Third Quarter 2014 Results
Babcock & Wilcox Announces Third Quarter 2014 Results
- Record Third Quarter Revenue for Nuclear Operations Segment
- Power Generation Revenue and Operating Margin Improving
- Raises Lower End of 2014 Adjusted EPS Range to $1.75 to $1.85
- Separately Announced Planned Spin-off of Power Generation Business
CHARLOTTE, NC – November 5, 2014 – The Babcock & Wilcox Company (NYSE: BWC) (“B&W” or the “Company”) today reported third quarter 2014 revenues of $737.9 million, a decrease of $36.9 million, or 4.8%, from the third quarter of 2013, while GAAP earnings per share increased $0.03 per share to $0.57 for the third quarter of 2014 compared to $0.54 in the prior year period. Adjusted earnings per share, which excludes a $0.04 per share net impact of a non-recurring investment gain offset by a mid-year pension mark- to-market adjustment and restructuring costs for the quarter, were $0.53 for the three months ended September 30, 2014 compared to $0.57 in the third quarter of 2013.
“Significantly improved third quarter revenue and margin relative to the first half of the year demonstrate that our focus on efficiency, costs, and targeted business development is beginning to positively impact the business,” said Mr. E. James Ferland, President and Chief Executive Officer. “Our Nuclear Operations segment continued its strong performance, recording its highest ever third quarter revenue while maintaining its operating margin. The Power Generation segment produced a solid quarter with improved revenue and operating margins in line with our expectations. We are pleased with these results and believe they represent a step forward for the Company. We are confident that the actions we are taking position B&W for steady improvement in our top and bottom lines in 2015 and beyond.”
In a separate release issued today, the Company also announced that its Board of Directors has unanimously approved pursuing the tax-free spin-off of the Company’s Power Generation business to B&W shareholders. The planned separation of the Power Generation and Government & Nuclear Operations businesses is expected to create two independent, publicly-traded companies equipped with the resources, strategic autonomy, and financial flexibility to enhance long-term shareholder value.
Results of Operations
Consolidated revenues for the third quarter of 2014 were $737.9 million, a decrease of 4.8%, compared to
$774.8 million for the third quarter of 2013. The Nuclear Operations segment revenues increased by 5.4%, to $297.5 million, primarily attributable to increased activity in the manufacturing of nuclear components for the U.S. Government programs. Revenues in the Power Generation segment were $402.0 million in the three months, 5.8% below the corresponding period in 2013 but 22.8% higher sequentially compared to the previous quarter. The year-over-year decrease was primarily due to the timing and level of activities related to new build steam generation systems projects together with lower revenue from the new build environmental equipment business. The MEGTEC acquisition contributed $48.9 million of revenues during the third quarter of 2014. Revenues from the Nuclear Energy segment were $21.5 million, compared to
$52.5 million in the prior year period, a decrease of $31.0 million primarily attributable to management’s decision earlier in the year to exit the low margin nuclear projects business.
GAAP operating income for the third quarter of 2014 decreased $16.9 million to $65.2 million compared to
$82.1 million in the same period of 2013. The mPower segment recorded a $5.1 million loss in the third quarter of 2014 compared to a $25.6 million loss in the corresponding period in 2013, due to the slower pace of development under the restructured mPower program. For the quarter, Technical Services operating income decreased $13.4 million to $5.0 million, primarily attributable to the loss of the Pantex and Y-12 contracts. Operating income in the Power Generation segment was $35.3 million, a $3.0 million decrease from $38.3 million in the 2013 period, primarily due to lower revenues. Operating income in the Nuclear Operations segment decreased $1.9 million in the quarter from last year’s record third quarter profit to $61.9 million, while the Nuclear Energy segment reported a loss of $6.7 million in the period compared to $0.0 million in the same prior year period.
Operating income for the third quarter of 2014 includes an $11.1 million pension mark-to-market adjustment, due to a re-measurement of the Canadian pension plan, as well as $8.7 million of special charges for restructuring activities and $0.6 million of MEGTEC acquisition costs. Excluding these charges, adjusted operating income for the third quarter of 2014 was $85.6 million compared to adjusted operating income of $86.9 million in the third quarter of 2013.
“We are pleased with the progress we’ve made across our different businesses during the period,” said Mr. Ferland. “In addition to the solid results in the Nuclear Operations and Power Generation segments this quarter, the Nuclear Energy segment reported bookings in excess of $100 million. mPower spending was reduced and is pacing to our targeted $15 million annual run rate. Our international business development activities are expanding in markets where there is a healthy pipeline of coal and renewables opportunities. As a result, we expect solid bookings in these areas in the coming months. Our margin improvement programs remain on track and we continue to look for additional opportunities to reduce costs and improve efficiency.”
Liquidity and Debt
The Company’s cash and investments position, net of restricted cash, was $220.5 million at the end of the third quarter of 2014, a decrease of $140.8 million compared to $361.3 million as of December 31, 2013. During the three month period ended September 30, 2014, the Company repurchased common shares totaling $50.0 million, paid dividends of $10.7 million, and contributed $34.1 million to its pension plans. For the first nine months of 2014, the Company returned $182.6 million of capital to shareholders through its share repurchase and dividend programs, acquired MEGTEC for a net $142.8 million, and contributed $58.9 million to its pension plans.
As of September 30, 2014, outstanding balances under the Credit Agreement included a $150.0 million term loan, $154.4 million borrowed under the revolving credit facility, and letters of credit issued under the revolving credit facility totaling $170.2 million, resulting in $825.4 million of availability as of the end of the third quarter.
Quarterly Dividend and Share Repurchase
On October 31, 2014, the Company declared a quarterly cash dividend of $0.10 per common share. The dividend will be payable on December 16, 2014 to shareholders of record on November 20, 2014.
During the third quarter of 2014, the Company repurchased 1.63 million shares of its common stock at a total cost of $50.0 million. Program to date through September 30, 2014, the Company had repurchased a total of
14.22 million shares at a cost of $403.4 million leaving $346.6 million of capacity remaining under its previously announced $750 million share repurchase authorizations.
Outlook
The Company raised the lower end of the range for adjusted earnings per share for the full year 2014 to
$1.75 to $1.85, from the previous range of $1.70 to $1.85. Adjusted earnings per share exclude restructuring charges, the mark-to-market adjustments for pension and other post-retirement benefits, and other non- recurring gains and losses. The Company also expects 2014 consolidated revenues to be approximately $2.9 billion, compared to the previous range of $2.9 billion to $3.0 billion.
Conference Call to Discuss Third Quarter 2014 Results and Announcement of Planned Spin-off
Date: Thursday, November 6, 2014, at 8:30 a.m. EST
Live Webcast: Investor Relations section of website atwww.babcock.com
Forward-Looking Statements
B&W cautions that this release contains forward-looking statements, including, without limitation, statements relating to the manner, tax-free nature and expected benefits associated with separating B&W’s power generation business and its government and nuclear operations business into two independent, publicly traded companies; bookings, to the extent they may be viewed as an indicator of future revenues; and our 2014 outlook. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, the proposed separation not being completed as anticipated or at all; delays or other difficulties in completing the separation, including the inability to satisfy the conditions for its completion; disruptions experienced with customers and suppliers; the inability of either business to successfully operate independently; the inability to retain key personnel; 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 B&W’s filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2013 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
The Babcock & Wilcox Company is a leader in clean energy technology and services, primarily for the nuclear, fossil and renewable power markets as well as a premier advanced technology and mission critical defense contractor. B&W has locations worldwide and employs approximately 11,000 people, in addition to
joint venture employees throughout the world. A company overview presentation, which will be presented at investor conferences and meetings throughout this quarter, is available on the Investor Relations section of our website. For additional information please visit our website at www.babcock.com.
Investor Contact: Media Contact:
Jenny L. Apker Aimee Mills
Vice President, Treasurer and Investor Relations Media Relations Lead
704-625-4944 investors@babcock.com 980-365-4583 aemills@babcock.com
EXHIBIT 1
THE BABCOCK & WILCOX COMPANY
RECONCILIATION OF NON-GAAP OPERATING INCOME AND EARNINGS PER SHARE*
|
Three Months Ended September 30, 2014 |
|||||||
|
GAAP |
Gain on Centrus Transaction |
Pension & OPEB MTM (Gain) / Loss |
MEGTEC Acquisition |
mPower Restructuring |
GCI Impact |
Non-GAAP |
|
|
Operating Income |
$ 65.2 |
$ - |
$ 11.1 |
$ 0.6 |
$ 0.3 |
$ 8.4 |
$ 85.6 |
|
Other Income / (Expense) |
15.9 |
(18.6) |
- |
- |
- |
- |
(2.7) |
|
Provision for Income Taxes |
(20.7) |
- |
(2.9) |
(0.2) |
(0.1) |
(2.7) |
(26.6) |
|
Net Income |
60.4 |
(18.6) |
8.2 |
0.4 |
0.2 |
5.7 |
56.3 |
|
Net Loss (Income) Attributable to Non- Controlling Interest |
0.8 |
- |
- |
- |
- |
- |
0.8 |
|
Net Income Attributable to The Babcock & Wilcox Company |
$ 61.2 |
$ (18.6) |
$ 8.2 |
$ 0.4 |
$ 0.2 |
$ 5.7 |
$ 57.1 |
|
Diluted Earnings per Common Share |
$ 0.57 |
$ (0.17) |
$ 0.08 |
$ 0.00 |
$ 0.00 |
$ 0.05 |
$ 0.53 |
|
Effective Tax Rate |
25.5% |
32.1% |
|||||
|
Three Months Ended September 30, 2013 |
|||||||
|
GAAP |
Gain on Centrus Transaction |
Pension & OPEB MTM (Gain) / Loss |
MEGTEC Acquisition |
mPower Restructuring |
GCI Impact |
Non-GAAP |
|
|
Operating Income |
$ 82.1 |
$ - |
$ - |
$ - |
$ - |
$ 4.8 |
$ 86.9 |
|
Other Income / (Expense) |
(0.7) |
- |
- |
- |
- |
- |
(0.7) |
|
Provision for Income Taxes |
(24.4) |
- |
- |
- |
- |
(1.6) |
(26.0) |
|
Net Income |
57.0 |
- |
- |
- |
- |
3.2 |
60.2 |
|
Net Loss (Income) Attributable to Non- Controlling Interest |
3.4 |
- |
- |
- |
- |
- |
3.4 |
|
Net Income Attributable to The Babcock & Wilcox Company |
$ 60.4 |
$ - |
$ - |
$ - |
$ - |
$ 3.2 |
$ 63.6 |
|
Diluted Earnings per Common Share |
$ 0.54 |
$ - |
$ - |
$ - |
$ - |
$ 0.03 |
$ 0.57 |
|
Effective Tax Rate |
30.0% |
30.2% |
|||||
|
Nine Months Ended September 30, 2014 |
|||||||
|
GAAP |
Gain on Centrus Transaction |
Pension & OPEB MTM (Gain) / Loss |
MEGTEC Acquisition |
mPower Restructuring |
GCI Impact |
Non-GAAP |
|
|
Operating Income |
$ 153.9 |
$ - |
$ 11.1 |
$ 2.1 |
$ 22.4 |
$ 20.6 |
$ 210.1 |
|
Other Income / (Expense) |
16.6 |
(18.6) |
- |
- |
- |
- |
(2.0) |
|
Provision for Income Taxes |
(45.5) |
- |
(2.9) |
(0.7) |
(7.6) |
(7.0) |
(63.7) |
|
Net Income |
125.0 |
(18.6) |
8.2 |
1.4 |
14.8 |
13.6 |
144.4 |
|
Net Loss (Income) Attributable to Non- Controlling Interest |
7.6 |
- |
- |
- |
- |
- |
7.6 |
|
Net Income Attributable to The Babcock & Wilcox Company |
$ 132.7 |
$ (18.6) |
$ 8.2 |
$ 1.4 |
$ 14.8 |
$ 13.6 |
$ 152.1 |
|
Diluted Earnings per Common Share |
$ 1.21 |
$ (0.17) |
$ 0.08 |
$ 0.01 |
$ 0.14 |
$ 0.12 |
$ 1.39 |
|
Effective Tax Rate |
26.7% |
30.6% |
|||||
|
Nine Months Ended September 30, 2013 |
|||||||
|
GAAP |
Gain on Centrus Transaction |
Pension & OPEB MTM (Gain) / Loss |
MEGTEC Acquisition |
mPower Restructuring |
GCI Impact |
Non-GAAP |
|
|
Operating Income |
$ 241.0 |
$ - |
$ - |
$ - |
$ - |
$ 25.5 |
$ 266.5 |
|
Other Income / (Expense) |
0.8 |
- |
- |
- |
- |
- |
0.8 |
|
Provision for Income Taxes |
(70.2) |
- |
- |
- |
- |
(8.7) |
(78.9) |
|
Net Income |
171.6 |
- |
- |
- |
- |
16.8 |
188.4 |
|
Net Loss (Income) Attributable to Non- Controlling Interest |
8.9 |
- |
- |
- |
- |
- |
8.9 |
|
Net Income Attributable to The Babcock & Wilcox Company |
$ 180.5 |
$ - |
$ - |
$ - |
$ - |
$ 16.8 |
$ 197.3 |
|
Diluted Earnings per Common Share |
$ 1.60 |
$ - |
$ - |
$ - |
$ - |
$ 0.15 |
$ 1.75 |
|
Effective Tax Rate |
29.0% |
29.5% |
|||||
* B&W 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. B&W believes the non-GAAP measures provide meaningful insight in 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.
* B&W 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. B&W believes the non-GAAP measures provide meaningful insight in 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
THE BABCOCK & WILCOX COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
|
September 30, |
December 31, |
||
|
2014 |
2013 |
||
|
(Unaudited) |
|||
|
(In thousands) |
|||
|
Current Assets: |
|||
|
Cash and cash equivalents |
$ 196,921 |
$ 346,116 |
|
|
Restricted cash and cash equivalents |
43,200 |
45,945 |
|
|
Investments |
19,046 |
10,748 |
|
|
Accounts receivable – trade, net |
424,875 |
360,323 |
|
|
Accounts receivable – other |
66,052 |
45,480 |
|
|
Contracts in progress |
350,165 |
370,820 |
|
|
Inventories |
116,533 |
113,058 |
|
|
Deferred income taxes |
97,770 |
97,170 |
|
|
Other current assets |
57,297 |
47,764 |
|
|
Total Current Assets |
1,371,859 |
1,437,424 |
|
|
Property, Plant and Equipment |
1,179,435 |
1,126,683 |
|
|
Less accumulated depreciation |
716,309 |
679,604 |
|
|
Net Property, Plant and Equipment |
463,126 |
447,079 |
|
|
Investments |
4,483 |
4,426 |
|
|
Goodwill |
395,301 |
281,708 |
|
|
Deferred Income Taxes |
117,159 |
127,076 |
|
|
Investments in Unconsolidated Affiliates |
141,914 |
184,831 |
|
|
Intangible Assets |
114,540 |
81,521 |
|
|
Other Assets |
48,388 |
45,088 |
|
|
TOTAL |
$ 2,656,770 |
$ 2,609,153 |
|
|
September 30, |
December 31, |
||
|
2014 |
2013 |
||
|
(Unaudited) |
|||
|
(In thousands, except share and per share amounts) |
|||
|
Current Liabilities: |
|||
|
Notes payable and current maturities of long-term debt |
$ 8,890 |
$ 4,671 |
|
|
Accounts payable |
212,069 |
319,774 |
|
|
Accrued employee benefits |
100,690 |
163,833 |
|
|
Accrued liabilities – other |
87,707 |
58,192 |
|
|
Advance billings on contracts |
232,008 |
317,771 |
|
|
Accrued warranty expense |
59,574 |
56,436 |
|
|
Income taxes payable |
10,182 |
6,551 |
|
|
Total Current Liabilities |
711,120 |
927,228 |
|
|
Long-Term Debt |
298,776 |
225 |
|
|
Accumulated Postretirement Benefit Obligation |
46,049 |
43,194 |
|
|
Environmental Liabilities |
55,951 |
53,391 |
|
|
Pension Liability |
346,198 |
336,878 |
|
|
Other Liabilities |
58,709 |
65,296 |
|
|
Stockholders’ Equity: |
|||
|
Common stock, par value $0.01 per share, authorized 325,000,000 shares; issued 121,417,899 and 120,536,910 shares at September 30, 2014 and December 31, 2013, respectively |
1,214 |
1,205 |
|
|
Preferred stock, par value $0.01 per share, authorized 75,000,000 shares; No shares issued |
- |
- |
|
|
Capital in excess of par value |
772,842 |
747,189 |
|
|
Retained earnings |
756,572 |
656,916 |
|
|
Treasury stock at cost, 14,910,058 and 10,068,731 shares at September 30, 2014 and December 31, 2013, respectively |
(423,821) |
(268,971) |
|
|
Accumulated other comprehensive income |
17,242 |
28,348 |
|
|
Stockholders’ Equity – The Babcock & Wilcox Company |
1,124,049 |
1,164,687 |
|
|
Noncontrolling interest |
15,918 |
18,254 |
|
|
Total Stockholders’ Equity |
1,139,967 |
1,182,941 |
|
|
TOTAL |
$ 2,656,770 |
$ 2,609,153 |
|
|
September 30, |
December 31, |
||
|
2014 |
2013 |
||
|
(Unaudited) |
|||
|
(In thousands, except share and per share amounts) |
|||
|
Current Liabilities: |
|||
|
Notes payable and current maturities of long-term debt |
$ 8,890 |
$ 4,671 |
|
|
Accounts payable |
212,069 |
319,774 |
|
|
Accrued employee benefits |
100,690 |
163,833 |
|
|
Accrued liabilities – other |
87,707 |
58,192 |
|
|
Advance billings on contracts |
232,008 |
317,771 |
|
|
Accrued warranty expense |
59,574 |
56,436 |
|
|
Income taxes payable |
10,182 |
6,551 |
|
|
Total Current Liabilities |
711,120 |
927,228 |
|
|
Long-Term Debt |
298,776 |
225 |
|
|
Accumulated Postretirement Benefit Obligation |
46,049 |
43,194 |
|
|
Environmental Liabilities |
55,951 |
53,391 |
|
|
Pension Liability |
346,198 |
336,878 |
|
|
Other Liabilities |
58,709 |
65,296 |
|
|
Stockholders’ Equity: |
|||
|
Common stock, par value $0.01 per share, authorized 325,000,000 shares; issued 121,417,899 and 120,536,910 shares at September 30, 2014 and December 31, 2013, respectively |
1,214 |
1,205 |
|
|
Preferred stock, par value $0.01 per share, authorized 75,000,000 shares; No shares issued |
- |
- |
|
|
Capital in excess of par value |
772,842 |
747,189 |
|
|
Retained earnings |
756,572 |
656,916 |
|
|
Treasury stock at cost, 14,910,058 and 10,068,731 shares at September 30, 2014 and December 31, 2013, respectively |
(423,821) |
(268,971) |
|
|
Accumulated other comprehensive income |
17,242 |
28,348 |
|
|
Stockholders’ Equity – The Babcock & Wilcox Company |
1,124,049 |
1,164,687 |
|
|
Noncontrolling interest |
15,918 |
18,254 |
|
|
Total Stockholders’ Equity |
1,139,967 |
1,182,941 |
|
|
TOTAL |
$ 2,656,770 |
$ 2,609,153 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS LIABILITIES AND STOCKHOLDERS’ EQUITY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
Three Months Ended |
Nine Months Ended |
|||
|
September 30, |
September 30, |
|||
|
2014 |
2013 |
2014 |
2013 |
|
|
(Unaudited) |
||||
|
(In thousands, except share and per share amounts) |
||||
|
Revenues |
$ 737,902 |
$ 774,834 |
$ 2,085,925 |
$ 2,466,393 |
|
Costs and Expenses: |
||||
|
Cost of operations |
554,614 |
578,394 |
1,569,229 |
1,884,134 |
|
Research and development costs |
8,379 |
23,787 |
63,293 |
52,970 |
|
Losses (gains) on asset disposals and impairments, net |
(605) |
1,258 |
852 |
1,345 |
|
Selling, general and administrative expenses |
108,987 |
102,576 |
305,590 |
313,113 |
|
Special charges for restructuring activities |
8,675 |
4,849 |
28,803 |
25,504 |
|
Total Costs and Expenses |
680,050 |
710,864 |
1,967,767 |
2,277,066 |
|
Equity in Income of Investees |
7,308 |
18,151 |
35,760 |
51,713 |
|
Operating Income |
65,160 |
82,121 |
153,918 |
241,040 |
|
Other Income (Expense): |
||||
|
Interest income |
267 |
480 |
876 |
1,135 |
|
Interest expense |
(2,978) |
(631) |
(4,798) |
(2,238) |
|
Other – net |
18,625 |
(533) |
20,527 |
1,878 |
|
Total Other Income (Expense) |
15,914 |
(684) |
16,605 |
775 |
|
Income before Provision for Income Taxes |
81,074 |
81,437 |
170,523 |
241,815 |
|
Provision for Income Taxes |
20,671 |
24,416 |
45,474 |
70,217 |
|
Net Income |
60,403 |
57,021 |
125,049 |
171,598 |
|
Net Loss Attributable to Noncontrolling Interest |
811 |
3,425 |
7,646 |
8,892 |
|
Net Income Attributable to The Babcock & Wilcox Company |
$ 61,214 |
$ 60,446 |
$ 132,695 |
$ 180,490 |
|
Earnings per Common Share: |
||||
|
Basic: |
||||
|
Net Income Attributable to The Babcock & Wilcox Company |
$ 0.57 |
$ 0.54 |
$ 1.22 |
$ 1.61 |
|
Diluted: |
||||
|
Net Income Attributable to The Babcock & Wilcox Company |
$ 0.57 |
$ 0.54 |
$ 1.21 |
$ 1.60 |
|
Shares used in the computation of earnings per share (Note 10): |
||||
|
Basic |
107,105,986 |
110,931,376 |
109,103,879 |
112,309,170 |
|
Diluted |
107,444,284 |
111,749,381 |
109,482,318 |
113,049,700 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Nine Months Ended |
||
|
September 30, |
||
|
2014 |
2013 |
|
|
(Unaudited) |
||
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
(In thousands) |
|
|
Net Income |
$ 125,049 |
$ 171,598 |
|
Non-cash items included in net income: |
||
|
Depreciation and amortization |
57,400 |
51,341 |
|
Income of investees, net of dividends |
16,920 |
(18,419) |
|
Losses on asset disposals and impairments |
3,870 |
1,345 |
|
Gain on exchange of USEC investment |
(18,647) |
- |
|
In-kind research and development costs |
5,830 |
11,289 |
|
Recognition of losses for pension and postretirement plans |
12,952 |
2,265 |
|
Stock-based compensation expense |
11,786 |
13,072 |
|
Excess tax benefits from stock-based compensation |
(568) |
(64) |
|
Changes in assets and liabilities, net of effects of acquisitions: |
||
|
Accounts receivable |
(62,220) |
(44,663) |
|
Accounts payable |
(115,271) |
5,305 |
|
Contracts in progress and advance billings on contracts |
(74,214) |
(140,862) |
|
Inventories |
138 |
10,559 |
|
Income taxes |
(11,804) |
(1,284) |
|
Accrued and other current liabilities |
13,206 |
(3,588) |
|
Pension liability, accrued postretirement benefit obligation and employee benefits |
(66,679) |
(69,842) |
|
Other, net |
17,057 |
5,921 |
|
NET CASH USED IN OPERATING ACTIVITIES |
(85,195) |
(6,027) |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
||
|
Decrease in restricted cash and cash equivalents |
2,745 |
14,669 |
|
Purchases of property, plant and equipment |
(55,877) |
(45,288) |
|
Acquisition of business, net of cash acquired |
(127,705) |
- |
|
Purchase of intangible assets |
(722) |
(2,200) |
|
Purchases of available-for-sale securities |
(21,225) |
(79,747) |
|
Sales and maturities of available-for-sale securities |
31,663 |
122,677 |
|
Investment in equity and cost method investees |
(4,900) |
(2,807) |
|
Proceeds from asset disposals |
846 |
586 |
|
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES |
(175,175) |
7,890 |
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
||
|
Payment of short-term borrowing and long-term debt |
(4,424) |
(157) |
|
Borrowings under short-term arrangements |
2,855 |
649 |
|
Borrowings under Credit Agreement |
809,300 |
- |
|
Repayments under Credit Agreement |
(504,900) |
- |
|
Payment of debt issuance costs |
(5,390) |
- |
|
Repurchase of common shares |
(149,774) |
(140,143) |
|
Dividends paid to common shareholders |
(32,799) |
(27,082) |
|
Excess tax benefits from stock-based compensation |
568 |
64 |
|
Exercise of stock options |
3,854 |
3,756 |
|
Other |
(202) |
(414) |
|
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES |
119,088 |
(163,327) |
|
EFFECTS OF EXCHANGE RATE CHANGES ON CASH |
(7,913) |
(2,255) |
|
NET DECREASE IN CASH AND CASH EQUIVALENTS |
(149,195) |
(163,719) |
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
346,116 |
383,547 |
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ 196,921 |
$ 219,828 |
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: |
||
|
Cash paid during the period for: |
||
|
Interest (net of amount capitalized) |
$ 3,573 |
$ 1,341 |
|
Income taxes (net of refunds) |
$ 52,845 |
$ 70,602 |
|
SCHEDULE OF NON-CASH INVESTING ACTIVITY: |
||
|
Accrued capital expenditures included in accounts payable |
$ 3,201 |
$ 6,040 |
|
THE BABCOCK & WILCOX COMPANY |
||||
|
BUSINESS SEGMENT INFORMATION |
||||
|
Three Months Ended |
Nine Months Ended |
|||
|
September 30, |
September 30, |
|||
|
2014 |
2013 |
2014 |
2013 |
|
|
(Unaudited) |
||||
|
(In thousands) |
||||
|
REVENUES: |
||||
|
Power Generation |
$ 402,016 |
$ 426,960 |
$ 1,041,473 |
$ 1,359,614 |
|
Nuclear Operations |
297,489 |
282,120 |
877,141 |
874,245 |
|
Technical Services |
20,236 |
25,242 |
70,706 |
77,903 |
|
Nuclear Energy |
21,529 |
52,470 |
114,236 |
179,171 |
|
mPower |
- |
343 |
278 |
980 |
|
Adjustments and Eliminations |
(3,368) |
(12,301) |
(17,909) |
(25,520) |
|
TOTAL |
$ 737,902 |
$ 774,834 |
$ 2,085,925 |
$ 2,466,393 |
|
SEGMENT INCOME: |
||||
|
Power Generation |
$ 35,260 |
$ 38,348 |
$ 61,017 |
$ 102,213 |
|
Nuclear Operations |
61,893 |
63,819 |
180,103 |
184,280 |
|
Technical Services |
4,951 |
18,398 |
34,818 |
47,812 |
|
Nuclear Energy |
(6,698) |
21 |
(4,627) |
10,201 |
|
mPower |
(5,140) |
(25,576) |
(63,782) |
(53,627) |
|
SUBTOTAL |
90,266 |
95,010 |
207,529 |
290,879 |
|
Corporate |
(5,352) |
(8,040) |
(13,729) |
(24,335) |
|
Special Charges for Restructuring Activities |
(8,675) |
(4,849) |
(28,803) |
(25,504) |
|
Mark to Market Adjustment |
(11,079) |
- |
(11,079) |
- |
|
TOTAL |
$ 65,160 |
$ 82,121 |
$ 153,918 |
$ 241,040 |
|
EQUITY IN INCOME (LOSS) OF INVESTEES: |
||||
|
Power Generation |
$ 2,859 |
$ 3,287 |
$ 5,659 |
$ 10,596 |
|
Nuclear Operations |
- |
- |
- |
- |
|
Technical Services |
4,419 |
15,063 |
30,069 |
41,595 |
|
Nuclear Energy |
30 |
(199) |
32 |
(478) |
|
mPower |
- |
- |
- |
- |
|
TOTAL |
$ 7,308 |
$ 18,151 |
$ 35,760 |
$ 51,713 |
|
PENSION EXPENSE: |
||||
|
Power Generation |
$ 191 |
$ 750 |
$ 1,382 |
$ 2,240 |
|
Nuclear Operations |
872 |
1,133 |
2,616 |
3,399 |
|
Technical Services |
48 |
72 |
144 |
216 |
|
Nuclear Energy |
1,013 |
899 |
3,495 |
3,038 |
|
mPower |
- |
- |
- |
- |
|
Corporate |
484 |
505 |
1,459 |
1,515 |
|
Mark to Market Adjustment |
11,079 |
0 |
11,079 |
- |
|
TOTAL |
$ 13,687 |
$ 3,359 |
$ 20,175 |
$ 10,408 |
|
DEPRECIATION AND AMORTIZATION: |
||||
|
Power Generation |
$ 9,886 |
$ 5,720 |
$ 21,193 |
$ 16,519 |
|
Nuclear Operations |
7,380 |
6,769 |
21,037 |
20,182 |
|
Technical Services |
- |
48 |
1 |
144 |
|
Nuclear Energy |
1,614 |
1,648 |
4,968 |
4,832 |
|
mPower |
263 |
122 |
712 |
365 |
|
Corporate |
3,204 |
3,178 |
9,489 |
9,299 |
|
TOTAL |
$ 22,347 |
$ 17,485 |
$ 57,400 |
$ 51,341 |
|
RESEARCH AND DEVELOPMENT, NET: |
||||
|
Power Generation |
$ 4,502 |
$ 4,585 |
$ 12,795 |
$ 16,128 |
|
Nuclear Operations |
- |
54 |
5 |
67 |
|
Technical Services |
6 |
17 |
24 |
56 |
|
Nuclear Energy |
602 |
879 |
1,512 |
3,079 |
|
mPower |
3,269 |
18,252 |
48,957 |
33,640 |
|
TOTAL |
$ 8,379 |
$ 23,787 |
$ 63,293 |
$ 52,970 |
|
CAPITAL EXPENDITURES: |
||||
|
Power Generation |
$ 4,788 |
$ 1,553 |
$ 10,886 |
$ 13,403 |
|
Nuclear Operations |
7,101 |
8,187 |
24,210 |
21,599 |
|
Technical Services |
- |
66 |
- |
66 |
|
Nuclear Energy |
4,852 |
1,163 |
13,089 |
4,141 |
|
mPower |
99 |
331 |
1,983 |
1,745 |
|
Corporate |
1,215 |
555 |
5,709 |
4,334 |
|
TOTAL |
$ 18,055 |
$ 11,855 |
$ 55,877 |
$ 45,288 |
|
BACKLOG: |
||||
|
Power Generation |
$ 2,132,985 |
$ 2,176,110 |
$ 2,132,985 |
$ 2,176,110 |
|
Nuclear Operations |
2,376,438 |
2,530,159 |
2,376,438 |
2,530,159 |
|
Technical Services |
4,475 |
15,388 |
4,475 |
15,388 |
|
Nuclear Energy |
273,415 |
185,632 |
273,415 |
185,632 |
|
mPower |
- |
2,221 |
- |
2,221 |
|
TOTAL |
$ 4,787,313 |
$ 4,909,510 |
$ 4,787,313 |
$ 4,909,510 |
|
BOOKINGS: |
||||
|
Power Generation |
$ 320,079 |
$ 270,214 |
$ 1,011,358 |
$ 1,041,851 |
|
Nuclear Operations |
93,426 |
(20,476) |
877,434 |
416,238 |
|
Technical Services |
12,523 |
33,055 |
70,155 |
86,120 |
|
Nuclear Energy |
100,837 |
34,711 |
238,863 |
82,839 |
|
mPower |
- |
- |
- |
- |
|
TOTAL |
$ 526,865 |
$ 317,504 |
$ 2,197,810 |
$ 1,627,048 |