BWX (BWXT) 8-K Babcock & Wilcox Announces First Quarter 2012 Results

Exhibit 99.1

Babcock & Wilcox Announces First Quarter 2012 Results

–      Earnings per share of $0.39

–      Revenues of $766 million increased 10.8%

–      Record Backlog of $6.0 billion

CHARLOTTE – May 9, 2012 – The Babcock & Wilcox Company (NYSE: BWC) (“B&W” or the “Company”) today reported first quarter 2012 revenues of $765.9 million, an increase of $74.6 million, or 10.8%, from the first quarter of 2011. Earnings per share for the first quarter of 2012 were $0.39 compared to $0.11 in the first quarter of 2011. In the first quarter of 2011, earnings per share included approximately $0.17 of charges related to loss contracts. Excluding the impact of these prior year charges, earnings per share in the first quarter of 2012 increased 39.3% compared to the first quarter of 2011.

Recent Highlights

• Named to MIT Technology Review’s 2012 TR50 List of the World’s Most Innovative Companies

• Received Full Notice to Proceed on West Palm Beach Waste-to-Energy Facility Contract, Added $676 Million to Backlog

• Awarded $1.3 Billion, Ten-Year Waste Isolation Pilot Plant Management Contract

• Awarded $150 Million Environmental Equipment and Construction Contract for Alliant Energy

• Awarded $130 Million Naval Nuclear Component Contract

• Awarded $30 Million Design and Engineering Selective Catalytic Reduction (SCR) System Contract for Xcel Energy

• Awarded $20 Million EPC Industrial Environmental Control Systems Contract

• Announced Retirement of Brandon C. Bethards and Appointment of E. James Ferland as President and Chief Executive Officer

Results of Operations

Consolidated revenues for the first quarter of 2012 were $765.9 million, an increase of $74.6 million, or 10.8%, from the first quarter of 2011. The Power Generation and Nuclear Energy segments increased 16.3% and 32.6%, respectively, while the combined government segments declined 1.3%. The double-digit growth rate in consolidated revenues is primarily due to strong environmental control equipment and services sales, growth in new renewable steam generation systems, and higher nuclear services revenues.

Operating income for the first quarter of 2012 was $65.7 million, an increase of $43.8 million from the first quarter of 2011. Included in operating earnings in the first quarter of 2011 were charges related to loss contracts totaling $32.7 million. Excluding the impact of these charges in the prior year, operating earnings in the first quarter of 2012 increased $11.1 million or 20.3% compared to the first quarter of 2011.

The increase in operating income (excluding these 2011 charges) was primarily due to improvements in operational performance in the Government segments, partially offset by an increase in research and development expenses related to the Company’s small modular reactor program and lower equity income contributions from the Company’s unconsolidated steam boiler joint venture in China.

“In the first quarter, the Company performed well above prior year levels, and in-line with expectations,” said E. James Ferland, President and Chief Executive Officer of B&W. “Importantly, strong bookings in the first quarter of 2012 resulted in an ending backlog of $6.0 billion, the highest quarter-end backlog the Company has ever reported. Bookings in the quarter include the impact of the full notice to proceed received for the West Palm Beach waste-to-energy plant, $249 million of environmental awards and a new $130 million contract for advanced naval reactor designs. Over the last few quarters, the Company has realized a significant increase in environmental control systems bookings as a result of legislative requirements in the United States to generate electricity with fewer emissions. At the end of the first quarter, the Power Generation segment had more than $4 billion of bids outstanding or in progress, which includes more than $2 billion for environmental control systems and services,” Ferland concluded.

Liquidity

The Company’s cash and investments position, net of debt, was $418.7 million at the end of the first quarter of 2012, a decrease of $125 million compared to $543.7 million at the end of the fourth quarter of 2011. During the quarter, the Company contributed $91.6 million to its pension plans. In addition to net cash, the Company maintains a $700.0 million revolving credit agreement with $483.8 million of availability as of the end of the first quarter. The Company believes it maintains adequate liquidity to fund operations, which could include increased working capital requirements to fund internal growth, R&D programs, and product and geographic expansion opportunities.

Reconciliation of Non-GAAP Earnings Per Share and Operating Income

(in $ millions, except per share amounts)

	Q1 2012		Q1 2011
GAAP operating income	$	65.7	$	21.9
NFS material processing loss contracts		—		11.1
Nuclear Energy loss contract		—		21.6
Non-GAAP operating income	$	65.7	$	54.6
Reported earnings per share	$	0.39	$	0.11
NFS material processing loss contracts		—		.06
Nuclear Energy loss contract		—		.11
Non-GAAP earnings per share	$	0.39	$	0.28

B&W is providing non-GAAP information regarding certain of its historical results 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.

Conference Call to Discuss First Quarter 2012 Results

Date:	Thursday, May 10, 2012, at 8:30 a.m. ET
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 our belief regarding the opportunity from environmental control systems and backlog, it the extent backlog may be viewed as an indicator of future revenues. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, adverse changes in the timing, scope or enforcement of U.S. Environmental Protection Agency environmental rules affecting our customers and delays, changes or termination of contracts in backlog. If one or more of these 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 its annual report on Form 10-K for the year ended December 31, 2011. B&W cautions not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, 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 12,700 people, in addition to approximately 10,400 joint venture employees. 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 atwww.babcock.com.

TABLES TO FOLLOW

Investor Contact:	Media Contact:
Michael P. Dickerson	Jud Simmons
Vice President and Investor Relations Officer	Public Relations Manager
704-625-4944—investors@babcock.com	434.522.6462—hjsimmons@babcock.com

THE BABCOCK & WILCOX COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

ASSETS

		December 31,		December 31,
	March 31, 2012		December 31, 2011
	(Unaudited) (In thousands)
Current Assets:
Cash and cash equivalents	$	249,620	$	415,209
Restricted cash and cash equivalents		59,040		61,190
Investments		111,237		68,805
Accounts receivable – trade, net		329,336		305,832
Accounts receivable – other		76,375		77,505
Contracts in progress		336,731		315,286
Inventories		114,025		107,298
Deferred income taxes		88,770		102,022
Other current assets		44,105		33,929
Total Current Assets		1,409,239		1,487,076
Property, Plant and Equipment		1,038,586		1,017,422
Less accumulated depreciation		611,529		595,131
Net Property, Plant and Equipment		427,057		422,291
Investments		4,006		3,775
Goodwill		276,824		276,180
Deferred Income Taxes		236,080		241,739
Investments in Unconsolidated Affiliates		178,427		163,568
Other Assets		204,864		194,482
TOTAL	$	2,736,497	$	2,789,111

THE BABCOCK & WILCOX COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

LIABILITIES AND STOCKHOLDERS’ EQUITY

		December 31,			December 31,
	March 31, 2012			December 31, 2011
	(Unaudited) (In thousands)
Current Liabilities:
Notes payable and current maturities of long-term debt	$	4,650		$	4,653
Accounts payable		224,659			237,494
Accrued employee benefits		236,138			303,803
Accrued liabilities – other		77,820			71,079
Advance billings on contracts		430,789			438,753
Accrued warranty expense		98,413			97,209
Income taxes payable		2,549			1,816
Total Current Liabilities		1,075,018			1,154,807
Long-Term Debt		597			633
Accumulated Postretirement Benefit Obligation		79,031			80,663
Environmental Liabilities		44,857			44,069
Pension Liability		539,225			586,045
Other Liabilities		88,808			87,921
Commitments and Contingencies
Stockholders’ Equity:
Common stock, par value $0.01 per share, authorized 325,000,000 shares; issued 119,020,291 and 118,458,911 shares at March 31, 2012 and December 31, 2011, respectively		1,190			1,185
Preferred stock, par value $0.01 per share, authorized 75,000,000 shares; No shares issued		—			—
Capital in excess of par value		1,116,544			1,106,971
Retained earnings		313,069			266,325
Treasury stock at cost, 457,747 and 351,876 shares at March 31, 2012 and December 31, 2011, respectively		(12,889	)		(10,059	)
Accumulated other comprehensive loss		(518,809	)		(538,628	)
Stockholders’ Equity – The Babcock & Wilcox Company		899,105			825,794
Noncontrolling interest		9,856			9,179
Total Stockholders’ Equity		908,961			834,973
TOTAL	$	2,736,497		$	2,789,111

THE BABCOCK & WILCOX COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended March 31,
	2012			2011
	(Unaudited) (In thousands, except share and per share amounts)
Revenues	$	765,892		$	691,277
Costs and Expenses:
Cost of operations		582,739			564,806
Research and development costs		29,036			17,308
Gains on asset disposals and impairments – net		(260	)		(10	)
Selling, general and administrative expenses		106,023			102,633
Total Costs and Expenses		717,538			684,737
Equity in Income of Investees		17,357			15,361
Operating Income		65,711			21,901
Other Income (Expense):
Interest income		233			459
Interest expense		(623	)		(455	)
Other expense – net		(1,102	)		(2,994	)
Total Other Expense		(1,492	)		(2,990	)
Income before Provision for Income Taxes		64,219			18,911
Provision for Income Taxes		20,357			5,244
Net Income	$	43,862		$	13,667
Net Loss (Income) Attributable to Noncontrolling Interest		2,882			(157	)
Net Income Attributable to The Babcock & Wilcox Company	$	46,744		$	13,510
		��
Earnings per Common Share:
Basic:
Net Income Attributable to The Babcock & Wilcox Company	$	0.40		$	0.12
Diluted:
Net Income Attributable to The Babcock & Wilcox Company	$	0.39		$	0.11
Shares used in the computation of earnings per share:
Basic		118,255,346			116,968,275
Diluted		118,859,141			117,957,245

THE BABCOCK & WILCOX COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three Months Ended March 31,
	2012			2011
	(Unaudited) (In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	43,862		$	13,667
Non-cash items included in net income:
Depreciation and amortization		17,715			19,315
Income of investees, net of dividends		(6,893	)		(3,832	)
Gain on asset disposals – net		(260	)		(10	)
In-kind research and development costs		3,644			—
Amortization of pension and postretirement costs		21,524			20,474
Stock-based compensation expense		3,983			4,853
Excess tax benefits from stock-based compensation		(1,406	)		(4,031	)
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable		(28,497	)		(31,213	)
Net contracts in progress and advance billings on contracts		(30,997	)		(44,328	)
Accounts payable		(10,159	)		6,016
Inventories		(6,066	)		1,536
Current and deferred income taxes		21,306			21,479
Accrued and other current liabilities		4,378			8,535
Pension liability, accumulated postretirement benefit obligation and accrued employee benefits		(118,205	)		(71,633	)
Other, net		(17,163	)		(22,401	)
NET CASH USED IN OPERATING ACTIVITIES		(103,234	)		(81,573	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease (increase) in restricted cash and cash equivalents		2,150			(284	)
Purchases of property, plant and equipment		(21,441	)		(20,753	)
Purchases of available-for-sale securities		(64,802	)		(48,791	)
Sales and maturities of available-for-sale securities		22,015			48,577
Investment in equity and cost method investees		(6,572	)		(4,716	)
Proceeds from asset disposals		19			17
NET CASH USED IN INVESTING ACTIVITIES		(68,631	)		(25,950	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of short-term borrowing and long-term debt		(52	)		(797	)
Payment of debt issuance costs		—			(70	)
Excess tax benefits from stock-based compensation		1,406			4,031
Exercise of stock options		1,329			3,105
Other		(97	)		—
NET CASH PROVIDED BY FINANCING ACTIVITIES		2,586			6,269
EFFECTS OF EXCHANGE RATE CHANGES ON CASH		3,690			2,293
NET DECREASE IN CASH AND CASH EQUIVALENTS		(165,589	)		(98,961	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		415,209			391,142
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	249,620		$	292,181
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest (net of amount capitalized)	$	618		$	892
Income taxes (net of refunds)	$	6,853		$	13,903

The Babcock & Wilcox Company

Business Segment Information

For the Periods Ended March 31, 2012 and 2011

(In thousands of U.S. dollars)

	THREE MONTHS ENDED
	3/31/12				3/31/11
REVENUES:
Power Generation	$	414,273			$	356,184
Nuclear Operations		250,178				250,455
Technical Services		24,973				28,360
Nuclear Energy		86,586				65,262
Adjustments and Eliminations		(10,118	)			(8,984	)
TOTAL	$	765,892			$	691,277
SEGMENT INCOME:
Power Generation	$	27,979			$	26,633
Nuclear Operations		48,002				30,450
Technical Services		14,618				12,142
Nuclear Energy		(16,827	)			(37,478	)
SUBTOTAL		73,772				31,747
Corporate		(8,061	)			(9,846	)
TOTAL	$	65,711			$	21,901
EQUITY IN INCOME OF INVESTEES:
Power Generation	$	3,822			$	6,010
Nuclear Operations		0				0
Technical Services		13,535				9,351
Nuclear Energy		0				0
TOTAL	$	17,357			$	15,361
PENSION EXPENSE:
Power Generation	$	16,439			$	15,928
Nuclear Operations		10,371				8,946
Technical Services		698				634
Nuclear Energy		1,225				1,181
Corporate		1,946				1,680
TOTAL	$	30,679			$	28,369
DEPRECIATION AND AMORTIZATION:
Power Generation	$	4,588			$	4,720
Nuclear Operations		8,489				10,391
Technical Services		74				66
Nuclear Energy		1,545				1,181
Corporate		3,019				2,957
TOTAL	$	17,715			$	19,315
RESEARCH AND DEVELOPMENT, NET:				��
Power Generation	$	4,839			$	2,994
Nuclear Operations		119				11
Technical Services		215				0
Nuclear Energy		23,863				14,303
TOTAL	$	29,036			$	17,308
CAPITAL EXPENDITURES:
Power Generation	$	5,731			$	4,139
Nuclear Operations		12,774				11,766
Technical Services		0				0
Nuclear Energy		865				2,463
Corporate		2,071				2,385
TOTAL	$	21,441			$	20,753
BACKLOG:
Power Generation	$	2,650,767			$	1,500,655
Nuclear Operations		2,931,859				2,931,001
Technical Services		21,783				3,009
Nuclear Energy		350,068				471,897
TOTAL	$	5,954,477			$	4,906,562