Good morning and welcome to the First Quarter 2015 Broadwind Energy Inc. Earnings Conference Call. My name is Brandon and I will be your operator for today. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. I will now turn the meeting over to Joni Konstantelos. Joni, you may begin.

Thank you. Good morning, and welcome to Broadwind Energy's First Quarter 2015 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 for joining the call. I am going to start with the two areas which has the most significant impact on the quarter. The Abilene turnaround and managing through the West Coast Port slowdown. Stephanie later in the call will discuss each business in more detail and our expense reduction actions. Starting with Abilene, as we discussed on our last call, production ramped up slowly in the beginning of the quarter. By the first week of March, weekly production was up to eight sections. And we’ve seen further improvements in April. We are back on track in Abilene and production has become more stable and consistent. The new leadership team has completed all customer qualifications and we continue to make improvements to the facility. So the product flows though the plant in a more balanced way. In April, we moved to one of industrial Weldment fixturing tables out of the tower facility to open up a new Weldline eliminating some bottlenecks in the process. We remained focused on continuous improvements and are conducting a number of Kaizen events to improve the flow through the facility. With respect to the Abilene production issues, I believe we’ve turned the corner. The West Coast Port delays threw us a pretty big curb off for the quarter. The key was to preserve production slots which we were able to do successfully. In mid-January, we are running out of certain foreign source components and we had to quickly convert some of our production over to a tower design where the components weren’t more readily available. This resulted in an investment – in additional inventory of about $10 million, $5 million of which was in steel plate and $5 million was finished towers where we were not able to recognize revenue since we…

Thanks, Pete and good morning. Turning to the consolidated Q1 results, our gross margin recovered slightly from Q4 of 2014, but remained very low due to the residual effects of the Abilene production issues, plus the added cost incurred to resequence power production as a result of the West Coast Port issues and also due to the weak results and $700,000 inventory charge for services. With these issues behind us, we are expecting a significant rebound in margins in Q2 and for the rest of the year. Operating expenses were down modestly to $5.7 million, although this represented a higher percentage of revenue due to the delayed power shipments. For the full year, we expect operating expenses to average under 9% of sales, about a 100% - 100 basis point improvement versus 2014. Consistent with our February earnings guidance, we’ve recorded a $1.9 million EBITDA loss and a loss per share of $0.34 in the quarter. During the first quarter, tower revenue was down sharply from 2014. Although we actually invoiced only five fewer towers. This is because in 2014, we were building a large number of four section towers, which generally have proportionately higher revenue. In fact, our year-over-year section count was down 12%, which is a more representative of the change in our activity level. The year-to-year comparison would have been much closer revenue-wise, if we have been able to recognize revenue on the 14 towers we held in inventory at quarter end. The more significant change was the $4.5 million drop in operating profit. In addition to about $1 million adverse timing impact from the towers in inventory, our production mix was less rich which depressed margins by more than $1 million and we incurred about an additional $2.2 million of cost to deal with residual issues…

So it’s a difficult quarter, but I do think we learned a lot from it. As I previously mentioned, I believe the Abilene issues are behind us. The port issue we managed through I think, quite well by not losing any production slots. As Stephanie just mentioned, Q2 will rebound nicely to $66 million to $68 million in revenue and EBITDA of $4.5 million to $6 million and with the business returning to profitability. We do expect to close a major tower order in Q2, and for the year, we believe we can achieve production and sales level of 500 towers for the year, which will be a new milestone for the business. We do expect that inventory levels will come back in the balance after the port issues are all resolved and the cash balance to return to around $10 million to $12 million by the end of the year with no borrowing on the bank line. So, I think we are returning to where we were back in Q2 with high level of revenues and profits. And now, we’ll open it up for questions.

[Operator Instructions] And from Macquarie we have Angie Storozynski online. Please go ahead.

Thank you so much. So, you mentioned the differences in margins for different powers, so can you tell us when you got your backlog, what’s roughly the split between the four piece towers and to just the standard towers, so we can actually have an insight into margins?

Well, as far as the number of sections per tower, they are all resection towers.

Okay.

As far as margins go, we don’t usually disclose the margins on our backlog.

Maybe the way I said it was confusing. So, a four section tower is necessarily more or less profitable than a three-section tower, but it does have more revenues and therefore more profit dollars.

Okay, okay. So it’s just okay how your revenues, that’s fine. And then, okay so, we are back to much where we were back in 2014, right that this is the – you will be at your – add capacity in 2015 for towers and then gearing and services are still struggling and I get it that the oil and gas sector is not helping. But, I mean, is there – do you feel like there is a need for more of a strategic shift for the gearing business? I mean, either further reducing the activities or maybe completely, I don’t know refocusing on the industrial customers more so? Is it even possible?

Hey, Angie, I would say that the gearing business over the last 18 months has gotten better even with the headwind in the oil and gas and mining markets. For the year, it’s just about at a cash flow breakeven point of view. So, some of these cost initiatives that we took at the end of Q1, I think, we’ve scaled the business so that it can be cash flow breakeven at roughly $40 million revenue rate. So, if oil and gas and mining come back, I think a lot of that incremental revenue will drop to the bottom-line. So I think we tried to scale that business to kind of where the current revenue environment is and as the market starts to return, that should start to throw more cash and we can benefit through the profitability, I think in a reasonable timeframe.

Yes.

Probably we are…

Yes, sorry.

Probably worth adding also, we didn’t actually complete the consolidation of that plant in terms of fourth quarter of last year. So we are just not starting to reap the benefits of that more materially.

Okay. And on the services side, so, are we just waiting simply for the wind farm fleet to age further, so that there is more of a pick up in the refurbishment services needs? Or, I mean, if you think about it, most of the wind farms, if you think of the peak of installations will start between 2005 and 2007, I mean, by now, I mean, they are seven or eight year old. Is that usually when the major maintenance kicks in?

Yes, I think that’s been our feeling all along is that, as the portfolio ages, we would expect to see more activity. Admittedly, the first quarter was a low level of activity and we took some cost initiatives to exit the kilowatt and community wind. Then we started to really look at the various markets – we didn’t see that as a growing market and felt that given the cost that we would just get out of those segments and then we closed the Howard or we are in the process of closing the Howard remanufacturing facility and then we would expect that Abilene would do all the gear box remanufacturing. So we are trying to take some steps, so we are taking steps on the cost side for services to get things more inline…

But that’s something that – so who provides those services? So, some of it has no demand for those services or is this just a OEMs are doing it internally?

There are some independent service providers, not too many on the gear box side. The OEMs obviously do, re-manufacturers some equipment, but part of our thesis is that, being an independent gear box re-manufacturer, we can look at the design a little bit differently and maybe reengineer some improvements to the box. That’s certainly what we do on the industrial side. And – but, it has taken us longer to get traction there.

Okay. Thank you.

We have no further questions at this time. I will now turn it back to Peter Duprey for final remarks.

Yes, just it was – I think, the underlying point here is that, we are – we’ve navigated through the tower issues. I think we’ve got that back on track. So, as we look at 2015 second quarter, we think we are going to be very much inline with Q2 of last year, which was a good quarter, a very good quarter for us. So, it’s been a rough kind of couple quarters here, but I think we’ve navigated through it and then I do appreciate you joining the call and from an investor point of view, your patience. So, thanks very much.