 CICERO, Ill., Aug. 05, 2020 GLOBE NEWSWIRE -- Broadwind NASDAQ: BWEN, a diversified precision manufacturer of specialized components and solutions serving global markets, today announced results for the second quarter 2020. 2Q20 HIGHLIGHTS Total revenue of 54.9 million 33 yy Total gross margin of 9.9 40 bps yy Total net income of 0.5 million, or 0.03 per basic share Total non-GAAP adjusted EBITDA of 2.9 million 50 yy Total cash and availability of 21.9 million 13.8 million yyFor the three months ended June 30, 2020, the Company reported total sales of 54.9 million, an increase of 33.4 when compared to the prior-year period. Broadwind reported net income of 0.5 million, or 0.03 per basic share in the second quarter 2020, compared to a net loss of 1.0 million, or 0.06 per basic share, in the second quarter 2019. The Company reported adjusted EBITDA of 2.9 million in the second quarter 2020, compared to 1.9 million in the prior-year period. Significant revenue growth in the Heavy Fabrications and Industrial Solutions segments more than offset a decline in Gearing segment revenue during the second quarter 2020. Heavy Fabrications segment revenue increased by more than 50 on a year-over-year basis in the second quarter, driven by customer demand to support the expected increase of wind turbine installations and as a result of diversification traction in mining and other industrial markets. Industrial Solutions segment revenue also increased by 50, given increased demand for natural gas turbine components, while Gearing segment revenue declined by 25, as select customers postponed scheduled purchases into future periods given general economic uncertainty resulting from the novel coronavirus COVID-19. STRATEGY UPDATEDuring the second quarter, Broadwind continued to execute on a multi-year strategy focused on 1 market expansion across key verticals 2 improved operating efficiency and plant utilization; and 3 disciplined capital management. Diverse market focus. Revenue derived from customers in the wind, industrials, steel and natural gas turbine markets all increased in the second quarter 2020. Total wind-related revenues increased 40 year-over-year in the period. The Company remains a key supplier to the global on-shore wind energy industry and has begun to evaluate new, off-shore wind customer opportunities that leverage its existing expertise. Increased operating efficiency. As of August 5, 2020, the Company had booked more than 90 of its optimal wind tower production capacity through year-end 2020. Broadwind sold 320 wind tower sections in the second quarter 2020, versus 201 sections in the prior-year period. Disciplined capital management. Total cash and availability under outstanding credit facilities increased 2.9 million sequentially and 13.8 million compared to the prior year second quarter. As of June 30, 2020, the ratio of net debt to trailing twelve-month adjusted EBITDA was 1.4x, after excluding the 9.1 million in loans received under the Paycheck Protection Program. MANAGEMENT COMMENTARYDespite continued macro uncertainty related to the COVID-19 pandemic, our business performed well during the second quarter, guided by our long-term focus on end-market diversification, lean manufacturing processes and disciplined capital management, stated Eric Blashford, CEO of Broadwind. Total revenue increased by more than 30 when compared to the prior-year period, resulting in our second consecutive quarter of profitability. This strong performance was supported by broad-based revenue growth across our core wind, industrials, steel and natural gas turbine markets during the period.To-date, we have booked approximately 90 of our optimal wind tower production capacity for the full-year 2020, continued Blashford. We sold 320 wind tower sections during the second quarter, an increase of nearly 60 when compared to the year-ago period. For the full-year 2020, we anticipate Broadwind will generate year-over-year growth in revenue, net income and adjusted EBITDA, continued Blashford. We expect our financial performance in the second half of 2020 will be largely comparable to what we achieved during the first half of the year, with our internal forecast calling for strong sequential growth between the second and third quarters of 2020.We believe the offshore wind market remains a significant, untapped opportunity for Broadwind, continued Blashford. We are currently evaluating strategic alternatives that have the potential to provide an attractive entry point into offshore wind. As an established producer of onshore wind towers, the transition to offshore represents a natural progression for our business, one with the potential to drive sustained demand for our expertise.While we are encouraged by the demand drivers for wind energy and our diversification progress, demand within our markets has begun to soften, as customer projects are postponed due to the impact of COVID-19, continued Blashford. Looking ahead, we anticipate this uncertainty will impact our fourth quarter results, with expectations for a recovery during the first half of 2021.We exited the second quarter with cash and liquidity of nearly 22 million, up from 8 million in the prior-year period, concluded Blashford. ORDERS AND BACKLOGTotal orders increased 17 to 39.6 million in the second quarter, versus 33.8 million in the first quarter 2020, supported by increased demand for wind towers. Heavy Fabrications segment orders declined compared to the prior year quarter, as wind turbine original equipment manufacturers secured production capacity in advance of historical lead times, given expectations for a surge in new wind tower installations during 2020. Gearing segment orders declined sequentially mainly due to continued softness in domestic oil and gas production, a market that represented less than 15 of segment orders in the second quarter. Other markets within the Gearing segment also realized lower new order demand, primarily due to delayed or reduced capital purchases by customers due to the general economic uncertainty resulting from the COVID-19 pandemic. Industrial Solutions segment orders declined sequentially during the second quarter due to a modest decline in natural gas turbine orders.Total backlog declined 12 sequentially in the second quarter to 112.1 million, as COVID-19 related delays postponed the timing of customer orders. As of June 30, 2020, Heavy Fabrications represented approximately 76 of total Company backlog. SEGMENT RESULTS Heavy Fabrications Segment Broadwind provides large complex and precision fabrications to customers in a broad range of industrial markets. Key products include wind towers and industrial fabrications, including mining and material handling components and other framesstructures. Heavy Fabrications segment sales increased by 14.6 million to 43.6 million in the second quarter, when compared to the prior year period, primarily due to strong demand for wind towers. Total operating income increased 2.9 million to 3.2 million, when compared to the second quarter 2019. Segment non-GAAP adjusted EBITDA increased 2.7 million to 4.2 million, when compared to the second quarter 2019. Second quarter segment performance was primarily driven by growth in customer demand for wind towers.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 2.3 million to 6.9 million in the second quarter, when compared to the year-ago period, due primarily to lower order intake from oil and gas customers. The Gearing segment reported an operating loss of 0.7 million, versus operating income of 0.9 million in the prior-year period. Segment non-GAAP adjusted EBITDA declined 1.6 million to 0.1 million, when compared to the second quarter 2019. Second quarter segment performance was driven by lower sales across each major end-market. This decline was driven by the continuation of the COVID-19 pandemic and lower oil prices, which led customers to temporarily postpone orders and delay approximately 2.0 million of previously scheduled purchases into future periods. Industrial Solutions Segment Broadwind provides supply chain solutions, inventory management, kitting and assembly services, primarily serving the combined cycle natural gas turbine market. Industrial Solutions segment sales increased by 1.5 million to 4.4 million in the second quarter, when compared to the year-ago period. Total operating income increased by 0.2 million to 0.2 million in the second quarter, when compared to the prior-year period. Segment non-GAAP adjusted EBITDA increased 0.2 million to 0.4 million, when compared to the second quarter 2019. Second quarter segment performance was driven primarily by higher sales associated with new gas turbine content and improved operating efficiencies.BALANCE SHEET As of June 30, 2020, Broadwind had cash and availability under outstanding credit facilities of 2.1 million and 19.8 million, respectively. Total cash and liquidity increased by 13.8 million to 21.9 million at June 30, 2020, when compared to June 30, 2019.Total debt and finance leases were 25.3 million as of June 30, 2020. During the current year quarter, the Company received 9.1M of proceeds from the Paycheck Protection Program PPP, which was established under the Coronavirus Aid, Relief, and Economic Security Act CARES Act. 