SEGMENT REPORTING

6 Months Ended

Jun. 30, 2013

SEGMENT REPORTING

SEGMENT REPORTING

NOTE 14 — SEGMENT REPORTING

The Company is organized into reporting segments based on the nature of the products and services offered and business activities from which it earns revenues and incurs expenses for which discrete financial information is available and regularly reviewed by the Company’s chief operating decision maker. The Company’s segments and their product and service offerings are summarized below:

Towers and Weldments

The Company manufactures towers for wind turbines, specifically the large and heavier wind towers that are designed for 2 megawatt (“MW”) and larger wind turbines. Production facilities, located in Manitowoc, Wisconsin and Abilene, Texas, are situated in close proximity to the primary U.S. domestic energy and equipment manufacturing hubs. The two facilities have a combined annual tower production capacity of approximately 500 towers, sufficient to support turbines generating more than 1,200 MW of power. This product segment also encompasses the manufacture of specialty fabrications and specialty weldments for mining and other industrial customers.

Gearing

The Company engineers, builds and remanufactures precision gears and gearing systems for oil and gas, wind, mining, steel and other industrial applications. The Company uses an integrated manufacturing process, which includes machining and finishing processes in Cicero, Illinois, and heat treatment in Neville Island, Pennsylvania.

Services

The Company offers a comprehensive range of services, primarily to wind farm developers and operators. The Company specializes in non-routine maintenance services for both kilowatt and megawatt turbines. The Company also offers comprehensive field services to the wind industry. The Company is increasingly focusing its efforts on the identification and/or development of product and service offerings which will improve the reliability and efficiency of wind turbines, and therefore enhance the economic benefits to its customers. The Company provides wind services across the U.S., with primary service locations in South Dakota and Texas. In February 2011, the Company put into operation its Abilene, Texas gearbox service facility (the “Gearbox Facility”), which is focused on servicing the growing installed base of MW wind turbines as they come off warranty and, to a limited extent, industrial gearboxes requiring precision repair and testing.

Corporate and Eliminations

“Corporate” includes the assets and selling, general and administrative expenses of the Company’s corporate office. “Eliminations” comprises adjustments to reconcile segment results to consolidated results.

Summary financial information by reportable segment for the three and six months ended June 30, 2013 and 2012 is as follows:

For the Three Months Ended June 30, 2013:	Towers and Weldments		Gearing			Services			Corporate			Eliminations			Consolidated
Revenues from external customers	$	37,507	$	9,791		$	4,065		$	—		$	—		$	51,363
Intersegment revenues (1)	—		654			—			—			(654		)	—
Operating profit (loss)	4,103		(3,882		)	(1,262		)	(2,250		)	(42		)	(3,333		)
Depreciation and amortization	949		2,745			342			11			—			4,047
Capital expenditures	243		1,012			20			79			—			1,354

For the Three Months Ended June 30, 2012:	Towers and Weldments		Gearing			Services			Corporate			Eliminations			Consolidated
Revenues from external customers	$	36,995	$	13,646		$	5,670		$	—		$	—		$	56,311
Intersegment revenues (1)	—		417			25			—			(442		)	—
Operating profit (loss)	561		(1,632		)	(1,139		)	(1,960		)	11			(4,159		)
Depreciation and amortization	904		2,550			439			17			—			3,910
Capital expenditures	382		399			658			11			—			1,450

For the Six Months Ended June 30, 2013:	Towers and Weldments		Gearing			Services			Corporate			Eliminations			Consolidated
Revenues from external customers	$	67,533	$	17,960		$	11,534		$	—		$	—		$	97,027
Intersegment revenues (1)	3		3,204			15			—			(3,222		)	—
Operating profit (loss)	6,105		(6,743		)	(1,962		)	(5,189		)	(40		)	(7,829		)
Depreciation and amortization	1,900		5,455			655			23			—			8,033
Capital expenditures	485		1,655			233			356			—			2,729

For the Six Months Ended June 30, 2012:	Towers and Weldments		Gearing			Services			Corporate			Eliminations			Consolidated
Revenues from external customers	$	72,164	$	29,479		$	9,111		$	—		$	—		$	110,754
Intersegment revenues (1)	—		617			26			—			(643		)	—
Operating profit (loss)	1,566		(2,753		)	(2,763		)	(4,175		)	25			(8,100		)
Depreciation and amortization	1,780		5,222			824			34			—			7,860
Capital expenditures	413		764			900			88			—			2,165

	Total Assets as of
	June 30,			December 31,
	2013			2012
Segments:
Towers and Weldments	$	60,400		$	50,801
Gearing	69,513			71,371
Services	16,148			13,976
Assets held for sale	790			8,042
Corporate	305,586			308,336
Eliminations	(289,377		)	(309,616		)
	$	163,060		$	142,910

(1) Intersegment revenues generally include a 10% markup over costs and primarily consist of sales from Gearing to Services. Sales from Gearing to Services totaled $3,204 and $617 for the six months ended June 30, 2013 and 2012, respectively.