- Reaffirming 2018 guidance
- U.K. Renewable projects progressing towards
completion
- MEGTEC and Universal strategic processes
ongoing
- Raised $248.5 million through rights
offering; repaid second-lien term loan
Babcock & Wilcox Enterprises, Inc. ("B&W") (NYSE: BW)
announced today first quarter 2018 revenues of $311.4 million, a
decrease of $79.7 million, or 20%, compared to the first quarter of
2017. GAAP earnings per share in first quarter 2018 were a loss of
$2.73 compared to a loss per share of $0.14 in first quarter 2017.
Adjusted earnings per share were a loss of $2.19 for the three
months ended March 31, 2018 compared to an adjusted earnings
per share of $0.04 in the prior-year period. GAAP net loss in first
quarter 2018 was $120.3 million compared to $6.8 million in first
quarter 2017. Adjusted EBITDA was negative $61.6 million compared
to positive $8.4 million in the prior year period. A reconciliation
of historical non-GAAP results is provided in the exhibits to this
release.
“Performance in our Power and Industrial segments was generally
in line with our expectations in first quarter. However, the
performance in these segments was overshadowed by the previously
announced cost increases on our B&W Vølund new-build
contracts," said Leslie C. Kass, President and Chief Executive
Officer. “We are making progress toward completion at each of our
Renewable new-build project sites and are seeking potential
recoveries to mitigate losses. In Power, we had strong bookings,
and Industrial profitability is beginning to improve.
“With the support of our shareholders, we raised $248.5 million
through the recently completed rights offering, allowing us to
repay our second-lien term loan, which combined with the potential
sales of MEGTEC and Universal, puts us on a path to having a
much-improved balance sheet. All of the members of the management
team, including the recently appointed Chief Implementation
Officer, are driving efficiencies and cost reductions throughout
the organization in an effort to produce improved financial results
while maintaining our ability to continue serving our customers
with high-quality and reliable engineered equipment, parts, and
services.”
Results of Operations
Consolidated revenues in first quarter 2018 were $311.4 million,
a decrease of $79.7 million compared to $391.1 million in first
quarter 2017, as modestly higher revenue in the Industrial segment
was offset by lower revenue in the Renewable and Power segments.
The GAAP operating loss in first quarter 2018 was $102.7 million
compared to an operating loss of $13.0 million in first quarter
2017. The adjusted operating loss in first quarter 2018 was $77.0
million, compared to an adjusted operating loss of $2.0 million in
first quarter 2017, due mainly to a higher level of charges on
contracts within the Renewable segment compared to last year.
Adjusted EBITDA was negative $61.6 million compared to positive
$8.4 million in the prior year period.
First quarter 2018 revenues for the Power segment
decreased 18.9% to $159.1 million compared to $196.3 million in the
prior year period. Revenues decreased mainly as the result of
reduced levels of work on new-build and environmental contracts,
partially mitigated by a modest increase in retrofit services
contracts. Gross profit in the Power segment in first quarter 2018
was $30.9 million, compared to $37.7 million in the prior-year
period. Gross profit margin was 19.4%, compared to 19.2% last year.
Adjusted EBITDA in the Power segment in first quarter 2018 was
$11.2 million, compared to $17.4 million in last year's quarter.
Adjusted EBITDA margin was 7.1% compared to 8.9% last year, as the
impact of lower volume was mitigated by solid execution and
benefits from cost savings initiatives implemented over the past
year.
In first quarter 2018, the Company sold all of its joint venture
interest in Babcock & Wilcox Beijing Company, Ltd. (BWBC), its
Chinese joint venture company, for approximately $21 million, in
addition to the $41 million dividend (net of taxes) received from
BWBC in fourth quarter 2017. The Company will continue a
relationship with BWBC through an expanded technology license.
Also, the Company recognized an $18.4 million
other-than-temporary-impairment based on a preliminary agreement to
sell its investment in Thermax Babcock & Wilcox Energy
Solutions Private Limited (TBWES), its Indian joint venture. The
actions to sell interests in both of its Asian joint ventures is
consistent with the Company's strategy to shift its focus more
toward aftermarket parts and service and retrofit opportunities in
the coal-fired power market and away from large international
new-build projects and to monetize non-core assets.
Industrial segment revenues increased 2.9% to $94.9
million in first quarter 2018 compared to $92.2 million in first
quarter 2017, as growth at MEGTEC was partially offset by a small
decline at Universal and lower volumes at SPIG, where the Company
implemented a new business model in second half 2017. Gross profit
in the Industrial segment was $11.3 million in first quarter 2018,
compared to $15.3 million in the prior-year period. Gross profit
margin was 11.9%, compared to 16.6% last year. Adjusted EBITDA was
$(3.4) million compared to $0.5 million last year mainly due to a
lower contribution from SPIG as the result of lower profitability
on certain cooling systems projects.
Revenues in the Renewable segment were $60.0 million for
first quarter 2018, compared to $105.5 million in first quarter
2017. The Renewable segment gross loss was $50.4 million in first
quarter 2018, compared to gross profit of $10.6 million reported in
first quarter 2017. Adjusted EBITDA in the quarter was negative
$61.7 million compared to positive $0.9 million last year, mainly
due to increased estimated costs to complete Renewable new-build
projects and a higher level of SG&A to support the completion
of the projects.
Management has identified $52.6 million of additional estimated
costs to complete its Renewable energy projects in Europe. The
largest portion of these costs ($18.2 million) is related to the
project with the previously announced steel beam failure due to
additional costs following a joint venture partner entering
administration in the United Kingdom and delays in receiving
regulatory releases (received in April 2018) to conduct repairs on
the failed beam. The remainder of the increased costs was related
to schedule delays, claim settlements and other costs associated
with the other loss projects.
Status summary of Renewable loss projects
- The first project, a waste-to-energy
plant in Denmark, was approximately 97% complete as of March
31, 2018. Construction is complete and turnover is expected to be
complete in mid-2018.
- The second project, a biomass plant in
the United Kingdom, was approximately 87% complete as of March
31, 2018. Commissioning activities began on the project in first
quarter 2018 and turnover is expected to occur in mid-2018.
- The third project, a biomass plant
in Denmark, was approximately 98% complete as of March 31.
2018. Construction activities are complete and partial takeover by
the customer was achieved in March 2018, with the remainder of work
expected to be complete during the plant's planned outage later in
2018.
- The fourth project, a biomass plant in
the United Kingdom, was approximately 87% complete as of March
31, 2018. Commissioning began in first quarter 2018, and turnover
is expected to occur in mid-2018.
- The fifth project, a biomass plant in
the United Kingdom, was approximately 61% complete as of March
31, 2018. Construction activities are ongoing and are expected to
be complete in late 2018 with turnover to customer in early
2019.
- The sixth project, a waste-to-energy
plant in the United Kingdom, was approximately 83% complete as
of March 31, 2018. Construction activities are ongoing and turnover
is expected to occur in second half 2018.
In connection with the above-mentioned projects, B&W intends
to not only seek insurance recoveries, but also additional relief
from its customers and pursue other claims. However, there can be
no assurance as to the amounts, if any, that B&W may recover.
The $52.6 million of additional renewable project costs recognized
in first quarter 2018 do not take into account any potential
recoveries to mitigate these losses.
Balance Sheet
The Company’s cash and cash equivalents balance, net of
restricted cash, was $37.4 million at March 31, 2018.
Additionally, the Company has $19.8 million from the sale of BWBC
in its restricted cash balance, which was released in early May
2018. At March 31, 2018, outstanding balances under revolving
credit facilities totaled $181.4 million; at May 8, 2018 the U.S.
revolving credit facility balance was $142.0 million.
On April 30, 2018, the Company completed its previously
announced rights offering raising gross proceeds of $248.5 million.
The Company used $214.9 million of the net proceeds to repay all of
the indebtedness and other obligations under its former second-lien
term loan and will use the remainder of the net proceeds for
working capital purposes.
2018 Outlook
The Company is reaffirming its prior consolidated 2018 guidance
as follows:
- Revenue in the range of $1.5 billion to
$1.7 billion
- Adjusted EBITDA to be in the range of
$20 million to $40 million(1)
(1) As more fully described in Exhibit 2, management is unable to
reconcile without unreasonable effort the Company's forecasted
range of adjusted EBITDA for the full year to a comparable GAAP
range.
The Company is also reconfirming its prior 2018 revenue and
gross margin guidance by segment(2):
- Power: revenue down 5% to flat compared
to 2017; gross margin approximately 20%
- Renewable: no guidance
- Industrial: revenue up 14% to 19%
compared to 2017; gross margin approaching 20%
(2) Segment gross margin guidance is
presented reflecting the adoption of FASB ASU 2017-07. The new
guidance classifies service cost as the only component of net
periodic benefit cost presented in cost of operations, whereas the
other components will be presented in other income. Upon adoption,
this affected not only how we present net periodic benefit cost,
but also Power segment gross profit. We adopted the new accounting
standard retrospectively as of January 1, 2018. The changes in the
classification of the historical components of net periodic benefit
costs from operating expense to other expense for the first quarter
2017 amounted to $4.2 million and are reflected in our condensed
consolidated statements of operations. For a reconciliation of
changes in the classification of the historical components of net
periodic benefit cost please see the appendix in the May 2018
Company Overview Presentation which can be located on the investors
page of our website at www.babcock.com, and in our annual report on
Form 10-K for the year ended December 31, 2017 filed with the
SEC.
Conference Call to Discuss First Quarter 2018 Results
Date:
Tuesday, May 8, 2018, at 5:00 p.m. EST
Live Webcast:
Investor Relations section of website at
www.babcock.com
Forward-Looking Statements
B&W cautions that this release contains forward-looking
statements, including, without limitation, statements relating to
our strategic objectives; our business execution model;
management’s expectations regarding the industries in which we
operate; our guidance and forecasts; our projected operating margin
improvements, savings and restructuring costs; covenant compliance;
and project execution. These forward-looking statements are based
on management’s current expectations and involve a number of risks
and uncertainties, including, among other things, our ability to
continue as a going concern; our ability to obtain and maintain
sufficient financing to provide liquidity to meet our business
objectives, surety bonds, letters of credit and similar financing;
the highly competitive nature of our businesses; general economic
and business conditions, including changes in interest rates and
currency exchange rates; general developments in the industries in
which we are involved; cancellations of and adjustments to backlog
and the resulting impact from using backlog as an indicator of
future earnings; our ability to perform contracts on time and on
budget, in accordance with the schedules and terms established by
the applicable contracts with customers; failure by third-party
subcontractors, joint venture partners or suppliers to perform
their obligations on time and as specified; our ability to realize
anticipated savings and operational benefits from our restructuring
plans, and other cost-savings initiatives; our ability to
successfully integrate and realize the expected synergies from
acquisitions; our ability to successfully address productivity and
schedule issues in our Renewable segment, including the ability to
complete our Renewable energy projects within the expected time
frame and the estimated costs; willingness of customers to waive
liquidated damages or agree to bonus opportunities; our ability to
successfully partner with third parties to win and execute
renewable projects; changes in our effective tax rate and tax
positions; our ability to maintain operational support for our
information systems against service outages and data corruption, as
well as protection against cyber-based network security breaches
and theft of data; our ability to protect our intellectual property
and renew licenses to use intellectual property of third parties;
our use of the percentage-of-completion method of accounting; the
risks associated with integrating businesses we acquire; our
ability to successfully manage research and development projects
and costs, including our efforts to successfully develop and
commercialize new technologies and products; the operating risks
normally incident to our lines of business, including professional
liability, product liability, warranty and other claims against us;
changes in, or our failure or inability to comply with, laws and
government regulations; difficulties we may encounter in obtaining
regulatory or other necessary permits or approvals; changes in, and
liabilities relating to, existing or future environmental
regulatory matters; our limited ability to influence and direct the
operations of our joint ventures; potential violations of the
Foreign Corrupt Practices Act; our ability to successfully compete
with current and future competitors; the loss of key personnel and
the continued availability of qualified personnel; our ability to
negotiate and maintain good relationships with labor unions;
changes in pension and medical expenses associated with our
retirement benefit programs; social, political, competitive and
economic situations in foreign countries where we do business or
seek new business; the possibilities of war, other armed conflicts
or terrorist attacks; our ability to successfully consummate the
sale of our MEGTEC and Universal businesses, as well as any other
non-core assets, within the expected timeframes or at all. If one
or more of these risks or other risks materialize, actual results
may vary materially from those expressed. For a more complete
discussion of these and other risk factors, see B&W’s filings
with the Securities and Exchange Commission, including our most
recent annual report on Form 10-K and subsequent quarterly reports
on Form 10-Q. B&W cautions not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
release, and undertakes no obligation to update or revise any
forward-looking statement, except to the extent required by
applicable law.
About B&W
Headquartered in Charlotte, N.C., Babcock & Wilcox is a
global leader in energy and environmental technologies and services
for the power and industrial markets. Follow us on Twitter
@BabcockWilcox and learn more at www.babcock.com.
Exhibit 1
Babcock & Wilcox Enterprises,
Inc.
Reconciliation of Non-GAAP Operating
Income and Earnings Per Share(1)(2)
(In millions, except per share
amounts)
Three Months Ended March 31, 2018
Restructuring Impairment
Non-GAAP and spin-off Financial of equity
excluding
transaction advisory BWBC (gain) method Intangible
intangible GAAP costs services on sale investment
Non-GAAP amortization
amortization Operating income (loss)
$(102.7) $6.9 $3.5 $(6.5) $18.4 $(80.5) $3.5 $(77.0) Other income
(expense) (3.5) — — — — (3.5) — (3.5) Income tax expense (benefit)
14.1 0.4 0.8 — — 15.2 0.9
16.1 Net income (loss) $(120.3) $6.5 $2.7 $(6.5) $18.4
$(99.3) $2.6 $(96.7) Net income attributable to non-controlling
interest (0.1) — — — — (0.1)
— (0.1) Net income (loss) attributable to
shareholders $(120.4) $6.5 $2.7 $(6.5)
$18.4 $(99.4) $2.6 $(96.8) Diluted EPS
- continuing operations $(2.73) $0.15 $0.06 $(0.15) $0.42 $(2.25)
$0.06 $(2.19) Income tax rate (18.1)% (20.0)%
Three Months Ended March 31, 2017 Restructuring
Non-GAAP and spin-off
Acquisition and Pension &
excluding transaction
integration OPEB MTM Intangible
intangible GAAP costs
costs (gain) / loss Non-GAAP amortization
amortization
Operating income (loss) $(13.0) $3.0 $1.9 $— $(8.0) $6.0 $(2.0)
Other income (expense) 2.2 — — 1.1 3.2 — 3.2 Income tax expense
(benefit) (4.0) 0.8 0.3 0.3 (2.6)
1.9 (0.7) Net income (loss) $(6.8) $2.2 $1.7 $0.8
$(2.2) $4.1 $1.9 Net income attributable to non-controlling
interest (0.2) — — — (0.2) —
(0.2) Net income (loss) attributable to shareholders $(7.0)
$2.2 $1.7 $0.8 $(2.4) $4.1
$1.7 Diluted EPS - continuing operations $(0.14)
$0.05 $0.03 $0.02 $(0.05) $0.08 $0.04 Income tax rate 54.6%
(58.1)% (1) Figures may not be clerically accurate due to
rounding. (2) B&W is providing non-GAAP information
regarding certain of its historical results to supplement the
results provided in accordance with GAAP, and it should not be
considered superior to, or as a substitute for, the comparable GAAP
measures. B&W believes the non-GAAP measures provide meaningful
insight into the Company’s operational performance and provides
these measures to investors to help facilitate comparisons of
operating results with prior periods and to assist them in
understanding B&W’s ongoing operations.
Exhibit 2
Babcock & Wilcox Enterprises,
Inc.
Reconciliation of Adjusted
EBITDA(1)
(In millions)
Three Three Three Three
Three Months Months Months
Months Months Ended Ended Ended
Ended Ended March 31, December 30,
September 30, June 30, March 31, 2018
2017 2017 2017
2017 Adjusted EBITDA (2) Power segment(3) $
11.2 $ 38.4 $ 21.6 $ 27.4 $ 17.4 Renewable segment (61.7 ) (39.0 )
(10.6 ) (123.3 ) 0.9 Industrial segment (3.4 ) (7.2 ) (5.7 ) (6.9 )
0.5 Corporate (9.1 ) (6.0 ) (6.9 ) (7.7 ) (7.8 ) Research and
development costs (1.5 ) (2.0 ) (2.3 ) (2.9 ) (2.3 ) Foreign
exchange & other income (expense) 2.8 (0.8 )
(7.6 ) 1.9 (0.4 ) (61.6 ) (16.5 ) (11.5
) (111.5 ) 8.4 Gain on sale of equity method investment
(BWBC) 6.5 — — — — Other than temporary impairment of equity method
investment in TBWES (18.4 ) — — (18.2 ) — MTM gain/(loss) included
in benefit plans, net — 9.8 — — (1.1 ) Financial advisory services
included in SG&A (3.5 ) (2.3 ) (0.4 ) — — Restructuring
activities and spin-off transaction costs (6.9 ) (6.5 ) (3.8 ) (2.1
) (3.0 ) Acquisition and integration Costs — (0.2 ) (0.3 ) (0.9 )
(1.9 ) Goodwill and other impairments — — (86.9 ) — — Litigation
settlement gain — 0.8 — — — Depreciation & amortization (9.1 )
(9.2 ) (9.6 ) (9.9 ) (11.6 ) Interest expense, net (13.4 )
(10.6 ) (7.3 ) (6.2 ) (1.6 )
Loss before
income tax expense (106.3 ) (34.8 )
(119.7 ) (148.9 ) (10.8 )
Income tax expense (benefit) 14.1 72.5
(5.6 ) 2.0 (4.0 )
Net loss (120.3 )
(107.2 ) (114.1 ) (150.9 ) (6.8 ) Net income attributable to
noncontrolling interest (0.1 ) (0.2 ) (0.2 )
(0.1 ) (0.2 )
Net loss attributable to stockholders
$ (120.4 ) $ (107.5
) $ (114.3 ) $
(151.0 ) $ (7.0 ) (1)
Figures may not be clerically accurate due to rounding. (2)
EBITDA is not a calculation based on generally accepted accounting
principles (GAAP). The amounts included in Adjusted EBITDA however,
are derived from amounts included in the Consolidated Statements of
Earnings. EBITDA should not be considered an alternative to net
earnings (loss), operating profit (loss) or operating cash flows.
B&W has presented EBITDA as it is regularly used by many of our
investors and is presented as a convenience to them. Adjusted
EBITDA, as presented in this calculation however, differs from the
EBITDA calculation used to compute our leverage ratio and interest
coverage ratio as defined by our Amended Credit Agreement.
(3) Power adjusted EBITDA includes pension benefit, excluding MTM
adjustments of $6.8 million, $5.2 million, $5.0 million, $5.0
million and $5.0 million in the three months ended March 31, 2018,
December 30, 2017, September 30, 2017, June 30, 2017 and March 31,
2017, respectively.
2018 Outlook
Management has provided full year adjusted EBITDA guidance of
$20 million to $40 million. It is not possible for B&W to
identify the amount or significance of future adjustments
associated with potential mark to market adjustments to our pension
and other postretirement benefit plan liabilities or other
non-routine costs that we adjust in our presentation of adjusted
EBITDA. These items are dependent on future events and/or market
inputs that are not reasonably estimable at this time. Accordingly,
management is unable to reconcile without unreasonable effort its
forecasted range of adjusted EBITDA for the full year included in
the 2018 Guidance section of this overview to a comparable GAAP
range. However, items excluded from adjusted EBITDA guidance
include the historical adjustments previously disclosed such as
interest, income taxes, depreciation, amortization, restructuring
and spin costs, acquisition and integration costs, financial
advisory services, gains or losses on asset sales, including any
related expenses, goodwill and other asset impairments, litigation
settlements and mark-to-market adjustments of pension and other
postretirement benefit plan liabilities. B&W’s full-year
adjusted EBITDA guidance also excludes the following estimable
adjusting items: $49.2 million loss on extinguishment of second
lien debt, spin and restructuring costs of approximately $8.8
million, financial advisory services costs of approximately $9.4
million, the gain on the sale of BWBC (a former Chinese joint
venture) of $6.5 million, other than temporary impairment of equity
method investment in TBWES impairment of $18.4 million and
additional acquisition integration costs of less than $1
million.
Exhibit 3
Babcock & Wilcox Enterprises,
Inc.
Condensed Consolidated Statements of
Operations(1)
(In millions, except per share
amounts)
Three Months
Ended March 31,
2018 2017 Revenues $
311.4 $ 391.1 Costs and expenses: Cost
of operations 322.0 332.5 Selling, general and administrative
expenses 71.9 66.9 Restructuring activities and spin-off
transaction costs 6.9 3.0 Research and development costs 1.5
2.3 Total costs and expenses 402.3 404.7 Equity in
income and impairment of investees (11.8 ) 0.6
Operating loss (102.7 ) (13.0 )
Other income (expense): Interest income 0.2 0.1 Interest expense
(13.5 ) (1.8 ) Benefit plans, net 7.0 4.2 Other – net 2.8
(0.4 ) Total other income (expense) (3.5 ) 2.1
Loss before income tax expense (106.3 ) (10.9 ) Income tax
expense (benefit) 14.1 (4.0 )
Net loss (120.4
) (6.9 ) Net income attributable to noncontrolling interest (0.1 )
(0.2 )
Net loss attributable to shareholders $
(120.5 ) $ (7.1 )
Basic loss per share $ (2.73 ) $ (0.14 ) Diluted loss per
share $ (2.73 ) $ (0.14 ) Shares used in the computation of
earnings per share: Basic 44.2 48.7 Diluted 44.2 48.7 (1) Figures
may not be clerically accurate due to rounding.
Exhibit 4
Babcock & Wilcox Enterprises,
Inc.
Condensed Consolidated Balance
Sheets(1)
(In millions, except per share amount)
March 31, 2018 December 31, 2017 Cash
and cash equivalents $ 37.4 $ 56.7 Restricted cash and cash
equivalents 49.7 26.0 Accounts receivable – trade, net 279.3 291.7
Accounts receivable – other 73.9 79.0 Contracts in progress 161.7
161.2 Inventories 77.5 82.2 Other current assets 42.6
35.6 Total current assets 722.1 732.3 Net property, plant
and equipment 139.6 141.9 Goodwill 205.2 204.4 Deferred income
taxes 87.1 97.8 Investments in unconsolidated affiliates 8.4 43.3
Intangible assets 73.7 76.8 Other assets 30.4 25.8
Total assets $ 1,266.5
$ 1,322.2 Foreign revolving credit
facilities $ 4.3 $ 9.2 Second lien term loan facility 162.5 160.1
Accounts payable 226.9 225.2 Accrued employee benefits 32.1 30.2
Advance billings on contracts 163.3 181.1 Accrued warranty expense
40.0 39.0 Other accrued liabilities 105.0 99.5
Total current liabilities 734.2 744.3 U.S. revolving credit
facility 177.0 94.3 Pension and other accumulated postretirement
benefit liabilities 246.9 256.4 Other noncurrent liabilities 38.4
36.5
Total liabilities 1,196.5
1,131.5 Commitments and contingencies Stockholders' equity:
Common stock, par value $0.01 per share, authorized 200,000 shares;
issued and outstanding 44,381 and 44,065 shares at March 31, 2018
and December 31, 2017, respectively 0.5 0.5 Capital in excess of
par value 801.1 801.0 Treasury stock at cost, 5,819 and 5,681
shares at March 31, 2018 and December 31, 2017, respectively (105.5
) (104.8 ) Retained deficit (613.0 ) (492.2 ) Accumulated other
comprehensive loss (21.8 ) (22.4 ) Stockholders' equity
attributable to shareholders 61.3 182.1 Noncontrolling interest 8.7
8.6
Total stockholders' equity
70.0 190.7 Total liabilities
and stockholders' equity $ 1,266.5
$ 1,322.2 (1) Figures may not be clerically
accurate due to rounding.
Exhibit 5
Babcock & Wilcox Enterprises,
Inc.
Condensed Consolidated Statements of
Cash Flows(1)
(In millions)
Three month ended March 31, 2018
2017 Cash flows from operating activities: Net income
(loss) $ (120.3 ) $ (6.8 ) Non-cash items included in net income
(loss): Depreciation and amortization of long-lived assets 9.1 11.6
Amortization of debt issuance cost and debt discount 5.0 0.3 Income
from equity method investees (6.6 ) (0.6 ) Other than temporary
impairment of equity method investment in TBWES 18.4 — Losses on
asset disposals and impairments 0.5 0.7 Provision for (benefit
from) deferred income taxes 1.1 (1.0 ) Mark to market losses
(gains) and prior service cost amortization for pension and
postretirement plans (0.4 ) 0.2
Stock-based compensation, net of
associated income taxes
0.2 4.2 Changes in assets and liabilities: Accounts receivable 17.3
(5.8 ) Contracts in progress and advance billings on contracts
(18.3 ) (45.1 ) Inventories 4.3 1.6 Income taxes 10.1 3.3 Accounts
payable (3.0 ) (0.9 ) Accrued and other current liabilities 3.1
(33.7 ) Pension liabilities, accrued postretirement and employee
benefits (9.6 ) (2.5 ) Other, net 4.6 (0.3 )
Net
cash from operating activities (84.8 ) (74.8 ) Cash
flows from investing activities: Purchase of property plant and
equipment (3.2 ) (4.5 ) Acquisition of business, net of cash
acquired — (52.5 ) Proceeds from sale of business 5.1 — Proceeds
from sale of equity method investment in a joint venture 21.1 —
Purchases of available-for-sale securities (9.6 ) (13.8 ) Sales and
maturities of available-for-sale securities 9.5 15.7 Other, net 0.2
0.1
Net cash from investing activities
23.1 (55.0 ) (1) Figures may not be clerically accurate due to
rounding.
Exhibit 5
Babcock & Wilcox Enterprises,
Inc.
Condensed Consolidated Statements of
Cash Flows(1)
(In millions)
Year Ended December 31, 2017
2016 Cash flows from financing activities: Borrowings
under our U.S. revolving credit facility 157.1 255.4 Repayments of
our U.S. revolving credit facility (74.4 ) (175.2 ) Borrowings
under our foreign revolving credit facilities — 0.2 Repayments of
our foreign revolving credit facilities (5.0 ) (2.2 ) Shares of our
common stock returned to treasury stock (0.7 ) (0.8 ) Debt issuance
costs (5.4 ) — Other (0.1 ) (1.3 )
Net cash from
financing activities 71.5 76.1 Effects of
exchange rate changes on cash (5.2 ) 1.3
Net
increase (decrease) in cash, cash equivalents and restricted
cash 4.4 (52.4 ) Cash, cash equivalents and restricted cash,
beginning of period 82.6 123.7
Cash, cash
equivalents and restricted cash, end of period $ 87.1
$ 71.2 (1) Figures may not be clerically accurate due
to rounding.
Exhibit 6
Babcock & Wilcox Enterprises,
Inc.
Segment Information(1)
(In millions)
Three Months Ended SEGMENT RESULTS March
31, 2018 2017 REVENUES: Power $
159.1 $ 196.3 Renewable 60.0 105.5 Industrial 94.9 92.2
Eliminations (2.7 ) (2.9 ) $ 311.4 $ 391.1
GROSS PROFIT: Power $ 30.9 $ 37.7 Renewable (50.4 )
10.6 Industrial 11.3 15.3 Intangible asset amortization included in
cost of operations (2.4 ) (5.0 ) ADJUSTED EBITDA: Power $
11.2 $ 17.4 Renewable (61.7 ) 0.9 Industrial (3.4 ) 0.5 Corporate
& Other (7.7 ) (10.4 ) $ (61.6 ) $ 8.4
AMORTIZATION EXPENSE: Power $ 0.2 $ 0.3 Renewable 0.2 0.2
Industrial 3.1 5.5 $ 3.5 $ 6.0
DEPRECIATION EXPENSE: Power $ 3.1 $ 3.3 Renewable 1.0
0.9 Industrial 1.4 1.3 $ 5.6 $
5.6 BOOKINGS: Power $ 271 $ 176 Renewable 46 36
Industrial 83 105 Other/Eliminations (1 ) — $ 399
$ 317 BACKLOG: Power $ 565 $ 599
Renewable 994 1,171 Industrial 245 252 Other/Eliminations (41 )
(1 ) $ 1,763 $ 2,021 (1) Figures may
not be clerically accurate due to rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180508006636/en/
Babcock & WilcoxInvestor Contact:Chase Jacobson,
704-625-4944Vice President, Investor
Relationsinvestors@babcock.comorMedia
Contact:Ryan Cornell, 330-860-1345Public
Relationsrscornell@babcock.com
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