SEGMENT REPORTING

3 Months Ended

Mar. 31, 2015

SEGMENT REPORTING

SEGMENT REPORTING

NOTE 13 — 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 multiple megawatt (“MW”) wind turbines. Production facilities, located in Manitowoc, Wisconsin and Abilene, Texas, are situated in close proximity to the primary U.S. domestic wind energy and equipment manufacturing hubs. The two facilities have a combined annual tower production capacity of up to approximately 500 towers, sufficient to support turbines generating more than 1,000 MW of power. This product segment also encompasses the manufacture of 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 wind turbines. The Company also offers comprehensive field services to the wind energy 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. The Company operates drivetrain service centers in these two locations, 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. The Company has recently decided to consolidate the two service centers into the drivetrain service center in Abilene, Texas (the “Abilene Gearbox Facility”) in order to reduce overhead costs.

Corporate and Other

“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 months ended March 31, 2015 and 2014 is as follows:

	Towers and
	Weldments		Gearing		Services		Corporate			Eliminations	Consolidated
For the Three Months Ended March 31, 2015
Revenues from external customers	$	40,797	$	8,432	$	1,822	$	—	$	—	$	51,051
Intersegment revenues (1)		231		176		116		—		(523)		—
Operating profit (loss)		1,135		(1,211)		(2,624)		(2,283)		5		(4,978)
Depreciation and amortization		914		1,296		322		46		—		2,578
Capital expenditures		511		72		171		85		—		839

	Towers and
	Weldments		Gearing		Services		Corporate		Eliminations		Consolidated
For the Three Months Ended March 31, 2014
Revenues from external customers	$	48,134	$	8,275	$	2,391	$	—	$	—	$	58,800
Intersegment revenues (1)		160		499		47		—		(706)		—
Operating profit (loss)		5,612		(2,966)		(1,339)		(2,253)		(49)		(995)
Depreciation and amortization		984		1,801		313		16		—		3,114
Capital expenditures		1,233		634		30		303		—		2,200

	Total Assets as of
	March 31,		December 31,
Segments:	2015		2014
Towers and Weldments	$	65,005	$	50,691
Gearing		48,200		50,238
Services		8,377		10,884
Assets held for sale		700		738
Corporate		290,682		297,754
Eliminations		(275,537)		(263,688)
	$	137,427	$	146,617

(1) Intersegment revenues primarily consist of sales from Gearing to Services. Sales from Gearing to Services totaled $176 and $499 for the three months ended March 31, 2015 and 2014, respectively.