- 4Q18 GAAP EPS of $0.22; non-GAAP EPS of $0.74; revenue up 11% vs. 4Q17
- 2018 GAAP EPS of $2.27; non-GAAP EPS of $2.39; revenue up 7% vs. 2017
- Returned $279 million of cash to shareholders in 2018
- Announces 6% quarterly dividend increase to $0.17 per share
- Issues 2019 guidance: non-GAAP EPS of ~$2.50; revenue growth of ~6%
- Reiterates 3-5 year, low-double-digit non-GAAP EPS CAGR from 2017 results
BWX Technologies, Inc. (NYSE: BWXT) (“BWXT,” “we,” “us” or the “Company”) reported record fourth quarter 2018 revenue of $478 million, an 11% increase compared with $430 million in the fourth quarter of 2017. GAAP net income for the fourth quarter 2018 was $21.9 million, or $0.22 per diluted share, compared with a net loss of $15.7 million, or a loss of $0.16 per share, in the prior-year quarter. Non-GAAP net income for the fourth quarter 2018 was $73.0 million, or $0.74 per diluted share, compared with $47.5 million, or $0.47 per diluted share, in the prior-year quarter. A reconciliation of non-GAAP results is detailed in Exhibit 1.
Full year 2018 revenue was $1.8 billion, a 6.6% increase compared to $1.7 billion in 2017. GAAP net income for the full year 2018 was $227.0 million, or $2.27 per diluted share, which includes a $0.25 unfavorable impact of non-cash, mark-to-market loss for pension and other post-retirement benefits, compared with $147.8 million, or $1.47 per diluted share, in 2017. Non-GAAP net income for the full year 2018 was $238.8 million, or $2.39 per diluted share, up 17% compared with $205.6 million, or $2.05 per diluted share, in the prior year.
“We had an impressive finish to 2018 with record fourth quarter financial results,” said Rex D. Geveden, president and chief executive officer. “Despite some operational challenges and pension and interest headwinds especially in the second half, 2018 was yet another stride forward in our aggressive growth plans. We enter 2019 well positioned for continued revenue and earnings growth as we progress toward the achievement of our long-term guidance.”
“Strategic focus areas for 2019 are to ramp up production of the Columbia-class submarine, complete the pricing agreement for a second Ford-Class carrier, industrialize our radioisotope technology, and capitalize future organic growth opportunities.”
Fourth Quarter and Full Year 2018 Segment Results
Nuclear
Operations Group (NOG) segment revenue was $351 million for the fourth
quarter of 2018, a 13% increase from the prior-year period, driven
primarily by accelerated revenue through favorable EAC changes that
included increased future volume assumptions that benefited backlog
contracts and higher naval nuclear fuel and downblending services.
Full-year segment revenue was $1.3 billion, a 3.7% increase compared
with 2017 as a result of increases in volume from naval nuclear
components as well as nuclear fuel and downblending operations.
NOG operating income was $91.1 million in the fourth quarter of 2018, a 41% increase compared with the prior-year period primarily driven by lower costs and favorable EAC changes that included increased future volume assumptions that benefited backlog contracts. Full-year segment operating income was $271 million, inclusive of a $29.2 million reserve for missile tube rework, a 1.3% increase compared with the prior year driven by higher volume and reduced costs. Fourth quarter and full year 2018 segment operating margins were 26.0% and 20.6%, respectively.
Nuclear Power Group (NPG) segment revenue was $98.2 million for the fourth quarter of 2018, a 15.6% increase from the prior-year period due to increases in field services, fuel handling and manufacturing, and the medical radioisotope acquisition. Full-year segment revenue was $366 million, a 28% increase compared with the prior year primarily from an increase in field services, fuel manufacturing, China steam generator production and the medical radioisotope acquisition.
NPG operating income was $13.6 million in the fourth quarter of 2018, a 44% increase from the prior-year period driven primarily from higher volume and the medical radioisotope acquisition. Full-year segment operating income was $52.3 million, a 43% increase compared with the prior year driven by higher volume and the medical radioisotope acquisition. Fourth quarter and full-year 2018 segment operating margins were 13.9% and 14.3%, respectively.
Nuclear Services Group (NSG) segment operating income was $9.2 million for the fourth quarter of 2018 compared with $5.5 million for the fourth quarter of 2017 primarily as a result of an improvement in operational performance and lower costs. Full-year segment operating income was down $1.7 million to $20.4 million primarily driven by a $7.9 million favorable legal settlement in 2017.
Liquidity and Debt
The Company generated $177.7
million of net cash from operating activities in the fourth quarter of
2018 compared with $77.1 million in the prior-year period. At the end of
the fourth quarter 2018, the Company’s cash and short-term investments
position, net of restricted cash, was $33.5 million.
As of December 31, 2018, the Company had gross debt of $777.4 million and $63.5 million in letters of credit issued under the Company’s revolving credit facility. Gross debt included $400.0 million in senior notes, $277.4 million in term loans and $100.0 million in borrowings under the Company’s revolving credit facility. As a result, the Company had $336.5 million in remaining availability under its revolving credit facility.
Capital Deployment
The Company returned $168 million
to shareholders during the fourth quarter 2018, including $152 million
in share repurchases and $16 million in dividends. For the fiscal year
2018, the Company returned $279 million of cash to shareholders,
including $215 million in share repurchases and $64 million in
dividends. As of December 31, 2018, the total remaining share repurchase
authorization stands at $185 million.
On February 22, 2019, our Board of Directors declared a quarterly cash dividend of $0.17 per common share. The dividend will be payable on March 28, 2019, to shareholders of record on March 11, 2019.
2019 Guidance
- Non-GAAP EPS of ~$2.50 (excluding mark-to-market for pension and post-retirement benefits)
-
Consolidated revenue growth of ~6%
- NOG revenue growth of ~6%
- NPG revenue ~flat
-
Operating income and margin
- NOG operating margin in the “high teens” with upside potential from CAS pension reimbursement
- NPG operating margin of ~13%
- NSG operating income of ~$25 million
- Other segment operating expense primarily R&D of ~1% of revenue
- Unallocated corporate expenses of ~$20 million
- Other income primarily related to pension and other post-employment benefits of ~$22 million
- Non-GAAP effective tax rate in a range of 23% to 24%
- Capital expenditures of ~$225 million
Long-term Guidance
BWXT reiterated long-term guidance
that excluding the benefit of tax reform, the Company anticipates a
non-GAAP EPS compound annual growth rate (CAGR) in the low-double digits
over a three to five year period from 2017 based on a robust organic
growth strategy and balance sheet capacity.
The Company does not provide GAAP guidance because it is unable to reliably forecast most of the items that are excluded from GAAP to calculate non-GAAP results. These items could cause GAAP results to differ materially from non-GAAP results. See reconciliation of non-GAAP results in Exhibit 1 for additional information.
Conference Call to Discuss Fourth Quarter and Full Year 2018 Results
Date: |
Tuesday, February 26, 2019, at 8:30 a.m. EDT | |||||
Live Webcast: |
Investor Relations section of website at www.bwxt.com |
|||||
Forward-Looking Statements
BWXT 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; completion of our multi-year
pricing agreement; the integration and 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 2019 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,
2018 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 BWXT
Headquartered 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 11 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 December 31, 2018 | |||||||||||||||||||||||||
GAAP |
Pension & OPEB |
One Time Tax |
Non-GAAP | ||||||||||||||||||||||
Operating Income | $ | 103.1 | $ | – | $ | – | $ | – | $ | 103.1 | |||||||||||||||
Other Income (Expense) | (71.8 | ) | 67.8 | – | – | (4.0 | ) | ||||||||||||||||||
Provision for Income Taxes | (9.3 | ) | (15.7 | ) | – | (1.0 | ) | (25.9 | ) | ||||||||||||||||
Net Income | 22.1 | 52.1 | – | (1.0 | ) | 73.2 | |||||||||||||||||||
Net Income Attributable to Noncontrolling Interest | (0.1 | ) | – | – | – | (0.1 | ) | ||||||||||||||||||
Net Income Attributable to BWXT | $ | 21.9 | $ | 52.1 | $ | – | $ | (1.0 | ) | 73.0 | |||||||||||||||
Diluted Shares Outstanding | 98.6 | 98.6 | |||||||||||||||||||||||
Diluted Earnings per Common Share | $ | 0.22 | $ | 0.52 | $ | – | $ | (0.01 | ) | $ | 0.74 | ||||||||||||||
Effective Tax Rate | 29.6 | % | 26.2 | % | |||||||||||||||||||||
Three Months Ended December 31, 2017 | |||||||||||||||||||||||||
GAAP |
Pension & OPEB |
Executive |
One Time Tax |
Non-GAAP | |||||||||||||||||||||
Operating Income | $ | 63.7 | $ | – | $ | 2.6 | $ | – | $ | 66.4 | |||||||||||||||
Other Income (Expense) | (7.4 | ) | 11.1 | – | – | 3.6 | |||||||||||||||||||
Provision for Income Taxes | (71.9 | ) | (4.2 | ) | (1.0 | ) | 54.6 | (22.4 | ) | ||||||||||||||||
Net Income (Loss) | (15.5 | ) | 6.9 | 1.7 | 54.6 | 47.7 | |||||||||||||||||||
Net Income Attributable to Noncontrolling Interest | (0.2 | ) | – | – | – | (0.2 | ) | ||||||||||||||||||
Net Income (Loss) Attributable to BWXT | $ | (15.7 | ) | $ | 6.9 | $ | 1.7 | $ | 54.6 | 47.5 | |||||||||||||||
Diluted Shares Outstanding | 99.4 | 100.4 | |||||||||||||||||||||||
Diluted Earnings per Common Share | $ | (0.16 | ) | $ | 0.07 | $ | 0.02 | $ | 0.54 | $ | 0.47 | ||||||||||||||
Effective Tax Rate | 127.6 | % | 31.9 | % |
(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. |
|
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) |
||||||||||||||||||||||||||||||||||||||
Twelve Months Ended December 31, 2018 | ||||||||||||||||||||||||||||||||||||||
GAAP |
Pension & |
Acquisition |
Recognition of |
Gain on |
One Time |
|
Missile Tube |
Non-GAAP | ||||||||||||||||||||||||||||||
Operating Income | $ | 305.0 | $ | – | $ | 2.5 | $ | – | $ | – | $ | – | $ | 307.5 | ||||||||||||||||||||||||
Other Income (Expense) | (24.8 | ) | 32.6 | – | 2.4 | (4.7 | ) | – | 5.5 | |||||||||||||||||||||||||||||
Provision for Income Taxes | (52.8 | ) | (7.5 | ) | (0.6 | ) | (0.6 | ) | 1.2 | (13.5 | ) | (73.8 | ) | |||||||||||||||||||||||||
Net Income | 227.3 | 25.1 | 1.9 | 1.8 | (3.5 | ) | (13.5 | ) | 239.1 | |||||||||||||||||||||||||||||
Net Income Attributable to Noncontrolling Interest | (0.3 | ) | – | – | – | – | – | (0.3 | ) | |||||||||||||||||||||||||||||
Net Income Attributable to BWXT | $ | 227.0 | $ | 25.1 | $ | 1.9 | $ | 1.8 | $ | (3.5 | ) | $ | (13.5 | ) | 238.8 | |||||||||||||||||||||||
Diluted Shares Outstanding | 100.0 | 100.0 | ||||||||||||||||||||||||||||||||||||
Diluted Earnings per Common Share | $ | 2.27 | $ | 0.25 | $ | 0.02 | $ | 0.02 | $ | (0.03 | ) | $ | (0.13 | ) | $ | 2.39 | ||||||||||||||||||||||
Effective Tax Rate | 18.9 | % | 23.6 | % | ||||||||||||||||||||||||||||||||||
NOG segment margins(4) | 20.6 | % | 1.9 | % | 22.5 | % | ||||||||||||||||||||||||||||||||
Twelve Months Ended December 31, 2017 | ||||||||||||||||||||||||||||||||||||||
GAAP |
Pension & |
Litigation |
Executive |
Impairment |
One Time |
Non-GAAP | ||||||||||||||||||||||||||||||||
Operating Income | $ | 292.2 | $ | – | $ | (7.9 | ) | $ | 2.6 | $ | – | $ | – | $ | 287.0 | |||||||||||||||||||||||
Other Income (Expense) | 3.6 | 11.1 | – | – | (0.4 | ) | – | 14.2 | ||||||||||||||||||||||||||||||
Provision for Income Taxes | (147.4 | ) | (4.2 | ) | 2.8 | (1.0 | ) | 0.0 | 54.6 | (95.1 | ) | |||||||||||||||||||||||||||
Net Income | 148.4 | 6.9 | (5.1 | ) | 1.7 | (0.4 | ) | 54.6 | 206.1 | |||||||||||||||||||||||||||||
Net Income Attributable to Noncontrolling Interest | (0.5 | ) | – | – | – | – | – | (0.5 | ) | |||||||||||||||||||||||||||||
Net Income Attributable to BWXT | $ | 147.8 | $ | 6.9 | $ | (5.1 | ) | $ | 1.7 | $ | (0.4 | ) | $ | 54.6 | 205.6 | |||||||||||||||||||||||
Diluted Shares Outstanding | 100.4 | 100.4 | ||||||||||||||||||||||||||||||||||||
Diluted Earnings per Common Share | $ | 1.47 | $ | 0.07 | $ | (0.05 | ) | $ | 0.02 | $ | (0.00 | ) | $ | 0.54 | $ | 2.05 | ||||||||||||||||||||||
Effective Tax Rate | 49.8 | % | 31.6 | % |
(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 2Q, 3Q and 2018 can be found in our most recent Investor Briefing on the BWXT website at www.bwxt.com/investors. |
|
BWX TECHNOLOGIES, INC. CONSOLIDATED BALANCE SHEETS |
||||||||
ASSETS |
||||||||
December 31, | ||||||||
2018 | 2017 | |||||||
(In thousands) | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 29,871 | $ | 203,404 | ||||
Restricted cash and cash equivalents | 3,834 | 7,105 | ||||||
Investments | 3,597 | 2,934 | ||||||
Accounts receivable — trade, net | 129,459 | 189,217 | ||||||
Accounts receivable — other | 13,374 | 19,365 | ||||||
Contracts in progress | 318,454 | 420,628 | ||||||
Other current assets | 43,859 | 30,437 | ||||||
Total Current Assets | 542,448 | 873,090 | ||||||
Property, Plant and Equipment | 1,132,392 | 1,013,141 | ||||||
Less accumulated depreciation | 693,153 | 664,512 | ||||||
Net Property, Plant and Equipment | 439,239 | 348,629 | ||||||
Investments | 7,382 | 9,301 | ||||||
Goodwill | 274,082 | 218,331 | ||||||
Deferred Income Taxes | 63,908 | 86,740 | ||||||
Investments in Unconsolidated Affiliates | 63,746 | 43,266 | ||||||
Intangible Assets | 228,676 | 110,405 | ||||||
Other Assets | 35,615 | 22,577 | ||||||
TOTAL | $ | 1,655,096 | $ | 1,712,339 | ||||
BWX TECHNOLOGIES, INC. CONSOLIDATED BALANCE SHEETS |
||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||
December 31, | ||||||||||
2018 | 2017 | |||||||||
(In thousands, except share |
||||||||||
Current Liabilities: | ||||||||||
Current maturities of long-term debt | $ | 14,227 | $ | 27,870 | ||||||
Accounts payable | 114,751 | 93,421 | ||||||||
Accrued employee benefits | 77,386 | 82,477 | ||||||||
Accrued liabilities — other | 62,163 | 64,738 | ||||||||
Advance billings on contracts | 98,477 | 246,192 | ||||||||
Accrued warranty expense | 10,344 | 13,428 | ||||||||
Total Current Liabilities | 377,348 | 528,126 | ||||||||
Long-Term Debt | 753,617 | 481,059 | ||||||||
Accumulated Postretirement Benefit Obligation | 19,236 | 21,368 | ||||||||
Environmental Liabilities | 86,372 | 79,786 | ||||||||
Pension Liability | 173,469 | 296,444 | ||||||||
Other Liabilities | 9,353 | 19,799 | ||||||||
Commitments and Contingencies | ||||||||||
Stockholders’ Equity: |
||||||||||
Common stock, par value $0.01 per share, authorized 325,000,000 shares; issued 125,871,866 and 125,381,591 shares at December 31, 2018 and December 31, 2017, respectively | 1,259 | 1,254 | ||||||||
Preferred stock, par value $0.01 per share, authorized 75,000,000 shares; no shares issued | – | – | ||||||||
Capital in excess of par value | 115,725 | 98,843 | ||||||||
Retained earnings | 1,166,762 | 990,652 | ||||||||
Treasury stock at cost, 30,625,074 and 25,964,088 shares at December 31, 2018 and December 31, 2017, respectively | (1,037,795 | ) | (814,809 | ) | ||||||
Accumulated other comprehensive income | (10,289 | ) | 9,454 | |||||||
Stockholders’ Equity — BWX Technologies, Inc. |
235,662 | 285,394 | ||||||||
Noncontrolling interest | 39 | 363 | ||||||||
Total Stockholders’ Equity |
235,701 | 285,757 | ||||||||
TOTAL | $ | 1,655,096 | $ | 1,712,339 | ||||||
BWX TECHNOLOGIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||
(Unaudited) |
||||||||||||||||||||
Revenues | $ | 477,998 | $ | 430,138 | $ | 1,799,889 | $ | 1,687,738 | ||||||||||||
Costs and Expenses: | ||||||||||||||||||||
Cost of operations | 323,989 | 308,144 | 1,295,876 | 1,191,983 | ||||||||||||||||
Research and development costs | 3,550 | 1,922 | 15,223 | 7,190 | ||||||||||||||||
Losses (gains) on asset disposals and impairments, net | 66 | (161 | ) | 64 | (194 | ) | ||||||||||||||
Selling, general and administrative expenses | 54,893 | 59,267 | 214,092 | 210,148 | ||||||||||||||||
Total Costs and Expenses | 382,498 | 369,172 | 1,525,255 | 1,409,127 | ||||||||||||||||
Equity in Income of Investees | 7,645 | 2,780 | 30,343 | 13,612 | ||||||||||||||||
Operating Income | 103,145 | 63,746 | 304,977 | 292,223 | ||||||||||||||||
Other Income (Expense): | ||||||||||||||||||||
Interest income | 139 | 655 | 2,479 | 1,405 | ||||||||||||||||
Interest expense | (8,469 | ) | (3,619 | ) | (27,823 | ) | (14,879 | ) | ||||||||||||
Other — net | (63,472 | ) | (4,456 | ) | 512 | 17,031 | ||||||||||||||
Total Other Income (Expense) | (71,802 | ) | (7,420 | ) | (24,832 | ) | 3,557 | |||||||||||||
Income before Provision for Income Taxes | 31,343 | 56,326 | 280,145 | 295,780 | ||||||||||||||||
Provision for Income Taxes | 9,262 | 71,860 | 52,840 | 147,415 | ||||||||||||||||
Net Income (Loss) | $ | 22,081 | $ | (15,534 | ) | $ | 227,305 | $ | 148,365 | |||||||||||
Net Income Attributable to Noncontrolling Interest | (146 | ) | (157 | ) | (347 | ) | (521 | ) | ||||||||||||
Net Income Attributable to BWX Technologies, Inc. | $ | 21,935 | $ | (15,691 | ) | $ | 226,958 | $ | 147,844 | |||||||||||
Earnings per Common Share: | ||||||||||||||||||||
Basic: | ||||||||||||||||||||
Net Income Attributable to BWX Technologies, Inc. | $ | 0.22 | $ | (0.16 | ) | $ | 2.29 | $ | 1.49 | |||||||||||
Diluted: | ||||||||||||||||||||
Net Income Attributable to BWX Technologies, Inc. | $ | 0.22 | $ | (0.16 | ) | $ | 2.27 | $ | 1.47 | |||||||||||
Shares used in the computation of earnings per share: | ||||||||||||||||||||
Basic | 97,619,549 | 99,398,096 | 99,062,087 | 99,334,472 | ||||||||||||||||
Diluted | 98,571,419 | 99,398,096 | 100,019,053 | 100,369,190 | ||||||||||||||||
BWX TECHNOLOGIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||
Year Ended December 31, | ||||||||||
2018 | 2017 | |||||||||
(In thousands) | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
Net Income | $ | 227,305 | $ | 148,365 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 60,097 | 56,557 | ||||||||
Income of investees, net of dividends | (8,106 | ) | 2,520 | |||||||
Gain on forward contracts | (4,743 | ) | – | |||||||
Recognition of debt issuance costs from Former Credit Facility | 2,441 | – | ||||||||
Provision for (benefit from) deferred taxes | 17,446 | 93,461 | ||||||||
Recognition of losses for pension and postretirement plans | 34,554 | 12,823 | ||||||||
Stock-based compensation expense | 11,883 | 15,222 | ||||||||
Changes in assets and liabilities, net of effects from acquisitions: | ||||||||||
Accounts receivable | 62,193 | (42,803 | ) | |||||||
Accounts payable | 1,888 | (7,476 | ) | |||||||
Contracts in progress and advance billings on contracts | (34,012 | ) | 35,272 | |||||||
Income taxes | (23,257 | ) | 15,124 | |||||||
Accrued and other current liabilities | 11,596 | (26,610 | ) | |||||||
Pension liability, accrued postretirement benefit obligation and employee benefits | (187,425 | ) | (79,311 | ) | ||||||
Other, net | (2,570 | ) | (1,184 | ) | ||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 169,290 | 221,960 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
Purchases of property, plant and equipment | (109,338 | ) | (96,880 | ) | ||||||
Acquisition of businesses | (212,993 | ) | (715 | ) | ||||||
Purchases of securities | (4,520 | ) | (3,237 | ) | ||||||
Sales and maturities of securities | 3,933 | 12,852 | ||||||||
Investments, net of return of capital, in equity method investees | (9,059 | ) | (2,789 | ) | ||||||
Other, net | 5,253 | 1,088 | ||||||||
NET CASH USED IN INVESTING ACTIVITIES | (326,724 | ) | (89,681 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
Borrowings of long-term debt | 1,158,800 | 109,400 | ||||||||
Repayments of long-term debt | (876,206 | ) | (137,053 | ) | ||||||
Payment of debt issuance costs | (9,443 | ) | – | |||||||
Repurchase of common shares | (214,759 | ) | – | |||||||
Dividends paid to common shareholders | (63,821 | ) | (42,043 | ) | ||||||
Exercise of stock options | 3,573 | 17,117 | ||||||||
Cash paid for shares withheld to satisfy employee taxes | (6,796 | ) | (8,049 | ) | ||||||
Other | (671 | ) | (550 | ) | ||||||
NET CASH USED IN FINANCING ACTIVITIES | (9,323 | ) | (61,178 | ) | ||||||
EFFECTS OF EXCHANGE RATE CHANGES ON CASH | (9,979 | ) | 7,443 | |||||||
TOTAL (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS | (176,736 | ) | 78,544 | |||||||
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 | $ | 36,408 | $ | 213,144 | ||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||||
Cash paid during the period for: | ||||||||||
Interest | $ | 16,993 | $ | 14,252 | ||||||
Income taxes (net of refunds) | $ | 58,715 | $ | 38,425 | ||||||
SCHEDULE OF NON-CASH INVESTING ACTIVITY: | ||||||||||
Accrued capital expenditures included in accounts payable | $ | 29,470 | $ | 8,454 | ||||||
BWX TECHNOLOGIES, INC. BUSINESS SEGMENT INFORMATION |
||||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||
(Unaudited) |
||||||||||||||||||||
REVENUES: |
||||||||||||||||||||
Nuclear Operations Group | $ | 351,074 | $ | 309,369 | $ | 1,319,170 | $ | 1,271,861 | ||||||||||||
Nuclear Services Group | 31,443 | 37,103 | 122,438 | 137,249 | ||||||||||||||||
Nuclear Power Group | 98,236 | 84,967 | 365,911 | 285,831 | ||||||||||||||||
Adjustments and Eliminations | (2,755 | ) | (1,301 | ) | (7,630 | ) | (7,203 | ) | ||||||||||||
TOTAL | $ | 477,998 | $ | 430,138 | $ | 1,799,889 | $ | 1,687,738 | ||||||||||||
SEGMENT INCOME: |
||||||||||||||||||||
Nuclear Operations Group | $ | 91,122 | $ | 64,427 | $ | 271,405 | $ | 267,930 | ||||||||||||
Nuclear Services Group | 9,192 | 5,506 | 20,374 | 22,083 | ||||||||||||||||
Nuclear Power Group | 13,633 | 9,454 | 52,270 | 36,548 | ||||||||||||||||
Other | (4,532 | ) | (5,751 | ) | (18,074 | ) | (10,688 | ) | ||||||||||||
SUBTOTAL | 109,415 | 73,636 | 325,975 | 315,873 | ||||||||||||||||
Unallocated Corporate | (6,270 | ) | (9,890 | ) | (20,998 | ) | (23,650 | ) | ||||||||||||
TOTAL | $ | 103,145 | $ | 63,746 | $ | 304,977 | $ | 292,223 | ||||||||||||
DEPRECIATION AND AMORTIZATION: |
||||||||||||||||||||
Nuclear Operations Group | $ | 8,128 | $ | 8,028 | $ | 32,132 | $ | 31,289 | ||||||||||||
Nuclear Services Group | 801 | 914 | 3,401 | 3,702 | ||||||||||||||||
Nuclear Power Group | 5,460 | 3,508 | 17,154 | 13,751 | ||||||||||||||||
Other | – | – | – | – | ||||||||||||||||
Corporate | 2,016 | 1,972 | 7,410 | 7,815 | ||||||||||||||||
TOTAL | $ | 16,405 | $ | 14,422 | $ | 60,097 | $ | 56,557 | ||||||||||||
CAPITAL EXPENDITURES: |
||||||||||||||||||||
Nuclear Operations Group | $ | 42,889 | $ | 43,233 | $ | 93,360 | $ | 86,323 | ||||||||||||
Nuclear Services Group | 668 | 1,025 | 974 | 1,514 | ||||||||||||||||
Nuclear Power Group | 2,393 | 621 | 4,710 | 3,856 | ||||||||||||||||
Other | 1,440 | 628 | 2,780 | 628 | ||||||||||||||||
Corporate | 1,460 | 2,012 | 7,514 | 4,559 | ||||||||||||||||
TOTAL | $ | 48,850 | $ | 47,519 | $ | 109,338 | $ | 96,880 | ||||||||||||
BWX TECHNOLOGIES, INC. BUSINESS SEGMENT INFORMATION |
||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(Unaudited) |
||||||||||||||||
BACKLOG: |
||||||||||||||||
Nuclear Operations Group | $ | 2,636,824 | $ | 3,304,416 | $ | 2,636,824 | $ | 3,304,416 | ||||||||
Nuclear Services Group | 38,142 | 29,285 | 38,142 | 29,285 | ||||||||||||
Nuclear Power Group | 803,634 | 637,053 | 803,634 | 637,053 | ||||||||||||
TOTAL | $ | 3,478,600 | $ | 3,970,754 | $ | 3,478,600 | $ | 3,970,754 | ||||||||
BOOKINGS: |
||||||||||||||||
Nuclear Operations Group | $ | 47,387 | $ | 642,969 | $ | 694,085 | $ | 1,089,740 | ||||||||
Nuclear Services Group | 41,870 | 28,345 | 127,979 | 136,640 | ||||||||||||
Nuclear Power Group | 32,947 | 194,262 | 535,032 | 449,332 | ||||||||||||
TOTAL | $ | 122,204 | $ | 865,576 | $ | 1,357,096 | $ | 1,675,712 | ||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20190225006041/en/
Investor Contact:
Alan Nethery
Vice President and Chief
Investor Relations Officer
980-365-4300
Investors@bwxt.com
Mark Kratz
Manager, Investor Relations
434-522-3883
makratz@bwxt.com
Media Contact:
Jud Simmons
Director, Media and Public
Relations
434-522-6462
hjsimmons@bwxt.com