Babcock & Wilcox Announces Third Quarter 2016 Results
- Third Quarter GAAP EPS of $0.18, Adjusted EPS of $0.24
- Renewable segment revenues increased 43%
- Completed original $100 Million Share Repurchase Authorization
(CHARLOTTE, N.C. – November 2, 2016) – Babcock & Wilcox Enterprises, Inc. (B&W) (NYSE:BW) announced today third quarter 2016 revenues of $411.0 million, a decrease of $9.0 million, or 2.1%, compared to the third quarter of 2015. The GAAP earnings per share for the third quarter of 2016 was $0.18 compared to earnings per share of $0.11 for the third quarter of 2015. Our adjusted earnings per share, which excludes restructuring activities, acquisition and integration costs, non-cash mark-to-market adjustments for pension and other post-retirement benefits, and spin-off transaction costs, was $0.24 for the three months ended September 30, 2016 compared to adjusted earnings per share of $0.25 in the prior year period.
”We remain on track to achieve our forecasted results in 2016 despite some reluctance on the part of our power customers to invest, and continue to expect strength moving into 2017 as we remain focused on revenue diversification, margin improvement and excellence in project execution," said Mr. E. James Ferland, Chairman and Chief Executive Officer.
Results of Operations
Consolidated revenues for the third quarter of 2016 were $411.0 million, a decrease of $9.0 million, compared to $420.0 million for the third quarter of 2015, due primarily to decreased volume in our Power segment partially offset by an increase in revenues from our Renewable segment and contributions from newly acquired B&W SPIG within our Industrial segment. The GAAP operating income for the third quarter of 2016 was $11.1 million as compared to operating income of $9.6 million in the third quarter of 2015. The adjusted operating income in the third quarter of 2016 was $15.0 million, a decrease of $6.9 million compared to adjusted operating income of $21.9 million in the third quarter of 2015, due to lower volume in our Power segment and accelerated intangible amortization expense related to the acquisition of B&W SPIG, partially offset by higher gross profit margin in the Power segment and reductions in overhead costs.
Third quarter 2016 revenues for the Power segment decreased 29% to $209.8 million compared to $294.2 million in revenues in the prior year period. Revenues decreased as a result of lower oil sands work in Canada and lower power plant retrofit activity. Gross profit in the Power segment in the third quarter 2016 was $48.9 million, compared to $47.6 million in the prior year period. Gross profit margin improved year over year as a result of good project performance and benefits from our restructuring activities in the third quarter of 2016, while a litigation settlement and a contract loss impacted the third quarter of 2015.
Revenues in the Renewable segment were $124.3 million for the third quarter of 2016, versus $86.9 million in the corresponding period in 2015, an increase of $37.4 million driven by an increased level of activity on our renewable energy contracts compared to the prior year. The Renewable segment gross profit of $18.6 million in the third quarter of 2016 was $1.1 million higher than the $17.5 million gross profit reported in the prior year third quarter due to the increased volume. "We would normally expect higher gross margin from our Renewable segment, but in the short term we continue to recognize revenue from our challenged European renewable contract at zero gross profit margin," said Ferland. "During the third quarter, the net estimated costs to complete the project improved by $1.0 million with site productivity related cost increases
more than offset by a probable project related insurance recovery. Ramp down of construction activities on the site is underway, and will continue into early 2017 as we complete key milestones on this project."
The Industrial segment contributed $76.8 million in revenues for the third quarter of 2016 compared to $38.9 million in the third quarter of 2015, an increase of $37.9 million due to the addition of B&W SPIG, our global cooling system and services business, which we acquired on July 1, 2016. Gross profit in the Industrial segment was $14.6 million in the third quarter of 2016, a $1.2 million increase compared to $13.4 million in the prior year period. B&W SPIG contributed $4.2 million of gross profit in the segment. The B&W MEGTEC division gross profit was $10.4 million, $3.0 million lower than the prior year due to a change in revenue mix.
Liquidity
The Company’s cash and cash equivalents balance, net of restricted cash, decreased $185.9 million for the quarter to $65.1 million at the end of the third quarter of 2016, which was mainly driven by the purchase of SPIG S.p.A for approximately $172 million and $25.9 million of share repurchases. We had outstanding balances totaling $44.7 million on our revolving credit facilities as of September 30, 2016, which includes foreign revolving debt acquired with B&W SPIG.
Share Repurchase Program
The Company repurchased 1.6 million shares of our common stock for $25.9 million during the third quarter of 2016 under a $100 million share repurchase program that was authorized in 2015 by the Board of Directors. We completed the program on September 30, 2016 having purchased 5.4 million shares since July 1, 2015. On August 4, 2016, a new $100 million share repurchase authorization was established and it remains available.
2016 Outlook
Revenue guidance for 2016 is reduced from $1.8 billion to $1.7 billion due to challenging Industrial and Power markets. The Company reaffirms adjusted EPS guidance of $0.63 to $0.83. Adjusted EPS excludes restructuring activities, acquisition and integration costs, non-cash mark-to-market adjustments for pension and other post-retirement benefits, and spin-off transaction costs. As more fully described in Exhibit 1, Management is unable to reconcile without unreasonable effort the Company's forecasted range of adjusted EPS for the full year to a comparable GAAP range.
Conference Call to Discuss Third Quarter 2016 Results
Date: Thursday, November 3, 2016, at 8:30 a.m. EST
Live Webcast: Investor Relations section of website at www.babcock.com
Forward-Looking Statements
B&W cautions that this release contains forward-looking statements, including, without limitation, statements relating to our strategic objectives; management’s expectations regarding the industries in which we operate; our guidance and forecasts for 2016; our projected operating margin improvements, savings and restructuring costs; project execution; and growth through acquisitions. 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 realize anticipated savings and operational benefits from our restructuring plan; our ability to successfully integrate SPIG and realize the expected synergies from the acquisition; our ability to realize the benefits of expected cross-selling opportunities from the SPIG acquisition; changes in the jurisdictional mix of our income and losses; disruptions experienced with customers and suppliers; the inability to retain key personnel; adverse changes in the industries in which we operate; delays, changes or termination of contracts in backlog; the timing and amount of repurchases of our common stock, if any; and the inability to grow and diversify through acquisitions. 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 most recent annual report on Form 10-K 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
Headquartered in Charlotte, N.C., Babcock & Wilcox is a global leader in energy and environmental technologies and services for the power and industrial markets. B&W companies employ approximately 5,700 people around the world. Follow us on Twitter @BabcockWilcox and learn more at www.babcock.com.
# # #
Investor Contact: Media Contact:
Jude Broussard Ryan Cornell
| |
| Vice President, Investor Relations | Public Relations |
Babcock & Wilcox Babcock & Wilcox
704.625.4944 » investors@babcock.com 330.860.1345 » rscornell@babcock.com
Exhibit 1
Babcock & Wilcox Enterprises, Inc.
Reconciliation of Non-GAAP Operating Income and Earnings Per Share(1)(2)
(In millions, except per share amounts)
|
| | | | | | |
| | Three Months Ended September 30, 2016 |
| | GAAP | Restructuring | Acquisition and Integration Costs | Pension &
OPEB MTM
(Gain) / Loss | Spin Costs | Non-GAAP |
| Operating income (loss) | $11.1 | $2.0 | $0.8 | $0.6 | $0.4 | $15.0 |
| Other income (expense) | (0.5) | — | — | — | — | (0.5) |
| Income tax (expense) benefit | (1.6) | (0.7) | 0.2 | (0.2) | — | (2.4) |
| Net income (loss) | $9.0 | $1.3 | $1.0 | $0.5 | $0.4 | $12.1 |
| Net loss attributable to non-controlling interest | (0.1) | — | — | — | — | (0.1) |
| Net income (loss) attributable to shareholders | $8.9 | $1.3 | $1.0 | $0.5 | $0.4 | $12.0 |
| | | | | | | |
| Diluted EPS - continuing operations | $0.18 | $0.03 | $0.02 | $0.01 | $0.01 | $0.24 |
| | | | | | | |
| Income tax rate | 15.2% | | | | | 16.3% |
|
| | | | | |
| | Three Months Ended September 30, 2015 |
| | GAAP | Litigation Settlement | Spin Costs | Restructuring | Non-GAAP |
| Operating income (loss) | $9.6 | $9.6 | $1.6 | $1.1 | $21.9 |
| Other income (expense) | (1.6) | — | — | — | (1.6) |
| Income tax (expense) benefit | (1.8) | (3.7) | (0.6) | (0.4) | (6.5) |
| Net income (loss) | $6.3 | $5.8 | $1.0 | $0.7 | $13.8 |
| Net loss attributable to non-controlling interest | (0.1) | — | — | — | (0.1) |
| Net income (loss) attributable to shareholders | $6.2 | $5.8 | $1.0 | $0.7 | $13.7 |
| | | | | | |
| Diluted EPS - continuing operations | $0.11 | $0.11 | $0.02 | $0.01 | $0.25 |
| | | | | | |
| Income tax rate | 22.0% | | | | 32.1% |
|
| | | | | | |
| | Nine Months Ended September 30, 2016 |
| | GAAP | Restructuring | Pension &
OPEB MTM
(Gain) / Loss | Spin Costs | Acquisition and Integration Costs | Non-GAAP |
| Operating income (loss) | $(44.2) | $34.6 | $30.5 | $3.4 | $2.8 | $27.1 |
| Other income (expense) | (0.4) | — | — | — | — | (0.4) |
| Income tax (expense) benefit | 0.8 | 0.4 | (11.1) | 0.3 | (0.6) | (10.3) |
| Net income (loss) | $(43.8) | $35.0 | $19.4 | $3.7 | $2.2 | $16.5 |
| Net loss attributable to non-controlling interest | (0.3) | — | — | — | — | (0.3) |
| Net income (loss) attributable to shareholders | $(44.1) | $35.0 | $19.4 | $3.7 | $2.2 | $16.2 |
| | | | | | | |
| Diluted EPS - continuing operations | $(0.87) | $0.69 | $0.38 | $0.07 | $0.04 | $0.32 |
| | | | | | | |
| Income tax rate | 1.8% | | | | | 38.4% |
|
| | | | | | | |
| | Nine Months Ended September 30, 2015 |
| | GAAP | Litigation Settlement | Impairments | Restructuring | NE Sgmt Allocation | Spin costs | Non-GAAP |
| Operating income (loss) | $31.8 | $9.6 | $9.0 | $8.7 | $2.7 | $2.5 | $64.3 |
| Other income (expense) | (1.7) | — | — | — | — | — | (1.7) |
| Income tax (expense) benefit | (8.4) | (3.7) | (3.4) | (3.1) | (0.7) | (1.0) | (20.3) |
| Net income (loss) | $21.8 | $5.8 | $5.6 | $5.6 | $2.0 | $1.6 | $42.3 |
| Net loss attributable to non-controlling interest | (0.2) | — | — | — | — | — | (0.2) |
| Net income (loss) attributable to shareholders | $21.5 | $5.8 | $5.6 | $5.6 | $2.0 | $1.6 | $42.1 |
| | | | | | | | |
| Diluted EPS - continuing operations | $0.40 | $0.11 | $0.10 | $0.10 | $0.04 | $0.03 | $0.78 |
| | | | | | | | |
| Income tax rate | 27.8% | | | | | | 32.5% |
(1) Figures may not be clerically accurate due to rounding.
(2) 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 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 B&W’s ongoing operations.
2016 Outlook
Management has provided full year adjusted earnings per diluted share ("adjusted EPS") guidance of $0.63 to $0.83. It is not possible for management to identify the amount or significance of future adjustments associated with potential mark to market adjustments to our pension and other postretirement benefit plan liabilities or other non-routine costs that we adjust in our presentation of adjusted EPS guidance. These items are dependent on future events and/or market inputs that are not reasonably estimable at this time. Accordingly, management is unable to reconcile without unreasonable effort the Company's forecasted range of adjusted EPS for the full year included in the 2016 Outlook section of this earnings release to a comparable GAAP range. However, items excluded from our adjusted EPS guidance include the historical adjustments noted in the tables above, and our adjusted EPS guidance also excludes future estimable adjusting items, including charges relating to previously announced restructuring initiatives of $0.08-$0.16 per share, additional spin costs of approximately $0.01 per share and additional acquisition and integration costs of approximately $0.01 per share.
Exhibit 2
Babcock & Wilcox Enterprises, Inc.
Condensed Consolidated and Combined Statements of Operations(1)
(In millions, except per share amounts)
|
| | | | | | | | | | | | | | | |
| | Three Months Ended
September 30, | | Nine Months Ended September 30, |
| | 2016 | | 2015 | | 2016 | | 2015 |
| Revenues | $ | 411.0 |
| | $ | 420.0 |
| | $ | 1,198.3 |
| | $ | 1,254.6 |
|
| Costs and expenses: | | | | | | | |
| Cost of operations | 337.2 |
| | 342.1 |
| | 1,018.3 |
| | 1,011.4 |
|
| Research and development costs | 2.4 |
| | 4.0 |
| | 8.3 |
| | 12.5 |
|
| Losses on asset disposals and impairments, net | — |
| | — |
| | — |
| | 9.0 |
|
| Selling, general and administrative expenses | 60.7 |
| | 62.6 |
| | 182.8 |
| | 178.5 |
|
| Restructuring activities and spin-off transaction costs | 2.4 |
| | 2.7 |
| | 38.0 |
| | 11.3 |
|
| Total costs and expenses | 402.6 |
| | 411.4 |
| | 1,247.4 |
| | 1,222.7 |
|
| Equity in income (loss) of investees | 2.8 |
| | 1.0 |
| | 4.9 |
| | (0.1 | ) |
| Operating income (loss) | 11.1 |
| | 9.6 |
| | (44.2 | ) | | 31.8 |
|
| Other income (expense): | | | | | | | |
| Interest income | 0.1 |
| | 0.1 |
| | 0.7 |
| | 0.4 |
|
| Interest expense | (0.4 | ) | | (0.4 | ) | | (1.2 | ) | | (0.7 | ) |
| Other – net | (0.2 | ) | | (1.3 | ) | | 0.1 |
| | (1.4 | ) |
| Total other income (expense) | (0.5 | ) | | (1.6 | ) | | (0.4 | ) | | (1.7 | ) |
| Income (loss) before income tax expense | 10.6 |
| | 8.1 |
| | (44.6 | ) | | 30.1 |
|
| Income tax expense (benefit) | 1.6 |
| | 1.8 |
| | (0.8 | ) | | 8.4 |
|
| Income (loss) from continuing operations | 9.0 |
| | 6.3 |
| | (43.8 | ) | | 21.8 |
|
| Income from discontinued operations, net of tax | — |
| | — |
| | — |
| | 2.8 |
|
| Net income (loss) | 9.0 |
| | 6.3 |
| | (43.8 | ) | | 24.6 |
|
| Net income attributable to noncontrolling interest | (0.1 | ) | | (0.1 | ) | | (0.3 | ) | | (0.2 | ) |
| Net income (loss) attributable to shareholders | $ | 8.9 |
| | $ | 6.2 |
| | $ | (44.1 | ) | | $ | 24.3 |
|
| | | | | | | | |
| Amounts attributable to shareholders: | | | | | | | |
| Income (loss) from continuing operations | $ | 8.9 |
| | $ | 6.2 |
| | $ | (44.1 | ) | | $ | 21.5 |
|
| Income from discontinued operations, net of tax | — |
| | — |
| | — |
| | 2.8 |
|
| Net income (loss) attributable to shareholders | $ | 8.9 |
| | $ | 6.2 |
| | $ | (44.1 | ) | | $ | 24.3 |
|
| | | | | | | | |
| Basic earnings (loss) per share - continuing operations | $ | 0.18 |
| | $ | 0.11 |
| | $ | (0.87 | ) | | $ | 0.40 |
|
| Basic earnings per share - discontinued operations | — |
| | — |
| | — |
| | 0.05 |
|
| Basic earnings (loss) per share | $ | 0.18 |
| | $ | 0.11 |
| | $ | (0.87 | ) | | $ | 0.45 |
|
| | | | | | | | |
| Diluted earnings (loss) per share - continuing operations | $ | 0.18 |
| | $ | 0.11 |
| | $ | (0.87 | ) | | $ | 0.40 |
|
| Diluted earnings per share - discontinued operations | — |
| | — |
| | — |
| | 0.05 |
|
| Diluted earnings (loss) per share | $ | 0.18 |
| | $ | 0.11 |
| | $ | (0.87 | ) | | $ | 0.45 |
|
| | | | | | | | |
| Shares used in the computation of earnings per share: | | | | | | | |
| Basic | 49.6 |
| | 53.8 |
| | 50.6 |
| | 53.6 |
|
| Diluted | 49.9 |
| | 53.8 |
| | 50.6 |
| | 53.7 |
|
(1) Figures may not be clerically accurate due to rounding.
Exhibit 3
Babcock & Wilcox Enterprises, Inc.
Condensed Consolidated and Combined Balance Sheets(1)
(In millions, except per share amount)
|
| | | | | | | |
| | September 30, 2016 | | December 31, 2015 |
| Cash and cash equivalents | $ | 65.1 |
| | $ | 365.2 |
|
| Restricted cash and cash equivalents | 28.9 |
| | 37.1 |
|
| Accounts receivable – trade, net | 304.4 |
| | 291.2 |
|
| Accounts receivable – other | 66.8 |
| | 44.8 |
|
| Contracts in progress | 168.6 |
| | 128.2 |
|
| Inventories | 99.5 |
| | 90.1 |
|
| Other current assets | 39.4 |
| | 21.5 |
|
| Total current assets | 772.6 |
| | 978.2 |
|
| Property, plant and equipment - gross | 336.9 |
| | 330.0 |
|
| Accumulated depreciation | (197.9 | ) | | (184.3 | ) |
| Net property, plant and equipment | 139.0 |
| | 145.7 |
|
| Goodwill | 271.3 |
| | 201.1 |
|
| Deferred income taxes | 185.5 |
| | 190.7 |
|
| Investments in unconsolidated affiliates | 113.4 |
| | 92.2 |
|
| Intangible assets | 82.0 |
| | 37.8 |
|
| Other assets | 15.3 |
| | 17.4 |
|
| Total assets | $ | 1,579.2 |
| | $ | 1,663.0 |
|
| |
| Revolving debt | $ | 44.7 |
| | $ | 2.0 |
|
| Accounts payable | 190.2 |
| | 175.2 |
|
| Accrued employee benefits | 46.9 |
| | 51.5 |
|
| Advance billings on contracts | 169.2 |
| | 229.4 |
|
| Accrued warranty expense | 45.0 |
| | 39.8 |
|
| Other accrued liabilities | 65.6 |
| | 63.5 |
|
| Total current liabilities | 561.6 |
| | 561.4 |
|
| Accumulated postretirement benefit obligations | 28.3 |
| | 27.8 |
|
| Pension liabilities | 293.6 |
| | 282.1 |
|
| Other liabilities | 53.3 |
| | 43.4 |
|
| Total liabilities | 936.8 |
| | 914.6 |
|
| Commitments and contingencies | | | |
| Stockholders' equity: | | | |
| Common stock, par value $0.01 per share, authorized 200.0 shares; issued 48.7 and 52.5 shares at September 30, 2016 and December 31, 2015, respectively | 0.5 |
| | 0.5 |
|
| Capital in excess of par value | 804.4 |
| | 790.5 |
|
Treasury stock at cost, 5.6 and 1.4 shares at September 30, 2016 and
December 31, 2015, respectively | (103.8 | ) | | (25.4 | ) |
| Retained earnings (deficit) | (43.1 | ) | | 1.0 |
|
| Accumulated other comprehensive loss | (24.2 | ) | | (18.9 | ) |
| Stockholders' equity attributable to shareholders | 633.8 |
| | 747.7 |
|
| Noncontrolling interest | 8.6 |
| | 0.7 |
|
| Total stockholders' equity | 642.4 |
| | 748.4 |
|
| Total liabilities and stockholders' equity | $ | 1,579.2 |
| | $ | 1,663.0 |
|
(1) Figures may not be clerically accurate due to rounding.
Exhibit 4
Babcock & Wilcox Enterprises, Inc.
Condensed Consolidated and Combined Statements of Cash Flows(1)
(In millions)
|
| | | | | | | |
| | Nine Months Ended September 30, |
| | 2016 | | 2015 |
| Cash flows from operating activities: | | | |
| Net income (loss) | $ | (43.8 | ) | | $ | 24.6 |
|
| Non-cash items included in net income (loss): | | | |
| Depreciation and amortization | 27.4 |
| | 28.9 |
|
| (Income) loss of equity method investees, net of dividends | (4.9 | ) | | 0.1 |
|
| Losses on asset disposals and impairments | 14.9 |
| | 11.3 |
|
| Write off of accrued claims receivable, net | — |
| | 7.8 |
|
| Provision for (benefit from) deferred taxes | (7.6 | ) | | (1.5 | ) |
| Recognition of (gains) losses for pension and postretirement plans | 30.6 |
| | 0.3 |
|
| Stock-based compensation charges and excess tax benefits | 13.9 |
| | 2.5 |
|
| Changes in assets and liabilities: | | | |
| Accounts receivable | 49.1 |
| | (23.2 | ) |
| Accrued insurance receivable | (15.0 | ) | | — |
|
| Contracts in progress and advance billings on contracts | (54.0 | ) | | 48.5 |
|
| Inventories | (8.0 | ) | | 0.5 |
|
| Income taxes | 6.3 |
| | (12.2 | ) |
| Accounts payable | (32.4 | ) | | (7.8 | ) |
| Accrued and other current liabilities | (3.7 | ) | | 26.9 |
|
| Pension liabilities, accrued postretirement and employee benefits | (21.2 | ) | | (7.1 | ) |
| Other, net | 8.6 |
| | (6.5 | ) |
| Net cash from operating activities | (39.8 | ) | | 93.0 |
|
| Cash flows from investing activities: | | | |
| Decrease in restricted cash and cash equivalents | 8.3 |
| | 1.6 |
|
| Investment in equity method investees | (26.2 | ) | | — |
|
| Purchases of property, plant and equipment | (20.4 | ) | | (21.9 | ) |
| Acquisition of business, net of $26 million cash acquired | (143.0 | ) | | — |
|
| Purchases of available-for-sale securities | (30.7 | ) | | (9.9 | ) |
| Sales and maturities of available-for-sale securities | 21.0 |
| | 6.0 |
|
| Other | (0.6 | ) | | (0.8 | ) |
| Net cash from investing activities | (191.6 | ) | | (25.0 | ) |
| Cash flows from financing activities | | | |
| Borrowings under our revolving credit facilities | 75.5 |
| | — |
|
| Repayments of our revolving credit facilities | (42.2 | ) | | — |
|
| Repayments of SPIG revolving credit facilities after acquisition | (18.3 | ) | | — |
|
| Net transfers from former Parent | — |
| | 80.6 |
|
| Repurchase of shares of common stock | (78.4 | ) | | (1.3 | ) |
| Other | (1.2 | ) | | (0.3 | ) |
| Net cash from financing activities | (64.6 | ) | | 79.1 |
|
| Effects of exchange rate changes on cash | (4.1 | ) | | (6.4 | ) |
| Cash flows from continuing operations | (300.1 | ) | | 140.7 |
|
| Operating cash flows from discontinued operations | — |
| | (25.2 | ) |
| Net increase (decrease) in cash and equivalents | (300.1 | ) | | 115.5 |
|
| Cash and equivalents, beginning of period | 365.2 |
| | 218.7 |
|
| Cash and equivalents, end of period | $ | 65.1 |
| | $ | 334.2 |
|
(1) Figures may not be clerically accurate due to rounding.
Exhibit 5
Babcock & Wilcox Enterprises, Inc.
Segment Information(1)
(In millions)
|
| | | | | | | | | | | | | | | |
| SEGMENT RESULTS: | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2016 | | 2015 | | 2016 | | 2015 |
| REVENUES: | | | | | | | |
| Power | $ | 209.8 |
| | $ | 294.2 |
| | $ | 757.4 |
| | $ | 907.9 |
|
| Renewable | 124.3 |
| | 86.9 |
| | 293.6 |
| | 223.4 |
|
| Industrial | 76.8 |
| | 38.9 |
| | 147.3 |
| | 123.4 |
|
| | 410.9 |
| | 420.0 |
| | 1,198.3 |
| | 1,254.6 |
|
| | | | | | | | |
| GROSS PROFIT: | | | | | | | |
| Power | 48.9 |
| | 47.6 |
| | 170.9 |
| | 176.3 |
|
| Renewable | 18.6 |
| | 17.5 |
| | 14.5 |
| | 36.6 |
|
| Industrial | 14.6 |
| | 13.4 |
| | 33.5 |
| | 37.5 |
|
| Intangible asset amortization | (7.8 | ) | | (0.5 | ) | | (8.8 | ) | | (7.2 | ) |
| Mark to market adjustment included in cost of operations | (0.6 | ) | | — |
| | (30.1 | ) | | — |
|
|
| | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2016 | | 2015 | | 2016 | | 2015 |
| AMORTIZATION EXPENSE | | | | | | | |
| Power | 0.3 |
| | 0.3 |
| | 0.8 |
| | 0.9 |
|
| Renewable | 0.4 |
| | 0.2 |
| | 0.9 |
| | 1.0 |
|
| Industrial | 8.1 |
| | 0.9 |
| | 10.2 |
| | 8.0 |
|
| | 8.8 |
| | 1.4 |
| | 11.9 |
| | 9.9 |
|
| DEPRECIATION EXPENSE | | | | | | | |
| Power | 2.4 |
| | (0.2 | ) | | 7.6 |
| | 15.0 |
|
| Renewable | 0.3 |
| | 0.4 |
| | 1.0 |
| | 1.0 |
|
| Industrial | 0.8 |
| | 0.1 |
| | 1.1 |
| | 1.0 |
|
| Corporate | 2.7 |
| | 5.7 |
| | 5.8 |
| | 1.9 |
|
| | 6.2 |
| | 6.0 |
| | 15.5 |
| | 19.0 |
|
|
| | | | | | | | | | | | | | | |
| BOOKINGS: | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2016 | | 2015 | | 2016 | | 2015 |
| Power | $ | 198 |
| | $ | 182 |
| | $ | 623 |
| | $ | 663 |
|
| Renewable | (2 | ) | | 201 |
| | 124 |
| | 643 |
|
| Industrial | 70 |
| | 35 |
| | 133 |
| | 143 |
|
| | $ | 266 |
| | $ | 418 |
| | $ | 880 |
| | $ | 1,449 |
|
|
| | | | | | | |
| BACKLOG: | As of September 30, |
| | 2016 | | 2015 |
| Power | $ | 668 |
| | $ | 791 |
|
| Renewable | 1,289 |
| | 1,559 |
|
| Industrial | 233 |
| | 92 |
|
| | $ | 2,190 |
| | $ | 2,442 |
|
(1) Figures may not be clerically accurate due to rounding.
Exhibit 6
Babcock & Wilcox Enterprises, Inc.
Recast Historical Financial Information(1)
(In millions)
During the third quarter of 2016, B&W changed its operating segments. The amounts in the schedule below have been restated to reflect the historical financial information in the new operating segments.
|
| | | | | | | | | | | | | | | | | | | | | |
| Three months ended: | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 |
| REVENUES: | | | | | | | |
| Power | $ | 209.8 |
| $ | 259.7 |
| $ | 287.9 |
| $ | 327.1 |
| $ | 294.2 |
| $ | 317.7 |
| $ | 296.0 |
|
| Renewable | 124.3 |
| 85.5 |
| 83.8 |
| 115.2 |
| 86.9 |
| 76.4 |
| 60.0 |
|
| Industrial | 76.8 |
| 38.0 |
| 32.5 |
| 60.3 |
| 38.9 |
| 43.4 |
| 41.1 |
|
| | 410.9 |
| 383.2 |
| 404.2 |
| 502.6 |
| 420.0 |
| 437.5 |
| 397.1 |
|
| | | | | | | | |
| GROSS PROFIT: | | | | | | |
| Power | $ | 48.9 |
| $ | 62.5 |
| $ | 59.5 |
| $ | 71.4 |
| $ | 47.6 |
| $ | 64.3 |
| $ | 64.3 |
|
| Renewable | 18.6 |
| (17.5 | ) | 13.4 |
| 21.1 |
| 17.5 |
| 9.0 |
| 10.1 |
|
| Industrial | 14.6 |
| 11.1 |
| 7.8 |
| 17.3 |
| 13.4 |
| 11.8 |
| 12.4 |
|
| Intangible asset amortization | (7.8 | ) | (0.6 | ) | (0.5 | ) | (0.5 | ) | (0.5 | ) | (3.2 | ) | (3.5 | ) |
| Mark to market adjustments | (0.6 | ) | (29.5 | ) | — |
| (44.3 | ) | — |
| — |
| — |
|
| | | | | | | | |
| AMORTIZATION EXPENSE: | | | | | | |
| Cost of operations | $ | 7.8 |
| $ | 0.6 |
| $ | 0.5 |
| $ | 0.5 |
| $ | 0.5 |
| $ | 3.2 |
| $ | 3.5 |
|
| SG&A | 1.0 |
| 1.0 |
| 1.0 |
| 1.0 |
| 0.9 |
| 0.7 |
| 1.1 |
|
| | 8.8 |
| 1.6 |
| 1.5 |
| 1.5 |
| 1.4 |
| 3.9 |
| 4.6 |
|
| | | | | | | | |
| DEPRECIATION EXPENSE: | | | | | | |
| Cost of operations | $ | 3.0 |
| $ | 2.5 |
| $ | 2.8 |
| $ | 2.3 |
| $ | 4.0 |
| $ | 5.2 |
| $ | 6.3 |
|
| SG&A | 3.2 |
| 2.0 |
| 2.0 |
| 2.2 |
| 2.0 |
| 0.8 |
| 0.7 |
|
| | 6.2 |
| 4.5 |
| 4.8 |
| 4.5 |
| 6.0 |
| 6.0 |
| 7.0 |
|
| | | | | | | | |
| BOOKINGS: | | | | | | | |
| Power | $ | 198.4 |
| $ | 160.6 |
| $ | 263.6 |
| $ | 339.3 |
| $ | 181.6 |
| $ | 182.4 |
| $ | 298.6 |
|
| Renewable | (1.7 | ) | 21.1 |
| 104.4 |
| 14.9 |
| 201.1 |
| 64.8 |
| 376.7 |
|
| Industrial | 69.6 |
| 31.1 |
| 32.5 |
| 35.1 |
| 35.0 |
| 52.2 |
| 55.8 |
|
| | 266.3 |
| 212.8 |
| 400.5 |
| 389.3 |
| 417.7 |
| 299.4 |
| 731.1 |
|
| | | | | | | | |
| BACKLOG: | | | | | | | |
| Power | $ | 668.1 |
| $ | 679.5 |
| $ | 778.6 |
| $ | 803.0 |
| $ | 790.8 |
| $ | 903.4 |
| $ | 1,038.8 |
|
| Renewable | 1,288.6 |
| 1,414.7 |
| 1,479.0 |
| 1,458.4 |
| 1,558.6 |
| 1,444.4 |
| 1,456.0 |
|
| Industrial | 232.9 |
| 59.6 |
| 66.5 |
| 66.5 |
| 91.8 |
| 95.7 |
| 86.9 |
|
| | 2,189.6 |
| 2,153.8 |
| 2,324.1 |
| 2,327.9 |
| 2,441.2 |
| 2,443.5 |
| 2,581.7 |
|
(1) Figures may not be clerically accurate due to rounding.
