在第一季度末預測的營運資本顯著增加，因此我預計今年餘下時間不會有太多重大變動。季度內可能會有一些潮起潮落，但我認為在今年餘下的時間裡它會非常穩定。我認為我們自由現金流的餘額將來自我們的收益。因此，營運資金可能會有一些小好處，但我認為這主要取決於我們將產生的現金。

Our next question is from Justin Clare with ROTH MKM.

我們的下一個問題來自 Justin Clare 和 ROTH MKM。

So just to start off here on the manufacturing credits, it looks like you secured just over $3 million in the advanced manufacturing credits in Q1. I know we're still waiting on treasury guidance there, but I was wondering if you could just talk about how you might monetize the credits? Are you looking at transferring those credits near term? Or is it more likely that you would receive the cash in 2024? And then maybe if you could just talk more broadly about where you might need more clarity from the treasury on those manufacturing credits?

因此，從製造信貸開始，您似乎在第一季度獲得了超過 300 萬美元的先進製造信貸。我知道我們仍在等待財政部的指導，但我想知道您是否可以談談如何將積分貨幣化？您是否正在考慮近期轉移這些學分？還是您更有可能在 2024 年收到現金？然後也許你可以更廣泛地談談你可能需要財政部在哪些方面更清楚地說明這些製造信貸？

Yes. Thanks, Justin. So at this point, if we do nothing, we won't be able to monetize those into -- until 2024 when we file our year-end tax return for 2023. So we've talked to several people about the potential monetization of these credits. There's just an unwillingness to do anything until the IRS comes out with their guidance regarding this. We don't know what it's going to look like, what the transfer, there's some certificate that's issued, so everyone is kind of in a waiting game to see when that comes out. But this is a long-term credit, so the market is going to be patient and we'll be transferring -- we think this market will develop over time.

是的。謝謝，賈斯汀。所以在這一點上，如果我們什麼都不做，我們將無法將這些貨幣化到 - 直到 2024 年我們提交 2023 年的年終納稅申報表。所以我們已經與幾個人討論了這些的潛在貨幣化學分。在美國國稅局就此提出指導意見之前，他們不願意做任何事情。我們不知道它會是什麼樣子，轉移是什麼，已經頒發了一些證書，所以每個人都在等待遊戲什麼時候出來。但這是一項長期信貸，所以市場會耐心等待，我們會轉移——我們認為這個市場會隨著時間的推移而發展。

As far as the -- Yes, Justin, this is Eric. Add on.

至於——是的，賈斯汀，這是埃里克。添加在。

The clarity that we expect from the IRS guidance, I don't expect much change in what's specific to the component manufacturers. But there is this question about domestic content, from some labor contributions that I think overall could impact developers. And I think that's what is causing a bit of a pause.

我們期望從美國國稅局指南中獲得的清晰度，我預計組件製造商的具體內容不會有太大變化。但是有一個關於國內內容的問題，來自我認為總體上可能影響開發人員的一些勞動力貢獻。我認為這就是導致有點停頓的原因。

Okay. Got it. Yes. So maybe you can speak to that a little bit more. We are waiting on domestic content and the manufacturing credits in terms of the guidance from treasury. Is that having a meaningful impact on your customers and developers? And are we seeing developers maybe put a pause on projects until there is more clarity?

好的。知道了。是的。所以也許你可以多說一點。我們正在等待財政部指導方面的國內內容和製造信貸。這是否對您的客戶和開發人員產生了有意義的影響？我們是否看到開發人員可能會暫停項目，直到情況更加明朗？

Yes. I think the answer is a little of both. I mean the market is seeing increased activity as evidenced by some of the orders announced by us and by others. But I do believe there's still some hesitancy as we await the final guidance, Justin. There may be projects that are just kind of on the bubble, if you will, and this guidance might help justify a little bit more than others.

是的。我認為答案是兩者兼而有之。我的意思是，我們和其他人宣布的一些訂單證明了市場活動正在增加。但我確實相信，在我們等待最終指南的過程中，仍然存在一些猶豫，賈斯汀。如果您願意的話，可能有些項目只是處於泡泡階段，而本指南可能比其他項目更有助於證明其合理性。

So I think it's -- the answer is a little bit of both. We're definitely seeing some exuberance in the market, but there could be some pause, some waiting.

所以我認為 - 答案是兩者兼而有之。我們肯定會看到市場有些繁榮，但可能會有一些停頓，一些等待。

Got you. Okay.

明白了好的。

And then I know you've spoken a good amount about cash flow through the year and your working capital here. But just wanted to ask, is there a potential that you may need to build inventory as we move through the end of this year here in anticipation of pickup in early 2024? What kind of visibility do you have right now into potentially increasing utilization in the early part of the year in 2024? Or is it more likely that we see a greater ramp later in 2024 and into 2025?

然後我知道你已經談了很多關於全年現金流量和你在這裡的營運資金。但只是想問，在我們今年年底預計 2024 年初提貨時，您是否有可能需要建立庫存？您現在對 2024 年年初可能增加的利用率有什麼樣的可見性？還是我們更有可能在 2024 年晚些時候和 2025 年看到更大的增長？

I think the latter. I think we're not -- inventory will ebb and flow, again, our working capital will ebb and flow. But we just don't think it's going to be a significant factor for the balance of this year at least. That may be more of a factor towards the end of 2024, I would think.

我認為是後者。我認為我們不是——庫存會潮起潮落，同樣，我們的營運資金也會潮起潮落。但我們只是認為這至少不會成為今年餘下時間的重要因素。我認為，到 2024 年底，這可能是一個更大的因素。

Our next question is from Amit Dayal with H.C. Wainwright.

我們的下一個問題來自 H.C. 的 Amit Dayal。溫賴特。

Good to see the execution on (inaudible) So just on the credits topic, right? Are you expecting to accumulate these credits at a similar run rate that you saw in the first quarter for the remainder of the year?

很高興看到（聽不清）的執行 所以只是關於學分主題，對吧？您是否希望在今年剩餘時間內以與第一季度相似的運行率積累這些積分？

I would say, yes, they're ratable. They do -- as a reminder, they're calculated based on the capacity factor of the turbines we're building for, but there is a range that we think we're going to be building within. So I think, yes. Given that range, it should be ratable for the rest of the year.

我會說，是的，他們是可評價的。他們這樣做 - 提醒一下，他們是根據我們正在建造的渦輪機的容量係數計算的，但我們認為我們將在一個範圍內建造。所以我認為，是的。鑑於這個範圍，它應該在今年餘下的時間裡保持穩定。

Amit, the only thing I would add to that is that some of the tower designs that we're producing, we won't know about right away. So they are subject to the megawatt rating of the tower that we're designing as well as whether they're 3 or 4-section towers. So there is some uncertainty going forward about -- regarding those.

阿米特，我唯一要補充的是，我們正在生產的一些塔式設計，我們不會馬上知道。因此，它們受制於我們正在設計的塔的兆瓦額定值以及它們是 3 節塔還是 4 節塔。因此，關於這些方面存在一些不確定性。

Understood. Understood. That's fair. And then you guys came in a little bit stronger on the gross margin front relative to our expectations. I'm just wondering if there is room for further upside on the gross margins given the new product mix? Or is this the level at which you probably will be for the rest of the year?

明白了。明白了。這還算公平。然後你們在毛利率方面比我們的預期要強一些。我只是想知道考慮到新產品組合，毛利率是否還有進一步上升的空間？或者這是您今年餘下時間可能會達到的水平？

Well, I think we saw a little bit of enhanced capacity utilization because we're able to pull orders in, production in to the -- into the quarter through good execution. But I think from a gross margin standpoint, it would be relatively stable for the rest of the year.

好吧，我認為我們看到了一些提高的產能利用率，因為我們能夠通過良好的執行將訂單拉入，生產進入 - 進入本季度。但我認為從毛利率的角度來看，今年剩餘時間會相對穩定。

Okay. And then just last one for me on the $8 million PRS order, could you talk a little bit about what type of customers you cater to with this offering? And what the opportunity looks like for you?

好的。最後一個是我的 800 萬美元 PRS 訂單，你能談談你用這個產品迎合什麼類型的客戶嗎？機會對您來說是什麼樣的？

Yes. Those units go into what we call the virtual pipeline, which is the process of taking fuel gas, natural gas, from its point of origin source, compressing it and then taking it to a point of use where it's -- where it would be not subject to pipeline service, and then decompressing on the other end. And that's -- and we support the equipment for the decompression or the pressure reduction at the end.

是的。這些裝置進入我們所說的虛擬管道，這是從其原始來源獲取燃氣、天然氣、壓縮它然後將其輸送到它所在的使用點的過程——它不會在那裡接受管道服務，然後在另一端解壓。那就是 - 我們支持最終減壓或減壓的設備。

So we are selling these things to purveyors of natural gas. They tend to be working -- they sell the gas to users of the gas at the point of use, and they use our equipment to do that.

所以我們把這些東西賣給天然氣供應商。他們往往是在工作——他們在使用時將天然氣賣給天然氣用戶，他們使用我們的設備來做這件事。

We have reached the end of the question-and-answer session. I'd now like to turn the call back over to management for closing comments.

我們已經結束了問答環節。我現在想把電話轉回管理層以徵求意見。

Yes. Thank you. We appreciate your interest in Broadwind. We're excited for the way, you're started, and we look forward to coming back to you after Q2. So give a report then. Thanks, everyone.

是的。謝謝。感謝您對 Broadwind 的關注。我們對這種方式感到興奮，你已經開始了，我們期待在第二季度之後回到你身邊。所以到時候匯報一下。感謝大家。

This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.

今天的會議到此結束。您此時可以斷開線路，我們感謝您的參與。