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BWX Technologies Reports Third Quarter 2023 Results

  • 3Q23 revenues of $590.0 million
  • 3Q23 net income of $60.4 million, adjusted EBITDA(1) of $106.5 million
  • 3Q23 diluted GAAP EPS of $0.66, non-GAAP(1) EPS of $0.67
  • Multiple agreements signed to progress microreactor development for commercial applications
  • Narrowing 2023 non-GAAP(1) EPS guidance to $2.90-$2.95
  • Preliminary 2024 guidance for non-GAAP EPS(1) and adjusted EBITDA(1) to grow mid-single-digits

BWX Technologies, Inc. (NYSE: BWXT) ("BWXT", "we", "us" or the "Company") reported third quarter 2023 GAAP net income attributable to BWXT of $60.3 million, or diluted earnings per share (EPS) of $0.66, on third quarter revenues of $590.0 million. Third quarter 2023 non-GAAP(1) net income attributable to BWXT was $61.5 million, or non-GAAP(1) diluted EPS of $0.67. Third quarter 2023 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA)(1) was $106.5 million. A reconciliation of non-GAAP results are detailed in Exhibit 1.

“We reported solid third quarter 2023 results with double-digit organic revenue growth, good operational performance and significantly improved free cash flow,” said Rex D. Geveden, president and chief executive officer. “Importantly, as expected, the benefits of our streamlined talent acquisition and onboarding processes, especially in our Government Operations segment, manifested through sequential margin improvement in the quarter.”

“2023 has been an exciting year for BWXT with significant program wins and competitive gains in the global security, clean energy and medical markets that we serve,” said Geveden. “Demand in our markets continues to build, and we are postured for growth where our power and propulsion capabilities set us apart from our competition. Further, our intense focus on operational performance and continuous improvement at all levels in the organization is bearing fruit.”

“With better visibility into the remainder of the year, we are narrowing our 2023 guidance range, with a mid-point slightly above our initial guidance. Looking to 2024, the lower naval propulsion volumes we have been expecting from the aircraft carrier ordering cadence gap in 2024 and 2025 will be more than offset by new program growth in Government Operations, expanding opportunities in commercial nuclear power and accelerating growth in nuclear medicine. Accordingly, we forecast mid-single-digit adjusted EBITDA and Non-GAAP EPS growth in 2024, consistent with the strong operational organic growth rates we have seen the past couple years.”

Financial Results Summary

 

 

Three Months Ended September 30,

 

 

 

 

 

 

 

2023

 

 

 

2022

 

 

$ Change

 

% Change

 

 

(Unaudited)

(In millions, except per share amounts)

Revenues

 

 

 

 

 

 

 

 

Government Operations

 

$

477.9

 

 

$

422.5

 

 

$

55.3

 

 

13

%

Commercial Operations

 

$

112.4

 

 

$

101.8

 

 

$

10.6

 

 

10

%

Consolidated

 

$

590.0

 

 

$

523.7

 

 

$

66.3

 

 

13

%

Operating Income

 

 

 

 

 

 

 

 

Government Operations

 

$

85.6

 

 

$

77.7

 

 

$

7.9

 

 

10

%

Commercial Operations

 

$

9.1

 

 

$

6.8

 

 

$

2.2

 

 

33

%

Unallocated Corporate (Expense)

 

$

(9.4

)

 

$

(4.7

)

 

$

(4.7

)

 

NM

 

Consolidated

 

$

85.4

 

 

$

79.9

 

 

$

5.5

 

 

7

%

Consolidated non-GAAP(1)

 

$

86.7

 

 

$

81.5

 

 

$

5.2

 

 

6

%

EPS (Diluted)

 

 

 

 

 

 

 

 

GAAP

 

$

0.66

 

 

$

0.67

 

 

$

(0.01

)

 

(1

)%

Non-GAAP(1)

 

$

0.67

 

 

$

0.69

 

 

$

(0.02

)

 

(3

)%

Net Income

 

 

 

 

 

 

 

 

GAAP

 

$

60.4

 

 

$

61.8

 

 

$

(1.5

)

 

(2

)%

Non-GAAP(1)

 

$

61.5

 

 

$

63.2

 

 

$

(1.7

)

 

(3

)%

Adjusted EBITDA(1)

 

 

 

 

 

 

 

 

Government Operations

 

$

99.0

 

 

$

90.4

 

 

$

8.7

 

 

10

%

Commercial Operations

 

$

13.9

 

 

$

11.5

 

 

$

2.5

 

 

22

%

Corporate

 

$

(6.4

)

 

$

(1.7

)

 

$

(4.7

)

 

NM

 

Consolidated

 

$

106.5

 

 

$

100.1

 

 

$

6.4

 

 

6

%

Cash Flows

 

 

 

 

 

 

 

 

Operating Cash Flow(2)

 

$

74.3

 

 

$

65.0

 

 

$

9.4

 

 

14

%

Capital Expenditures(2)

 

$

30.9

 

 

$

39.6

 

 

$

(8.7

)

 

(22

)%

Free Cash Flow(1)

 

$

43.4

 

 

$

25.4

 

 

$

18.1

 

 

71

%

Dividends Paid(2)

 

$

21.1

 

 

$

20.1

 

 

$

1.0

 

 

5

%

NM = Not Meaningful

(2) Items named in the Financial Results Summary differ from names in BWXT Financial Statement. Operating Cash Flow = Net Cash Provided by Operating Activities; Capital Expenditures = Purchases of Property, Plant and Equipment; Share Repurchases = Repurchases of Common Stock; Dividends Paid = Dividends Paid to Common Shareholders

Revenues

Third quarter revenue increased in both operating segments. The Government Operations increase was driven by higher naval nuclear component production and microreactors volume, partially offset by lower long-lead material procurement. The Commercial Operations increase was driven by an increase in medical sales as well as higher revenue associated with commercial nuclear field services, which was partially offset by lower fuel handling volumes.

Operating Income and Adjusted EBITDA(1)

Third quarter operating income increased in both operating segments. The Government Operations increase was due to higher revenue, but partially offset by costs associated with the increase in staffing levels and associated training and related inefficiencies, as well as mix, due to higher advanced technologies revenue. The Commercial Operations increase was due to improved profitability in medical, and partially offset by less favorable commercial nuclear business mix that was weighted toward refurbishment and life extension field services, compared to a greater mix of outage work in the third quarter of 2022.

Third quarter total adjusted EBITDA(1) increased for the reasons noted above.

EPS

Third quarter GAAP and non-GAAP EPS(1) decreased as higher operating income was offset by higher interest expense and lower pension income.

Cash Flows

Operating cash flow increased as lower net income was offset by better working capital management. Lower capital expenditures were driven by lower spending on two major growth capital campaigns for U.S. naval nuclear reactors and medical radioisotopes, both of which are nearing completion, partially offset by an increase in capital expenditures for microreactors.

Dividend

BWXT paid $21.1 million in dividends to shareholders in third quarter 2023. On October 30, 2023, the BWXT Board of Directors declared a quarterly cash dividend of $0.23 per common share payable on December 12, 2023, to shareholders of record on November 21, 2023.

2023 Guidance

BWXT reaffirmed its 2023 guidance for increased adjusted EBITDA and free cash flow, and narrowed its guidance range for non-GAAP(1) EPS.

(In millions, except per share amounts)

 

Year Ended

 

Year Ending

 

Year Ending

 

 

December 31, 2022

 

December 31, 2023

 

December 31, 2023

 

 

Results

 

Current Guidance

 

Prior Guidance

Revenue

 

$2,233

 

>$2,400

 

>$2,400

Adjusted EBITDA(1)

 

$439

 

~$475

 

~$475

Adjusted Pre-tax Income(1)

 

$378

 

~$350

 

~$350

Non-GAAP(1) Earnings Per Share

 

$3.13

 

$2.90 - $2.95

 

$2.85 - $3.00

Free Cash Flow(1)

 

$46

 

~$200

 

~$200

Additional information can be found in the 2023 third quarter earnings call presentation on the BWXT investor relations website at www.bwxt.com/investors. 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.

Conference Call to Discuss Third Quarter 2023 Results

Date: Wednesday, November 1, 2023, at 5:00 p.m. EST

Live Webcast: Investor Relations section of website at www.bwxt.com

Full Earnings Release Available on BWXT Website

A full version of this earnings release is available on our Investor Relations website at http://investors.bwxt.com/3Q2023-release.

BWXT may use its website (www.bwxt.com) as a channel of distribution of material Company information. Financial and other important information regarding BWXT is routinely accessible through and posted on our website. In addition, you may elect to automatically receive e-mail alerts and other information about BWXT by enrolling through the “Email Alerts” section of our website at http://investors.bwxt.com.

Non-GAAP Measures

BWXT uses and makes reference to adjusted EBITDA, free cash flow and free cash flow conversion, which are not recognized measures under GAAP. BWXT is providing these non-GAAP measures 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. Definitions for the non-GAAP measures are provided below and reconciliations are detailed in Exhibit 1, except that reconciliations of forward-looking GAAP measures are not provided because the company is unable to reliably forecast most of the items that are excluded from GAAP to calculate non-GAAP results. Other companies may define these measures differently or may utilize different non-GAAP measures, thus impacting comparability.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is calculated using non-GAAP net income, plus provision for income taxes, less other – net, less interest income, plus interest expense, plus depreciation and amortization.

Adjusted pre-tax income is non-GAAP income before provision for income taxes.

Free Cash Flow (FCF) is calculated using net income to derive net cash provided by (used in) operating activities less purchases of property, plant and equipment.

Free Cash Flow conversion is free cash flow divided by net income.

Non-GAAP Adjustments

Our GAAP financial results detailed in Exhibit 1 have been adjusted for the following items:

Restructuring and Transformation Costs: Restructuring and transformation related costs include restructuring charges as well as costs associated with our efforts to optimize underlying business processes through investments in information technology, process improvements and the implementation of strategic actions and initiatives which we deem to be incremental and non-recurring in nature.

Acquisition-related Costs: Acquisition-related costs relate to third-party professional service costs and one-time incremental costs associated with efforts to integrate the acquired business with our legacy operations.

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; our plans and expectations for each of our reportable segments, including growth opportunities and the expectations, timing and revenue of our strategic initiatives, such as medical radioisotopes, SMR components and recent acquisitions; disruptions to our supply chain and/or operations, changes in government regulations and other factors; and our expectations and guidance for 2023 and beyond. 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; federal budget uncertainty, the risk of future budget cuts, the impact of continuing resolution funding mechanisms and the debt ceiling, the potential for government shutdowns and changing funding and acquisition priorities; the demand for and competitiveness of nuclear products and services; capital priorities of power generating utilities and other customers; the timing of technology development, regulatory approvals and automation of production; the receipt and/or timing of government approvals; the potential recurrence of subsequent waves or strains of COVID-19 or similar diseases; labor market challenges, including employee retention and recruitment; 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, 2022 and subsequent Form 10-Q filings. 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

At BWX Technologies, Inc. (NYSE: BWXT), we are People Strong, Innovation Driven. Headquartered in Lynchburg, Virginia, BWXT is a Defense News Top 100 manufacturing and engineering innovator that provides safe and effective nuclear solutions for global security, clean energy, environmental restoration, nuclear medicine and space exploration. With more than 7,000 employees, BWXT has 14 major operating sites in the U.S., Canada and the U.K. In addition, BWXT joint ventures provide management and operations at a dozen U.S. Department of Energy and NASA facilities. For more information, visit www.bwxt.com. Follow us on LinkedIn, X, Facebook and Instagram.

(1) A reconciliation of non-GAAP results are detailed in Exhibit 1. Additional information can be found in the materials on the BWXT investor relations website at www.bwxt.com/investors.

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, 2023

 

 

GAAP

 

Restructuring & Transformation Costs

 

Acquisition-related Costs

 

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

Operating Income

$

85.4

 

 

$

1.1

 

 

$

0.3

 

 

 

$

86.7

 

Other Income (Expense)

 

(7.2

)

 

 

 

 

 

 

 

 

 

(7.2

)

Income Before Provision for Income Taxes

 

78.2

 

 

 

1.1

 

 

 

0.3

 

 

 

 

79.5

 

Provision for Income Taxes

 

(17.8

)

 

 

(0.1

)

 

 

(0.1

)

 

 

 

(18.0

)

Net Income

 

60.4

 

 

 

1.0

 

 

 

0.2

 

 

 

 

61.5

 

Net Income Attributable to Noncontrolling Interest

 

(0.1

)

 

 

 

 

 

 

 

 

 

(0.1

)

Net Income Attributable to BWXT

$

60.3

 

 

$

1.0

 

 

$

0.2

 

 

 

$

61.5

 

 

 

 

 

 

 

 

 

 

Diluted Shares Outstanding

 

91.9

 

 

 

 

 

 

 

 

91.9

 

Diluted Earnings per Common Share

$

0.66

 

 

$

0.01

 

 

$

0.00

 

 

 

$

0.67

 

Effective Tax Rate

 

22.8

%

 

 

 

 

 

 

 

22.6

%

 

 

 

 

 

 

 

 

 

 

Government Operations Operating Income

$

85.6

 

 

$

 

 

$

 

 

 

$

85.6

 

Commercial Operations Operating Income

$

9.1

 

 

$

0.1

 

 

$

0.1

 

 

 

$

9.4

 

Unallocated Corporate Operating Income

$

(9.4

)

 

$

1.0

 

 

$

0.1

 

 

 

$

(8.3

)

Three Months Ended September 30, 2022

 

 

GAAP

 

Restructuring Costs

 

Acquisition-related Costs

 

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

Operating Income

$

79.9

 

 

$

1.2

 

 

$

0.5

 

 

 

$

81.5

 

Other Income (Expense)

 

2.1

 

 

 

 

 

 

 

 

 

 

2.1

 

Income Before Provision for Income Taxes

 

82.0

 

 

 

1.2

 

 

 

0.5

 

 

 

 

83.7

 

Provision for Income Taxes

 

(20.2

)

 

 

(0.2

)

 

 

(0.1

)

 

 

 

(20.5

)

Net Income

 

61.8

 

 

 

1.0

 

 

 

0.4

 

 

 

 

63.2

 

Net Income Attributable to Noncontrolling Interest

 

(0.2

)

 

 

 

 

 

 

 

 

 

(0.2

)

Net Income Attributable to BWXT

$

61.6

 

 

$

1.0

 

 

$

0.4

 

 

 

$

63.0

 

 

 

 

 

 

 

 

 

 

Diluted Shares Outstanding

 

91.7

 

 

 

 

 

 

 

 

91.7

 

Diluted Earnings per Common Share

$

0.67

 

 

$

0.01

 

 

$

0.00

 

 

 

$

0.69

 

Effective Tax Rate

 

24.6

%

 

 

 

 

 

 

 

24.5

%

 

 

 

 

 

 

 

 

 

 

Government Operations Operating Income

$

77.7

 

 

$

 

 

$

0.5

 

 

 

$

78.2

 

Commercial Operations Operating Income

$

6.8

 

 

$

 

 

$

 

 

 

$

6.8

 

Unallocated Corporate Operating Income

$

(4.7

)

 

$

1.2

 

 

$

 

 

 

$

(3.5

)

EXHIBIT 1 (continued)

RECONCILIATION OF CONSOLIDATED ADJUSTED EBITDA(1)(2)(3)

(In millions)

Three Months Ended September 30, 2023

 

 

GAAP

 

Restructuring & Transformation Costs

 

Acquisition-related Costs

 

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

Net Income

$

60.4

 

 

$

1.0

 

$

0.2

 

 

$

61.5

 

Provision for Income Taxes

 

17.8

 

 

 

0.1

 

 

0.1

 

 

 

18.0

 

Other – net

 

(4.3

)

 

 

 

 

 

 

 

(4.3

)

Interest Expense

 

12.2

 

 

 

 

 

 

 

 

12.2

 

Interest Income

 

(0.6

)

 

 

 

 

 

 

 

(0.6

)

Depreciation & Amortization

 

19.8

 

 

 

 

 

 

 

 

19.8

 

Adjusted EBITDA

$

105.2

 

 

$

1.1

 

$

0.3

 

 

$

106.5

 

Three Months Ended September 30, 2022

 

 

GAAP

 

Restructuring Costs

 

Acquisition-related Costs

 

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

Net Income

$

61.8

 

 

$

1.0

 

$

0.4

 

 

$

63.2

 

Provision for Income Taxes

 

20.2

 

 

 

0.2

 

 

0.1

 

 

 

20.5

 

Other – net

 

(11.5

)

 

 

 

 

 

 

 

(11.5

)

Interest Expense

 

9.6

 

 

 

 

 

 

 

 

9.6

 

Interest Income

 

(0.3

)

 

 

 

 

 

 

 

(0.3

)

Depreciation & Amortization

 

18.6

 

 

 

 

 

 

 

 

18.6

 

Adjusted EBITDA

$

98.5

 

 

$

1.2

 

$

0.5

 

 

$

100.1

 

RECONCILIATION OF REPORTING SEGMENT ADJUSTED EBITDA(1)(2)(3)

(In millions)

Three Months Ended September 30, 2023

 

 

Operating Income (GAAP)

 

Non-GAAP Adjustments(4)

 

Depreciation & Amortization

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

Government Operations

$

85.6

 

$

 

$

13.4

 

 

$

99.0

Commercial Operations

$

9.1

 

$

0.3

 

$

4.6

 

 

$

13.9

Three Months Ended September 30, 2022

 

 

Operating Income (GAAP)

 

Non-GAAP Adjustments(4)

 

Depreciation & Amortization

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

Government Operations

$

77.7

 

$

0.5

 

$

12.1

 

 

$

90.4

Commercial Operations

$

6.8

 

$

 

$

4.6

 

 

$

11.5

EXHIBIT 1 (continued)

RECONCILIATION OF CONSOLIDATED FREE CASH FLOW(1)(2)(3)

(In millions)

Three Months Ended September 30, 2023

 

 

 

Net Cash Provided By Operating Activities

$

74.3

 

Purchases of Property, Plant and Equipment

 

(30.9

)

Free Cash Flow

$

43.4

 

Three Months Ended September 30, 2022

 

 

 

Net Cash Provided By Operating Activities

$

65.0

 

Purchases of Property, Plant and Equipment

 

(39.6

)

Free Cash Flow

$

25.4

 

(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)

For Non-GAAP adjustment details, see reconciliation of non-GAAP operating income and earnings per share.

BWX TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

(Unaudited)

(In thousands, except share and per share amounts)

Revenues

 

$

589,989

 

 

$

523,711

 

 

$

1,770,794

 

 

$

1,608,657

 

Costs and Expenses:

 

 

 

 

 

 

 

 

Cost of operations

 

 

436,296

 

 

 

399,281

 

 

 

1,338,750

 

 

 

1,217,108

 

Research and development costs

 

 

1,156

 

 

 

1,426

 

 

 

5,955

 

 

 

6,990

 

Losses (gains) on asset disposals and impairments, net

 

 

 

 

 

(251

)

 

 

(15

)

 

 

(222

)

Selling, general and administrative expenses

 

 

79,828

 

 

 

58,160

 

 

 

205,100

 

 

 

172,974

 

Total Costs and Expenses

 

 

517,280

 

 

 

458,616

 

 

 

1,549,790

 

 

 

1,396,850

 

Equity in Income of Investees

 

 

12,649

 

 

 

14,783

 

 

 

38,862

 

 

 

34,881

 

Operating Income

 

 

85,358

 

 

 

79,878

 

 

 

259,866

 

 

 

246,688

 

Other Income (Expense):

 

 

 

 

 

 

 

 

Interest income

 

 

643

 

 

 

273

 

 

 

1,623

 

 

 

463

 

Interest expense

 

 

(12,175

)

 

 

(9,625

)

 

 

(35,200

)

 

 

(24,983

)

Other – net

 

 

4,340

 

 

 

11,496

 

 

 

9,490

 

 

 

35,401

 

Total Other Income (Expense)

 

 

(7,192

)

 

 

2,144

 

 

 

(24,087

)

 

 

10,881

 

Income before Provision for Income Taxes

 

 

78,166

 

 

 

82,022

 

 

 

235,779

 

 

 

257,569

 

Provision for Income Taxes

 

 

17,814

 

 

 

20,185

 

 

 

55,769

 

 

 

61,977

 

Net Income

 

$

60,352

 

 

$

61,837

 

 

$

180,010

 

 

$

195,592

 

Net Loss (Income) Attributable to Noncontrolling Interest

 

 

(79

)

 

 

(234

)

 

 

(48

)

 

 

(366

)

Net Income Attributable to BWX Technologies, Inc.

 

$

60,273

 

 

$

61,603

 

 

$

179,962

 

 

$

195,226

 

Earnings per Common Share:

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

Net Income Attributable to BWX Technologies, Inc.

 

$

0.66

 

 

$

0.67

 

 

$

1.96

 

 

$

2.13

 

Diluted:

 

 

 

 

 

 

 

 

Net Income Attributable to BWX Technologies, Inc.

 

$

0.66

 

 

$

0.67

 

 

$

1.96

 

 

$

2.13

 

Shares used in the computation of earnings per share:

 

 

 

 

 

 

 

 

Basic

 

 

91,659,117

 

 

 

91,407,599

 

 

 

91,596,650

 

 

 

91,455,350

 

Diluted

 

 

91,895,480

 

 

 

91,655,536

 

 

 

91,833,450

 

 

 

91,665,383

 

BWX TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

 

2022

 

 

 

(Unaudited) (In thousands)

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

Net Income

 

$

180,010

 

 

$

195,592

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

 

58,205

 

 

 

54,808

 

Income of investees, net of dividends

 

 

(4,854

)

 

 

(10,733

)

Recognition of losses for pension and postretirement plans

 

 

2,490

 

 

 

2,441

 

Stock-based compensation expense

 

 

12,305

 

 

 

12,047

 

Other, net

 

 

21

 

 

 

1,966

 

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

 

 

 

 

Accounts receivable

 

 

(31,520

)

 

 

10,518

 

Accounts payable

 

 

24,874

 

 

 

(17,996

)

Retainages

 

 

(29,257

)

 

 

(24,684

)

Contracts in progress and advance billings on contracts

 

 

(38,217

)

 

 

(42,824

)

Income taxes

 

 

(5,331

)

 

 

(4,019

)

Accrued and other current liabilities

 

 

(10,231

)

 

 

(8,487

)

Pension liabilities, accrued postretirement benefit obligations and employee benefits

 

 

(10,874

)

 

 

(34,994

)

Other, net

 

 

(5,684

)

 

 

3,400

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

 

141,937

 

 

 

137,035

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

Purchases of property, plant and equipment

 

 

(100,498

)

 

 

(134,591

)

Acquisition of business, net of cash acquired

 

 

 

 

 

(47,328

)

Purchases of securities

 

 

(2,343

)

 

 

(2,700

)

Sales and maturities of securities

 

 

5,996

 

 

 

2,667

 

Investments, net of return of capital, in equity method investees

 

 

 

 

 

(11,450

)

Other, net

 

 

(8,142

)

 

 

324

 

NET CASH USED IN INVESTING ACTIVITIES

 

 

(104,987

)

 

 

(193,078

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

Borrowings of long-term debt

 

 

332,000

 

 

 

373,700

 

Repayments of long-term debt

 

 

(281,688

)

 

 

(223,700

)

Repurchases of common stock

 

 

 

 

 

(20,000

)

Dividends paid to common shareholders

 

 

(63,870

)

 

 

(60,894

)

Cash paid for shares withheld to satisfy employee taxes

 

 

(7,505

)

 

 

(6,588

)

Settlements of forward contracts, net

 

 

(2,030

)

 

 

13,917

 

Other, net

 

 

902

 

 

 

(147

)

NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES

 

 

(22,191

)

 

 

76,288

 

EFFECTS OF EXCHANGE RATE CHANGES ON CASH

 

 

414

 

 

 

(3,093

)

TOTAL INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS

 

 

15,173

 

 

 

17,152

 

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

 

 

40,990

 

 

 

39,775

 

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

56,163

 

 

$

56,927

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

 

 

 

 

Cash paid during the period for:

 

 

 

 

Interest

 

$

44,745

 

 

$

26,809

 

Income taxes (net of refunds)

 

$

59,947

 

 

$

67,555

 

SCHEDULE OF NON-CASH INVESTING ACTIVITY:

 

 

 

 

Accrued capital expenditures included in accounts payable

 

$

9,239

 

 

$

7,427

 

BWX TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

ASSETS

 

 

 

September 30,

2023

 

December 31,

2022

 

 

(Unaudited)

(In thousands)

Current Assets:

 

 

 

 

Cash and cash equivalents

 

$

50,201

 

$

35,244

Restricted cash and cash equivalents

 

 

3,022

 

 

2,928

Investments

 

 

 

 

3,804

Accounts receivable – trade, net

 

 

100,570

 

 

60,782

Accounts receivable – other

 

 

21,447

 

 

26,894

Retainages

 

 

77,823

 

 

48,566

Contracts in progress

 

 

558,979

 

 

538,365

Other current assets

 

 

65,839

 

 

55,036

Total Current Assets

 

 

877,881

 

 

771,619

Property, Plant and Equipment, Net

 

 

1,186,065

 

 

1,134,897

Investments

 

 

8,806

 

 

8,097

Goodwill

 

 

293,603

 

 

293,165

Deferred Income Taxes

 

 

18,216

 

 

20,585

Investments in Unconsolidated Affiliates

 

 

105,050

 

 

100,198

Intangible Assets

 

 

184,990

 

 

193,612

Other Assets

 

 

102,228

 

 

96,766

TOTAL

 

$

2,776,839

 

$

2,618,939

BWX TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

September 30,

2023

 

December 31,

2022

 

 

(Unaudited)

(In thousands, except share

and per share amounts)

Current Liabilities:

 

 

 

 

Current portion of long-term debt

 

$

6,250

 

 

$

6,250

 

Accounts payable

 

 

151,433

 

 

 

127,112

 

Accrued employee benefits

 

 

58,421

 

 

 

61,079

 

Accrued liabilities – other

 

 

63,075

 

 

 

84,693

 

Advance billings on contracts

 

 

71,990

 

 

 

88,726

 

Total Current Liabilities

 

 

351,169

 

 

 

367,860

 

Long-Term Debt

 

 

1,334,473

 

 

 

1,282,624

 

Accumulated Postretirement Benefit Obligation

 

 

17,437

 

 

 

18,157

 

Environmental Liabilities

 

 

96,257

 

 

 

90,989

 

Pension Liability

 

 

51,159

 

 

 

57,832

 

Other Liabilities

 

 

54,433

 

 

 

53,122

 

Commitments and Contingencies

 

 

 

 

Stockholders' Equity:

 

 

 

 

Common stock, par value $0.01 per share, authorized 325,000,000 shares; issued 128,048,653 and 127,671,756 shares at September 30, 2023 and December 31, 2022, respectively

 

 

1,280

 

 

 

1,277

 

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

 

 

 

 

 

 

Capital in excess of par value

 

 

202,674

 

 

 

189,263

 

Retained earnings

 

 

2,049,254

 

 

 

1,932,970

 

Treasury stock at cost, 36,537,831 and 36,417,480 shares at September 30, 2023 and December 31, 2022, respectively

 

 

(1,360,777

)

 

 

(1,353,270

)

Accumulated other comprehensive income (loss)

 

 

(20,395

)

 

 

(21,930

)

Stockholders' Equity – BWX Technologies, Inc.

 

 

872,036

 

 

 

748,310

 

Noncontrolling interest

 

 

(125

)

 

 

45

 

Total Stockholders' Equity

 

 

871,911

 

 

 

748,355

 

TOTAL

 

$

2,776,839

 

 

$

2,618,939

 

BWX TECHNOLOGIES, INC.

BUSINESS SEGMENT INFORMATION

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

(Unaudited)

(In thousands)

REVENUES:

 

 

 

 

 

 

 

 

Government Operations

 

$

477,855

 

 

$

422,521

 

 

$

1,429,708

 

 

$

1,290,835

 

Commercial Operations

 

 

112,359

 

 

 

101,794

 

 

 

342,203

 

 

 

320,266

 

Eliminations

 

 

(225

)

 

 

(604

)

 

 

(1,117

)

 

 

(2,444

)

TOTAL

 

$

589,989

 

 

$

523,711

 

 

$

1,770,794

 

 

$

1,608,657

 

 

 

 

 

 

 

 

 

 

SEGMENT INCOME:

 

 

 

 

 

 

 

 

Government Operations

 

$

85,632

 

 

$

77,735

 

 

$

258,400

 

 

$

233,749

 

Commercial Operations

 

 

9,083

 

 

 

6,847

 

 

 

21,613

 

 

 

23,673

 

SUBTOTAL

 

$

94,715

 

 

$

84,582

 

 

$

280,013

 

 

$

257,422

 

Unallocated Corporate

 

 

(9,357

)

 

 

(4,704

)

 

 

(20,147

)

 

 

(10,734

)

TOTAL

 

$

85,358

 

 

$

79,878

 

 

$

259,866

 

 

$

246,688

 

 

 

 

 

 

 

 

 

 

DEPRECIATION AND AMORTIZATION:

 

 

 

 

 

 

 

 

Government Operations

 

$

13,417

 

 

$

12,137

 

 

$

39,353

 

 

$

35,258

 

Commercial Operations

 

 

4,557

 

 

 

4,603

 

 

 

13,278

 

 

 

14,465

 

Corporate

 

 

1,827

 

 

 

1,852

 

 

 

5,574

 

 

 

5,085

 

TOTAL

 

$

19,801

 

 

$

18,592

 

 

$

58,205

 

 

$

54,808

 

 

 

 

 

 

 

 

 

 

CAPITAL EXPENDITURES:

 

 

 

 

 

 

 

 

Government Operations

 

$

19,624

 

 

$

19,126

 

 

$

58,115

 

 

$

66,195

 

Commercial Operations

 

 

10,861

 

 

 

17,815

 

 

 

40,589

 

 

 

63,559

 

Corporate

 

 

431

 

 

 

2,704

 

 

 

1,794

 

 

 

4,837

 

TOTAL

 

$

30,916

 

 

$

39,645

 

 

$

100,498

 

 

$

134,591

 

 

 

 

 

 

 

 

 

 

BACKLOG:

 

 

 

 

 

 

 

 

Government Operations

 

$

3,258,877

 

 

$

3,686,469

 

 

$

3,258,877

 

 

$

3,686,469

 

Commercial Operations

 

 

721,967

 

 

 

632,416

 

 

 

721,967

 

 

 

632,416

 

TOTAL

 

$

3,980,844

 

 

$

4,318,885

 

 

$

3,980,844

 

 

$

4,318,885

 

 

 

 

 

 

 

 

 

 

BOOKINGS:

 

 

 

 

 

 

 

 

Government Operations

 

$

330,801

 

 

$

119,086

 

 

$

1,172,206

 

 

$

398,232

 

Commercial Operations

 

 

125,061

 

 

 

2,790

 

 

 

435,122

 

 

 

308,750

 

TOTAL

 

$

455,862

 

 

$

121,876

 

 

$

1,607,328

 

 

$

706,982

 

 

.@BWXT to announce quarterly earnings.

Contacts

Investor Contact:

Chase Jacobson

Vice President, Investor Relations

980-365-4300 Investors@bwxt.com



Media Contact:

Jud Simmons

Senior Director, Media and Public Relations

434-522-6462 hjsimmons@bwxt.com

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