Babcock & Wilcox Enterprises Reports Fourth Quarter and Full Year 2023 Results
- 18% increase in revenues from Continued Operations year over year
- Full Year 2024 Adjusted EBITDA target of $100.0 million to $110.0 million
- Completed new $150 million Senior Secured Credit Facility
- Awarded $16.0 million grant from the Wyoming Energy Authority
- Expanded pipeline to over $9.0 billion in global project opportunities
- Annualized cost savings of over $19.0 million achieved
- Q4 2023 Continuing Operations Financial Highlights
- Net loss of $78.6 million in full year 2023
- Decrease in backlog at the end of 2023 compared to 2022
- 4% decline in Q4 2023 revenues compared to Q4 2022
Insights
An 18% year-over-year revenue increase indicates a robust expansion across all business segments, which is a positive sign for investors. The reaffirmation of the Adjusted EBITDA target suggests management's confidence in the company's profitability, despite excluding expenses from new initiatives like BrightLoop™ and ClimateBright™. The completion of a new $150 million Senior Secured Credit Facility and a stable BB+ credit rating could improve the company's financial flexibility. However, a net loss, including significant non-cash pension adjustments and a decline in Q4 revenues due to the completion of lower-margin renewable projects, raise concerns about the sustainability of profit margins and operational efficiency.
The $16.0 million grant for clean hydrogen development is a strategic step towards diversifying and future-proofing the company's energy portfolio. However, the actual impact on the stock will depend on the successful commercialization of these technologies. The expanded pipeline of over $9.0 billion in identified global project opportunities reflects potential for future growth, but the conversion of these opportunities into actual revenue will be critical for investor confidence.
Overall, the company's strategic realignment and cost-saving initiatives are aimed at improving financial performance, but the market will be watching closely for tangible results in terms of revenue growth, margin improvement and a reduction in net losses. The focus on high-margin and high-quality international projects could improve profitability, but it also introduces geopolitical and execution risks.
The global demand for environmentally friendly technologies, evidenced by the 31% increase in the Environmental segment, aligns with current market trends towards sustainability. The company's engagement in carbon capture and hydrogen generation technologies positions it well in the growing clean energy market. However, the 4% decline in Q4 revenues and a 3% decrease in ending backlog may signal a need to closely monitor market demand and the competitive landscape in the renewable sector.
Strategic shifts away from lower-margin new build projects reflect an adaptation to market conditions, potentially leading to a more sustainable business model. The mention of new opportunities in waste-to-energy projects in the U.S. and Europe indicates an expansion strategy that could capture new market segments and diversify revenue streams.
The company's focus on deleveraging and liquidity enhancement through strategic alternatives for non-strategic assets is a prudent approach in current market conditions. Yet, the ability to execute these strategies without disrupting ongoing operations will be crucial for maintaining stakeholder confidence.
The awarded $16.0 million grant from the Wyoming Energy Authority signifies governmental support for innovative clean energy solutions, which is a strong endorsement for the company's BrightLoop technology. This investment into clean hydrogen generation with CO2 capture is a strategic move, especially considering the global push towards decarbonization and the potential size of the hydrogen market.
The company's strategic business realignment towards higher-margin opportunities, particularly in the Thermal and Environmental segments, reflects an understanding of the energy sector's evolving dynamics. The continued development of the BrightLoop and ClimateBright technologies, along with the pursuit of utility-scale carbon capture projects, shows a commitment to staying at the forefront of energy innovation.
However, the move away from high interest, low margin new build projects to reduce overhead and interest costs will require careful management to ensure the company does not miss out on potential high-growth areas within the renewable sector. The energy sector's volatility and regulatory changes are additional factors that could impact the company's future performance and should be monitored closely.
-
Revenues from Continued Operations increased
18% Year over Year, led by double-digit revenue growth across all business segments -
Reiterates Full Year 2024 Adjusted EBITDA target of
$100.0 million $110.0 million -
Completed new
$150 million -
Awarded
$16.0 million -
Expanded pipeline to over
$9.0 billion $1.5 billion -
Achieved annualized cost savings of over
$19.0 million $30 million
Q4 2023 Continuing Operations Financial Highlights
– Revenues of
– Net loss of
– Loss per share of
– Adjusted EBITDA of
– Adjusted EBITDA, excluding BrightLoop and ClimateBright expenses, of
– Bookings in the fourth quarter were
Full Year 2023 Continuing Operations Summary:
– Revenues of
– Net loss of
– Loss per share of
– Adjusted EBITDA of
– Adjusted EBITDA, excluding BrightLoop and ClimateBright expenses, of
– Bookings of
– Ending backlog of
"For 2023, revenues across all segments achieved double-digit growth on a year-over-year basis, driven by increased activity and expansion into our key end-markets, particularly in our Environmental segment, which saw a
“Our backlog inclusive of planned announcements is in line with our overall expectations as we enter 2024. Our pipeline is increasing in all segments including BrightLoop and ClimateBright. We are actively producing several FEED studies that we believe will translate into potential projects in 2024 for utility scale carbon capture technologies. We are advancing the development of our BrightLoop projects in
“Looking forward, we anticipate 2024 to be a strong year for Babcock & Wilcox in new bookings and stronger financial performance across all of our segments. We believe Thermal and Environmental have the highest growth potential for 2024, and we continue to execute our renewable energy strategy targeting more selective opportunities. We continue the developmental efforts around our decarbonization and hydrogen generation platform and focus on the various activities required to deploy our BrightLoop technology at commercial scale,” Young continued. “Our recently awarded
Q4 2023 Continuing Operations Financial Summary
Revenues in the fourth quarter of 2023 were
Babcock & Wilcox Renewable segment revenues were
Babcock & Wilcox Environmental segment revenues were
Babcock & Wilcox Thermal segment revenues were
Full Year 2023 Continuing Operations Financial Summary
Consolidated revenues in 2023 were
Babcock & Wilcox Renewable segment revenues were
Babcock & Wilcox Environmental segment revenues were
Babcock & Wilcox Thermal segment revenues were
Liquidity and Balance Sheet
At December 31, 2023, the Company had total debt of
Reducing Cost of Debt
Subsequent to December 31, 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
Impacts of Market Conditions
Management continues to adapt to macroeconomic conditions, including the impacts from inflation, higher interest rates and foreign exchange rate volatility, geopolitical conflicts (including the ongoing conflicts in
Earnings Call Information
B&W plans to host a conference call and webcast on Thursday, March 15, 2024 at 5 p.m. ET to discuss the Company’s fourth quarter and full year 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
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. In addition to Adjusted EBITDA, in the fourth quarter of 2023, the Company introduced the non-GAAP financial measure of Adjusted EBITDA excluding BrightLoopTM and ClimateBrightTM. 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 EBITDA excluding BrightLoop and ClimateBright to assess the Company’s performance independent of these technologies. 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. This release presents Adjusted EBITDA, which are non-GAAP financial measures. 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 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.
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, 2023. 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.; 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, Fossil Power Systems, Inc., Optimus Industries, LLC 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
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
Exhibit 1 Babcock & Wilcox Enterprises, Inc. Condensed Consolidated Statements of Operations(1) (In millions, except per share amounts) |
||||||||||||
|
Three months ended December 31, |
Year ended December 31, |
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenues |
$ |
227.2 |
|
$ |
236.4 |
|
$ |
999.4 |
|
$ |
847.9 |
|
Costs and expenses: |
|
|
|
|
||||||||
Cost of operations |
|
171.6 |
|
|
182.8 |
|
|
775.3 |
|
|
661.0 |
|
Selling, general and administrative expenses |
|
45.8 |
|
|
49.6 |
|
|
190.5 |
|
|
180.5 |
|
Advisory fees and settlement costs |
|
2.2 |
|
|
(1.7 |
) |
|
0.9 |
|
|
8.5 |
|
Restructuring activities |
|
1.5 |
|
|
0.2 |
|
|
4.2 |
|
|
0.6 |
|
Research and development costs |
|
5.3 |
|
|
1.0 |
|
|
8.4 |
|
|
3.8 |
|
Loss (gain) on asset disposals, net |
|
0.1 |
|
|
(1.7 |
) |
|
0.1 |
|
|
(8.8 |
) |
Total costs and expenses |
|
226.5 |
|
|
230.1 |
|
|
979.5 |
|
|
845.6 |
|
Operating income |
|
0.7 |
|
|
6.3 |
|
|
19.9 |
|
|
2.3 |
|
Other (expense) income: |
|
|
|
|
||||||||
Interest expense |
|
(12.6 |
) |
|
(12.2 |
) |
|
(49.9 |
) |
|
(44.9 |
) |
Interest income |
|
0.3 |
|
|
0.5 |
|
|
1.2 |
|
|
0.6 |
|
Benefit plans, net |
|
(37.2 |
) |
|
15.2 |
|
|
(37.5 |
) |
|
37.5 |
|
Foreign exchange |
|
1.7 |
|
|
2.6 |
|
|
(2.5 |
) |
|
(0.6 |
) |
Other expense - net |
|
(0.7 |
) |
|
(3.8 |
) |
|
(1.3 |
) |
|
(3.9 |
) |
Total other (expense) income |
|
(48.5 |
) |
|
2.4 |
|
|
(90.1 |
) |
|
(11.2 |
) |
Loss (income) before income tax expense |
|
(47.8 |
) |
|
8.8 |
|
|
(70.2 |
) |
|
(8.9 |
) |
Income tax expense |
|
6.5 |
|
|
6.3 |
|
|
8.5 |
|
|
11.1 |
|
Net (loss) income from continuing operations |
|
(54.3 |
) |
|
2.5 |
|
|
(78.6 |
) |
|
(20.0 |
) |
(Loss) income from discontinued operations, net of tax |
|
(8.5 |
) |
|
3.2 |
|
|
(118.3 |
) |
|
(6.6 |
) |
Net (loss) income |
|
(62.7 |
) |
|
5.7 |
|
|
(197.0 |
) |
|
(26.6 |
) |
Net (loss) income attributable to non-controlling interest |
|
— |
|
|
0.1 |
|
|
(0.2 |
) |
|
3.7 |
|
Net (loss) income attributable to stockholders |
|
(62.7 |
) |
|
5.7 |
|
|
(197.2 |
) |
|
(22.9 |
) |
Less: Dividend on Series A preferred stock |
|
3.7 |
|
|
3.7 |
|
|
14.9 |
|
|
14.9 |
|
Net (loss) income attributable to stockholders of common stock |
$ |
(66.5 |
) |
$ |
2.0 |
|
$ |
(212.1 |
) |
$ |
(37.7 |
) |
|
|
|
|
|
||||||||
Basic (loss) income per share |
|
|
|
|
||||||||
Continuing operations |
$ |
(0.65 |
) |
$ |
(0.02 |
) |
$ |
(1.05 |
) |
$ |
(0.35 |
) |
Discontinued operations |
|
(0.09 |
) |
|
0.04 |
|
|
(1.33 |
) |
|
(0.08 |
) |
|
$ |
(0.74 |
) |
$ |
0.02 |
|
$ |
(2.38 |
) |
$ |
(0.43 |
) |
Diluted (loss) income per share |
|
|
|
|
||||||||
Continuing operations |
$ |
(0.65 |
) |
$ |
(0.02 |
) |
$ |
(1.05 |
) |
$ |
(0.35 |
) |
Discontinued operations |
$ |
(0.09 |
) |
$ |
0.04 |
|
$ |
(1.33 |
) |
$ |
(0.08 |
) |
|
$ |
(0.74 |
) |
$ |
0.02 |
|
$ |
(2.38 |
) |
$ |
(0.43 |
) |
Shares used in the computation of loss per share: |
|
|
|
|||||||||
Basic |
|
89.4 |
|
|
88.3 |
|
|
89.0 |
|
|
88.3 |
|
Diluted |
|
89.4 |
|
|
88.6 |
|
|
89.0 |
|
|
88.3 |
|
(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) |
December 31, 2023 |
December 31, 2022 |
||||
Cash and cash equivalents |
$ |
65.3 |
|
$ |
76.2 |
|
Current restricted cash and cash equivalents |
|
5.7 |
|
|
15.3 |
|
Accounts receivable – trade, net |
|
144.0 |
|
|
158.4 |
|
Accounts receivable – other |
|
36.2 |
|
|
38.5 |
|
Contracts in progress |
|
90.1 |
|
|
118.2 |
|
Inventories, net |
|
113.9 |
|
|
102.6 |
|
Other current assets |
|
23.9 |
|
|
27.0 |
|
Current assets held for sale |
|
18.5 |
|
|
21.4 |
|
Total current assets |
|
497.6 |
|
|
557.6 |
|
Net property, plant and equipment, and finance lease |
|
78.4 |
|
|
84.9 |
|
Goodwill |
|
102.0 |
|
|
100.4 |
|
Intangible assets, net |
|
45.6 |
|
|
51.6 |
|
Right-of-use assets |
|
28.2 |
|
|
28.4 |
|
Long-term restricted cash |
|
0.3 |
|
|
21.4 |
|
Deferred tax assets |
|
2.1 |
|
|
2.0 |
|
Other assets |
|
21.6 |
|
|
27.4 |
|
Noncurrent assets held for sale |
|
— |
|
|
68.0 |
|
Total assets |
$ |
775.7 |
|
$ |
941.7 |
|
|
||||||
Accounts payable |
$ |
127.5 |
|
$ |
131.2 |
|
Accrued employee benefits |
|
10.8 |
|
|
12.5 |
|
Advance billings on contracts |
|
81.1 |
|
|
130.9 |
|
Accrued warranty expense |
|
7.6 |
|
|
9.6 |
|
Financing lease liabilities |
|
1.4 |
|
|
1.2 |
|
Operating lease liabilities |
|
3.9 |
|
|
3.5 |
|
Other accrued liabilities |
|
68.1 |
|
|
54.0 |
|
Loans payable |
|
6.2 |
|
|
3.8 |
|
Current liabilities held for sale |
|
43.6 |
|
|
24.8 |
|
Total current liabilities |
|
350.2 |
|
|
371.5 |
|
Senior notes |
|
337.9 |
|
|
335.5 |
|
Loans payable, net of current portion |
|
35.4 |
|
|
13.2 |
|
Pension and other postretirement benefit liabilities |
|
172.9 |
|
|
136.2 |
|
Finance lease liabilities, net of current portion |
|
26.2 |
|
|
27.5 |
|
Operating lease liabilities, net of current portion |
|
25.4 |
|
|
25.6 |
|
Deferred tax liability |
|
13.0 |
|
|
12.1 |
|
Other non-current liabilities |
|
15.1 |
|
|
16.6 |
|
Non-current liabilities held for sale |
|
— |
|
|
5.7 |
|
Total liabilities |
|
976.0 |
|
|
943.8 |
|
Stockholders' deficit: |
|
|
||||
Preferred stock, par value 0.01 per share, authorized shares of 20,000; issued and outstanding shares of 7,669 both periods ended December 31, 2023 and December 30, 2022. |
|
0.1 |
|
|
0.1 |
|
Common stock, par value 0.01 per share, authorized shares of 500,000; issued and outstanding shares of 89,449 and 88,700 at December 31, 2023 and December 31, 2022, respectively |
|
5.1 |
|
|
5.1 |
|
Capital in excess of par value |
|
1,546.3 |
|
|
1,537.6 |
|
Treasury stock at cost, 2,139 and 1,868 shares at December 31, 2023 and December 31, 2022, respectively |
|
(115.2 |
) |
|
(113.8 |
) |
Accumulated deficit |
|
(1,570.9 |
) |
|
(1,358.9 |
) |
Accumulated other comprehensive loss |
|
(66.4 |
) |
|
(72.8 |
) |
Stockholders' deficit attributable to shareholders |
|
(201.0 |
) |
|
(2.6 |
) |
Non-controlling interest |
|
0.6 |
|
|
0.5 |
|
Total stockholders' deficit |
|
(200.4 |
) |
|
(2.1 |
) |
Total liabilities and stockholders' deficit |
$ |
775.7 |
|
$ |
941.7 |
|
(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) |
Year ended December 31, |
|||||
|
|
2023 |
|
|
2022 |
|
Cash flows from operating activities: |
|
|
||||
Net loss from continuing operations |
$ |
(78.6 |
) |
$ |
(20.0 |
) |
Net loss from discontinued operations |
|
(118.3 |
) |
|
(6.6 |
) |
Net loss |
|
(197.0 |
) |
|
(26.6 |
) |
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 |
|
21.0 |
|
|
24.0 |
|
Amortization of deferred financing costs and debt discount |
|
5.7 |
|
|
5.2 |
|
Amortization of guaranty fee |
|
0.9 |
|
|
0.9 |
|
Non-cash operating lease expense |
|
6.8 |
|
|
7.3 |
|
Loss (gain) on asset disposals |
|
0.2 |
|
|
(8.8 |
) |
(Benefit from) provision for deferred income taxes, including valuation allowances |
|
(1.5 |
) |
|
5.9 |
|
Prior service cost amortization for pension and postretirement plans |
|
38.9 |
|
|
(6.8 |
) |
Stock-based compensation |
|
8.7 |
|
|
10.0 |
|
Foreign exchange |
|
2.5 |
|
|
0.6 |
|
Changes in operating assets and liabilities: |
|
|
||||
Accounts receivable - trade, net and other |
|
31.2 |
|
|
(28.2 |
) |
Contracts in progress |
|
40.2 |
|
|
(54.1 |
) |
Advance billings on contracts |
|
(47.3 |
) |
|
62.3 |
|
Inventories, net |
|
(8.1 |
) |
|
(19.0 |
) |
Income taxes |
|
(6.3 |
) |
|
(0.2 |
) |
Accounts payable |
|
12.9 |
|
|
52.7 |
|
Accrued and other current liabilities |
|
(2.6 |
) |
|
(18.9 |
) |
Accrued contract loss |
|
0.8 |
|
|
6.4 |
|
Pension liabilities, accrued postretirement benefits and employee benefits |
|
(5.0 |
) |
|
(36.5 |
) |
Other, net |
|
(1.0 |
) |
|
(4.2 |
) |
Net cash used in operating activities |
|
(42.3 |
) |
|
(30.6 |
) |
|
|
|
||||
Cash flows from investing activities: |
|
|
||||
Purchase of property, plant and equipment |
|
(9.8 |
) |
|
(13.2 |
) |
Acquisition of business, net of cash acquired |
|
— |
|
|
(64.9 |
) |
Proceeds from sale of business and assets, net |
|
— |
|
|
5.5 |
|
Purchases of available-for-sale securities |
|
(6.1 |
) |
|
(6.4 |
) |
Sales and maturities of available-for-sale securities |
|
8.1 |
|
|
9.8 |
|
Other, net |
|
(0.1 |
) |
|
0.5 |
|
Net cash used in investing activities |
|
(7.9 |
) |
|
(68.8 |
) |
Cash flows from financing activities: |
|
|
||||
Issuance of senior notes |
|
— |
|
|
6.8 |
|
Borrowings on loan payable |
|
252.5 |
|
|
7.2 |
|
Repayments on loan payable |
|
(226.6 |
) |
|
(16.9 |
) |
Payment of holdback funds from acquisition |
|
(2.8 |
) |
|
— |
|
Proceeds from sale-leaseback financing transactions |
|
— |
|
|
13.3 |
|
Finance lease payments |
|
(1.2 |
) |
|
(2.4 |
) |
Payment of preferred stock dividends |
|
(11.1 |
) |
|
(14.9 |
) |
Shares of common stock returned to treasury stock |
|
(1.4 |
) |
|
(2.8 |
) |
Debt issuance costs |
|
(0.7 |
) |
|
(1.4 |
) |
Other, net |
|
(0.2 |
) |
|
— |
|
Net cash provided by (used in) financing activities |
|
8.6 |
|
|
(11.2 |
) |
Effects of exchange rate changes on cash |
|
(0.4 |
) |
|
(2.7 |
) |
Net decrease in cash, cash equivalents and restricted cash |
|
(42.1 |
) |
|
(113.3 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
113.5 |
|
|
226.7 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
71.4 |
|
$ |
113.5 |
|
(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 December 31, |
Year ended December 31, |
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
REVENUES: |
|
|
|
|
||||||||
Babcock & Wilcox Renewable |
$ |
62.2 |
|
$ |
92.2 |
|
$ |
318.6 |
|
$ |
288.7 |
|
Babcock & Wilcox Environmental |
|
68.4 |
|
|
43.2 |
|
|
202.9 |
|
|
154.4 |
|
Babcock & Wilcox Thermal |
|
115.0 |
|
|
105.2 |
|
|
499.2 |
|
|
415.1 |
|
Other |
|
(18.4 |
) |
|
(4.3 |
) |
|
(21.4 |
) |
|
(10.3 |
) |
|
$ |
227.2 |
|
$ |
236.4 |
|
$ |
999.4 |
|
$ |
847.9 |
|
|
|
|
|
|
||||||||
ADJUSTED EBITDA: |
|
|
|
|
||||||||
Babcock & Wilcox Renewable |
$ |
3.4 |
|
$ |
5.6 |
|
$ |
22.6 |
|
$ |
21.2 |
|
Babcock & Wilcox Environmental |
|
5.0 |
|
|
4.7 |
|
|
15.3 |
|
|
9.8 |
|
Babcock & Wilcox Thermal |
|
17.2 |
|
|
15.0 |
|
|
66.7 |
|
|
56.3 |
|
Corporate |
|
(5.2 |
) |
|
(3.5 |
) |
|
(21.4 |
) |
|
(16.5 |
) |
Research and development costs |
|
(0.9 |
) |
|
(0.8 |
) |
|
(4.0 |
) |
|
(3.3 |
) |
|
$ |
19.5 |
|
$ |
21.0 |
|
$ |
79.1 |
|
$ |
67.5 |
|
|
|
|
|
|
||||||||
AMORTIZATION EXPENSE: |
|
|
|
|
||||||||
Babcock & Wilcox Renewable |
$ |
0.5 |
|
$ |
0.8 |
|
$ |
2.1 |
|
$ |
2.5 |
|
Babcock & Wilcox Environmental |
|
0.8 |
|
|
0.7 |
|
|
3.2 |
|
|
3.1 |
|
Babcock & Wilcox Thermal |
|
1.1 |
|
|
1.8 |
|
|
4.4 |
|
|
5.4 |
|
|
$ |
2.4 |
|
$ |
3.3 |
|
$ |
9.7 |
|
$ |
11.0 |
|
|
|
|
|
|
||||||||
DEPRECIATION EXPENSE: |
|
|
|
|
||||||||
Babcock & Wilcox Renewable |
$ |
0.6 |
|
$ |
1.6 |
|
$ |
2.7 |
|
$ |
2.9 |
|
Babcock & Wilcox Environmental |
|
0.2 |
|
|
0.2 |
|
|
0.8 |
|
|
0.8 |
|
Babcock & Wilcox Thermal |
|
1.7 |
|
|
2.0 |
|
|
6.8 |
|
|
6.9 |
|
|
$ |
2.6 |
|
$ |
3.7 |
|
$ |
10.3 |
|
$ |
10.6 |
|
|
|
|
|
|
||||||||
|
As of December 31, |
|
|
|||||||||
BACKLOG: |
|
2023 |
|
|
2022 |
|
|
|
||||
Babcock & Wilcox Renewable |
$ |
134 |
|
$ |
129 |
|
|
|
||||
Babcock & Wilcox Environmental |
|
179 |
|
|
148 |
|
|
|
||||
Babcock & Wilcox Thermal |
|
211 |
|
|
265 |
|
|
|
||||
Other/Eliminations |
|
7 |
|
|
7 |
|
|
|
||||
|
$ |
531 |
|
$ |
549 |
|
|
|
||||
(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 December 31, |
Year ended December 31, |
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net (loss) income from continuing operations |
$ |
(54.3 |
) |
$ |
2.5 |
|
$ |
(78.6 |
) |
$ |
(20.0 |
) |
Interest expense |
|
12.3 |
|
|
10.6 |
|
|
48.7 |
|
|
44.2 |
|
Income tax expense |
|
6.5 |
|
|
6.3 |
|
|
8.5 |
|
|
11.1 |
|
Depreciation & amortization |
|
5.0 |
|
|
7.1 |
|
|
20.0 |
|
|
21.6 |
|
EBITDA |
|
(30.5 |
) |
|
26.6 |
|
|
(1.5 |
) |
|
56.9 |
|
|
|
|
|
|
||||||||
Benefit plans, net |
|
37.2 |
|
|
(15.2 |
) |
|
37.5 |
|
|
(37.5 |
) |
Loss (gain) on sales, net |
|
0.1 |
|
|
(2.4 |
) |
|
0.1 |
|
|
(2.5 |
) |
Stock compensation |
|
1.2 |
|
|
3.4 |
|
|
7.1 |
|
|
8.7 |
|
Restructuring activities and business services transition costs |
|
2.4 |
|
|
2.3 |
|
|
5.7 |
|
|
8.5 |
|
Settlement and related legal (recoveries) costs |
|
1.5 |
|
|
3.5 |
|
|
(1.5 |
) |
|
10.7 |
|
Advisory fees for settlement costs and liquidity planning |
|
0.6 |
|
|
(0.4 |
) |
|
1.1 |
|
|
1.5 |
|
Acquisition pursuit and related costs |
|
0.2 |
|
|
0.7 |
|
|
0.8 |
|
|
5.5 |
|
Product development (1) |
|
5.7 |
|
|
1.5 |
|
|
9.0 |
|
|
4.1 |
|
Foreign exchange |
|
(1.7 |
) |
|
(2.6 |
) |
|
2.5 |
|
|
0.6 |
|
Financial advisory services |
|
— |
|
|
0.3 |
|
|
— |
|
|
1.4 |
|
Contract disposal (2) |
|
0.2 |
|
|
0.4 |
|
|
8.6 |
|
|
3.0 |
|
Letter of credit fees |
|
2.1 |
|
|
2.2 |
|
|
7.7 |
|
|
5.2 |
|
Other - net |
|
0.5 |
|
|
0.9 |
|
|
2.0 |
|
|
1.5 |
|
Adjusted EBITDA |
$ |
19.5 |
|
$ |
21.0 |
|
$ |
79.1 |
|
$ |
67.5 |
|
Product development (1) |
|
(5.3 |
) |
|
(0.9 |
) |
|
(7.0 |
) |
|
(2.1 |
) |
BrightLoopTM and ClimateBrightTM expenses |
|
6.6 |
|
|
2.0 |
|
|
12.0 |
|
|
6.4 |
|
Adjusted EBITDA excluding BrightLoopTM and ClimateBrightTM expenses |
$ |
20.8 |
|
$ |
22.1 |
|
$ |
84.1 |
|
$ |
71.8 |
|
(1) |
Costs associated with development of commercially viable products that are ready to go to market. The elements of these costs associated with BrightLoopTM and ClimateBrightTM are included in the BrightLoopTM and ClimateBrightTM expenses line. |
(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/20240314462464/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
Source: Babcock & Wilcox Enterprises, Inc.
FAQ
What was the percentage increase in revenues from Continued Operations year over year for BW?
What is BW's Full Year 2024 Adjusted EBITDA target range?
How much was the grant awarded to BW by the Wyoming Energy Authority?
What was the total amount of the new Senior Secured Credit Facility completed by BW?
What was the total identified global project opportunities pipeline amount for BW?
What was the total annualized cost savings achieved by BW?
What were the financial highlights for BW in Q4 2023?
