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News

Fourth Quarter 2014 Results

26 February 2015

Babcock & Wilcox Announces Fourth Quarter 2014 Results

- Record Fourth Quarter Revenue and Operating Income for Nuclear Operations Segment

  • Adjusted EPS Increases 23%, GAAP EPS Lower Primarily Due to a Mark to Market Actuarial Loss

    • Strong Bookings Continue to Fuel Growth for Power Generation Segment

    • Anticipated Spin-off of Power Generation Business Remains on Schedule

CHARLOTTE, NC – February 26, 2015 – The Babcock & Wilcox Company (NYSE: BWC) (“B&W” or the “Company”) today reported fourth quarter 2014 revenues of $837.1 million, an increase of $34.3 million, or 4.3%, from the fourth quarter of 2013. GAAP earnings per share for the fourth quarter of 2014 were a loss of $0.97 compared to $1.48 in the fourth quarter of 2013. Non-GAAP, or adjusted earnings per share, which excludes a $1.61 per share net impact of non-cash mark-to-market adjustments for pension and other post-retirement benefits, restructuring and spin-related costs and higher legal reserves for the quarter, were

$0.64 for the three months ended December 31, 2014 compared to $0.52 in the prior year period.

Revenues for the full year of 2014 were $2.92 billion, a decrease of 10.6% from the $3.27 billion recorded in 2013. GAAP earnings per share for the full year of 2014 were $0.27, compared to $3.07 in 2013. Full year 2014 adjusted earnings per share decreased 10.6% to $2.03 versus adjusted earnings per share of $2.27 in the prior year.

“B&W ended the year with a solid quarter and a strengthening backlog heading into 2015,” said Mr. E. James Ferland, President and Chief Executive Officer. “The Nuclear Operations business had a record year in 2014 with the highest revenue and operating income in its history. The NOG leadership team consistently drives focus on execution to create value for our customer and our shareholders. The Power Generation segment continued to deliver improved performance in the fourth quarter with strong revenues and additional international bookings for both coal and renewable power plants. Our strategy to drive international growth in the Power Generation business is generating the results we expected as demonstrated by the three projects announced since December, which puts this business in a solid position for the spin-off later this year.

Results of Operations

Consolidated revenues for the fourth quarter of 2014 were $837.1 million, an increase of 4.3%, compared to

$802.8 million for the fourth quarter of 2013. The Nuclear Operations segment revenues increased by

$50.4 million to $343.8 million from $293.4 million in the prior year period, primarily attributable to increased activity in the manufacturing of nuclear fuel and the impact of contract change orders that favorably impacted sales and margin in the quarter. Revenues in the Power Generation segment were

$444.6 million in the final three months of 2014, versus $408.0 million in the corresponding period in 2013, an increase of 9.0%, due to industrial environmental revenue following the MEGTEC acquisition, partially offset by the completion of new build environmental projects that were ongoing in the prior year period. Revenues from the Nuclear Energy segment were $40.5 million, compared to $104.7 million in the prior year period, a decrease of $64.2 million primarily attributable to management’s decision to exit the low margin nuclear projects business.

GAAP operating income for the fourth quarter of 2014 decreased $451.8 million to a loss of $156.5 million compared to $295.3 million in the same period of 2013, primarily due to the annual recognition of the pension and other post-retirement benefits mark-to-market adjustment. This adjustment resulted in an actuarial loss of $230.1 million in the quarter compared to a $222.7 million actuarial gain in the prior year period. GAAP operating income for the fourth quarter of 2014 also included $28.7 million related to an increase in legal reserves and restructuring initiatives, as well as $6.1 million of spin-related costs in preparation for the spin-off of the Power Generation business. Excluding these charges, adjusted operating income increased 25% in the fourth quarter of 2014 to $108.3 million, compared to adjusted operating income of $86.7 million in the fourth quarter of 2013.

Fourth quarter 2014 operating income in the Nuclear Operations segment increased $36.8 million from the same period last year to $90.4 million, attributable to the impact of contract change orders and continuing strong contract execution. The Nuclear Energy segment reported a loss of $18.6 million in the fourth quarter of 2014 compared to a $1.6 million loss in the prior year period, primarily attributable to an unfavorable jury verdict. Operating income in the Power Generation segment was $37.5 million in the fourth quarter of 2014, a $16.1 million decrease from $53.6 million in the 2013 period, primarily due to favorable contract performance in the fourth quarter of 2013 and a lower level of equity income in 2014. Technical Services segment operating income decreased $10.0 million from $10.4 million in the fourth quarter of 2013, due to the loss of the Pantex and Y-12 contracts and lower fee income from sites impacted by the Waste Isolation Plant drum containment issue. The operating income for mPower improved to a loss of $5.2 million compared to a $27.7 million loss in the same period in 2013 due to restructuring of the mPower program in 2014.

“The positive performance and significant momentum of the two core businesses at the end of the year reinforces our belief that the planned spin of the Power Generation business will result in two strong businesses with opportunities for increased growth,” continued Mr. Ferland. “We are on track to execute the spin in mid-summer, which we are confident will increase value for our customers and shareholders.

Liquidity and Debt

The Company’s cash and investments position, net of restricted cash, was $325.4 million at the end of the fourth quarter of 2014, representing a decrease of $35.9 million compared to $361.3 million as of December 31, 2013. This consolidated cash position includes $199.0 million related to foreign operations. For the full year 2014, the Company generated $74.9 million in cash from operations and borrowed $300.0 million through its Credit Agreement, using these funds to repurchase $149.8 million of its common stock, pay dividends of $43.5 million and expand its industrial environmental business through the acquisition of MEGTEC for $142.8 million, net of acquired cash.

As of December 31, 2014, outstanding balances under the Credit Agreement included a $300.0 million term loan, $0.0 million borrowed under the revolving credit facility, and letters of credit issued under the revolving credit facility totaling $171.9 million, resulting in $828.1 million of revolver availability at the end of the fourth 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, capital distribution programs, and product and geographic expansion opportunities.

Full Year 2015 Outlook

Management believes that providing 2015 full-year consolidated EPS guidance, given the planned spin-off of the Power Generation business mid-year, would not be insightful. Rather, the Company is providing the following segment guidance for 2015:

  • Nuclear Operations revenues consistent with record levels achieved in the last two years and expected operating margin in the high teens;

  • Technical Services operating income in the range of $15 to $20 million, mostly from equity income;

  • Nuclear Energy revenues in the $150 to $175 million range with operating margins in the low single digits;

  • Targeted mPower spending of approximately $15 million annually;

  • Power Generation’s revenue is expected to increase approximately 15%, through a combination of core growth and the full year of the MEGTEC acquisition. Power Generation’s operating margin is anticipated to increase to approximately 8%, net of MEGTEC amortization;

  • Adjusted tax rate for 2015 is expected to be in the range of 32% to 34%; and

  • Approximately 60% of annual earnings are expected to be realized in the third and fourth quarters.

Additional guidance for the two separate entities will be provided in the weeks preceding the spin-off planned for mid-summer 2015.

Conference Call to Discuss Fourth Quarter 2014 Results

Date: Thursday, February 26, 2015, 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 expected benefits associated with the planned spin-off of our Power Generation business; bookings, to the extent they may be viewed as an indicator of future revenues; and our 2015 outlook for B&W’s segments. 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 spin-off not being completed as anticipated or at all; delays or other difficulties in completing the spin-off, 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, 2014 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 December 31, 2014


GAAP


Spin Costs


Litigation


Centrus Impairment

Pension & OPEB MTM

(Gain) / Loss

Restructuring & Acquisitions


Non-GAAP


$ (156.5)


$ 6.1


$ 16.1


-


$ 230.1


$ 12.6


$ 108.3

(8.5)

-

-

4.2

0.5

-

(3.8)

61.5

(2.3)

(4.3)

-

(86.7)

(4.3)

(36.1)

$ (103.6)

$ 3.7

$ 11.8

$ 4.2

$ 143.8

$ 8.3

$ 68.4

0.3

-

-

-

-

-

0.3

$ (103.3)

$ 3.7

$ 11.8

$ 4.2

$ 143.8

$ 8.3

$ 68.6


$ (0.97)


$ 0.04


$ 0.11


$ 0.04


$ 1.35


$ 0.08


$ 0.64

37.2%

         

34.6%


GAAP


Spin Costs


Litigation


Centrus Impairment

Pension & OPEB MTM

(Gain) / Loss

Restructuring & Acquisitions


Non-GAAP


$ (156.5)


$ 6.1


$ 16.1


-


$ 230.1


$ 12.6


$ 108.3

(8.5)

-

-

4.2

0.5

-

(3.8)

61.5

(2.3)

(4.3)

-

(86.7)

(4.3)

(36.1)

$ (103.6)

$ 3.7

$ 11.8

$ 4.2

$ 143.8

$ 8.3

$ 68.4

0.3

-

-

-

-

-

0.3

$ (103.3)

$ 3.7

$ 11.8

$ 4.2

$ 143.8

$ 8.3

$ 68.6


$ (0.97)


$ 0.04


$ 0.11


$ 0.04


$ 1.35


$ 0.08


$ 0.64

37.2%

         

34.6%

Operating Income

Other Income / (Expense) Income Tax (Expense) / Benefit Net Income (Loss)

Net Loss Attributable to Non-Controlling Interest

Net Income (Loss) Attributable to The Babcock & Wilcox Company

Diluted Earnings per Common Share

Tax Rate

Three Months Ended December 31, 2013


GAAP

One-time tax (Benefit) / Charges

USEC

Impairment Charges

Pension & OPEB MTM

(Gain) / Loss

Restructuring & Acquisitions


Non-GAAP


$ 295.3


$ -


$ -


$ (222.7)


$ 14.1


$ 86.7

(20.0)

-

19.1

(0.2)

-

(1.0)

(114.4)

6.3

-

80.4

(4.2)

(31.8)

$ 161.0

$ 6.3

$ 19.1

$ (142.5)

$ 9.9

53.8

4.6

-

-

-

-

4.6

$ 165.6

$ 6.3

$ 19.1

$ (142.5)

$ 9.9

58.4


$ 1.48


$ 0.06


$ 0.17


$ (1.28)


$ 0.09


$ 0.52

41.5%

       

37.2%


GAAP

One-time tax (Benefit) / Charges

USEC

Impairment Charges

Pension & OPEB MTM

(Gain) / Loss

Restructuring & Acquisitions


Non-GAAP


$ 295.3


$ -


$ -


$ (222.7)


$ 14.1


$ 86.7

(20.0)

-

19.1

(0.2)

-

(1.0)

(114.4)

6.3

-

80.4

(4.2)

(31.8)

$ 161.0

$ 6.3

$ 19.1

$ (142.5)

$ 9.9

53.8

4.6

-

-

-

-

4.6

$ 165.6

$ 6.3

$ 19.1

$ (142.5)

$ 9.9

58.4


$ 1.48


$ 0.06


$ 0.17


$ (1.28)


$ 0.09


$ 0.52

41.5%

       

37.2%

Operating Income (Loss) Other Income / (Expense)

Income Tax (Expense) / Benefit Net Income (Loss)

Net Loss Attributable to Non-Controlling Interest

Net Income (Loss) Attributable to The Babcock & Wilcox Company

Diluted Earnings per Common Share

Tax Rate

Twelve Months Ended December 31, 2014


GAAP


Spin Costs


Litigation

Centrus Gain, net Impairment

Pension & OPEB MTM

(Gain) / Loss

Restructuring & Acquisitions


Non-GAAP


$ (2.6)


$ 6.1


$ 16.1


$ -


$ 241.2


$ 57.7


$ 318.4

8.1

-

-

(14.4)

0.5

-

(5.8)

16.0

(2.3)

(4.3)

-

(89.6)

(19.6)

(99.8)

$ 21.5

$ 3.7

$ 11.8

$ (14.4)

$ 152.1

$ 38.1

$ 212.8

7.9

-

-

-

-

-

7.9

$ 29.4

$ 3.7

$ 11.8

$ (14.4)

$ 152.1

$ 38.1

$ 220.7


$ 0.27


$ 0.03


$ 0.11


$ (0.13)


$ 1.40


$ 0.35


$ 2.03

(292.6%)

         

31.9%


GAAP


Spin Costs


Litigation

Centrus Gain, net Impairment

Pension & OPEB MTM

(Gain) / Loss

Restructuring & Acquisitions


Non-GAAP


$ (2.6)


$ 6.1


$ 16.1


$ -


$ 241.2


$ 57.7


$ 318.4

8.1

-

-

(14.4)

0.5

-

(5.8)

16.0

(2.3)

(4.3)

-

(89.6)

(19.6)

(99.8)

$ 21.5

$ 3.7

$ 11.8

$ (14.4)

$ 152.1

$ 38.1

$ 212.8

7.9

-

-

-

-

-

7.9

$ 29.4

$ 3.7

$ 11.8

$ (14.4)

$ 152.1

$ 38.1

$ 220.7


$ 0.27


$ 0.03


$ 0.11


$ (0.13)


$ 1.40


$ 0.35


$ 2.03

(292.6%)

         

31.9%

Operating Income

Other Income / (Expense) Income Tax (Expense) / Benefit Net Income (Loss)

Net Loss Attributable to Non-Controlling Interest

Net Income (Loss) Attributable to The Babcock & Wilcox Company

Diluted Earnings per Common Share

Tax Rate

Twelve Months Ended December 31, 2013


GAAP

One-time tax (Benefit) / Charges

USEC

Impairment Charges

Pension & OPEB MTM

(Gain) / Loss

Restructuring & Acquisitions


Non-GAAP


$ 536.4


$ -


$ -


$ (222.7)


$ 39.6


$ 353.2

(19.2)

-

19.1

(0.2)

-

(0.2)

(184.6)

6.3

-

80.4

(13.2)

(111.1)

$ 332.6

$ 6.3

$ 19.1

$ (142.5)

$ 26.4

241.9

13.5

-

-

-

-

13.5

$ 346.1

$ 6.3

$ 19.1

$ (142.5)

$ 26.4

255.3


$ 3.07


$ 0.06


$ 0.17


$ (1.26)


$ 0.23


$ 2.27

35.7%

       

31.5%


GAAP

One-time tax (Benefit) / Charges

USEC

Impairment Charges

Pension & OPEB MTM

(Gain) / Loss

Restructuring & Acquisitions


Non-GAAP


$ 536.4


$ -


$ -


$ (222.7)


$ 39.6


$ 353.2

(19.2)

-

19.1

(0.2)

-

(0.2)

(184.6)

6.3

-

80.4

(13.2)

(111.1)

$ 332.6

$ 6.3

$ 19.1

$ (142.5)

$ 26.4

241.9

13.5

-

-

-

-

13.5

$ 346.1

$ 6.3

$ 19.1

$ (142.5)

$ 26.4

255.3


$ 3.07


$ 0.06


$ 0.17


$ (1.26)


$ 0.23


$ 2.27

35.7%

       

31.5%

Operating Income

Other Income / (Expense) Income Tax (Expense) / Benefit Net Income (Loss)

Net Loss Attributable to Non-Controlling Interest

Net Income (Loss) Attributable to The Babcock & Wilcox Company

Diluted Earnings per Common Share

Tax Rate

* May not foot due to rounding.

The Company 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

December 31,

 

2014

2013

(In thousands)

Current Assets:

   

Cash and cash equivalents

$ 312,969

$ 346,116

Restricted cash and cash equivalents

54,497

45,945

Investments

4,837

10,748

Accounts receivable – trade, net

430,600

360,323

Accounts receivable – other

44,299

45,480

Contracts in progress

398,373

370,820

Inventories

108,637

113,058

Deferred income taxes

73,479

97,170

Other current assets

46,111

47,764


Total Current Assets


1,473,802


1,437,424


Property, Plant and Equipment


1,167,581


1,126,683

Less accumulated depreciation

730,946

679,604


Net Property, Plant and Equipment


436,635


447,079


Investments


7,606


4,426


Goodwill


379,192


281,708


Deferred Income Taxes


245,766


127,076


Investments in Unconsolidated Affiliates


140,504


184,831


Intangible Assets


110,873


81,521


Other Assets


62,558


45,088


TOTAL


$ 2,856,936


$ 2,609,153

CONDENSED CONSOLIDATED BALANCE SHEETS LIABILITIES AND STOCKHOLDERS’ EQUITY

December 31,

 

2014

 

2013

(In thousands)

Current Liabilities:

     

Notes payable and current maturities of long-term debt

$ 18,215

 

$ 4,671

Accounts payable

247,629

 

319,774

Accrued employee benefits

124,897

 

163,833

Accrued liabilities – other

97,207

 

58,192

Advance billings on contracts

255,535

 

317,771

Accrued warranty expense

53,624

 

56,436

Income taxes payable

22,529

 

6,551


Total Current Liabilities


819,636

 


927,228


Long-term Debt


285,000

 


225


Accumulated Postretirement Benefit Obligation


58,213

 


43,194


Environmental Liabilities


56,259

 


53,391


Pension Liability


563,990

 


336,878


Other Liabilities


59,637

 


65,296


Commitments and Contingencies

     

Stockholders’ Equity:

     

Common stock, par value $0.01 per share, authorized 325,000,000 shares; issued 121,604,332 and 120,536,910 shares at December 31,

2014 and December 31, 2013, respectively


1,216

 


1,205

Preferred stock, par value $0.01 per share, authorized 75,000,000 shares; no shares issued


-

 


-

Capital in excess of par value

775,393

 

747,189

Retained earnings

642,489

 

656,916

Treasury stock at cost, 14,915,776 and 10,068,731 shares at December 31, 2014 and December 31, 2013, respectively


(423,990)

 


(268,971)

Accumulated other comprehensive income

3,596

 

28,348

Stockholders’ Equity – The Babcock & Wilcox Company

998,704

 

1,164,687

Noncontrolling interest

15,497

 

18,254

Total Stockholders’ Equity

1,014,201

 

1,182,941

TOTAL

$ 2,856,936

 

$ 2,609,153

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended

Twelve Months Ended

 

December 31,

December 31,

 

2014

2013

2014

2013

(Unaudited)

(In thousands, except share and per share amounts)

Revenues

$ 837,094

$ 802,815

$ 2,923,019

$ 3,269,208


Costs and Expenses:

       

Cost of operations

840,147

417,514

2,409,376

2,301,648

Research and development costs

9,941

26,256

73,234

79,226

Losses (gains) on asset disposals and impairments, net

229

(296)

1,081

1,049

Selling, general and administrative expenses

137,025

66,269

442,615

379,382

Special charges for restructuring activities

12,288

14,095

41,091

39,599

Total Costs and Expenses

999,630

523,838

2,967,397

2,800,904


Equity in Income of Investees


5,996


16,345


41,756


68,058


Operating Income


(156,540)


295,322


(2,622)


536,362


Other Income (Expense):

       

Interest income

152

308

1,028

1,443

Interest expense

(2,781)

(877)

(7,579)

(3,115)

Other – net

(5,888)

(19,395)

14,639

(17,517)

Total Other Income (Expense)

(8,517)

(19,964)

8,088

(19,189)


Income before Provision for Income Taxes


(165,057)


275,358


5,466


517,173

Provision for Income Taxes

(61,465)

114,366

(15,991)

184,583


Net Income


$ (103,592)


$ 160,992


$ 21,457


$ 332,590


Net Loss Attributable to Noncontrolling Interest


285


4,596


7,931


13,488


Net Income Attributable to The Babcock & Wilcox Company


$ (103,307)


$ 165,588


$ 29,388


$ 346,078


Earnings per Common Share:

       

Basic:

       

Net Income Attributable to The Babcock & Wilcox Company


$ (0.97)


$ 1.50


$ 0.27


$ 3.09

Diluted:

       

Net Income Attributable to The Babcock & Wilcox Company


$ (0.97)


$ 1.48


$ 0.27


$ 3.07


Shares used in the computation of earnings per share:

       

Basic

106,597,411

110,679,494

108,477,262

111,901,750

Diluted

106,597,411

111,592,570

108,761,092

112,685,417

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended December 31,

 

2014

2013

2012

CASH FLOWS FROM OPERATING ACTIVITIES:

 

(In thousands)

 

Net Income

$ 21,457

$ 332,590

$ 217,557

Non-cash items included in net income:

     

Depreciation and amortization

105,798

70,525

69,697

Income of investees, net of dividends

18,763

11,537

(15,115)

Losses on asset disposals and impairments

12,543

1,049

1,419

Impairment of USEC investment

-

19,139

27,000

Gain on exchange of USEC investment

(18,647)

-

-

In-kind research and development costs

5,831

15,794

17,942

Provision for (benefit from) deferred taxes

(95,697)

94,068

43,038

Recognition of (gains) losses for pension and postretirement plans

244,136

(219,915)

35,480

Stock-based compensation and thrift plan expense

23,461

29,006

31,797

Excess tax benefits from stock-based compensation

(588)

(177)

(1,571)

Changes in assets and liabilities, net of effects from acquisitions:

     

Accounts receivable

(50,080)

19,726

(52,034)

Accounts payable

(81,044)

54,895

30,391

Contracts in progress and advance billings on contracts

(98,400)

(210,582)

32,527

Inventories

5,044

11,971

(16,448)

Income taxes

(1,259)

(6,364)

5,522

Accrued and other current liabilities

18,557

(28,499)

(30,553)

Pension liability, accrued postretirement benefit obligation and employee benefits

(42,264)

(68,961)

(168,004)

Other, net

7,314

12,084

(43,718)

NET CASH PROVIDED BY OPERATING ACTIVITIES

74,925

137,886

184,927

CASH FLOWS FROM INVESTING ACTIVITIES:

     

Decrease (increase) in restricted cash and cash equivalents

(8,552)

15,016

229

Purchases of property, plant and equipment

(76,029)

(64,950)

(86,635)

Acquisition of businesses, net of cash acquired

(127,703)

-

(318)

Purchase of intangible assets

(722)

(2,200)

-

Purchases of securities

(23,622)

(90,836)

(268,929)

Sales and maturities of securities

40,725

168,879

247,649

Proceeds from asset disposals

997

1,028

580

Proceeds from sale of an unconsolidated affiliate

-

-

2,091

Investment in equity and cost method investees

(4,900)

(6,884)

(6,064)

NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES

(199,806)

20,053

(111,397)

CASH FLOWS FROM FINANCING ACTIVITIES:

     

Payment of short-term borrowing and long-term debt

(4,539)

(211)

(4,643)

Payment of debt issuance costs

(5,473)

-

(4,902)

Borrowings under short-term arrangements

2,967

484

3,815

Borrowings under Credit Agreement

1,156,100

-

-

Repayments under Credit Agreement

(856,100)

-

-

Repurchase of common shares

(149,774)

(157,093)

(96,774)

Dividends paid to common shareholders

(43,469)

(38,011)

(9,485)

Exercise of stock options

4,604

4,275

2,926

Excess tax benefits from stock-based compensation

588

177

1,571

Other

(305)

(499)

(514)

NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES

104,599

(190,878)

(108,006)

EFFECTS OF EXCHANGE RATE CHANGES ON CASH

(12,865)

(4,492)

2,814

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

(33,147)

(37,431)

(31,662)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

346,116

383,547

415,209

CASH AND CASH EQUIVALENTS AT END OF PERIOD

$ 312,969

$ 346,116

$ 383,547

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

     

Cash paid during the period for:

     

Interest

$ 6,061

$ 1,790

$ 2,049

Income taxes (net of refunds)

$ 74,734

$ 86,924

$ 83,062

SCHEDULE OF NONCASH INVESTING ACTIVITY:

     

Accrued capital expenditures included in accounts payable

$ 7,219

$ 8,141

$ 7,902

THE BABCOCK & WILCOX COMPANY

BUSINESS SEGMENT INFORMATION

 


Three Months Ended


Twelve Months Ended

 

December 31,

December 31,

 

2014

2013

2014

2013

(Unaudited)

(In thousands)

REVENUES:

       

Power Generation

$ 444,556

$ 408,037

$ 1,486,029

$ 1,767,651

Nuclear Operations

343,811

293,438

1,220,952

1,167,683

Technical Services

14,128

26,351

84,834

104,254

Nuclear Energy

40,485

104,686

154,721

283,857

mPower

-

543

278

1,523

Adjustments and Eliminations

(5,886)

(30,240)

(23,795)

(55,760)


TOTAL


$ 837,094


$ 802,815


$ 2,923,019


$ 3,269,208


SEGMENT INCOME:

       

Power Generation

$ 37,540

$ 53,624

$ 98,557

$ 155,837

Nuclear Operations

90,433

53,575

270,536

237,855

Technical Services

385

10,422

35,203

58,234

Nuclear Energy

(18,584)

(1,560)

(23,211)

8,641

mPower

(5,164)

(27,677)

(68,946)

(81,304)

SUBTOTAL

104,610

88,384

312,139

379,263

Corporate

(18,785)

(1,704)

(32,514)

(26,039)

Special Charges for Restructuring Activities

(12,288)

(14,095)

(41,091)

(39,599)

Mark to Market Adjustment

(230,077)

222,737

(241,156)

222,737

TOTAL

$ (156,540)

$ 295,322

$ (2,622)

$ 536,362


EQUITY IN INCOME (LOSS) OF INVESTEES:

Power Generation

$ 3,023

$ 7,792

$ 8,682

$ 18,388

Nuclear Operations

-

-

-

-

Technical Services

2,973

8,686

33,042

50,281

Nuclear Energy

-

(133)

32

(611)

mPower

-

-

-

-


TOTAL


$ 5,996


$ 16,345


$ 41,756


$ 68,058


PENSION EXPENSE (INCOME):

       

Power Generation

$ (249)

$ 520

$ 1,133

$ 2,760

Nuclear Operations

715

1,307

3,331

4,706

Technical Services

64

72

208

288

Nuclear Energy

360

758

3,855

3,796

mPower

-

-

-

-

Corporate

701

89

2,160

1,604

Mark to Market Adjustment

217,974

(202,442)

229,053

(202,442)


TOTAL


$ 219,565


$ (199,696)


$ 239,740


$ (189,288)

DEPRECIATION AND AMORTIZATION:

Power Generation

$ 9,468

$ 7,373

$ 30,661

$ 23,892

Nuclear Operations

33,487

6,793

54,524

26,975

Technical Services

2

41

3

185

Nuclear Energy

1,596

1,688

6,564

6,520

mPower

262

189

974

554

Corporate

3,583

3,100

13,072

12,399


TOTAL


$ 48,398


$ 19,184


$ 105,798


$ 70,525


RESEARCH AND DEVELOPMENT, NET:

Power Generation

$ 5,688

$ 4,915

$ 18,483

$ 21,043

Nuclear Operations

12

2

17

69

Technical Services

15

11

39

67

Nuclear Energy

172

511

1,684

3,590

mPower

4,054

20,817

53,011

54,457


TOTAL


$ 9,941


$ 26,256


$ 73,234


$ 79,226


CAPITAL EXPENDITURES:

       

Power Generation

$ 4,563

$ 1,877

$ 15,449

$ 15,280

Nuclear Operations

10,567

9,973

34,777

31,572

Technical Services

66

32

66

98

Nuclear Energy

1,269

1,365

14,358

5,506

mPower

-

1,109

1,983

2,854

Corporate

3,687

5,306

9,396

9,640


TOTAL


$ 20,152


$ 19,662


$ 76,029


$ 64,950


BACKLOG:

       

Power Generation

$ 2,246,666

$ 2,072,132

$ 2,246,666

$ 2,072,132

Nuclear Operations

2,778,043

2,369,268

2,778,043

2,369,268

Technical Services

2,691

5,031

2,691

5,031

Nuclear Energy

264,992

141,832

264,992

141,832

mPower

-

1,670

-

1,670


TOTAL


$ 5,292,392


$ 4,589,933


$ 5,292,392


$ 4,589,933


BOOKINGS:

       

Power Generation

$ 556,755

$ 277,833

$ 1,568,113

$ 1,319,185

Nuclear Operations

742,372

130,076

1,619,806

546,314

Technical Services

12,281

14,845

82,436

100,965

Nuclear Energy

29,706

60,490

268,569

143,329

mPower

-

(8)

-

(67)


TOTAL


$ 1,341,114


$ 483,236


$ 3,538,924


$ 2,109,726

Archive

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Press Contacts:

BWX Technologies, Inc.

Jud Simmons 
+1 434.522.3800
hjsimmons@bwxt.com

BWXT Canada Ltd.  

Natalie Cutler 
+1 519.620.5288 
nacutler@bwxt.com 

BWXT Nuclear Energy Canada Inc.

Natalie Cutler
+1 519.620.5288  
nacutler@bwxt.com 

Nuclear Fuel Services, Inc.

Laura Bailey 
+1 423.743.9141
lebailey@nuclearfuelservices.com