TPI Composites, Inc. (NASDAQ:TPIC) Q3 2019 Earnings Conference Call Transcript

Nov 06, 2019 • 05:00 pm ET

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TPI Composites, Inc. (NASDAQ:TPIC) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, and welcome to TPI Composites' Third Quarter 2019, Earnings Conference Call. Today's call is being recorded, and we have allocated one hour for prepared remarks, and Q&A.

At this time, I'd like to turn the conference over to Christian Edin, Investor Relations for TPI Composites. Thank you. You may begin.

Executive
Christian Edin

Thank you, operator. I'd like to welcome everyone to TPI Composites' Third Quarter 2019 Earnings Call. We will be making forward-looking statements during this call based on current expectations and assumptions which are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect because of other factors discussed in today's earnings news release and the comments made during this conference call or in our latest reports and filings with the Securities and Exchange Commission each of which can be found on our website www.tpicomposites.com. We do not undertake any duty to update any forward-looking statements. Today's presentation also includes references to non-GAAP financial measures. You should refer to the information contained in the slides accompanying today's presentation for definitional information and reconciliations of historical non-GAAP measures to the closest GAAP financial measures.

With that let me turn the call over to Steve Lockard TPI Composites' CEO.

Analyst
Steven C. Lockard

Thanks Christian, and good afternoon everyone. Thank you for joining our call. In addition to Christian I'm joined today by Bill Siwek our President; and Bryan Schumaker our CFO. On this call Bill, and I will provide an update on progress against our goals summary of the quarter a brief update of the wind the growing wind market and our strategy for profitable growth. Bryan will then review our financial results in detail and then we will open up the call for Q&A. Please turn to slide five. We delivered, solid results in the third quarter with adjusted EBITDA of $27.6 million a 57.2% increase over Q3 of 2018 and net sales of nearly $384 million a 50.5% increase over Q3 of 2018. With 52 winds blade lines currently under contract and world-class locations around the world a growing average megawatt per year per line of about 300 megawatts and ramping of over 20 lines globally we are progressing well toward our goal of establishing 18 gigawatts of global wind blade capacity over the next few years.

Even with ongoing blade model transitions, at that time running at about 80% utilization we expect to produce about 15 gigawatts of blades per year and achieve our long-term target of $2 billion of annual wind revenue. With an estimated 73 gigawatts global combined onshore and offshore wind market we expect to have more than 20% global market share. Our pipeline remains strong with the potential to add onshore lines as well as offshore lines once the offshore volumes reach levels to provide critical mass for efficient outsourcing. We have worked through the challenges of the start-up in Yangzhou China and are now on a course to deliver as expected for the balance of