- Announced divestiture of two assets as we continue to pursue
strategic sales and debt refinancing to further improve the balance
sheet and support future growth
- Announced total YTD implied bookings of $810.5 million,
including $543.9 million of bookings, a 27% increase compared to
same period of 2023
- Excluding divestitures, announced implied backlog of $628.2
million, which includes $361.6 million of backlog, a 48% increase
compared to the same period of 2023
- Received final approval to proceed on a previously announced
$246 million natural gas conversion project in Indiana as of
November 2024
- Began ramp up to BrightLoop™ project in Massillon, Ohio
targeted to produce hydrogen and sequester CO2 by early
2026
Q3 2024 Continuing Operations Financial Highlights
- Significantly improved margin performance, which helped meet
adjusted EBITDA and net income expectations for the quarter when
adjusted for one-time items
- Revenue of $209.9 million, compared to revenue of $239.4
million, in the third quarter of 2023 which included revenues of
$34.2 million from a B&W Renewable Service A/S (BWRS)
asset
- Operating loss of $1.5 million, which includes a $5.8 million
non-cash impairment on the recent SPIG divestiture and a $4.9
million settlement to exit a long-term loss-generating maintenance
contract, compared to operating income of $5.5 million in the third
quarter of 2023
- Net loss of $11.1 million, including a $5.8 million non-cash
impairment on the recent SPIG divestiture and $4.9 million
settlement to exit a loss-generating maintenance contract that had
10 years remaining, compared to a net loss of $12.3 million in the
third quarter of 2023
- Loss per share of $0.16, compared to a loss per share of $0.18
in the third quarter of 2023
- Adjusted EBITDA of $22.3 million, compared to adjusted EBITDA
of $20.0 million in the third quarter of 2023. Adjusted EBITDA in
the third quarter of 2023 was $12.5 million excluding the BWRS
divestiture or an increase of 78%. Adjusted EBITDA excluding
BrightLoop™ and ClimateBright™ expenses was $23.3 million in the
third quarter of 2024
Babcock & Wilcox Enterprises, Inc. ("B&W" or the
"Company") (NYSE: BW) announced results for the third quarter of
2024.
Energy Demand
"We believe that we are in a unique position to leverage the
significant increase in base-load generation demand in North
America and around the world," said Kenneth Young, B&W Chairman
and Chief Executive Officer. "Consumer demand for energy – either
from the grid or behind the meter – along with increased energy
needs from utility and large industrial clients are providing even
greater opportunities for us to deliver our broad range of
technology and considerable expertise in the areas of fossil fuels,
natural gas, synthetic fuels and renewable energy to help meet that
demand. We believe the increasing need for power and electricity
fueled by demand from AI data centers, electric vehicles and
expanding economies will be key drivers for growth across our broad
range of technologies and we are seeing our utility and industrial
clients, including in the oil and gas sector, continuing to
increase capacity utilizing our core technologies while evaluating
further power generation augmentation through biomass, hydrogen and
natural gas. We expect these tail-winds to increase in the coming
years, as the amount of front-end engineering design (FEED)
opportunities have grown. Today we have 12 to 15 active FEED
studies that represent potential projects of over $1 billion in
revenues in our pipeline. We believe that these expected industry
tailwinds provide a strong foundation for B&W to grow in 2025
and beyond as we continue to drive for higher margins and improved
cash flows."
"Overall, we continue to see strong demand for our diverse
portfolio of technologies that help drive our increased backlog and
higher implied bookings of over $800 million. As further evidence
of the opportunities for growth, we are excited to announce that we
have now received full notice to proceed on the $246 million
natural gas conversion project in Indiana," Young added.
BrightLoop and ClimateBright
"Our investments across our ClimateBright suite of
decarbonization technologies to support the world’s energy
transition are progressing well and notably we continued to move
forward on our BrightLoop project in Massillon, Ohio, with a target
of producing hydrogen by early 2026," Young said. “We are working
on several carbon capture opportunities that utilize our
SolveBright post combustion CO2 capture technology and our
oxy-combustion technology that injects pure oxygen into the
combustion process to significantly reduce CO2 emissions. We
recently announced a FEED study in Sweden that utilizes our
post-combustion technology with an existing waste-to-energy
facility. In addition to our work in support of the BrightLoop
project in Massillon, Ohio, we also are further developing our
BrightLoop projects in West Virginia, Wyoming and Louisiana and are
engaging in FEED studies for BrightLoop with various customers in
Canada and around the world.”
Asset Sales and Debt Refinancing
“During the quarter, we completed the sale of our SPIG/GMAB
business for net proceeds of $33.7 million, which improves our
balance sheet to support growth and aligns with our ongoing
strategy to sell certain non-strategic businesses. Combined, we
have raised over $116 million from divestiture of two assets in
2024. These sales reaffirm our objective to strengthen our balance
sheet,” Young continued. “We remain in dialogue related to the sale
of other non-strategic assets as previously discussed, as well as
potential refinancing options."
Increased Margin Performance
“Our third quarter results demonstrated significant margin
improvement, reflecting our strategic direction as evidenced by
strong year-over-year adjusted EBITDA and net income increases.
These results include two one-time items, a non-cash impairment on
the recent SPIG divestiture and a settlement on a maintenance
contract to avoid 10 years of potential significant future losses.
Excluding these two one-time charges, we met adjusted EBITDA and
net income expectations for the quarter. Looking ahead, we continue
to expect increasing operating momentum driven by our Thermal and
Environmental segments, as the fourth quarter is historically a
seasonally strong period for B&W’s businesses, with increased
services and project schedules from our customers," Young said.
“Our business as a whole prior to divestitures is on target to
achieve our stated goals in 2024. When adjusting the targets to
reflect the recent divestitures, our EBITDA target range is around
$91.0 million to $95.0 million, excluding BrightLoop and
ClimateBright expenses. Our global pipeline of over $9 billion in
identified project opportunities remains healthy across all
business segments, and we anticipate continued prospects for new
bookings and stronger financial performance throughout the fourth
quarter and heading into 2025.”
Q3 2024 Continuing Operations Financial Summary
Revenues in the third quarter of 2024 were $209.9 million versus
revenues of $239.4 million in the third quarter of 2023, which
includes $34.2 million in revenues from BWRS. Revenues in the third
quarter of 2024 increased by $4.6 million when compared to revenues
without BWRS in the third quarter of 2023. This increase was driven
primarily by growth in our domestic and European Environmental
business as well as Thermal segment benefits related to a large
natural gas project and increased volume in parts during the year.
Operating loss in the third quarter of 2024 was $1.5 million,
compared to operating income of $5.5 million in the third quarter
of 2023. The decrease is primarily attributable to the divestiture
of BWRS which resulted in a reduction of income from the previous
quarter of $7.4 million, as well as two one-time charges of a $5.8
million non-cash impairment related to the sale of SPIG and a $4.9
million settlement to exit a loss generating maintenance contract.
This completes our exit strategy from European O&M, which has
resulted in approximately $15.0 million in losses over the last
three years, and allows us to avoid 10 years of potentially
significant escalating losses. Loss in the third quarter of 2024
was $11.1 million, compared to a loss of $12.3 million in the third
quarter of 2023, for the same reasons noted with respect to
operating income above. Loss per common share in the third quarter
of 2024 was $0.16 compared to a loss per common share of $0.18 in
the third quarter of 2023. Adjusted EBITDA was $22.3 million, an
increase compared to $20.0 million in the third quarter of 2023,
which included $7.4 million of BWRS Adjusted EBITDA, primarily due
to the impact of SG&A reductions, product mix and project
margins. Implied bookings in the third quarter of 2024 were $142.0
million, compared to $197.9 million in the third quarter of 2023.
Ending implied backlog was $628.2 million, an increase of 22%
compared to implied backlog at the end of the third quarter of
2023. 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
$38.2 million for the third quarter of 2024, a decrease compared to
$87.1 million in the third quarter of 2023. The decrease is
primarily due to the divestiture of BWRS, which accounted for $34.2
million of revenue in the third quarter of 2023. Adjusted EBITDA in
the third quarter of 2024 was $5.0 million, a decrease compared to
$10.1 million in the third quarter of 2023, which included $7.4
million from BWRS, partially offset by favorable project closeouts
in the current quarter. Bookings in Renewable parts and services
during the third quarter of 2024 exceeded bookings in the same
period in 2023, with total bookings increasing from $32.7 million
in 2023 to $40.8 million in 2024.
Babcock & Wilcox Environmental segment revenues were
$56.6 million in the third quarter of 2024, an increase of 22%
compared to $46.4 million in the third quarter of 2023.
Approximately $7.7 million of the increase is attributable to
growth in our domestic environmental and electrostatic precipitator
business and $1.0 million of the increase is due to growth in our
European environmental business. Adjusted EBITDA in the third
quarter of 2024 was $4.7 million, which is favorable to our
internal targets, compared to $5.0 million in the third quarter of
2023, which is primarily in line with the previous year.
Babcock & Wilcox Thermal segment revenues were $119.9
million in the third quarter of 2024, which is an increase of 12%
compared to $107.0 million in the third quarter of 2023. The
revenue increase is primarily the result of a large natural gas
project which accounted for $4.2 million and an increased volume of
parts which accounted for $4.8 million. Adjusted EBITDA in the
third quarter of 2024 was $18.4 million, an increase compared to
$11.3 million in the third quarter of 2023. The revenue drivers
above resulted in an increase in Adjusted EBITDA of $4.2 million
and favorable project margins in our construction business resulted
in an increase of $2.1 million.
Liquidity and Balance Sheet
At September 30, 2024, the Company had total debt of $475.4
million and a cash, cash equivalents and restricted cash balance of
$127.9 million.
Earnings Call Information
B&W plans to host a conference call and webcast on Tuesday,
November 12, 2024 at 5 p.m. ET to discuss the Company's third
quarter 2024 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 883496. 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, also
referred to in this release as “adjusted” financial measures, 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. In
addition, the Company presents the non-GAAP financial measure of
Adjusted EBITDA excluding BrightLoop and ClimateBright. Management
believes this measure is useful to investors because of the
increasing importance of BrightLoop and ClimateBright to the future
growth of the Company. Management uses Adjusted EBITDA excluding
BrightLoop and ClimateBright to assess the Company's performance
independent of these technologies.
This release presents Adjusted Operating Income, Adjusted EBITDA
without BWRS and Revenue without BWRS as additional non-GAAP
financial measures. Management believes these measures are useful
to investors to facilitate comparisons between years by excluding
the impact from business divestitures in the current year and their
related operating results from the prior year. Management uses
these measures to preview and evaluate performance of retained
businesses.
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. Implied backlog and
implied bookings include projects awarded or under contract but not
fully released for performance.
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.
Impacts of Market Conditions
Management continues to adapt to macroeconomic conditions,
including the impacts from inflation, changing interest rates and
foreign exchange rate volatility, geopolitical conflicts (including
the ongoing conflicts in Ukraine and the Middle East) and global
shipping and supply chain disruptions that continued to have an
impact during the first nine months of 2024. In certain instances,
these situations have resulted in cost increases and delays or
disruptions that have had, and could continue to have, an adverse
impact on our ability to meet customers’ demands. We continue 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 supporting
our customers and their specific needs. The duration and scope of
these conditions cannot be predicted, and therefore, any
anticipated negative financial impact on our operating results
cannot be reasonably estimated.
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: our financial
condition and ability to continue as a going concern; the impact of
global macroeconomic conditions, including inflation and volatility
in the capital markets; risks associated with contractual pricing
in our industry; our relationships with customers, subcontractors
and other third parties; our ability to comply with our contractual
obligations; disruptions at our or manufacturing facilities or a
third-party manufacturing facility that we have engaged; the
actions or failures of our co-venturers; our ability to implement
our growth strategy, including through strategic acquisitions,
which we may not successfully consummate or integrate; our
evaluation of strategic alternatives for certain businesses and
non-strategic assets, which may not result in a successful
transaction; the risks of unexpected adjustments and cancellations
in our backlog; professional liability, product liability, warranty
and other claims; our ability to compete successfully against
current and future competitors; our ability to develop and
successfully market new products; the impacts of industry
conditions and public health crises; the cyclical nature of the
industries in which we operate; changes in the legislative and
regulatory environment in which we operate; supply chain issues,
including shortages of adequate components; failure to properly
estimate customer demand; our ability to comply with the covenants
in our debt agreements; our ability to refinance our 8.125% Notes
due 2026 and 6.50% Notes due 2026 prior to their maturity; our
ability to maintain adequate bonding and letter of credit capacity;
impairment of goodwill or other indefinite-lived intangible assets;
credit risk; disruptions in, or failures of, our information
systems; our ability to comply with privacy and information
security laws; our ability to protect our intellectual property and
use the intellectual property that we license from third parties;
risks related to our international operations, including
fluctuations in the value of foreign currencies, global tariffs,
sanctions and export controls; could harm our profitability;
volatility in the price of our common stock; B. Riley’s significant
influence over us; changes in tax rates or tax law; our ability to
use net operating loss and certain tax credits; our ability to
maintain effective internal control over financial reporting; our
ability to attract and retain skilled personnel and senior
management; labor problems, including negotiations with labor
unions and possible work stoppages; risks associated with our
retirement benefit plans; natural disasters or other events beyond
our control, such as war, armed conflicts or terrorist attacks; 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 our most recent annual report on
Form 10-K.
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,
2024
2023
2024
2023
Revenues
$
209.9
$
239.4
$
651.1
$
772.2
Costs and expenses:
Cost of operations
160.0
186.0
498.3
603.7
Selling, general and administrative
expenses
43.1
45.7
135.1
143.4
Restructuring activities
0.5
1.3
2.8
2.7
Research and development costs
1.4
0.9
3.7
3.1
Gain on sale of business
0.1
—
(40.1
)
—
Impairment on long-lived assets
5.8
—
5.8
—
Loss (gain) on asset disposals, net
0.4
—
0.4
—
Total costs and expenses
211.3
233.9
606.0
753.0
Operating (loss) income
(1.5
)
5.5
45.1
19.2
Other income (expense):
Interest expense
(10.6
)
(13.4
)
(36.0
)
(37.2
)
Interest income
0.3
0.3
0.9
0.9
Loss on debt extinguishment
(0.7
)
—
(6.8
)
—
Benefit plans, net
0.1
(0.1
)
0.3
(0.3
)
Foreign exchange
2.3
(4.9
)
1.4
(4.2
)
Other expense, net
(0.8
)
—
(0.4
)
(0.7
)
Total other expense, net
(9.4
)
(18.1
)
(40.6
)
(41.6
)
(Loss) income before income tax
expense
(10.9
)
(12.6
)
4.5
(22.3
)
Income tax expense (benefit)
0.2
(0.3
)
6.1
2.0
Loss from continuing operations
(11.1
)
(12.3
)
(1.6
)
(24.4
)
Income (loss) from discontinued
operations, net of tax
5.7
(104.5
)
4.9
(109.9
)
Net (loss) income
(5.3
)
(116.8
)
3.2
(134.2
)
Net income attributable to non-controlling
interest
—
(0.1
)
—
(0.1
)
(0.2
)
Net (loss) income attributable to
stockholders
(5.3
)
(116.9
)
3.2
(134.5
)
Less: Dividend on Series A preferred
stock
3.7
3.7
11.1
11.1
Net loss attributable to stockholders
of common stock
$
(9.0
)
$
(120.6
)
$
(8.0
)
$
(145.6
)
Basic and diluted loss per share:
Continuing operations
$
(0.16
)
$
(0.18
)
$
(0.14
)
$
(0.40
)
Discontinued operations
0.06
(1.17
)
0.05
(1.24
)
Basic and diluted loss per share
$
(0.10
)
$
(1.35
)
$
(0.09
)
$
(1.64
)
Shares used in the computation of earnings
(loss) per share:
Basic and diluted
92.3
89.1
90.9
88.9
(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, 2024
December 31, 2023
Cash and cash equivalents
$
30.6
$
65.3
Current restricted cash
63.4
5.7
Accounts receivable – trade, net
143.0
144.0
Accounts receivable – other
26.7
36.2
Contracts in progress
101.3
90.1
Inventories, net
116.6
113.9
Other current assets
21.8
23.9
Current assets held for sale
26.9
18.5
Total current assets
530.2
497.6
Net property, plant and equipment, and
finance leases
73.6
78.4
Goodwill
84.6
102.0
Intangible assets, net
23.9
45.6
Right-of-use assets
29.7
28.2
Long-term restricted cash
33.9
0.3
Deferred tax assets
6.3
2.1
Other assets
22.4
21.6
Total assets
$
804.6
$
775.7
Accounts payable
$
122.4
$
127.5
Accrued employee benefits
11.6
10.8
Advance billings on contracts
58.8
81.1
Accrued warranty expense
6.8
7.6
Financing lease liabilities
1.5
1.4
Operating lease liabilities
3.8
3.9
Other accrued liabilities
53.1
68.1
Loans payable
3.0
6.2
Current liabilities held for sale
36.9
43.6
Total current liabilities
297.9
350.2
Senior notes
339.7
337.9
Loans payable, net of current portion
132.8
35.4
Pension and other postretirement benefit
liabilities
163.8
172.9
Finance lease liabilities, net of current
portion
25.8
26.2
Operating lease liabilities, net of
current portion
27.1
25.4
Deferred tax liability
10.7
13.0
Other noncurrent liabilities
10.0
15.1
Total liabilities
1,007.8
976.0
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 September 30, 2024 and December 31, 2023
0.1
0.1
Common stock, par value $0.01 per share,
authorized shares of 500,000; outstanding shares of 92,382 and
89,449 at September 30, 2024 and December 31, 2023,
respectively
5.2
5.1
Capital in excess of par value
1,552.0
1,546.3
Treasury stock at cost, 2,339 and 2,139
shares at September 30, 2024 and December 31, 2023,
respectively
(115.4
)
(115.2
)
Accumulated deficit
(1,578.9
)
(1,570.9
)
Accumulated other comprehensive loss
(66.6
)
(66.4
)
Stockholders' deficit attributable to
shareholders
(203.7
)
(201.0
)
Non-controlling interest
0.6
0.6
Total stockholders' deficit
(203.1
)
(200.4
)
Total liabilities and stockholders'
deficit
$
804.6
$
775.7
(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,
2024
2023
Cash flows from operating activities:
Net loss from continuing operations
$
(1.6
)
$
(24.4
)
Net income (loss) from discontinued
operations
4.9
(109.9
)
Net income (loss)
3.2
(134.2
)
Adjustments to reconcile net income (loss)
to net cash used in operating activities:
Depreciation and amortization of
long-lived assets
13.7
16.5
Goodwill impairment
—
56.6
Amortization of deferred financing costs
and debt discount
3.7
3.7
Amortization of guaranty fee
2.1
0.5
Non-cash operating lease expense
5.2
4.4
Loss on debt extinguishment
6.8
—
Gain on sale of business
(40.1
)
—
Impairment on long-lived assets
5.8
—
Loss on asset disposals
0.4
0.2
Benefit from deferred income taxes
(6.5
)
(5.6
)
Prior service cost amortization for
pension and postretirement plans
0.7
0.7
Stock-based compensation
3.8
7.2
Foreign exchange
(1.4
)
4.2
Changes in operating assets and
liabilities:
Accounts receivable - trade, net and
other
(17.7
)
4.3
Contracts in progress
(30.4
)
2.5
Advance billings on contracts
(20.7
)
(29.7
)
Inventories, net
(3.4
)
(10.5
)
Income taxes
2.7
(0.2
)
Accounts payable
5.1
28.1
Accrued and other current liabilities
(5.8
)
(4.6
)
Accrued contract loss
(6.0
)
13.3
Pension liabilities, accrued
postretirement benefits and employee benefits
(7.6
)
(2.1
)
Other, net
(9.9
)
(5.6
)
Net cash used in operating
activities
(96.3
)
(50.5
)
Cash flows from investing
activities:
Purchase of property, plant and
equipment
(10.1
)
(10.5
)
Proceeds from sale of business and assets,
net
87.6
—
Purchases of available-for-sale
securities
(4.5
)
(5.3
)
Sales and maturities of available-for-sale
securities
5.0
7.4
Other, net
—
(0.1
)
Net cash provided by (used in)
investing activities
78.0
(8.6
)
Cash flows from financing
activities:
Borrowings on loan payable
184.8
97.1
Repayments on loan payable
(91.1
)
(72.5
)
Finance lease payments
(1.0
)
—
Payment of holdback funds from
acquisition
(3.0
)
(2.8
)
Payment of preferred stock dividends
(14.9
)
(7.4
)
Shares of common stock returned to
treasury stock
(0.3
)
(1.4
)
Issuance of common stock, net
2.0
—
Debt issuance costs
(5.6
)
(0.2
)
Other, net
(0.2
)
(0.9
)
Net cash provided by financing
activities
70.8
11.9
Effects of exchange rate changes on
cash
4.0
(0.7
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
56.6
(47.9
)
Cash, cash equivalents and restricted cash
at beginning of period
71.4
113.0
Cash, cash equivalents and restricted cash
at end of period
$
127.9
$
65.1
(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,
2024
2023
2024
2023
REVENUES:
Babcock & Wilcox Renewable
$
38.2
$
87.1
$
151.4
$
256.4
Babcock & Wilcox Environmental
56.6
46.4
161.2
134.6
Babcock & Wilcox Thermal
119.9
107.0
350.3
384.2
Eliminations
(4.8
)
(1.1
)
(11.8
)
(3.0
)
$
209.9
$
239.4
$
651.1
$
772.2
ADJUSTED EBITDA:
Babcock & Wilcox Renewable
$
5.0
$
10.1
$
14.3
$
19.2
Babcock & Wilcox Environmental
4.7
5.0
14.8
10.3
Babcock & Wilcox Thermal
18.4
11.3
45.1
49.4
Corporate
(5.7
)
(5.6
)
(15.6
)
(16.2
)
Research and development costs
(0.2
)
(0.9
)
(0.5
)
(3.1
)
$
22.3
$
20.0
$
58.1
$
59.6
AMORTIZATION EXPENSE:
Babcock & Wilcox Renewable
$
0.1
$
0.5
$
1.0
$
1.6
Babcock & Wilcox Environmental
0.8
0.8
2.4
2.3
Babcock & Wilcox Thermal
1.1
1.1
3.2
3.3
$
2.0
$
2.4
$
6.7
$
7.2
DEPRECIATION EXPENSE:
Babcock & Wilcox Renewable
$
0.3
$
0.6
$
1.2
$
2.1
Babcock & Wilcox Environmental
0.6
0.2
1.4
0.6
Babcock & Wilcox Thermal
1.4
1.4
3.9
5.0
$
2.2
$
2.2
$
6.5
$
7.8
BOOKINGS AND BACKLOG
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
BOOKINGS:
Babcock & Wilcox Renewable
$
41
$
33
$
108
$
180
Babcock & Wilcox Environmental
17
54
118
154
Babcock & Wilcox Thermal
103
105
321
299
Other/Eliminations
0
6
(3
)
(5
)
$
161
$
198
$
544
$
628
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
IMPLIED BOOKINGS(2):
Babcock & Wilcox Renewable
$
41
$
33
$
108
$
180
Babcock & Wilcox Environmental
33
54
154
162
Babcock & Wilcox Thermal
68
105
552
299
Other/Eliminations
—
6
(3
)
(5
)
$
142
$
198
$
811
$
636
BACKLOG
IMPLIED BACKLOG(3)
As of September 30,
As of September 30,
2024
2023
2024
2023
Babcock & Wilcox Renewable
$
96
$
133
$
96
$
133
Babcock & Wilcox Environmental
66
173
101
181
Babcock & Wilcox Thermal
185
196
416
196
Other/Eliminations
15
5
15
5
$
362
$
507
$
628
$
515
(1) Figures may not be clerically accurate
due to rounding.
(2) Implied bookings are bookings plus
projects that are awarded but not contracted or are under contract
but not fully released for performance.
(3) Implied backlog is backlog plus
projects that are awarded or under contract but not fully released
for performance.
Exhibit 5
Babcock & Wilcox Enterprises,
Inc.
Reconciliation of Adjusted
EBITDA(3)
(In millions)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Income (loss) from continuing
operations
$
(11.1
)
$
(12.3
)
$
(1.6
)
$
(24.4
)
Interest expense
10.3
13.4
35.1
37.1
Income tax expense
0.2
(0.3
)
6.1
2.0
Depreciation & amortization
4.2
4.6
13.2
15.0
EBITDA
3.6
5.4
52.8
29.7
Gain on sale of business
—
—
(40.2
)
—
Benefit plans, net
(0.1
)
0.1
(0.3
)
0.3
Gain on asset sales, net
0.4
—
0.4
—
Impairment on long-lived assets
5.8
—
5.8
—
Stock compensation
0.9
0.4
3.6
5.9
Restructuring activities and business
services transition costs
0.5
1.3
2.8
3.3
Settlement and related legal costs
(0.1
)
—
3.2
(2.5
)
Loss on debt extinguishment
0.7
—
6.8
—
Acquisition pursuit and related costs
0.2
0.3
0.3
0.6
Product development (1)
2.1
0.9
5.1
3.3
Foreign exchange
(2.3
)
4.9
(1.4
)
4.2
Financial advisory services
1.1
—
1.3
—
Contract disposal (2)
6.1
4.3
10.1
8.4
Letter of credit fees
1.3
2.0
5.9
5.6
Other - net
2.2
0.4
1.7
0.8
Adjusted EBITDA
$
22.3
$
20.0
$
58.1
$
59.6
Product development (1)
(1.7
)
(0.5
)
(3.9
)
(2.6
)
BrightLoopTM and ClimateBrightTM
expenses
2.7
1.7
6.9
5.9
Adjusted EBITDA excluding BrightLoopTM and
ClimateBrightTM expenses
$
23.3
$
21.2
$
61.1
$
62.9
(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.
Exhibit 6 Babcock & Wilcox Enterprises, Inc.
Other Non-GAAP Reconciliations(1)
(in millions)
Three months ended September
30, 2023
Revenue
$
239.4
Less:
BWRS Revenue
34.2
Revenue, less BWRS
$
205.2
(in millions)
Three months ended September
30, 2023
Adjusted EBITDA
$
20.0
Less:
BWRS Adjusted EBITDA
7.4
Adjusted EBITDA, less BWRS
$
12.6
(1) Figures may not be clerically accurate
due to rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241112543518/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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