- Generates 4Q21 EPS of $1.26 (GAAP), $0.95 (non-GAAP); up 83%
and 28%, respectively vs. 4Q20
- Reports 2021 EPS of $3.24 (GAAP), $3.06 (non-GAAP); up 11% and
1%, respectively vs. 2020
- Produces 4Q21 adjusted EBITDA of $123 million, full-year 2021
adjusted EBITDA of $418 million
- Announces consolidation of three reporting business segments
into two: Government Operations and Commercial Operations
- Reiterates 2022 non-GAAP EPS outlook and provides additional
2022 guidance including:
- Consolidated revenue and adjusted EBITDA growth of 3% to
4%
- Non-GAAP EPS range of $3.05 to $3.25
- Cash from operations of $260 million to $290 million
BWX Technologies, Inc. (NYSE: BWXT) ("BWXT", "we", "us" or the
"Company") reported fourth quarter 2021 revenue of $592 million, a
6% increase compared with $557 million in the fourth quarter 2020.
GAAP net income for the fourth quarter 2021 was $117 million, or
$1.26 per diluted share, compared with GAAP net income of $65.7
million, or $0.69 per diluted share, in the prior-year period.
Non-GAAP net income for the fourth quarter 2021 was $88.2 million,
or $0.95 per diluted share, compared with non-GAAP net income of
$70.9 million, or $0.74 per diluted share, in the prior-year
period.
Full-year 2021 revenue was over $2.1 billion, a slight increase
compared with 2020 revenue. GAAP net income in 2021 was $306
million, or $3.24 per diluted share, compared with GAAP net income
of $279 million, or $2.91 per diluted share, in 2020. Non-GAAP net
income in 2021 was $289 million, or $3.06 per diluted share,
compared with non-GAAP net income of $290 million, or $3.03 per
diluted share, in 2020. A reconciliation of non-GAAP results is
detailed in Exhibit 1.
“Despite business challenges, including persistence of the
pandemic, we delivered another year of solid earnings and set the
table for further expansion of the business,” said Rex D. Geveden,
president and chief executive officer. “Although we reported at the
lower end of our initial range, 2021 was marked by several key
milestone achievements. BWXT secured a new sole-source nuclear
materials contract, won and began transition of a new flagship
contract for the Department of Energy nuclear restoration project
at Savannah River, strengthened our beachhead in therapeutic
radiopharmaceuticals, and continued to mature new technology and
designs for microreactor programs.”
“We expect to build on these successes in 2022 to deliver the
medium-term financial targets set forth at our recent Investor Day.
Additionally, we are announcing a new organization of our reporting
segments to reflect the way we are running the business, which we
expect to result in meaningful strategic and cost synergies."
"We remain focused on driving our multi-faceted growth strategy
by using nuclear technology to solve some of our customers' most
challenging problems through two distinct customer-based reporting
segments: Government Operations and Commercial Operations,” said
Geveden.
Segment Results
Nuclear Operations Group (NOG) segment revenue was $453 million
for the fourth quarter 2021, a 6% increase from the prior-year
period, driven by higher long-lead material production and labor
volume. Full-year 2021 segment revenue was over $1.6 billion, a 1%
decrease compared with 2020 revenue, as a result of higher labor
volume and higher naval nuclear fuel and uranium downblending,
which was more than offset by lower long-lead material
production.
NOG operating income was $85.8 million in the fourth quarter
2021, a 6% increase compared with the prior-year period, primarily
driven by higher revenue. Full-year segment operating income was
$309 million, a 5% decrease compared with the prior year, primarily
driven by less government-reimbursed pension costs and negative
operational efficiency impacts related to COVID-19 resulting in
lower levels of net favorable contract adjustments. Fourth quarter
and full-year 2021 segment operating margins were 18.9% and 19.0%,
respectively.
Nuclear Power Group (NPG) segment revenue was $114 million for
the fourth quarter 2021, a 7% increase from the prior-year period,
driven by higher fuel production and fuel handling, higher nuclear
power field service activity and higher nuclear medicine demand,
partially offset by lower component manufacturing volume. Full-year
segment revenue was $407 million, a 10% increase compared with the
prior year, driven by higher fuel production and fuel handling,
higher nuclear power field service activity and higher nuclear
medicine demand, partially offset by lower component manufacturing
volume.
NPG fourth quarter GAAP and non-GAAP operating income was $22.4
million and $23.0 million, respectively, both a 70% respective
increase compared with the prior-year period, driven primarily by
increased revenue, partially offset by a reduction in funds
received under the CEWS program to offset incurred expenses related
to the headwinds created by the pandemic. Full-year 2021 segment
GAAP and non-GAAP operating income was $52.5 million and $53.5
million, respectively, a 1% increase and a 1% decrease,
respectively, compared with the prior year, driven primarily by a
reduction in funds received in under the CEWS program to offset
expenses incurred due to the pandemic, nearly offset by increased
operating income associated with higher revenue. Fourth quarter and
full-year 2021 GAAP segment operating margins were 19.6% and 12.9%,
respectively. Fourth quarter and full-year 2021 non-GAAP segment
operating margins were 20.1% and 13.1%, respectively.
Nuclear Services Group (NSG) segment operating income was $6.1
million in the fourth quarter 2021, compared with $8.4 million of
operating income for the fourth quarter 2020 primarily driven by
lower contract fees and higher costs. Full-year 2021 segment
operating income was $27.9 million, compared with $26.4 million
GAAP operating income and $27.4 million non-GAAP operating income
in the prior year, a 6% and 2% respective increase, driven by
better contract performance and lower costs that were offset by
higher business development expense and lower income from completed
contracts.
Beginning in the first quarter 2022, our reportable segments
will be Government Operations and Commercial Operations to reflect
the manner in which resources will be allocated and operating
performance will be assessed going forward. Government Operations
includes the legacy Nuclear Operations and Nuclear Services Groups,
while Commercial Operations includes the legacy Nuclear Power
Group. New segment financial information for 2020 and 2021 is
detailed in Exhibit 2.
Cash and Capital Returned to Shareholders
The Company generated $160 million of cash from operating
activities in the fourth quarter 2021, compared with $48.3 million
of cash generated from operating activities in the prior-year
period, which did not include an $88.7 million cash receipt
typically received at year-end which was received on January 4,
2021. The Company generated $386 million of cash from operating
activities for the full year 2021. The Company’s cash balance, net
of restricted cash, was $34 million at the end of the year.
The Company returned $59.4 million to shareholders during the
fourth quarter 2021, bringing the total to $305 million of cash
returned for the full year, including $226 million in share
repurchases and $79.7 million in dividends. As of December 31,
2021, total remaining share repurchase authorization was $418
million.
On February 18, 2022, the BWXT Board of Directors declared a
quarterly cash dividend of $0.22 per common share, an increase from
the prior quarterly cash dividend. The dividend will be payable on
March 29, 2022, to shareholders of record on March 10, 2022.
2022 Guidance
- Revenue up 3% to 4% vs. 2021
- Adjusted EBITDA up 3% to 4% vs. 2021
- Non-GAAP EPS range of $3.05 to $3.25
- Cash from operations of $260 million to $290 million
- Capital expenditures of $180 million to $200 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 Fourth Quarter and Full Year 2021
Results
Date:
Tuesday, February 22, 2022, at 5:00 p.m.
EST
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/q42021-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 each of our reportable
segments, and planned changes to such segments in 2022, 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 and guidance for
2022 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 and
other customers; the impact of COVID-19 on our business and 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, 2021. 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, Virginia, BWXT is a
Fortune 1000 and Defense News Top 100 manufacturing and engineering
innovator that provides safe and effective nuclear solutions for
global security, clean energy, environmental remediation, nuclear
medicine and space exploration. With approximately 6,600 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)
(In millions, except per share
amounts)
Three Months Ended December
31, 2021
GAAP
Pension & OPEB
MTM (Gain) / Loss
Restructuring and
Other Costs
Non-GAAP
Operating Income
$
102.2
$
—
$
2.4
$
104.6
Other Income (Expense)
44.9
(39.6
)
—
5.3
Provision for Income Taxes
(30.2
)
9.1
(0.6
)
(21.7
)
Net Income
116.9
(30.5
)
1.8
88.2
Net Income Attributable to Noncontrolling
Interest
(0.0
)
—
—
(0.0
)
Net Income Attributable to BWXT
$
116.9
$
(30.5
)
$
1.8
$
88.2
Diluted Shares Outstanding
92.5
92.5
Diluted Earnings per Common Share
$
1.26
$
(0.33
)
$
0.02
$
0.95
Effective Tax Rate
20.5
%
19.8
%
NPG Operating Income
$
22.4
$
0.6
$
23.0
Unallocated Corporate Operating Income
$
(7.1
)
$
1.8
$
(5.3
)
Three Months Ended December
31, 2020
GAAP
Pension & OPEB
MTM (Gain) / Loss
Restructuring
Costs
Costs Associated with
Sale of Business
Non-GAAP
Operating Income
$
89.1
$
—
$
0.4
$
0.2
$
89.6
Other Income (Expense)
(1.3
)
6.4
—
—
5.1
Provision for Income Taxes
(21.8
)
(1.6
)
(0.1
)
(0.0
)
(23.5
)
Net Income
66.0
4.8
0.3
0.2
71.2
Net Income Attributable to Noncontrolling
Interest
(0.2
)
—
—
—
(0.2
)
Net Income Attributable to BWXT
$
65.7
$
4.8
$
0.3
$
0.2
$
70.9
Diluted Shares Outstanding
95.8
95.8
Diluted Earnings per Common Share
$
0.69
$
0.05
$
0.00
$
0.00
$
0.74
Effective Tax Rate
24.8
%
24.8
%
NPG Operating Income
$
13.2
$
0.4
$
13.6
(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.
EXHIBIT 1
(continued)
BWX TECHNOLOGIES, INC.
RECONCILIATION OF NON-GAAP
OPERATING INCOME AND EARNINGS PER SHARE(1)(2)(3)
(In millions, except per share
amounts)
Year Ended December 31,
2021
GAAP
Pension &
OPEB MTM
(Gain) / Loss
Restructuring
and Other
Costs
Costs Associated
With Early Bond
Redemption
Non-GAAP
Operating Income
$
345.8
$
—
$
3.1
$
—
$
349.0
Other Income (Expense)
49.9
(39.6
)
—
15.0
25.3
Provision for Income Taxes
(89.4
)
9.1
(0.8
)
(3.5
)
(84.6
)
Net Income
306.3
(30.5
)
2.4
11.5
289.6
Net Income Attributable to Noncontrolling
Interest
(0.4
)
—
—
—
(0.4
)
Net Income Attributable to BWXT
$
305.9
$
(30.5
)
$
2.4
$
11.5
289.2
Diluted Shares Outstanding
94.5
94.5
Diluted Earnings per Common Share
$
3.24
$
(0.32
)
$
0.03
$
0.12
$
3.06
Effective Tax Rate
22.6
%
22.6
%
NOG Operating Income
$
308.6
$
0.2
$
308.8
NPG Operating Income
$
52.5
$
0.9
$
53.5
Unallocated Corporate Operating Income
$
(18.9
)
$
2.1
$
(16.9
)
Year Ended December 31,
2020
GAAP
Pension &
OPEB MTM
(Gain) / Loss
Restructuring
Costs
Costs Associated
with Sale of
Business
Debt
Issuance
Costs
One-time
Franchise Tax
Audit Expense
Non-GAAP
Operating Income
$
358.6
$
—
$
2.3
$
2.9
$
—
$
2.6
$
366.3
Other Income (Expense)
3.6
6.4
—
—
0.5
—
10.5
Provision for Income Taxes
(83.0
)
(1.6
)
(0.6
)
(0.7
)
(0.1
)
(0.6
)
(86.5
)
Net Income
279.2
4.8
1.7
2.2
0.4
2.0
290.3
Net Income Attributable to Noncontrolling
Interest
(0.5
)
—
—
—
—
—
(0.5
)
Net Income Attributable to BWXT
$
278.7
$
4.8
$
1.7
$
2.2
$
0.4
$
2.0
289.8
Diluted Shares Outstanding
95.7
95.7
Diluted Earnings per Common Share
$
2.91
$
0.05
$
0.02
$
0.02
$
0.00
$
0.02
$
3.03
Effective Tax Rate
22.9
%
23.0
%
NPG Operating Income
$
52.0
$
2.3
$
54.2
NSG Operating Income
$
26.4
$
1.0
$
27.4
(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.
EXHIBIT 1
(continued)
BWX TECHNOLOGIES, INC.
RECONCILIATION OF
EBITDA(1)(2)(3)
(In millions, except per share
amounts)
Three Months Ended December
31, 2021
GAAP
Pension & OPEB
MTM (Gain) / Loss
Restructuring and
Other Costs
Non-GAAP
Net Income
$
116.9
$
(30.5
)
$
1.8
$
88.2
Provision for Income Taxes
30.2
(9.1
)
0.6
21.7
Other - net
(51.9
)
39.6
—
(12.3
)
Interest Income
(0.0
)
—
—
—
Interest Expense
7.0
—
—
7.0
Depreciation & Amortization
18.6
—
—
$
18.6
Adjusted EBITDA
$
120.8
$
—
$
2.4
$
123.2
Year Ended December 31,
2021
GAAP
Pension & OPEB
MTM (Gain) / Loss
Restructuring and
Other Costs
Costs Associated
With Early Bond
Redemption
Non-GAAP
Net Income
$
306.3
$
(30.5
)
$
2.4
$
11.5
$
289.6
Provision for Income Taxes
89.4
(9.1
)
0.8
3.5
84.6
Other - net
(85.2
)
39.6
—
(10.8
)
(56.4
)
Interest Income
(0.4
)
—
—
—
(0.4
)
Interest Expense
35.8
—
—
(4.2
)
31.5
Depreciation & Amortization
69.1
—
—
—
$
69.1
Adjusted EBITDA
$
414.9
$
—
$
3.1
$
—
$
418.1
(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.
EXHIBIT
2
BWX TECHNOLOGIES, INC.
NEW BUSINESS SEGMENT
INFORMATION
Three Months Ended December
31,
Year Ended December
31,
3/31/2021
6/30/2021
9/30/2021
12/31/2021
2021
2020
(Unaudited)
(In thousands)
REVENUES:
Government Operations
$
423,275
$
405,497
$
417,139
$
479,186
$
1,725,097
$
1,763,127
Commercial Operations
107,398
101,842
83,382
114,460
407,082
371,269
Eliminations
(2,400
)
(2,240
)
(1,794
)
(1,671
)
(8,105
)
(10,880
)
TOTAL
$
528,273
$
505,099
$
498,727
$
591,975
$
2,124,074
$
2,123,516
SEGMENT
INCOME:
Government Operations
$
78,245
$
72,871
$
87,542
$
90,891
$
329,549
$
345,250
Commercial Operations
6,294
5,640
4,925
18,384
35,243
36,915
SUBTOTAL
84,539
78,511
92,467
109,275
364,792
382,165
Unallocated Corporate
(2,125
)
(4,760
)
(4,999
)
(7,060
)
(18,944
)
(23,613
)
TOTAL
$
82,414
$
73,751
$
87,468
$
102,215
$
345,848
$
358,552
NON-GAAP SEGMENT
INCOME:
Government Operations
$
78,245
$
72,871
$
87,707
$
90,891
$
329,714
$
346,206
Commercial Operations
6,294
5,640
5,244
18,974
36,152
39,168
SUBTOTAL
84,539
78,511
92,951
109,865
365,866
385,374
Unallocated Corporate
(2,125
)
(4,760
)
(4,719
)
(5,265
)
(16,869
)
(19,046
)
TOTAL
$
82,414
$
73,751
$
88,232
$
104,600
$
348,997
$
366,328
DEPRECIATION AND
AMORTIZATION:
Government Operations
$
9,171
$
10,334
$
10,928
$
12,052
$
42,485
$
35,398
Commercial Operations
4,917
5,037
4,985
4,945
19,884
18,431
Corporate
1,809
1,724
1,571
1,607
6,711
6,845
TOTAL
$
15,897
$
17,095
$
17,484
$
18,604
$
69,080
$
60,674
CAPITAL
EXPENDITURES:
Government Operations
$
45,945
$
30,073
$
34,155
$
36,878
$
147,051
$
137,197
Commercial Operations
53,531
34,364
30,546
35,130
153,571
106,614
Corporate
2,456
3,801
1,785
2,388
10,430
11,216
TOTAL
$
101,932
$
68,238
$
66,486
$
74,396
$
311,052
$
255,027
BACKLOG:
Government Operations
$
4,495,617
$
4,174,767
$
3,813,289
$
4,532,170
$
4,532,170
$
3,680,126
Commercial Operations
697,169
674,287
687,806
643,866
643,866
725,702
TOTAL
$
5,192,786
$
4,849,054
$
4,501,095
$
5,176,036
$
5,176,036
$
4,405,828
BOOKINGS:
Government Operations
$
1,236,546
$
82,751
$
53,989
$
1,196,527
$
2,569,813
$
889,844
Commercial Operations
78,685
78,616
96,780
70,387
324,468
239,104
TOTAL
$
1,315,231
$
161,367
$
150,769
$
1,266,914
$
2,894,281
$
1,128,948
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220222005941/en/
Investor Contact: Mark Kratz Director, 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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