BWX Technologies Reports Third Quarter 2018 Results
Business Wire 6-Nov-2018 4:30 PM
Reiterates Long-Term Guidance
-
3Q18 revenue growth of 1.5%; 3Q18 orders up significantly; backlog at
$3.8 billion
-
3Q18 GAAP EPS of $0.78 and non-GAAP EPS of $0.40, each inclusive of a
$0.21 negative impact for missile tube reserves
-
Returned $79 million to shareholders in 3Q18; approved a new $250
million share repurchase authorization
-
Updated 2018 guidance: non-GAAP EPS in a range of $2.23 to $2.27,
revenue of approximately $1.8 billion
-
Reiterated long-term guidance of low double-digit EPS growth
BWX Technologies, Inc. (NYSE:BWXT) ("BWXT," "we," "us" or the
"Company") reported third quarter 2018 revenue of $426 million, a 1.5%
increase compared to $419 million in the third quarter of 2017. GAAP net
income for the third quarter 2018 was $77.9 million, or $0.78 per
diluted share, compared to net income of $46.6 million, or $0.46 per
diluted share, in the prior-year quarter. Non-GAAP net income for the
third quarter 2018 was $40.1 million, or $0.40 per diluted share. A
reconciliation of non-GAAP results is detailed in Exhibit 1.
"We continue to exhibit top-line strength while building backlog," said
Rex D. Geveden, president and chief executive officer. "Third quarter
results were negatively impacted by a reserve on missile tubes and
increased interest expense; however, our long-term outlook remains
unchanged. We have updated our 2018 guidance and continue to reiterate
our low double-digit EPS CAGR based on our superior competitive
positioning, robust organic growth opportunities, and balance sheet
capacity."
"We made substantial progress during the quarter on the missile tube
welding issue. The problem is fully characterized, and the required
remediations are understood. Accordingly, we have taken a charge in the
third quarter to account for those items. Excluding this charge, third
quarter NOG margins would have been 21.7%, or about 120 basis points
higher than the third quarter of 2017."
Third Quarter 2018 Segment ResultsNuclear Operations
Group (NOG) segment revenue was $319 million for the third quarter of
2018, a 1.6% decrease from the prior-year period driven primarily by
lower missile tube revenue partially offset by an increase in naval
nuclear fuel and downblending services. NOG operating income was $45.6
million in the third quarter of 2018, down 31% compared with the
prior-year period primarily driven by a $26.7 million charge for re-work
related to missile tubes. Third quarter 2018 segment operating margin
was 14.3%.
Nuclear Power Group (NPG) segment revenue was $79.2 million for the
third quarter of 2018, a 15.4% increase from the prior-year period
driven by an increase in field services, fuel manufacturing and the
medical radioisotope acquisition. NPG operating income was $9.1 million
in the third quarter of 2018, a 7.6% increase from the prior-year
period. Third quarter 2018 segment operating margin was 11.4%.
Nuclear Services Group (NSG) segment operating income was $6.5 million
for the third quarter of 2018 compared with $0.8 million for third
quarter of 2017, primarily driven by an increase in operational
performance, lower costs and new contract starts.
Liquidity and DebtThe Company utilized cash in
operating activities of $25.8 million in the third quarter of 2018,
inclusive of $118.1 million of voluntary pension contributions, compared
with cash generated from operating activities of $80.7 million in the
prior-year period. At the end of the third quarter 2018, the Company's
cash and short-term investments position, net of restricted cash, was
$68.9 million.
As of September 30, 2018, the Company had gross debt of $781.2 million
and $67.7 million in letters of credit issued under the Company's
revolving credit facility. Gross debt included $400.0 million in senior
notes, $291.2 million in term loans and $90.0 million in borrowings
under the Company's revolving credit facility. As a result, the Company
had $342.3 million in remaining availability under its revolving credit
facility.
Capital DeploymentThe Company returned $79 million
to shareholders during the third quarter 2018, including $63 million in
share repurchases and $16 million in dividends. On November 6, 2018, our
Board of Directors declared a quarterly cash dividend of $0.16 per
common share. The dividend will be payable on December 13, 2018, to
shareholders of record on November 20, 2018. The Board of Directors also
approved a $250 million share repurchase authorization, resulting in a
total available share repurchase authorization of $337 million.
2018 GuidanceBWXT revised its guidance for 2018:
-
Total Company revenue is now expected to be approximately $1.8 billion
-
Non-GAAP EPS is now expected to be in a range of $2.23 to $2.27
(excluding mark-to-market of pension and post-retirement benefits)
-
NOG revenue is now expected to be approximately $1.3 billion with
operating margin in the high teens inclusive of CAS pension
reimbursements and missile tube reserves
-
NPG revenue is now expected to be approximately $370 million with
operating margin of approximately 14%
-
Non-GAAP effective tax rate is now expected in a range of 22% to 23%
BWXT reiterated the following guidance for 2018:
-
NSG operating income of approximately $20 million
-
Research and development costs of approximately $15 million
-
Corporate unallocated costs of approximately $20 million
-
Other income primarily related to pension and other post-employment
benefits of $30 to $35 million
-
Capital expenditures of approximately $150 million, primarily to
support growth in Navy business
-
Depreciation and amortization of approximately $60 million
Long-term GuidanceBWXT reiterated long-term guidance
that, beyond 2017, and excluding the benefit of tax reform, the Company
anticipates an EPS Compound Annual Growth Rate (CAGR) in the low-double
digits over a three to five year period based on a robust organic growth
strategy and balance sheet capacity.
Conference Call to Discuss Third Quarter 2018 Results
|
Date:
|
|
|
|
|
|
Wednesday, November 7, 2018, at 8:30 a.m. EST
|
|
Live Webcast:
|
|
|
|
|
|
Investor Relations section of website at www.bwxt.com
|
|
|
|
|
|
|
|
|
Forward-Looking StatementsBWXT cautions that this
release contains forward-looking statements, including, without
limitation, statements relating to backlog, to the extent they may be
viewed as an indicator of future revenues; the anticipated benefits of
our acquisition of Nordion's medical isotope business; timing of future
revenues from the acquisition of Nordion's medical isotope business and
new medical radioisotope business; the timing and impact of the missile
tube welding issue; our plans and expectations for the NOG, NPG and NSG
segments; and our 2018 guidance and long-term guidance. 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 execute contracts in backlog; the
lack of, or adverse changes in, Federal appropriations to government
programs in which we participate; the demand for and competitiveness of
nuclear power; capital priorities of power generating utilities; 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 BWXT's filings with the Securities and Exchange Commission,
including our annual report on Form 10-K for the year ended December 31,
2017 and subsequent quarterly reports on Form 10-Q. BWXT 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 BWXTHeadquartered in Lynchburg, Va., BWX
Technologies, Inc. (NYSE:BWXT) is a leading supplier of nuclear
components and fuel to the U.S. government; provides technical and
management services to support the U.S. government in the operation of
complex facilities and environmental remediation activities; and
supplies precision manufactured components, services and fuel for the
commercial nuclear power industry. With approximately 6,250 employees,
BWXT has eleven major operating sites in the U.S. and Canada. In
addition, BWXT joint ventures provide management and operations at more
than a dozen U.S. Department of Energy and two NASA facilities. Follow
us on Twitter @BWXTech and learn more at www.bwxt.com.
EXHIBIT 1
|
|
|
BWX TECHNOLOGIES, INC.
RECONCILIATION OF NON-GAAP OPERATING INCOME AND EARNINGS PER
SHARE(1)(2)(3)
(In millions, except per share amounts)
|
|
|
|
|
|
|
Three Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
Pension &OPEB MTM(Gain) / Loss
|
|
|
AcquisitionRelatedCosts
|
|
|
Loss onForwardContracts
|
|
|
One-timeTaxBenefit
|
|
|
Missiletubereserve
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
$
|
50.4
|
|
|
|
$
|
—
|
|
|
|
$
|
0.9
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
|
|
|
$
|
51.3
|
|
|
Other Income (Expense)
|
|
|
|
34.2
|
|
|
|
|
(35.1
|
)
|
|
|
|
—
|
|
|
|
|
1.3
|
|
|
|
|
—
|
|
|
|
|
|
|
|
0.3
|
|
|
Provision for Income Taxes
|
|
|
|
(6.5
|
)
|
|
|
|
8.1
|
|
|
|
|
(0.2
|
)
|
|
|
|
(0.3
|
)
|
|
|
|
(12.5
|
)
|
|
|
|
|
|
|
(11.3
|
)
|
|
Net Income
|
|
|
|
78.1
|
|
|
|
|
(27.0
|
)
|
|
|
|
0.7
|
|
|
|
|
1.0
|
|
|
|
|
(12.5
|
)
|
|
|
|
|
|
|
40.3
|
|
|
Net Income Attributable to Noncontrolling Interest
|
|
|
|
(0.2
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
|
|
(0.2
|
)
|
|
Net Income Attributable to BWXT
|
|
|
$
|
77.9
|
|
|
|
$
|
(27.0
|
)
|
|
|
$
|
0.7
|
|
|
|
$
|
1.0
|
|
|
|
$
|
(12.5
|
)
|
|
|
|
|
|
$
|
40.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Shares Outstanding
|
|
|
|
100.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
100.4
|
|
|
Diluted Earnings per Common Share
|
|
|
$
|
0.78
|
|
|
|
$
|
(0.27
|
)
|
|
|
$
|
0.01
|
|
|
|
$
|
0.01
|
|
|
|
$
|
(0.12
|
)
|
|
|
|
|
|
$
|
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate
|
|
|
|
7.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOG segment margins(4)
|
|
|
|
14.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7.4
|
%
|
|
|
|
21.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
$
|
66.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
66.8
|
|
|
Other Income (Expense)
|
|
|
|
3.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.8
|
|
|
Provision for Income Taxes
|
|
|
|
(23.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(23.9
|
)
|
|
Net Income
|
|
|
|
46.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
46.7
|
|
|
Net Income Attributable to Noncontrolling Interest
|
|
|
|
(0.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.1
|
)
|
|
Net Income Attributable to BWXT
|
|
|
$
|
46.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
46.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Shares Outstanding
|
|
|
|
100.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
100.3
|
|
|
Diluted Earnings per Common Share
|
|
|
$
|
0.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate
|
|
|
|
33.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Tables may not foot due to rounding.
|
|
(2)
|
|
|
BWXT 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. BWXT believes the non-GAAP measures
provide meaningful insight and transparency 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 BWXT's ongoing operations.
|
|
(3)
|
|
|
BWXT has not included a reconciliation of provided non-GAAP guidance
to the comparable GAAP measures due to the difficulty of estimating
any mark-to-market adjustments for pension and post-retirement
benefits, which are determined at the end of the year.
|
|
(4)
|
|
|
Additional information about the missile tube reserve impact to
Revenue, Operating Income and Operating Margin for 3Q and YTD can
be found in our most recent Investor Briefing on the BWXT website
at www.bwxt.com/investors.
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT 1 (continued)
|
|
|
BWX TECHNOLOGIES, INC.
RECONCILIATION OF NON-GAAP OPERATING INCOME AND EARNINGS PER
SHARE(1)(2)(3)
(In millions, except per share amounts)
|
|
|
|
|
|
|
Nine Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
Pension &OPEB MTM(Gain) / Loss
|
|
|
AcquisitionRelatedCosts
|
|
|
Recognition ofDebt IssuanceCosts fromFormer
CreditFacility
|
|
|
Gain onForwardContracts
|
|
|
One-TimeTaxBenefit
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
$
|
201.8
|
|
|
|
$
|
—
|
|
|
|
$
|
2.5
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
|
|
|
$
|
204.3
|
|
|
Other Income (Expense)
|
|
|
|
47.0
|
|
|
|
|
(35.1
|
)
|
|
|
|
—
|
|
|
|
|
2.4
|
|
|
|
|
(4.7
|
)
|
|
|
|
|
|
|
9.5
|
|
|
Provision for Income Taxes
|
|
|
|
(43.6
|
)
|
|
|
|
8.1
|
|
|
|
|
(0.6
|
)
|
|
|
|
(0.6
|
)
|
|
|
|
1.2
|
|
|
|
|
(12.5
|
)
|
|
|
|
(47.9
|
)
|
|
Net Income
|
|
|
|
205.2
|
|
|
|
|
(27.0
|
)
|
|
|
|
1.9
|
|
|
|
|
1.8
|
|
|
|
|
(3.5
|
)
|
|
|
|
(12.5
|
)
|
|
|
|
166.0
|
|
|
Net Income Attributable to Noncontrolling Interest
|
|
|
|
(0.2
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
|
|
(0.2
|
)
|
|
Net Income Attributable to BWXT
|
|
|
$
|
205.0
|
|
|
|
$
|
(27.0
|
)
|
|
|
$
|
1.9
|
|
|
|
$
|
1.8
|
|
|
|
$
|
(3.5
|
)
|
|
|
$
|
(12.5
|
)
|
|
|
$
|
165.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Shares Outstanding
|
|
|
|
100.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
100.5
|
|
|
Diluted Earnings per Common Share
|
|
|
$
|
2.04
|
|
|
|
$
|
(0.27
|
)
|
|
|
$
|
0.02
|
|
|
|
$
|
0.02
|
|
|
|
$
|
(0.03
|
)
|
|
|
$
|
0.12
|
|
|
|
$
|
1.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate
|
|
|
|
17.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
FrameworkAgreement& Litigation
|
|
|
Impairment(Gains) /Charges
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
$
|
228.5
|
|
|
|
$
|
(7.9
|
)
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
220.6
|
|
|
Other Income (Expense)
|
|
|
|
11.0
|
|
|
|
|
—
|
|
|
|
|
(0.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
10.6
|
|
|
Provision for Income Taxes
|
|
|
|
(75.6
|
)
|
|
|
|
2.8
|
|
|
|
|
0.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(72.7
|
)
|
|
Net Income
|
|
|
|
163.9
|
|
|
|
|
(5.1
|
)
|
|
|
|
(0.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
158.4
|
|
|
Net Income Attributable to Noncontrolling Interest
|
|
|
|
(0.4
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.4
|
)
|
|
Net Income Attributable to BWXT
|
|
|
$
|
163.5
|
|
|
|
$
|
(5.1
|
)
|
|
|
$
|
(0.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
158.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Shares Outstanding
|
|
|
|
100.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
100.4
|
|
|
Diluted Earnings per Common Share
|
|
|
$
|
1.63
|
|
|
|
$
|
(0.05
|
)
|
|
|
$
|
(0.00
|
)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate
|
|
|
|
31.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Tables may not foot due to rounding.
|
|
(2)
|
|
|
BWXT 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. BWXT believes the non-GAAP measures
provide meaningful insight and transparency 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 BWXT's ongoing operations.
|
|
(3)
|
|
|
BWXT has not included a reconciliation of provided non-GAAP guidance
to the comparable GAAP measures due to the difficulty of estimating
any mark-to-market adjustments for pension and post-retirement
benefits, which are determined at the end of the year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BWX TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
ASSETS
|
|
|
|
|
|
|
September 30, 2018
|
|
|
December 31, 2017
|
|
|
|
|
(Unaudited)(In thousands)
|
|
Current Assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
66,125
|
|
|
$
|
203,404
|
|
Restricted cash and cash equivalents
|
|
|
|
4,359
|
|
|
|
7,105
|
|
Investments
|
|
|
|
2,732
|
|
|
|
2,934
|
|
Accounts receivable – trade, net
|
|
|
|
194,575
|
|
|
|
189,217
|
|
Accounts receivable – other
|
|
|
|
46,183
|
|
|
|
19,365
|
|
Contracts in progress
|
|
|
|
326,355
|
|
|
|
420,628
|
|
Other current assets
|
|
|
|
44,528
|
|
|
|
30,437
|
|
Total Current Assets
|
|
|
|
684,857
|
|
|
|
873,090
|
|
Property, Plant and Equipment
|
|
|
|
1,073,893
|
|
|
|
1,013,141
|
|
Less accumulated depreciation
|
|
|
|
684,530
|
|
|
|
664,512
|
|
Net Property, Plant and Equipment
|
|
|
|
389,363
|
|
|
|
348,629
|
|
Investments
|
|
|
|
8,604
|
|
|
|
9,301
|
|
Goodwill
|
|
|
|
278,939
|
|
|
|
218,331
|
|
Deferred Income Taxes
|
|
|
|
45,105
|
|
|
|
86,740
|
|
Investments in Unconsolidated Affiliates
|
|
|
|
62,160
|
|
|
|
43,266
|
|
Intangible Assets
|
|
|
|
240,081
|
|
|
|
110,405
|
|
Other Assets
|
|
|
|
26,595
|
|
|
|
22,577
|
|
TOTAL
|
|
|
$
|
1,735,704
|
|
|
$
|
1,712,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BWX TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
September 30,2018
|
|
|
December 31,2017
|
|
|
|
|
(Unaudited)(In thousands, except shareand
per share amounts)
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
Current maturities of long-term debt
|
|
|
$
|
14,745
|
|
|
|
$
|
27,870
|
|
|
Accounts payable
|
|
|
|
100,004
|
|
|
|
|
93,421
|
|
|
Accrued employee benefits
|
|
|
|
74,398
|
|
|
|
|
82,477
|
|
|
Accrued liabilities – other
|
|
|
|
53,508
|
|
|
|
|
64,738
|
|
|
Advance billings on contracts
|
|
|
|
104,646
|
|
|
|
|
246,192
|
|
|
Accrued warranty expense
|
|
|
|
12,426
|
|
|
|
|
13,428
|
|
|
Total Current Liabilities
|
|
|
|
359,727
|
|
|
|
|
528,126
|
|
|
Long-Term Debt
|
|
|
|
756,492
|
|
|
|
|
481,059
|
|
|
Accumulated Postretirement Benefit Obligation
|
|
|
|
20,111
|
|
|
|
|
21,368
|
|
|
Environmental Liabilities
|
|
|
|
89,429
|
|
|
|
|
79,786
|
|
|
Pension Liability
|
|
|
|
102,093
|
|
|
|
|
296,444
|
|
|
Other Liabilities
|
|
|
|
15,351
|
|
|
|
|
19,799
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
Stockholders' Equity:
|
|
|
|
|
|
|
|
Common stock, par value $0.01 per share, authorized 325,000,000
shares; issued 125,796,671 and 125,381,591 shares at September 30,
2018 and December 31, 2017, respectively
|
|
|
|
1,258
|
|
|
|
|
1,254
|
|
|
Preferred stock, par value $0.01 per share, authorized 75,000,000
shares; No shares issued
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Capital in excess of par value
|
|
|
|
112,300
|
|
|
|
|
98,843
|
|
|
Retained earnings
|
|
|
|
1,159,552
|
|
|
|
|
990,652
|
|
|
Treasury stock at cost, 27,070,536 and 25,964,088 shares at
September 30, 2018 and December 31, 2017, respectively
|
|
|
|
(884,200
|
)
|
|
|
|
(814,809
|
)
|
|
Accumulated other comprehensive income
|
|
|
|
3,542
|
|
|
|
|
9,454
|
|
|
Stockholders' Equity – BWX Technologies, Inc.
|
|
|
|
392,452
|
|
|
|
|
285,394
|
|
|
Noncontrolling interest
|
|
|
|
49
|
|
|
|
|
363
|
|
|
Total Stockholders' Equity
|
|
|
|
392,501
|
|
|
|
|
285,757
|
|
|
TOTAL
|
|
|
$
|
1,735,704
|
|
|
|
$
|
1,712,339
|
|
|
|
|
|
|
|
|
|
|
|
|
BWX TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
(Unaudited)(In thousands, except share and per
share amounts)
|
|
Revenues
|
|
|
$
|
425,507
|
|
|
|
$
|
419,360
|
|
|
|
$
|
1,321,891
|
|
|
|
$
|
1,257,600
|
|
|
Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations
|
|
|
|
326,314
|
|
|
|
|
302,267
|
|
|
|
|
971,887
|
|
|
|
|
883,839
|
|
|
Research and development costs
|
|
|
|
3,959
|
|
|
|
|
2,597
|
|
|
|
|
11,673
|
|
|
|
|
5,268
|
|
|
Losses (gains) on asset disposals and impairments, net
|
|
|
|
243
|
|
|
|
|
(2
|
)
|
|
|
|
(2
|
)
|
|
|
|
(33
|
)
|
|
Selling, general and administrative expenses
|
|
|
|
53,919
|
|
|
|
|
51,351
|
|
|
|
|
159,199
|
|
|
|
|
150,881
|
|
|
Total Costs and Expenses
|
|
|
|
384,435
|
|
|
|
|
356,213
|
|
|
|
|
1,142,757
|
|
|
|
|
1,039,955
|
|
|
Equity in Income of Investees
|
|
|
|
9,323
|
|
|
|
|
3,630
|
|
|
|
|
22,698
|
|
|
|
|
10,832
|
|
|
Operating Income
|
|
|
|
50,395
|
|
|
|
|
66,777
|
|
|
|
|
201,832
|
|
|
|
|
228,477
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
1,121
|
|
|
|
|
402
|
|
|
|
|
2,340
|
|
|
|
|
750
|
|
|
Interest expense
|
|
|
|
(7,925
|
)
|
|
|
|
(3,837
|
)
|
|
|
|
(19,354
|
)
|
|
|
|
(11,260
|
)
|
|
Other – net
|
|
|
|
40,968
|
|
|
|
|
7,252
|
|
|
|
|
63,984
|
|
|
|
|
21,487
|
|
|
Total Other Income (Expense)
|
|
|
|
34,164
|
|
|
|
|
3,817
|
|
|
|
|
46,970
|
|
|
|
|
10,977
|
|
|
Income before Provision for Income Taxes
|
|
|
|
84,559
|
|
|
|
|
70,594
|
|
|
|
|
248,802
|
|
|
|
|
239,454
|
|
|
Provision for Income Taxes
|
|
|
|
6,482
|
|
|
|
|
23,901
|
|
|
|
|
43,578
|
|
|
|
|
75,556
|
|
|
Net Income
|
|
|
$
|
78,077
|
|
|
|
$
|
46,693
|
|
|
|
$
|
205,224
|
|
|
|
$
|
163,898
|
|
|
Net Income Attributable to Noncontrolling Interest
|
|
|
|
(158
|
)
|
|
|
|
(140
|
)
|
|
|
|
(201
|
)
|
|
|
|
(364
|
)
|
|
Net Income Attributable to BWX Technologies, Inc.
|
|
|
$
|
77,919
|
|
|
|
$
|
46,553
|
|
|
|
$
|
205,023
|
|
|
|
$
|
163,534
|
|
|
Earnings per Common Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable to BWX Technologies, Inc.
|
|
|
$
|
0.78
|
|
|
|
$
|
0.47
|
|
|
|
$
|
2.06
|
|
|
|
$
|
1.65
|
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable to BWX Technologies, Inc.
|
|
|
$
|
0.78
|
|
|
|
$
|
0.46
|
|
|
|
$
|
2.04
|
|
|
|
$
|
1.63
|
|
|
Shares used in the computation of earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
99,421,031
|
|
|
|
|
99,328,677
|
|
|
|
|
99,542,933
|
|
|
|
|
99,313,264
|
|
|
Diluted
|
|
|
|
100,420,766
|
|
|
|
|
100,260,255
|
|
|
|
|
100,501,597
|
|
|
|
|
100,367,383
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BWX TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
(Unaudited)(In thousands)
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net Income
|
|
|
$
|
205,224
|
|
|
|
$
|
163,898
|
|
|
Non-cash items included in net income from continuing operations:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
43,692
|
|
|
|
|
42,135
|
|
|
Income of investees, net of dividends
|
|
|
|
(8,471
|
)
|
|
|
|
731
|
|
|
Gains on asset disposals and impairments, net
|
|
|
|
(2
|
)
|
|
|
|
(33
|
)
|
|
Gain on forward contracts
|
|
|
|
(4,743
|
)
|
|
|
|
—
|
|
|
Recognition of debt issuance costs from Former Credit Facility
|
|
|
|
2,441
|
|
|
|
|
—
|
|
|
Provision for deferred taxes
|
|
|
|
38,685
|
|
|
|
|
17,501
|
|
|
Recognition of (gains) losses for pension and postretirement plans
|
|
|
|
(33,699
|
)
|
|
|
|
1,320
|
|
|
Stock-based compensation expense
|
|
|
|
8,519
|
|
|
|
|
9,879
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
3,384
|
|
|
|
|
(17,748
|
)
|
|
Accounts payable
|
|
|
|
2,061
|
|
|
|
|
(10,978
|
)
|
|
Contracts in progress and advance billings on contracts
|
|
|
|
(35,049
|
)
|
|
|
|
(2,963
|
)
|
|
Income taxes
|
|
|
|
(46,511
|
)
|
|
|
|
21,587
|
|
|
Accrued and other current liabilities
|
|
|
|
3,344
|
|
|
|
|
(33,736
|
)
|
|
Pension liability, accrued postretirement benefit obligation and
employee benefits
|
|
|
|
(184,898
|
)
|
|
|
|
(47,109
|
)
|
|
Other, net
|
|
|
|
(2,418
|
)
|
|
|
|
345
|
|
|
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES
|
|
|
|
(8,441
|
)
|
|
|
|
144,829
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
|
|
(60,488
|
)
|
|
|
|
(49,361
|
)
|
|
Acquisition of business
|
|
|
|
(212,993
|
)
|
|
|
|
—
|
|
|
Purchases of securities
|
|
|
|
(3,111
|
)
|
|
|
|
(3,237
|
)
|
|
Sales and maturities of securities
|
|
|
|
3,378
|
|
|
|
|
12,406
|
|
|
Investments, net of return of capital, in equity method investees
|
|
|
|
(9,037
|
)
|
|
|
|
2,142
|
|
|
Proceeds from asset disposals
|
|
|
|
499
|
|
|
|
|
142
|
|
|
Other, net
|
|
|
|
4,743
|
|
|
|
|
(24
|
)
|
|
NET CASH USED IN INVESTING ACTIVITIES
|
|
|
|
(277,009
|
)
|
|
|
|
(37,932
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Borrowings of long-term debt
|
|
|
|
901,300
|
|
|
|
|
73,600
|
|
|
Repayments of long-term debt
|
|
|
|
(624,987
|
)
|
|
|
|
(94,320
|
)
|
|
Payment of debt issuance costs
|
|
|
|
(9,443
|
)
|
|
|
|
—
|
|
|
Repurchase of common shares
|
|
|
|
(62,558
|
)
|
|
|
|
—
|
|
|
Dividends paid to common shareholders
|
|
|
|
(48,014
|
)
|
|
|
|
(31,072
|
)
|
|
Exercise of stock options
|
|
|
|
3,511
|
|
|
|
|
16,019
|
|
|
Cash paid for shares withheld to satisfy employee taxes
|
|
|
|
(5,402
|
)
|
|
|
|
(7,389
|
)
|
|
Other
|
|
|
|
(515
|
)
|
|
|
|
(415
|
)
|
|
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
|
|
|
153,892
|
|
|
|
|
(43,577
|
)
|
|
EFFECTS OF EXCHANGE RATE CHANGES ON CASH
|
|
|
|
(8,464
|
)
|
|
|
|
15,290
|
|
|
TOTAL (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH AND CASH EQUIVALENTS
|
|
|
|
(140,022
|
)
|
|
|
|
78,610
|
|
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD
|
|
|
|
213,144
|
|
|
|
|
134,600
|
|
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS
AT END OF PERIOD
|
|
|
$
|
73,122
|
|
|
|
$
|
213,210
|
|
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
Cash paid during the period for:
|
|
|
|
|
|
|
|
Interest
|
|
|
$
|
13,325
|
|
|
|
$
|
10,762
|
|
|
Income taxes (net of refunds)
|
|
|
$
|
51,779
|
|
|
|
$
|
36,425
|
|
|
SCHEDULE OF NON-CASH INVESTING ACTIVITY:
|
|
|
|
|
|
|
|
Accrued capital expenditures included in accounts payable
|
|
|
$
|
13,457
|
|
|
|
$
|
7,680
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BWX TECHNOLOGIES, INC.
BUSINESS SEGMENT INFORMATION
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
(Unaudited)(In thousands)
|
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nuclear Operations Group
|
|
|
$
|
319,325
|
|
|
|
$
|
324,545
|
|
|
|
$
|
968,096
|
|
|
|
$
|
962,492
|
|
|
Nuclear Services Group
|
|
|
|
28,366
|
|
|
|
|
27,507
|
|
|
|
|
90,995
|
|
|
|
|
100,146
|
|
|
Nuclear Power Group
|
|
|
|
79,162
|
|
|
|
|
68,621
|
|
|
|
|
267,675
|
|
|
|
|
200,864
|
|
|
Adjustments and Eliminations
|
|
|
|
(1,346
|
)
|
|
|
|
(1,313
|
)
|
|
|
|
(4,875
|
)
|
|
|
|
(5,902
|
)
|
|
TOTAL
|
|
|
$
|
425,507
|
|
|
|
$
|
419,360
|
|
|
|
$
|
1,321,891
|
|
|
|
$
|
1,257,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nuclear Operations Group
|
|
|
$
|
45,580
|
|
|
|
$
|
66,459
|
|
|
|
$
|
180,283
|
|
|
|
$
|
203,503
|
|
|
Nuclear Services Group
|
|
|
|
6,494
|
|
|
|
|
776
|
|
|
|
|
11,182
|
|
|
|
|
16,577
|
|
|
Nuclear Power Group
|
|
|
|
9,063
|
|
|
|
|
8,426
|
|
|
|
|
38,637
|
|
|
|
|
27,094
|
|
|
Other
|
|
|
|
(5,142
|
)
|
|
|
|
(2,255
|
)
|
|
|
|
(13,542
|
)
|
|
|
|
(4,937
|
)
|
|
SUBTOTAL
|
|
|
|
55,995
|
|
|
|
|
73,406
|
|
|
|
|
216,560
|
|
|
|
|
242,237
|
|
|
Unallocated Corporate
|
|
|
|
(5,600
|
)
|
|
|
|
(6,629
|
)
|
|
|
|
(14,728
|
)
|
|
|
|
(13,760
|
)
|
|
TOTAL
|
|
|
$
|
50,395
|
|
|
|
$
|
66,777
|
|
|
|
$
|
201,832
|
|
|
|
$
|
228,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPRECIATION AND AMORTIZATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nuclear Operations Group
|
|
|
$
|
8,102
|
|
|
|
$
|
7,706
|
|
|
|
$
|
24,004
|
|
|
|
$
|
23,261
|
|
|
Nuclear Services Group
|
|
|
|
792
|
|
|
|
|
914
|
|
|
|
|
2,600
|
|
|
|
|
2,788
|
|
|
Nuclear Power Group
|
|
|
|
4,615
|
|
|
|
|
3,436
|
|
|
|
|
11,694
|
|
|
|
|
10,243
|
|
|
Other
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Corporate
|
|
|
|
1,763
|
|
|
|
|
1,880
|
|
|
|
|
5,394
|
|
|
|
|
5,843
|
|
|
TOTAL
|
|
|
$
|
15,272
|
|
|
|
$
|
13,936
|
|
|
|
$
|
43,692
|
|
|
|
$
|
42,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL EXPENDITURES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nuclear Operations Group
|
|
|
$
|
22,047
|
|
|
|
$
|
18,851
|
|
|
|
$
|
50,471
|
|
|
|
$
|
43,090
|
|
|
Nuclear Services Group
|
|
|
|
71
|
|
|
|
|
178
|
|
|
|
|
306
|
|
|
|
|
489
|
|
|
Nuclear Power Group
|
|
|
|
595
|
|
|
|
|
1,047
|
|
|
|
|
2,317
|
|
|
|
|
3,235
|
|
|
Other
|
|
|
|
286
|
|
|
|
|
—
|
|
|
|
|
1,340
|
|
|
|
|
—
|
|
|
Corporate
|
|
|
|
3,529
|
|
|
|
|
538
|
|
|
|
|
6,054
|
|
|
|
|
2,547
|
|
|
TOTAL
|
|
|
$
|
26,528
|
|
|
|
$
|
20,614
|
|
|
|
$
|
60,488
|
|
|
|
$
|
49,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BWX TECHNOLOGIES, INC.
BUSINESS SEGMENT INFORMATION
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
(Unaudited)(In thousands)
|
|
BACKLOG:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nuclear Operations Group
|
|
|
$
|
2,939,464
|
|
|
$
|
2,970,088
|
|
|
$
|
2,939,464
|
|
|
$
|
2,970,088
|
|
Nuclear Services Group
|
|
|
|
26,211
|
|
|
|
37,520
|
|
|
|
26,211
|
|
|
|
37,520
|
|
Nuclear Power Group
|
|
|
|
868,258
|
|
|
|
527,708
|
|
|
|
868,258
|
|
|
|
527,708
|
|
TOTAL
|
|
|
$
|
3,833,933
|
|
|
$
|
3,535,316
|
|
|
$
|
3,833,933
|
|
|
$
|
3,535,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOOKINGS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nuclear Operations Group
|
|
|
$
|
571,762
|
|
|
$
|
32,272
|
|
|
$
|
646,698
|
|
|
$
|
446,771
|
|
Nuclear Services Group
|
|
|
|
10,786
|
|
|
|
43,004
|
|
|
|
86,109
|
|
|
|
108,295
|
|
Nuclear Power Group
|
|
|
|
56,800
|
|
|
|
115,718
|
|
|
|
502,085
|
|
|
|
255,070
|
|
TOTAL
|
|
|
$
|
639,348
|
|
|
$
|
190,994
|
|
|
$
|
1,234,892
|
|
|
$
|
810,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20181106005975/en/
