- Generates 2Q21 earnings of $0.62 per share on consolidated
revenue of $505 million
- Reiterates 2021 guidance: non-GAAP earnings range of $3.05 to
$3.20 per share
- Continues progress on Technetium-99m commercialization
- Secures award for next phase of Nuclear Thermal Propulsion
Program with NASA
- Sets date for Investor Day in New York City on November 16,
2021
BWX Technologies, Inc. (NYSE: BWXT) ("BWXT", "we", "us" or the
"Company") reported second quarter 2021 revenue of $505 million,
about even compared with $505 million in the second quarter 2020.
Net income for the second quarter 2021 was $59.3 million, or $0.62
per diluted share, compared with GAAP net income of $64.3 million,
or $0.67 per diluted share and non-GAAP net income of $67.7
million, or $0.71 per diluted share, in the prior-year period. A
reconciliation of non-GAAP results is detailed in Exhibit 1.
“BWXT delivered on another solid quarter as we prepared for a
strong second half of the year,” said Rex D. Geveden, president and
chief executive officer. "We are where we anticipated to be at the
midpoint of 2021 and have line-of-sight on the remaining work to
accomplish in the year, resulting in us reiterating financial
guidance across the board.”
“The Company’s execution is exemplified by the strength we see
across the core businesses including the Nuclear Operations Group’s
stability as it ramps up on the Columbia program, consistent
deliveries of large nuclear power components to enable Canadian
clean energy, and the strong proposals submitted at important DOE
nuclear sites that we anticipate will lead to wins later this year.
At BWXT’s investor day in November, we are excited to share more
insight into the strategy and trends across the core businesses
while also highlighting emerging opportunities in nuclear medicine,
advanced reactors and nuclear fuel that further support the
Company’s medium and long-term growth outlook.” said Geveden.
Segment Results
Nuclear Operations Group (NOG) segment revenue was $381 million
for the second quarter 2021, a 7% decrease from the prior-year
period, driven by higher production volume which was more than
offset by lower long-lead material production. NOG operating income
was $69.2 million in the second quarter 2021, a 20% decrease
compared with the prior-year period driven by lower revenue and
fewer favorable contract adjustments due to timing of certain
milestones, resulting in second quarter 2021 segment operating
margin of 18.1%.
Nuclear Power Group (NPG) segment revenue was $102 million for
the second quarter 2021, a 50% increase from the prior-year period
primarily due to higher volume of field services, higher fuel and
fuel handling activity, and higher volume of medical isotope
demand. NPG operating income was $10.8 million for the second
quarter 2021, a significant increase compared with the prior-year
period on both a GAAP and non-GAAP basis, driven primarily from
higher revenue in commercial nuclear power and BWXT medical, and
incremental funds received under the Canadian COVID-19 Economic
Response Plan to offset incurred expenses related to the pandemic.
Second quarter 2021 segment operating margin was 10.6%.
Nuclear Services Group (NSG) segment operating income was $5.8
million for the second quarter 2021, up 40% compared with $4.1
million of GAAP operating income and up 13% compared with $5.1
million of non-GAAP operating income in the second quarter 2020
driven by better project performance partially offset by the
absence of contracts that completed in 2020.
Cash and Capital Returned to Shareholders
The Company generated $59.9 million of cash from operating
activities in the second quarter 2021, compared with $162 million
in the second quarter 2020. As of June 30, 2021, the Company’s cash
balance, net of restricted cash, was $191 million.
On July 30, 2021, the BWXT Board of Directors declared a
quarterly cash dividend of $0.21 per common share. The dividend
will be payable on September 8, 2021, to shareholders of record on
August 19, 2021.
During the second quarter 2021, the Company returned $20.0
million of cash to shareholders in dividends, resulting in a total
of $60.3 million of cash returned to shareholders year-to-date,
including $20.0 million in share repurchases and $40.3 million in
dividends.
2021 Guidance
BWXT reiterated all components of 2021 guidance:
- Non-GAAP EPS range of $3.05 – $3.20 (excludes pension and
post-retirement benefits mark-to-market)
- Consolidated revenue growth of low-single digits vs. 2020
results
- NOG revenue up slightly
- NPG revenue growth of ~6%
- Non-GAAP operating income and margin
- NOG operating margin of “high teens” with upside from CAS
pension reimbursement
- NPG operating margin of ~13%
- NSG operating income range of $25-30 million
- Capital expenditures of ~$250 million
The Company does not provide GAAP guidance because it is unable
to reliably forecast most of the items that are excluded from GAAP
to calculate non-GAAP results. These items could cause GAAP results
to differ materially from non-GAAP results. See reconciliation of
non-GAAP results in Exhibit 1 for additional information.
Conference Call to Discuss Second Quarter 2021
Results
Date:
Monday, August 2, 2021, at 5:00 p.m.
EDT
Live Webcast:
Investor Relations section of website at
www.bwxt.com
Full Earnings Release Available on BWXT Website
A full version of this earnings release is available on our
Investor Relations website at
http://investors.bwxt.com/q22021-release
BWXT may use its website (www.bwxt.com) as a channel of
distribution of material Company information. Financial and other
important information regarding BWXT is routinely accessible
through and posted on our website. In addition, you may elect to
automatically receive e-mail alerts and other information about
BWXT by enrolling through the “Email Alerts” section of our website
at http://investors.bwxt.com.
Forward-Looking Statements
BWXT cautions that this release contains forward-looking
statements, including, without limitation, statements relating to
backlog, to the extent they may be viewed as an indicator of future
revenues; our plans and expectations for the NOG, NPG and NSG
segments including the expectations, timing and revenue of our
strategic initiatives, such as medical radioisotopes; disruptions
to our supply chain and/or operations, changes in government
regulations and other factors, including any such impacts of, or
actions in response to the COVID-19 health crisis; and our
expectations for 2021 and beyond. 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 execute contracts in backlog; the lack of, or adverse
changes in, federal appropriations to government programs in which
we participate; the demand for and competitiveness of nuclear
products and services; capital priorities of power generating
utilities; the impact of COVID-19 on our employees, contractors,
suppliers, customers and other partners and their business
activities; the extent to which the length and severity of the
COVID-19 health crisis exceeds our current expectations; the
potential recurrence of subsequent waves or strains of COVID-19 or
similar diseases; adverse changes in the industries in which we
operate and delays, changes or termination of contracts in backlog.
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 BWXT’s
filings with the Securities and Exchange Commission, including our
annual report on Form 10-K for the year ended December 31, 2020 and
subsequent quarterly reports on Form 10-Q. BWXT 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 BWXT
At BWX Technologies, Inc. (NYSE: BWXT), we are People Strong,
Innovation Driven. Headquartered in Lynchburg, Va., BWXT provides
safe and effective nuclear solutions for global security, clean
energy, environmental remediation, nuclear medicine and space
exploration. With approximately 6,700 employees, BWXT has 12 major
operating sites in the U.S. and Canada. In addition, BWXT joint
ventures provide management and operations at more than a dozen
U.S. Department of Energy and NASA facilities. Follow us on Twitter
at @BWXT and learn more at www.bwxt.com
EXHIBIT 1
BWX TECHNOLOGIES, INC.
RECONCILIATION OF NON-GAAP
OPERATING INCOME AND EARNINGS PER SHARE(1)(2)(3)
Three Months Ended June 30,
2020
GAAP
Restructuring Costs
Costs Associated with Sale of
Business
Debt Issuance Costs
Non-GAAP
Operating Income
$
82.4
$
1.3
$
2.7
$
—
$
86.4
Other Income (Expense)
1.6
—
—
0.5
2.2
Provision for Income Taxes
(19.7
)
(0.3
)
(0.6
)
(0.1
)
(20.8
)
Net Income
64.4
0.9
2.1
0.4
67.8
Net Income Attributable to Noncontrolling
Interest
(0.1
)
—
—
—
(0.1
)
Net Income Attributable to BWXT
$
64.3
$
0.9
$
2.1
$
0.4
$
67.7
Diluted Shares Outstanding
95.6
95.6
Diluted Earnings per Common Share
$
0.67
$
0.01
$
0.02
$
0.00
$
0.71
Effective Tax Rate
23.4
%
23.4
%
NPG Operating Income
$
1.1
$
1.3
$
—
$
—
$
2.4
NSG Operating Income
$
4.1
$
—
$
1.0
$
—
$
5.1
(1)
Tables may not foot due to rounding.
(2)
BWXT is providing non-GAAP information
regarding certain of its historical results and guidance on future
earnings per share 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. BWXT believes the
non-GAAP measures provide meaningful insight and transparency 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 BWXT's
ongoing operations.
(3)
BWXT has not included a reconciliation of
provided non-GAAP guidance to the comparable GAAP measures due to
the difficulty of estimating any mark-to-market adjustments for
pension and post-retirement benefits, which are determined at the
end of the year.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210802005661/en/
Investor Contact: Mark Kratz Vice President, Investor
Relations 980-365-4300 Investors@bwxt.com
Media Contact: Jud Simmons Director, Media and Public
Relations 434-522-6462 hjsimmons@bwxt.com
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