– Revenues, Adjusted EBITDA, Bookings and
Backlog have improved compared to the second quarter of 2021
– Company remains positioned for milestone
2022
Q2 2022 Highlights:
– Revenues of $221.0 million, a 9% improvement compared to the
second quarter of 2021 – B&W Renewable segment revenues of
$75.2 million, a 96% increase compared to the second quarter of
2021 – Bookings of $245 million, a 46% improvement compared to
second quarter bookings in 2021 – Ending backlog of $731 million, a
46% increase compared to backlog at the end of the second quarter
of 2021 – Net loss of $6.3 million, compared to net income of $1.4
million in the second quarter of 2021 – Loss per share of $0.07,
compared to earnings per share of $0.02 in the second quarter of
2021 – Consolidated adjusted EBITDA of $20.6 million, a 35%
increase compared to the second quarter of 2021 – Establishes
Senior P&L Leadership over Thermal and Renewable/Environmental
Segments
Babcock & Wilcox Enterprises, Inc. ("B&W" or the
"Company") (NYSE: BW) announced results for the second quarter of
2022.
"Our results for the second quarter demonstrate our continued
progress against our plan and long-term growth strategy. These
accomplishments, combined with our recent and anticipated bookings,
position us for a milestone 2022, 2023 and beyond,” said Kenneth
Young, B&W’s Chairman and Chief Executive Officer. “We’re
expanding our presence globally, both organically and through
recent strategic acquisitions, and remain intently focused on
continuing to convert our global pipeline of identified project
opportunities to bookings as reflected in the 46% improvement over
the same quarter a year ago. The war in Ukraine and resurgence of
COVID-19, along with the dynamic macroeconomic environment, present
ongoing challenges to our supply chain and overall project timing,
and while we continue efforts to effectively mitigate these
challenges, we remain cognizant of the uncertainties they
create.”
“We continue to make tremendous strides within our clean and
renewable energy businesses, and as we advance the green
initiatives within our environmental and renewable segments through
technology development and strategic acquisitions, we believe we
are uniquely positioned to lead the global clean energy transition.
Our previously disclosed partnership with Fidelis and Kiewit to
provide our ClimateBright™ decarbonization platform along with
B&W’s 200-megawatt electric net-negative-carbon biomass power
plant at the Port of Greater Baton Rouge, Louisiana, provides an
outstanding example of the strides forward we are making in this
space. Fidelis recently announced the start of construction for the
Gr�n Fuels complex at this port, which using B&W’s biomass and
BrightLoop™ technologies, would create the world’s largest
net-negative CO2 biomass-to-energy facility.”
“Consistent with our strategic growth plan, we continue to
evaluate additional acquisition opportunities for both emerging
technologies and mature markets that provide attractive economics
and significant synergistic potential,” Young stated. “As we look
forward to the second half of 2022, based on our first-half
performance and combined with strong recent bookings and backlog,
we are reiterating our 2022 target of $110 million to $120 million
in adjusted EBITDA1. However, we acknowledge the uncertainty that
remains with current macroeconomic and geopolitical headwinds such
as the war in Ukraine, global supply chain constraints and
potential project delays. Although we have largely mitigated these
factors to date, these headwinds continue and have the potential to
impact the timing of our revenue recognition on projects as we
progress through the second half of 2022. Longer term, our robust
pipeline of more than $7.5 billion of identified global project
opportunities in the next three years positions us well for
multi-year growth and we are preparing to capitalize on the
positive impacts across our customer base as demand for long-term
energy security and decarbonization technology grows.”
“To further drive our growth efforts, we have established senior
leadership over our Global Thermal Segment and our Global Renewable
& Environmental Segments, with direct reporting to Jimmy
Morgan, Executive Vice President and Chief Operating Officer,”
Young said. “Christopher Riker has been named Senior Vice
President, Thermal, to lead our Thermal Business, while Joseph
Buckler has been named Senior Vice President, Clean Energy, to lead
our Renewable & Environmental Segments. The continued growth of
our business makes it timely to put these changes in place to
provide specific focus over these segments from a market-facing and
P&L perspective, and to further unlock shareholder value in
maximizing their long-term strategic growth plans.”
Additionally, Brandy Johnson has been named Chief Strategy and
Technology Officer. She will report to Kenneth Young and will lead
the research and development, demonstration and commercial
implementation efforts for our mature and emerging
technologies.
“We are excited to move Chris, Joe and Brandy into these new
roles, which will further enhance our ability to react strongly and
quickly to market changes and provide additional focus to not only
drive development and implementation of our new technologies, but
also as we continue to augment our mature Thermal technologies to
support the growing needs of our customers,” said Mr. Young.
______________________________
1
The most comparable GAAP financial measure
is not available without unreasonable effort.
Q2 2022 Financial Summary
Consolidated revenues in the second quarter of 2022 were $221.0
million, a 9% improvement compared to the second quarter of 2021,
primarily due to higher volume driven by new-build projects and the
impact of acquisitions completed in the first quarter of 2022, in
addition to a higher level of volume in the Renewable segment and
partially offset by a lower level of construction activity in the
Thermal segment. The negative impacts on the global economy as a
result of the ongoing impact of COVID-19 and the Russia-Ukraine
military conflict adversely impacted each of the Company's segments
causing shortages of supplies and materials and affecting the
timing of revenue on several projects. Net loss in the second
quarter of 2022 was $6.3 million, a decrease of $7.7 million
compared to net income of $1.4 million in the second quarter of
2021, primarily due to the effects of unfavorable foreign exchange
rates and a legal settlement. Loss per share in the second quarter
of 2022 was $0.07 compared to earnings per share of $0.02 in the
second quarter of 2021. GAAP operating income in the second quarter
of 2022 was $3.7 million compared to operating income of $2.8
million in the second quarter of 2021. Adjusted EBITDA was $20.6
million compared to $15.2 million in the second quarter of 2021.
Bookings in the second quarter of 2022 were $245 million, a 46%
increase compared to second quarter bookings in 2021. Ending
backlog was $731 million, a 46% increase compared to backlog at the
end of the second quarter of 2021. All amounts referred to in this
release are on a continuing operations basis, unless otherwise
noted. Reconciliations of net income, the most directly comparable
GAAP measure, to adjusted EBITDA for the Company's segments, are
provided in the exhibits to this release.
Babcock & Wilcox Renewable segment revenues were
$75.2 million for the second quarter of 2022, an increase of 96%
compared to $38.3 million in the second quarter of 2021. The
increase in revenue was primarily driven by higher volume of
new-build projects as well as the acquisitions of Fosler
Construction and VODA. Adjusted EBITDA in the quarter was $8.9
million compared to $3.4 million in the second quarter of 2021,
primarily due to the higher revenue volume of new-build projects,
as discussed above in addition to a $7.0 million non-recurring gain
on sale related to development rights of a future solar project
that was sold, partially offset by higher levels of shared overhead
and SG&A allocated to the segment.
Babcock & Wilcox Environmental segment revenues were
$31.6 million in the second quarter of 2022, an increase of 11%
compared to $28.4 million in the second quarter of 2021. The
increase was primarily driven by an emissions control technologies
contract for an industrial facility. Adjusted EBITDA was $0.6
million, compared to $2.7 million in the same period last year,
primarily due to the lower volume of parts sales.
Babcock & Wilcox Thermal segment revenues were $116.3
million in the second quarter of 2022, a decrease of 15% compared
to $136.3 million in the second quarter of 2021, primarily due to
completion of a construction project during Q2 2021, offset
partially by new acquisitions. Adjusted EBITDA in the second
quarter of 2022 was $16.4 million, an increase of 30% compared to
$12.6 million in the second quarter of 2021, primarily due to the
mix of products.
Liquidity and Balance Sheet
At June 30, 2022, the Company had total debt of $334.3 million
and a cash, cash equivalents and restricted cash balance of $80.2
million.
Impacts of COVID-19 and the Russia-Ukraine Military
Conflict
The ongoing COVID-19 pandemic and Russia-Ukraine military
conflict has disrupted business operations, including trade,
commerce, financial and credit markets, and daily life throughout
the world. Our business has been, and continues to be, adversely
impacted by the measures taken and restrictions imposed in the
countries in which we operate and by local governments and others
to control the spread of this virus as well as the negative impact
of the Russia-Ukraine military conflict.
The COVID-19 pandemic has also disrupted global supply chains
including the manufacturing, supply, distribution, transportation
and delivery of the Company's products. The Company has observed
significant disruptions of the operations of logistics, service
providers, delays in shipments and negative impacts to pricing of
certain products. Disruptions and delays in the Company's supply
chains as a result of the COVID-19 pandemic could continue to
adversely impact the ability to meet customers’ demands.
Additionally, the prioritization of shipments of certain products
as a result of the pandemic could cause delays in the shipment or
delivery of the Company's products. Such disruptions could result
in reduced sales.
The impact of the COVID-19 pandemic and the Russia-Ukraine
military conflict have caused many of the projects the Company had
anticipated would begin during the prior two years to be delayed
into 2022 and beyond. For example, customers and projects require
B&W's employees to travel to customer and project worksites.
Certain customers and significant projects are located in areas
where travel restrictions have been imposed, certain customers have
closed or reduced on-site activities, and timelines for completion
of certain projects have, as noted above, been extended into 2022
and beyond. Additionally, out of concern for the Company's
employees, even where restrictions permit employees to return to
its offices and worksites, the Company has incurred additional
costs to protect its employees as well as advised those who are
uncomfortable returning to worksites due to the pandemic that they
are not required to do so for an indefinite period of time. The
resulting uncertainty concerning, among other things, the spread
and economic impact of the virus has also caused significant
volatility and, at times, illiquidity in global equity and credit
markets.
The Russia-Ukraine military conflict has also disrupted the
supply of materials that the Company and its customers source from
the Ukraine, such as steel. In certain cases, customers have had to
delay projects due to supply chain disruption. Such delays have
negatively impacted the anticipated start date of projects.
Additionally, supply chain disruptions caused by COVID-19 and the
Russia-Ukraine military conflict have prompted the Company to seek
alternative suppliers and could potentially result in indefinite
delays in receiving materials. The full extent of the impact of
these ongoing events on the Company’s operational and financial
performance is uncertain, out of the Company’s control, and cannot
be predicted.
Earnings Call Information
B&W plans to host a conference call and webcast on Monday,
August 8, 2022 at 5 p.m. EDT to discuss the Company’s second
quarter 2022 results. The listen-only audio of the conference call
will be broadcast live via the Internet on B&W’s Investor
Relations site. The dial-in number for participants in the U.S. is
(844) 200-6205; the dial-in number for participants in Canada is
(833) 950-0062; the dial-in number for participants in all other
locations is (929) 526-1599. The conference ID for all participants
is 352537. A replay of this conference call will remain accessible
in the investor relations section of the Company’s website for a
limited time.
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures internally to
evaluate its performance and in making financial and operational
decisions. When viewed in conjunction with GAAP results and the
accompanying reconciliation, the Company believes that its
presentation of these measures provides investors with greater
transparency and a greater understanding of factors affecting its
financial condition and results of operations than GAAP measures
alone. Additionally, the Company redefined its definition of
adjusted EBITDA to eliminate the effects of certain items including
the loss from a non-strategic business, interest on letters of
credit included in cost of operations and loss on business held for
sale. Prior period results have been revised to conform with the
revised definition and present separate reconciling items in our
reconciliation, including business transition costs. The
presentation of non-GAAP financial measures should not be
considered in isolation or as a substitute for the Company’s
related financial results prepared in accordance with GAAP.
Adjusted EBITDA on a consolidated basis is defined as the sum of
the Adjusted EBITDA for each of the segments, further adjusted for
corporate allocations and research and development costs. At a
segment level, the adjusted EBITDA presented is consistent with the
way the Company's chief operating decision maker reviews the
results of operations and makes strategic decisions about the
business and is calculated as earnings before interest expense,
tax, depreciation and amortization adjusted for items such as gains
or losses arising from the sale of non-income producing assets, net
pension benefits, restructuring costs, impairments, gains and
losses on debt extinguishment, costs related to financial
consulting, research and development costs and other costs that may
not be directly controllable by segment management and are not
allocated to the segment. The Company presented consolidated
Adjusted EBITDA because it believes it is useful to investors to
help facilitate comparisons of the ongoing, operating performance
before corporate overhead and other expenses not attributable to
the operating performance of the Company's revenue generating
segments. This release also presents certain targets for our
Adjusted EBITDA in the future; these targets are not intended as
guidance regarding how the Company believes the business will
perform. The Company is unable to reconcile these targets to their
GAAP counterparts without unreasonable effort and expense.
Bookings and Backlog
Bookings and backlog are our measure of remaining performance
obligations under our sales contracts. It is possible that our
methodology for determining bookings and backlog may not be
comparable to methods used by other companies.
We generally include expected revenue from contracts in our
backlog when we receive written confirmation from our customers
authorizing the performance of work and committing the customers to
payment for work performed. Backlog may not be indicative of future
operating results, and contracts in our backlog may be canceled,
modified or otherwise altered by customers. Backlog can vary
significantly from period to period, particularly when large new
build projects or operations and maintenance contracts are booked
because they may be fulfilled over multiple years. Because we
operate globally, our backlog is also affected by changes in
foreign currencies each period. We do not include orders of our
unconsolidated joint ventures in backlog.
Bookings represent changes to the backlog. Bookings include
additions from booking new business, subtractions from customer
cancellations or modifications, changes in estimates of liquidated
damages that affect selling price and revaluation of backlog
denominated in foreign currency. We believe comparing bookings on a
quarterly basis or for periods less than one year is less
meaningful than for longer periods, and that shorter-term changes
in bookings may not necessarily indicate a material trend.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements other than statements of historical or current
fact included in the release are forward-looking statements. You
should not place undue reliance on these statements.
Forward-looking statements include words such as “expect,”
“intend,” “plan,” “likely,” “seek,” “believe,” “project,”
“forecast,” “target,” “goal,” “potential,” “estimate,” “may,”
“might,” “will,” “would,” “should,” “could,” “can,” “have,” “due,”
“anticipate,” “assume,” “contemplate,” “continue” and other words
and terms of similar meaning in connection with any discussion of
the timing or nature of future operational performance or other
events.
These forward-looking statements are based on management’s
current expectations and involve a number of risks and
uncertainties, including, among other things, the impact of
COVID-19 and the invasion of Ukraine by Russia on the Company, the
capital markets and global economic climate generally; the
Company's ability to integrate acquired businesses and the impact
of those acquired businesses on the Company's cash flows, results
of operations and financial condition, including the Company's
acquisitions of Fosler Construction, VODA, FPS and Optimus; the
Company’s recognition of any asset impairments as a result of any
decline in the value of its assets or efforts to dispose of any
assets in the future; the Company’s ability to obtain and maintain
sufficient financing to provide liquidity to meet its business
objectives, including surety bonds, letters of credit and similar
financing; the Company’s ability to comply with the requirements
of, and to service the indebtedness under, our debt facility
agreements; our ability to pay dividends on our 7.75% Series A
Cumulative Perpetual Preferred Stock; our ability to make interest
payments on our 8.125% senior notes due 2026 and our 6.50% notes
due 2026; the highly competitive nature of the Company’s businesses
and ability to win work, including identified project opportunities
in the pipeline; general economic and business conditions,
including changes in interest rates and currency exchange rates;
cancellations of and adjustments to backlog and the resulting
impact from using backlog as an indicator of future earnings; the
Company’s 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, partners or suppliers to perform their obligations
on time and as specified; the Company’s ability to successfully
resolve claims by vendors for goods and services provided and
claims by customers for items under warranty; the Company’s ability
to realize anticipated savings and operational benefits from its
restructuring plans, and other cost-saving initiatives; the
Company’s ability to successfully address productivity and schedule
issues in its B&W Renewable, B&W Environmental and B&W
Thermal segments; the Company’s ability to successfully partner
with third parties to win and execute contracts within its B&W
Renewable, B&W Environmental and B&W Thermal segments;
changes in the Company’s effective tax rate and tax positions,
including any limitation on its ability to use its net operating
loss carryforwards and other tax assets; the Company’s ability to
successfully manage research and development projects and costs,
including its efforts to successfully develop and commercialize new
technologies and products; the operating risks normally incident to
its lines of business, including professional liability, product
liability, warranty and other claims against the Company;
difficulties the Company may encounter in obtaining regulatory or
other necessary permits or approvals; changes in actuarial
assumptions and market fluctuations that affect its net pension
liabilities and income; the Company’s ability to successfully
compete with current and future competitors; the Company’s ability
to negotiate and maintain good relationships with labor unions;
changes in pension and medical expenses associated with its
retirement benefit programs; social, political, competitive and
economic situations in foreign countries where it does business or
seeks new business; and the other factors specified and set forth
under "Risk Factors" in the Company’s periodic reports filed with
the Securities and Exchange Commission, including the Company’s
most recent annual report on Form 10-K and its quarterly report on
Form 10-Q for the quarter ended June 30, 2022.
These forward-looking statements are made based upon detailed
assumptions and reflect management’s current expectations and
beliefs. While the Company believes that these assumptions
underlying the forward-looking statements are reasonable, the
Company cautions that it is very difficult to predict the impact of
known factors, and it is impossible for the Company to anticipate
all factors that could affect actual results. The forward-looking
statements included herein are made only as of the date hereof. The
Company undertakes no obligation to publicly update or revise any
forward-looking statement as a result of new information, future
events, or otherwise, except as required by law.
About B&W Enterprises, Inc.
Headquartered in Akron, Ohio, Babcock & Wilcox Enterprises,
Inc. is a global leader in energy and environmental technologies
and services for the power and industrial markets. Follow B&W
on LinkedIn 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 June
30,
Six months ended June
30,
2022
2021
2022
2021
Revenues
$
221.0
$
202.9
$
425.1
$
371.1
Costs and expenses:
Cost of operations
173.3
158.8
336.4
290.2
Selling, general and administrative
expenses
45.0
33.7
88.0
74.2
Advisory fees and settlement costs
5.1
4.5
9.1
7.8
Restructuring activities
(0.1
)
2.4
—
3.4
Research and development costs
1.1
0.6
1.9
1.2
(Gain) loss on asset disposals, net
(7.1
)
—
(7.1
)
(2.0
)
Total costs and expenses
217.4
200.1
428.2
374.8
Operating income (loss)
3.7
2.8
(3.1
)
(3.7
)
Other (expense) income:
Interest expense
(10.7
)
(8.0
)
(21.9
)
(22.2
)
Interest income
0.1
0.1
0.2
0.3
Gain (loss) on debt extinguishment
—
6.5
—
6.5
Loss on sale of business
—
(2.6
)
—
(2.2
)
Benefit plans, net
7.4
5.9
14.9
15.0
Foreign exchange
(4.3
)
1.8
(1.2
)
0.6
Other expense – net
(0.6
)
0.1
(0.6
)
(0.2
)
Total other (expense) income
(8.0
)
3.9
(8.7
)
(2.2
)
(Loss) income before income tax
expense
(4.3
)
6.7
(11.8
)
(5.9
)
Income tax (benefit) expense
(1.4
)
3.5
(0.1
)
6.4
Net (loss) income
(3.0
)
3.1
(11.7
)
(12.3
)
Net loss (income) attributable to
non-controlling interest
0.4
—
0.8
—
Net (loss) income attributable to
stockholders
(2.6
)
3.1
(10.8
)
(12.3
)
Less: Dividend on Series A preferred
stock
3.7
1.7
7.4
1.7
Net (loss) income attributable to
stockholders of common stock
$
(6.3
)
$
1.4
$
(18.3
)
$
(14.1
)
Basic (loss) earnings per share
$
(0.07
)
$
0.02
$
(0.21
)
$
(0.18
)
Diluted (loss) earnings per share
$
(0.07
)
$
0.02
$
(0.21
)
$
(0.18
)
Shares used in the computation of earnings
(loss) per share:
Basic
88.0
85.7
88.0
78.6
Diluted
88.0
87.0
88.0
78.6
(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)
June 30, 2022
December 31, 2021
Cash and cash equivalents
$
71.5
$
224.9
Restricted cash and cash equivalents
8.7
1.8
Accounts receivable – trade, net
147.5
132.1
Accounts receivable – other
49.3
34.6
Contracts in progress
111.9
80.2
Inventories, net
99.1
79.5
Other current assets
27.6
29.4
Total current assets
515.6
582.4
Net property, plant and equipment, and
finance lease
80.5
85.6
Goodwill
164.8
116.5
Intangible assets, net
63.6
43.8
Right-of-use assets
29.9
30.2
Other assets
59.6
54.8
Total assets
$
913.9
$
913.3
Accounts payable
$
109.5
$
85.9
Accrued employee benefits
13.2
13.0
Advance billings on contracts
95.7
68.4
Accrued warranty expense
11.1
12.9
Financing lease liabilities
1.5
2.4
Operating lease liabilities
3.9
4.0
Other accrued liabilities
63.9
54.4
Loans payable
3.8
12.4
Total current liabilities
302.5
253.4
Senior notes
330.0
326.4
Long term loans payable
0.6
1.5
Pension and other postretirement benefit
liabilities
166.1
182.7
Non-current finance lease liabilities
28.8
29.4
Non-current operating lease
liabilities
26.8
26.7
Other non-current liabilities
27.5
34.6
Total liabilities
882.2
854.6
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $0.01 per
share, authorized shares of 20,000; issued and outstanding shares
of 7,669 and 7,669 at June 30, 2022 and December 31, 2021,
respectively
0.1
0.1
Common stock, par value $0.01 per share,
authorized shares of 500,000; issued and outstanding shares of
86,392 and 86,286 at June 30, 2022 and December 31, 2021,
respectively
5.1
5.1
Capital in excess of par value
1,521.9
1,518.9
Treasury stock at cost, 1,552 and 1,525
shares at June 30, 2022 and December 31, 2021, respectively
(111.2
)
(110.9
)
Accumulated deficit
(1,339.4
)
(1,321.2
)
Accumulated other comprehensive loss
(69.3
)
(58.8
)
Stockholders' equity attributable to
shareholders
7.2
33.1
Non-controlling interest
24.5
25.5
Total stockholders' equity
31.7
58.6
Total liabilities and stockholders'
equity
$
913.9
$
913.3
(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)
Six Months Ended June
30,
2022
2021
Cash flows from operating activities:
Net loss
$
(11.7
)
$
(12.3
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization of
long-lived assets
11.9
8.4
Amortization of deferred financing costs
and debt discount
2.3
6.5
Amortization of guaranty fee
0.4
0.9
Non-cash operating lease expense
3.9
2.2
(Gain) loss on sale of business
—
2.2
(Gain) loss on debt extinguishment
—
(6.5
)
Gains on asset disposals
(7.0
)
(2.0
)
(Benefit from) provision for deferred
income taxes
(3.1
)
2.0
Prior service cost amortization for
pension and postretirement plans
0.4
0.4
Stock-based compensation, net of
associated income taxes
3.1
5.7
Foreign exchange
1.2
(0.6
)
Changes in assets and liabilities:
Accounts receivable
(13.8
)
(0.6
)
Contracts in progress
(31.3
)
(5.0
)
Advance billings on contracts
24.6
(10.5
)
Inventories
(13.7
)
(4.8
)
Income taxes
(2.0
)
(2.0
)
Accounts payable
23.7
10.2
Accrued and other current liabilities
(17.9
)
(34.7
)
Accrued contract loss
1.5
(0.3
)
Pension liabilities, accrued
postretirement benefits and employee benefits
(17.5
)
(40.3
)
Other, net
(18.6
)
(5.0
)
Net cash used in operating
activities
(63.6
)
(86.1
)
Cash flows from investing activities:
Purchase of property, plant and
equipment
(2.7
)
(2.2
)
Acquisition of business, net of cash
acquired
(64.9
)
—
Proceeds from sale of business and assets,
net
—
7.2
Purchases of available-for-sale
securities
(3.2
)
(6.7
)
Sales and maturities of available-for-sale
securities
5.0
8.3
Other, net
0.2
—
Net cash (used in) from investing
activities
(65.6
)
6.6
(In millions)
Six Months Ended June
30,
2022
2021
Cash flows from financing activities:
Issuance of senior notes
2.4
138.3
Borrowings on loan payable
1.3
2.6
Repayments on loan payable
(13.4
)
—
Repayments under last out term loans
—
(75.4
)
Borrowings under U.S. revolving credit
facility
—
14.5
Repayments of U.S. revolving credit
facility
—
(178.8
)
Issuance of preferred stock, net
—
106.0
Payment of preferred stock dividends
(7.4
)
(1.7
)
Shares of common stock returned to
treasury stock
(0.2
)
(3.3
)
Issuance of common stock, net
—
161.0
Debt issuance costs
—
(10.9
)
Other, net
1.6
(0.9
)
Net cash (used in) from financing
activities
(15.6
)
151.3
Effects of exchange rate changes on
cash
(1.7
)
4.4
Net (decrease) increase in cash, cash
equivalents and restricted cash
(146.5
)
76.2
Cash, cash equivalents and restricted
cash, beginning of period
226.7
67.4
Cash, cash equivalents and restricted
cash, end of period
$
80.2
$
143.6
(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 June
30,
Six Months Ended June
30,
2022
2021
2022
2021
REVENUES:
Babcock & Wilcox Renewable
$
75.2
$
38.3
$
143.2
$
67.2
Babcock & Wilcox Environmental
31.6
28.4
66.6
59.5
Babcock & Wilcox Thermal
116.3
136.3
218.5
244.6
Other
(2.1
)
(0.2
)
(3.2
)
(0.2
)
$
221.0
$
202.9
$
425.1
$
371.1
ADJUSTED EBITDA:
Babcock & Wilcox Renewable (5)
$
8.9
$
3.4
$
10.3
$
3.6
Babcock & Wilcox Environmental
0.6
2.7
2.0
3.8
Babcock & Wilcox Thermal
16.4
12.6
30.5
23.1
Corporate
(4.2
)
(3.0
)
(8.6
)
(5.7
)
Research and development costs
(1.0
)
(0.5
)
(1.6
)
(1.1
)
$
20.6
$
15.2
$
32.6
$
23.8
AMORTIZATION EXPENSE:
Babcock & Wilcox Renewable (2)
$
0.8
$
0.2
$
2.9
$
0.3
Babcock & Wilcox Environmental
0.7
0.8
1.4
1.6
Babcock & Wilcox Thermal (3)
1.6
0.9
2.8
1.4
$
3.1
$
1.9
$
7.1
$
3.3
DEPRECIATION EXPENSE:
Babcock & Wilcox Renewable
$
0.5
$
0.7
$
1.1
$
1.4
Babcock & Wilcox Environmental
0.2
0.4
0.4
0.9
Babcock & Wilcox Thermal
1.9
1.3
3.3
2.8
$
2.6
$
2.4
$
4.8
$
5.1
As of June 30,
BACKLOG:
2022
2021
Babcock & Wilcox Renewable (4)
$
412
$
221
Babcock & Wilcox Environmental
127
117
Babcock & Wilcox Thermal
193
166
Other/Eliminations
(1
)
(4
)
$
731
$
500
(1)
Figures may not be clerically accurate due
to rounding.
(2)
Amortization expense in the Babcock &
Wilcox Renewable segment includes $0.2 million and $0.4 million in
finance lease amortization for the three and six months ended June
30, 2022, respectively. Amortization expense in the Babcock &
Wilcox Renewable segment includes $0.2 million and $0.3 million in
finance lease amortization for the three and six months ended June
30, 2021, respectively.
(3)
Amortization expense in the Babcock &
Wilcox Thermal segment includes $0.7 million and $1.5 million in
finance lease amortization for the three and six months ended June
30, 2022, respectively. Amortization expense in the Babcock &
Wilcox Thermal segment includes $0.9 million and $1.3 million in
finance lease amortization for the three and six months ended June
30, 2021, respectively.
(4)
Babcock & Wilcox Renewable backlog at
June 30, 2022, includes $129.7 million related to long-term
operation and maintenance contracts for renewable energy plants,
with remaining durations extending until 2034. Generally, such
contracts have a duration of 10-20 years and include options to
extend.
(5)
Adjusted EBITDA for the three and six
months ended June 30, 2022 includes a $7.0 million non-recurring
gain on sale related to development rights of a future solar
project that was sold.
Exhibit 5
Babcock & Wilcox Enterprises,
Inc.
Reconciliation of Adjusted
EBITDA(3)
(In millions)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Net (loss) income
(3.0
)
3.1
(11.7
)
(12.3
)
Interest expense
12.1
8.3
24.4
22.9
Income tax (benefit) expense
(1.4
)
3.5
(0.1
)
6.4
Depreciation & amortization
5.7
4.3
11.9
8.4
EBITDA
13.4
19.3
24.5
25.3
Benefit plans, net
(7.4
)
(5.9
)
(14.9
)
(15.0
)
(Gain) loss on sales, net
(0.1
)
2.6
(0.1
)
0.3
Stock compensation
0.5
0.1
1.8
7.9
Restructuring activities and business
services transition costs
1.8
2.4
4.4
3.4
Advisory fees for settlement costs and
liquidity planning
0.9
2.1
1.9
4.0
Litigation costs
3.9
1.2
6.4
1.5
Gain on debt extinguishment
—
(6.5
)
—
(6.5
)
Acquisition pursuit and related costs
1.4
—
2.2
—
Product development (1)
1.0
0.3
1.8
0.3
Foreign exchange
4.3
(1.8
)
1.2
(0.6
)
Financial advisory services
0.4
1.3
0.7
2.2
Contract step-up purchase price
adjustment
—
—
1.7
—
Loss from business held for sale
—
—
—
0.5
Other - net
0.7
0.3
0.8
0.5
Adjusted EBITDA(2)
$
20.6
$
15.2
$
32.6
$
23.8
(1)
Costs associated with development of
commercially viable products that are ready to go to market.
(2)
Adjusted EBITDA for the three and six
months ended June 30, 2022 includes a $7.0 million non-recurring
gain on sale related to development rights of a future solar
project that was sold.
(3)
Figures may not be clerically accurate due
to rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220808005759/en/
Investor Contact: Lou Salamone, CFO Babcock & Wilcox
Enterprises, Inc. 704.625.4944 | investors@babcock.com
Media Contact: Ryan Cornell Public Relations Babcock
& Wilcox Enterprises, Inc. 330.860.1345 |
rscornell@babcock.com
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