- Improved continuing operations revenues and adjusted EBITDA
compared to the third quarter of 2022, led by Thermal
Revenues increasing 17%
- Announced a commitment for a $150 million Senior Secured
Credit facility refinancing
- Signed memorandum of understanding “MoU” for up to 200
tonnes per day of Hydrogen offtake in Louisiana with CO2 capture
over a 10-year period
- Appointed Dr. Naomi Boness (Ph.D.) to Board of Directors,
strengthening the Company’s expertise in hydrogen generation and
carbon capture
- Announced strategic business realignment focused on higher
margin aftermarket businesses and more predictable cash flows to
improve the balance sheet and better position the Company for
future growth in BrightLoop™ and ClimateBright™
- Expected annualized cost savings of over $30 million related
to strategic business realignment
- Company considering strategic alternatives regarding
non-strategic assets
- Announced decision to reclassify B&W Solar out of
continuing operations
Q3 2023 Continuing Operations Financial Highlights
– Revenues of $239.4 million, a 13% improvement compared to the
third quarter of 2022 – Net loss of $12.3 million, compared to a
net loss of $12.8 million in the third quarter of 2022 – Loss per
share of $0.18, compared to a loss per share of $0.15 in the third
quarter of 2022 – Consolidated adjusted EBITDA of $20.0 million,
after $2.0 million in expenses from ClimateBright™, an improvement
compared to $13.0 million in the third quarter of 2022 – Ending
backlog of $507.0 million, in-line with our expectations
Updated Outlook
– Updated backlog growth to a range of $550.0 million to $650.0
million by year-end 2023 – Updated Full Year 2023 Adjusted EBITDA
target of $85.0 million to $90.0 million, excluding BrightLoop™ and
ClimateBright™ – Introduced Full Year 2024 Adjusted EBITDA target
of $100.0 – $110.0 million, excluding BrightLoop™ and
ClimateBright™
Babcock & Wilcox Enterprises, Inc. ("B&W" or the
"Company") (NYSE: BW) announced results for the third quarter of
2023 and information regarding its strategic business
realignment.
"Our third quarter results were highlighted by revenue growth,
achieving another consecutive quarter of broad-based revenue
expansion on a year-over-year basis, led by Thermal increasing
17%,” said Kenneth Young, B&W’s Chairman and Chief Executive
Officer. “We are encouraged by the increased volumes for parts and
services across our Renewable and Thermal segments, which drove the
top-line performance during the third quarter. We are reducing the
reliance on new build projects which require high interest LCs and
typically lower margins, which will in turn, allow us to reduce the
associated overhead and interest costs. We are also expanding our
BrightLoop™ and ClimateBright™ investments, which together,
reinforce our updated full-year adjusted EBITDA target for 2023 and
newly introduced 2024 target.”
“We continue to progress our strategy to deploy our hydrogen and
decarbonization technologies at commercial scale. Most notably, we
are pleased to announce several meaningful developments related to
our current BrightLoop™ project portfolio,” continued Young. “Our
dedicated BrightLoop™ organization has made exceptional progress in
terms of securing an MoU for hydrogen offtake, advancing project
financing, and permitting in the states where these facilities will
be located. Furthermore, we are excited to announce the appointment
of Dr. Naomi Boness (Ph.D.) to our Board of Directors. Dr. Boness’
expertise in the energy sector, particularly in hydrogen generation
and carbon capture, will prove invaluable as we continue to develop
our hydrogen strategy.”
“The Company also announced today a strategic business
realignment which positions B&W for more predictable cash flow
generation that leverages our aftermarket business across each
segment, capitalizing on higher margin opportunities,” Young added.
“In response to today’s market conditions, which include higher
interest costs and limited new build capital expenditures by our
customers, we see a growing global trend in extending the
operational lifespans of existing power and industrial generation
facilities. This presents us with an opportunity to shift our focus
to the more predictable revenue streams generated from our
aftermarket businesses. We plan to utilize these cash flows to
strengthen our balance sheet and reduce our debt. We are also
evaluating strategic alternatives related to non-strategic assets.
We believe these actions, along with project financing, will
position the Company to fund future growth through evolving
BrightLoop™ and ClimateBright™ technology opportunities. Further,
we expect to realize up to $30 million in annualized cost savings
primarily through reducing the high overhead associated with
seeking multiple new-build projects. Additionally, we have
announced our decision to reclassify our solar division from
continuing operations. We believe that this strategic business
realignment is an important step forward to improve our cash flows
as we continue to deploy our hydrogen technologies.”
“Looking ahead, keeping the current global energy landscape in
mind and considering our shift in focus, we are optimistic about
the potential for additional near-term bookings and our revised
pipeline of over $8.5 billion in identified global project
opportunities over the next three years. With the exclusion of
Solar and based on our existing project visibility, we are revising
our adjusted EBITDA targets for the full year 2023 to $85.0 million
to $90.0 million, when excluding BrightLoop™ and ClimateBright™.
Our strategic focus on promoting future growth aligns with the
sustained demand we observe across all segments, paving the way for
improved performance in 2024.”
Strategic Business Realignment Plan
The following elements are integral to our strategy to realign
our core competencies with sustainable and profitable growth:
- Greater focus on higher margin aftermarket parts and services
across all three segments while reducing overhead associated with
large new build projects
- Reducing required security packages with a targeted reduction
of up to $20 million in posted Letters of Credit (“LCs”) by the end
of fiscal year 2024
- Refinancing existing $150 million Senior Secured Credit
facility to reduce our interest expense by up to $5 million
- Bolstering cash flow generation and strengthening the balance
sheet along with project level financing to accelerate the
deployment of our BrightLoop™ and ClimateBright™ technologies
Q2 2023 Continuing Operations Financial Summary
Revenues in the third quarter of 2023 were $239.4 million, a 13%
improvement compared to the third quarter of 2022, primarily
attributable to higher volumes in our Renewable segment due to
B&W Renewable Services and to Thermal segment volume increasing
due to a higher level of construction and parts activity. Net loss
in the third quarter of 2023 was $12.3 million, compared to a net
loss of $12.8 million in the third quarter of 2022. Loss per share
in the third quarter of 2023 was $0.18 compared to a loss per share
of $0.15 in the third quarter of 2022. Operating income in the
third quarter of 2023 was $5.5 million compared to operating loss
of $2.7 million in the third quarter of 2022. Adjusted EBITDA was
$20.0 million compared to $13.0 million in the third quarter of
2022. Bookings in the third quarter of 2023 were $198 million.
Ending backlog was $507 million, which is a 9% decrease compared to
backlog at the end of the third quarter of 2022. 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
$87.1 million for the third quarter of 2023, an increase of 11%
compared to $78.5 million in the third quarter of 2022. The
increase in revenue is primarily due to higher volume associated
with Renewable Service. Adjusted EBITDA in the third quarter of
2023 was $10.1 million compared to $4.5 million in the third
quarter of 2022, primarily due to the higher revenue volume
described above.
Babcock & Wilcox Environmental segment revenues were
$46.4 million in the third quarter of 2023, an increase of 4%
compared to $44.6 million in the third quarter of 2022. The
increase is primarily driven by lower volume related to flue gas
treatment projects offset by higher overall volume of cooling
technology projects. Adjusted EBITDA in the third quarter of 2023
was $5.0 million, compared to $3.1 million in the third quarter of
2022, primarily driven by higher product mix as described above
along with favorable close out of a flue gas treatment project.
Babcock & Wilcox Thermal segment revenues were $107.0
million in the third quarter of 2023, an increase of 17% compared
to $91.3 million in the third quarter of 2022. The revenue increase
is attributable to higher level of volume in our construction
project business, parts and service and our package boiler
business, partially offset by a decline in service projects.
Adjusted EBITDA in the third quarter of 2023 was $11.3 million, an
increase of 5% compared to $10.8 million in the third quarter of
2022, primarily driven by the higher revenue volume and product mix
described above.
Liquidity and Balance Sheet
At September 30, 2023, the Company had total debt of $377.6
million and a cash, cash equivalents and restricted cash balance of
$65.1 million.
Reclassifying Solar from Continuing Operations
As part of our strategic business realignment, the Company is
actively marketing our Solar assets, resulting in the accounting of
the Solar operations as held for sale. As a result, the Company has
written off the entire balance of goodwill associated with the
Solar business.
Significantly Reducing Cost of Debt
Subsequent to September 30, 2023, we obtained a commitment to
refinance our Senior Credit facility. We also amended our existing
Reimbursement Agreement, including updating certain financial
covenants thereunder. The refinancing commitment upon closing is
expected to reduce our interest cost by up to $5 million per year
based on current interest rates.
Impacts of Market Conditions
We have experienced and may continue to experience, supply chain
disruptions driven by any number of events globally, including
pandemics, geopolitical conflicts (including the ongoing conflicts
in Ukraine and the Middle East), climate change and others. We have
also observed significant delays and disruptions of service and
material providers and negative impacts to pricing of certain
products. These delays and disruptions have had, and could continue
to have, an adverse impact on our ability to meet customers’
demands and schedules. We are continuing to actively monitor the
impact of these market conditions on current and future periods and
actively manage costs and our liquidity position to provide
additional flexibility while still supplying our customers and
their specific needs. The duration and scope of these conditions
cannot be predicted, and therefore, any anticipated negative
financial impact to our operating results cannot be reasonably
estimated.
Earnings Call Information
B&W plans to host a conference call and webcast on Thursday,
November 9, 2023 at 5 p.m. ET to discuss the Company’s third
quarter 2023 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
(833) 470-1428; 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 539487. 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. 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 a non-GAAP metric
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 presents 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 the Company's 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. Prior period
results have been revised to conform with the revised definition
and present separate reconciling items in our reconciliation,
including business transition costs.
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. The Company is in the
process of exiting its only remaining fixed fee Operational and
Maintenance Contract in our Renewable segment. A similar contract
was exited as of December 31, 2022. The company believes it is
useful to exclude the impact of this contract on our operating
results as well as our backlog in order to highlight the
performance of the business.
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 this 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 global
macroeconomic conditions, including inflation and volatility in the
capital markets; the impact of our divestiture of Babcock &
Wilcox Solar Energy, Inc.("Babcock & Wilcox Solar", "B&W
Solar"); the refinancing of our senior debt; our ability to
integrate acquired businesses and the impact of those acquired
businesses on our cash flows, results of operations and financial
condition, including our recent acquisitions of Babcock &
Wilcox Renewable Service A/S, formerly known as VODA A/S ("VODA"),
Fossil Power Systems, Inc. ("FPS"), Optimus Industries, LLC
("Optimus") and certain assets of Hamon Research-Cottrell, Inc; our
recognition of any asset impairments as a result of any decline in
the value of our assets or our efforts to dispose of any assets in
the future; 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 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 our businesses and
our ability to win work, including identified project opportunities
in our 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; 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,
partners or suppliers to perform their obligations on time and as
specified; delays initiated by our customers; our ability to
successfully resolve claims by vendors for goods and services
provided and claims by customers for items under warranty; 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 B&W Renewable, B&W Environmental and B&W
Thermal segments; our ability to successfully partner with third
parties to win and execute contracts within our B&W
Environmental, B&W Renewable and B&W Thermal segments;
changes in our effective tax rate and tax positions, including any
limitation on our ability to use our net operating loss
carryforwards and other tax assets; 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; difficulties we may encounter
in obtaining regulatory or other necessary permits or approvals;
changes in actuarial assumptions and market fluctuations that
affect our net pension liabilities and income; our ability to
successfully compete with current and future competitors; 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 we do business or
seek new business; the impact of the ongoing conflicts in Ukraine
and the Middle East; the impact of pandemics or other global health
crises, and the other factors specified and set forth under "Risk
Factors" in our periodic reports filed with the Securities and
Exchange Commission, including our most recent annual report on
Form 10-K filed on March 16, 2023.
These forward-looking statements are made based upon detailed
assumptions and reflect management’s current expectations and
beliefs. While we believe that these assumptions underlying the
forward-looking statements are reasonable, we caution that it is
very difficult to predict the impact of known factors, and it is
impossible for us to anticipate all factors that could affect
actual results.
The forward-looking statements included herein are made only as
of the date hereof. We undertake 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 leader in energy and environmental products and services
for power and industrial markets worldwide. Follow us on LinkedIn
and learn more at babcock.com.
Exhibit 1
Babcock & Wilcox Enterprises,
Inc.
Condensed Consolidated Statements of
Operations(1)
(In millions, except per share
amounts)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Revenues
$
239.4
$
211.7
$
772.2
$
611.5
Costs and expenses:
Cost of operations
186.0
164.3
603.7
478.2
Selling, general and administrative
expenses
45.0
47.6
144.7
131.0
Advisory fees and settlement costs
0.6
1.2
(1.3
)
10.3
Restructuring activities
1.3
0.4
2.7
0.4
Research and development costs
0.9
1.0
3.1
2.9
Gain on asset disposals, net
—
—
—
(7.1
)
Total costs and expenses
233.9
214.4
753.0
615.6
Operating income (loss)
5.5
(2.7
)
19.2
(4.1
)
Other (expense) income:
Interest expense
(13.4
)
(11.1
)
(37.2
)
(32.7
)
Interest income
0.3
0.1
0.9
0.2
Benefit plans, net
(0.1
)
7.4
(0.3
)
22.3
Foreign exchange
(4.9
)
(2.0
)
(4.2
)
(3.2
)
Other income (expense) - net
—
0.5
(0.7
)
(0.2
)
Total other expense
(18.1
)
(5.1
)
(41.6
)
(13.6
)
Loss before income tax (benefit)
expense
(12.6
)
(7.8
)
(22.3
)
(17.7
)
Income tax (benefit) expense
(0.3
)
4.9
2.0
4.8
Net loss from continuing
operations
(12.3
)
(12.8
)
(24.4
)
(22.5
)
Loss from discontinued operations, net of
tax
(104.5
)
(7.8
)
(109.9
)
(9.8
)
Net loss
(116.8
)
(20.6
)
(134.2
)
(32.2
)
Net (income) loss attributable to
non-controlling interest
(0.1
)
2.8
(0.2
)
3.6
Net loss attributable to
stockholders
(116.9
)
(17.8
)
(134.5
)
(28.6
)
Less: Dividend on Series A preferred
stock
3.7
3.7
11.1
11.1
Net loss attributable to stockholders
of common stock
$
(120.6
)
$
(21.5
)
$
(145.6
)
$
(39.7
)
Basic and diluted loss per share:
Continuing operations
$
(0.18
)
$
(0.15
)
$
(0.40
)
$
(0.34
)
Discontinued operations
(1.17
)
(0.09
)
(1.24
)
(0.11
)
$
(1.35
)
$
(0.24
)
$
(1.64
)
$
(0.45
)
Shares used in the computation of loss per
share:
Basic and diluted
89.1
88.3
88.9
88.1
(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)
September 30, 2023
December 31, 2022
Cash and cash equivalents
$
48.4
$
76.2
Current restricted cash and cash
equivalents
6.5
15.3
Accounts receivable – trade, net
154.1
158.4
Accounts receivable – other
43.6
38.5
Contracts in progress
123.5
118.2
Inventories, net
113.5
102.6
Other current assets
22.8
27.0
Assets held for sale
29.9
21.4
Total current assets
542.3
557.6
Net property, plant and equipment, and
finance lease
83.6
84.9
Goodwill
100.4
100.4
Intangible assets, net
46.1
51.6
Right-of-use assets
27.8
28.4
Long-term restricted cash
10.2
21.4
Deferred income taxes
4.7
3.0
Other assets
22.2
27.4
Noncurrent assets held for sale
—
68.0
Total assets
$
837.3
$
942.7
Accounts payable
$
144.3
$
131.2
Accrued employee benefits
12.2
12.5
Advance billings on contracts
95.4
130.9
Accrued warranty expense
8.5
9.6
Financing lease liabilities
1.3
1.2
Operating lease liabilities
3.6
3.5
Other accrued liabilities
72.3
54.0
Loans payable
5.3
3.8
Current liabilities held for sale
50.6
24.8
Total current liabilities
393.5
371.5
Senior notes
337.2
335.5
Loans payable, net of current portion
35.1
13.2
Pension and other postretirement benefit
liabilities
134.5
136.2
Finance lease liabilities, net of current
portion
26.6
27.5
Operating lease liabilities, net of
current portion
25.2
25.6
Deferred tax liability
8.6
10.1
Non-current liabilities held for sale
—
5.7
Other non-current liabilities
18.2
19.6
Total liabilities
979.0
944.7
Commitments and contingencies
Stockholders' deficit:
Preferred stock, par value $0.01 per
share, authorized shares of 20,000; issued and outstanding shares
7,669 at both September 30, 2023 and December 31, 2022
0.1
0.1
Common stock, par value $0.01 per share,
authorized shares of 500,000; issued and outstanding shares of
89,371 and 88,700 at September 30, 2023 and December 31, 2022,
respectively
5.1
5.1
Capital in excess of par value
1,544.8
1,537.6
Treasury stock at cost, 2,135 and 1,868
shares at September 30, 2023 and December 31, 2022,
respectively
(115.2
)
(113.8
)
Accumulated deficit
(1,504.5
)
(1,358.9
)
Accumulated other comprehensive loss
(72.7
)
(72.8
)
Stockholders' deficit attributable to
shareholders
(142.3
)
(2.6
)
Non-controlling interest
0.6
0.5
Total stockholders' deficit
(141.7
)
(2.1
)
Total liabilities and stockholders'
deficit
$
837.3
$
942.7
(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)
Nine Months Ended September
30,
2023
2022
Cash flows from operating activities:
Net loss from continuing operations
$
(24.4
)
$
(22.5
)
Loss from discontinued operations, net of
tax
(109.9
)
(9.8
)
Net loss
(134.2
)
(32.2
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Goodwill impairment
56.6
7.2
Change in fair value of contingent
consideration
—
(9.6
)
Depreciation and amortization of
long-lived assets
16.5
13.2
Amortization of deferred financing costs
and debt discount
3.7
3.9
Amortization of guaranty fee
0.5
0.5
Non-cash operating lease expense
4.4
5.7
Loss (gain) on asset disposals
0.2
(7.2
)
Benefit from deferred income taxes,
including valuation allowances
(5.6
)
(2.6
)
Prior service cost amortization for
pension and postretirement plans
0.7
0.6
Stock-based compensation
7.2
6.5
Foreign exchange
4.2
3.2
Changes in operating assets and
liabilities:
Accounts receivable - trade, net and
other
4.3
(26.2
)
Contracts in progress
8.5
(48.2
)
Advance billings on contracts
(29.7
)
28.9
Inventories, net
(10.5
)
(15.1
)
Income taxes
(0.2
)
(2.1
)
Accounts payable
28.1
39.6
Accrued and other current liabilities
(0.6
)
(10.8
)
Accrued contract loss
7.3
3.5
Pension liabilities, accrued
postretirement benefits and employee benefits
(2.1
)
(27.1
)
Other, net
(9.6
)
1.0
Net cash used in operating
activities
(50.5
)
(67.4
)
Cash flows from investing
activities:
Purchase of property, plant and
equipment
(10.5
)
(8.9
)
Acquisition of business, net of cash
acquired
—
(64.9
)
Proceeds from sale of business and assets,
net
—
2.5
Purchases of available-for-sale
securities
(5.3
)
(5.0
)
Sales and maturities of available-for-sale
securities
7.4
8.5
Other, net
(0.1
)
0.3
Net cash used in investing
activities
(8.6
)
(67.6
)
Cash flows from financing
activities:
Issuance of senior notes
—
5.5
Borrowings on loan payable
97.1
1.3
Repayments on loan payable
(72.5
)
(13.9
)
Payment of holdback funds from
acquisition
(2.8
)
—
Payment of preferred stock dividends
(7.4
)
(11.1
)
Shares of common stock returned to
treasury stock
(1.4
)
(2.8
)
Debt issuance costs
(0.2
)
0.2
Other, net
(0.9
)
1.7
Net cash provided by (used in)
financing activities
11.9
(19.1
)
Effects of exchange rate changes on
cash
(0.7
)
(3.2
)
Net decrease in cash, cash equivalents
and restricted cash
(47.9
)
(157.2
)
Cash, cash equivalents and restricted cash
at beginning of period
113.0
226.7
Cash, cash equivalents and restricted cash
at end of period
$
65.1
$
69.5
(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 September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
REVENUES:
Babcock & Wilcox Renewable
$
87.1
$
78.5
$
256.4
$
196.4
Babcock & Wilcox Environmental
46.4
44.6
134.6
111.2
Babcock & Wilcox Thermal
107.0
91.3
384.2
309.9
Other
(1.1
)
(2.8
)
(3.0
)
(6.0
)
$
239.4
$
211.7
$
772.2
$
611.5
ADJUSTED EBITDA:
Babcock & Wilcox Renewable
$
10.1
$
4.5
$
19.2
$
15.7
Babcock & Wilcox Environmental
5.0
3.1
10.3
5.1
Babcock & Wilcox Thermal
11.3
10.8
49.4
41.3
Corporate
(5.6
)
(4.4
)
(16.2
)
(13.0
)
Research and development costs
(0.9
)
(0.9
)
(3.1
)
(2.5
)
$
20.0
$
13.0
$
59.6
$
46.5
AMORTIZATION EXPENSE:
Babcock & Wilcox Renewable
$
0.5
$
0.5
$
1.6
$
1.7
Babcock & Wilcox Environmental
0.8
0.8
2.3
2.4
Babcock & Wilcox Thermal
1.1
1.1
3.3
3.6
$
2.4
$
2.3
$
7.2
$
7.7
DEPRECIATION EXPENSE:
Babcock & Wilcox Renewable
$
0.6
$
0.5
$
2.1
$
1.4
Babcock & Wilcox Environmental
0.2
0.2
0.6
0.6
Babcock & Wilcox Thermal
1.4
1.5
5.0
4.9
$
2.2
$
2.2
$
7.7
$
6.9
As of September 30,
BACKLOG:
2023
2022
Babcock & Wilcox Renewable
$
133
$
199
Babcock & Wilcox Environmental
173
121
Babcock & Wilcox Thermal
196
233
Other/Eliminations
5
2
$
507
$
555
(1) Figures may not be clerically accurate
due to rounding.
Exhibit 5
Babcock & Wilcox Enterprises,
Inc.
Reconciliation of Adjusted
EBITDA(3)
(In millions)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Net loss from continuing
operations
$
(12.3
)
$
(12.8
)
$
(24.4
)
$
(22.5
)
Interest expense
13.4
11.4
37.1
33.6
Income tax expense
(0.3
)
4.9
2.0
4.8
Depreciation & amortization
4.6
4.5
15.0
14.6
EBITDA
5.4
8.1
29.7
30.4
Benefit plans, net
0.1
(7.4
)
0.3
(22.3
)
Gain on sales, net
—
—
—
(0.1
)
Stock compensation
0.4
3.4
5.9
5.2
Restructuring activities and business
services transition costs
1.3
1.7
3.3
6.2
Settlement and related legal costs
—
0.8
(3.0
)
7.2
Advisory fees for settlement costs and
liquidity planning
—
—
0.5
1.9
Acquisition pursuit and related costs
0.3
2.6
0.6
4.8
Product development (1)
0.9
0.8
3.3
2.6
Foreign exchange
4.9
2.0
4.2
3.2
Financial advisory services
—
0.4
—
1.1
Contract disposal (2)
4.3
(0.1
)
8.4
2.6
Letter of credit fees
2.0
1.1
5.6
3.0
Other - net
0.4
(0.4
)
0.8
0.6
Adjusted EBITDA
$
20.0
$
13.0
$
59.6
$
46.5
(1) Costs associated with development of
commercially viable products that are ready to go to market.
(2) Impacts of the disposal of our O&M
contracts has been adjusted in the prior period to ensure uniform
presentation with the current period.
(3) Figures may not be clerically accurate
due to rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231109301523/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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