Broadwind Energy Announces Q4 and Full-Year 2012 Results

  Broadwind Energy Announces Q4 and Full-Year 2012 Results

   Second Year of Transformation Complete; Firmly on Path to Profitability

Business Wire

CICERO, Ill. -- February 27, 2013

Broadwind Energy, Inc. (NASDAQ: BWEN):

Q4 Highlights:

  *Order intake of $69 million increased from prior-year quarter; year-end
    backlog rose 23% from September 30, 2012 to $123 million
  *Q4 sales of $44.9 million, down 18% from prior-year quarter, due to
    expiration of the Production Tax Credit (PTC) at the end of the year
  *SGA expenses (excluding restructuring costs) declined 24% to $5.0 million
    from Q4 of the prior year
  *Adjusted EBITDA increased to $.7 million from prior-year loss of $1.0
    million, driven by improved efficiencies and operating expense reductions
  *Operating working capital reduced $17.7 million from Q3 2012 to $21.6
    million, 12% of Q4 annualized sales
  *Operating line of credit paid down by $16.6 million during the quarter;
    balance outstanding less than $1 million at 12/31/12

Broadwind Energy, Inc. (NASDAQ: BWEN) reported sales of $44.9 million for the
fourth quarter of 2012, an 18% decrease compared to $55.1 million in the
fourth quarter of 2011. As expected, the decrease reflects the acceleration of
wind tower shipments into earlier quarters in anticipation of the expiration
of the Production Tax Credit at the end of 2012.

The Company reported a net loss from continuing operations of $5.9 million or
$.41 per share in the fourth quarter of 2012, compared to a loss of $5.7
million or $.41 per share during the fourth quarter of 2011. The slight
increase in net loss was primarily due to increased amortization expense
associated with a customer intangible. The Company reported non-GAAP adjusted
EBITDA (earnings before interest, taxes, depreciation, amortization,
share-based payments and restructuring) of $.7 million during the fourth
quarter of 2012, compared to an adjusted EBITDA loss of $1.0 million during
the fourth quarter of 2011. The progress reflected significantly improved
operating results for all segments, partially offset by the impact of 17%
lower tower volume throughput in the fourth quarter.

For the full-year 2012, sales of $210.7 million exceeded full-year 2011 sales
by 13%, reflecting growth in all operating segments. For the full-year 2012,
the loss from continuing operations narrowed to $17.9 million, from a $20.7
million loss reported in 2011. The Company reported non-GAAP adjusted EBITDA
of $5.5 million, up sharply from an adjusted EBITDA loss of $2.1 million for
full-year 2011 due primarily to improved operating results in the Gearing and
Services segments, and lower Corporate expenses. These were partially offset
by weaker Towers and Weldments segment results reflecting the operational
challenges experienced earlier in the year.

Peter C. Duprey, president and chief executive officer, stated, “Owing to our
strategy to transform Broadwind Energy by diversifying our customer base and
our revenue composition, we have successfully navigated a very difficult year
caused by uncertainties due to the expiration of the Production Tax Credit.
Our efforts to combat these severe headwinds improved our EBITDA $1.6 million
from the fourth quarter of 2011. In the fourth quarter, Towers segment
operations were particularly challenged by deliveries accelerating ahead of
the PTC expiration and then falling off sharply as year-end approached. Our
Services business booked record orders in the fourth quarter and started 2013
with a backlog of $10.0 million. Our Gearing business faced its own obstacles
due to low natural gas prices, but saw increased demand for enclosed drives
primarily in the oil markets. In all, we finished 2012 with 13% top-line
growth and a $7.6 million improvement in EBITDA, and achieved our goal of
positive EBITDA in every quarter. Supported by a strengthening balance sheet,
this puts Broadwind solidly on a path to profitability.”

Mr. Duprey concluded, “Tower supply and demand have come into balance, partly
due to a favorable ruling from the International Trade Commission, and in part
from Congress extending the PTC for projects that begin construction in 2013.
We see strong near-term demand for towers as some of the market uncertainty
has been removed, and recently announced a $27 million tower order. As a
result, we now expect higher productivity in Towers in 2013 than last year,
which, combined with benefits from our restructuring initiatives, should drive
significant expansion in our 2013 gross margins. Our revenue diversification
strategy continues to support growth in our Industrial Weldments, Gearing and
Services businesses and we are positioned to achieve our goal of deriving
nearly half of our 2013 revenue—more than $100 million—independent of new wind
turbine demand. Therefore, we view our 2013 outlook for $215-225 million in
revenue and $9-12 million in EBITDA as highly achievable.”

Orders and Backlog

The Company booked $69.1 million in net new orders during the fourth quarter,
an increase of 1% from the prior-year quarter. Towers and Weldments orders,
which vary considerably from quarter-to-quarter, totaled $49.2 million,
including follow-on orders from two new customers added in 2012. Fourth
quarter Gearing orders totaled $7.0 million, a 50% decrease from the
prior-year fourth quarter, as orders from natural gas fracking and mining
equipment customers remained soft; these were partly offset by solid order
intake from other industrial and oil customers. Services had a record quarter,
as orders more than doubled to $12.9 million from the prior-year fourth
quarter, including a large drivetrain project with an industrial customer.

At December 31, 2012, backlog totaled $123 million, up from $100 million at
September 30, 2012.

Segment Results

Towers and Weldments

Broadwind Energy fabricates specialty weldments for wind, oil and gas, mining
and other industrial applications, specializing in the production of wind
turbine towers.

Towers and Weldments segment sales totaled $25.6 million in the fourth quarter
of 2012, compared to $34.6 million in the fourth quarter of 2011. As expected,
revenue decreased 26% from the prior-year quarter as deliveries were
accelerated into earlier quarters of 2012 ahead of the expiration of the
Production Tax Credit, which was renewed early in 2013. Consistent with the
company's diversification strategy, industrial weldment sales of $3.6 million
were up significantly from the prior year. Non-GAAP adjusted EBITDA for the
fourth quarter was $1.2 million in 2012, compared to $1.6 million in 2011. The
decrease was due primarily to lower Towers revenue, offset somewhat by
increased sales of industrial weldments and lower operating expenses. Towers
and Weldments segment operating loss for the fourth quarter of 2012 was $.5
million, compared to a slight profit in 2011.

Towers and Weldments segment sales for 2012 totaled $135.2 million, a 16%
increase over 2011 reported sales. In the current year, approximately $19.8
million of additional steel costs were included in tower sales, compared with
2011 tower sales which included a higher mix of fabrication-only tower sales.
In addition, industrial weldment sales nearly tripled in 2012, making a solid
contribution to the increase in segment revenue compared to the prior year.

Non-GAAP adjusted EBITDA for 2012 was $8.3 million, down 20% from 2011 due
mainly to operating inefficiencies related to producing multiple tower designs
earlier in the year. Towers and Weldments segment operating income totaled
$2.8 million compared to $5.2 million in 2011 due to the factors noted above.

Gearing

Broadwind Energy engineers, builds and remanufactures precision gears and
gearing systems for wind, oil and gas and mining applications.

Gearing segment sales totaled $14.3 million in the fourth quarter of 2012,
compared to $15.6 million in the fourth quarter of 2011. The 8% decrease was
due primarily to lower sales into natural gas fracking markets, partially
offset by higher sales to other industrial and mining equipment customers.
Non-GAAP adjusted EBITDA for the fourth quarter of 2012 was $1.0 million,
increasing from $.4 million in the prior-year fourth quarter, due to improved
margins and lower operating expenses, which more than offset the impact of
lower sales volumes. Gearing segment operating loss for the fourth quarter of
2012 was $2.2 million, unchanged from 2011, and included $.4 million of
additional restructuring expense associated with the plant consolidation
project underway and the $.5 million impact of accelerating the amortization
of customer intangibles, in addition to the factors described above.

Gearing segment revenues for 2012 totaled $55.7 million, up modestly from
$54.3 million in 2011. Sales to industrial and other customers increased 55%
compared to the prior year, more than offsetting the 78% decline in sales to
new-wind customers. Gearing sales to industrial and other customers
represented 91% of 2012 sales, compared to 60% in 2011. Non-GAAP adjusted
EBITDA for 2012 totaled $5.0 million compared to a loss of $.5 million in
2011. The significant improvement was due to the increased sales from
higher-margin industrial customers, improved productivity and lower operating
expenses in 2012. Gearing segment operating loss for 2012 improved to $7.6
million, compared to a reported operating loss of $10.7 million for 2011.

Services

Broadwind Energy specializes in non-routine drivetrain and blade maintenance
services. The Company also offers comprehensive installation support and field
services to the wind industry.

Revenue from the Services segment was $6.1 million in the fourth quarter of
2012, compared with $5.5 million in the fourth quarter of 2011. This 11%
increase in revenue was primarily the result of higher drivetrain and blade
services revenue, partially offset by lower field services activity in the
Midwest region. Non-GAAP adjusted EBITDA improved in the fourth quarter to
near break-even, compared to a loss of $1.1 million in the prior year as
result of improved margins, reduced manufacturing overhead and lower operating
expenses. Services segment operating loss decreased in the fourth quarter of
2012 to $.9 million, compared to a loss of $1.4 million in the fourth quarter
of 2011, reflecting the factors described above, partly offset by higher
depreciation and restructuring expenses.

Services segment sales for 2012 totaled $22.1 million, an increase of 36%
compared to reported sales for 2011. The significant improvement was due to
higher overall revenue across all product lines. Non-GAAP adjusted EBITDA
narrowed to a loss of $1.5 million in 2012 from a loss of $4.0 million in
2011. The 63% improvement, year-over-year, was due primarily to improved
margins and lower operating expenses compared to 2011. Operating loss for 2012
improved to a loss of $4.2 million, compared to a loss of $5.2 million in
2011.

Corporate and Other

Corporate and other expenses totaled $2.0 million in the fourth quarter of
2012, compared with $2.3 million in the fourth quarter of 2011. The
improvement was primarily attributable to lower legal expense, reduced
headcount, and other general cost containment efforts.

Corporate and other expenses totaled $8.3 million for 2012 compared to $9.6
million for 2011. The 14% decrease was primarily due to the factors noted
above.

On a consolidated basis for the fourth quarter, total operating expenses,
excluding restructuring, declined to $5.6 million from $6.7 million, compared
to the prior-year fourth quarter.

The future income tax benefits associated with the current period loss were
offset by an increase in the valuation allowance; therefore the effective
federal tax rate is zero. As of year-end, cumulative federal net operating
loss carry-forwards totaled $154 million. In February 2013, The Board of
Directors passed a Net Operating Loss Shareholder Rights Plan in an attempt to
preserve this significant tax asset.

Cash and Liquidity

During the quarter, operating working capital decreased $17.7 million to $21.6
million or 12% of annualized fourth-quarter 2012 sales. The sharp decrease
from September 30, 2012 was due primarily to reductions in inventory and in
trade receivables as the Company received payments for towers that were
shipped during the third quarter.

As a result of the working capital reduction, the Company significantly
reduced the outstanding balance on the $20 million line of credit put in place
in the third quarter of 2012. The line was paid down by $16.6 million to just
under $1.0 million at December 31, 2012. Net debt dropped to $10.1 million at
year-end from $25.1 million at September 30, 2012. Under the terms of this
borrowing structure, cash balances remain at a minimum when the credit line is
drawn. As a result, cash and equivalents totaled $.8 million at year-end 2012.

About Broadwind Energy, Inc.

Broadwind Energy (NASDAQ: BWEN) applies decades of deep industrial expertise
to innovate integrated solutions for customers in the energy and
infrastructure markets. From gears and gearing systems for wind, oil and gas
and mining applications to wind towers, to comprehensive remanufacturing of
gearboxes and blades, to operations and maintenance services, and industrial
weldments, we have solutions for the energy needs of the future. With
facilities throughout the U.S., Broadwind Energy's talented team of 800
employees is committed to helping customers maximize performance of their
investments-quicker, easier and smarter. Find out more at www.bwen.com.

Forward-Looking Statements

This release includes various forward-looking statements related to future,
not past, events. Statements in this release that are not historical are
forward-looking statements. These statements are based on current expectations
and we undertake no obligation to update these statements to reflect events or
circumstances occurring after this release. Such statements are subject to
various risks and uncertainties that could cause actual results to vary
materially from those stated. Such risks and uncertainties include, but are
not limited to: expectations regarding our business, end-markets,
relationships with customers and our ability to diversify our customer base;
the impact of competition and economic volatility on many of the industries in
which we compete; our ability to realize revenue from customer orders and
backlog; the impact of regulation on our end-markets, including the wind
energy industry in particular; the sufficiency of our liquidity and
working-capital; our restructuring plans and the associated cost-savings; our
ability to preserve and utilize our tax net operating loss carry-forwards; and
other risks and uncertainties described in our filings with the Securities and
Exchange Commission.


BROADWIND ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)

                                               As of December 31,
                                                 2012           2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                        $ 516            $ 13,340
Restricted cash                                    330              876
Accounts receivable, net                           20,039           25,311
Inventories, net                                   21,988           23,355
Prepaid expenses and other current assets          3,836            4,033
Assets held for sale                              8,042          8,052    
Total current assets                              54,751         74,967   
LONG-TERM ASSETS:
Property and equipment, net                        79,889           87,766
Intangible assets, net                             7,454            9,214
Other assets                                      816            944      
TOTAL ASSETS                                     $ 142,910       $ 172,891  
                                                                  
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Lines of credit and notes payable                $ 955            $ 1,566
Current maturities of long-term debt               352              636
Current portions of capital lease                  2,217            965
obligations
Accounts payable                                   16,377           17,358
Accrued liabilities                                6,012            5,749
Customer deposits                                  4,063            17,328
Liabilities held for sale                         3,860          4,833    
Total current liabilities                         33,836         48,435   
                                                                  
LONG-TERM LIABILITIES:
Long-term debt, net of current maturities          2,956            4,797
Long-term capital lease obligations, net of        641              975
current portions
Other                                             2,169          825      
Total long-term liabilities                       5,766          6,597    
                                                                  
COMMITMENTS AND CONTINGENCIES
                                                                  
STOCKHOLDERS' EQUITY:
Preferred stock, $0.001 par value;
10,000,000 shares authorized; no shares
issued
or outstanding                                     -                -
Common stock, $0.001 par value; 30,000,000
shares authorized; 14,197,792 and
13,977,920 shares issued and outstanding as        14               140
of December 31, 2012 and 2011, respectively
Additional paid-in capital                         373,605          370,123
Accumulated deficit                               (270,311 )      (252,404 )
Total stockholders' equity                        103,308        117,859  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $ 142,910       $ 172,891  
                                                                             

BROADWIND ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
                                                              
                  Three Months Ended December      Twelve Months Ended
                  31,                              December 31,
                  2012             2011            2012            2011
                                                                   
                                                                   
Revenues          $  44,908        $  55,093       $  210,707      $ 185,854
Cost of sales        44,102           54,087          202,257        178,536
Restructuring       576            42            1,614        131     
Gross profit        230            964           6,836        7,187   
                                                                   
OPERATING
EXPENSES:
Selling,
general and          4,976            6,509           21,634         26,316
administrative
Intangible           665              215             1,759          859
amortization
Restructuring       259            141           740          441     
Total operating     5,900          6,865         24,133       27,616  
expenses
Operating loss      (5,670  )       (5,901  )      (17,297  )    (20,429 )
                                                                   
OTHER (EXPENSE)
INCOME, net:
Interest             (658    )        (272    )       (1,711   )     (1,117  )
expense, net
Other, net           513              610             1,271          1,169
Restructuring       (58     )       (95     )      (144     )    (297    )
Total other
(expense)           (203    )       243           (584     )    (245    )
income, net
                                                                   
Net loss from
continuing
operations           (5,873  )        (5,658  )       (17,881  )     (20,674 )
before
provision for
income taxes
(Benefit)
provision for       5              44            26           68      
income taxes
LOSS FROM
CONTINUING           (5,878  )        (5,702  )       (17,907  )     (20,742 )
OPERATIONS
LOSS FROM
DISCONTINUED        -              (22     )      -            (1,206  )
OPERATIONS, NET
OF TAX
NET LOSS          $  (5,878  )     $  (5,724  )    $  (17,907  )   $ (21,948 )
                                                                   
                                                                   
NET LOSS PER
COMMON SHARE -
BASIC AND
DILUTED:
Loss from
continuing        $  (0.41   )     $  (0.41   )    $  (1.27    )   $ (1.79   )
operations
Loss from
discontinued        -              (0.00   )      -            (0.10   )
operations
Net loss          $  (0.41   )     $  (0.41   )    $  (1.27    )   $ (1.89   )
                                                                   
WEIGHTED
AVERAGE COMMON
SHARES               14,166           13,975          14,058         11,617
OUTSTANDING -
Basic and
diluted
                                                                             

BROADWIND ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)

                                            For the Years Ended December 31,
                                              2012               2011
                                                                   
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                      $  (17,907  )        $ (21,948 )
Loss from discontinued operations               -                 1,206   
Loss from continuing operations                  (17,907  )          (20,742 )
                                                                   
Adjustments to reconcile net cash used in
operating activities:
Depreciation and amortization expense            16,537              14,534
Impairment charges                               -                   -
Change in fair value of interest rate            -                   -
swap agreements
Deferred income taxes                            -                   -
Stock-based compensation                         2,833               1,906
Allowance for doubtful accounts                  163                 1,004
Common stock issued under defined                523                 150
contribution 401(k) plan
Loss on disposal of assets                       548                 474
Changes in operating assets and
liabilities:
Accounts receivable                              5,109               (4,888  )
Inventories                                      1,367               (5,616  )
Prepaid expenses and other current assets        519                 (10     )
Accounts payable                                 (1,165   )          (5,008  )
Accrued liabilities                              170                 (648    )
Customer deposits                                (13,256  )          8,447
Other non-current assets and liabilities        1,677             93      
Net cash used in operating activities of        (2,882   )         (10,304 )
continued operations
                                                                   
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of logistics              375                 952
business and related note receivable
Purchases of property and equipment              (5,738   )          (4,708  )
Proceeds from disposals of property and          113                 1,874
equipment
Decrease (increase) in restricted cash          546               (706    )
Net cash used in investing activities of        (4,704   )         (2,588  )
continued operations
                                                                   
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of stock              -                   11,697
Payments on lines of credit and notes            (78,785  )          (1,517  )
payable
Payments on related party notes payable          (2,791   )          (209    )
Proceeds from lines of credit and notes          77,620              2,311
payable
Payments for debt issuance costs                 (638     )          -
Principal payments on capital leases            (644     )         (977    )
Net cash (used in) provided by financing        (5,238   )         11,305  
activities of continued operations
                                                                   
DISCONTINUED OPERATIONS:
Operating cash flows                             -                   (851    )
Investing cash flows                             -                   -
Financing cash flows                            -                 (83     )
Net cash used in discontinued operations        -                 (934    )
                                                                   
Add: Cash balance of discontinued                -                   530
operations, beginning of period
Less: Cash balance of discontinued               -                   -
operations, end of period
                                                                   
NET (DECREASE) INCREASE IN CASH AND CASH         (12,824  )          (1,991  )
EQUIVALENTS
CASH AND CASH EQUIVALENTS, beginning of         13,340            15,331  
the year
CASH AND CASH EQUIVALENTS, end of the         $  516              $ 13,340  
year
                                                                   
Supplemental cash flow information:
Interest paid, net of capitalized             $  1,450             $ 1,029
interest
Income taxes paid                             $  26                $ 34
Non-cash investing and financing
activities:
Issuance of restricted stock grants           $  1,701             $ 900
Common stock issued under defined             $  523               $ 150
contribution 401(k) plan
                                                                             

BROADWIND ENERGY, INC. AND SUBSIDIARIES
SELECTED SEGMENT FINANCIAL INFORMATION
(IN THOUSANDS)

             Three Months Ended December      Twelve Months Ended December
               31,                                31,
               2012            2011              2012            2011
REVENUES:      (unaudited)                        (unaudited)
Towers and     $  25,634        $  34,576         $  135,221       $ 116,926
Weldments
Gearing           14,308           15,600            55,660          54,296
Services          6,069            5,481             22,106          16,291
Corporate        (1,103  )       (564    )        (2,280   )     (1,659  )
and Other
Total          $  44,908       $  55,093        $  210,707      $ 185,854 
revenues
                                                                   
OPERATING
(LOSS)
PROFIT:
Towers and     $  (540    )     $  28             $  2,766         $ 5,187
Weldments
Gearing           (2,236  )        (2,210  )         (7,626   )      (10,733 )
Services          (854    )        (1,385  )         (4,185   )      (5,247  )
Corporate        (2,040  )       (2,334  )        (8,252   )     (9,636  )
and Other
Total
operating      $  (5,670  )     $  (5,901  )      $  (17,297  )    $ (20,429 )
loss
                                                                   

The Company reports its financial results in accordance with U.S. generally
accepted accounting principles (GAAP). However, the Company’s management
believes that certain non-GAAP financial measures may provide users of this
financial information with meaningful comparisons between current results and
results in prior operating periods. Management believes that these non-GAAP
financial measures can provide additional meaningful reflection of underlying
trends of the business because they provide a comparison of historical
information that excludes certain infrequently occurring or non-operational
items that impact the overall comparability. See the table below for
supplemental financial data and corresponding reconciliations to GAAP
financial measures for the three and twelve months ended December 31, 2012 and
2011. Non-GAAP financial measures should be viewed in addition to, and not as
an alternative for, the Company’s reported results prepared in accordance with
GAAP.


Consolidated              Three Months Ended       Twelve Months Ended
                           December 31,              December 31,
                           2012        2011         2012         2011
                           (unaudited)               (unaudited)
Operating Loss             $ (5,670 )  $ (5,901 )   $ (17,297 )  $ (20,429 )
Depreciation                 3,423       3,408        13,919       13,674
Amortization                 665         215          1,759        859
Share-based compensation     886         512          3,505        2,025
and other stock payments
Other Income                 513          515          1,271         873
Restructuring Expense       835        279        2,354       869     
Total Adjusted EBITDA      $ 652       $ (972   )   $ 5,511      $ (2,129  )
(Non-GAAP)
                                                                   

Towers and          Three Months Ended December 31,  Twelve Months Ended
Weldments Segment                                      December 31,
                     2012               2011          2012        2011
                     (unaudited)                       (unaudited)
                                                                    
Operating Profit     $   (540    )       $   28        $  2,766     $  5,187
Depreciation             954                 870          3,676        3,508
Share-based
compensation and         145                 107          720          477
other stock
payments
Other Income             463                 563          992          1,229
Restructuring           130               -           130         -
Expense
Total Adjusted       $   1,152          $   1,568     $  8,284     $  10,401
EBITDA (Non-GAAP)
                                                                       

                 Three Months Ended December     Twelve Months Ended
                  31,                              December 31,
Gearing Segment   2012            2011            2012           2011
                  (unaudited)                      (unaudited)
Operating Loss    $  (2,236  )     $  (2,210  )    $  (7,626  )    $ (10,733 )
Depreciation         1,893            2,210           8,378          9,063
Amortization         665              215             1,759          859
Share-based
compensation         147              94              602            371
and other stock
payments
Other Income         (1      )        6               16             (437    )
(Expense)
Restructuring       548            121           1,910        412     
Expense
Total Adjusted
EBITDA              1,016          436           5,039        (465    )
(Non-GAAP)
                                                                   

                                               
Services         Three Months Ended December   Twelve Months Ended December
Segment           31,                            31,
                  2012          2011            2012            2011
                  (unaudited)                    (unaudited)
Operating Loss    $  (854  )     $  (1,385  )    $  (4,185  )     $  (5,247  )
Depreciation         563            292             1,800            937
Share-based
compensation         65             39              405              149
and other stock
payments
Other Income         58             (4      )       267              135
(Expense)
Restructuring       119          -             265            -       
Expense
Total Adjusted
EBITDA            $  (49   )     $  (1,058  )    $  (1,448  )     $  (4,026  )
(Non-GAAP)
                                                                             

                                                              
Corporate and     Three Months Ended December      Twelve Months Ended
Other             31,                              December 31,
                  2012             2011            2012             2011
                  (unaudited)                      (unaudited)
Operating Loss    $  (2,040  )     $  (2,334  )    $  (8,252  )     $ (9,636 )
Depreciation         13               36              65              166
Share-based
compensation         529              272             1,778           1,028
and other stock
payments
Other Income         (7      )        (50     )       (4      )       (54    )
(Expense)
Restructuring       38             158           49            457    
Expense
Total Adjusted
EBITDA            $  (1,467  )     $  (1,918  )    $  (6,364  )     $ (8,039 )
(Non-GAAP)
                                                                             

Contact:

Broadwind Energy, Inc.
Joni Konstantelos, 708.780.4819
joni.konstantelos@bwen.com
or
LHA
Jody Burfening/Carolyn Capaccio, 212.838.3777
ccapaccio@lhai.com