Energy services provider Broadwind Energy, Inc. (BWEN) on Friday reported a wider loss for the fourth quarter, hurt primarily by lower revenues and a significant rise in goodwill and intangible impairment charges. Broadwind Energy shares are currently trading down more than 14% on the Nasdaq.
For the fourth quarter, the Naperville, Illinois-based company's net loss was $92.60 million or $0.96 per share as compared with a loss of $12.37 million or $0.13 per share in the prior-year period.
During the quarter, the company recorded a goodwill and intangible charge of $82.2 million largely driven by market conditions causing a revision in management's assessment of future cash flows under certain key customer contracts.
Excluding non-cash charges, net loss totaled $10.4 million or $0.11 per share.
Analysts polled by Thomson Reuters expected Broadwind to report a loss of $0.07 per share for the quarter. Analysts' estimates typically exclude special items.
Quarterly revenues plummeted to $32.95 million from $77.64 million in the fourth quarter last year. Analysts expected the company to generate revenues of $46.30 million for the quarter.
On a segmental basis, revenues from towers were $17.22 million versus $33.78 million last year, and gearing revenues slumped to $9.70 million from $28.00 million in the comparable period prior year. Revenues from technical and engineering services totaled $5.44 million compared to $12.74 million in the previous-year quarter, and logistics revenues plunged to $896 thousand from $3.55 million a year ago.
Commenting on the results, chief executive officer Cameron Drecoll said, "Broadwind was significantly impacted by lower fourth quarter purchases under our multi-year framework agreements. In addition, we believe lower revenues in our Logistics and Technical Services businesses were the result of lower wind turbine sales."
During the three-month period, total operating expenses were $91.03 million compared with $18.39 million in the corresponding period last year. Goodwill and intangible impairment charges increased significantly to $82.21 million from $2.41 million in the prior year. Cost of sales for the quarter were $35.56 million versus $71.35 million in the year-earlier quarter.
For the full year 2009, Broadwind's net loss was $110.12 million or $1.14 per share from a loss of $25.29 million or $0.28 per share in the previous year. Excluding non-cash charges, net loss totaled $27.9 million or $0.29 per share.
Full year revenues were $197.83 million as compared with $217.32 million a year ago.
Analysts expected the company to post a loss of $0.23 per share on revenues of $208.17 million for the year.
Broadwind's year-end backlog totaled $247 million, down from $260 million at the end of September 2009. Of the total, nearly $119 million is expected to be delivered during 2010.
Looking ahead to the first quarter of 2010, Broadwind anticipates revenues to trough in the first quarter of 2010 and be down sequentially from the prior quarter. For the balance of 2010, revenues are estimated to increase sequentially, and exceed the prior year quarters during the second half of the year.
Drecoll added, "Following a weak first half, we expect to regain traction in the second half of 2010, and exit the year positioned to expand market share and revenues in 2011."
BWEN is currently trading on the Nasdaq at $4.87 per share, down $0.81 or 14.26%, on a volume of 472,909 shares. In the past 52-week period, the stock has been trading in a range of $2.60 to $12.49.
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