Broadwind Announces Sale of Four Pressure Reducing Systems

·6 min read

“Virtual Pipeline” solution delivers compressed natural gas through mobile, low emissions solution
Bridge technology reflects strategic focus on supporting clean energy transition

CICERO, Ill., May 06, 2021 (GLOBE NEWSWIRE) -- Broadwind (NASDAQ: BWEN), a diversified precision manufacturer of specialized components and solutions serving global markets, today announced that the Company has sold four Modular Pressure Reducing Systems (PRS). Broadwind has designed and engineered a product family of Modular PRS units to accommodate a broad range of flows and pressures suited to various customer requirements.

PRS modules are a key component utilized in “virtual pipelines”, an alternative method for supplying compressed natural gas to regions without established pipeline infrastructure. The PRS module plays a vital role in ensuring that stranded natural gas production is gathered, compressed, shipped, then decompressed for usage in consumption centers where it can be used as a lower emissions replacement for diesel fuel and coal. In addition to being low maintenance, convenient and flexible, Broadwind’s PRS technology has an exceptionally low environmental impact, when compared to traditional pipeline infrastructure, which requires extended construction periods and significant acreage to complete.

STRATEGIC RATIONALE

  • Critical “bridge” technology that accelerates the pathway toward a zero-carbon future. Broadwind is committed to investing in clean technologies that drive the global energy transition. PRS technology supports increased consumption of natural gas in place of other energy sources that produce comparably higher greenhouse gas emissions.

  • Leverages existing precision manufacturing expertise. Broadwind’s entrance into the PRS market leverages the Company’s existing precision manufacturing and integration expertise, while further optimizing existing production facilities.

  • Opportunity to build a complementary business of scale within a nascent market. The U.S. PRS industry is a growing, highly fragmented market serving mainly energy, industrial, commercial and transportation customers. As a business of relative scale with deep expertise in producing complex custom fabrications, Broadwind believes it is competitively advantaged to establish a growing presence within this market.

“Broadwind is committed to developing advanced technologies and supporting existing end-market applications that accelerate the clean energy transition toward net zero,” stated Eric Blashford, President and CEO of Broadwind. “While the wind and renewables markets remain our core focus, we also see the opportunity to drive adoption of complementary technologies that serve to increase consumption of cleaner-burning fuels, such as natural gas. Our entrance into the PRS module market reflects this strategic focus, while positioning us to further optimize our production across diverse end-markets.”

FORWARD-LOOKING STATEMENTS

This release contains “forward looking statements”—that is, statements related to future, not past, events—as defined in Section 21E of the Securities Exchange Act of 1934, as amended, that reflect our current expectations regarding our future growth, results of operations, financial condition, cash flows, performance, business prospects and opportunities, as well as assumptions made by, and information currently available to, our management. Forward looking statements include any statement that does not directly relate to a current or historical fact. We have tried to identify forward looking statements by using words such as “anticipate,” “believe,” “expect,” “intend,” “will,” “should,” “may,” “plan” and similar expressions, but these words are not the exclusive means of identifying forward looking statements.

Our forward-looking statements may include or relate to our beliefs, expectations, plans and/or assumptions with respect to the following, many of which are, and will be, amplified by the COVID-19 pandemic: (i) the impact of global health concerns, including the impact of the current COVID-19 pandemic on the economies and financial markets and the demand for our products; (ii) state, local and federal regulatory frameworks affecting the industries in which we compete, including the wind energy industry, and the related extension, continuation or renewal of federal tax incentives and grants and state renewable portfolio standards as well as new or continuing tariffs on steel or other products imported into the United States; (iii) our customer relationships and our substantial dependency on a few significant customers and our efforts to diversify our customer base and sector focus and leverage relationships across business units; (iv) the economic and operational stability of our significant customers and suppliers, including their respective supply chains, and the ability to source alternative suppliers as necessary, in light of the COVID-19 pandemic; (v) our ability to continue to grow our business organically and through acquisitions, and the impairment thereto by the impact of the COVID-19 pandemic; (vi) the production, sales, collections, customer deposits and revenues generated by new customer orders and our ability to realize the resulting cash flows; (vii) information technology failures, network disruptions, cybersecurity attacks or breaches in data security, including with respect to any remote work arrangements implemented in response to the COVID-19 pandemic; (viii) the sufficiency of our liquidity and alternate sources of funding, if necessary; (ix) our ability to realize revenue from customer orders and backlog; (x) our ability to operate our business efficiently, comply with our debt obligations, manage capital expenditures and costs effectively, and generate cash flow; (xi) the economy, including its stability in light of the COVID-19 pandemic, and the potential impact it may have on our business, including our customers; (xii) the state of the wind energy market and other energy and industrial markets generally and the impact of competition and economic volatility in those markets; (xiii) the effects of market disruptions and regular market volatility, including fluctuations in the price of oil, gas and other commodities; (xiv) competition from new or existing industry participants including, in particular, increased competition from foreign tower manufacturers; (xv) the effects of the change of administrations in the U.S. federal government; (xvi) our ability to successfully integrate and operate acquired companies and to identify, negotiate and execute future acquisitions; (xvii) the potential loss of tax benefits if we experience an “ownership change” under Section 382 of the Internal Revenue Code of 1986, as amended; (xviii) our ability to utilize various relief options enabled by the CARES Act, including our ability to receive forgiveness of the PPP Loans; (xix) the limited trading market for our securities and the volatility of market price for our securities; and (xx) the impact of future sales of our common stock or securities convertible into our common stock on our stock price. These statements are based on information currently available to us and are subject to various risks, uncertainties and other factors that could cause our actual growth, results of operations, financial condition, cash flows, performance, business prospects and opportunities to differ materially from those expressed in, or implied by, these statements including, but not limited to, those set forth under the caption “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2020. We are under no duty to update any of these statements. You should not consider any list of such factors to be an exhaustive statement of all of the risks, uncertainties or other factors that could cause our current beliefs, expectations, plans and/or assumptions to change. Accordingly, forward-looking statements should not be relied upon as a predictor of actual results.

ABOUT BROADWIND

Broadwind (NASDAQ: BWEN) is a precision manufacturer of structures, equipment and components for clean tech and other specialized applications. With facilities throughout the U.S., our talented team is committed to helping customers maximize performance of their investments—quicker, easier and smarter. Find out more at www.bwen.com

CONTACT: CORPORATE CONTACT Jason Bonfigt Investor@BWEN.com