BWXT BWX Technologies Inc

• 2Q24 revenues of $681.5 million

• 2Q24 net income of $73.0 million, adjusted EBITDA(1) of $126.2 million

• 2Q24 diluted GAAP EPS of $0.79, non-GAAP(1) EPS of $0.82

• BWXT-led JV awarded management and operations contract for the NNSA’s Pantex Plant

• 2024 non-GAAP EPS(1) guidance revised to $3.10-$3.20

BWX Technologies, Inc. (NYSE: BWXT) ("BWXT", "we", "us" or the "Company") reported second quarter 2024 results. A reconciliation of non-GAAP results are detailed in Exhibit 1.

“Second quarter results were ahead of our expectations driven by strong organic growth and crisp execution across our business lines,” said Rex. D Geveden. “Our solid year-to-date performance provides us the confidence to raise the lower end of our 2024 non-GAAP EPS guidance.”

“In recent months there have been multiple important developments supporting our nuclear markets, including passage of the ADVANCE Act, federal and state legislation supporting small modular reactor development and the Army and Defense Innovation Unit’s acquisition plans for microreactors at remote military bases, all of which have been complemented by broad-based support from private industry,” continued Geveden. “These developments demonstrate the increasing appetite for nuclear solutions across the global security, clean energy, and medical markets, ultimately driving new and exciting opportunities for BWXT.”

“Overall, we had a solid first half both financially and strategically and we continue to see favorable demand momentum in our end-markets,” continued Geveden. “Based on our year-to-date performance and anticipated progress on key contracts during the second half of the year, we are narrowing our 2024 non-GAAP EPS guidance to $3.10- $3.20.”

(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.

Financial Results Summary

 

 

 

Three Months Ended June 30,

 

 

 

 

 

 

2024

 

2023

 

$ Change

 

% Change

(Unaudited)

 

 

(In millions, except per share amounts)

Revenues

 

 

 

 

 

 

 

 

Government Operations

 

$

540.8

 

 

$

492.0

 

 

$

48.9

 

 

10

%

Commercial Operations

 

$

141.5

 

 

$

120.9

 

 

$

20.6

 

 

17

%

Consolidated

 

$

681.5

 

 

$

612.4

 

 

$

69.0

 

 

11

%

Operating Income

 

 

 

 

 

 

 

 

Government Operations

 

$

92.5

 

 

$

82.2

 

 

$

10.3

 

 

13

%

Commercial Operations

 

$

16.6

 

 

$

11.0

 

 

$

5.6

 

 

51

%

Unallocated Corporate (Expense)

 

$

(10.3

)

 

$

(6.6

)

 

$

(3.8

)

 

NM

 

Consolidated

 

$

98.8

 

 

$

86.7

 

 

$

12.1

 

 

14

%

Consolidated non-GAAP(1)

 

$

104.6

 

 

$

87.6

 

 

$

17.0

 

 

19

%

EPS (Diluted)

 

 

 

 

 

 

 

 

GAAP

 

$

0.79

 

 

$

0.64

 

 

$

0.15

 

 

23

%

Non-GAAP(1)

 

$

0.82

 

 

$

0.65

 

 

$

0.17

 

 

26

%

Net Income

 

 

 

 

 

 

 

 

GAAP

 

$

73.0

 

 

$

58.7

 

 

$

14.4

 

 

25

%

Non-GAAP(1)

 

$

75.4

 

 

$

59.5

 

 

$

15.9

 

 

27

%

Adjusted EBITDA(1)

 

 

 

 

 

 

 

 

Government Operations

 

$

108.2

 

 

$

95.5

 

 

$

12.7

 

 

13

%

Commercial Operations

 

$

22.5

 

 

$

15.8

 

 

$

6.7

 

 

42

%

Corporate

 

$

(4.5

)

 

$

(4.3

)

 

$

(0.2

)

 

NM

 

Consolidated

 

$

126.2

 

 

$

107.0

 

 

$

19.2

 

 

18

%

Cash Flows

 

 

 

 

 

 

 

 

Operating Cash Flow(2)

 

$

65.9

 

 

$

80.6

 

 

$

(14.7

)

 

(18

)%

Capital Expenditures(2)

 

$

30.4

 

 

$

39.8

 

 

$

(9.4

)

 

(24

)%

Free Cash Flow(1)

 

$

35.5

 

 

$

40.8

 

 

$

(5.3

)

 

(13

)%

Dividends Paid(2)

 

$

22.0

 

 

$

21.1

 

 

$

0.9

 

 

4

%

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

Second quarter revenue increased in both operating segments. The Government Operations increase was driven by higher naval nuclear component production, microreactors and special materials processing. The Commercial Operations increase was driven by higher revenue associated with commercial nuclear field services, components, and fuel and fuel handling systems as well as higher medical sales.

Operating Income and Adjusted EBITDA(1)

Second quarter operating income increased in both segments. The Government Operations increase was mainly driven by higher revenue, which was partially offset by investments in new initiatives. The Commercial Operations increase was primarily driven by higher revenue and a shift in product and services mix.

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

EPS

Second quarter GAAP EPS increased due to higher operating income, lower interest expense and a lower effective tax rate compared to second quarter 2023. The lower tax rate was mainly driven by Canadian legislation that provides for a lower statutory tax rate for clean energy, including nuclear, manufacturers. Non-GAAP EPS(1) increased driven by the items noted above.

Cash Flows

Second quarter operating cash flow decreased as higher net income was more than offset by greater working capital needs due to contract timing. Capital expenditures were lower due to timing of select growth investments.

Dividend

BWXT paid $22.0 million, or $0.24 per common share, to shareholders in the second quarter of 2024. On August 1, 2024, the BWXT Board of Directors declared a quarterly cash dividend of $0.24 per common share payable on September 5, 2024, to shareholders of record on August 16, 2024.

2024 Guidance

BWXT reaffirmed its 2024 guidance for Revenue, Adjusted EBITDA(1), and Free Cash Flow(1) and narrowed its guidance range for Non-GAAP EPS(1).

(In millions, except per share amounts)

 

Year Ended

 

Year Ending

 

Year Ending

 

 

December 31, 2023

 

December 31, 2024

 

December 31, 2024

 

 

Results

 

Current Guidance

 

Prior Guidance

Revenue

 

$2,496

 

>$2,600

 

>$2,600

Adjusted EBITDA(1)

 

$472

 

~$500

 

~$500

Non-GAAP(1) Earnings Per Share

 

$3.02

 

$3.10 - $3.20

 

$3.05 - $3.20

Free Cash Flow(1)

 

$212

 

$225 - $250

 

$225 - $250

Additional information can be found in the second quarter 2024 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 Second Quarter 2024 Results

Date:

 

Monday, August 5, 2024, at 5:00 p.m. EDT

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/2Q2024-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, non-GAAP EPS, 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.

Non-GAAP Earnings Per Share (EPS) is calculated using GAAP EPS less the non-operational tax effected per share impact of pension & OPEB mark-to-market gains or losses and other one-time items, such as restructuring, transformation, and acquisition-related costs.

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 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.

One-Time Tax Benefit: During the second quarter of 2024, a change in Canadian tax legislation went into effect that provides qualifying nuclear manufacturers with a temporary reduction of the Canadian federal tax rate. This change in legislation resulted in a one-time revaluation of our Canadian net deferred tax liabilities.

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 2024 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, 2023 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. A U.S.-based company, BWXT is a Fortune 1000 and 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 approximately 7,800 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.

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 June 30, 2024

 

 

GAAP

 

Restructuring & Transformation Costs

 

Acquisition- related Costs

 

One-Time Tax Benefit

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

$

98.8

 

 

$

5.8

 

 

$

0.1

 

 

$

—

 

 

$

104.6

 

Other Income (Expense)

 

 

(7.2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7.2

)

Income Before Provision for Income Taxes

 

 

91.6

 

 

 

5.8

 

 

 

0.1

 

 

 

—

 

 

 

97.4

 

Provision for Income Taxes

 

 

(18.6

)

 

 

(1.3

)

 

 

(0.0

)

 

 

(2.2

)

 

 

(22.1

)

Net Income

 

 

73.0

 

 

 

4.4

 

 

 

0.0

 

 

 

(2.2

)

 

 

75.4

 

Net Income Attributable to Noncontrolling Interest

 

 

(0.1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(0.1

)

Net Income Attributable to BWXT

 

$

73.0

 

 

$

4.4

 

 

$

0.0

 

 

$

(2.2

)

 

$

75.3

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Shares Outstanding

 

 

91.8

 

 

 

 

 

 

 

 

 

91.8

 

Diluted Earnings per Common Share

 

$

0.79

 

 

$

0.05

 

 

$

0.00

 

 

$

(0.02

)

 

$

0.82

 

Effective Tax Rate

 

 

20.3

%

 

 

 

 

 

 

 

 

22.7

%

 

 

 

 

 

 

 

 

 

 

 

Government Operations Operating Income

 

$

92.5

 

 

$

0.3

 

 

$

—

 

 

$

—

 

 

$

92.8

 

Commercial Operations Operating Income

 

$

16.6

 

 

$

1.5

 

 

$

—

 

 

$

—

 

 

$

18.1

 

Unallocated Corporate Operating Income

 

$

(10.3

)

 

$

4.0

 

 

$

0.1

 

 

$

—

 

 

$

(6.3

)

Three Months Ended June 30, 2023

 

 

GAAP

 

Restructuring Costs

 

Acquisition- related Costs

 

Non-GAAP

 

 

 

 

 

 

 

 

 

Operating Income

 

$

86.7

 

 

$

0.9

 

 

$

0.1

 

 

$

87.6

 

Other Income (Expense)

 

 

(8.7

)

 

 

—

 

 

 

—

 

 

 

(8.7

)

Income Before Provision for Income Taxes

 

 

77.9

 

 

 

0.9

 

 

 

0.1

 

 

 

78.9

 

Provision for Income Taxes

 

 

(19.3

)

 

 

(0.1

)

 

 

(0.0

)

 

 

(19.4

)

Net Income

 

 

58.7

 

 

 

0.8

 

 

 

0.1

 

 

 

59.5

 

Net Income Attributable to Noncontrolling Interest

 

 

(0.1

)

 

 

—

 

 

 

—

 

 

 

(0.1

)

Net Income Attributable to BWXT

 

$

58.6

 

 

$

0.8

 

 

$

0.1

 

 

$

59.4

 

 

 

 

 

 

 

 

 

 

Diluted Shares Outstanding

 

 

91.8

 

 

 

 

 

 

 

91.8

 

Diluted Earnings per Common Share

 

$

0.64

 

 

$

0.01

 

 

$

0.00

 

 

$

0.65

 

Effective Tax Rate

 

 

24.7

%

 

 

 

 

 

 

24.6

%

 

 

 

 

 

 

 

 

 

Government Operations Operating Income

 

$

82.2

 

 

$

0.2

 

 

$

—

 

 

$

82.4

 

Commercial Operations Operating Income

 

$

11.0

 

 

$

0.4

 

 

$

—

 

 

$

11.5

 

Unallocated Corporate Operating Income

 

$

(6.6

)

 

$

0.3

 

 

$

0.1

 

 

$

(6.2

)

EXHIBIT 1 (continued)

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

(In millions)

 

Three Months Ended June 30, 2024

 

 

GAAP

 

Restructuring & Transformation Costs

 

Acquisition- related Costs

 

One-Time Tax Benefit

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

73.0

 

 

$

4.4

 

$

0.0

 

$

(2.2

)

 

$

75.4

 

Provision for Income Taxes

 

 

18.6

 

 

 

1.3

 

 

0.0

 

 

2.2

 

 

 

22.1

 

Other – net

 

 

(3.0

)

 

 

—

 

 

—

 

 

—

 

 

 

(3.0

)

Interest Expense

 

 

10.7

 

 

 

—

 

 

—

 

 

—

 

 

 

10.7

 

Interest Income

 

 

(0.5

)

 

 

—

 

 

—

 

 

—

 

 

 

(0.5

)

Depreciation & Amortization

 

 

21.6

 

 

 

—

 

 

—

 

 

—

 

 

 

21.6

 

Adjusted EBITDA

 

$

120.4

 

 

$

5.8

 

$

0.1

 

$

—

 

 

$

126.2

 

Three Months Ended June 30, 2023

 

 

GAAP

 

Restructuring Costs

 

Acquisition- related Costs

 

Non-GAAP

 

 

 

 

 

 

 

 

 

Net Income

 

$

58.7

 

 

$

0.8

 

$

0.1

 

$

59.5

 

Provision for Income Taxes

 

 

19.3

 

 

 

0.1

 

 

0.0

 

 

19.4

 

Other – net

 

 

(3.0

)

 

 

—

 

 

—

 

 

(3.0

)

Interest Expense

 

 

12.2

 

 

 

—

 

 

—

 

 

12.2

 

Interest Income

 

 

(0.5

)

 

 

—

 

 

—

 

 

(0.5

)

Depreciation & Amortization

 

 

19.4

 

 

 

—

 

 

—

 

 

19.4

 

Adjusted EBITDA

 

$

106.1

 

 

$

0.9

 

$

0.1

 

$

107.0

 

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

(In millions)

Three Months Ended June 30, 2024

 

 

Operating Income (GAAP)

 

Non-GAAP Adjustments(4)

 

Depreciation & Amortization

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

Government Operations

 

$

92.5

 

$

0.3

 

$

15.4

 

 

$

108.2

Commercial Operations

 

$

16.6

 

$

1.5

 

$

4.4

 

 

$

22.5

Three Months Ended June 30, 2023

 

 

Operating Income (GAAP)

 

Non-GAAP Adjustments(4)

 

Depreciation & Amortization

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

Government Operations

 

$

82.2

 

$

0.2

 

$

13.1

 

 

$

95.5

Commercial Operations

 

$

11.0

 

$

0.4

 

$

4.4

 

 

$

15.8

EXHIBIT 1 (continued)

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

(In millions)

Three Months Ended June 30, 2024

 

 

 

Net Cash Provided By Operating Activities

 

$

65.9

 

Purchases of Property, Plant and Equipment

 

 

(30.4

)

Free Cash Flow

 

$

35.5

 

Three Months Ended June 30, 2023

 

 

 

Net Cash Provided By Operating Activities

 

$

80.6

 

Purchases of Property, Plant and Equipment

 

 

(39.8

)

Free Cash Flow

 

$

40.8

 

 

(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)

 

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 June 30,

 

Six Months Ended June 30,

 

 

2024

 

2023

 

2024

 

2023

(Unaudited)

 

 

(In thousands, except share and per share amounts)

Revenues

 

$

681,465

 

 

$

612,445

 

 

$

1,285,431

 

 

$

1,180,805

 

Costs and Expenses:

 

 

 

 

 

 

 

 

Cost of operations

 

 

513,196

 

 

 

471,324

 

 

 

968,553

 

 

 

902,454

 

Research and development costs

 

 

1,271

 

 

 

2,595

 

 

 

2,761

 

 

 

4,799

 

Gains on asset disposals and impairments, net

 

 

(4

)

 

 

(9

)

 

 

(4

)

 

 

(15

)

Selling, general and administrative expenses

 

 

79,780

 

 

 

64,437

 

 

 

147,141

 

 

 

125,272

 

Total Costs and Expenses

 

 

594,243

 

 

 

538,347

 

 

 

1,118,451

 

 

 

1,032,510

 

Equity in Income of Investees

 

 

11,584

 

 

 

12,568

 

 

 

24,787

 

 

 

26,213

 

Operating Income

 

 

98,806

 

 

 

86,666

 

 

 

191,767

 

 

 

174,508

 

Other Income (Expense):

 

 

 

 

 

 

 

 

Interest income

 

 

540

 

 

 

517

 

 

 

1,386

 

 

 

980

 

Interest expense

 

 

(10,688

)

 

 

(12,206

)

 

 

(20,283

)

 

 

(23,025

)

Other – net

 

 

2,971

 

 

 

2,962

 

 

 

7,136

 

 

 

5,150

 

Total Other Income (Expense)

 

 

(7,177

)

 

 

(8,727

)

 

 

(11,761

)

 

 

(16,895

)

Income before Provision for Income Taxes

 

 

91,629

 

 

 

77,939

 

 

 

180,006

 

 

 

157,613

 

Provision for Income Taxes

 

 

18,584

 

 

 

19,274

 

 

 

38,427

 

 

 

37,955

 

Net Income

 

$

73,045

 

 

$

58,665

 

 

$

141,579

 

 

$

119,658

 

Net Loss (Income) Attributable to Noncontrolling Interest

 

 

(73

)

 

 

(68

)

 

 

(139

)

 

 

31

 

Net Income Attributable to BWX Technologies, Inc.

 

$

72,972

 

 

$

58,597

 

 

$

141,440

 

 

$

119,689

 

Earnings per Common Share:

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

Net Income Attributable to BWX Technologies, Inc.

 

$

0.80

 

 

$

0.64

 

 

$

1.54

 

 

$

1.31

 

Diluted:

 

 

 

 

 

 

 

 

Net Income Attributable to BWX Technologies, Inc.

 

$

0.79

 

 

$

0.64

 

 

$

1.54

 

 

$

1.30

 

Shares used in the computation of earnings per share:

 

 

 

 

 

 

 

 

Basic

 

 

91,564,263

 

 

 

91,626,846

 

 

 

91,559,824

 

 

 

91,565,417

 

Diluted

 

 

91,801,539

 

 

 

91,805,179

 

 

 

91,831,232

 

 

 

91,802,435

 

BWX TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

Six Months Ended June 30,

 

 

2024

 

2023

 

 

(Unaudited) (In thousands)

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

Net Income

 

$

141,579

 

 

$

119,658

 

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

 

 

 

 

Depreciation and amortization

 

 

42,160

 

 

 

38,404

 

Income of investees, net of dividends

 

 

(3,301

)

 

 

(4,113

)

Recognition of losses for pension and postretirement plans

 

 

1,663

 

 

 

1,660

 

Stock-based compensation expense

 

 

10,279

 

 

 

8,669

 

Other, net

 

 

(32

)

 

 

131

 

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

 

 

 

 

Accounts receivable

 

 

(20,319

)

 

 

(4,936

)

Accounts payable

 

 

47,018

 

 

 

7,071

 

Retainages

 

 

587

 

 

 

(5,808

)

Contracts in progress and advance billings on contracts

 

 

(78,722

)

 

 

(47,278

)

Income taxes

 

 

(6,741

)

 

 

(10,830

)

Accrued and other current liabilities

 

 

(328

)

 

 

(13,158

)

Pension liabilities, accrued postretirement benefit obligations and employee benefits

 

 

(23,625

)

 

 

(17,865

)

Other, net

 

 

(11,298

)

 

 

(4,016

)

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

 

98,920

 

 

 

67,589

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

Purchases of property, plant and equipment

 

 

(60,827

)

 

 

(69,582

)

Purchases of securities

 

 

—

 

 

 

(2,343

)

Sales and maturities of securities

 

 

—

 

 

 

5,996

 

Other, net

 

 

203

 

 

 

15

 

NET CASH USED IN INVESTING ACTIVITIES

 

 

(60,624

)

 

 

(65,914

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

Borrowings of long-term debt

 

 

241,400

 

 

 

210,900

 

Repayments of long-term debt

 

 

(239,525

)

 

 

(164,025

)

Repurchases of common stock

 

 

(20,000

)

 

 

—

 

Dividends paid to common shareholders

 

 

(44,373

)

 

 

(42,735

)

Cash paid for shares withheld to satisfy employee taxes

 

 

(6,941

)

 

 

(6,948

)

Settlements of forward contracts, net

 

 

4,543

 

 

 

(520

)

Other, net

 

 

(108

)

 

 

46

 

NET CASH USED IN FINANCING ACTIVITIES

 

 

(65,004

)

 

 

(3,282

)

EFFECTS OF EXCHANGE RATE CHANGES ON CASH

 

 

(308

)

 

 

196

 

TOTAL DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS

 

 

(27,016

)

 

 

(1,411

)

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

 

 

81,615

 

 

 

40,990

 

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

 

$

54,599

 

 

$

39,579

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

 

 

 

 

Cash paid during the period for:

 

 

 

 

Interest

 

$

32,181

 

 

$

34,602

 

Income taxes (net of refunds)

 

$

45,382

 

 

$

48,315

 

SCHEDULE OF NON-CASH INVESTING ACTIVITY:

 

 

 

 

Accrued capital expenditures included in accounts payable

 

$

9,273

 

 

$

10,694

 

BWX TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

ASSETS

 

 

 

June 30, 2024

 

December 31, 2023

(Unaudited)

 

 

(In thousands)

Current Assets:

 

 

 

 

Cash and cash equivalents

 

$

48,341

 

$

75,766

Restricted cash and cash equivalents

 

 

2,927

 

 

2,858

Accounts receivable – trade, net

 

 

89,374

 

 

70,180

Accounts receivable – other

 

 

17,448

 

 

16,339

Retainages

 

 

54,594

 

 

55,181

Contracts in progress

 

 

622,062

 

 

533,155

Other current assets

 

 

75,097

 

 

64,322

Total Current Assets

 

 

909,843

 

 

817,801

Property, Plant and Equipment, Net

 

 

1,241,538

 

 

1,228,520

Investments

 

 

10,237

 

 

9,496

Goodwill

 

 

293,156

 

 

297,020

Deferred Income Taxes

 

 

13,115

 

 

16,332

Investments in Unconsolidated Affiliates

 

 

91,909

 

 

88,608

Intangible Assets

 

 

176,147

 

 

185,510

Other Assets

 

 

104,688

 

 

103,778

TOTAL

 

$

2,840,633

 

$

2,747,065

BWX TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

June 30, 2024

 

December 31, 2023

(Unaudited)

(In thousands, except share

 

 

and per share amounts)

Current Liabilities:

 

 

 

 

Current portion of long-term debt

 

$

9,375

 

 

$

6,250

 

Accounts payable

 

 

164,306

 

 

 

126,651

 

Accrued employee benefits

 

 

47,056

 

 

 

64,544

 

Accrued liabilities – other

 

 

62,644

 

 

 

70,210

 

Advance billings on contracts

 

 

125,199

 

 

 

107,391

 

Total Current Liabilities

 

 

408,580

 

 

 

375,046

 

Long-Term Debt

 

 

1,203,196

 

 

 

1,203,422

 

Accumulated Postretirement Benefit Obligation

 

 

17,809

 

 

 

18,466

 

Environmental Liabilities

 

 

90,884

 

 

 

90,575

 

Pension Liability

 

 

76,784

 

 

 

82,786

 

Other Liabilities

 

 

45,129

 

 

 

43,469

 

Commitments and Contingencies

 

 

 

 

Stockholders' Equity:

 

 

 

 

Common stock, par value $0.01 per share, authorized 325,000,000 shares; issued 128,282,125 and 128,065,521 shares at June 30, 2024 and December 31, 2023, respectively

 

 

1,283

 

 

 

1,281

 

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

 

 

—

 

 

 

—

 

Capital in excess of par value

 

 

216,973

 

 

 

206,478

 

Retained earnings

 

 

2,191,079

 

 

 

2,093,917

 

Treasury stock at cost, 36,864,491 and 36,537,695 shares at June 30, 2024 and December 31, 2023, respectively

 

 

(1,387,803

)

 

 

(1,360,862

)

Accumulated other comprehensive income (loss)

 

 

(23,044

)

 

 

(7,463

)

Stockholders' Equity – BWX Technologies, Inc.

 

 

998,488

 

 

 

933,351

 

Noncontrolling interest

 

 

(237

)

 

 

(50

)

Total Stockholders' Equity

 

 

998,251

 

 

 

933,301

 

TOTAL

 

$

2,840,633

 

 

$

2,747,065

 

BWX TECHNOLOGIES, INC.

BUSINESS SEGMENT INFORMATION

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

2023

 

2024

 

2023

(Unaudited)

 

 

(In thousands)

REVENUES:

 

 

 

 

 

 

 

 

Government Operations

 

$

540,846

 

 

$

491,967

 

 

$

1,027,967

 

 

$

951,853

 

Commercial Operations

 

 

141,491

 

 

 

120,920

 

 

 

258,529

 

 

 

229,844

 

Eliminations

 

 

(872

)

 

 

(442

)

 

 

(1,065

)

 

 

(892

)

TOTAL

 

$

681,465

 

 

$

612,445

 

 

$

1,285,431

 

 

$

1,180,805

 

 

 

 

 

 

 

 

 

 

SEGMENT INCOME:

 

 

 

 

 

 

 

 

Government Operations

 

$

92,520

 

 

$

82,208

 

 

$

178,206

 

 

$

172,768

 

Commercial Operations

 

 

16,628

 

 

 

11,017

 

 

 

25,219

 

 

 

12,530

 

SUBTOTAL

 

$

109,148

 

 

$

93,225

 

 

$

203,425

 

 

$

185,298

 

Unallocated Corporate

 

 

(10,342

)

 

 

(6,559

)

 

 

(11,658

)

 

 

(10,790

)

TOTAL

 

$

98,806

 

 

$

86,666

 

 

$

191,767

 

 

$

174,508

 

 

 

 

 

 

 

 

 

 

DEPRECIATION AND AMORTIZATION:

 

 

 

 

 

 

 

 

Government Operations

 

$

15,431

 

 

$

13,141

 

 

$

29,664

 

 

$

25,936

 

Commercial Operations

 

 

4,397

 

 

 

4,362

 

 

 

8,841

 

 

 

8,721

 

Corporate

 

 

1,781

 

 

 

1,881

 

 

 

3,655

 

 

 

3,747

 

TOTAL

 

$

21,609

 

 

$

19,384

 

 

$

42,160

 

 

$

38,404

 

 

 

 

 

 

 

 

 

 

CAPITAL EXPENDITURES:

 

 

 

 

 

 

 

 

Government Operations

 

$

14,201

 

 

$

23,223

 

 

$

30,584

 

 

$

38,491

 

Commercial Operations

 

 

15,736

 

 

 

15,777

 

 

 

29,080

 

 

 

29,728

 

Corporate

 

 

468

 

 

 

802

 

 

 

1,163

 

 

 

1,363

 

TOTAL

 

$

30,405

 

 

$

39,802

 

 

$

60,827

 

 

$

69,582

 

 

 

 

 

 

 

 

 

 

BACKLOG:

 

 

 

 

 

 

 

 

Government Operations

 

$

2,865,193

 

 

$

3,405,716

 

 

$

2,865,193

 

 

$

3,405,716

 

Commercial Operations

 

 

669,054

 

 

 

709,254

 

 

 

669,054

 

 

 

709,254

 

TOTAL

 

$

3,534,247

 

 

$

4,114,970

 

 

$

3,534,247

 

 

$

4,114,970

 

 

 

 

 

 

 

 

 

 

BOOKINGS:

 

 

 

 

 

 

 

 

Government Operations

 

$

497,021

 

 

$

788,668

 

 

$

676,434

 

 

$

841,405

 

Commercial Operations

 

 

83,183

 

 

 

164,375

 

 

 

145,597

 

 

 

310,061

 

TOTAL

 

$

580,204

 

 

$

953,043

 

 

$

822,031

 

 

$

1,151,466

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240805301951/en/

Investor Contact: Chase Jacobson Vice President, Investor Relations 980-365-4300 Investors@bwxt.com

Media Contact: Christine Courard Vice President, Communications 202-428-6913 cmcourard@bwxt.com