Greetings, and welcome to Broadwind's third quarter 2023 results conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Tom Ciccone. Thank you. You may begin. Good morning, and welcome to the Broadwind third quarter 2023 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 the 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. Thanks, Tom, and welcome to those joining us today. We delivered a strong third quarter performance, yielding significant year-over-year increases in revenue, net income, margin realization, and adjusted EBITDA. We generated double-digit revenue growth year over year in all segments, with our largest segment, heavy fabrications, realizing 25% revenue growth due to improved demand for wind tower sections, augmented by shipments of our new high-flow natural gas pressure reduction systems, or PRSs. Our results benefited from a combination of improved operating leverage, price discipline, a higher value sales mix, and improved process efficiencies, including early benefits from our recent investments in coatings, automation, and weld prep technology. These actions, plus the benefit provided by the IRA's Advanced Manufacturing Tax Credit, resulted in adjusted EBITDA of more than 13%, an improvement of over 900 basis points versus Q3 2022. Continued stability across our wind and diverse non-wind markets has contributed to improved visibility across our business as we look to the remainder of this year, leading us to reaffirm our Adjusted EBITDA guidance for the full year 2023. We booked $16 million of orders in the third quarter, down from $84 million in the prior year, due primarily to the timing of tower orders, as a major customer placed a large, longer-term order in late 2022 that pulled forward what had historically been a series of smaller, ratable orders. Partially offsetting this decline in tower orders was a 47% increase in industrial fabrication orders, primarily from the mining sector. Gearing orders were down approximately 80% from the prior year due to reduced demand from oil and gas and industrial customers, while orders within our industrial solutions segment declined 20% due to the timing of demand for new gas turbine content. Entering the fourth quarter, we continue to operate on plan. We're focused on expanding our product mix within higher-margin adjacent markets, with the development of our low-flow PRS unit, including an RNG version, on track for release in 2024. We are also continuing with our new technical advisory sessions, during which we provide our gearing customers with on-site diagnostic, maintenance, and service training to help optimize the performance, reliability, and longevity of their equipment. These sessions have led to increased repair and replacement service orders from both new and existing gearing customers. Operationally, the lean operating principles, process controls, and continuous improvement projects we've implemented at all locations are showing good results in asset utilization and productivity. Our relentless focus on team member safety, quality systems, and skills training has allowed us to continually meet the quality and delivery performance much valued by our customers. We generated total revenue of $57 million in the third quarter, as we experienced increases in all divisions. We generated $7.6 million of Adjusted EBITDA in the quarter, an increase of approximately $5.7 million versus the prior year period, continuing the strong performance we've seen this year so far. Our consolidated backlog at the end of Q3 was approximately $220 million, up $89 million from the prior year period. Quoting activity in our non-wind markets remains stable, and we expect good order flow to continue through the balance of this year, notwithstanding the softness in the oil and gas gear market. Within our heavy fabrication segment, Q3 revenue was $38 million, a 25% increase year-over-year, led by increases in wind tower sales and our proprietary natural gas pressure-reducing systems, offset by reductions in our mining, construction, and industrial markets. Gearing revenue was $11 million, a 12% increase year-over-year, as customer activity continues to be strong within both the industrial and steel sectors. Industrial solutions revenue was $7 million, up 85% year-over-year, led by increases in new gas turbine content to both domestic and international customers. In summary, I'm pleased with the operating performance of all divisions through the third quarter and look forward to continuing this momentum through the remainder of the year as we continue to execute our strategy. With that, I'll turn the call over to Tom for a discussion of our third quarter financial performance. Thank you, Eric. Turning to slide 5 for an overview of our third quarter performance. We had a strong third quarter. We experienced both sequential and year-over-year growth in revenue, gross margin, and EBITDA. In Q3, we recognized $7.6 million of EBITDA, compared to $1.9 million in the prior year third quarter. The $5.7 million EBITDA increase and improved margin realization is due primarily to the benefits attributable to the advanced manufacturing production tax credits, or AMP credits, we've been earning this year associated with our wind tower production, together with solid overall operational execution. We generated net income of $4.4 million, or $0.20 per diluted share in the third quarter. Turning to slide 6 for a discussion of our heavy fabrication segment. Third quarter revenues were $38.3 million, up both sequentially and versus the prior year quarter. We recognized 190 tower sections in the current year quarter versus 138 in Q2 and 145 in the prior year third quarter. These increases were largely driven by the 42 tower sections sold from our Manitowoc facility, which had lower sections sold in the comparable periods. During the third quarter, we recognized segment EBITDA of $6.9 million, an improvement of $5.4 million versus the prior year period, primarily driven by the increased tower sections sold and the AMP credits recognized in the current year period. Turning to slide seven. Gearing orders slowed significantly in Q3, totaling $3 million, a $12.5 million, or 81% decrease versus the prior year quarter. The majority of the decrease was attributable to the reduction in oil and gas demand that we've been experiencing. Segment revenue was $11.4 million, up $1.2 million compared with the prior year third quarter, but EBITDA decreased $300,000- $0.9 million due to a less profitable mix of products sold and higher overhead costs when compared to the prior year quarter. Turning to slide 8 for a discussion of our industrial solutions segment. Industrial solutions had a strong third quarter, with the highest revenue total since Broadwind's acquisition of Red Wolf in early 2017. While orders of $4.9 million are down both sequentially and versus the prior year third quarter, our backlog of $15.4 million still remains at an elevated level and represents the third highest quarterly total since acquisition. We continue to see strong demand for our core natural gas turbine offerings. Third quarter segment revenues increased to $7.4 million from $4 million in the prior year period, reflective of the record-high backlog we entered the third quarter with. EBITDA increased to $1 million from breakeven in the prior year period, consistent with the increased revenue, as well as a more profitable mix of products sold when compared to the prior year quarter. Turning to slide 9. Our quarter-end liquidity remains adequate, with cash and availability under our credit facility of nearly $14 million. During Q3, we did see a significant increase in our net operating working capital of just over $7 million, due primarily to an increase in AR, as we changed billing and collection terms with a major customer and because of the significant sales in September, the largest month of year to date. During the fourth quarter, we expect operating working capital balances to decrease, and as a result, we will be carrying lower debt. As a reminder, as I pointed out in the past few quarters, it should be noted that the AMP credits are not part of our traditional operating working capital calculation, and we do expect this receivable balance to continue to increase until monetized. At the end of the third quarter, our AMP credit receivable totaled more than $11 million, representing credits earned under the IRA. We are currently evaluating the sale of these earned credits to unaffiliated institutional third parties, an approach which, if pursued, would accelerate monetization of these credits during 2024. Finally, as Eric mentioned, we are reaffirming our full-year revenue and Adjusted EBITDA guidance at this time, positioning us for a strong finish to the year. That concludes my remarks. I will turn the call back over to Eric to continue our discussion. Thanks, Tom. Now allow me to provide some thoughts entering 2024. First, beginning with our heavy fabrication segment. In January 2023, you'll recall that we announced we'd entered into a supply agreement for wind tower purchases valued at approximately $175 million with a leading global wind turbine manufacturer. Under the terms of the supply agreement, order fulfillment is to occur beginning in 2023 through year-end 2024. In early November 2023, the parties discussed their joint intent to shift approximately half of the contracted tower section orders initially planned for 2024 into 2025, while maintaining the total number of tower sections stipulated under the supply agreement. Importantly, this shift will still allow us to support a ratable base level of tower production into 2025. In our gearing segment, efforts to broaden our sales mix into less cyclical markets to achieve a more balanced revenue stream going forward remain important for us, and we've reorganized our commercial team to accelerate this transition. Additionally, in the latter part of Q3, we took actions to reduce overhead costs in response to the reduction in demand from the oil and gas market, while further leveraging our investments in automation made over the last several years. In industrial solutions, we continued to add process capabilities that equip us to grow our share of wallet with existing accounts while adding new ones. We've upgraded our in-house engineering capabilities and plan to add plasma cutting and CNC machining over the next several months to continue our growth in power generation, renewables, and other markets. I'm pleased that we booked more than $1 million of wind and solar orders in this business through Q3, and have continued interest from the wind repowering market, which we anticipate will yield additional orders for this division. In summary, I'm pleased with the strong operational performance from our team so far this year, including the good result we achieved in Q3. We continue to focus efforts to build a solid foundation for steady, profitable growth, serving the energy transition and other key markets, and look forward to capitalizing on improved market demand in the years ahead. We will prudently maintain our facilities, equipment, and control overhead costs while we invest in the vital core talent needed to grow our business as we leverage our presence in renewables, clean fuels, and power generation, while establishing new footholds within other complementary markets, such as energy transition. With that said, I will turn the call over to the moderator for the Q&A session. Thank you. At this time, we'll be conducting a question-and-answer session. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please, while we poll for questions. Our first question comes from Eric Stine with Craig-Hallum. Please proceed with your question. Hi, Eric. Hi, Tom. Hi, Eric. Hey, maybe if we could just start with the guidance. So, you know, just trying to figure out or talk about what is implied from the fourth quarter. I mean, it's a pretty wide range. It would also seem to imply that you know don't have a whole lot of wind activity, given the EBITDA number that's implied. So maybe... I mean, it is a wide range. Could you just talk about what the factors would be to get you to the low end or the high end of that range, and some things we should consider as we think about Q4? Yeah, well, I think, first of all, we, we tend to be conservative as management, and we always be conservative as management. There's some trepidation with the oil and gas market as we have customers requesting for pushouts, so we're negotiating with those customers to, to include most of that in 2023 as we can. So that's the reason for, a primary reason for our, our caution, and reaffirming our guidance for, for 2023. Then is that fair to say, though? I mean, given the EBITDA, and I get it about being conservative, but given, you know, I guess implying break-even to positive $2 million, I mean, that would seem to say that you have a lower or much lower level of wind activity, tower activity in Q4. Is that the correct way to think about it? Well, it'd be lower than Q3, because we finished—we had multiple tower orders that we finished in Q3. There would be lower activity in Q4 than in Q3, but not, not de minimis. So please take that as a conservative estimate. Okay. Nope, I guess okay. Yeah, that makes sense. Maybe then just turning to the decision with your large customer to, you know, just kind of, adjust the timing of the tower order. You know, curious, I mean, I know that was going to be recognized ratably, third quarter, fourth quarter, and throughout 2024. I mean, is it as simple as taking that, you know, what the quarterly run rate number would be and cutting it in half? And then also, you know, now you would seem to have some open capacity in Abilene, and given the, you know, that that's a very good location, is there a possibility that you are able to fill some of that? Sure. I mean, while 50% capacity utilization is preferred to 25% divided by two years, as an operator, 25% at least gives us that ratable volume, as we talked about before, Eric, across the whole year and for 2025 as well. And you're correct. Now that we have open capacity or more open capacity in that plant, we'll certainly market it to the other OEMs. Remember, there are four OEMs. This was one of the four, and the other three are still viable to get orders from for that same time period. So yes, our mission is, as it always has been, to fill that capacity. Got it. And, you know, last thing, just the commentary. I guess, industrial solutions more positive than gearing. I mean, you know, without kind of asking for a number, I mean, directionally, did, as you sit here today and some of the cost cuts that you've taken in gearing, I mean, is that a potentially down year in 2024 and industrial solutions would potentially be flat to up? Yeah, I would say that's a good estimate. Oil and, I mean, our gearing business is the most diverse, but it's full of industrial markets. And frankly, as interest rates continue to rise, as the Fed continues to try to control inflation, it does and can have an impact on those industrial markets. On the other hand, industrial solutions, if you remember, is a international company. We ship both domestically and internationally. So some of the domestic drivers, such as interest rates, as inflation, don't necessarily impact international. So I would say that would be a good estimate, Eric. Okay, thank you. Thank you. Thanks, Eric. Our next question comes from Amit Dayal with H.C. Wainwright. Please proceed with your question. Thank you. Good morning, everyone. Appreciate taking my questions. Eric, with respect to the pipeline in the different segments, could you give us some sense of, you know, what you are working with right now? Pipeline. If I start with industrial solutions, you're talking about pipeline of potential orders? Yes, yes. You know, sales pipeline, what you- Yeah. Is there any large potential? You know, I'm just trying to get a sense of, you had this big order last year. Is there something like that in this pipeline going forward? Oh, okay. If you're talking about wind, I wasn't sure if you... So in terms of wind? Yeah, wind or industrial. Yeah, wind or industrial. Okay. Any color across the segment? Okay, let me start with wind. Wind, it's, as I've mentioned before, notwithstanding large orders, which we had received and our competition had received, the general other OEMs continue with their ratable PO-to-PO type of bids and orders, and those continue. So I'd say the pipeline would be normal. There is a general, I'd say, slowness in the market as expected. We said that 2024 would be a transition year, and 2025 and 2026 and beyond would be much stronger. That. So the Wood M ac and some of our exhibits indicate that. So that is as expected. We still believe the IRA is going to generate the long-term exuberance in the wind market as anticipated. So there's your answer for that, for that market, for your wind market. For industrial solutions, which is the natural gas turbine market, that actually looks bullish. Natural gas turbine sales across the world, this year, I think, are the second highest since we did the acquisition. So we do expect good order flow from that business for the next year to 18 months. And within gearing, as I mentioned, gearing is our most diverse business. They service industrial markets such as oil and gas, as I mentioned before, marine, steel, and material handling. Those markets are subject to, I think, you know, some interest rates, dampening of demand, but yet we do have strong quote input in our quote funnels that we think we're going to win. So I'd expect a softer year in 2024 than 2023, but certainly not materially down at this point. Okay. All right, thank you. And then from a raw material cost perspective, what are you seeing in terms of, you know, potential increases on that front and impact from any of those types of increases on margins going forward? Well, remember, we're starting to see a bit of softening in steel, but it's still, especially for, plate steel, which is used in wind turbine towers, it's still at a multi-year high, but there's a bit of a softening, call it between 5 and 10% softening. So we think that could possibly help, profitability and the cost structure of wind turbine towers and wind turbines going forward. I think that's. As far as overall inflation, we're seeing stable pricing. As a reminder, also, in the wind market, we are pass-through with regard to, with regard to our input costs, primary input costs, so it wouldn't really impact our margins. It would impact our gross margins if steel goes up, as we've talked before, Amit. Amit, the only thing I'll add to that is, you know, you know, where we've been, if go back a couple of years in 2020, you know, the price of steel plate was a third to maybe a half of where it is today. It's, you know, just for some perspective, we are, we are still at these elevated levels of steel pricing. So the headwinds that I think are causing this, what I'm calling a temporary move to the right, with regard to wind turbines, is, interest rates are definitely affecting financials for projects and cost inputs. Inflation, like Tom said, steel, two or three times the price it was several years ago, are definitely causing some of the EPCs and the developers to seek higher PPAs, purchase price agreements or power purchase agreements, from utilities to be able to enable the project. So I think that is a short-term dynamic that we're all facing in the market, which is causing things to move to the right a bit. Okay, understood. Thank you for that. And just the last one on monetizing these, you know, manufacturing credits. I mean, I know you said this is potentially, you know, something that will come into play in 2024, but is it going to come through with maybe one, you know, I guess, customer or party, or are you talking to multiple parties about, you know, monetizing these credits? Yeah, thanks for the question. Yeah, we've been talking to multiple parties about this, and you know, the structure changes depends on who you're talking to. There's a potential for one buyer to purchase all of them for this year and next year. There's potential for multiple buyers. So it kind of just depends on the deal that's out there. So, but we are looking to monetize these as soon as possible, possibly 2023, if we can. We're just working towards that. Okay. That's all I have, guys. Thank you so much. Thank you. Thanks, Amit. Our next question comes from Martin Malloy with Johnson Rice. Please proceed with your question. Yes. My first question, you mentioned a new product offering low pressure for RNG industry. Could you maybe talk- Mm-hmm about that product and the scope there? Yeah, we've developed proprietary products that service the natural gas virtual pipeline market. And maybe you remember from previous calls, that market services it replaces hard pipeline. So it takes stranded natural gas, compresses it, takes it to the point of use, whether it be a hospital, a different natural gas line, if it needs to be maintained, a frack site, and decompresses it at the site, so it can be used in a normal at a normal pressure. So we develop technology to do that. So we first developed what we call the medium flow, which can handle, call it maybe 2 trailers at a time, decompressing. A high flow, which we released earlier this year, which is up to 4 trailers at a time. And this low flow, which is obviously a lower flow, lower need, lower demand, and it's also the least expensive. So we think it can fit the price point that some of our customers are looking for. So it completes the suite of products for this product family, and we think we could serve the market very well with those three delineations. Also, RNG, which is renewable natural gas, that tends to be smaller in volume, and so you don't need the higher pressure management as you would in our medium flow or a high flow unit. That's why the renewable natural gas version is part of the low flow unit. Okay. Great. Just for a follow-up question, just wanted to ask about acquisition opportunities. And you've talked about in the past on calls, and maybe could you give us a sense of kind of the pipeline that you're seeing right now and potential acquisition opportunities to look at? Well, we're cautious. We want to make sure we do the right acquisition, the right size acquisition. But we're looking at companies that are in the precision manufacturing space, that either are or can certainly serve the energy transition. We're looking for additional and adjacent materials such as composites, lighter metals, aluminum. Everything we do, but basically right now is carbon steel. We want to make sure we can get into more materials that service the clean energy transition, such as lighter metals. But I don't have any specific ones or that I'm prepared to talk about right now. Understood. Thank you. Thanks, Marty. Our next question is from Justin Clare with Roth MKM. Please proceed with your question. Yeah, hi. Thanks for taking our questions. So- Hey, Justin. Hey, good morning. I wanted to ask about the capacity that's available at the Abilene facility here, given the change to the long-term agreements. So it looks like you have capacity that's... At least part of your capacity is open for Q1 and Q2 of 2024. Just wanted to see, you know, do you still have time to fill that capacity at this point? Or, you know, is it, is it really Q3 and Q4 that you're going to be booking into? So trying to get a sense for what the utilization could be at that facility. And then maybe if you could just comment at on the demand in that region, because it seems like it's been fairly strong recently. So maybe you can just speak to what you're seeing. Yeah, I think you're right. And if we would take this 20% capacity utilization and spread that ratably over the year, that would be good, I think, to model. We're still working out some specifics with our customer, but that would be good to model. As far as how quickly we could replace that capacity, I think as we talked before, 20 weeks in the short, maybe 26 weeks in the long term, as far as lead time. So I think we'd be booking into the latter part of Q2, 3 and 4. But I do think we're going to see some demand in that market, especially towards the latter part of 2024, for production in 2025. And just a reminder, what I said earlier, what we've seen recently, and it's quite public. There's been a lot of announcements from certain EPCs and certain developers that because of interest rates that are much higher now and some inflationary costs that are higher right now, and some supply chain delays, which frankly, we haven't seen many of, but they have, it's causing them to ask for higher power purchase agreements from utilities because their projects are being squeezed from a financial return standpoint. We've also seen more interconnection delays than we had thought we were going to see. But you're right, that southern market, that Texas-Oklahoma market, is still remains a strong market, notwithstanding some of these interconnection delays and the interest and inflation aspects that I mentioned. We still believe that the long-term impact of the IRA is going to be felt, in kind of post-2024, and that's a hot market, literally, for wind, and I think it will remain that way, in the future, Justin. Got it. Okay. That's, that's really helpful. And then just shifting to the Manitowoc facility, can you comment on if you've seen any meaningful shift in demand at that facility? You know, even looking into 2025, you know, how are our customers- Yeah, what I've seen is, as I mentioned, I thought things were gonna tend to move from the south to the north. That tends to be typical. There's a pendulum swing that seems to go north to south, depending on state's appetite for supporting renewables or whatnot. I think it is starting to move north. We have seen several what I would call meaningful inquiries for that capacity, the northern capacity, the northern plant, Justin, for late third, fourth quarter 2024. So it's coming, it's coming back. Activity, quoting activity interest is increasing, but I certainly don't have any orders to report at this time. Got it. Okay. And then maybe just one more here. You mentioned, in the prepared remarks, you know, AR had ticked up here in Q3. It sounds like there was a change in the terms with a particular customer. Can you talk about what that, what the change might have been there? And then, should we be anticipating AR moving lower in, in Q4 as, as you collect on some of the receivables generated in Q3? Yeah, you know, as I said in the prepared remarks, I think we have an expectation in Q4 that our operating working capital will decrease. I think that's that. We could just leave it at that. I think that's, you know, we don't think there's anything else meaningful there. Got it. Got it. Okay. All right. Thank you. I'll pass it on. Thanks, Justin. Thanks, Justin. We have reached the end of the question and answer session. I would now like to turn the call back to Eric Blashford for closing comments. Well, thanks everyone for joining. We appreciate your interest and look forward to coming back to you after Q4 to talk about our Q4 results. Have a great day, everyone. This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.