Babcock & Wilcox Enterprises Reports First Quarter 2021 Results
Babcock & Wilcox (BW) reported strong first-quarter 2021 results, achieving $168.2 million in revenues, a 13% increase from Q1 2020, despite ongoing COVID-19 challenges. The company recorded $169 million in bookings and a backlog of $535 million. Adjusted EBITDA rose to $8.5 million, up from $1 million a year ago. CEO Kenneth Young highlighted the success of cost-reduction strategies and the launch of new segments, positioning the company for future growth. The company has over $5 billion in identified project opportunities and plans to expand its clean energy technology.
- Revenue increased by 13% YoY to $168.2 million.
- Adjusted EBITDA improved significantly to $8.5 million from $1 million in Q1 2020.
- Bookings of $169 million and backlog of $535 million indicate strong future demand.
- The company is pursuing over $5 billion in project opportunities and leveraging carbon capture technologies.
- Revenue in the Renewable segment declined to $28.8 million from $36 million due to project delays.
- COVID-19-related travel restrictions have hampered project timelines and operational performance.
Babcock & Wilcox Enterprises, Inc. ("B&W" or the "Company") (NYSE: BW) announced results for the first quarter of 2021.
"Our results for the first quarter of 2021 reflect the ongoing strength of our turnaround efforts including cost reductions and growth strategies, and put us in a strong position to achieve our adjusted EBITDA targets of
"As we pursue a robust pipeline of more than
"We are also seeing a significant number of attractive targets for investments or acquisitions in both emerging technology and mature markets, including small add-ons and transformative opportunities," Young added. "We are establishing capital-raising mechanisms to enable us to pursue such opportunities as they arise, including our
1 The most comparable GAAP financial measure is not available without unreasonable effort. |
Q1 2021 Financial Summary
Consolidated revenues in the first quarter of 2021 were
Babcock & Wilcox Renewable segment revenues were
Babcock & Wilcox Environmental segment revenues were
Babcock & Wilcox Thermal segment revenues were
COVID-19 Impact
The global COVID-19 pandemic has disrupted business operations, trade, commerce, financial and credit markets, and daily life throughout the world. The Company's business has been, and continues to be, adversely impacted by the measures taken and restrictions imposed in the countries in which it operates and by local governments and others to control the spread of this virus. These measures and restrictions have varied widely and have been subject to significant changes from time to time depending on the changes in the severity of the virus in these countries and localities. These restrictions, including travel and curtailment of other activity, negatively impact the Company's ability to conduct business. The volatility and variability of the virus has limited the Company's ability to forecast the impact of the virus on its customers and its business. The continuing resurgence of COVID-19, including at least one new strain thereof, has resulted in the reimposition of certain restrictions and may lead to other restrictions being implemented in response to efforts to reduce the spread of the virus. These varying and changing events have caused many of the projects the Company had anticipated would begin in 2020 to be delayed into 2021 and beyond. Many customers and projects require B&W's employees to travel to customer and project worksites. Certain customers and significant projects are located in areas where travel restrictions have been imposed, certain customers have closed or reduced on-site activities, and timelines for completion of certain projects have, as noted above, been extended into 2021 and beyond. Additionally, out of concern for the Company's employees, even where restrictions permit employees to return to its offices and worksites, the Company has incurred additional costs to protect its employees as well as advising those who are uncomfortable returning to worksites due to the pandemic that they are not required to do so for an indefinite period of time. The resulting uncertainty concerning, among other things, the spread and economic impact of the virus has also caused significant volatility and, at times, illiquidity in global equity and credit markets. The full extent of the COVID-19 impact on the Company's operational and financial performance will depend on future developments, including the ultimate duration and spread of the pandemic and related actions taken by the U.S. government, state and local government officials, and international governments to prevent disease spread, as well as the availability and effectiveness of COVID-19 vaccinations in the U.S. and abroad, all of which are uncertain, out of the Company's control, and cannot be predicted.
Liquidity and Balance Sheet
As previously disclosed, on February 12, 2021 the Company closed an underwritten public offering of 29,487,180 shares of common stock for gross proceeds of approximately
On February 16, 2021, the Company prepaid
On March 4, 2021, the Company amended its Credit Agreement to, among other things, reduce its revolving borrowing availability to zero and its letter of credit availability to
At March 31, 2021, the Company had total gross debt of
On March 31, 2021, the Company entered into an at-the-market ("ATM") sales agreement with B. Riley Securities, Inc. in which the Company may sell, from time to time, up to an aggregated principal amount of
As previously disclosed, on May 7, 2021 the Company closed an underwritten registered public offering of 4,000,000 shares of its
Taking into account the effect of the ATM net proceeds as of May 10, 2021 and the net proceeds from the preferred stock offering closed on May 7, 2021, pro-forma total gross debt and unrestricted cash at March 31, 2021 would be
In addition, as previously disclosed, based on the performance of the Company's domestic qualified pension plan and as a result of the passage of the U.S. American Rescue Plan Act, the minimum required funding contributions through 2026 have been reduced by
Cost Savings Measures Continuing
In addition to the
Earnings Call Information
B&W plans to host a conference call and webcast on Thursday, May 13, 2021 at 8 a.m. ET to discuss the Company’s first quarter 2021 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) 227-5843; the dial-in number for participants outside the U.S. is (647) 689-4070. The conference ID for all participants is 2970079. A replay of this conference call will remain accessible in the investor relations section of the Company's website for a limited time.
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures internally to evaluate its performance and in making financial and operational decisions. When viewed in conjunction with GAAP results and the accompanying reconciliation, the Company believes that its presentation of these measures provides investors with greater transparency and a greater understanding of factors affecting its financial condition and results of operations than GAAP measures alone. As previously disclosed, the Company changed its reportable segments in 2020 and has recast prior period results to account for this change. Additionally, the Company redefined its definition of adjusted EBITDA to eliminate the effects of certain items including the loss from a non-strategic business, interest on letters of credit included in cost of operations and loss on business held for sale. Prior period results have been revised to conform with the revised definition and present separate reconciling items in our reconciliation.
This release presents adjusted gross profit for each business segment and 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, tax, depreciation and amortization adjusted for items such as gains or losses on asset sales, mark to market ("MTM") pension adjustments, restructuring and spin costs, impairments, losses on debt extinguishment, costs related to financial consulting required under the U.S. Revolving Credit Facility and other costs that may not be directly controllable by segment management and are not allocated to the segment. The Company presented consolidated Adjusted EBITDA because it believes it is useful to investors to help facilitate comparisons of the ongoing, operating performance before corporate overhead and other expenses not attributable to the operating performance of the Company's revenue generating segments. This release also presents certain targets for our adjusted EBITDA in the future; these targets are not intended as guidance regarding how the Company believes the business will perform. The Company is unable to reconcile these targets to their GAAP counterparts without unreasonable effort and expense due to the aspirational nature of these targets.
This release also presents adjusted gross profit by segment. The Company believes that adjusted gross profit by segment is useful to investors to help facilitate comparisons of the ongoing, operating performance of the segments by excluding expenses related to, among other things, activities related to the spin-off, activities related to various restructuring activities the Company has undertaken, corporate overhead (such as SG&A expenses and research and development costs) and certain non-cash expenses such as intangible amortization and goodwill impairments that are not allocated by segment.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in the release are forward-looking statements. You should not place undue reliance on these statements. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, the impact of COVID-19 on the Company, the capital markets and global economic climate generally; the Company’s recognition of any asset impairments as a result of any decline in the value of its assets or efforts to dispose of any assets in the future; the Company’s ability to obtain and maintain sufficient financing to provide liquidity to meet its business objectives, surety bonds, letters of credit and similar financing; the Company’s ability to comply with the requirements of, and to service the indebtedness under, the Company’s A&R Credit Agreement; the highly competitive nature of the Company’s businesses and ability to win work, including identified project opportunities in the pipeline; general economic and business conditions, including changes in interest rates and currency exchange rates; cancellations of and adjustments to backlog and the resulting impact from using backlog as an indicator of future earnings; the Company’s ability to perform contracts on time and on budget, in accordance with the schedules and terms established by the applicable contracts with customers; failure by third-party subcontractors, partners or suppliers to perform their obligations on time and as specified; the Company’s ability to successfully resolve claims by vendors for goods and services provided and claims by customers for items under warranty; the Company’s ability to realize anticipated savings and operational benefits from its restructuring plans, and other cost-savings initiatives; the Company’s ability to successfully address productivity and schedule issues in its B&W Renewable, B&W Environmental and B&W Thermal segments, including the ability to complete its B&W Renewable's European EPC projects and B&W Environmental's U.S. loss projects within the expected time frame and the estimated costs; the Company’s ability to successfully partner with third parties to win and execute contracts within its B&W Renewable, B&W Environmental and B&W Thermal segments; changes in the Company’s effective tax rate and tax positions, including any limitation on its ability to use its net operating loss carryforwards and other tax assets; the Company’s ability to successfully manage research and development projects and costs, including its efforts to successfully develop and commercialize new technologies and products; the operating risks normally incident to its lines of business, including professional liability, product liability, warranty and other claims against the Company; difficulties the Company may encounter in obtaining regulatory or other necessary permits or approvals; changes in actuarial assumptions and market fluctuations that affect its net pension liabilities and income; the Company’s ability to successfully compete with current and future competitors; the Company’s ability to negotiate and maintain good relationships with labor unions; changes in pension and medical expenses associated with its retirement benefit programs; social, political, competitive and economic situations in foreign countries where it does business or seeks new business; and the other factors specified and set forth under "Risk Factors" in the Company’s periodic reports filed with the Securities and Exchange Commission, including the Company’s most recent annual report on Form 10-K and its quarterly report on Form 10-Q for the quarter ended March 31, 2021.
These forward-looking statements are made based upon detailed assumptions and reflect management’s current expectations and beliefs. While the Company believes that these assumptions underlying the forward-looking statements are reasonable, the Company cautions that it is very difficult to predict the impact of known factors, and it is impossible for the Company to anticipate all factors that could affect actual results. The forward-looking statements included herein are made only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.
About B&W Enterprises
Headquartered in Akron, Ohio, Babcock & Wilcox Enterprises is a global leader in energy and environmental technologies and services for the power and industrial markets. Follow B&W on LinkedIn and learn more at www.babcock.com.
Exhibit 1 |
||||||||
Babcock & Wilcox Enterprises, Inc. |
||||||||
Condensed Consolidated Statements of Operations(1) |
||||||||
(In millions, except per share amounts) |
||||||||
|
Three months ended March 31, |
|||||||
|
2021 |
2020 |
||||||
Revenues |
$ |
168.2 |
|
$ |
148.6 |
|
||
Costs and expenses: |
|
|
||||||
Cost of operations |
131.4 |
|
114.6 |
|
||||
Selling, general and administrative expenses |
40.5 |
|
37.6 |
|
||||
Advisory fees and settlement costs |
3.3 |
|
4.2 |
|
||||
Restructuring activities |
1.0 |
|
2.0 |
|
||||
Research and development costs |
0.6 |
|
1.3 |
|
||||
Gain on asset disposals, net |
(2.0) |
|
(0.9) |
|
||||
Total costs and expenses |
174.7 |
|
158.9 |
|
||||
Operating loss |
(6.5) |
|
(10.3) |
|
||||
Other (expense) income: |
|
|
||||||
Interest expense |
(14.2) |
|
(22.1) |
|
||||
Interest income |
0.1 |
|
— |
|
||||
Gain on sale of business |
0.4 |
|
— |
|
||||
Benefit plans, net |
9.1 |
|
7.5 |
|
||||
Foreign exchange |
(1.2) |
|
(9.3) |
|
||||
Other – net |
(0.3) |
|
(0.2) |
|
||||
Total other expense |
(6.1) |
|
(24.0) |
|
||||
Loss before income tax expense (benefit) |
(12.6) |
|
(34.3) |
|
||||
Income tax expense (benefit) |
2.8 |
|
(0.8) |
|
||||
Loss from continuing operations |
(15.4) |
|
(33.5) |
|
||||
Income from discontinued operations, net of tax |
— |
|
1.9 |
|
||||
Net loss |
(15.4) |
|
(31.6) |
|
||||
Net (income) loss attributable to non-controlling interest |
— |
|
0.1 |
|
||||
Net loss attributable to stockholders |
$ |
(15.5) |
|
$ |
(31.5) |
|
||
|
|
|
||||||
Basic and diluted loss per share - continuing operations |
$ |
(0.22) |
|
$ |
(0.72) |
|
||
Basic and diluted earnings per share - discontinued operations |
— |
|
0.04 |
|
||||
Basic and diluted loss per share |
$ |
(0.22) |
|
$ |
(0.68) |
|
||
|
|
|
||||||
Shares used in the computation of earnings per share: |
|
|
||||||
Basic and diluted |
71.4 |
|
46.4 |
|
(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) |
March 31, 2021 |
December 31, 2020 |
||||||
Cash and cash equivalents |
$ |
53.8 |
|
$ |
57.3 |
|
||
Restricted cash and cash equivalents |
4.6 |
|
10.1 |
|
||||
Accounts receivable – trade, net |
144.1 |
|
128.3 |
|
||||
Accounts receivable – other |
30.7 |
|
35.4 |
|
||||
Contracts in progress |
66.2 |
|
59.3 |
|
||||
Inventories |
67.9 |
|
67.2 |
|
||||
Other current assets |
24.0 |
|
26.4 |
|
||||
Current assets held for sale |
— |
|
4.7 |
|
||||
Total current assets |
391.4 |
|
388.8 |
|
||||
Net property, plant and equipment, and finance lease |
85.8 |
|
85.1 |
|
||||
Goodwill |
47.4 |
|
47.4 |
|
||||
Intangible assets |
22.2 |
|
23.9 |
|
||||
Right-of-use assets |
9.5 |
|
10.8 |
|
||||
Other assets |
24.2 |
|
24.7 |
|
||||
Non-current assets held for sale |
1.9 |
|
11.2 |
|
||||
Total assets |
$ |
582.4 |
|
$ |
591.8 |
|
||
|
||||||||
Accounts payable |
$ |
78.5 |
|
$ |
73.5 |
|
||
Accrued employee benefits |
13.7 |
|
13.9 |
|
||||
Advance billings on contracts |
81.8 |
|
64.0 |
|
||||
Accrued warranty expense |
19.5 |
|
25.4 |
|
||||
Operating lease liabilities |
3.6 |
|
4.0 |
|
||||
Other accrued liabilities |
70.6 |
|
81.7 |
|
||||
Current liabilities held for sale |
— |
|
8.3 |
|
||||
Total current liabilities |
267.7 |
|
270.8 |
|
||||
Revolving credit facilities |
— |
|
164.3 |
|
||||
Last out term loans |
73.3 |
|
183.3 |
|
||||
Senior notes |
155.5 |
|
— |
|
||||
Pension and other accumulated postretirement benefit liabilities |
219.3 |
|
252.3 |
|
||||
Non-current finance lease liabilities |
33.2 |
|
29.7 |
|
||||
Non-current operating lease liabilities |
6.1 |
|
7.0 |
|
||||
Other non-current liabilities |
22.7 |
|
22.6 |
|
||||
Total liabilities |
777.8 |
|
930.1 |
|
||||
Commitments and contingencies |
|
|
||||||
Stockholders' deficit: |
|
|
||||||
Common stock, par value |
5.1 |
|
4.8 |
|
||||
Capital in excess of par value |
1,330.1 |
|
1,164.4 |
|
||||
Treasury stock at cost, 1,214 and 718 shares at March 31, 2021 and December 31, 2020, respectively |
(109.3) |
|
(106.0) |
|
||||
Accumulated deficit |
(1,365.7) |
|
(1,350.2) |
|
||||
Accumulated other comprehensive income (loss) |
(56.8) |
|
(52.4) |
|
||||
Stockholders' deficit attributable to shareholders |
(196.5) |
|
(339.4) |
|
||||
Non-controlling interest |
1.1 |
|
1.1 |
|
||||
Total stockholders' deficit |
(195.4) |
|
(338.3) |
|
||||
Total liabilities and stockholders' deficit |
$ |
582.4 |
|
$ |
591.8 |
|
(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) |
Three months ended March 31, |
|||||||
|
2021 |
|
2020 |
|||||
Cash flows from operating activities: |
|
|
||||||
Net loss |
$ |
(15.4) |
|
$ |
(31.6) |
|
||
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
||||||
Depreciation and amortization of long-lived assets |
4.1 |
|
4.2 |
|
||||
Amortization of deferred financing costs, debt discount and payment-in-kind interest |
5.8 |
|
9.9 |
|
||||
Amortization of guaranty fee |
0.5 |
|
— |
|
||||
Non-cash operating lease expense |
1.1 |
|
1.2 |
|
||||
Gain on sale of business |
(0.4) |
|
— |
|
||||
Gains on asset disposals |
(2.0) |
|
(0.9) |
|
||||
Provision for (benefit from) deferred income taxes, including valuation allowances |
1.6 |
|
(0.4) |
|
||||
Prior service cost amortization for pension and postretirement plans |
0.2 |
|
(0.2) |
|
||||
Stock-based compensation, net of associated income taxes |
4.5 |
|
0.9 |
|
||||
Foreign exchange |
1.2 |
|
9.3 |
|
||||
Changes in assets and liabilities: |
|
|
||||||
Accounts receivable |
(11.6) |
|
10.6 |
|
||||
Contracts in progress |
(6.9) |
|
7.7 |
|
||||
Advance billings on contracts |
18.2 |
|
(7.3) |
|
||||
Inventories |
(1.9) |
|
1.3 |
|
||||
Income taxes |
(1.9) |
|
(1.9) |
|
||||
Accounts payable |
6.2 |
|
(26.5) |
|
||||
Accrued and other current liabilities |
(17.1) |
|
6.1 |
|
||||
Accrued contract loss |
(0.1) |
|
(2.6) |
|
||||
Pension liabilities, accrued postretirement benefits and employee benefits |
(33.6) |
|
(10.3) |
|
||||
Other, net |
(6.3) |
|
(4.9) |
|
||||
Net cash used in operating activities |
(54.0) |
|
(35.5) |
|
||||
Cash flows from investing activities: |
|
|
||||||
Purchase of property, plant and equipment |
(1.4) |
|
(2.4) |
|
||||
Proceeds from sale of business and assets, net |
3.3 |
|
— |
|
||||
Purchases of available-for-sale securities |
(3.4) |
|
(6.4) |
|
||||
Sales and maturities of available-for-sale securities |
5.5 |
|
3.4 |
|
||||
Other, net |
0.5 |
|
0.8 |
|
||||
Net cash from (used in) investing activities |
4.5 |
|
(4.5) |
|
||||
Cash flows from financing activities: |
|
|
||||||
Borrowings under our U.S. revolving credit facility |
14.5 |
|
70.2 |
|
||||
Repayments of our U.S. revolving credit facility |
(178.8) |
|
(64.2) |
|
||||
Borrowings under last out term loans |
— |
|
30.0 |
|
||||
Repayments under last out term loans |
(75.0) |
|
— |
|
||||
Issuance of senior notes |
125.0 |
|
— |
|
||||
Shares of our common stock returned to treasury stock |
(3.3) |
|
— |
|
||||
Issuance of common stock, net |
161.5 |
|
— |
|
||||
Debt issuance costs |
(7.7) |
|
(5.7) |
|
||||
Other, net |
(0.2) |
|
0.6 |
|
||||
Net cash from financing activities |
35.9 |
|
30.8 |
|
||||
Effects of exchange rate changes on cash |
4.5 |
|
(1.4) |
|
||||
Net decrease in cash, cash equivalents and restricted cash |
(9.0) |
|
(10.6) |
|
||||
Cash, cash equivalents and restricted cash, beginning of period |
67.4 |
|
56.9 |
|
||||
Cash, cash equivalents and restricted cash, end of period |
$ |
58.4 |
|
$ |
46.4 |
|
(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 March 31, |
|||||||
|
2021 |
|
2020 |
|||||
REVENUES: |
|
|
||||||
Babcock & Wilcox Renewable |
$ |
28.8 |
|
$ |
36.0 |
|
||
Babcock & Wilcox Environmental |
31.2 |
|
25.9 |
|
||||
Babcock & Wilcox Thermal |
108.3 |
|
86.7 |
|
||||
Other |
— |
|
— |
|
||||
|
$ |
168.2 |
|
$ |
148.6 |
|
||
|
|
|
||||||
ADJUSTED EBITDA:(2) |
|
|
||||||
Babcock & Wilcox Renewable |
$ |
0.2 |
|
$ |
(1.4) |
|
||
Babcock & Wilcox Environmental |
1.1 |
|
0.3 |
|
||||
Babcock & Wilcox Thermal |
10.4 |
|
7.6 |
|
||||
Corporate |
(2.7) |
|
(4.1) |
|
||||
Research and development costs |
(0.6) |
|
(1.3) |
|
||||
|
$ |
8.5 |
|
$ |
1.0 |
|
||
|
|
|
||||||
AMORTIZATION EXPENSE: |
|
|
||||||
Babcock & Wilcox Renewable (3) |
$ |
0.1 |
|
$ |
0.2 |
|
||
Babcock & Wilcox Environmental |
0.8 |
|
0.8 |
|
||||
Babcock & Wilcox Thermal (3) |
0.4 |
|
0.5 |
|
||||
|
$ |
1.4 |
|
$ |
1.4 |
|
||
|
|
|
||||||
DEPRECIATION EXPENSE: |
|
|
||||||
Babcock & Wilcox Renewable |
$ |
0.7 |
|
$ |
0.8 |
|
||
Babcock & Wilcox Environmental |
0.4 |
|
0.4 |
|
||||
Babcock & Wilcox Thermal |
1.5 |
|
1.5 |
|
||||
Corporate |
— |
|
— |
|
||||
|
$ |
2.7 |
|
$ |
2.8 |
|
||
|
|
|
||||||
|
As of March 31, |
|||||||
BACKLOG: |
2021 |
|
2020 |
|||||
Babcock & Wilcox Renewable (4) |
$ |
215 |
|
$ |
224 |
|
||
Babcock & Wilcox Environmental |
118 |
|
100 |
|
||||
Babcock & Wilcox Thermal |
206 |
|
183 |
|
||||
Other/Eliminations |
(4) |
|
(6) |
|
||||
|
$ |
535 |
|
$ |
501 |
|
(1) |
Figures may not be clerically accurate due to rounding. |
|
(2) |
Adjusted EBITDA for the three months ended March 31, 2020, excludes losses related to a non-strategic business and interest on letters of credit included in cost of operations that were previously included in Adjusted EBITDA and total |
|
(3) |
Amortization expense in the Babcock & Wilcox Renewable and Babcock & Wilcox Thermal segments include |
|
(4) |
Babcock & Wilcox Renewable backlog at March 31, 2021, includes |
Exhibit 5 |
||||||||
Babcock & Wilcox Enterprises, Inc. |
||||||||
Reconciliation of Adjusted EBITDA(2) |
||||||||
(In millions) |
||||||||
|
Three months ended March 31, |
|||||||
|
2021 |
|
2020 |
|||||
Adjusted EBITDA (1) |
|
|
||||||
B&W Renewable segment |
$ |
0.2 |
|
$ |
(1.4) |
|
||
B&W Environmental segment |
1.1 |
|
0.3 |
|
||||
B&W Thermal segment |
10.4 |
|
7.6 |
|
||||
Corporate |
(2.7) |
|
(4.1) |
|
||||
Research and development costs |
(0.6) |
|
(1.3) |
|
||||
|
8.5 |
|
1.0 |
|
||||
|
|
|
||||||
Restructuring activities |
(1.0) |
|
(2.0) |
|
||||
Financial advisory services |
(0.9) |
|
(0.9) |
|
||||
Advisory fees for settlement costs and liquidity planning |
(2.0) |
|
(2.6) |
|
||||
Litigation legal costs |
(0.4) |
|
(0.7) |
|
||||
Stock compensation |
(7.8) |
|
(0.7) |
|
||||
Interest on letters of credit included in cost of operations |
(0.3) |
|
(0.2) |
|
||||
Loss from business held for sale |
(0.5) |
|
(0.8) |
|
||||
Depreciation & amortization |
(4.1) |
|
(4.2) |
|
||||
Gain (loss) from a non-strategic business |
— |
|
(0.1) |
|
||||
Gain on asset disposals, net |
2.0 |
|
0.9 |
|
||||
Operating loss |
(6.5) |
|
(10.3) |
|
||||
Interest expense, net |
(14.1) |
|
(22.1) |
|
||||
Gain on sale of business |
0.4 |
|
— |
|
||||
Net pension benefit |
9.1 |
|
7.5 |
|
||||
Foreign exchange |
(1.2) |
|
(9.3) |
|
||||
Other – net |
(0.3) |
|
(0.2) |
|
||||
Total other income (expense) |
(6.1) |
|
(24.0) |
|
||||
Loss before income tax (benefit) expense |
(12.6) |
|
(34.3) |
|
||||
Income tax (benefit) expense |
2.8 |
|
(0.8) |
|
||||
Loss from continuing operations |
(15.4) |
|
(33.5) |
|
||||
Income from discontinued operations, net of tax |
— |
|
1.9 |
|
||||
Net loss |
(15.4) |
|
(31.6) |
|
||||
Net (income) loss attributable to non-controlling interest |
— |
|
0.1 |
|
||||
Net loss attributable to stockholders |
$ |
(15.5) |
|
$ |
(31.5) |
|
(1) |
Adjusted EBITDA for the three months ended March 31, 2020, excludes losses related to a non-strategic business and interest on letters of credit included in cost of operations that were previously included in Adjusted EBITDA and total |
|
(2) |
Figures may not be clerically accurate due to rounding. |
Exhibit 6 |
||||||||
Babcock & Wilcox Enterprises, Inc. |
||||||||
Reconciliation of Adjusted Gross Profit(3) |
||||||||
(In millions) |
||||||||
|
Three months ended March 31, |
|||||||
|
2021 |
|
2020 |
|||||
Adjusted gross profit (1)(2) |
|
|
||||||
Operating loss |
$ |
(6.5) |
|
$ |
(10.3) |
|
||
Selling, general and administrative ("SG&A") expenses |
40.4 |
|
37.5 |
|
||||
Advisory fees and settlement costs |
3.3 |
|
4.2 |
|
||||
Amortization expense |
1.4 |
|
1.4 |
|
||||
Restructuring activities |
1.0 |
|
2.0 |
|
||||
Research and development costs |
0.6 |
|
1.3 |
|
||||
(Gain) loss from a non-strategic business |
— |
|
0.1 |
|
||||
Gains on asset disposals, net |
(2.0) |
|
(0.9) |
|
||||
Adjusted gross profit |
$ |
38.2 |
|
$ |
35.4 |
|
Adjusted gross profit by segment is as follows:
|
Three months ended March 31, |
|||||||||
|
2021 |
|
2020 |
|||||||
Adjusted gross profit (1)(2) |
|
|
||||||||
B&W Renewable segment |
$ |
6.9 |
|
$ |
6.9 |
|
||||
B&W Environmental segment |
5.9 |
|
5.3 |
|
||||||
B&W Thermal segment |
25.3 |
|
23.2 |
|
||||||
Adjusted gross profit |
$ |
38.2 |
|
$ |
35.4 |
|
(1) |
Amortization is not allocated to the segments' adjusted gross profit, but depreciation is allocated to the segments' adjusted gross profit. |
|
(2) |
Adjusted gross profit for the three months ended March 31, 2020, excludes losses related to a non-strategic business that was previously included in Adjusted gross profit and totals |
|
(3) |
Figures may not be clerically accurate due to rounding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210513005307/en/
FAQ
What were Babcock & Wilcox's Q1 2021 revenues?
How did Babcock & Wilcox's adjusted EBITDA perform in Q1 2021?
What is the current backlog for Babcock & Wilcox?
What project opportunities does Babcock & Wilcox have?