- Company exceeded its Revenue and EBITDA expectations for the
second quarter of 2023
- EBITDA growth strong despite significant investments in new
renewable energy technologies
- BrightLoopTM hydrogen generation technology positioned for
initial commercial operations commencing in the second half of 2024
with a potential of up to $1 billion in bookings by 2028
- Including BrightLoop, Pipeline expanded to over $9 billion
in identified global project opportunities, from $8 billion
previously
Q2 2023 Highlights and Outlook:
– Revenues of $305.2 million, a 38% improvement compared to the
second quarter of 2022 – Net loss of $5.0 million, compared to a
net loss of $3.0 million ($10.4 million loss when excluding a
noncash pension benefit of $7.4 million) in the second quarter of
2022 – Loss per share of $0.10, compared to a loss per share of
$0.07 ($0.11 loss per share when excluding a noncash pension
benefit of $7.4 million) in the second quarter of 2022 –
Consolidated adjusted EBITDA of $21.9 million, an improvement
compared to $15.9 million in the second quarter of 2022 when
excluding a non-recurring $7.0 million gain on sale of an asset –
Ending backlog of $566.5 million; projecting backlog growth to a
range of $850.0 million to $1.0 billion by year-end 2023 –
Reiterates Full Year 2023 Adjusted EBITDA target of $100.0 million
to $120.0 million
Babcock & Wilcox Enterprises, Inc. ("B&W" or the
"Company") (NYSE: BW) announced results for the second quarter of
2023.
"Our strong second quarter results were highlighted by
consolidated revenue and adjusted EBITDA that exceeded Company
expectations and an underlying improvement in revenue, adjusted
EBITDA and net loss on a year-over-year basis. This reflects the
continued progress against our strategic growth initiatives and
positions us to achieve our full-year adjusted EBITDA targets,”
said Kenneth Young, B&W’s Chairman and Chief Executive Officer.
“We are making significant investments in renewable energy
technologies to support future growth. We continue to convert our
global pipeline into project opportunities and demonstrated another
quarter of top-line improvement on a year-over-year and sequential
basis. Our growth remains broad based as we posted a second
consecutive quarter of double-digit revenue expansion on a
year-over-year basis across all segments, highlighted by our
Thermal and Renewable segments increasing 36% and 31%
respectively."
“As we look forward to the remainder of the year, our outlook
for new booking opportunities remains robust. We expect our backlog
will experience significant growth, projected to range between
$850.0 million to $1.0 billion through specific opportunities
across all segments,” Young added. “Interest across our
ClimateBrightTM decarbonization platform continues to develop as
highlighted in the recent contract award from NorthStar Clean
Energy, which is the first phase of a large-scale project to use
our SolveBrightTM carbon dioxide capture process to convert a
coal-fired power plant to biomass fuel. We are also excited about
the continued progress to commercialize our BrightLoop hydrogen
generation technology and pleased to report several key
developments associated with the previously announced projects in
Louisiana and Wyoming. To accelerate and ensure successful
execution of our initial commercial projects, we have announced a
dedicated BrightLoop organization, led by our Chief Strategy and
Technology Officer Brandy Johnson. For our upcoming small- and
medium-scale projects, we’ve outlined projected development plans
with a timeline for initial hydrogen production starting in late
2024. We look forward to continuing to expand our BrightLoop
commercial activities in the years ahead, with targeted bookings of
approximately $1.0 billion by 2028, which represents less than 1%
of the estimated global market for hydrogen production.”
“The traction we’ve experienced in customer adoption for our
clean energy solutions follows the global demand we recognize for
decarbonization technologies during this clean energy transition
period. In addition, we continue to play a vital role in supporting
global energy security and efficiency through our Thermal segment
as we see continued global expansion, gas conversions, and strong
parts and services opportunities.”
Q2 2023 Financial Summary
Consolidated revenues in the second quarter of 2023 were $305.2
million, a 38% improvement compared to the second quarter of 2022,
primarily attributable to higher volumes in our Renewable segment
due to B&W Renewable Service and our Solar-based business,
higher overall volume in our Environmental segment and increasing
Thermal segment volume due to a higher level of construction and
parts activity. Net loss in the second quarter of 2023 was $5.0
million, compared to a net loss of $3.0 million in the second
quarter of 2022, which, when adjusted for pension gains in the
second quarter of 2022, represents a significant improvement in net
income. Loss per share in the second quarter of 2023 was $0.10
compared to a loss per share of $0.07 in the second quarter of
2022. GAAP operating income in the second quarter of 2023 was $7.0
million compared to operating income of $3.7 million in the second
quarter of 2022. Adjusted EBITDA was $21.9 million compared to
$22.9 million in the second quarter of 2022, which, when adjusted
for a one-time sale of an asset in the second quarter of 2022,
represents significant improvement in adjusted EBITDA from $15.9
million to $21.9 million. Bookings in the second quarter of 2023
were $191 million. Ending backlog was $567 million, which is a 6%
decrease compared to backlog at the end of the second quarter of
2022. All amounts referred to in this release are on a continuing
operations basis, unless otherwise noted. Reconciliations of net
income, the most directly comparable GAAP measure, to adjusted
EBITDA for the Company's segments, are provided in the exhibits to
this release.
Babcock & Wilcox Renewable segment revenues were
$98.9 million for the second quarter of 2023, an increase of 31%
compared to $75.2 million in the second quarter of 2022. The
increase in revenue is primarily due to higher volume associated
with our Renewable Service and Solar businesses. Adjusted EBITDA in
the second quarter of 2023 was $0.5 million compared to $4.2
million when excluding a non-recurring $7.0 million gain from the
sale related to development rights of a future solar project in the
second quarter of 2022.
Babcock & Wilcox Environmental segment revenues were
$48.7 million in the second quarter of 2023, an increase of 54%
compared to $31.6 million in the second quarter of 2022. The
increase is primarily driven by higher overall volume of dry
cooling technology projects across the Environmental segment.
Adjusted EBITDA in the second quarter of 2023 was $3.4 million,
compared to $0.6 million in the second quarter of 2022, primarily
driven by higher revenue volume described above.
Babcock & Wilcox Thermal segment revenues were $158.0
million in the second quarter of 2023, an increase of 36% compared
to $116.3 million in the second quarter of 2022. The revenue
increase is attributable to a higher level of volume in our
construction projects and package boiler businesses. Adjusted
EBITDA in the second quarter of 2023 was $24.4 million, an increase
of 49% compared to $16.4 million in the second quarter of 2022,
primarily driven by higher revenue volume described above as well
as project performance.
Liquidity and Balance Sheet
At June 30, 2023, the Company had total debt of $358.2 million
and a cash, cash equivalents and restricted cash balance of $83.9
million.
Impacts of Market Conditions
The Company has experienced and may continue to experience,
supply chain disruptions driven by the lingering impacts of the
pandemic in certain areas that the Company operates, as well as the
ongoing war in Ukraine. The Company has also observed significant
delays and disruptions of its service and material providers and
negative impacts to pricing of certain products. These delays and
disruptions have had, and could continue to have, an adverse impact
on the Company’s ability to meet customers’ demands and schedules.
The Company is continuing to actively monitor the impact of these
market conditions on current and future periods and actively manage
costs and our liquidity position to provide additional flexibility
while still supplying its customers and their specific needs. The
duration and scope of these conditions cannot be predicted, and
therefore, any anticipated negative financial impact to the
Company’s operating results cannot be reasonably estimated.
Earnings Call Information
B&W plans to host a conference call and webcast on Tuesday,
August 8, 2023 at 5 p.m. ET to discuss the Company’s second 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 U.S. is (833)
470-1428; the dial-in number for participants in Canada is (833)
950-0062; the dial-in number for participants in all other
locations is (929) 526-1599. The conference ID for all participants
is 961977. 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. 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; 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 Solar Energy, Inc. ("Babcock
& Wilcox Solar", "B&W Solar"), formerly known as Fosler
Construction Company Inc. and/or Fosler, Babcock & Wilcox
Renewable Service A/S, formerly known as VODA A/S ("VODA"), Fossil
Power Systems, Inc, Optimus Industries, LLC and certain assets of
Hamon Research-Cottrell, Inc; our recognition of any asset
impairments as a result of any decline in the value of our assets
or our efforts to dispose of any assets in the future; our ability
to obtain and maintain sufficient financing to provide liquidity to
meet our business objectives, surety bonds, letters of credit and
similar financing; our ability to comply with the requirements of,
and to service the indebtedness under, our debt facility
agreements; our ability to pay dividends on our 7.75% Series A
Cumulative Perpetual Preferred Stock; our ability to make interest
payments on our 8.125% senior notes due 2026 and our 6.50% notes
due 2026; the highly competitive nature of our businesses and our
ability to win work, including identified project opportunities in
our 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; 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,
partners or suppliers to perform their obligations on time and as
specified; delays initiated by our customers; our ability to
successfully resolve claims by vendors for goods and services
provided and claims by customers for items under warranty; our
ability to realize anticipated savings and operational benefits
from our restructuring plans, and other cost savings initiatives;
our ability to successfully address productivity and schedule
issues in our B&W Renewable, B&W Environmental and B&W
Thermal segments; our ability to successfully partner with third
parties to win and execute contracts within our B&W
Environmental, B&W Renewable and B&W Thermal segments;
changes in our effective tax rate and tax positions, including any
limitation on our ability to use our net operating loss
carryforwards and other tax assets; 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; difficulties we may encounter
in obtaining regulatory or other necessary permits or approvals;
changes in actuarial assumptions and market fluctuations that
affect our net pension liabilities and income; our ability to
successfully compete with current and future competitors; 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 impact of the ongoing conflict in Ukraine;
the impact of pandemic or other similar global health crises, and
the other factors specified and set forth under "Risk Factors" in
our periodic reports filed with the Securities and Exchange
Commission, including our most recent annual report on Form 10-K
filed on March 16, 2023.
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 Akron, Ohio, Babcock & Wilcox Enterprises,
Inc. is a leader in energy and environmental products and services
for power and industrial markets worldwide. Follow us on LinkedIn
and learn more at babcock.com.
Exhibit 1
Babcock & Wilcox Enterprises,
Inc.
Condensed Consolidated Statements of
Operations(1)
(In millions, except per share
amounts)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Revenues
$
305.2
$
221.0
$
562.4
$
425.1
Costs and expenses:
Cost of operations
244.2
173.3
448.0
336.4
Selling, general and administrative
expenses
52.1
45.0
104.0
88.0
Advisory fees and settlement costs
0.6
5.1
(1.9
)
9.1
Restructuring activities
1.0
(0.1
)
1.4
0.0
Research and development costs
0.9
1.1
2.2
1.9
Loss on asset disposals, net
(0.6
)
(7.1
)
0.3
(7.1
)
Total costs and expenses
298.2
217.4
554.1
428.2
Operating income (loss)
7.0
3.7
8.3
(3.1
)
Other (expense) income:
Interest expense
(11.2
)
(10.7
)
(23.8
)
(21.9
)
Interest income
0.5
0.1
0.6
0.2
Benefit plans, net
(0.1
)
7.4
(0.2
)
14.9
Foreign exchange
1.2
(4.3
)
0.7
(1.2
)
Other expense - net
(0.4
)
(0.6
)
(0.7
)
(0.6
)
Total other expense
(10.1
)
(8.0
)
(23.5
)
(8.7
)
Loss before income tax expense
(3.2
)
(4.3
)
(15.1
)
(11.8
)
Income tax expense (benefit)
1.9
(1.4
)
2.4
(0.1
)
Net loss
(5.0
)
(3.0
)
(17.5
)
(11.7
)
Net (income) loss attributable to
non-controlling interest
(0.1
)
0.4
(0.1
)
0.8
Net loss attributable to
stockholders
(5.1
)
(2.6
)
(17.6
)
(10.8
)
Less: Dividend on Series A preferred
stock
3.7
3.7
7.4
7.4
Net loss attributable to stockholders
of common stock
$
(8.8
)
$
(6.3
)
$
(25.0
)
$
(18.3
)
Basic loss per share
$
(0.10
)
$
(0.07
)
$
(0.28
)
$
(0.21
)
Diluted loss per share
$
(0.10
)
$
(0.07
)
$
(0.28
)
$
(0.21
)
Shares used in the computation of loss per
share:
Basic
88.8
88.0
88.8
88.0
Diluted
88.8
88.0
88.8
88.0
(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)
June 30, 2023
December 31, 2022
Cash and cash equivalents
$
55.0
$
76.7
Current restricted cash and cash
equivalents
18.3
15.3
Accounts receivable – trade, net
176.3
162.5
Accounts receivable – other
47.8
38.5
Contracts in progress
175.5
134.9
Inventories, net
118.6
102.6
Other current assets
26.6
27.0
Total current assets
618.2
557.6
Net property, plant and equipment, and
finance lease
83.6
86.4
Goodwill
158.2
157.0
Intangible assets, net
56.8
60.3
Right-of-use assets
28.1
29.4
Long-term restricted cash
10.5
21.4
Other assets
31.5
30.6
Total assets
$
986.9
$
942.7
Accounts payable
$
180.4
$
139.2
Accrued employee benefits
12.8
12.5
Advance billings on contracts
140.4
133.4
Accrued warranty expense
10.3
9.6
Financing lease liabilities
1.3
1.2
Operating lease liabilities
3.8
3.6
Other accrued liabilities
72.3
68.2
Loans payable
4.4
4.3
Total current liabilities
425.6
372.0
Senior notes
336.6
335.5
Loans payable, net of current portion
17.2
13.2
Pension and other postretirement benefit
liabilities
135.1
136.2
Finance lease liabilities, net of current
portion
26.9
27.5
Operating lease liabilities, net of
current portion
25.7
26.6
Deferred tax liability
10.4
10.1
Other non-current liabilities
22.5
23.8
Total liabilities
999.9
944.7
Commitments and contingencies
Stockholders' deficit:
Preferred stock, par value $0.01 per
share, authorized shares of 20,000; issued and outstanding shares
of 7,669 at both June 30, 2023 and December 31, 2022
0.1
0.1
Common stock, par value $0.01 per share,
authorized shares of 500,000; issued and outstanding shares of
88,828 and 88,700 at June 30, 2023 and December 31, 2022,
respectively
5.1
5.1
Capital in excess of par value
1,543.2
1,537.6
Treasury stock at cost, 1,880 and 1,868
shares at June 30, 2023 and December 31, 2022, respectively
(113.8
)
(113.8
)
Accumulated deficit
(1,383.9
)
(1,358.9
)
Accumulated other comprehensive loss
(64.2
)
(72.8
)
Stockholders' deficit attributable to
shareholders
(13.5
)
(2.6
)
Non-controlling interest
0.5
0.5
Total stockholders' deficit
(13.0
)
(2.1
)
Total liabilities and stockholders'
deficit
$
986.9
$
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)
Six Months Ended June
30,
2023
2022
Cash flows from operating activities:
Net loss
$
(17.5
)
$
(11.7
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization of
long-lived assets
11.3
11.9
Amortization of deferred financing costs
and debt discount
2.8
2.3
Amortization of guaranty fee
0.5
0.4
Non-cash operating lease expense
3.3
3.9
Gain on sale of business
—
(7.0
)
Loss on asset disposals
0.3
—
Benefit from deferred income taxes
(1.7
)
(3.1
)
Prior service cost amortization for
pension and postretirement plans
0.4
0.4
Stock-based compensation
5.6
3.1
Foreign exchange
(0.7
)
1.2
Changes in operating assets and
liabilities:
Accounts receivable - trade, net and
other
(10.5
)
(13.8
)
Contracts in progress
(40.8
)
(31.3
)
Advance billings on contracts
6.4
24.6
Inventories, net
(15.7
)
(13.7
)
Income taxes
(4.3
)
(2.0
)
Accounts payable
40.5
23.7
Accrued and other current liabilities
5.2
(17.9
)
Accrued contract loss
(3.2
)
1.5
Pension liabilities, accrued
postretirement benefits and employee benefits
(4.7
)
(17.5
)
Other, net
0.6
(18.6
)
Net cash used in operating
activities:
(22.3
)
(63.6
)
Cash flows from investing
activities:
Purchase of property, plant and
equipment
(5.6
)
(2.7
)
Acquisition of business, net of cash
acquired
—
(64.9
)
Purchases of available-for-sale
securities
(3.9
)
(3.2
)
Sales and maturities of available-for-sale
securities
5.4
5.0
Other, net
—
0.2
Net cash used in investing
activities
(4.2
)
(65.6
)
Cash flows from financing
activities:
Issuance of senior notes
—
2.4
Borrowings on loan payable
16.2
1.3
Repayments on loan payable
(12.0
)
(13.4
)
Finance lease payments
(0.6
)
—
Payment of preferred stock dividends
(7.4
)
(7.4
)
Shares of common stock returned to
treasury stock
(0.1
)
(0.2
)
Other, net
(0.3
)
1.6
Net cash used in financing
activities
(4.2
)
(15.6
)
Effects of exchange rate changes on
cash
1.1
(1.7
)
Net decrease in cash, cash equivalents
and restricted cash
(29.6
)
(146.5
)
Cash, cash equivalents and restricted cash
at beginning of period
113.5
226.7
Cash, cash equivalents and restricted cash
at end of period
$
83.9
$
80.2
(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 June
30,
Six Months Ended June
30,
2023
2022
2023
2022
REVENUES:
Babcock & Wilcox Renewable
$
98.9
$
75.2
$
199.0
$
143.2
Babcock & Wilcox Environmental
48.7
31.6
88.1
66.6
Babcock & Wilcox Thermal
158.0
116.3
277.2
218.5
Other
(0.4
)
(2.1
)
(1.9
)
(3.2
)
$
305.2
$
221.0
$
562.4
$
425.1
ADJUSTED EBITDA:
Babcock & Wilcox Renewable
$
0.5
$
11.2
$
5.4
$
13.5
Babcock & Wilcox Environmental
3.4
0.6
5.3
2.0
Babcock & Wilcox Thermal
24.4
16.4
38.1
30.5
Corporate
(5.5
)
(4.2
)
(10.6
)
(8.6
)
Research and development costs
(0.9
)
(1.0
)
(2.2
)
(1.6
)
$
21.9
$
22.9
$
36.1
$
35.8
AMORTIZATION EXPENSE:
Babcock & Wilcox Renewable
$
1.3
$
0.8
$
1.9
$
2.9
Babcock & Wilcox Environmental
0.8
0.7
1.5
1.4
Babcock & Wilcox Thermal
1.2
1.6
2.3
2.8
$
3.2
$
3.1
$
5.7
$
7.1
DEPRECIATION EXPENSE:
Babcock & Wilcox Renewable
$
0.7
$
0.5
$
1.7
$
1.1
Babcock & Wilcox Environmental
0.2
0.2
0.4
0.4
Babcock & Wilcox Thermal
1.8
1.9
3.7
3.3
$
2.7
$
2.6
$
5.8
$
4.8
As of June 30,
BACKLOG:
2023
2022
Babcock & Wilcox Renewable (2)
$
216
$
282
Babcock & Wilcox Environmental
162
127
Babcock & Wilcox Thermal
191
193
Other/Eliminations
(3
)
(1
)
$
567
$
601
(1) Figures may not be clerically accurate
due to rounding.
(2) B&W Renewable backlog has been
adjusted downward $53 million and $129.7 million at June 30, 2023
and June 30, 2022 respectively to remove O&M contracts that are
recognized as disposed.
Exhibit 5
Babcock & Wilcox Enterprises,
Inc.
Reconciliation of Adjusted
EBITDA
(In millions)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Net loss
$
(5.0
)
$
(3.0
)
$
(17.5
)
$
(11.7
)
Interest expense
12.5
12.1
26.9
24.4
Income tax expense
1.9
(1.4
)
2.4
(0.1
)
Depreciation & amortization
6.0
5.7
11.3
11.9
EBITDA
15.3
13.5
23.1
24.5
Benefit plans, net
0.1
(7.4
)
0.2
(14.9
)
Loss on sales, net
(0.6
)
(0.1
)
0.3
(0.1
)
Stock compensation
2.3
0.5
5.5
1.8
Restructuring activities and business
services transition costs
1.0
1.8
2.0
4.4
Settlement and related legal costs
—
3.9
(3.0
)
6.4
Advisory fees for settlement costs and
liquidity planning
—
0.9
0.5
1.9
Acquisition pursuit and related costs
0.1
1.4
0.2
2.2
Product development (1)
1.0
1.0
2.4
1.8
Foreign exchange
(1.2
)
4.3
(0.7
)
1.2
Financial advisory services
—
0.4
—
0.7
Contract disposal (2)
2.7
2.3
4.1
3.2
Contract step-up purchase price
adjustment
—
—
—
1.7
Other - net
1.0
0.7
1.3
0.8
Adjusted EBITDA(3)
$
21.9
$
22.9
$
36.1
$
35.8
(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/20230808129637/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
Babcock and Wilcox Enter... (NYSE:BW)
Historical Stock Chart
From Sep 2024 to Oct 2024
Babcock and Wilcox Enter... (NYSE:BW)
Historical Stock Chart
From Oct 2023 to Oct 2024