Babcock & Wilcox Enterprises Reports Third Quarter 2023 Results and Announces Strategic Business Realignment
- Improved revenues and adjusted EBITDA
- Strategic business realignment to focus on higher margin aftermarket businesses
- Anticipated annualized cost savings of over $30 million
- Updated backlog growth and Full Year 2023 and 2024 Adjusted EBITDA targets
- None.
-
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 -
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 - 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
– Net loss of
– Loss per share of
– Consolidated adjusted EBITDA of
– Ending backlog of
Updated Outlook
– Updated backlog growth to a range of
– Updated Full Year 2023 Adjusted EBITDA target of
– Introduced Full Year 2024 Adjusted EBITDA target of
"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
“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
“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
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 -
Refinancing existing
$150 million $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
Babcock & Wilcox Renewable segment revenues were
Babcock & Wilcox Environmental segment revenues were
Babcock & Wilcox Thermal segment revenues were
Liquidity and Balance Sheet
At September 30, 2023, the Company had total debt of
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
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
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
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
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 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 |
|
0.1 |
|
|
0.1 |
|
Common stock, par value |
|
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
Source: Babcock & Wilcox Enterprises, Inc.
FAQ
What were Babcock & Wilcox Enterprises, Inc.'s Q3 2023 revenues and adjusted EBITDA?
What strategic business realignment did Babcock & Wilcox Enterprises, Inc. announce?
What are the updated Full Year 2023 and 2024 Adjusted EBITDA targets?
