Broadwind, Inc. (NASDAQ:BWEN) Q3 2022 Earnings Conference Call November 8, 2022 11:00 AM ET

Company Participants

Tom Ciccone - Vice President & Principal Accounting Officer

Eric Blashford - Chief Executive Officer

Conference Call Participants

Amit Dayal - H.C. Wainwright

Martin Malloy - Johnson Rice

Eric Stine - Craig-Hallum

Justin Clare - ROTH Capital Partners

Operator

Greetings and welcome to the Broadwind Third Quarter 2022 Results Conference Call. [Operator Instructions] And as a reminder, this conference is being recorded.

It is now my pleasure to introduce Tom Ciccone, CFO. Thank you, sir. You may begin.

Tom Ciccone

Good morning and welcome to the Broadwind third quarter 2022 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 market opened today, detailing our third 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. At the conclusion of our prepared remarks, we will open the line for questions.

With that, I'll turn the call over to Eric.

Eric Blashford

Thanks, Tom and welcome to those joining us today.

I'm pleased to report that demand conditions improved materially during the third quarter as both orders and backlog increased to multi-quarter highs. We booked $85 million of new orders in the third quarter, more than double the prior year period, with all segments posting significant increases. Most notably, our wind orders more than doubled from last year as the recent passage of the Inflation Reduction Act or IRA, together with a decline in select raw material prices from recent elevated levels, have led to early indications of recovery within the sector.

Our Gearing and Industrial Solutions businesses continued to show strength in orders during the quarter, with both segments posting 34% increases versus last year. While operationally, labor remains a challenge, we've taken steps to improve our recruiting and retention efforts while continuing to offer a competitive benefits package in the markets where we operate. We are managing the impacts of cost inflation and are collaborating with our customers to share these higher costs while introducing strategic pricing actions as we ensure stable margin capture. We are effectively managing our cash and expect to have liquidity remaining near current levels by the end of this year.