Good day, ladies and gentlemen, and welcome to the Third Quarter 2012 Broadwind Energy, Inc. Earnings Conference Call. My name is Janeda, and I will be your operator for today. [Operator Instructions] I would now like to turn the conference over to Mr. John Segvich, Director of Investor Communication. Please proceed.

Thank you. Good morning, and welcome to Broadwind Energy's Third Quarter 2012 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. Second slide, please. 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, John, and thanks, everyone, for joining the call. Let's turn to Slide 3. This morning, we reported third quarter results. Revenue grew 15% over last year's Q3, and EBITDA improved by $3.9 million. As you can see from the graph on the right, this is a significant improvement over the same quarter in the past 2 years. All segments generated positive EBITDA with productivity primarily in Towers and Services improving significantly. Overall, our results demonstrate that we're making good progress in the transformation even in this difficult operating environment. Let's look at what went well and what we need to improve going forward. In our Towers and Weldment segment, our EBITDA margin improved 4.3 points over the same period last year, due to greater productivity and better expense management. This growth is evidence of our success in expanding our addressable towers market through new customers and the impact of the trade actions on imports in China and Vietnam. With close expense management, the Services business achieved positive EBITDA in Q3. As previously announced, we closed on a $20 million credit line, which positions us well for 2013 and beyond. I want to talk about the challenges. We are seeing weaker gearing demand from the natural gas and mining sectors. The feedback we've been getting on the mining sector is that inventories have been building, thus, new orders have slowed. Gearing for the offshore and onshore oil does remain strong. Let's turn to Slide 4. We'll now talk about order flow, which was affected by the following factors: Weldment orders in the quarter were $4.5 million with the backlog more than doubling from a year ago. Towers received a small order for production slots in November and part of December 2012 in Manitowoc. Services orders were down against a difficult…

Thanks, Pete, and good morning. Turning to the consolidated financial results on Slide 11. Q3 revenue was $55 million, up 15% from last year due to a higher number of more complex tower completion. Gross profit rose to $2.7 million, including $230,000 in restructuring expenses. Our gross profit margin, excluding restructuring, trended up to 5.4% of sales and included $3.5 million of depreciation. This brought of our 9-month gross margin up to 4.6%, within 40 basis points of our full year estimate of 5%. Operating expenses continue to show significant improvement versus the prior year. The $6.2 million total for Q3 included a $230,000 legal settlement concerning an outstanding claim in our Services business. Operating expenses, without restructuring, totaled 10.6% of sales, down from nearly 14% last year. Spending improved across-the-board, including lower expenses for legal and other professional fees and lower employee compensation expense. At $18.2 million for the 9 months, we are well positioned to improve upon our target expense of $25 million to $26 million for the year. In fact, we are now expecting a full your total of about $24 million. Our operating loss declined to $3.5 million, including $613,000 in restructuring charges. Adjusted EBITDA totaled $2.4 million, up sharply from a $1.5 million loss last year. We continue to record no meaningful income tax effect due to our significant tax loss carryforward. On the new post-reverse split basis, the loss per share was $0.28, less than 1/2 the prior year loss. Moving to Slide 12. Towers and Weldments recorded revenue of $37.4 million in the quarter, up 26% from 2011. As shown in the bottom right-hand table, neither period included any significant amount of fabrication, only towers. The jump in revenue reflects production of a richer mix of towers. As you can see, the megawatt…

[Operator Instructions] Your first question comes from the line of Sanjay Shrestha with Lazard Capital Markets.

It's [indiscernible] here from Lazard Capital Markets. Two questions. First, on Slide 9, so when we look at that slide, it seems to imply that industry capacity is roughly close to 4 gigawatts going in to next year, which is down substantially from the 10- to 12-gigawatt level. Now, what kind of impact are you seeing in terms of customer negotiations and is there any potential impact on pricing, given that supply-demand balance is -- supply and demand are coming closer to balance now?

Yes, I would say we're still in a somewhat tough market because the -- given the environment of low natural gas prices, it is more difficult for wind energy to compete. So everyone is pushing very hard on making sure that they have lowest possible price to make these projects work. But back to my comments on continuous improvement, and I think where we're going to see some margin improvement is making the operations a lot more efficient. There's still a lot of pressure on pricing. What we're trying to do is make sure that we are very focused on improving our productivity on our plants, being able to get more throughput through the same infrastructure that we have and that should -- we do expect that there will be some margin improvement as a result of those initiatives.

Got it. Second question on the production and the manufacturing footprint. How should be thinking about -- what part of the $5 million to $6 million in cash flow improvement is still to come versus some of the measures you ready implemented?

Stephanie, you want to take that?

At this point, really as of this fourth quarter, we'll be experiencing, I believe, it's a little over $1 million dollars of the benefit. So most of it is yet to come. And that -- a lot of that is linked to either the sale of the Brandon plant, which will remove some fixed costs, about $1 million a year or -- and most importantly, the consolidation in our Gearing business.

Your next question comes from the line of Christopher Blansett with JPMorgan. Christopher Blansett - JP Morgan Chase & Co, Research Division: I just wanted to ask about your commentary about a part of your industrial Gearing business or market outlook is weakening at least for your end customers. I just wanted to see how you think this is going to affect Broadwind's business since you -- you're still a pretty small piece of that market and I don't how you think about your share gain opportunity versus maybe some softening in some of your end markets?

Yes, I think as we look at that business, it is pretty well diversified. I mean, the mining market has grown to probably 20% of our overall revenue. But we are -- as we continue to shift from wind into industrial, we continue to win new customers. So even though there's a little bit of softness in natural gas, we're taking some of that capacity and trying to grow what I would say is more of a traditional industrial customer in crane-type work or gearing in steel plant and other manufacturing applications. And we also have an initiative to move from more loose gearing to enclosed drives or a completed gearbox and that part of the business is growing nicely. So, yes, we are seeing some softness in mining and natural gas, but I think that's being taken over by enclosed drives, on and offshore oil and then industrial applications. So I think we still feel that we can navigate through this softness. And from what we're hearing from the customer, we also believe it's more of a first half 2013 issue whereas they're saying they see things picking up in the latter half of 2013. Christopher Blansett - JP Morgan Chase & Co, Research Division: Okay. And then kind of to touch on the concept of moving toward more enclosed or completed gearboxes, how do we think of the, I guess, the time to qualify? I'm assuming this means that someone comes to you with a need and you help develop a product for them. Generally speaking, what's the -- how long do think it'll take for this business to kind of get going in a bigger way? I mean, just kind of trying to understand the growth rate expectation over the next year or 2?

To qualify on a new gearbox, it's likely a 6- to 9-month process, but some of that effort has already started with customers. We are -- we have quoted a lot of gearing on industrial applications and in the oil sector. So like, for example, an offshore oil rig uses a lot of enclosed drives on that rig and we've been working with that segment to really show them what we can do. It sort of leverages our fabrication on our Weldments business and our Gearing business, so I think we really are uniquely qualified to provide them a total solution. So we are down the path with a number of customers on the enclosed drive site. Christopher Blansett - JP Morgan Chase & Co, Research Division: I guess, a couple more things related to that. Will you need to add more people into the company to help enable this business? Is it all in-house? And then secondly, how does it affect your gross margin structure for these products given that you're adding kind of value content there?

Yes, well, it should enhance our gross margins 5 to 10 margin points and we are adding more in the engineering resources. We're adding gearing engineers to help us better -- to design these gearboxes for our customers. But it's not a lot of people.

And again, Chris, like some of the other actions we've taken in Gearing, this is something that Brad Foote did quite a lot in its history. So some of it is kind of restoring some of the position and capabilities we've had in the past.

Right. In fact, if you go back 10 years ago, we had our own line of gearbox -- industrial gearboxes called the Keystone gearbox line. So we have done this in the past. Christopher Blansett - JP Morgan Chase & Co, Research Division: Okay. And then question, probably more for Stephanie. When you aggregate up all the structural cost savings you're expecting next year, Stephanie, I know it's difficult to control, to understand the revenue outlook for 2013. But how should we think about your OpEx, the SG&A-related expenses? And maybe just think about it going forward, what aggregate structural costs you expect to come out and so we can kind of have a better idea of how to model that?

We're just now starting to pull together budgets and so on for next year, so it's maybe a little premature to give much of an indication. We do think we will be making progress next year in our overall profit margins. Christopher Blansett - JP Morgan Chase & Co, Research Division: Well, I'm thinking more about just your fixed cost because you have multiple facilities you think you're going to come out, and I just wasn't sure is this because it's uncertain the timing of the sale of some of these assets and so it's uncertain when the actual structural costs come away from these?

No, we quantify the structural cost reduction, right? So we talked about $5 million to $6 million -- sorry, $2 million of that is really productivity. So say, it is $4 million of structural fixed cost and one of that we're getting as of the fourth quarter. The rest of it will depend on when we -- what will happen, really, over 2013 for Brad Foote and then it will depend on when we actually complete the sale of the Brandon plant. Christopher Blansett - JP Morgan Chase & Co, Research Division: Okay. And then just one last question that's tied to working capital. So as we head into the -- at the end of the year and kind of -- we're going to most likely have a lull in wind tower demand in the first half of the year because of the big push going on in the latter half of this year, how do you think about your ability to manage your working capital, maybe draw down steel levels bringing cash on the balance sheet? How should we should think about that over, say, the next 6 months?

Well, certainly between now and year end, we'll bring a considerable amount of cash back or -- actually not cash. It'll just be a reduction in our credit line. We should be certainly below $10 million on that number. And our working capital, I said we're at $39 million we were at 9/30. And we're expecting it to be more like $22 million to $25 million, so a lot of cash out of working capital. We are not looking at a material slowdown in our tower facility now in the first half of next year.

[Operator Instructions] Your next question comes from the line of Pavel Molchanov with Raymond James. Pavel Molchanov - Raymond James & Associates, Inc., Research Division: Since here we are the day after election and I -- I would be remiss if I didn't ask on your latest thoughts on the PTC extension and whether there is any read-through from the results last night on what you think will happen?

Yes, I think, certainly, Obama has supported a broader selection of energy sources beyond just fossil fuel. So I think, if anything, it's likely to be a positive. I think our hope is that messages were sent to the Congress yesterday that we need cooperation and we need to sell some of these issues. So I still think that we -- there has been bipartisan support for the PTC. I think we believe there will be an extension in the lame-duck session and then we'll need to -- the industry will need to negotiate with Congress on likely phase-out of the PTC over some period of time. Pavel Molchanov - Raymond James & Associates, Inc., Research Division: And I remember 3 months ago, kind of in the same context, you indicated that your internal assumption for U.S. installations next year, I think, you said 2,500 megs or so, is that still the case or are you inclined to be a little bit more optimistic at this point?

I think, right now, we think that's a pretty good number. I mean, the issue is the industry has -- we've already gone through our slowdown. I mean, every -- the developers have slowed down, people have redeployed resources to other markets, so it is going to take a while for things to come back. But I think the really -- the good news for us is that the supply and demand have come into balance and getting the $31 million order right at the beginning of the year has really helped us navigate through that and we are talking to every major OEM about their tower needs and we are putting towers even with this uncertainty about the PTC. So things are happening, but it's just going to be a much lower level than 12,000 megawatts. Pavel Molchanov - Raymond James & Associates, Inc., Research Division: Great. Just last quick one for me. You mentioned you have a plant that's up for sale. Amid the current industry conditions, do you think, realistically, there is going to be buyer interest in that at a reasonable price?

Yes. I mean, I said it in my comments that we are seeing activity. We've had a number of buyers going through there and so there is a lot of activity going on in that South Dakota and North Dakota area. And we don't want a fire sale. We want a reasonable price for the facility, and I do believe we will close on that some time in 2013.

At this time, we have no further questions. I would now like to turn the call back over to Mr. Peter Duprey for any closing remarks.

Okay. I would say that 2012 posed a number of challenges for each of our businesses. We had to navigate through a very difficult period in the wind energy business and we had our own regulatory cliff. With the tower market coming into better balance between supply and demand, we are feeling more confident about this business segment in 2013. With the election behind us, I guess, finally -- it's my hope that Congress can do their job in dealing with energy policy, tax policy, fiscal policy and a Simpson-Bowles-like spirit of give-and-take for the overall benefit of the country and it will provide greater certainty to businesses going forward. We'll see how that plays out over the next few months, but I do appreciate everyone joining in the call, and look forward to updating you on the close of the year. Thanks.

Ladies and gentlemen, that concludes today's conference. Thank you for your participation. You may now disconnect. Have a great day.