- The Babcock & Wilcox segment increased
revenues by 18.5% and adjusted EBITDA by 115%-The SPIG segment
returned to profitability and increased adjusted EBITDA by $8
million- Consolidated operating loss was $74.5 million lower, and
adjusted EBITDA improved by $72.7 million
Babcock & Wilcox Enterprises, Inc. ("B&W Enterprises")
(NYSE: BW) announced today first quarter 2019 revenues of $231.9
million, a decrease of $21.2 million, or 8.4%, compared to the
first quarter of 2018. The decrease was primarily the result of
several EPC contracts being in the final stages of completion in
the first quarter of 2019. GAAP net loss from continuing operations
in first quarter 2019 improved to $49.9 million compared to $116.8
million in first quarter 2018. Adjusted EBITDA also improved by
$72.7 million to negative $5.0 million compared to negative $77.6
million in the prior year period. All amounts referred to in this
release are on a continuing operations basis, unless otherwise
noted. A reconciliation of adjusted EBITDA to the most directly
comparable GAAP measure is provided in the exhibits to this
release.
"Our performance in the first quarter of 2019 reflects the
impact of the strategic actions we have taken over the past several
months. Combined with the settlements we reached in March 2019 and
our additional financing, we have momentum on our path to
profitability," said Kenneth Young, Chief Executive Officer. "Our
Babcock & Wilcox segment continues to perform well, and our
change in strategy for the SPIG segment is beginning to drive
results. As 2019 progresses, we expect the core strengths of our
businesses to continue to become more visible to our customers and
shareholders. We are also making progress on our cost-savings
initiatives, and looking forward, we continue to target a run-rate
adjusted EBITDA of approximately $100 million as we exit 2020, not
including corporate overhead."
“Over the past six months, our customers and employees have seen
a major transformation at Babcock & Wilcox Enterprises and are
responding positively as we have made significant changes to
improve our business and have shared new information about our
strategic path to profitability," Young continued. "We are
optimistic as we see new opportunities emerging as a result of our
recent efforts. Going forward, we expect to see improvement each
quarter as our cost-savings initiatives continue to impact
bottom-line results and as we minimize EPC contract losses under
the terms of the settlements we achieved in March 2019. Our
dedicated employees continue to deliver world-class products and
services that reflect the strengths of our more than 150-year
heritage. We are laser-focused on delivering high-quality
technologies that provide solutions for our customers and strong
results for our shareholders."
Results of Operations
Consolidated revenues in first quarter 2019 were $231.9 million,
down 8.4% compared to first quarter 2018 primarily due to several
EPC contracts being in the final stages of completion in the first
quarter of 2019 The GAAP operating loss in first quarter 2019 was
$32.0 million compared to an operating loss of $106.4 million in
first quarter 2018. Prior to the first quarter of 2019, the most
significant drivers of the Company's operating losses were the
charges for the six European engineering, procurement and
construction (EPC) loss contracts. In the first quarter of 2019,
the most significant drivers of our operating losses were
settlement costs, restructuring activities, and advisory fees.
Adjusted EBITDA was negative $5.0 million compared to negative
$77.6 million in first quarter 2018.
In the first quarter of 2019, the Company changed its
calculation of adjusted EBITDA to exclude net pension benefit,
foreign currency exchange effects and other income (expense); all
references to adjusted EBITDA in this release exclude these items
on a consistent basis. Net pension benefit before mark-to-market
adjustments was $3.4 million in the first quarter of 2019, compared
to $7.0 million in the prior-year quarter; foreign exchange impact
was negative $10.2 million in the first quarter of 2019, compared
to positive $2.5 million in the prior-year quarter.
Babcock & Wilcox segment revenues increased 18.5% to
$188.6 million in the first quarter of 2019 compared to $159.1
million in the prior-year period, mainly driven by large
construction new build and industrial projects, partially offset by
a decrease in parts sales. Gross profit in the Babcock & Wilcox
segment in first quarter 2019 was $31.1 million, compared to $30.9
million in the prior-year period, reflecting the increase in
lower-margin construction revenue as a percentage of total revenue
including construction services at no margin for the SPIG segment
on its single loss project in the U.S. Gross profit margin was
16.5%, compared to 19.4% in the same period last year. Adjusted
EBITDA in first quarter 2019 increased 115% to $9.0 million,
compared to $4.2 million in last year's quarter; this increase is
mainly attributable to the impact of cost-savings initiatives
partially offset by an approximately $2.3 million increase in the
level of corporate overhead being absorbed by the segment compared
to the prior-year quarter. Adjusted EBITDA margin was 4.8% compared
to 2.6% in the same period last year.
SPIG segment revenues decreased 21.3% to $28.9 million in
first quarter 2019 compared to $36.7 million in first quarter 2018,
mainly due to lower volume of new build cooling system projects as
expected following the change in strategy to improve profitability
by more selectively bidding and focusing on core geographies and
products, and a lower volume of aftermarket services. Gross profit
improved to a positive $3.7 million in first quarter 2019, compared
to a gross profit of negative $2.8 million in the prior-year
period. This improvement was primarily due to the effects of the
new strategy and to continued progress made on the small number of
remaining legacy new build cooling systems contracts in the quarter
without significant increases in estimated costs, compared to the
first quarter of 2018 when higher estimated costs to complete were
incurred. Adjusted EBITDA improved by $8.0 million to positive $0.7
million compared to negative $7.3 million in the same period last
year, driven by the improvement in gross profit and the benefits of
cost-savings initiatives.
Vølund & Other Renewable segment revenues in the
segment were $29.5 million for first quarter 2019, compared to
$60.0 million in first quarter 2018. First quarter revenues were
lower compared to the prior year quarter as several of the European
EPC loss contracts were in the final stages of completion in 2019,
resulting in lower construction revenue being recognized than in
2018. The quarter-over-quarter variance was also driven by the sale
of Palm Beach Resource Recovery Corporation (PBRRC) in September
2018 and the previous decision to limit bidding on Vølund renewable
energy contracts. The segment gross profit improved $47.6 million
to negative $2.9 million in first quarter 2019, compared to
negative $50.4 million reported in first quarter 2018. In the first
quarter of 2018, the segment recorded $52.6 million in net losses
resulting from changes in the estimated revenues and costs to
complete the six European EPC loss contracts, compared to $4.1
million of equivalent losses recorded in the first quarter of 2019.
Beyond the effect of the EPC loss contracts, the first quarter 2019
gross profit also included lower levels of direct overhead support
and warranty expense, offset by the absence of gross profit from
PBRRC. Adjusted EBITDA in the quarter was negative $8.9 million
compared to negative $61.8 million in the first quarter last year,
mainly due to improved gross profit as well as lower SG&A,
reflecting the benefits of restructuring and cost reductions.
European EPC Loss Projects
As of March 2019, four of the six European EPC loss contracts
had been turned over to the customers, with only punch list or
agreed remediation items remaining, some of which are expected to
be performed during the customers' scheduled maintenance outages.
This applies to the first, third, fourth and sixth projects. On
March 29, 2019, the Company reached settlements with the customers
for the second and fifth European EPC projects, which significantly
limited the Company's remaining obligations related to these
projects. The Company also reached an agreement to terminate its
obligations on an additional European waste-to-energy EPC contract
which had not yet reached the project phase. The settlements became
binding on April 5, 2019 upon payment using a portion of the
proceeds from Tranche A-3 of the last-out-term loans described
below. A more detailed project status summary is contained in the
Company's 10-Q.
Financing, Liquidity and Balance Sheet
In the first quarter of 2019, the Company entered into several
amendments to its revolving credit facility. On March 19, 2019, the
Company borrowed $10.0 million of additional funding under Tranche
A-2 of the last-out term loans from B. Riley Financial, Inc. (a
related party, and collectively with its affiliates "B. Riley") to
support working capital needs. On April 5, 2019, the Company's most
recent amendment to its credit agreement was completed to provide
$150.0 million of Tranche A-3 last-out term loans from B. Riley as
well as an uncommitted incremental facility of up to $15.0 million.
The proceeds from the last-out term loans were used to pay amounts
due under the EPC loss project settlement agreements and debt
placement fees and expenses; the remainder is available for future
working capital needs.
As part of the most recent amendment, and in connection with the
Tranche A-3 last-out term loans, the Company agreed to seek
shareholder approval to execute a $50 million rights offering at
$0.30 per share within six months; exchange all of the principal
($37.1 million as of April 2, 2019) of the last-out term loan held
by Vintage Capital Management, LLC for common stock at $0.30 per
share; issue approximately 16.7 million warrants, each to purchase
one share of common stock at $0.01 per share to B. Riley or its
designee as further consideration under Tranche A-3 of the last-out
term loans; and execute a reverse stock split. The amendment
permits the Company to repay up to $86 million of the last-out term
loans using the proceeds from the rights offering.
The most recent amendment also, among other things, increases
the Company's borrowing capacity by reducing the Company's required
minimum liquidity to $30 million from $40 million. It allows for
issuance of up to $20 million of new letters of credit with respect
to any future Vølund projects, permits letters of credit to expire
one year after the maturity date of the revolving credit facility,
and creates a new event of default for the failure to terminate the
existing credit facility on or prior to March 15, 2020. The Company
intends to refinance the revolving credit facility as required.
After giving effect to the proceeds received under the last-out
term loans borrowed on April 5, 2019, making the EPC loss project
settlement payments, and repaying a portion of the existing
revolver debt, the Company had a cash and cash equivalents balance
of approximately $41 million and borrowing availability of
approximately $35 million.
Continuing Cost-Savings Measures Targeting $100 Million In
Annual Savings
The Company continues to target approximately $100 million in
annualized savings through its cost savings initiatives. Roughly
three quarters of these savings measures have been implemented to
date with the balance to be implemented in 2019 and a small amount
in 2020. Cost savings have been identified across all segments and
at the Corporate level, and the implementation plan and savings are
progressing in line with expectations. The Company continues to
evaluate dispositions and additional opportunities for cost
savings.
NYSE Listing Standards
On November 27, 2018, the Company received notification from the
New York Stock Exchange (NYSE) that the Company has fallen below
its continued listing criteria based on the price of the Company's
common stock. The Company intends to ask its shareholders to
approve a resolution to, among other things, effect a reverse stock
split of the Company's shares of common stock at its annual
shareholders meeting. Based on the expected timing of the annual
shareholder meeting, the Company is permitted under NYSE rules to
go beyond the six-month cure period to request required shareholder
approval on a corporate action.
Forward-Looking Statements
B&W Enterprises cautions that this release contains
forward-looking statements, including, without limitation,
statements relating to our strategic objectives; our business
execution model; management’s expectations regarding the industries
in which the Company operates; our guidance and forecasts; our
projected operating margin improvements, savings and restructuring
costs; our U.S. revolving credit facility; and project execution.
These forward-looking statements are based on management’s current
expectations and involve a number of risks and uncertainties,
including, among other things, our ability to continue as a going
concern; our ability to obtain and maintain sufficient financing to
provide liquidity to meet our business objectives, surety bonds,
letters of credit and similar financing; our ability to satisfy the
liquidity and other requirements under our revolving credit
facility as recently amended; our ability to refinance said
facility in a timely manner, if at all; our ability to obtain all
stockholder and regulatory approvals for the rights offering,
issuance of warrants, reverse stock split and related transactions;
our ability to complete said transactions in a timely manner, if at
all; the highly competitive nature of our businesses; general
economic and business conditions, including changes in interest
rates and currency exchange rates; general developments in the
industries in which the Company is involved; cancellations of and
adjustments to backlog and the resulting impact from using backlog
as an indicator of future earnings; our ability to perform
contracts on time and on budget, in accordance with the schedules
and terms established by the applicable contracts with customers;
failure by third-party subcontractors, joint venture partners or
suppliers to perform their obligations on time and as specified;
our ability to realize anticipated savings and operational benefits
from our restructuring plans, and other cost-savings initiatives;
our ability to successfully address productivity and schedule
issues in our Vølund and Other Renewable segment, including the
ability to complete our European EPC projects within the expected
time frame and the estimated costs; our ability to successfully
partner with third parties to win and execute renewable contracts;
changes in our effective tax rate and tax positions; our ability to
maintain operational support for our information systems against
service outages and data corruption, as well as protection against
cyber-based network security breaches and theft of data; our
ability to protect our intellectual property and renew licenses to
use intellectual property of third parties; our use of the
percentage-of-completion method of accounting; our ability to
successfully manage research and development projects and costs,
including our efforts to successfully develop and commercialize new
technologies and products; the operating risks normally incident to
our lines of business, including professional liability, product
liability, warranty and other claims against us; changes in, or our
failure or inability to comply with, laws and government
regulations; actual or anticipated changes in governmental
regulation, including trade and tariff policies; difficulties the
Company may encounter in obtaining regulatory or other necessary
permits or approvals; changes in, and liabilities relating to,
existing or future environmental regulatory matters; changes in
actuarial assumptions and market fluctuations that affect our net
pension liabilities and income; potential violations of the Foreign
Corrupt Practices Act; our ability to successfully compete with
current and future competitors; the loss of key personnel and the
continued availability of qualified personnel; our ability to
negotiate and maintain good relationships with labor unions;
changes in pension and medical expenses associated with our
retirement benefit programs; social, political, competitive and
economic situations in foreign countries where the Company does
business or seek new business; the possibilities of war, other
armed conflicts or terrorist attacks; the willingness of customers
and suppliers to continue to do business with us on reasonable
terms and conditions; our ability to successfully consummate
strategic alternatives for non-core assets, if the Company
determines to pursue them; and our ability to maintain the listing
of our common stock on the NYSE. If one or more of these risks or
other risks materialize, actual results may vary materially from
those expressed. For a more complete discussion of these and other
risk factors, see B&W Enterprise’s filings with the Securities
and Exchange Commission, including our most recent annual report on
Form 10-K. B&W Enterprises cautions not to place undue reliance
on these forward-looking statements, which speak only as of the
date of this release, and undertakes no obligation to update or
revise any forward-looking statement, except to the extent required
by applicable law.
About B&W Enterprises
Headquartered in Barberton, Ohio, Babcock & Wilcox
Enterprises is a global leader in energy and environmental
technologies and services for the power and industrial markets.
Follow us on Twitter @BabcockWilcox and learn more at
www.babcock.com.
Exhibit 1
Babcock & Wilcox Enterprises,
Inc.
Condensed Consolidated Statements of
Operations(1)
(In millions, except per share
amounts)
Three months ended March 31, 2019
2018 Revenues $ 231.9
$ 253.2 Costs and expenses: Cost of operations
201.1 277.3 Selling, general and administrative expenses 42.4 59.4
Advisory fees and settlement costs 13.6 3.1 Restructuring
activities and spin-off transaction costs 6.1 6.9 Research and
development costs 0.7 1.1 Total costs and
expenses 263.9 347.8 Equity in income and impairment of investees —
(11.8 )
Operating loss (32.0 )
(106.4 ) Other income (expense): Interest expense
(11.1 ) (13.5 ) Interest income 0.6 0.2 Benefit plans, net 3.0 7.0
Foreign exchange (10.2 ) 2.5 Other – net 0.4 0.4
Total other expense (17.3 ) (3.4 )
Loss before
income tax expense (49.2 ) (109.9 ) Income tax expense 0.6
7.0
Loss from continuing operations
(49.9 ) (116.8 ) Loss from discontinued
operations, net of tax — (3.5 )
Net loss (49.9
) (120.3 ) Net income (loss) attributable to noncontrolling
interest 0.1 (0.1 )
Net loss attributable to
stockholders $ (49.8 )
$ (120.4 ) Basic and diluted
loss per common share:
Continuing operations $
(0.29 ) $ (2.65 ) Discontinued
operations — (0.08 ) Basic and diluted loss per
common share $ (0.29 ) $ (2.73 ) Shares
used in the computation of earnings per share: Basic and Diluted
168.8 44.2 (1) Figures may not be clerically accurate due to
rounding.
Exhibit 2
Babcock & Wilcox Enterprises,
Inc.
Condensed Consolidated Balance
Sheets(1)
(In millions, except per share amount)
March 31, 2019
December 31, 2018 Cash and cash equivalents $ 43.5 $
43.2 Restricted cash and cash equivalents 7.0 17.1 Accounts
receivable – trade, net 203.2 197.2 Accounts receivable – other
57.0 44.7 Contracts in progress 136.4 144.7 Inventories 63.8 61.3
Other current assets 45.9 41.4 Total current
assets 556.8 549.6 Net property, plant and equipment 85.0 90.9
Goodwill 47.1 47.1 Intangible assets 29.1 30.8 Right-of-use assets
15.1 — Other assets 31.8 27.1
Total
assets $ 764.9 $
745.5 Revolving credit facilities 175.3 145.5
Last out term loans 42.4 30.6 Accounts payable 202.9 199.9 Accrued
employee benefits 23.1 19.3 Advance billings on contracts 155.3
149.4 Accrued warranty expense 44.8 45.1 Lease liabilities 4.9 —
Other accrued liabilities 117.2 122.1 Total
current liabilities 765.9 712.0 Pension and other accumulated
postretirement benefit liabilities 277.8 281.6 Noncurrent lease
liabilities 10.0 — Other noncurrent liabilities 29.1
29.2
Total liabilities 1,082.7 1,022.8
Commitments and contingencies — — Stockholders' (deficit)
equity: Common stock, par value $0.01 per share, authorized 200,000
shares; issued and outstanding 168,862 and 168,791 shares at March
31, 2019 and December 31, 2018, respectively 1.7 1.7 Capital in
excess of par value 1,047.5 1,047.1 Treasury stock at cost, 5,924
and 5,872 shares at March 31, 2019 and December 31, 2018,
respectively (105.6 ) (105.6 ) Accumulated deficit (1,267.7 )
(1,217.9 ) Accumulated other comprehensive loss (2.5 ) (11.4
) Stockholders' deficit attributable to shareholders (326.6 )
(286.1 ) Noncontrolling interest 8.7 8.8
Total stockholders' deficit (317.9 )
(277.3 ) Total liabilities and stockholders'
deficit $ 764.9 $
745.5 (1) Figures may not be clerically
accurate due to rounding.
Exhibit 3
Babcock & Wilcox Enterprises,
Inc.
Condensed Consolidated Statements of
Cash Flows(1)
(In millions)
Three months ended March 31, 2019
2018 Cash flows from operating activities: Net loss $
(49.9 ) $ (120.3 ) Adjustments to reconcile net loss to net cash
provided by (used in) operating activities: Depreciation and
amortization of long-lived assets 7.3 9.1 Amortization of deferred
financing costs, debt discount and payment-in-kind interest 5.7 5.0
Amortization of right of use assets 1.5 — Income from equity method
investees — (6.6 ) Other-than-temporary impairment of equity method
investment in TBWES — 18.4 Losses on asset disposals and
impairments — 0.5 Provision for (benefit from) deferred income
taxes, including valuation allowances (0.2 ) 1.1 Mark to market
losses (gains) and prior service cost amortization for pension and
postretirement plans — (0.4 ) Stock-based compensation, net of
associated income taxes 0.4 0.2 Changes in assets and liabilities:
Accounts receivable 0.2 17.3 Contracts in progress and advance
billings on contracts 9.9 (18.3 ) Inventories (3.2 ) 4.3 Income
taxes — 10.1 Accounts payable 4.6 (3.0 ) Accrued and other current
liabilities 6.5 (3.8 ) Accrued contract loss (30.9 ) 6.9 Pension
liabilities, accrued postretirement benefits and employee benefits
(0.6 ) (9.6 ) Other, net 11.0 4.6
Net cash
(used) from operating activities (37.7 ) (84.8 ) Cash
flows from investing activities: Purchase of property, plant and
equipment (0.3 ) (3.2 ) Proceeds from sale of business — 5.1
Proceeds from sale of equity method investments in joint venture —
21.1 Purchases of available-for-sale securities (6.0 ) (9.6 ) Sales
and maturities of available-for-sale securities 1.0 9.5 Other, net
0.1 0.2
Net cash (used) from investing
activities (5.3 ) 23.0 Cash flows from financing
activities: Borrowings under our U.S. revolving credit facility
71.2 157.1 Repayments of our U.S. revolving credit facility (40.8 )
(74.4 ) Borrowings under our last out term loan from related party
10.0 — Repayments under our foreign revolving credit facilities
(0.6 ) (5.0 ) Shares of our common stock returned to treasury stock
— (0.7 ) Debt issuance costs (6.7 ) (5.4 ) Other, net —
(0.1 )
Net cash from financing activities 33.1
71.5 Effects of exchange rate changes on cash 0.1
(5.2 )
Net (decrease) increase in cash, cash
equivalents and restricted cash (9.8 ) 4.4 Less net increase in
cash and cash equivalents of discontinued operations —
1.3
Net (decrease) increase in cash, cash
equivalents and restricted cash of continuing operations (9.8 )
3.1 Cash, cash equivalents and restricted cash of
continuing operations, beginning of period 60.3 69.7
Cash, cash equivalents and restricted cash of continuing
operations, end of period $ 50.5 $ 72.8 (1) Figures may
not be clerically accurate due to rounding.
Exhibit 4
Babcock & Wilcox Enterprises,
Inc.
Segment Information(1)
(In millions)
SEGMENT RESULTS Three months ended March 31,
2019 2018 REVENUES: Babcock & Wilcox
segment $ 188.6 $ 159.1 Vølund & Other Renewable segment 29.5
60.0 SPIG segment 28.9 36.7 Eliminations (15.1 ) (2.7 ) $
231.9 $ 253.2 GROSS PROFIT (LOSS):
Babcock & Wilcox segment $ 31.1 $ 30.9 Vølund & Other
Renewable segment (2.9 ) (50.4 ) SPIG segment 3.7 (2.8 ) Intangible
asset amortization included in cost of operations (1.1 ) (1.8 )
ADJUSTED EBITDA: Babcock & Wilcox segment $ 9.0 $ 4.2
Vølund & Other Renewable segment (8.9 ) (61.8 ) SPIG segment
0.7 (7.3 ) Corporate (5.0 ) (11.6 ) Research and development costs
(0.7 ) (1.1 ) $ (5.0 ) $ (77.6 ) AMORTIZATION
EXPENSE: Babcock & Wilcox segment $ 0.2 $ 0.2 Vølund &
Other Renewable segment 0.2 0.2 SPIG segment 0.8 1.6
$ 1.2 $ 2.1 DEPRECIATION
EXPENSE: Babcock & Wilcox segment $ 4.9 $ 3.1 Vølund &
Other Renewable segment 0.7 1.0 SPIG segment 0.5 0.5 Corporate —
0.3 $ 6.1 $ 4.9
BOOKINGS: Babcock & Wilcox segment $ 187 $ 271 Vølund &
Other Renewable segment (2) 19 46 SPIG segment 12 27
Other/Eliminations (2 ) (1 ) $ 216 $ 343
As of March 31, BACKLOG:
2019
2018 Babcock & Wilcox segment $ 384 $ 565 Vølund &
Other Renewable segment 317 994 SPIG segment 70 165
Other/Eliminations (5 ) (42 ) $ 766 $ 1,682
(1)
Figures may not be clerically accurate due to rounding. (2)
Vølund & Other Renewable bookings includes the revaluation of
backlog denominated in currency other than U.S. dollars, which was
$3.5 million and $18.1 million, for the three months ended March
31, 2019, and 2018, respectively.
Exhibit 5
Babcock & Wilcox Enterprises,
Inc.
Reconciliation of Adjusted
EBITDA(1)
(In millions)
Three months ended March 31, 2019
2018 Adjusted EBITDA (2) Babcock &
Wilcox segment(3) $ 9.0 $ 4.2 Vølund & Other Renewable segment
(8.9 ) (61.8 ) SPIG segment 0.7 (7.3 ) Corporate(4) (5.0 ) (11.6 )
Research and development costs (0.7 ) (1.1 )
Total
Adjusted EBITDA (5.0 ) (77.6 )
Restructuring activities and spin-off transaction costs (6.1
) (6.9 ) Financial advisory services (4.0 ) (3.1 ) Settlement cost
to exit Vølund contract(5) (6.6 ) — Advisory fees for settlement
costs and liquidity planning (3.1 ) — Impairment of equity method
investment in TBWES — (18.4 ) Gain on sale of equity method
investment in BWBC — 6.5 Depreciation & amortization (7.3 )
(7.0 )
Operating loss (32.0 )
(106.4 ) Interest expense, net (10.6 ) (13.3 ) Net
pension benefit before MTM 3.4 7.0 MTM loss from benefit plans (0.4
) — Foreign exchange (10.2 ) 2.5 Other – net 0.4 0.4
Loss before income tax expense (49.2 ) (109.9 )
Income tax expense 0.6 7.0
Loss from
continuing operations (49.9 ) (116.8
) Loss from discontinued operations, net of tax —
(3.5 ) Net loss (49.9 ) (120.3 ) Net income (loss)
attributable to noncontrolling interest 0.1 (0.1 )
Net loss attributable to stockholders $ (49.8
) $ (120.4 ) (1)
Figures may not be clerically accurate due to rounding. (2)
Adjusted EBITDA is not a calculation based on generally accepted
accounting principles (GAAP). The amounts included in Adjusted
EBITDA, however, are derived from amounts included in the
Consolidated Statements of Earnings. Adjusted EBITDA should not be
considered an alternative to net earnings (loss), operating profit
(loss) or operating cash flows. B&W has presented adjusted
EBITDA as it is regularly used by many of our investors and is
presented as a convenience to them. Adjusted EBITDA, as presented
in this calculation however, differs from the EBITDA calculation
used to compute our leverage ratio and interest coverage ratio as
defined by our Amended Credit Agreement. (3) The Babcock &
Wilcox segment adjusted EBITDA for the three months ended March 31,
2018 excludes $7.0 million of net benefit from pension and other
postretirement benefit plans, excluding MTM adjustments, that were
previously included in the segment results. Beginning in 2019, Net
pension benefits are no longer allocated to the segments, and prior
periods have been adjusted to be presented on a comparable basis.
(4) Allocations are excluded from discontinued operations.
Accordingly, allocations previously absorbed by the MEGTEC and
Universal businesses in the SPIG segment have been included with
other unallocated costs in Corporate, and total $2.9 million in the
three months ended March 31, 2018. (5) In March 2019, we entered
into a settlement in connection with an additional European
waste-to-energy EPC contract, for which notice to proceed was not
given and the contract was not started. The settlement eliminates
our obligations and our risk related to acting as the prime EPC
should the project move forward.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190509005997/en/
Investor Contact:Megan WilsonVice President, Corporate
Development & Investor RelationsBabcock & Wilcox
Enterprises704.625.4944 | investors@babcock.com
Media Contact:Ryan CornellPublic RelationsBabcock &
Wilcox Enterprises330.860.1345 |
rscornell@babcock.com
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