- Generates 1Q22 GAAP earnings of $0.64 per share, non-GAAP(1)
earnings of $0.69 per share
- Produces 1Q22 GAAP net income of $59.0 million and adjusted
EBITDA(1) of $94.4 million
- Completes Tc-99m equipment testing, setting the stage for FDA
registration batches
- Closes acquisition to expand and enhance core naval nuclear
manufacturing business by adding highly-engineered, proprietary
valves, manifolds and fittings for global shipbuilding
- Reiterates 2022 guidance
BWX Technologies, Inc. (NYSE: BWXT) ("BWXT", "we", "us" or the
"Company") reported first quarter 2022 revenue of $531 million, a
slight increase compared with $528 million in the first quarter
2021. GAAP net income for the first quarter 2022 was $59.0 million,
or $0.64 per diluted share, compared with GAAP net income of $69.7
million, or $0.73 per diluted share, in the prior-year period.
Non-GAAP(1) net income for the first quarter 2022 was $63.0
million, or $0.69 per diluted share. Consolidated adjusted
EBITDA(1) for the first quarter 2022 was $94.4 million, a 4%
decrease compared with the prior-year period of $98.3 million,
primarily driven by lower recoverable CAS pension income and fewer
favorable contract adjustments due to lower productivity in the
naval reactors business. A reconciliation of non-GAAP results are
detailed in Exhibit 1.
“BWXT demonstrated consistent operational and financial
performance in the first quarter of the year and moved forward on
strategic growth initiatives," said Rex D. Geveden, president and
chief executive officer. “BWXT delivered its final design for the
Pele transportable microreactor to the Department of Defense and
completed a comprehensive series of hot runs to fully test and
optimize the new Tc-99m generator manufacturing line, setting the
stage for final characterization runs and reference batches.”
“In April, we also closed a small, but strategic acquisition
that expands and enhances our core mission in global security.
These two acquired businesses provide additional market access to
expanding nuclear and non-nuclear naval and commercial markets
through the sale of highly engineered proprietary valves, manifolds
and fittings and enhanced-emission maritime offerings. The
acquisition will also establish a global footprint for BWXT with
concentrations in the U.S. and U.K. maritime markets, which we view
as increasingly important, especially given the present state of
global security," said Geveden.
Segment Results
Government Operations segment revenue was $432 million for the
first quarter 2022, a 2% increase compared with the prior-year
period, driven by higher long-lead material volume in naval
reactors, higher revenue in uranium processing and higher revenue
in advanced technologies related to microreactors, partially offset
by lower missile tube revenue. Government Operations segment
operating income was $72.2 million in the first quarter 2022, an 8%
decrease compared with the prior-year period. Government Operations
segment adjusted EBITDA(1) was $84.7 million in the first quarter
2022, a 3% decrease compared with the prior-year period, primarily
driven by lower recoverable CAS pension income and fewer favorable
contract adjustments due to lower productivity in the naval
reactors business, partially offset by higher volume.
Commercial Operations segment revenue was $100 million for the
first quarter 2022, a 7% decrease from the prior-year period,
driven by lower commercial nuclear power field services, partially
offset by higher commercial nuclear power fuel handling revenue and
higher BWXT Medical revenue. Commercial Operations segment
operating income was $4.0 million in the first quarter 2022, a $2.3
million decrease from the prior-year period. Commercial Operations
segment adjusted EBITDA(1) was $10.7 million in the first quarter
2022, a 5% decrease compared with the prior-year period, primarily
driven by lower revenue.
Cash and Capital Returned to Shareholders
BWXT utilized $5.4 million of net cash in operating activities
in the first quarter 2022, compared with $98.4 million of net cash
generated from operating activities in the prior-year period, which
can be largely explained by an $88.7 million cash receipt that
typically would have been received prior to the 2020 year-end but
occurred in the first quarter of 2021. The Company’s cash balance,
net of restricted cash, was $23.6 million at the end of the first
quarter 2022.
The Company returned $40.7 million of cash to shareholders
during the first quarter 2022, including $20.0 million in share
repurchases and $20.7 million in dividends. As of March 31, 2022,
total remaining share repurchase authorization was $398
million.
On May 3, 2022, the BWXT Board of Directors declared a quarterly
cash dividend of $0.22 per common share. The dividend will be
payable on June 8, 2022, to shareholders of record on May 20,
2022.
2022 Guidance
BWXT reiterated all components of 2022 guidance
- Revenue up 3% to 4% vs. 2021
- Adjusted EBITDA up 3% to 4% vs. 2021
- Non-GAAP EPS: $3.05 to $3.25
- Cash from operations: $260 million to $290 million
- Capital expenditures: $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.
(1)
A reconciliation of non-GAAP results,
including adjusted EBITDA, are detailed in Exhibit 1. Additional
information can be found in the materials on the BWXT investor
relations website at www.bwxt.com/investors.
Conference Call to Discuss First Quarter 2022 Results
Date:
Monday, May 9, 2022, 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/1Q2022-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, including the expectations, timing and revenue of our
strategic initiatives, such as medical radioisotopes and recent
acquisitions; 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
receipt and/or timing of government approvals; the impact of
COVID-19 on our business and our employees, contractors, suppliers,
customers and other partners and their business activities; 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 and
subsequent Form 10-Q filings. 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 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 6,700 employees,
BWXT has 14 major operating sites in the U.S., Canada and the U.K.
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 March 31,
2022
GAAP
Restructuring Costs
Acquisition Related
Costs
Non-GAAP
Operating Income
$
71.6
$
4.1
$
1.2
$
76.8
Other Income (Expense)
5.9
—
—
5.9
Provision for Income Taxes
(18.4
)
(1.0
)
(0.2
)
(19.6
)
Net Income
59.1
3.1
0.9
63.1
Net Income Attributable to Noncontrolling
Interest
(0.1
)
—
—
(0.1
)
Net Income Attributable to BWXT
$
59.0
$
3.1
$
0.9
$
63.0
Diluted Shares Outstanding
91.8
91.8
Diluted Earnings per Common Share
$
0.64
$
0.03
$
0.01
$
0.69
Effective Tax Rate
23.7
%
23.7
%
Government Operations Operating Income
$
72.2
$
1.2
$
—
$
73.5
Commercial Operations Operating Income
$
4.0
$
1.9
$
—
$
5.9
Unallocated Corporate Operating Income
$
(4.6
)
$
0.9
$
1.2
$
(2.5
)
RECONCILIATION OF CONSOLIDATED
ADJUSTED EBITDA(1)(2)(3)
(In millions)
Three Months Ended March 31,
2022
GAAP
Restructuring Costs
Acquisition Related
Costs
Non-GAAP
Net Income
$
59.1
$
3.1
$
0.9
$
63.1
Provision for Income Taxes
18.4
1.0
0.2
19.6
Other - net
(12.8
)
—
—
(12.8
)
Interest Income
(0.1
)
—
—
(0.1
)
Interest Expense
7.1
—
—
7.1
Depreciation & Amortization
17.6
—
—
$
17.6
Adjusted EBITDA
$
89.2
$
4.1
$
1.2
$
94.4
Three Months Ended March 31,
2021
GAAP
Net Income
$
69.8
Provision for Income Taxes
22.1
Other - net
(16.4
)
Interest Income
(0.1
)
Interest Expense
7.0
Depreciation & Amortization
15.9
Adjusted EBITDA
$
98.3
EXHIBIT 1
(continued)
RECONCILIATION OF REPORTING
SEGMENT ADJUSTED EBITDA(1)(2)(3)
(In millions)
Three Months Ended March 31,
2022
Operating Income
(GAAP)
Non-GAAP
Adjustments(4)
Depreciation &
Amortization
Adjusted EBITDA
Government Operations
$
72.2
$
1.2
$
11.2
$
84.7
Commercial Operations
$
4.0
$
1.9
$
4.8
$
10.7
Three Months Ended March 31,
2021
Operating Income
(GAAP)
Non-GAAP
Adjustments(4)
Depreciation &
Amortization
Adjusted EBITDA
Government Operations
$
78.2
$
—
$
9.2
$
87.4
Commercial Operations
$
6.3
$
—
$
4.9
$
11.2
(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.
(4)
For Non-GAAP adjustment details, see
reconciliation of non-GAAP operating income and earnings per
share.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220509006029/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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