Good morning and welcome to the Broadwind Energy first quarter 2016 earnings conference call. All participants will be in listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Joni Konstantelos, Director of Investor Relations. Please go ahead.

Thank you. Good morning and welcome to Broadwind Energy's first quarter 2016 earnings conference call. With me today are Broadwind's Interim President and CEO and Executive Vice President and CFO, Stephanie Kushner and Broadwind's Vice President and Corporate Controller, Bob Rogowski. 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 Stephanie Kushner.

Thanks Joni and good morning. Starting with highlights. Our recovery of the first quarter was encouraging. We booked $39 million in new orders, up about 80% from a year ago. We stabilized our production and invoiced 119 towers, up from 93 in the fourth quarter of 2015. Our gross profit margin recovered to8.5%, up sharply from Q4 and nearly 34 percentage points higher than the first quarter of 2015. We narrowed our operating loss to $200,000 and generated $1.7 million of EBITDA. And our free cash flow was strong at $3 million, which boosted our cash balances to more than $15 million with our credit line still untapped. Next slide. I spoke in February about three near-term priorities. First was the double order intake following a year when we were effectively producing against a surge in orders taken in 2013. We made some progress in Q1 but are still facing some market weakness in our gearing and weldment businesses. So I will cover some of those market comments later. Second, I am very pleased with the progress that our tower business has made in terms of improving production consistency. In Abilene, weekly production has been very consistent for the past three months despite some, what I would consider, normal operating challenges, including supplier quality problems, challenging weather patterns and minor equipment failures. The team has demonstrated much improved ability to anticipate, deal with and recover from these types of issues. Our production is slightly ahead of schedule and our quality is consistent and strong. Now, one quarter is not enough time to declare success but it is an important data point. We had a comprehensive audit of our production systems and processes earlier this year and we continue to make changes and improve our systems to make our plant consistently…

[Operator Instructions]. Our first question comes from Mark Spiegel with Stanphyl Capital. Please go ahead.

Hi Stephanie. It's great to see you get things back on track there. So congratulations on that.

Thank you.

Really just two questions, because you covered some of the things I was going to ask you about in your comments. You said Q2 tower operating income and I guess presumably EBITDA is going to be a little lower than Q1 due to different mix of towers. What should we think about, the Q1 number annualized was out to around $17 million of EBITDA for that division. Is that sort of what we should think about going forward? Because obviously the Q2 number annualized is going to annualize out to somewhat less than that?

Yes. I think it's a little too early for me to comment on that because we are still testing the consistency of our production and we are working on cost reduction initiatives and managing down expenses. So I would like to see us be stronger in the second half of the year but I think I would just reserve committing to that for now, Mark. But please stay tuned.

So is Q2 the fluke in terms of product mix? Or was Q1 unusually good in terms of product mix? Because you just sort of commented on the, I think sort of more maybe more on the expense side, which is fine, but on terms of the revenue side, which is more typical, Q1 or Q2?

Well, I would say for this year Q2 is going to be more typical.

Okay. Fair enough. And then last question, you are targeting corporate expense at around $7 million, I think, when we last spoke. And if you annualize the Q1 number, it comes out to around $9 million. Any comment on that? Was Q1 unusually high? Or were you really running around $9 million a year?

No. It will come down beyond Q1. There is really a couple of things. One is that Q1, frankly in terms of accounting is always higher because of audit and year-end costs and so on and the fact that those did run a little higher than we expected. So we are working to try and then compensate for that. And then probably more significantly, we managed the health and workers' compensation insurance essentially in corporate and then we absorbed any increases or decreases up to a point versus what we allocate out to our business unit. So we get some variability that can happen in any given quarter. But again, I think that will reverse out in subsequent quarters. So we should be back down to the $1.6 million, $1.7 million range, for example, in Q2 and beyond.

Okay. Great. So that's $7 million a year or maybe even slightly less, which is what you were looking for. Okay. Terrific. Thank you very much. And please keep up the good momentum there. Thank you.

Thanks Mark.

[Operator Instructions]. This concludes our question-and-answer session. I would like to turn the conference back over to Stephanie Kushner for any closing remarks.

Thank you very much. Thank you for your interest and we look forward to speaking to you again next quarter. Bye, bye.