EX-99.1 2 a4q2015earningsrelease.htm EXHIBIT 99.1 Exhibit

News Release

Babcock & Wilcox Announces Strong Fourth Quarter 2015 Results

- Fourth Quarter Revenue Increases 13.1%, Full Year 2015 Revenue Increases 18.3%
- Fourth Quarter GAAP EPS of $(0.10), Adjusted EPS $0.47
- Full Year 2015 GAAP EPS of $0.30, Adjusted EPS $1.25
- New Share Buyback Program to Target up to $47 million by Third Quarter 2016
- 2016 Guidance for Adjusted EPS of $1.25-$1.45

(CHARLOTTE, N.C. - February 25, 2016) - Babcock & Wilcox Enterprises, Inc. (B&W) (NYSE:BW) announced today fourth quarter 2015 revenues of $502.7 million, an increase of $58.1 million, or 13.1%, from the fourth quarter of 2014. GAAP earnings per share for the fourth quarter of 2015 were a loss of $0.10 compared to a loss of $0.90 in the fourth quarter of 2014. Adjusted earnings per share were $0.47 for the three months ended December 31, 2015 compared to $0.66 in the prior year period. Adjusted earnings per share excludes the impact of non-cash mark-to-market adjustments for pension and other post-retirement benefits, impairments, restructuring and other costs as shown in Exhibit 1.

“B&W ended the year with a strong quarter led by the continued growth in Global Power,” said Mr. E. James Ferland, Chairman and Chief Executive Officer. “Revenue, gross profit, operating income and free cash flow were all improved in the quarter compared to the prior year fourth quarter, providing a strong finish to a solid year.”

Results of Operations

Consolidated revenues for the fourth quarter of 2015 were $502.7 million, an increase of 13.1%, compared to $444.6 million for the fourth quarter of 2014, primarily due to increased volume in Global Power. GAAP consolidated gross profit for the business segments, which includes mark-to-market pension adjustments of $44.3 million in fourth quarter 2015 and $94.2 million in fourth quarter 2014, was $65.0 million in the quarter compared to $4.8 million in the fourth quarter of 2014. Gross profit from our segments, excluding the mark-to-market pension adjustment, was $109.3 million for the fourth quarter 2015, which is a 10.4% increase compared to $99.0 million in the prior year period largely due to the increases from Global Power and Industrial Environmental. Adjusted operating income increased 3.7% in the fourth quarter of 2015 to $39.5 million, compared to adjusted operating income of $38.1 million in the fourth quarter of 2014, primarily from higher volume in Global Power and good project execution in Industrial Environmental, partially offset by increased SG&A expenses related to being a stand-alone company. 

The Global Power segment revenues for the fourth quarter of 2015 increased 55.2%, or $70.7 million, to $198.7 million from $128.0 million in the prior year period, primarily attributable to increased activity in new build steam generation systems. Fourth quarter 2015 gross profit in the Global Power segment increased $8.2 million from the same period last year to $38.4 million, largely due to higher volume.

Revenues in the Global Services segment were $243.7 million in the final three months of 2015, versus $263.6 million in the corresponding period in 2014, a decrease of 7.5%, mainly due to timing on repair and maintenance activities and lower parts sales. Gross profit in Global Services was $53.7 million, a decrease of 4.1% compared to $56.0 million in the prior year period, as the improvement in the gross margin was offset by the impact of lower revenue and business mix.






Industrial Environmental segment revenues for the fourth quarter of 2015 were $60.3 million, compared to $52.9 million in the prior year period, an increase of $7.4 million primarily attributable to project timing. The Industrial Environmental segment continued to deliver strong gross profit with $17.1 million in the fourth quarter of 2015, a 33.8% increase from $12.8 million in the 2014 period, due to reduced amortization expense combined with increased volume and strong project execution.

Revenues for the full year of 2015 were $1.76 billion, an increase of 18.3% from the $1.49 billion recorded in 2014 mainly due to increased volume in Global Power and the full-year contribution of the MEGTEC acquisition. Adjusted operating income for 2015 was $103.8 million, which is an increase of 15.1% over the $90.2 million for full year 2014 as a result of inclusion of a full year of MEGTEC and increased volume in Global Power, partially offset by higher SG&A from a full year of MEGTEC overhead and incremental SG&A from being a stand-alone company. GAAP earnings per diluted share from continuing operations for the full year of 2015 were $0.30, compared to a loss of $0.23 in 2014. Full-year 2015 adjusted earnings per share were $1.25 versus adjusted earnings per share of $1.28 in the prior year. The 2014 tax rate was unusually low. If the full-year 2015 adjusted tax rate was applied to the 2014 results, then the 2015 adjusted EPS would be 12% higher than 2014.

"We are pleased with our 2015 full-year results," continued Ferland. "In addition to successful execution of the spin-off from BWX Technologies, we grew revenue over 18% and all three business units delivered on the bottom line allowing us to achieve an adjusted EPS of $1.25, in the top half of our range. Our strong balance sheet has been bolstered by significant cash generation during the year. This allowed us to pursue a meaningful share buyback program while in parallel increasing our cash on hand, thus enabling us to pursue acquisitions to grow our earnings and diversify the business."

Liquidity

B&W’s cash and cash equivalents position, net of restricted cash, was $365.2 million at the end of 2015 reflecting a $57.6 million increase over the $307.6 million as of June 30, 2015 when B&W was launched as an independent publicly-traded company. This consolidated cash position includes $221.2 million in non-U.S. cash. Net cash flow from operating activities for the full year 2015 was $170.4 million compared to a use of cash of $24.2 million in 2014.

Share Repurchase Program

Our Board of Directors previously authorized the repurchase of up to $100 million of common stock. An initial buyback program combined with share repurchases to off-set dilution will use approximately $53 million of the current authorization no later than the end of the first quarter 2016.

B&W will implement a new share repurchase program that will target spending the remaining $47 million under the Board's authorization by third quarter 2016. B&W may utilize various methods to effect the repurchases, and the timing of repurchases will depend upon several factors, including market and business conditions, and repurchases may be discontinued at any time.






Full Year 2016 Outlook

2016 will be B&W’s first full year as a stand-alone company. Guidance for key financial benchmarks in 2016 includes:
•
Revenue is expected to increase to $1.8 billion based on mid-single digit growth in our Global Power and Industrial Environmental business units while Global Services is expected to remain flat;
•
Full year adjusted EPS in the range of $1.25 to $1.45;
◦
Adjusted tax rate for 2016 is expected to be in the range of 31%-33%;
◦
Earnings are expected to start low in the first quarter and improve through the year due to project timing;
◦
EPS estimates exclude any mark-to-market adjustment for pension and post-retirement benefits or restructuring charges;
•
Free cash flow conversion is expected to be between 75% and 100% of net income; and
•
This guidance does not include incremental benefit from acquisitions or additional share repurchases beyond our initial share repurchase program that is expected to conclude by the end of the first quarter 2016.

"Through a combination of revenue growth driven by our strong backlog and robust bid pipeline, continued margin improvement and share buybacks through February 2016, we are projecting 12% adjusted EPS growth in 2016, relative to our original adjusted EPS guidance for 2015," continued Ferland." This guidance reflects some pressure on merchant utility spending from continued low natural gas prices, foreign exchange headwinds and a challenging global industrial market. We are confident that we will provide meaningful growth to our core business in 2016, while continuing to leverage our strong balance sheet to pursue acquisitions and/or additional share repurchases."

Conference Call to Discuss Fourth Quarter 2015 Results

Date:        Friday, February 26, 2015, at 8:30 a.m. EST
Live Webcast:    Investor Relations section of website at www.babcock.com

Forward-Looking Statements

Babcock & Wilcox Enterprises, Inc. (“B&W”) cautions that this press release contains forward-looking statements, including, without limitation, statements relating to backlog, to the extent it may be viewed as an indicator of future revenues; management’s expectations regarding the industries in which we operate; our guidance and forecasts for 2016; our projected operating margin improvements, savings and restructuring costs; growth through acquisitions; and our plans for stock repurchases. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, disruptions experienced with customers and suppliers; the inability to successfully operate independently after the spin-off; the inability to retain key personnel; adverse changes in the industries in which we operate; changes or termination of contracts in backlog; the timing and amount of repurchases of our common stock, if any; and the inability to grow and diversify through acquisitions. 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 B&W’s filings with the Securities and Exchange Commission, including the our annual report on Form 10-K and subsequent quarterly reports on Form 10-Q. B&W cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertake no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.






About B&W

Headquartered in Charlotte, N.C., Babcock & Wilcox is a global leader in energy and environmental technologies and services for the power and industrial markets. B&W companies employ approximately 5,700 people around the world. Follow us on Twitter @BabcockWilcox and learn more at www.babcock.com.
# # #

Investor Contact:                                 Media Contact:
Leslie Kass                         Ryan Cornell            
Vice President Investor Relations and Communications
Public Relations
Babcock & Wilcox
                Babcock & Wilcox
704.625.4944 » investors@babcock.com                 330.860.1345 » rscornell@babcock.com







EXHIBIT 1
BABCOCK & WILCOX ENTERPRISES, INC.
RECONCILIATION OF NON-GAAP OPERATING INCOME AND EARNINGS PER SHARE*
(In millions, except per share amounts and percentages)
Three Months Ended December 31, 2015
 
GAAP
Pension &
OPEB MTM
(Gain) / Loss
Impairments
Restructuring
Spin Costs
Non-GAAP
Operating income (loss)
$
(10.0
)
$
40.2

$
5.6

$
3.0

$
0.7

$
39.5

Other income (expense)
—

—

—

—

—

—

Income tax (expense) benefit
4.7

(16.0
)
(2.1
)
(1.0
)
(0.3
)
(14.7
)
Net income (loss)
$
(5.2
)
$
24.2

$
3.4

$
1.9

$
0.4

$
24.8

Net loss attributable to non-controlling interest
—

—

—

—

—

—

Net income (loss) attributable to B&W shareholders
$
(5.2
)
$
24.2

$
3.4

$
1.9

$
0.4

$
24.8

 
 
 
 
 
 
 
Diluted earnings (loss) per common share
$
(0.10
)
$
0.45

$
0.06

$
0.04

$
0.01

$
0.47

 
 
 
 
 
 
 
Income tax rate
47.4%
 
 
 
 
37.3%
(In millions, except per share amounts and percentages)
Three Months Ended December 31, 2014
 
GAAP
Pension &
OPEB MTM
(Gain) / Loss
Restructuring
NE Sgmt Allocation
MEGTEC Acquisition Costs
Non-GAAP
Operating income (loss)
$
(71.2
)
$
99.3

$
8.4

$
1.3

$
0.2

$
38.1

Other income (expense)
(0.8
)
—

—

—

—

(0.8
)
Income tax (expense) benefit
38.5

(37.0
)
(3.2
)
(0.1
)
(0.1
)
(1.9
)
Net income (loss)
$
(33.5
)
$
62.3

$
5.3

$
1.2

$
0.1

$
35.4

Net loss attributable to non-controlling interest
(0.1
)
—

—

—

—

(0.1
)
Net income (loss) attributable to B&W shareholders
$
(33.7
)
$
62.3

$
5.3

$
1.2

$
0.1

$
35.3

 
 
 
 
 
 
 
Diluted earnings (loss) per common share
$
(0.63
)
$
1.17

$
0.10

$
0.02

$
—

$
0.66

 
 
 
 
 
 
 
Income tax rate
53.4%
 
 
 
 
5.1%
(In millions, except per share amounts and percentages)
Twelve Months Ended December 31, 2015
 
GAAP
Pension &
OPEB MTM
(Gain) / Loss
Impairments
Restructuring
Litigation Settlement
NE Sgmt Allocation
Spin Costs
Non-GAAP
Operating income (loss)
$
21.9

$
40.2

$
14.6

$
11.7

$
9.6

$
2.7

$
3.3

$
103.8

Other income (expense)
(1.7
)
—

—

—

—

—

—

(1.7
)
Income tax (expense) benefit
(3.7
)
(16.0
)
(5.6
)
(4.2
)
(3.7
)
(0.7
)
(1.2
)
(35.1
)
Net income (loss)
$
16.5

$
24.2

$
9.0

$
7.5

$
5.8

$
2.0

$
2.0

$
67.1

Net loss attributable to non-controlling interest
(0.2
)
—

—

—

—

—

—

(0.2
)
Net income (loss) attributable to B&W shareholders
$
16.3

$
24.2

$
9.0

$
7.5

$
5.8

$
2.0

$
2.0

$
66.9

 
 
 
 
 
 
 
 
 
Diluted earnings (loss) per common share
$
0.30

$
0.45

$
0.17

$
0.14

$
0.11

$
0.04

$
0.04

$
1.25

 
 
 
 
 
 
 
 
 
Income tax rate
18.2%
 
 
 
 
 
 
34.3%
(In millions, except per share amounts and percentages)
Twelve Months Ended December 31, 2014
 
GAAP
Pension & OPEB MTM (Gain) / Loss
Restructuring
NE Sgmt Allocation
MEGTEC Acquisition Costs
Non-GAAP
Operating income (loss)
$
(38.0
)
$
101.3

$
20.2

$
5.3

$
1.4

$
90.2

Other income (expense)
1.4

—

—

—

—

1.4

Income tax (expense) benefit
24.7

(37.5
)
(7.2
)
(1.4
)
(0.5
)
(21.8
)
Net income (loss)
$
(11.9
)
$
63.9

$
13.0

$
3.9

$
0.9

$
69.7

Net loss attributable to non-controlling interest
(0.4
)
—

—

—

—

(0.4
)
Net income (loss) attributable to B&W shareholders
$
(12.3
)
$
63.9

$
13.0

$
3.9

$
0.9

$
69.3

 
 
 
 
 
 
 
Diluted earnings (loss) per common share
$
(0.23
)
$
1.18

$
0.24

$
0.07

$
0.02

$
1.28

 
 
 
 
 
 
 
Income tax rate
67.5%
 
 
 
 
23.9%

* The Company 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. B&W believes the non-GAAP measures provide meaningful insight in 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 B&W’s ongoing operations.





EXHIBIT 2
BABCOCK & WILCOX ENTERPRISES, INC.
CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
Three Months Ended
Twelve Months Ended
 
December 31,
December 31,
 
2015
2014
2015
2014
Revenues
$
502,678

$
444,556

$
1,757,295
 
$
1,486,029

Costs and expenses





 


Cost of operations
437,724

439,772

1,449,138
 
1,266,996

Research and development costs
4,086

5,688

16,543
 
18,483

Losses on asset disposals and impairments
5,560

276

14,597
 
1,752

Selling, general and administrative expenses
61,429

64,605

239,968
 
225,271

Restructuring activities and spin-off transaction costs
3,667

8,440

14,946
 
20,183

Total costs and expenses
512,466

518,781

1,735,192
 
1,532,685

Equity in income (loss) of investees
(185
)
3,023

(242
)
8,681

Operating income (loss)
(9,973
)
(71,202
)
21,861
 
(37,975
)
Other income (expense)
 
 
 
 
Interest income
198

141

618
 
1,060

Interest expense
(386
)
(107
)
(1,059
)
(492
)
Other, net
221

(828
)
(1,215
)
789

Total other income (expense)
33

(794
)
(1,656
)
1,357

Income (loss) before income tax expense (benefit)
(9,940
)
(71,996
)
20,205
 
(36,618
)
Income tax expense (benefit)
(4,710
)
(38,455
)
3,671
 
(24,728
)
Income (loss) from continuing operations
(5,230
)
(33,541
)
16,534
 
(11,890
)
Income (loss) from discontinued operations, net of tax
—

(14,509
)
2,803
 
(14,272
)
Net income (loss)
(5,230
)
(48,050
)
19,337
 
(26,162
)
Net income (loss) attributable to noncontrolling interest
26

(112
)
(196
)
(366
)
Net income (loss) attributable to B&W shareholders
$
(5,204
)
$
(48,162
)
$
19,141
 
$
(26,528
)
 
 
 
 
 
Amounts attributable to B&W shareholders
 
 
 
 
Income (loss) from continuing operations
(5,204
)
(33,653
)
16,338
 
(12,256
)
Income (loss) from discontinued operations, net of tax
—

(14,509
)
2,803
 
(14,272
)
Net income (loss) attributable to B&W shareholders
$
(5,204
)
$
(48,162
)
$
19,141
 
$
(26,528
)
 
 
 
 
 
Basic earnings (loss) per common share
 
 
 
 
Continuing operations
$
(0.10
)
$
(0.63
)
$
0.31
 
$
(0.23
)
Discontinued operations
$
—

$
(0.27
)
$
0.05
 
$
(0.26
)
Basic earnings (loss) per common share
$
(0.10
)
$
(0.90
)
$
0.36
 
$
(0.49
)
Diluted earnings (loss) per common share
 
 
 
 
Continuing operations
$
(0.10
)
$
(0.63
)
$
0.30
 
$
(0.23
)
Discontinued operations
$
—

$
(0.27
)
$
0.06
 
(0.26
)
Diluted earnings (loss) per common share
$
(0.10
)
$
(0.90
)
$
0.36
 
$
(0.49
)
Shares used in the computation of earnings per common share
 
 
 
 
Basic
53,258,392

53,298,706

53,487,071

 
54,238,631

Diluted
53,258,392

53,298,706

53,708,983

 
54,238,631








EXHIBIT 3
BABCOCK & WILCOX ENTERPRISES, INC.
CONSOLIDATED AND COMBINED BALANCE SHEETS
(In thousands)
December 31, 2015
 
December 31, 2014
ASSETS
 
Current assets
 
 
 
Cash and cash equivalents
$
365,192

 
$
218,659

Restricted cash and cash equivalents
37,144

 
26,311

Investments
3,996

 
1,607

Accounts receivable – trade, net
291,242

 
265,456

Accounts receivable – other
44,765

 
36,147

Contracts in progress
128,174

 
107,751

Inventories
90,119

 
98,711

Deferred income taxes
—

 
36,601

Other current assets
17,552

 
11,347

Assets of discontinued operations
—

 
46,177

Total current assets
978,184

 
848,767

Net property, plant and equipment
145,717

 
135,237

Investments
1,093

 
214

Goodwill
201,069

 
209,277

Deferred income taxes
190,656

 
115,111

Investments in unconsolidated affiliates
92,196

 
109,248

Intangible assets
37,844

 
50,646

Other assets
16,286

 
9,226

Assets of discontinued operations
—

 
38,828

TOTAL ASSETS
$
1,663,045

 
$
1,516,554

 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities
 
 
 
Short-term line of credit
$
2,005

 
$
3,215

Accounts payable
175,170

 
160,606

Accrued employee benefits
51,476

 
39,464

Advance billings on contracts
229,390

 
148,098

Accrued warranty expense
39,847

 
37,735

Other accrued liabilities
63,464

 
54,827

Liabilities of discontinued operations
—

 
44,145

Total current liabilities
561,352

 
488,090

Accumulated postretirement benefit obligation
27,768

 
28,347

Pension liability
282,133

 
253,763

Other liabilities
43,365

 
42,929

Liabilities of discontinued operations
—

 
15,988

Total liabilities
914,618

 
829,117

Commitments and contingencies
 
 
 
Stockholders’ equity
 
 
 
Common stock, par value $0.01 per share, authorized 200,000,000 shares; issued 52,480,630 and 0 shares at December 31, 2015 and December 31, 2014, respectively
540

 
—

Capital in excess of par value
790,464

 
—

Treasury stock at cost, 1,376,226 shares at December 31, 2015
(25,408
)
 
—

Retained earnings
965

 
—

Accumulated other comprehensive income
(18,853
)
 
10,374

Former net parent investment
—

 
676,036

Stockholders’ equity attributable to B&W shareholders
747,708

 
686,410

Noncontrolling interest
719

 
1,027

Total stockholders’ equity
748,427

 
687,437

      TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
1,663,045

 
$
1,516,554







EXHIBIT 4
BABCOCK & WILCOX ENTERPRISES, INC.
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended December 31,
 
2015
2014
2013
CASH FLOWS FROM OPERATING ACTIVITIES
 
Net income (loss)
19,337

(26,162
)
174,816

Non-cash items included in net income (loss)






Depreciation and amortization
34,932

32,436

23,030

Income of investees, net of dividends
242

8,743

1,995

Losses on asset disposals and impairments
16,881

5,989

2,580

Write-off of accrued claims receivable
7,832

—

0

Provision for (benefit from) deferred taxes
(32,121
)
(42,023
)
56,107

Recognition of (gains) losses for pension and postretirement plans
40,611

101,792

(91,358
)
Stock-based compensation and thrift plan expense
7,773

(11
)
(172
)
Changes in assets and liabilities, net of effects from acquisitions






Accounts receivable
(33,977
)
(13,797
)
4,898

Accounts payable
17,863

(8,860
)
(13,354
)
Contracts in progress and advance billings on contracts
62,971

(99,192
)
(97,360
)
Inventories
6,060

4,309

10,769

Income taxes
9,275

10,123

(23,309
)
Accrued and other current liabilities
11,464

9,660

(22,520
)
Pension liability, accrued postretirement benefit obligation and employee benefits
(2,336
)
(17,259
)
(20,053
)
Other, net
3,592

10,028

10,331

NET CASH FROM OPERATING ACTIVITIES
170,399

(24,224
)
16,400

CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
Change in restricted cash and cash equivalents
6,298

(5,646
)
11,419

Purchases of property, plant and equipment
(35,397
)
(15,475
)
(11,588
)
Acquisition of businesses, net of cash acquired
—

(127,705
)
—

Purchase of intangible assets
—

(722
)
—

Purchases of available-for-sale securities
(14,008
)
(4,450
)
(11,111
)
Sales and maturities of available-for-sale securities
5,266

10,118

3,973

Proceeds from (cost of) asset disposals
(587
)
149

507

Investment in equity and cost method investees
(7,424
)
(4,900
)
(6,884
)
NET CASH FROM INVESTING ACTIVITIES
(45,852
)
(148,631
)
(13,684
)
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
Payment of short-term borrowing and long-term debt
(1,080
)
(4,538
)
(212
)
Payment of debt issuance costs
—

2,967

484

Net transfers from former Parent
80,589

213,137

47,445

Repurchase of common shares
(25,408
)
—

—

Excess tax benefits from stock-based compensation
—

11

172

Other
(491
)
89

(114
)
NET CASH FROM FINANCING ACTIVITIES
53,610

211,666

47,775

 
 
 
 
EFFECTS OF EXCHANGE RATE CHANGES ON CASH
(6,407
)
(12,573
)
(4,024
)
CASH FLOWS FROM DISCONTINUED OPERATIONS
 
 
 
Operating cash flows from discontinued operations, net
(25,194
)
(191
)
(28,723
)
Investing cash flows from discontinued operations, net
(23
)
(1,729
)
(4,974
)
Effects of exchange rate changes on cash
—

3,023

3,012

NET CASH FLOWS FROM DISCONTINUED OPERATIONS
(25,217
)
1,103

(30,685
)
 
 
 
 
NET CHANGE IN CASH AND CASH EQUIVALENTS
146,533

27,341

15,782

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
218,659

191,318

175,536

CASH AND CASH EQUIVALENTS AT END OF PERIOD
365,192

218,659

191,318







EXHIBIT 5
BABCOCK & WILCOX ENTERPRISES, INC.
SEGMENT INFORMATION
 
Three Months Ended
Twelve Months Ended
(In thousands)
December 31,
December 31,
 
2015
2014
2015
2014
REVENUES
 
 
 
 
Global Power
$
198,707

$
128,039

$
639,970

$
471,929

Global Services
243,659

263,601

933,630

908,682

Industrial Environmental
60,312

52,916

183,695

105,418

 
$
502,678

$
444,556

$
1,757,295

$
1,486,029

 
 
 
 
 
GROSS PROFIT
 
 
 
 
Global Power
$
38,425

$
30,210

$
111,309

$
94,647

Global Services
53,720

55,989

192,241

193,629

Industrial Environmental
17,116

12,789

48,914

24,961

Gross profit from segments
109,261

98,988

352,464

313,237

Mark to market adjustment included in cost of operations*
(44,307
)
(94,204
)
(44,307
)
(94,204
)
 
$
64,954

$
4,784

$
308,157

$
219,033

 
 
 
 
 
BOOKINGS
 
 
 
 
Global Power
$
66,300

$
275,554

$
816,300

$
647,981

Global Services
287,900

237,112

843,000

835,344

Industrial Environmental
35,100

46,139

178,000

91,041

 
$
389,300

$
558,805

$
1,837,300

$
1,574,366

 
 
 
 
 
BACKLOG
 
 
 
 
Global Power
$
1,118,049

$
946,360

$
1,118,049

$
946,360

Global Services
1,143,306

1,229,199

1,143,306

1,229,199

Industrial Environmental
66,459

72,179

66,459

72,179

 
$
2,327,814

$
2,247,738

$
2,327,814

$
2,247,738


* Total mark to market adjustments for the Company's pension and post retirement benefit obligations were a loss of $40.2 million in 2015 and a loss of $101.3 million 2014, of which a $4.1 million gain in 2015 and a $7.2 million loss in 2014 were included in selling, general and administrative expense and the remainder was included in cost of operations. In 2015, the entire mark to market adjustment was recorded in the fourth quarter. The total mark to market adjustment in the fourth quarter of 2014 was a loss of $99.3 million, of which $5.1 million was included in selling, general and administrative expense and the remainder was included in cost of operations.







EXHIBIT 6
BABCOCK & WILCOX ENTERPRISES, INC.
QUARTERLY INFORMATION
(In thousands, except per share amounts)
March 31,
2015
 
June 30,
2015
 
September 30,
2015
 
December 31,
2015
Revenues
$
397,155

 
$
437,485

 
$
419,977

 
$
502,678

Costs and expenses:
 
 
 
 
 
 
 
Cost of operations
313,758

 
355,601

 
342,055

 
437,724

Research and development costs
4,518

 
3,962

 
3,977

 
4,086

Losses on asset disposals and impairments
18

 
9,009

 
10

 
5,560

Selling, general and administrative expenses
56,193

 
59,709

 
62,637

 
61,429

Restructuring activities and spin-off transaction costs
3,254

 
5,312

 
2,713

 
3,667

Total costs and expenses
377,741

 
433,593

 
411,392

 
512,466

Equity in income (loss) of investees
(2,071
)
 
967

 
1,047

 
(185
)
Operating income (loss)
17,343

 
4,859

 
9,632

 
(9,973
)
 
 
 
 
 
 
 
 
Interest income
156

 
126

 
138

 
198

Interest expense
(140
)
 
(144
)
 
(389
)
 
(386
)
Other, net
(311
)
 
201

 
(1,326
)
 
221

Total other income (expense)
(295
)
 
183

 
(1,577
)
 
33

Income before income tax expense (benefit)
17,048

 
5,042

 
8,055

 
(9,940
)
Income tax expense (benefit)
5,692

 
919

 
1,770

 
(4,710
)
Income (loss) from continuing operations
11,356

 
4,123

 
6,285

 
(5,230
)
Income (loss) from discontinued operations, net of tax
1,385

 
1,418

 
—

 
—

Net income (loss)
12,741

 
5,541

 
6,285

 
(5,230
)
Net income attributable to noncontrolling interest
(52
)
 
(54
)
 
(116
)
 
26

Net income (loss) attributable to shareholders
$
12,689

 
$
5,487

 
$
6,169

 
$
(5,204
)
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
11,304

 
4,069

 
6,169

 
(5,204
)
Income (loss) from discontinued operations, net of tax
1,385

 
1,418

 
—

 
—

Net income (loss) attributable to shareholders
$
12,689

 
$
5,487

 
$
6,169

 
$
(5,204
)
 
 
 
 
 
 
 
 
Earnings (loss) per common share
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
 
Continuing operations
$
0.21

 
$
0.08

 
$
0.11

 
$
(0.10
)
Discontinued operations
0.03

 
0.02

 
—

 
—

Basic earnings (loss) per common share
$
0.24

 
$
0.10

 
$
0.11

 
$
(0.10
)
Diluted
 
 
 
 
 
 
 
Continuing operations
$
0.21

 
$
0.08

 
$
0.11

 
$
(0.10
)
Discontinued operations
0.03

 
0.02

 
—

 
—

Diluted earnings (loss) per common share
0.24

 
0.10

 
0.11

 
(0.10
)
 





(In thousands, except per share amounts)
March 31,
2014
 
June 30,
2014
 
September 30,
2014
 
December 31,
2014
Revenues
$
312,078

 
$
327,379

 
$
402,016

 
$
444,556

Costs and expenses:
 
 
 
 
 
 
 
Cost of operations
255,227

 
258,351

 
313,646

 
439,772

Research and development costs
4,012

 
4,281

 
4,502

 
5,688

Losses on asset disposals and impairments
—

 
1,457

 
19

 
276

Selling, general and administrative expenses
49,212

 
53,040

 
58,414

 
64,605

Restructuring activities and spin-off transaction costs
1,478

 
7,513

 
2,752

 
8,440

Total costs and expenses
309,929

 
324,642

 
379,333

 
518,781

Equity in income (loss) of investees
2,366

 
433

 
2,859

 
3,023

Operating income (loss)
4,515

 
3,170

 
25,542

 
(71,202
)
 
 
 
 
 
 
 
 
Interest income
629

 
48

 
242

 
141

Interest expense
(120
)
 
(84
)
 
(181
)
 
(107
)
Other, net
1,231

 
323

 
63

 
(828
)
Total other income (expense)
1,740

 
287

 
124

 
(794
)
Income before income tax expense (benefit)
6,255

 
3,457

 
25,666

 
(71,996
)
Income tax expense (benefit)
(1,008
)
 
1,841

 
12,894

 
(38,455
)
Income (loss) from continuing operations
7,263

 
1,616

 
12,772

 
(33,541
)
Income (loss) from discontinued operations, net of tax
3,942

 
3,397

 
(7,102
)
 
(14,509
)
Net income (loss)
11,205

 
5,013

 
5,670

 
(48,050
)
Net income attributable to noncontrolling interest
(116
)
 
(77
)
 
(61
)
 
(112
)
Net income (loss) attributable to shareholders
$
11,089

 
$
4,936

 
$
5,609

 
$
(48,162
)
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
7,147

 
1,539

 
12,711

 
(33,653
)
Income (loss) from discontinued operations, net of tax
3,942

 
3,397

 
(7,102
)
 
(14,509
)
Net income (loss) attributable to shareholders
$
11,089

 
$
4,936

 
$
5,609

 
$
(48,162
)
 
 
 
 
 
 
 
 
Earnings (loss) per common share
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
 
Continuing operations
$
0.13

 
$
0.03

 
$
0.24

 
$
(0.63
)
Discontinued operations
0.07

 
0.06

 
(0.14
)
 
(0.27
)
Basic earnings (loss) per common share
$
0.20

 
$
0.09

 
$
0.10

 
$
(0.90
)
Diluted
 
 
 
 
 
 
 
Continuing operations
$
0.13

 
$
0.03

 
$
0.24

 
$
(0.63
)
Discontinued operations
0.07

 
0.06

 
(0.14
)
 
(0.27
)
Diluted earnings (loss) per common share
0.20

 
0.09

 
0.10

 
(0.90
)