Hello, and welcome to the Q1 2014 Broadwind Energy, Inc. Earnings Conference Call. My name is Dan, and I will be your operator for today's call. [Operator Instructions] I will now turn the call over to Joni Konstantelos. Joni, you may begin.

Thank you. Good morning, and welcome to Broadwind Energy's First Quarter 2014 Earnings Conference Call. With me today are Broadwind's President and CEO, Peter Duprey; and Broadwind's Executive Vice President and CFO, Stephanie Kushner. This morning's earnings news release is available on our website at bwen.com. Before we begin today, I would like to caution you that this call will include some forward-looking statements regarding our plans and market outlook, and also will reference some non-GAAP financial measures. Actual results may differ materially from these forward-looking statements. Please refer to our SEC filings and consider the incorporated risks and uncertainties disclosed there, including our Form 8-K and the attached news release filed with the SEC this morning and our Form 10-Q, which will be filed later today. We assume no obligation to update any forward-looking statements or information. Having said that, I will turn the call over to our President and CEO, Pete Duprey.

Thanks, Joni, and thanks, everyone, for joining the call. This morning we reported our financial results for the first quarter of 2014. Overall, we reported another solid quarter showing 29% topline growth, and more than doubling EBITDA compared to Q1 2013. Looking at the 3-year trend of the business, we're generating strong revenue and EBITDA growth, and 2014 is shaping up to be one of our best years. Our Wind Tower business continues to deliver outstanding results that are driving Broadwind closer to positive EPS. Even with the extreme cold weather in the Midwest, we produced 108 towers in the quarter, a 50% increase over Q1 last year, and we remain on track to produce a record 500 towers this year. Our Gearing segment endured another tough quarter, facing both internal and external challenges. We have a healthy backlog, but production and execution challenges hampered our ability to ship and invoice customers. Weather delays and ongoing labor contract negotiations also impacted the quarterly results. Clearly, we are not where we need to be with our Gearing business. Local management remains very focused on improving on-time delivery and quality to ensure Gearing is competitive and profitable in the long-term. After a tough 2013, our Services segment saw a nice uptick in demand for blade repairs and other major corrective services in the quarter. However, with the absence of a large industrial drivetrain assembly contract that we had in our Adeline facility a year ago, this segment's results were down considerably compared to Q1 2013. I am pleased to report that our new Services leader is in place, and we are focused on leveraging our robust infield service capabilities in wind and industrial applications. Turning to orders, we booked $16 million in net new orders during the quarter. Our towers business booked…

Thanks, Pete. I'm referring to Slide 8. On $58.8 million of revenue our Q1 gross profit margin, excluding restructuring, rose to 9.1%, up sequentially from 7.8% in the fourth quarter of 2013, and up more than 50% from the first quarter of last year. Although sales came in a little lower than my $61 million to $63 million guidance, all of our profit measures exceeded guidance. Since Q1 and Q4 are seasonally the weakest for Broadwind, our progress in the first quarter positions us well for a full year gross margin above 10%. Q1 operating expense was $6.1 million, down $600,000 from the prior year, despite the additional expenses associated with the accounting investigation. More than offsetting these incremental expenses, were lower restructuring expenses and lower insurance expense. Insurance expense reduction reflects the fact that with our improved financial position we are now able to self-insure for worker's comp and health care, which has reduced the out-of-pocket cost to the company. Additionally, our intangible amortization expense has declined by $554,000 due to fully amortizing a portion of the customer intangibles associated with our acquired businesses. Excluding restructuring, operating expenses as a percent of sales was 10.2% in the quarter, down 3.1 percentage points from 2013. Our adjusted EBITDA was $2.8 million, ahead of guidance and more than double last year. And the EPS loss of $0.07 improved sharply from the prior year $0.32 loss. Despite some weather and supply chain challenges, Towers delivered a strong quarter, producing and invoicing 108 towers. Section count was 352, up 24% from last year's Q1 and up 6%, sequentially, from 332 sections in Q4 of 2013. Disappointingly, our Weldments revenue was down from a strong prior year comparison. Although we have built out our organization to support this business, we are still experiencing the…

[Operator Instructions] I do have a question from Katja Jancic from Sidoti & Company. Katja Jancic - Sidoti & Company, LLC: Could you break the backlog of $267 million into specific segments? Is that possible?

It's -- I can give it you approximately. So our Service business is pretty much a book and sell. So probably would normally have just a couple of million dollars in backlog there. Our Gearing we run 4 to 6 months ahead, so something in the low $20 millions, and then, really the rest of it is Towers. So Towers tends to be a longer buy cycle and also we've been in a tighter tower market. Katja Jancic - Sidoti & Company, LLC: So it's mostly basically Towers. Now I know that there were no new orders for Towers. And I know, Pete mentioned that, we expect this to happen in the second and third quarter. Do you see any pullback, that it's slowing down? Is there any fear that because of the delay in the extension of the credits? What do you see out there?

No, as we talk to our customers, I think there is still pretty confident that 2015 -- actually, I think a lot of them are saying 2015 is expected to have more installs than '14. So I think they're still pretty confident, and we're pretty confident that we'll be able to fill up 2015. And as I said in the comments, I would expect Q2 and Q3 is when we'll make good strides towards filling that up. Katja Jancic - Sidoti & Company, LLC: I just wanted to double check something, you said in the bear case, you would still have around 300 towers orders, would be still possible?

Yes, I think so. I mean, in many respects, 2013 was somewhat of a proxy [ph], though we're -- only 1 gigawatt got installed. But we had a pretty robust year, I think we did 400 towers. So I think even in the bear case, going from 500 to 300 is pretty reasonable. Assuming the other assumptions line up with natural gas not falling any further and Congress behaving somewhat.

I think, I'm not sure where you're -- what you're thinking, Katja, but I don't think we would believe that a bear case would be likely as early as 2015.

Right.

That's really, that comment was kind of going further out. We think 2015 is still enjoying the benefits of a lot of projects that were started before the end of '13.

Yes, because you've got the 2-year from PTC renewal, and the treasury guidance that said they will not question whether a project would get the production tax credit as long as it completed by the end of 2015. So we think '14 and '15 are going to be very good years in the wind market. And what we're hearing is that some projects may in fact spill over into '16, where there might be little more PTC risk, but a lot of owners are still going forward with those. So that's why I think there was a bit of a change in the outlook for '16 being a little bit better than what we had reported previously. And then, the question is what's going to happen in '17. Katja Jancic - Sidoti & Company, LLC: Regarding the Gearing segment, I know that it's a turnaround story. What's your expectation to growth, once the restructuring is completed?

Yes. We talked a lot about this in the past. I think our 2 big initiatives are getting more growth on the sales side. So we've gone out, we've secured manufacturers reps who have years and years of experience in gearing. They're bringing new customers to the table. It takes a while to go through that qualification process. So we are working on the growth side. And we are working on making sure we're getting better throughput, lower waste through the factory. Consolidation is certainly helping in that. We're getting a lot more visual in the tools that we're using, so we know where our bottlenecks are. So between those 2 things, we believe those are the right steps to turn that business around. I think growth has been the biggest issue. For Q2, I would expect to see a good increase in orders compared to Q1 and show steady progress in that business. Katja Jancic - Sidoti & Company, LLC: Can you provide any comment on, percentage wise, how much growth you see in that segment? or you expect to see?

Well, I think on the last call I said, for 2014, we would expect to see modest top line growth of around 5%. I think what we're focused on is what's our order intake in Q2, Q3 and Q4, which should start to be a predictor of what 2015 is going to look like, and I would expect more than 5% growth in 2015.

[Operator Instructions] And I have a question from James Ward from Macquarie Capital.

Can you please clarify where you stand now from a labor perspective? And particularly, how you see the impact of labor on the first quarter? And how it will be different, going forward?

Are you speaking about Gearing?

Yes.

So we did do a reduction of force of about 25 people in January. And we are not anticipating any further adjustments to our labor force. And I think, as you may have seen in our disclosures, that the union contract did expire and we are continuing to negotiate with the union. I think that's progressing maybe a little more slowly than I would've thought. I think one of the sticking points is around health care costs and the sharing of that, which is, I don't think, anything unusual in union contracts these days; and trying to educate our workforce that they need to participate in better understanding and helping to save in our health care costs. So we want them to be more active in managing the costs.

[Operator Instructions]

All right, I guess if -- are there any more?

Yes -- no, sorry, go ahead Pete. No more questions on my end.

Okay. So to kind of wrap it up. I think Q1 was a great start to the year. For Q2, in Gearing, we're focused on work growth and achieving positive EBITDA. In Services, I think the key is going to be order growth and showing some progress in expanding into some of the industrial services around drivetrain repair. And then, in Towers, we need to execute on the order book that we have and start to fill up the order book for 2015, and then, start to show some progress in the oil and gas infrastructure space around our Weldments business, our Weldments product line. So again, I think it's great quarter, and I look forward to sharing the results of Q2 on our next call. Thanks.

Okay. Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.