Babcock & Wilcox Enterprises Publicizes Outcomes for Fourth Quarter and Full 12 months 2020

AKRON, Ohio–(BUSINESS WIRE)–Babcock & Wilcox Enterprises, Inc. (“B&W” or the “Firm”) (NYSE: BW) introduced outcomes for the fourth quarter and full 12 months 2020.

“Our outcomes for the fourth quarter and full 12 months 2020 mirror the continuing optimistic influence of our strategic actions, price financial savings initiatives, and robust administration and operational effectiveness, regardless of the impacts of COVID-19 throughout our segments, and we’re assured in our capability to attain our beforehand said adjusted EBITDA targets of $70-$80 million and $95-$105 million, in 2021 and 2022, respectively1,” stated Kenneth Younger, B&W’s Chairman and Chief Government Officer. “Our actions in 2020 and year-to-date, which included launching new segments, increasing internationally, implementing further price financial savings initiatives, and most just lately closing profitable widespread inventory and senior notes choices, have supplied a robust basis for the continued execution of our development technique.

“The proceeds from our choices considerably decreased our secured debt by $274 million and decreased future money curiosity funds by roughly $16 million yearly. Mixed with a discount in our required pension contributions, we anticipate to save lots of greater than $40 million yearly in money bills on a pro-forma foundation, whereas additionally offering capital to help the growth of our clear vitality applied sciences portfolio as we proceed to pursue greater than $5 billion of recognized pipeline alternatives over the subsequent three years, along with our high-margin elements and providers enterprise,” Younger continued. “Wanting ahead, we stay targeted on rising our B&W Renewable and B&W Environmental segments, together with deploying our waste-to-energy and carbon seize applied sciences to assist meet the growing world demand for carbon and methane reductions. The subsequent-generation B&W is positioned to energy the worldwide vitality and environmental transformation.”

1 Essentially the most comparable GAAP monetary measure will not be out there with out unreasonable effort.

This fall 2020 Monetary Abstract

Consolidated revenues within the fourth quarter of 2020 had been $149.9 million, down 17% in comparison with the fourth quarter of 2019. Revenues in all segments had been adversely impacted by COVID-19 as clients delayed tasks and journey restrictions restricted the flexibility of the Firm’s workforce to be on website. The completion of huge tasks in all three segments within the prior 12 months quarter additionally contributed to the decline in income. The GAAP working revenue within the fourth quarter of 2020 was $2.2 million, inclusive of restructuring and settlement prices and advisory charges of $7.9 million, in comparison with an working revenue of $10.0 million within the fourth quarter of 2019. The decline in working revenue was primarily on account of decrease quantity on account of the impacts of COVID-19, partially offset by the consequences of improved gross margin within the B&W Thermal phase. Adjusted EBITDA was $16.1 million in comparison with $22.8 million within the fourth quarter of 2019. Bookings within the fourth quarter of 2020 had been $167 million. All quantities referred to on this launch are on a unbroken operations foundation, except in any other case famous. Reconciliations of web revenue, essentially the most straight comparable GAAP measure, to adjusted EBITDA, in addition to to adjusted gross revenue for the Firm’s segments, are supplied within the reveals to this launch.

Babcock & Wilcox Renewable phase revenues had been $37.6 million for the fourth quarter of 2020, in comparison with $46.7 million within the fourth quarter of 2019. The decline in income was primarily because of the completion of the European EPC loss tasks in 2019 and the detrimental impacts of COVID-19 on tasks and elements gross sales. Adjusted EBITDA within the quarter was $3.0 million in comparison with $5.8 million within the fourth quarter of 2019, primarily because of the decrease quantity. Within the fourth quarter of 2020, the phase recorded losses of $2.4 million on the European EPC loss contracts as in comparison with a acquire of $1.2 million within the fourth quarter of 2019, inclusive of guarantee expense. The phase adjusted gross revenue was $10.4 million within the fourth quarter of 2020 in comparison with adjusted gross revenue of $10.7 million reported within the fourth quarter of 2019; regardless of COVID-19’s influence on income, the gross revenue margin improved to 27.7% within the fourth quarter of 2020, in comparison with 22.9% within the fourth quarter of 2019 on account of emphasis on greater margin tasks and value financial savings initiatives.

Babcock & Wilcox Environmental phase revenues had been $31.6 million within the fourth quarter of 2020, in comparison with $41.2 million within the fourth quarter of 2019, primarily because of the impacts of COVID-19 and the completion of a giant submerged grind conveyor undertaking and a big building undertaking within the prior 12 months quarter. Adjusted EBITDA was $2.4 million, in comparison with $6.3 million in the identical interval final 12 months, pushed by the decrease quantity. Adjusted gross revenue was $6.9 million within the fourth quarter of 2020, in comparison with $11.2 million within the prior-year interval.

Babcock & Wilcox Thermal phase revenues had been $81.0 million within the fourth quarter of 2020 in comparison with $94.2 million within the prior-year interval, primarily because of the impacts of COVID-19 and the completion of a giant upkeep undertaking within the prior-year quarter. Adjusted EBITDA within the fourth quarter of 2020 was $12.8 million, a rise of 6.9% in comparison with $11.9 million in final 12 months’s quarter, primarily on account of favorable product combine and the advantages of a full interval of price financial savings and restructuring initiatives, partially offset by the consequences of decrease quantity and will increase in overhead being allotted to the phase; adjusted EBITDA margin was 15.7% within the quarter in comparison with 12.7% in the identical interval final 12 months. Adjusted gross revenue within the Babcock & Wilcox Thermal phase within the fourth quarter of 2020 improved to $27.4 million, a 6.8% enhance in comparison with $25.6 million within the prior-year interval, primarily on account of favorable product combine and the advantages of a full interval of price financial savings and restructuring initiatives, offset by decrease quantity; gross revenue margin improved to 33.8%, in comparison with 27.2% in the identical interval final 12 months.

Full 12 months 2020 Monetary Abstract

Consolidated revenues in 2020 had been $566.3 million, down 34% in comparison with 2019. Revenues in all segments had been adversely impacted by COVID-19, together with the postponement and delay of a number of tasks. The GAAP working loss in 2020 was $1.7 million, inclusive of an insurance coverage loss restoration of $26.0 million offset by restructuring and settlement prices and advisory charges of $24.7 million, in comparison with an working lack of $29.4 million in 2019. The advance in working loss was primarily because of the insurance coverage loss restoration, the optimistic influence of price financial savings initiatives and a decrease stage of losses on the EPC loss contracts, partially offset by the divestiture of Loibl and the impacts of COVID-19 on income in all three segments. Adjusted EBITDA improved to $45.1 million in comparison with $45.0 million in 2019. Complete bookings in 2020 had been $645.0 million, and backlog at December 31, 2020 was $535.0 million, a 21.3% enhance in comparison with December 31, 2019.

Babcock & Wilcox Renewable phase revenues had been $156.2 million in 2020, a lower of 24.0% in comparison with $205.6 million in 2019, primarily because of the superior completion of actions on the European EPC loss contracts within the prior 12 months in addition to new anticipated tasks and elements orders being deferred on account of COVID-19 and the divestiture of Loibl, a supplies dealing with enterprise in Germany that generated revenues of roughly $14.3 million in 2019, partially offset by a better stage of actions on two operations and upkeep contracts within the U.Ok. which adopted the turnover of the EPC loss contracts to the purchasers. Adjusted EBITDA improved to $25.0 million in comparison with $1.6 million within the prior 12 months, primarily because of the loss restoration of $26.0 million acknowledged in 2020 beneath an October 10, 2020 settlement settlement with an insurer in reference to 5 of the six European EPC loss contracts, in addition to decrease prices associated to the loss contracts. In 2020, the phase recorded $3.7 million in web losses as in comparison with $6.9 million of equal losses recorded in 2019, inclusive of guarantee expense. The Adjusted EBITDA enchancment was additionally partially offset by the divestiture of Loibl and decrease quantity, as described above. The phase adjusted gross revenue was $58.8 million in 2020, an enchancment of $28.8 million in comparison with $30.0 million in 2019.

Babcock & Wilcox Environmental phase revenues had been $108.0 million in 2020, a lower of 60.8% in comparison with $275.6 million in 2019, primarily because of the completion of huge building tasks in 2019 and a decrease stage of exercise because of the postponement of latest tasks by a number of clients on account of COVID-19. Adjusted EBITDA declined to $3.5 million in comparison with $12.5 million within the prior 12 months, primarily attributable to the impacts of decrease quantity, partially offset by a decrease proportion of overhead being allotted to the phase. Adjusted gross revenue was $23.5 million in 2020, in comparison with $48.4 million within the prior 12 months. At December 31, 2020, the B&W Environmental phase had two important loss contracts, with web losses of $1.3 million and $5.6 million in 2020 and 2019, respectively. As of December 31, 2020, the primary contract was roughly 100% full with solely guarantee obligations remaining and the second contract was roughly 99% full with ultimate completion anticipated within the first quarter of 2021.

Babcock & Wilcox Thermal phase revenues had been $305.0 million in 2020, a lower of 25.6% in comparison with $409.7 million within the prior 12 months, primarily because of the adversarial impacts of COVID-19 leading to decrease elements, building, package deal boilers and worldwide service orders, in addition to the completion of huge building tasks within the prior 12 months. Adjusted EBITDA in 2020 declined to $35.4 million in comparison with $51.4 million within the prior 12 months, primarily on account of decrease quantity and a better proportion of overhead being allotted to the phase that was beforehand allotted to different segments, partially offset by favorable product combine and a full interval of price financial savings and restructuring initiatives benefiting 2020; adjusted EBITDA margin was 11.6% for the 12 months in comparison with 12.5% in 2019. Gross revenue margin within the phase was 29.9% in 2020, in comparison with 22.3% within the prior 12 months; adjusted gross revenue within the phase in 2020 was $91.2 million, which was flat in comparison with the prior 12 months primarily on account of favorable product combine and the consequences of a full interval of price financial savings and restructuring initiatives benefiting 2020, offset by decrease quantity.

COVID-19 Influence

The worldwide COVID-19 pandemic has disrupted enterprise operations, commerce, commerce, monetary and credit score markets, and each day life all through the world. The Firm’s enterprise has been, and continues to be, adversely impacted by the measures taken and restrictions imposed within the international locations wherein it operates and by native governments and others to regulate the unfold of this virus. These measures and restrictions have various broadly and have been topic to important modifications infrequently relying on the modifications within the severity of the virus in these international locations and localities. These restrictions, together with journey and curtailment of different exercise, negatively influence the Firm’s capability to conduct enterprise. The volatility and variability of the virus has restricted the Firm’s capability to forecast the influence of the virus on its clients and its enterprise. The persevering with resurgence of COVID-19, together with a minimum of one new pressure thereof, has resulted within the reimposition of sure restrictions and will result in different restrictions being applied in response to efforts to scale back the unfold of the virus. These various and altering occasions have brought about lots of the tasks the Firm had anticipated would start in 2020 to be delayed into 2021 and past. Many shoppers and tasks require B&W’s workers to journey to buyer and undertaking worksites. Sure clients and important tasks are situated in areas the place journey restrictions have been imposed, sure clients have closed or decreased on-site actions, and timelines for completion of sure tasks have, as famous above, been prolonged into 2021 and past. Moreover, out of concern for the Firm’s workers, even the place restrictions allow workers to return to its places of work and worksites, the Firm has incurred further prices to guard its workers in addition to advising those that are uncomfortable returning to worksites because of the pandemic that they don’t seem to be required to take action for an indefinite time period. The ensuing uncertainty regarding, amongst different issues, the unfold and financial influence of the virus has additionally brought about important volatility and, at occasions, illiquidity in world fairness and credit score markets. The complete extent of the COVID-19 influence on the Firm’s operational and monetary efficiency will depend upon future developments, together with the final word length and unfold of the pandemic and associated actions taken by the U.S. authorities, state and native authorities officers, and worldwide governments to forestall illness unfold, in addition to the supply and effectiveness of COVID-19 vaccinations within the U.S. and overseas, all of that are unsure, out of the Firm’s management, and can’t be predicted.

Liquidity and Stability Sheet

At December 31, 2020, the Firm had whole debt of $347.6 million, an unrestricted money steadiness of $57.3 million and borrowing availability of $33.7 million.

As beforehand disclosed, on February 12, 2021 the Firm closed an underwritten public providing of 29,487,180 shares of widespread inventory, which included 3,846,154 shares issued in reference to the underwriter’s choice to buy further shares, at a value to the general public of $5.85 per share, for gross proceeds of roughly $172.5 million. On February 12, 2021 the Firm additionally closed an underwritten public providing of $125.0 million combination principal quantity of 8.125% senior notes due 2026, which included $5 million combination principal quantity of senior notes issued in reference to the underwriters’ choice to buy senior notes. Gross proceeds for each choices are unique of underwriting reductions and commissions and estimated providing bills payable by the Firm.

Along with the general public choices, B. Riley Monetary, Inc. exchanged $35 million of its current Tranche A time period mortgage for $35 million principal quantity of senior notes in a concurrent non-public providing, and the rate of interest on the remaining Tranche A time period mortgage steadiness was decreased to an rate of interest of 6.625%, in comparison with its prior fee of 12%.

The 2 choices resulted in web proceeds of roughly $283 million after deducting underwriting reductions and commissions, however earlier than bills.

On February 16, 2021, the Firm pay as you go $167.1 million in the direction of the excellent revolving credit score facility, decreasing the excellent borrowing steadiness to zero.

On March 4, 2021, the Firm amended its Credit score Settlement to, amongst different issues, scale back its revolving borrowing availability to zero and its letter of credit score availability to $130 million. On March 4, 2021 the Firm additionally paid $21.8 million of accrued and deferred financial institution charges and $75 million in the direction of its current Tranche A final out time period mortgage.

Taking into consideration the consequences of the above strategic actions, together with the online proceeds of public choices after underwriting reductions and commissions, however earlier than bills; prepayment of the revolving credit score facility; and the partial paydown of the Tranche A time period mortgage and the fee of financial institution charges, in addition to deferred curiosity, modification charges and estimated advisory charges; pro-forma whole debt and unrestricted money at December 31, 2020 could be $233.3 million and $72.5 million, respectively.

As well as, primarily based on the efficiency of the Firm’s home certified pension plan, the minimal required funding contributions by way of 2026 have been decreased by 75%, as beforehand disclosed. The present whole minimal required funding contribution for the interval 2021-2026 is $35 million, to be contributed within the subsequent two years. That is $107 million much less in comparison with the Firm’s earlier expectation for the interval from 2021-2026. These numbers are topic to alter with the efficiency of the pension fund investments.

Price Financial savings Measures Persevering with

Along with the $119 million of price financial savings initiatives beforehand disclosed, the Firm applied roughly $8 million of further price financial savings initiatives in 2020, for a complete of $127 million. The Firm has additionally recognized one other $11 million of price financial savings actions anticipated to be applied starting within the first quarter of 2021.

Earnings Name Info

B&W plans to host a convention name and webcast on Tuesday, March 9, 2021 at 8 a.m. ET to debate the Firm’s fourth quarter and full 12 months 2020 outcomes. The listen-only audio of the convention name will probably be broadcast reside through the Web on B&W’s Investor Relations website. The dial-in quantity for members within the U.S. is (833) 227-5843; the dial-in quantity for members exterior the U.S. is (647) 689-4070. The convention ID for all members is 5390408. A replay of this convention name will stay accessible within the investor relations part of the Firm’s web site for a restricted time.

Non-GAAP Monetary Measures

The Firm makes use of non-GAAP monetary measures internally to judge its efficiency and in making monetary and operational choices. When considered at the side of GAAP outcomes and the accompanying reconciliation, the Firm believes that its presentation of those measures gives buyers with higher transparency and a higher understanding of things affecting its monetary situation and outcomes of operations than GAAP measures alone. As beforehand disclosed, the Firm modified its reportable segments in 2020 and has recast prior interval outcomes to account for this transformation. Moreover, the Firm redefined its definition of adjusted EBITDA to get rid of the consequences of sure objects together with the loss from a non-strategic enterprise, curiosity on letters of credit score included in price of operations and loss on enterprise held on the market. Prior interval outcomes have been revised to adapt with the revised definition and current separate reconciling objects in our reconciliation.

This launch presents adjusted gross revenue for every enterprise phase and adjusted EBITDA, that are non-GAAP monetary measures. Adjusted EBITDA on a consolidated foundation is outlined because the sum of the adjusted EBITDA for every of the segments, additional adjusted for company allocations and analysis and growth prices. At a phase stage, the adjusted EBITDA offered is in line with the best way the Firm’s chief working resolution maker opinions the outcomes of operations and makes strategic choices concerning the enterprise and is calculated as earnings earlier than curiosity, tax, depreciation and amortization adjusted for objects similar to positive factors or losses on asset gross sales, mark to market (“MTM”) pension changes, restructuring and spin prices, impairments, losses on debt extinguishment, prices associated to monetary consulting required beneath the U.S. Revolving Credit score Facility and different prices that is probably not straight controllable by phase administration and should not allotted to the phase. The Firm offered consolidated Adjusted EBITDA as a result of it believes it’s helpful to buyers to assist facilitate comparisons of the continuing, working efficiency earlier than company overhead and different bills not attributable to the working efficiency of the Firm’s income producing segments. This launch additionally presents sure targets for our adjusted EBITDA sooner or later; these targets should not supposed as steerage concerning how the Firm believes the enterprise will carry out. The Firm is unable to reconcile these targets to their GAAP counterparts with out unreasonable effort and expense because of the aspirational nature of those targets.

This launch additionally presents adjusted gross revenue by phase. The Firm believes that adjusted gross revenue by phase is helpful to buyers to assist facilitate comparisons of the continuing, working efficiency of the segments by excluding bills associated to, amongst different issues, actions associated to the spin-off, actions associated to numerous restructuring actions the Firm has undertaken, company overhead (similar to SG&A bills and analysis and growth prices) and sure non-cash bills similar to intangible amortization and goodwill impairments that aren’t allotted by phase.

Ahead-Wanting Statements

This press launch accommodates forward-looking statements throughout the which means of the Non-public Securities Litigation Reform Act of 1995. All statements apart from statements of historic or present reality included within the launch are forward-looking statements. You shouldn’t place undue reliance on these statements. These forward-looking statements are primarily based on administration’s present expectations and contain quite a lot of dangers and uncertainties, together with, amongst different issues, the influence of COVID-19 on the Firm, the capital markets and world financial local weather usually; the Firm’s recognition of any asset impairments on account of any decline within the worth of its belongings or efforts to get rid of any belongings sooner or later; the Firm’s capability to acquire and preserve ample financing to supply liquidity to satisfy its enterprise targets, surety bonds, letters of credit score and related financing; the Firm’s capability to adjust to the necessities of, and to service the indebtedness beneath, the Firm’s A&R Credit score Settlement; the Firm’s use of proceeds from its latest choices of widespread inventory and eight.125% senior notes due 2026; the extremely aggressive nature of the Firm’s companies and skill to win work, together with recognized undertaking alternatives within the pipeline; basic financial and enterprise situations, together with modifications in rates of interest and foreign money alternate charges; cancellations of and changes to backlog and the ensuing influence from utilizing backlog as an indicator of future earnings; the Firm’s capability to carry out contracts on time and on price range, in accordance with the schedules and phrases established by the relevant contracts with clients; failure by third-party subcontractors, companions or suppliers to carry out their obligations on time and as specified; the Firm’s capability to efficiently resolve claims by distributors for items and providers supplied and claims by clients for objects beneath guarantee; the Firm’s capability to comprehend anticipated financial savings and operational advantages from its restructuring plans, and different cost-savings initiatives; the Firm’s capability to efficiently tackle productiveness and schedule points in its B&W Renewable, B&W Environmental and B&W Thermal segments, together with the flexibility to finish its B&W Renewable’s European EPC tasks and B&W Environmental’s U.S. loss tasks throughout the anticipated timeframe and the estimated prices; the Firm’s capability to efficiently accomplice with third events to win and execute contracts inside its B&W Renewable, B&W Environmental and B&W Thermal segments; modifications within the Firm’s efficient tax fee and tax positions, together with any limitation on its capability to make use of its web working loss carryforwards and different tax belongings; the Firm’s capability to efficiently handle analysis and growth tasks and prices, together with its efforts to efficiently develop and commercialize new applied sciences and merchandise; the working dangers usually incident to its traces of enterprise, together with skilled legal responsibility, product legal responsibility, guarantee and different claims towards the Firm; difficulties the Firm could encounter in acquiring regulatory or different crucial permits or approvals; modifications in actuarial assumptions and market fluctuations that have an effect on its web pension liabilities and revenue; the Firm’s capability to efficiently compete with present and future opponents; the Firm’s capability to barter and preserve good relationships with labor unions; modifications in pension and medical bills related to its retirement profit packages; social, political, aggressive and financial conditions in overseas international locations the place it does enterprise or seeks new enterprise; and the opposite components specified and set forth beneath “Threat Components” within the Firm’s periodic studies filed with the Securities and Alternate Fee, together with the Firm’s most up-to-date annual report on Type 10-Ok and its quarterly report on Type 10-Q for the quarter ended September 30, 2020.

These forward-looking statements are made primarily based upon detailed assumptions and mirror administration’s present expectations and beliefs. Whereas the Firm believes that these assumptions underlying the forward-looking statements are affordable, the Firm cautions that it is vitally tough to foretell the influence of recognized components, and it’s not possible for the Firm to anticipate all components that might have an effect on precise outcomes. The forward-looking statements included herein are made solely as of the date hereof. The Firm undertakes no obligation to publicly replace or revise any forward-looking assertion on account of new data, future occasions, or in any other case, besides as required by legislation.

About B&W Enterprises Headquartered in Akron, Ohio, Babcock & Wilcox Enterprises is a worldwide chief in vitality and environmental applied sciences and providers for the ability and industrial markets. Comply with B&W on LinkedIn and be taught extra at www.babcock.com.

Exhibit 1

Babcock & Wilcox Enterprises, Inc.

Condensed Consolidated Statements of Operations(1)(2)

(In hundreds of thousands, besides per share quantities)

 

Three months ended

December 31,

12 months ended

December 31,

2020

2019

2020

2019

Revenues

$

149.9

$

180.4

$

566.3

$

859.1

Prices and bills:

Price of operations

107.8

135.7

400.5

698.9

Promoting, basic and administrative bills

33.9

30.6

141.7

151.1

Advisory charges and settlement prices

2.8

5.1

12.9

27.9

Restructuring actions

5.1

2.1

11.8

11.7

Analysis and growth prices

0.5

0.6

4.4

2.9

Acquire on asset disposals, web

(2.3

)

(3.7

)

(3.3

)

(3.9

)

Complete prices and bills

147.7

170.4

568.1

888.5

Working revenue (loss)

2.2

10.0

(1.7

)

(29.4

)

Different (expense) revenue:

Curiosity expense

(10.0

)

(27.5

)

(59.8

)

(94.9

)

Curiosity revenue

0.2

0.1

0.6

0.9

Loss on debt extinguishment

(6.2

)

(4.0

)

Loss on sale of enterprise

(0.1

)

(3.6

)

Profit plans, web

(16.7

)

13.7

5.6

22.8

Overseas alternate

36.1

10.8

58.8

(16.6

)

Different – web

1.9

0.1

(1.1

)

0.3

Complete different revenue (expense)

11.5

(2.8

)

(2.2

)

(95.1

)

Earnings (loss) earlier than revenue tax expense

13.7

7.2

(3.9

)

(124.4

)

Earnings tax expense

8.6

1.7

8.2

5.3

Earnings (loss) from persevering with operations

5.0

5.5

(12.1

)

(129.7

)

Earnings from discontinued operations, web of tax

1.8

0.7

Internet revenue (loss)

5.0

5.5

(10.3

)

(129.0

)

Internet (revenue) loss attributable to non-controlling curiosity

(0.4

)

6.9

7.1

Internet revenue (loss) attributable to stockholders

$

4.6

$

12.4

$

(10.3

)

$

(122.0

)

Fundamental earnings (loss) per share – persevering with operations

$

0.09

$

0.26

$

(0.25

)

$

(3.89

)

Fundamental earnings per share – discontinued operations

0.04

0.02

Fundamental earnings (loss) per share

$

0.09

$

0.26

$

(0.21

)

$

(3.87

)

Diluted earnings (loss) per share – persevering with operations

$

0.09

$

0.26

$

(0.25

)

$

(3.89

)

Diluted earnings per share – discontinued operations

0.04

0.02

Diluted earnings (loss) per share

$

0.09

$

0.26

$

(0.21

)

$

(3.87

)

Shares used within the computation of earnings (loss) per share:

Fundamental

52.1

48.0

48.7

31.5

Diluted

53.4

48.4

48.7

31.5

(1)

Figures is probably not clerically correct on account of rounding.

(2)

Outcomes for the twelve months ended December 31, 2020, embrace the popularity of a $26.0 million loss restoration settlement associated to sure historic EPC loss contracts within the third quarter.

Exhibit 2

Babcock & Wilcox Enterprises, Inc.

Condensed Consolidated Stability Sheets(1)

 

(In hundreds of thousands, besides per share quantity)

December 31, 2020

December 31, 2019

Money and money equivalents

$

57.3

$

43.8

Restricted money and money equivalents

10.1

13.2

Accounts receivable – commerce, web

128.3

142.2

Accounts receivable – different

35.4

23.3

Contracts in progress

59.3

91.6

Inventories

67.2

63.1

Different present belongings

26.4

27.0

Present belongings held on the market

4.7

8.1

Complete present belongings

388.8

412.2

Internet property, plant and gear, and finance lease

85.1

97.1

Goodwill

47.4

47.2

Intangible belongings

23.9

25.3

Proper-of-use belongings

10.8

12.5

Different belongings

24.7

25.0

Non-current belongings held on the market

11.2

7.3

Complete belongings

$

591.8

$

626.5

Revolving credit score services

179.0

Final out time period loans

104.0

Accounts payable

73.5

109.9

Accrued worker advantages

13.9

18.3

Advance billings on contracts

64.0

75.3

Accrued guarantee expense

25.4

33.4

Working lease liabilities

4.0

4.3

Different accrued liabilities

81.7

68.8

Present liabilities held on the market

8.3

9.5

Complete present liabilities

270.8

602.5

Revolving credit score services

164.3

Final out time period loans

183.3

Pension and different amassed postretirement profit liabilities

252.3

259.3

Non-current finance lease liabilities

29.7

30.5

Non-current working lease liabilities

7.0

8.4

Different non-current liabilities

22.6

20.9

Complete liabilities

930.1

921.5

Commitments and contingencies

Stockholders’ deficit:

Frequent inventory, par worth $0.01 per share, licensed shares of 500,000; issued and excellent shares of 54,452 and 46,374 at December 31, 2020 and 2019, respectively

4.8

4.7

Capital in extra of par worth

1,164.4

1,142.6

Treasury inventory at price, 718 and 616 shares at December 31, 2020 and 2019, respectively

(106.0

)

(105.7

)

Gathered deficit

(1,350.2

)

(1,339.9

)

Gathered different complete revenue (loss)

(52.4

)

1.9

Stockholders’ deficit attributable to shareholders

(339.4

)

(296.4

)

Non-controlling curiosity

1.1

1.4

Complete stockholders’ deficit

(338.3

)

(294.9

)

Complete liabilities and stockholders’ deficit

$

591.8

$

626.5

(1)

Figures is probably not clerically correct on account of rounding.

Exhibit 3

Babcock & Wilcox Enterprises, Inc.

Condensed Consolidated Statements of Money Flows(1)

(In hundreds of thousands)

 

12 months ended December 31,

2020

2019

Money flows from working actions:

Internet loss

$

(10.3

)

$

(129.0

)

Changes to reconcile web loss to web money utilized in working actions:

Depreciation and amortization of long-lived belongings

16.8

23.6

Amortization of deferred financing prices, debt low cost and payment-in-kind curiosity

16.7

61.2

Amortization of warranty payment

1.2

Non-cash working lease expense

4.8

5.4

Loss on sale of enterprise

0.1

3.6

Loss on debt extinguishment

6.2

4.0

Beneficial properties on asset disposals

(3.3

)

(3.9

)

Provision for (profit from) deferred revenue taxes, together with valuation allowances

1.8

(0.9

)

Mark to market (positive factors) losses and prior service price amortization for pension and postretirement plans

22.2

(10.7

)

Inventory-based compensation, web of related revenue taxes

4.6

3.1

Equitized non-cash curiosity expense

13.5

Overseas alternate

(58.8

)

16.6

Adjustments in belongings and liabilities:

Accounts receivable

21.7

63.9

Contracts in progress

35.9

48.5

Advance billings on contracts

(13.1

)

(71.3

)

Inventories

(4.1

)

(4.1

)

Earnings taxes

(2.4

)

1.3

Accounts payable

(42.0

)

(80.5

)

Accrued and different present liabilities

9.1

(23.1

)

Accrued contract loss

(5.6

)

(50.7

)

Pension liabilities, accrued postretirement advantages and worker advantages

(37.2

)

(16.3

)

Different, web

(18.5

)

(16.9

)

Internet money utilized in working actions

(40.8

)

(176.3

)

Money flows from investing actions:

Buy of property, plant and gear

(8.2

)

(3.8

)

Proceeds from sale of enterprise

8.0

7.4

Purchases of available-for-sale securities

(29.1

)

(8.9

)

Gross sales and maturities of available-for-sale securities

26.6

11.5

Different, web

5.0

2.5

Internet money from investing actions

2.2

8.8

Exhibit 3

Babcock & Wilcox Enterprises, Inc.

Condensed Consolidated Statements of Money Flows(1)

(In hundreds of thousands)

 

12 months ended December 31,

2020

2019

Money flows from financing actions:

Borrowings beneath our U.S. revolving credit score facility

158.9

291.6

Repayments of our U.S. revolving credit score facility

(173.6

)

(257.5

)

Borrowings beneath Final Out Time period Loans

70.0

151.4

Repayments beneath Final Out Time period Loans

(41.8

)

Repayments beneath our overseas revolving credit score services

(0.6

)

Shares of our widespread inventory returned to treasury inventory

(0.3

)

(0.1

)

Proceeds from rights providing

40.4

Prices associated to rights providing

(0.8

)

Debt issuance prices

(10.6

)

(16.6

)

Issuance of widespread inventory

1.4

Different, web

(0.3

)

(0.3

)

Internet money from financing actions

44.1

167.0

Results of alternate fee modifications on money

5.0

(2.8

)

Internet enhance (lower) in money, money equivalents and restricted money

10.5

(3.3

)

Money, money equivalents and restricted money, starting of interval

56.9

60.3

Money, money equivalents and restricted money, finish of interval

$

67.4

$

56.9

(1)

Figures is probably not clerically correct on account of rounding.

Exhibit 4

Babcock & Wilcox Enterprises, Inc.

Phase Info(1)

(In hundreds of thousands)

 

SEGMENT RESULTS

Three months ended

December 31,

Twelve months ended

December 31,

2020

2019

2020

2019

REVENUES:

Babcock & Wilcox Renewable

$

37.6

$

46.7

$

156.2

$

205.6

Babcock & Wilcox Environmental

31.6

41.2

108.0

275.6

Babcock & Wilcox Thermal

81.0

94.2

305.0

409.7

Eliminations

(0.4

)

(1.5

)

(2.8

)

(31.8

)

$

149.9

$

180.4

$

566.3

$

859.1

ADJUSTED EBITDA(2)(3):

Babcock & Wilcox Renewable

$

3.0

$

5.8

$

25.0

$

1.6

Babcock & Wilcox Environmental

2.4

6.3

3.5

12.5

Babcock & Wilcox Thermal

12.8

11.9

35.4

51.4

Company

(1.6

)

(0.6

)

(14.4

)

(17.6

)

Analysis and growth prices

(0.5

)

(0.6

)

(4.4

)

(2.9

)

$

16.1

$

22.8

$

45.1

$

45.0

AMORTIZATION EXPENSE:

Babcock & Wilcox Renewable(5)

$

0.2

$

0.1

$

0.7

$

0.6

Babcock & Wilcox Environmental

0.7

0.8

3.0

3.3

Babcock & Wilcox Thermal(5)

0.5

0.1

1.8

0.4

$

1.4

$

1.0

$

5.5

$

4.3

DEPRECIATION EXPENSE:

Babcock & Wilcox Renewable

$

1.4

$

1.5

$

3.6

$

5.2

Babcock & Wilcox Environmental

0.2

0.2

1.7

1.8

Babcock & Wilcox Thermal

1.5

1.8

6.0

12.3

Company

$

3.1

$

3.5

$

11.3

$

19.3

As of December 31,

BACKLOG:

2020

2019

Babcock & Wilcox Renewable(4)

208

226

Babcock & Wilcox Environmental

106

81

Babcock & Wilcox Thermal

226

140

Different/Eliminations

(5

)

(6

)

$

535

$

441

(1)

Figures is probably not clerically correct on account of rounding.

(2)

Throughout the 12 months ended December 31, 2020, we redefined our definition of adjusted EBITDA to get rid of the consequences of sure objects together with loss from a non-strategic enterprise, curiosity on letters of credit score included in price of operations and loss on enterprise held on the market. Consequently, adjusted EBITDA in prior durations have been revised to adapt with the revised definition and current separate reconciling objects in our reconciliation.

(3)

Adjusted EBITDA for the twelve months ended December 31, 2020, embrace the popularity of a $26.0 million loss restoration settlement associated to sure historic EPC loss contracts within the third quarter.

(4)

B&W Renewable phase backlog at December 31, 2020, consists of $164.1 million associated to long-term operation and upkeep contracts for renewable vitality crops, with remaining durations extending till 2034. Typically, such contracts have a length of 10-20 years and embrace choices to increase.

(5)

Amortization expense within the B&W Renewable and B&W Thermal segments embrace $0.1 million and $0.4 million in finance lease amortization for the three months ended December 31, 2020, respectively. Amortization expense within the B&W Renewable and B&W Thermal segments embrace $0.5 million and $1.6 million in finance lease amortization for the twelve months ended December 31, 2020, respectively.

Exhibit 5

Babcock & Wilcox Enterprises, Inc.

Reconciliation of Adjusted EBITDA(4)

(In hundreds of thousands)

 

Three months ended

December 31,

Twelve months ended

December 31,

2020

2019

2020

2019

Adjusted EBITDA (1)(2)

B&W Renewable phase

$

3.0

$

5.8

$

25.0

$

1.6

B&W Environmental phase

2.4

6.3

3.5

12.5

B&W Thermal phase

12.8

11.9

35.4

51.4

Company

(1.6

)

(0.6

)

(14.4

)

(17.6

)

Analysis and growth prices

(0.5

)

(0.6

)

(4.4

)

(2.9

)

16.1

22.8

45.1

45.0

Restructuring actions

(5.1

)

(2.1

)

(11.8

)

(11.7

)

Monetary advisory providers

(1.2

)

(0.7

)

(4.4

)

(9.1

)

Settlement price to exit Vølund contract (3)

(6.6

)

Advisory charges for settlement prices and liquidity planning

(1.2

)

(4.4

)

(6.4

)

(11.8

)

Litigation charges and settlement

(0.4

)

(2.1

)

(0.5

)

Loss on enterprise held on the market

(0.1

)

(1.4

)

(0.5

)

(5.9

)

Inventory compensation

(1.5

)

(1.3

)

(4.6

)

(3.4

)

Curiosity on letters of credit score included in price of operations

(0.9

)

(0.1

)

(0.9

)

(0.4

)

Depreciation & amortization

(4.5

)

(4.5

)

(16.8

)

(23.6

)

Loss from a non-strategic enterprise

(1.4

)

(2.0

)

(2.6

)

(5.5

)

Acquire on asset disposals, web

2.3

3.7

3.3

3.9

Working revenue (loss)

2.2

10.0

(1.7

)

(29.4

)

Curiosity expense, web

(9.8

)

(27.4

)

(59.2

)

(94.0

)

Loss on debt extinguishment

(6.2

)

(4.0

)

Loss on sale of enterprise

(0.1

)

(3.6

)

Internet pension profit earlier than MTM

6.4

3.6

28.8

14.0

MTM (loss) acquire from profit plans

(23.2

)

10.1

(23.2

)

8.8

Overseas alternate

36.1

10.8

58.8

(16.6

)

Different – web

1.9

0.1

(1.1

)

0.3

Complete different revenue (expense)

11.5

(2.8

)

(2.2

)

(95.1

)

Earnings (loss) earlier than revenue tax expense

13.7

7.2

(3.9

)

(124.4

)

Earnings tax expense

8.6

1.7

8.2

5.3

Earnings (loss) from persevering with operations

5.0

5.5

(12.1

)

(129.7

)

Earnings from discontinued operations, web of tax

1.8

0.7

Internet revenue (loss)

5.0

5.5

(10.3

)

(129.0

)

Internet (revenue) loss attributable to non-controlling curiosity

(0.4

)

6.9

7.1

Internet revenue (loss) attributable to stockholders

$

4.6

$

12.4

$

(10.3

)

$

(122.0

)

(1)

Throughout the 12 months ended December 31, 2020, we redefined our definition of adjusted EBITDA to get rid of the consequences of sure objects together with loss from a non-strategic enterprise, curiosity on letters of credit score included in price of operations and loss on enterprise held on the market. Consequently, adjusted EBITDA in prior durations have been revised to adapt with the revised definition and current separate reconciling objects in our reconciliation.

(2)

Adjusted EBITDA for the twelve months ended December 31, 2020, embrace the popularity of a $26.0 million loss restoration settlement associated to sure historic EPC loss contracts within the third quarter.

(3)

In March 2019, we entered right into a settlement in reference to an extra B&W Renewable waste-to-energy EPC contract, for which discover to proceed was not given and the contract was not began. The settlement eradicated our obligations to behave, and our threat associated to performing, because the prime EPC ought to the undertaking have moved ahead.

(4)

Figures is probably not clerically correct on account of rounding.

Exhibit 6

Babcock & Wilcox Enterprises, Inc.

Reconciliation of Adjusted Gross Revenue (Loss)(4)

(In hundreds of thousands)

 

Three months ended

December 31,

Twelve months ended

December 31,

2020

2019

2020

2019

Adjusted gross revenue (1)(2)(3)

Working revenue (loss)

$

2.2

$

10.0

$

(1.7

)

$

(29.4

)

Promoting, basic and administrative (“SG&A”) bills

33.8

30.5

141.4

150.6

Advisory charges and settlement prices

2.8

5.1

12.9

27.9

Intangible amortization expense

1.4

1.0

5.5

4.3

Restructuring actions

5.1

2.1

11.8

11.7

Analysis and growth prices

0.5

0.6

4.4

2.9

Loss from a non-strategic enterprise

1.4

2.0

2.6

5.5

Acquire on asset disposals, web

(2.3

)

(3.7

)

(3.3

)

(3.9

)

Adjusted gross revenue

44.8

47.6

173.6

169.5

Adjusted gross revenue by phase is as follows:

Three months ended

December 31,

Twelve months ended

December 31,

2020

2019

2020

2019

Adjusted gross revenue (1)(2)(3)

B&W Renewable phase

10.4

10.7

58.8

30.0

B&W Environmental phase

6.9

11.2

23.5

48.4

B&W Thermal phase

27.4

25.6

91.2

91.2

Adjusted gross revenue (loss)

44.8

47.6

173.6

169.5

(1)

Intangible amortization will not be allotted to the segments’ adjusted gross revenue, however depreciation is allotted to the segments’ adjusted gross revenue.

(2)

Adjusted gross revenue for the three months ended December 31, 2020 and December 31, 2019, excludes losses associated to a non-strategic enterprise that was beforehand included in Adjusted gross revenue throughout the B&W Environmental phase and totals $1.4 million and $2.0 million, respectively. Adjusted gross revenue for the twelve months ended December 31, 2020 and December 31, 2019, excludes losses associated to a non-strategic enterprise that was beforehand included in Adjusted gross revenue throughout the B&W Environmental phase and totals $2.6 million and $5.5 million, respectively.

(3)

Adjusted gross revenue for the 12 months ended December 31, 2020, consists of the popularity of a $26.0 million loss restoration settlement associated to sure historic EPC loss contracts within the third quarter.

(4)

Figures is probably not clerically correct on account of rounding.

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