- Revenue of $233.6 million, Net Income of $25.4 million, and
Operating Income of $42.2 million, which exceeded
expectations
- Adjusted EBITDA of $23.3 million, $24.6 million excluding
BrightLoopTM and ClimateBrightTM expenses, ahead of
expectations
- Reiterate Full Year 2024 Adjusted EBITDA target range of
$105.0 million to $115.0 million, excluding BrightLoop and
ClimateBright expenses
- Improved balance sheet and liquidity through sale of
B&W's Denmark renewable service subsidiary for net cash
proceeds of $83.5 million
- Announced backlog of $472.4 million and implied backlog of
$757.8 million in project opportunities
- Announced total YTD bookings of $383.1 million and implied
bookings of $668.5 million, a 71% increase compared to the first
half of 2023
- Achieved annualized cost savings of approximately $25.0
million to date related to strategic business realignment
progressing toward stated target of over $30.0 million
Q2 2024 Continuing Operations Financial Highlights
– Revenue of $233.6 million, which was lower compared to the
second quarter of 2023, as anticipated, primarily due to our
strategic shift away from lower-margin new build projects and
timing of a large U.S. construction project
– Operating income of $42.2 million, including the gain related
to the sale of B&W's Denmark renewable service subsidiary,
compared to $12.4 million in the second quarter of 2023
– Net income of $25.2 million, compared $0.6 million in the
second quarter of 2023
– Earnings per share of $0.24, compared to a loss per share of
$0.04 in the second quarter of 2023
Babcock & Wilcox Enterprises, Inc. ("B&W" or the
"Company") (NYSE: BW) announced results for the second quarter of
2024.
"Our results in the second quarter reflect the increased demand
for our diverse portfolio of technologies that support the
generation of efficient and sustainable energy no matter the fuel
source, and we believe that we are well positioned to capitalize on
the continued growth in natural gas conversions, environmental
solutions, carbon capture and new clean energy opportunities with
utility and industrial customers. We also are excited about the
advancement of our new technologies, including continuing to invest
in several BrightLoop™ projects for the net negative production of
hydrogen utilizing solid fuels, and we anticipate new bookings this
year in both hydrogen generation and carbon capture projects as we
further support the world’s energy transition," commented Kenneth
Young, B&W’s Chairman and Chief Executive Officer.
“We have improved margins with lower revenues in our core
business, through a more selective market approach of targeting
higher-value projects and opportunities. We also generated strong
operating results during the second quarter, highlighted by
Adjusted EBITDA that exceeded our expectations and we believe
positions us well to achieve our full-year Adjusted EBITDA
targets,” Young continued. “During the quarter, we completed the
sale of a Denmark-based subsidiary, which improved our balance
sheet and demonstrated our ability to execute against our stated
strategy to sell certain non-strategic businesses. We also remain
in negotiations related to the sale of other non-strategic assets,
subject to due diligence and continuing negotiations. Looking
ahead, we remain focused on strengthening our balance sheet,
improving liquidity and strategically investing in future
growth.”
“Based on the combination of robust customer activity and
stronger than expected Adjusted EBITDA for the second quarter, we
are reiterating our full-year Adjusted EBITDA guidance to a range
of $105 million to $115 million, excluding BrightLoopTM and
ClimateBrightTM expenses,” Young said.
“As we look to the second half of 2024, we expect operating
momentum driven by our Thermal and Environmental segments to
continue, especially in the fourth quarter which historically is a
seasonally strong period for B&W’s businesses, with increased
services and project schedules from our customers," Young said.
"Our global pipeline of over $9 billion in identified project
opportunities remains healthy across all business segments, and we
anticipate prospects for new bookings and stronger financial
performance throughout the second half of 2024. We remain intently
focused on our balance sheet and expect additional sales of
non-strategic businesses to drive further improvements in our cash,
liquidity and leverage ratio positions.”
Q2 2024 Continuing Operations Financial Summary
Revenues in the second quarter of 2024 were $233.6 million a
decline compared to the second quarter of 2023, primarily
attributable to the timing of one U.S. construction project
completed in 2023 and to our strategic approach of reducing
reliance on lower-margin projects. Income in the second quarter of
2024 was $25.2 million, compared to $0.6 million in the second
quarter of 2023. Earnings per common share in the second quarter of
2024 were $0.24 compared to a loss per common share of $0.04 in the
second quarter of 2023. Operating income in the second quarter of
2024 was $42.2 million, including the gain related to the sale of
B&W's Denmark renewable service subsidiary, compared to
operating income of $12.4 million in the second quarter of 2023.
Adjusted EBITDA was $23.3 million, a decrease compared to $26.1
million in the second quarter of 2023, primarily due to the
completion of a large U.S. construction project in 2023. Implied
bookings in the second quarter of 2024 were $193.0 million. Ending
implied backlog was $757.8 million, an increase of 51% compared to
implied backlog at the end of the second quarter of 2023. 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
$61.0 million for the second quarter of 2024, a decrease compared
to $85.2 million in the second quarter of 2023. The decrease is
primarily due to the planned reduction of waste-to-energy projects
in the current year, which is consistent with our stated strategy.
Adjusted EBITDA in the second quarter of 2024 was $7.7 million, an
increase of 63% compared to $4.7 million in the second quarter of
2023, primarily due to selling, general and administrative cost
saving initiatives related to the restructuring of our Renewable
business.
Babcock & Wilcox Environmental segment revenues were
$56.2 million in the second quarter of 2024, an increase of 15%
compared to $48.7 million in the second quarter of 2023. The
increase is primarily driven by growth in our domestic industrial
and electrostatic precipitator business in addition to growth in
our European environmental business. Adjusted EBITDA in the second
quarter of 2024 was $6.7 million, an increase of 99% compared to
$3.4 million in the second quarter of 2023, primarily driven by
improved margins and higher revenues as described above along with
favorable close out of a flue gas treatment project.
Babcock & Wilcox Thermal segment revenues were $120.2
million in the second quarter of 2024, which is in line with
company expectations, despite being a decrease compared to $158.0
million in the second quarter of 2023. The revenue decrease is
primarily attributable to the completion of a large construction
project in the second quarter of 2023. Adjusted EBITDA in the
second quarter of 2024 was $13.0 million, a decrease compared to
$24.4 million in the second quarter of 2023, also due to the
completion of that large construction project. Bookings in Thermal
parts and services during the second quarter of 2024 exceeded
bookings in the same period in 2023, with total bookings increasing
from $89.8 million in 2023 to $111.7 million in 2024.
Liquidity and Balance Sheet
At June 30, 2024, the Company had total debt of $476.8 million
and a cash, cash equivalents and restricted cash balance of $202.1
million.
Reducing Cost of Debt
During 2024, we closed the financing of a $150 million revolving
credit facility. We expect that the new credit facility will reduce
our interest cost by up to $5 million per year based on current
interest rates. We also amended our existing Reimbursement
Agreement, which included updating certain financial covenants in
the agreement.
Impacts of Market Conditions
Management continues to adapt to macroeconomic conditions,
including the impacts from inflation, higher interest rates and
foreign exchange rate volatility, geopolitical conflicts (including
the ongoing conflicts in Ukraine and the Middle East) and global
shipping and supply chain disruptions that continued to have an
impact during the first six months of 2024. In certain instances,
these situations have resulted in cost increases and delays or
disruptions that have had, and could continue to have, an adverse
impact on our ability to meet customers’ demands. We continue 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 supporting
our customers and their specific needs. The duration and scope of
these conditions cannot be predicted, and therefore, any
anticipated negative financial impact on our operating results
cannot be reasonably estimated.
Earnings Call Information
B&W plans to host a conference call and webcast on Thursday,
August 8, 2024 at 5 p.m. ET to discuss the Company's second quarter
2024 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 312135. 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. In
addition, the Company presents the non-GAAP financial measure of
Adjusted EBITDA excluding BrightLoop and ClimateBright. Management
believes this measure is useful to investors because of the
increasing importance of BrightLoop and ClimateBright to the future
growth of the Company. Management uses EBITDA excluding BrightLoop
and ClimateBright to assess the Company's performance independent
of these technologies.
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. Implied backlog and
implied bookings include projects awarded or under contract but not
fully released for performance.
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.
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: our financial
condition and ability to continue as a going concern; the impact of
global macroeconomic conditions, including inflation and volatility
in the capital markets; the impact of our divestiture of Babcock
& Wilcox Solar Energy, Inc.; risks associated with contractual
pricing in our industry; our relationships with customers,
subcontractors and other third parties; our ability to comply with
our contractual obligations; disruptions at our or manufacturing
facilities or a third-party manufacturing facility that we have
engaged; the actions or failures of our co-venturers; our ability
to implement our growth strategy, including through strategic
acquisitions, which we may not successfully consummate or
integrate; our evaluation of strategic alternatives for certain
businesses and non-strategic assets may not result in a successful
transaction; the risks of unexpected adjustments and cancellations
in our backlog; professional liability, product liability, warranty
and other claims; our ability to compete successfully against
current and future competitors; our ability to develop and
successfully market new products; the impacts of industry
conditions and public health crises; the cyclical nature of the
industries in which we operate; changes in the legislative and
regulatory environment in which we operate; supply chain issues,
including shortages of adequate components; failure to properly
estimate customer demand; our ability to comply with the covenants
in our debt agreements; our ability to refinance our 8.125% Notes
due 2026 and 6.50% Notes due 2026 prior to their maturity; our
ability to maintain adequate bonding and letter of credit capacity;
impairment of goodwill or other indefinite-lived intangible assets;
credit risk; disruptions in, or failures of, our information
systems; our ability to comply with privacy and information
security laws; our ability to protect our intellectual property and
use the intellectual property that we license from third parties;
risks related to our international operations, including
fluctuations in the value of foreign currencies, global tariffs,
sanctions and export controls; could harm our profitability;
volatility in the price of our common stock; B. Riley’s significant
influence over us; changes in tax rates or tax law; our ability to
use net operating loss and certain tax credits; our ability to
maintain effective internal control over financial reporting; our
ability to attract and retain skilled personnel and senior
management; labor problems, including negotiations with labor
unions and possible work stoppages; risks associated with our
retirement benefit plans; natural disasters or other events beyond
our control, such as war, armed conflicts or terrorist attacks; and
the other factors specified and set forth under "Risk Factors" in
the Company’s periodic reports filed with the Securities and
Exchange Commission, including our most recent annual report on
Form 10-K.
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,
2024
2023
2024
2023
Revenues
$
233.6
$
291.5
$
441.2
$
532.8
Costs and expenses:
Cost of operations
179.2
228.4
338.2
417.7
Selling, general and administrative
expenses
50.5
49.8
92.0
97.8
Restructuring activities
0.8
1.0
2.3
1.4
Research and development costs
1.2
0.9
2.3
2.2
Gain on sale of business
(40.2
)
—
(40.2
)
—
(Gain) loss on asset disposals, net
—
(1.0
)
—
—
Total costs and expenses
191.4
279.1
394.7
519.1
Operating income
42.2
12.4
46.5
13.7
Other (expense) income:
Interest expense
(12.5
)
(11.2
)
(25.4
)
(23.8
)
Interest income
0.3
0.5
0.6
0.6
Loss on debt extinguishment
(1.1
)
—
(6.1
)
—
Benefit plans, net
0.1
(0.1
)
0.2
(0.2
)
Foreign exchange
0.5
1.2
(0.8
)
0.7
Other income (expense) - net
0.4
(0.3
)
0.4
(0.6
)
Total other expense
(12.3
)
(9.9
)
(31.1
)
(23.4
)
Income (loss) before income tax
expense
29.9
2.5
15.4
(9.7
)
Income tax expense
4.7
1.9
6.0
2.4
Income (loss) from continuing
operations
25.2
0.6
9.4
(12.1
)
Income (loss) from discontinued
operations, net of tax
0.1
(5.6
)
(0.9
)
(5.4
)
Net income (loss)
25.4
(5.0
)
8.6
(17.5
)
Net income attributable to non-controlling
interest
—
(0.1
)
—
(0.1
)
(0.1
)
Net income (loss) attributable to
stockholders
25.3
(5.1
)
8.5
(17.6
)
Less: Dividend on Series A preferred
stock
3.7
3.7
7.4
7.4
Net income (loss) attributable to
stockholders of common stock
$
21.6
$
(8.8
)
$
1.1
$
(25.0
)
Basic earnings (loss) per share:
Continuing operations
$
0.24
$
(0.04
)
$
0.02
$
(0.22
)
Discontinued operations
—
(0.06
)
(0.01
)
(0.06
)
Basic earnings (loss) per share
$
0.24
$
(0.10
)
$
0.01
$
(0.28
)
Diluted earnings (loss) per share:
Continuing operations
$
0.24
$
(0.04
)
$
0.02
$
(0.22
)
Discontinued operations
—
(0.06
)
(0.01
)
(0.06
)
Diluted earnings (loss) per share
$
0.24
$
(0.10
)
$
0.01
$
(0.28
)
Shares used in the computation of earnings
(loss) per share:
Basic
91.0
88.8
90.3
88.8
Diluted
91.2
88.8
90.3
88.8
(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, 2024
December 31, 2023
Cash and cash equivalents
$
95.5
$
65.3
Current restricted cash
75.3
5.7
Accounts receivable – trade, net
125.0
144.0
Accounts receivable – other
25.9
36.2
Contracts in progress
88.6
90.1
Inventories, net
110.3
113.9
Other current assets
25.0
23.9
Current assets held for sale
28.9
18.5
Total current assets
574.6
497.6
Net property, plant and equipment and
finance leases
78.2
78.4
Goodwill
83.8
102.0
Intangible assets, net
30.5
45.6
Right-of-use assets
27.6
28.2
Long-term restricted cash
31.3
0.3
Deferred tax assets
2.1
2.1
Other assets
21.0
21.6
Total assets
$
849.1
$
775.7
Accounts payable
$
147.4
$
127.5
Accrued employee benefits
11.9
10.8
Advance billings on contracts
63.3
81.1
Accrued warranty expense
6.7
7.6
Financing lease liabilities
1.4
1.4
Operating lease liabilities
3.5
3.9
Other accrued liabilities
53.7
68.1
Loans payable
3.5
6.2
Current liabilities held for sale
42.6
43.6
Total current liabilities
333.9
350.2
Senior notes
339.0
337.9
Loans payable, net of current portion
134.3
35.4
Pension and other postretirement benefit
liabilities
168.0
172.9
Finance lease liabilities, net of current
portion
25.5
26.2
Operating lease liabilities, net of
current portion
25.3
25.4
Deferred tax liability
10.5
13.0
Other non-current liabilities
10.9
15.1
Total liabilities
1,047.5
976.0
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 June 30, 2024 and December 31, 2023
0.1
0.1
Common stock, par value $0.01 per share,
authorized shares of 500,000; outstanding shares of 92,010 and
89,449 at June 30, 2024 and December 31, 2023, respectively
5.2
5.1
Capital in excess of par value
1,551.0
1,546.3
Treasury stock at cost, 2,154 shares and
2,139 shares at June 30, 2024 and December 31, 2023,
respectively
(115.2
)
(115.2
)
Accumulated deficit
(1,569.9
)
(1,570.9
)
Accumulated other comprehensive loss
(70.1
)
(66.4
)
Stockholders' deficit attributable to
shareholders
(198.9
)
(201.0
)
Non-controlling interest
0.6
0.6
Total stockholders' deficit
(198.3
)
(200.4
)
Total liabilities and stockholders'
deficit
$
849.1
$
775.7
(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,
2024
2023
Cash flows from operating activities:
Net income (loss) from continuing
operations
$
9.4
$
(12.1
)
Loss from discontinued operations, net of
tax
(0.9
)
(5.4
)
Net income (loss)
8.6
(17.5
)
Adjustments to reconcile net income (loss)
to net cash used in operating activities:
Depreciation and amortization of
long-lived assets
9.5
11.3
Amortization of deferred financing costs
and debt discount
2.5
2.8
Amortization of guaranty fee
1.4
0.5
Non-cash operating lease expense
3.7
3.3
Loss on debt extinguishment
6.1
—
Gain on sale of business
(40.2
)
—
Loss on asset disposals
—
0.3
Provision for (benefit from) deferred
income taxes
2.5
(1.7
)
Prior service cost amortization for
pension and postretirement plans
0.5
0.4
Stock-based compensation
2.7
5.6
Foreign exchange
0.8
(0.7
)
Changes in operating assets and
liabilities:
Accounts receivable - trade, net and
other
(7.5
)
(10.5
)
Contracts in progress
(17.4
)
(40.8
)
Advance billings on contracts
(15.0
)
6.4
Inventories, net
0.5
(15.7
)
Income taxes
4.6
(4.3
)
Accounts payable
35.3
40.5
Accrued and other current liabilities
(12.0
)
3.2
Accrued contract loss
(4.7
)
(1.3
)
Pension liabilities, accrued
postretirement benefits and employee benefits
(2.4
)
(4.7
)
Other, net
(6.3
)
0.6
Net cash used in operating
activities
(26.6
)
(22.3
)
Cash flows from investing
activities:
Purchase of property, plant and
equipment
(8.0
)
(5.6
)
Proceeds from sale of business and assets,
net
83.5
—
Purchases of available-for-sale
securities
(3.2
)
(3.9
)
Sales and maturities of available-for-sale
securities
3.7
5.4
Other, net
(0.2
)
—
Net cash provided by (used in)
investing activities
75.8
(4.2
)
Cash flows from financing
activities:
Borrowings on loan payable
139.0
16.2
Repayments on loan payable
(43.2
)
(12.0
)
Finance lease payments
(0.7
)
(0.6
)
Payment of holdback funds from
acquisition
(3.0
)
—
Payment of preferred stock dividends
(7.4
)
(7.4
)
Shares of common stock returned to
treasury stock
—
(0.1
)
Issuance of common stock, net
2.0
—
Debt issuance costs
(5.1
)
—
Other, net
(0.1
)
(0.3
)
Net cash provided by (used in)
financing activities
81.6
(4.2
)
Effects of exchange rate changes on
cash
(0.2
)
1.1
Net increase (decrease) in cash, cash
equivalents and restricted cash
130.7
(29.6
)
Cash, cash equivalents and restricted cash
at beginning of period
71.4
113.5
Cash, cash equivalents and restricted cash
at end of period
$
202.1
$
83.9
(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,
2024
2023
2024
2023
REVENUES:
Babcock & Wilcox Renewable
$
61.0
$
85.2
$
113.2
$
169.3
Babcock & Wilcox Environmental
56.2
48.7
104.6
88.1
Babcock & Wilcox Thermal
120.2
158.0
230.4
277.2
Eliminations
(3.7
)
(0.4
)
(7.0
)
(1.9
)
$
233.6
$
291.5
$
441.2
$
532.8
ADJUSTED EBITDA:
Babcock & Wilcox Renewable
$
7.7
$
4.7
$
9.3
$
9.0
Babcock & Wilcox Environmental
6.7
3.4
10.1
5.3
Babcock & Wilcox Thermal
13.0
24.4
26.7
38.1
Corporate
(4.0
)
(5.5
)
(10.0
)
(10.6
)
Research and development costs
(0.2
)
(0.9
)
(0.3
)
(2.2
)
$
23.3
$
26.1
$
35.8
$
39.7
AMORTIZATION EXPENSE:
Babcock & Wilcox Renewable
$
0.5
$
0.5
$
0.9
$
1.1
Babcock & Wilcox Environmental
0.8
0.8
1.6
1.5
Babcock & Wilcox Thermal
1.1
1.2
2.1
2.2
$
2.3
$
2.4
$
4.7
$
4.8
DEPRECIATION EXPENSE:
Babcock & Wilcox Renewable
$
0.6
$
0.6
$
0.9
$
1.5
Babcock & Wilcox Environmental
0.4
0.2
0.9
0.4
Babcock & Wilcox Thermal
1.2
1.8
2.6
3.7
$
2.3
$
2.7
$
4.3
$
5.6
As of June 30,
BACKLOG:
2024
2023
Babcock & Wilcox Renewable
$
90
$
143
Babcock & Wilcox Environmental
163
162
Babcock & Wilcox Thermal
205
191
Other/Eliminations
15
(3
)
$
472
$
493
As of June 30,
IMPLIED BACKLOG(2):
2024
2023
Babcock & Wilcox Renewable
$
90
$
143
Babcock & Wilcox Environmental
182
170
Babcock & Wilcox Thermal
471
191
Other/Eliminations
15
(3
)
$
758
$
501
(1) Figures may not be clerically accurate
due to rounding.
(2) Implied backlog is backlog plus
projects that are awarded or under contract but not fully released
for performance.
Exhibit 5
Babcock & Wilcox Enterprises,
Inc.
Reconciliation of Adjusted
EBITDA(3)
(In millions)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Income (loss) from continuing
operations
$
25.2
$
0.6
$
9.4
$
(12.1
)
Interest expense
12.2
10.7
24.8
23.2
Income tax expense
4.7
1.9
6.0
2.4
Depreciation & amortization
4.6
5.1
9.0
10.4
EBITDA
46.8
18.3
49.2
23.9
Gain on sale of business
(40.2
)
—
(40.2
)
—
Benefit plans, net
(0.1
)
0.1
(0.2
)
0.2
Gain on asset sales, net
—
(1.0
)
—
—
Stock compensation
1.3
2.3
2.7
5.5
Restructuring activities and business
services transition costs
0.8
1.0
2.3
2.0
Settlement and related legal costs
7.4
—
3.3
(2.5
)
Loss on debt extinguishment
1.1
—
6.1
—
Product development (1)
1.4
1.0
3.1
2.4
Foreign exchange
(0.5
)
(1.2
)
0.8
(0.7
)
Contract disposal (2)
3.5
2.7
4.1
4.1
Letter of credit fees
2.3
2.0
4.6
3.7
Other - net
(0.4
)
0.7
(0.1
)
1.1
Adjusted EBITDA
$
23.3
$
26.1
$
35.8
$
39.7
Product development (1)
(1.1
)
(0.5
)
(2.1
)
(1.2
)
BrightLoopTM and ClimateBrightTM
expenses
2.5
1.7
4.2
3.5
Adjusted EBITDA excluding BrightLoopTM and
ClimateBrightTM expenses
$
24.6
$
27.3
$
37.9
$
42.0
(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/20240808728017/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
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