UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________________________________________________
FORM 8-K
______________________________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 22, 2022
(Exact name of registrant as specified in its charter)
_____________________________________________________________________________
| (State or other jurisdiction | (Commission | (IRS Employer | |||||||||||||||||||||
| of incorporation) | File Number) | Identification No.) | |||||||||||||||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||||||||||||||
Registrant’s telephone number, including area code: (980 ) 365-4300
____________________________________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
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| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On February 22, 2022, we issued a press release announcing our financial results for the fourth quarter ended December 31, 2021. A copy of the press release is attached as Exhibit 99.1, and the information contained in Exhibit 99.1 is incorporated by reference.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| 99.1 | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BWX TECHNOLOGIES, INC. | |||||||||||
| By: | /s/ Jason S. Kerr | ||||||||||
| Jason S. Kerr | |||||||||||
| Vice President and Chief Accounting Officer | |||||||||||
February 22, 2022
BWX Technologies Reports Fourth Quarter and Full-Year 2021 Results
•Generates 4Q21 EPS of $1.26 (GAAP), $0.95 (non-GAAP); up 83% and 28%, respectively vs. 4Q20
•Reports 2021 EPS of $3.24 (GAAP), $3.06 (non-GAAP); up 11% and 1%, respectively vs. 2020
•Produces 4Q21 adjusted EBITDA of $123 million, full-year 2021 adjusted EBITDA of $418 million
•Announces consolidation of three reporting business segments into two: Government Operations and Commercial Operations
•Reiterates 2022 non-GAAP EPS outlook and provides additional 2022 guidance including:
◦Consolidated revenue and adjusted EBITDA growth of 3% to 4%
◦Non-GAAP EPS range of $3.05 to $3.25
◦Cash from operations of $260 million to $290 million
Lynchburg, VA - Feb. 22, 2022 - BWX Technologies, Inc. (NYSE: BWXT) ("BWXT", "we", "us" or the "Company") reported fourth quarter 2021 revenue of $592 million, a 6% increase compared with $557 million in the fourth quarter 2020. GAAP net income for the fourth quarter 2021 was $117 million, or $1.26 per diluted share, compared with GAAP net income of $65.7 million, or $0.69 per diluted share, in the prior-year period. Non-GAAP net income for the fourth quarter 2021 was $88.2 million, or $0.95 per diluted share, compared with non-GAAP net income of $70.9 million, or $0.74 per diluted share, in the prior-year period.
Full-year 2021 revenue was over $2.1 billion, a slight increase compared with 2020 revenue. GAAP net income in 2021 was $306 million, or $3.24 per diluted share, compared with GAAP net income of $279 million, or $2.91 per diluted share, in 2020. Non-GAAP net income in 2021 was $289 million, or $3.06 per diluted share, compared with non-GAAP net income of $290 million, or $3.03 per diluted share, in 2020. A reconciliation of non-GAAP results is detailed in Exhibit 1.
“Despite business challenges, including persistence of the pandemic, we delivered another year of solid earnings and set the table for further expansion of the business,” said Rex D. Geveden, president and chief executive officer. “Although we reported at the lower end of our initial range, 2021 was marked by several key milestone achievements. BWXT secured a new sole-source nuclear materials contract, won and began transition of a new flagship contract for the Department of Energy nuclear restoration project at Savannah River, strengthened our beachhead in therapeutic radiopharmaceuticals, and continued to mature new technology and designs for microreactor programs.”
“We expect to build on these successes in 2022 to deliver the medium-term financial targets set forth at our recent Investor Day. Additionally, we are announcing a new organization of our reporting segments to reflect the way we are running the business, which we expect to result in meaningful strategic and cost synergies."
"We remain focused on driving our multi-faceted growth strategy by using nuclear technology to solve some of our customers' most challenging problems through two distinct customer-based reporting segments: Government Operations and Commercial Operations,” said Geveden.
Segment Results
Nuclear Operations Group (NOG) segment revenue was $453 million for the fourth quarter 2021, a 6% increase from the prior-year period, driven by higher long-lead material production and labor volume. Full-year 2021 segment revenue was over $1.6 billion, a 1% decrease compared with 2020 revenue, as a result of higher labor volume and higher naval nuclear fuel and uranium downblending, which was more than offset by lower long-lead material production.
NOG operating income was $85.8 million in the fourth quarter 2021, a 6% increase compared with the prior-year period, primarily driven by higher revenue. Full-year segment operating income was $309 million, a 5% decrease compared with the prior year, primarily driven by less government-reimbursed pension costs and negative operational efficiency impacts related to COVID-19 resulting in lower levels of net favorable contract adjustments. Fourth quarter and full-year 2021 segment operating margins were 18.9% and 19.0%, respectively.
Nuclear Power Group (NPG) segment revenue was $114 million for the fourth quarter 2021, a 7% increase from the prior-year period, driven by higher fuel production and fuel handling, higher nuclear power field service activity and higher nuclear medicine demand, partially offset by lower component manufacturing volume. Full-year segment revenue was $407 million, a 10% increase compared with the prior year, driven by higher fuel production and fuel handling, higher nuclear power field service activity and higher nuclear medicine demand, partially offset by lower component manufacturing volume.
NPG fourth quarter GAAP and non-GAAP operating income was $22.4 million and $23.0 million, respectively, both a 70% respective increase compared with the prior-year period, driven primarily by increased revenue, partially offset by a reduction in funds received under the CEWS program to offset incurred expenses related to the headwinds created by the pandemic. Full-year 2021 segment GAAP and non-GAAP operating income was $52.5 million and $53.5 million, respectively, a 1% increase and a 1% decrease, respectively, compared with the prior year, driven primarily by a reduction in funds received in under the CEWS program to offset expenses incurred due to the pandemic, nearly offset by increased operating income associated with higher revenue. Fourth quarter and full-year 2021 GAAP segment operating margins were 19.6% and 12.9%, respectively. Fourth quarter and full-year 2021 non-GAAP segment operating margins were 20.1% and 13.1%, respectively.
Nuclear Services Group (NSG) segment operating income was $6.1 million in the fourth quarter 2021, compared with $8.4 million of operating income for the fourth quarter 2020 primarily driven by lower contract fees and higher costs. Full-year 2021 segment operating income was $27.9 million, compared with $26.4 million GAAP operating income and $27.4 million non-GAAP operating income in the prior year, a 6% and 2% respective increase, driven by better contract performance and lower costs that were offset by higher business development expense and lower income from completed contracts.
Beginning in the first quarter 2022, our reportable segments will be Government Operations and Commercial Operations to reflect the manner in which resources will be allocated and operating performance will be assessed going forward. Government Operations includes the legacy Nuclear Operations and Nuclear Services Groups, while Commercial Operations includes the legacy Nuclear Power Group. New segment financial information for 2020 and 2021 is detailed in Exhibit 2.
Cash and Capital Returned to Shareholders
The Company generated $160 million of cash from operating activities in the fourth quarter 2021, compared with $48.3 million of cash generated from operating activities in the prior-year period, which did not include an $88.7 million cash receipt typically received at year-end which was received on January 4, 2021. The Company generated $386 million of cash from operating activities for the full year 2021. The Company’s cash balance, net of restricted cash, was $34 million at the end of the year.
The Company returned $59.4 million to shareholders during the fourth quarter 2021, bringing the total to $305 million of cash returned for the full year, including $226 million in share repurchases and $79.7 million in dividends. As of December 31, 2021, total remaining share repurchase authorization was $418 million.
On February 18, 2022, the BWXT Board of Directors declared a quarterly cash dividend of $0.22 per common share, an increase from the prior quarterly cash dividend. The dividend will be payable on March 29, 2022, to shareholders of record on March 10, 2022.
2022 Guidance
•Revenue up 3% to 4% vs. 2021
•Adjusted EBITDA up 3% to 4% vs. 2021
•Non-GAAP EPS range of $3.05 to $3.25
•Cash from operations of $260 million to $290 million
•Capital expenditures of $180 million to $200 million
The Company does not provide GAAP guidance because it is unable to reliably forecast most of the items that are excluded from GAAP to calculate non-GAAP results. These items could cause GAAP results to differ materially from non-GAAP results. See reconciliation of non-GAAP results in Exhibit 1 for additional information.
Conference Call to Discuss Fourth Quarter and Full Year 2021 Results
Date: Tuesday, February 22, 2022, 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/q42021-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.
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, and planned changes to such segments in 2022, including the expectations, timing and revenue of our strategic initiatives, such as medical radioisotopes; disruptions to our supply chain and/or operations, changes in government regulations and
other factors, including any such impacts of, or actions in response to the COVID-19 health crisis; and our expectations and guidance for 2022 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; the lack of, or adverse changes in, federal appropriations to government programs in which we participate; the demand for and competitiveness of nuclear products and services; capital priorities of power generating utilities and other customers; the impact of COVID-19 on our business and our employees, contractors, suppliers, customers and other partners and their business activities; the extent to which the length and severity of the COVID-19 health crisis exceeds our current expectations; the potential recurrence of subsequent waves or strains of COVID-19 or similar diseases; 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, 2021. 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 Fortune 1000 and Defense News Top 100 manufacturing and engineering innovator that provides safe and effective nuclear solutions for global security, clean energy, environmental remediation, nuclear medicine and space exploration. With approximately 6,600 employees, BWXT has 12 major operating sites in the U.S. and Canada. In addition, BWXT joint ventures provide management and operations at more than a dozen U.S. Department of Energy and NASA facilities. Follow us on Twitter at @BWXT and learn more at www.bwxt.com.
| Investor Contact: | Media Contact: | |||||||||||||
| Mark Kratz | Jud Simmons | |||||||||||||
| Director, Investor Relations | Director, Media and Public Relations | |||||||||||||
| 980-365-4300 | Investors@bwxt.com | 434-522-6462 | hjsimmons@bwxt.com | |||||||||||
EXHIBIT 1
BWX TECHNOLOGIES, INC.
RECONCILIATION OF NON-GAAP OPERATING INCOME AND EARNINGS PER SHARE(1)(2)(3)
(In millions, except per share amounts)
| Three Months Ended December 31, 2021 | |||||||||||||||||||||||||||||||||||
| GAAP | Pension & OPEB MTM (Gain) / Loss | Restructuring and Other Costs | Non-GAAP | ||||||||||||||||||||||||||||||||
Operating Income | $ | 102.2 | $ | — | $ | 2.4 | $ | 104.6 | |||||||||||||||||||||||||||
Other Income (Expense) | 44.9 | (39.6) | — | 5.3 | |||||||||||||||||||||||||||||||
| Provision for Income Taxes | (30.2) | 9.1 | (0.6) | (21.7) | |||||||||||||||||||||||||||||||
Net Income | 116.9 | (30.5) | 1.8 | 88.2 | |||||||||||||||||||||||||||||||
Net Income Attributable to Noncontrolling Interest | (0.0) | — | — | (0.0) | |||||||||||||||||||||||||||||||
Net Income Attributable to BWXT | $ | 116.9 | $ | (30.5) | $ | 1.8 | $ | 88.2 | |||||||||||||||||||||||||||
Diluted Shares Outstanding | 92.5 | 92.5 | |||||||||||||||||||||||||||||||||
Diluted Earnings per Common Share | $ | 1.26 | $ | (0.33) | $ | 0.02 | $ | 0.95 | |||||||||||||||||||||||||||
Effective Tax Rate | 20.5% | 19.8% | |||||||||||||||||||||||||||||||||
| NPG Operating Income | $ | 22.4 | $ | 0.6 | $ | 23.0 | |||||||||||||||||||||||||||||
| Unallocated Corporate Operating Income | $ | (7.1) | $ | 1.8 | $ | (5.3) | |||||||||||||||||||||||||||||
| Three Months Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||
| GAAP | Pension & OPEB MTM (Gain) / Loss | Restructuring Costs | Costs Associated with Sale of Business | Non-GAAP | |||||||||||||||||||||||||||||||
Operating Income | $ | 89.1 | $ | — | $ | 0.4 | $ | 0.2 | $ | 89.6 | |||||||||||||||||||||||||
Other Income (Expense) | (1.3) | 6.4 | — | — | 5.1 | ||||||||||||||||||||||||||||||
| Provision for Income Taxes | (21.8) | (1.6) | (0.1) | (0.0) | (23.5) | ||||||||||||||||||||||||||||||
Net Income | 66.0 | 4.8 | 0.3 | 0.2 | 71.2 | ||||||||||||||||||||||||||||||
Net Income Attributable to Noncontrolling Interest | (0.2) | — | — | — | (0.2) | ||||||||||||||||||||||||||||||
Net Income Attributable to BWXT | $ | 65.7 | $ | 4.8 | $ | 0.3 | $ | 0.2 | $ | 70.9 | |||||||||||||||||||||||||
Diluted Shares Outstanding | 95.8 | 95.8 | |||||||||||||||||||||||||||||||||
Diluted Earnings per Common Share | $ | 0.69 | $ | 0.05 | $ | 0.00 | $ | 0.00 | $ | 0.74 | |||||||||||||||||||||||||
Effective Tax Rate | 24.8% | 24.8% | |||||||||||||||||||||||||||||||||
| NPG Operating Income | $ | 13.2 | $ | 0.4 | $ | 13.6 | |||||||||||||||||||||||||||||
| (1) | Tables may not foot due to rounding. | ||||||||||||||||||||||||||||||||||
| (2) | BWXT is providing non-GAAP information regarding certain of its historical results and guidance on future earnings per share to supplement the results provided in accordance with GAAP and it should not be considered superior to, or as a substitute for, the comparable GAAP measures. BWXT believes the non-GAAP measures provide meaningful insight and transparency into the Company’s operational performance and provides these measures to investors to help facilitate comparisons of operating results with prior periods and to assist them in understanding BWXT's ongoing operations. | ||||||||||||||||||||||||||||||||||
| (3) | BWXT has not included a reconciliation of provided non-GAAP guidance to the comparable GAAP measures due to the difficulty of estimating any mark-to-market adjustments for pension and post-retirement benefits, which are determined at the end of the year. | ||||||||||||||||||||||||||||||||||
EXHIBIT 1 (continued)
BWX TECHNOLOGIES, INC.
RECONCILIATION OF NON-GAAP OPERATING INCOME AND EARNINGS PER SHARE(1)(2)(3)
(In millions, except per share amounts)
| Year Ended December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
| GAAP | Pension & OPEB MTM (Gain) / Loss | Restructuring and Other Costs | Costs Associated With Early Bond Redemption | Non-GAAP | |||||||||||||||||||||||||||||||||||||||||||
Operating Income | $ | 345.8 | $ | — | $ | 3.1 | $ | — | $ | 349.0 | |||||||||||||||||||||||||||||||||||||
Other Income (Expense) | 49.9 | (39.6) | — | 15.0 | 25.3 | ||||||||||||||||||||||||||||||||||||||||||
| Provision for Income Taxes | (89.4) | 9.1 | (0.8) | (3.5) | (84.6) | ||||||||||||||||||||||||||||||||||||||||||
Net Income | 306.3 | (30.5) | 2.4 | 11.5 | 289.6 | ||||||||||||||||||||||||||||||||||||||||||
Net Income Attributable to Noncontrolling Interest | (0.4) | — | — | — | (0.4) | ||||||||||||||||||||||||||||||||||||||||||
Net Income Attributable to BWXT | $ | 305.9 | $ | (30.5) | $ | 2.4 | $ | 11.5 | 289.2 | ||||||||||||||||||||||||||||||||||||||
Diluted Shares Outstanding | 94.5 | 94.5 | |||||||||||||||||||||||||||||||||||||||||||||
Diluted Earnings per Common Share | $ | 3.24 | $ | (0.32) | $ | 0.03 | $ | 0.12 | $ | 3.06 | |||||||||||||||||||||||||||||||||||||
Effective Tax Rate | 22.6% | 22.6% | |||||||||||||||||||||||||||||||||||||||||||||
| NOG Operating Income | $ | 308.6 | $ | 0.2 | $ | 308.8 | |||||||||||||||||||||||||||||||||||||||||
| NPG Operating Income | $ | 52.5 | $ | 0.9 | $ | 53.5 | |||||||||||||||||||||||||||||||||||||||||
| Unallocated Corporate Operating Income | $ | (18.9) | $ | 2.1 | $ | (16.9) | |||||||||||||||||||||||||||||||||||||||||
| Year Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
| GAAP | Pension & OPEB MTM (Gain) / Loss | Restructuring Costs | Costs Associated with Sale of Business | Debt Issuance Costs | One-time Franchise Tax Audit Expense | Non-GAAP | |||||||||||||||||||||||||||||||||||||||||
Operating Income | $ | 358.6 | $ | — | $ | 2.3 | $ | 2.9 | $ | — | $ | 2.6 | $ | 366.3 | |||||||||||||||||||||||||||||||||
Other Income (Expense) | 3.6 | 6.4 | — | — | 0.5 | — | 10.5 | ||||||||||||||||||||||||||||||||||||||||
| Provision for Income Taxes | (83.0) | (1.6) | (0.6) | (0.7) | (0.1) | (0.6) | (86.5) | ||||||||||||||||||||||||||||||||||||||||
Net Income | 279.2 | 4.8 | 1.7 | 2.2 | 0.4 | 2.0 | 290.3 | ||||||||||||||||||||||||||||||||||||||||
Net Income Attributable to Noncontrolling Interest | (0.5) | — | — | — | — | — | (0.5) | ||||||||||||||||||||||||||||||||||||||||
Net Income Attributable to BWXT | $ | 278.7 | $ | 4.8 | $ | 1.7 | $ | 2.2 | $ | 0.4 | $ | 2.0 | 289.8 | ||||||||||||||||||||||||||||||||||
Diluted Shares Outstanding | 95.7 | 95.7 | |||||||||||||||||||||||||||||||||||||||||||||
Diluted Earnings per Common Share | $ | 2.91 | $ | 0.05 | $ | 0.02 | $ | 0.02 | $ | 0.00 | $ | 0.02 | $ | 3.03 | |||||||||||||||||||||||||||||||||
Effective Tax Rate | 22.9% | 23.0% | |||||||||||||||||||||||||||||||||||||||||||||
NPG Operating Income | $ | 52.0 | $ | 2.3 | $ | 54.2 | |||||||||||||||||||||||||||||||||||||||||
NSG Operating Income | $ | 26.4 | $ | 1.0 | $ | 27.4 | |||||||||||||||||||||||||||||||||||||||||
| (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. | ||||||||||||||||||||||||||||||||||||||||||||||
EXHIBIT 1 (continued)
BWX TECHNOLOGIES, INC.
RECONCILIATION OF EBITDA(1)(2)(3)
(In millions, except per share amounts)
| Three Months Ended December 31, 2021 | |||||||||||||||||||||||||||||||||||
| GAAP | Pension & OPEB MTM (Gain) / Loss | Restructuring and Other Costs | Non-GAAP | ||||||||||||||||||||||||||||||||
| Net Income | $ | 116.9 | $ | (30.5) | $ | 1.8 | $ | 88.2 | |||||||||||||||||||||||||||
| Provision for Income Taxes | 30.2 | (9.1) | 0.6 | 21.7 | |||||||||||||||||||||||||||||||
| Other - net | (51.9) | 39.6 | — | (12.3) | |||||||||||||||||||||||||||||||
| Interest Income | (0.0) | — | — | — | |||||||||||||||||||||||||||||||
| Interest Expense | 7.0 | — | — | 7.0 | |||||||||||||||||||||||||||||||
| Depreciation & Amortization | 18.6 | — | — | $ | 18.6 | ||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 120.8 | $ | — | $ | 2.4 | $ | 123.2 | |||||||||||||||||||||||||||
| Year Ended December 31, 2021 | |||||||||||||||||||||||||||||||||||
| GAAP | Pension & OPEB MTM (Gain) / Loss | Restructuring and Other Costs | Costs Associated With Early Bond Redemption | Non-GAAP | |||||||||||||||||||||||||||||||
| Net Income | $ | 306.3 | $ | (30.5) | $ | 2.4 | $ | 11.5 | $ | 289.6 | |||||||||||||||||||||||||
| Provision for Income Taxes | 89.4 | (9.1) | 0.8 | 3.5 | 84.6 | ||||||||||||||||||||||||||||||
| Other - net | (85.2) | 39.6 | — | (10.8) | (56.4) | ||||||||||||||||||||||||||||||
| Interest Income | (0.4) | — | — | — | (0.4) | ||||||||||||||||||||||||||||||
| Interest Expense | 35.8 | — | — | (4.2) | 31.5 | ||||||||||||||||||||||||||||||
| Depreciation & Amortization | 69.1 | — | — | — | $ | 69.1 | |||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 414.9 | $ | — | $ | 3.1 | $ | — | $ | 418.1 | |||||||||||||||||||||||||
| (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. | ||||||||||||||||||||||||||||||||||||||||||||||
BWX TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
ASSETS
| December 31, | ||||||||||||||
| 2021 | 2020 | |||||||||||||
| (In thousands) | ||||||||||||||
| Current Assets: | ||||||||||||||
| Cash and cash equivalents | $ | 33,891 | $ | 42,610 | ||||||||||
| Restricted cash and cash equivalents | 2,896 | 3,070 | ||||||||||||
| Investments | 3,811 | 3,707 | ||||||||||||
| Accounts receivable – trade, net | 70,663 | 153,368 | ||||||||||||
| Accounts receivable – other | 16,651 | 22,239 | ||||||||||||
| Retainages | 51,507 | 55,172 | ||||||||||||
| Contracts in progress | 546,595 | 449,176 | ||||||||||||
| Other current assets | 47,718 | 44,256 | ||||||||||||
| Total Current Assets | 773,732 | 773,598 | ||||||||||||
| Property, Plant and Equipment, Net | 1,045,640 | 816,471 | ||||||||||||
| Investments | 9,558 | 9,356 | ||||||||||||
| Goodwill | 285,502 | 283,708 | ||||||||||||
| Deferred Income Taxes | 21,394 | 49,415 | ||||||||||||
| Investments in Unconsolidated Affiliates | 85,284 | 71,806 | ||||||||||||
| Intangible Assets | 185,551 | 192,751 | ||||||||||||
| Other Assets | 94,719 | 96,398 | ||||||||||||
| TOTAL | $ | 2,501,380 | $ | 2,293,503 | ||||||||||
BWX TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS’ EQUITY
| December 31, | ||||||||||||||
| 2021 | 2020 | |||||||||||||
| (In thousands, except share and per share amounts) | ||||||||||||||
Current Liabilities: | ||||||||||||||
| Bank overdraft | $ | — | $ | 88,694 | ||||||||||
| Accounts payable | 189,842 | 184,392 | ||||||||||||
| Accrued employee benefits | 71,835 | 89,740 | ||||||||||||
| Accrued liabilities – other | 80,998 | 78,028 | ||||||||||||
| Advance billings on contracts | 111,619 | 83,581 | ||||||||||||
| Accrued warranty expense | 5,321 | 5,292 | ||||||||||||
| Total Current Liabilities | 459,615 | 529,727 | ||||||||||||
Long-Term Debt | 1,189,304 | 862,731 | ||||||||||||
Accumulated Postretirement Benefit Obligation | 24,333 | 25,689 | ||||||||||||
Environmental Liabilities | 92,642 | 84,153 | ||||||||||||
Pension Liability | 59,388 | 144,859 | ||||||||||||
Other Liabilities | 38,863 | 28,576 | ||||||||||||
Commitments and Contingencies | ||||||||||||||
Stockholders' Equity: | ||||||||||||||
| Common stock, par value $0.01 per share, authorized 325,000,000 shares; issued 127,311,985 and 127,009,536 shares at December 31, 2021 and 2020, respectively | 1,273 | 1,270 | ||||||||||||
| Preferred stock, par value $0.01 per share, authorized 75,000,000 shares; no shares issued | — | — | ||||||||||||
| Capital in excess of par value | 174,288 | 153,800 | ||||||||||||
| Retained earnings | 1,775,751 | 1,549,950 | ||||||||||||
| Treasury stock at cost, 35,915,747 and 31,698,747 shares at December 31, 2021 and 2020, respectively | (1,326,280) | (1,095,452) | ||||||||||||
| Accumulated other comprehensive income (loss) | 12,143 | 8,198 | ||||||||||||
| Stockholders' Equity – BWX Technologies, Inc. | 637,175 | 617,766 | ||||||||||||
| Noncontrolling interest | 60 | 2 | ||||||||||||
| Total Stockholders' Equity | 637,235 | 617,768 | ||||||||||||
TOTAL | $ | 2,501,380 | $ | 2,293,503 | ||||||||||
BWX TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
| (Unaudited) (In thousands, except share and per share amounts) | ||||||||||||||||||||||||||
Revenues | $ | 591,975 | $ | 556,910 | $ | 2,124,074 | $ | 2,123,516 | ||||||||||||||||||
Costs and Expenses: | ||||||||||||||||||||||||||
Cost of operations | 443,644 | 414,359 | 1,573,797 | 1,548,119 | ||||||||||||||||||||||
Research and development costs | 1,568 | 2,624 | 11,059 | 14,189 | ||||||||||||||||||||||
Losses (gains) on asset disposals and impairments, net | (2,514) | (1,685) | (3,532) | (1,361) | ||||||||||||||||||||||
Selling, general and administrative expenses | 54,363 | 60,436 | 230,400 | 231,169 | ||||||||||||||||||||||
Total Costs and Expenses | 497,061 | 475,734 | 1,811,724 | 1,792,116 | ||||||||||||||||||||||
Equity in Income of Investees | 7,301 | 7,905 | 33,498 | 27,152 | ||||||||||||||||||||||
Operating Income | 102,215 | 89,081 | 345,848 | 358,552 | ||||||||||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||||
Interest income | 47 | 65 | 416 | 518 | ||||||||||||||||||||||
Interest expense | (7,033) | (7,481) | (35,758) | (31,014) | ||||||||||||||||||||||
Other – net | 51,891 | 6,097 | 85,207 | 34,116 | ||||||||||||||||||||||
Total Other Income (Expense) | 44,905 | (1,319) | 49,865 | 3,620 | ||||||||||||||||||||||
Income before Provision for Income Taxes | 147,120 | 87,762 | 395,713 | 362,172 | ||||||||||||||||||||||
Provision for Income Taxes | 30,214 | 21,777 | 89,425 | 82,976 | ||||||||||||||||||||||
Net Income | $ | 116,906 | $ | 65,985 | $ | 306,288 | $ | 279,196 | ||||||||||||||||||
Net Income Attributable to Noncontrolling Interest | (45) | (243) | (417) | (526) | ||||||||||||||||||||||
Net Income Attributable to BWX Technologies, Inc. | $ | 116,861 | $ | 65,742 | $ | 305,871 | $ | 278,670 | ||||||||||||||||||
Earnings per Common Share: | ||||||||||||||||||||||||||
Basic: | ||||||||||||||||||||||||||
| Net Income Attributable to BWX Technologies, Inc. | $ | 1.27 | $ | 0.69 | $ | 3.24 | $ | 2.92 | ||||||||||||||||||
Diluted: | ||||||||||||||||||||||||||
| Net Income Attributable to BWX Technologies, Inc. | $ | 1.26 | $ | 0.69 | $ | 3.24 | $ | 2.91 | ||||||||||||||||||
| Shares used in the computation of earnings per share: | ||||||||||||||||||||||||||
Basic | 92,179,661 | 95,475,788 | 94,278,894 | 95,457,193 | ||||||||||||||||||||||
Diluted | 92,501,653 | 95,785,349 | 94,518,422 | 95,726,497 | ||||||||||||||||||||||
BWX TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Year Ended December 31, | ||||||||||||||
| 2021 | 2020 | |||||||||||||
| (In thousands) | ||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||
| Net Income | $ | 306,288 | $ | 279,196 | ||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 69,080 | 60,674 | ||||||||||||
| Income of investees, net of dividends | (13,023) | (2,147) | ||||||||||||
| Provision for deferred taxes | 40,091 | 7,890 | ||||||||||||
| Recognition of (gains) losses for pension and postretirement plans | (36,647) | 9,548 | ||||||||||||
| Stock-based compensation expense | 18,613 | 16,844 | ||||||||||||
| Premium for early redemption of senior notes | 10,752 | — | ||||||||||||
| Recognition of debt issuance costs from former debt instruments | 4,212 | 665 | ||||||||||||
| Other, net | 1,401 | (1,457) | ||||||||||||
| Changes in assets and liabilities, net of effects from acquisitions: | ||||||||||||||
| Accounts receivable | 84,006 | (98,302) | ||||||||||||
| Accounts payable | 28,795 | (1,241) | ||||||||||||
| Retainages | 3,875 | (8,578) | ||||||||||||
| Contracts in progress and advance billings on contracts | (67,137) | (53,242) | ||||||||||||
| Income taxes | 4,116 | 1,157 | ||||||||||||
| Accrued and other current liabilities | (1,991) | 6,843 | ||||||||||||
| Pension liabilities, accrued postretirement benefit obligations and employee benefits | (69,424) | (29,311) | ||||||||||||
| Other, net | 3,019 | 7,903 | ||||||||||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 386,026 | 196,442 | ||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||
| Purchases of property, plant and equipment | (311,052) | (255,027) | ||||||||||||
| Acquisition of businesses | — | (15,905) | ||||||||||||
| Purchases of securities | (4,739) | (4,232) | ||||||||||||
| Sales and maturities of securities | 5,553 | 6,360 | ||||||||||||
| Other, net | 5,585 | 3,485 | ||||||||||||
| NET CASH USED IN INVESTING ACTIVITIES | (304,653) | (265,319) | ||||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||
| Borrowings of long-term debt | 1,324,300 | 844,500 | ||||||||||||
| Repayments of long-term debt | (999,300) | (794,676) | ||||||||||||
| Premium for early redemption of senior notes | (10,752) | — | ||||||||||||
| Payment of debt issuance costs | (4,838) | (6,803) | ||||||||||||
| Borrowings and repayments of bank overdraft | (88,694) | 88,694 | ||||||||||||
| Repurchases of common stock | (225,786) | (21,960) | ||||||||||||
| Dividends paid to common shareholders | (79,668) | (72,940) | ||||||||||||
| Exercises of stock options | 2,033 | 2,812 | ||||||||||||
| Cash paid for shares withheld to satisfy employee taxes | (5,042) | (5,249) | ||||||||||||
| Other, net | (2,389) | (9,332) | ||||||||||||
| NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (90,136) | 25,046 | ||||||||||||
| EFFECTS OF EXCHANGE RATE CHANGES ON CASH | 240 | (271) | ||||||||||||
| TOTAL (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS | (8,523) | (44,102) | ||||||||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 48,298 | 92,400 | ||||||||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 39,775 | $ | 48,298 | ||||||||||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||||||||
| Cash paid during the period for: | ||||||||||||||
| Interest | $ | 50,840 | $ | 38,267 | ||||||||||
| Income taxes (net of refunds) | $ | 44,949 | $ | 73,589 | ||||||||||
| SCHEDULE OF NON-CASH INVESTING ACTIVITY: | ||||||||||||||
| Accrued capital expenditures included in accounts payable | $ | 27,495 | $ | 51,492 | ||||||||||
BWX TECHNOLOGIES, INC.
BUSINESS SEGMENT INFORMATION
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
| (Unaudited) (In thousands) | ||||||||||||||||||||||||||
| REVENUES: | ||||||||||||||||||||||||||
| Nuclear Operations Group | $ | 452,570 | $ | 425,728 | $ | 1,622,598 | $ | 1,646,257 | ||||||||||||||||||
| Nuclear Power Group | 114,460 | 107,265 | 407,082 | 371,269 | ||||||||||||||||||||||
| Nuclear Services Group | 32,182 | 32,693 | 123,538 | 136,493 | ||||||||||||||||||||||
| Eliminations | (7,237) | (8,776) | (29,144) | (30,503) | ||||||||||||||||||||||
| TOTAL | $ | 591,975 | $ | 556,910 | $ | 2,124,074 | $ | 2,123,516 | ||||||||||||||||||
| SEGMENT INCOME: | ||||||||||||||||||||||||||
| Nuclear Operations Group | $ | 85,756 | $ | 81,258 | $ | 308,645 | $ | 326,049 | ||||||||||||||||||
| Nuclear Power Group | 22,413 | 13,218 | 52,548 | 51,989 | ||||||||||||||||||||||
| Nuclear Services Group | 6,121 | 8,357 | 27,932 | 26,436 | ||||||||||||||||||||||
| Other | (5,015) | (5,636) | (24,333) | (22,309) | ||||||||||||||||||||||
| SUBTOTAL | 109,275 | 97,197 | 364,792 | 382,165 | ||||||||||||||||||||||
| Unallocated Corporate | (7,060) | (8,116) | (18,944) | (23,613) | ||||||||||||||||||||||
| TOTAL | $ | 102,215 | $ | 89,081 | $ | 345,848 | $ | 358,552 | ||||||||||||||||||
| DEPRECIATION AND AMORTIZATION: | ||||||||||||||||||||||||||
| Nuclear Operations Group | $ | 11,535 | $ | 8,258 | $ | 40,514 | $ | 33,174 | ||||||||||||||||||
| Nuclear Power Group | 4,918 | 4,736 | 19,774 | 18,325 | ||||||||||||||||||||||
| Nuclear Services Group | 274 | 212 | 1,005 | 1,685 | ||||||||||||||||||||||
| Other | 270 | 295 | 1,076 | 645 | ||||||||||||||||||||||
| Corporate | 1,607 | 1,715 | 6,711 | 6,845 | ||||||||||||||||||||||
| TOTAL | $ | 18,604 | $ | 15,216 | $ | 69,080 | $ | 60,674 | ||||||||||||||||||
| CAPITAL EXPENDITURES: | ||||||||||||||||||||||||||
| Nuclear Operations Group | $ | 36,433 | $ | 41,954 | $ | 143,945 | $ | 135,637 | ||||||||||||||||||
| Nuclear Power Group | 35,130 | 30,199 | 153,571 | 106,596 | ||||||||||||||||||||||
| Nuclear Services Group | 445 | 251 | 2,940 | 1,326 | ||||||||||||||||||||||
| Other | — | 17 | 166 | 252 | ||||||||||||||||||||||
| Corporate | 2,388 | 2,634 | 10,430 | 11,216 | ||||||||||||||||||||||
| TOTAL | $ | 74,396 | $ | 75,055 | $ | 311,052 | $ | 255,027 | ||||||||||||||||||
BWX TECHNOLOGIES, INC.
BUSINESS SEGMENT INFORMATION
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
| (Unaudited) (In thousands) | ||||||||||||||||||||||||||
| BACKLOG: | ||||||||||||||||||||||||||
| Nuclear Operations Group | $ | 4,510,928 | $ | 3,659,126 | $ | 4,510,928 | $ | 3,659,126 | ||||||||||||||||||
| Nuclear Power Group | 643,866 | 725,702 | 643,866 | 725,702 | ||||||||||||||||||||||
| Nuclear Services Group | 21,242 | 21,000 | 21,242 | 21,000 | ||||||||||||||||||||||
| TOTAL | $ | 5,176,036 | $ | 4,405,828 | $ | 5,176,036 | $ | 4,405,828 | ||||||||||||||||||
| BOOKINGS: | ||||||||||||||||||||||||||
| Nuclear Operations Group | $ | 1,178,575 | $ | 473,395 | $ | 2,468,998 | $ | 786,821 | ||||||||||||||||||
| Nuclear Power Group | 70,387 | 106,662 | 324,468 | 239,104 | ||||||||||||||||||||||
| Nuclear Services Group | 17,952 | 17,667 | 100,815 | 103,023 | ||||||||||||||||||||||
| TOTAL | $ | 1,266,914 | $ | 597,724 | $ | 2,894,281 | $ | 1,128,948 | ||||||||||||||||||
EXHIBIT 2
BWX TECHNOLOGIES, INC.
NEW BUSINESS SEGMENT INFORMATION
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
| 3/31/2021 | 6/30/2021 | 9/30/2021 | 12/31/2021 | 2021 | 2020 | |||||||||||||||||||||||||||||||||
| (Unaudited) (In thousands) | ||||||||||||||||||||||||||||||||||||||
| REVENUES: | ||||||||||||||||||||||||||||||||||||||
| Government Operations | $ | 423,275 | $ | 405,497 | $ | 417,139 | $ | 479,186 | $ | 1,725,097 | $ | 1,763,127 | ||||||||||||||||||||||||||
| Commercial Operations | 107,398 | 101,842 | 83,382 | 114,460 | 407,082 | 371,269 | ||||||||||||||||||||||||||||||||
| Eliminations | (2,400) | (2,240) | (1,794) | (1,671) | (8,105) | (10,880) | ||||||||||||||||||||||||||||||||
| TOTAL | $ | 528,273 | $ | 505,099 | $ | 498,727 | $ | 591,975 | $ | 2,124,074 | $ | 2,123,516 | ||||||||||||||||||||||||||
| SEGMENT INCOME: | ||||||||||||||||||||||||||||||||||||||
| Government Operations | $ | 78,245 | $ | 72,871 | $ | 87,542 | $ | 90,891 | $ | 329,549 | $ | 345,250 | ||||||||||||||||||||||||||
| Commercial Operations | 6,294 | 5,640 | 4,925 | 18,384 | 35,243 | 36,915 | ||||||||||||||||||||||||||||||||
| SUBTOTAL | 84,539 | 78,511 | 92,467 | 109,275 | 364,792 | 382,165 | ||||||||||||||||||||||||||||||||
| Unallocated Corporate | (2,125) | (4,760) | (4,999) | (7,060) | (18,944) | (23,613) | ||||||||||||||||||||||||||||||||
| TOTAL | $ | 82,414 | $ | 73,751 | $ | 87,468 | $ | 102,215 | $ | 345,848 | $ | 358,552 | ||||||||||||||||||||||||||
| NON-GAAP SEGMENT INCOME: | ||||||||||||||||||||||||||||||||||||||
| Government Operations | $ | 78,245 | $ | 72,871 | $ | 87,707 | $ | 90,891 | $ | 329,714 | $ | 346,206 | ||||||||||||||||||||||||||
| Commercial Operations | 6,294 | 5,640 | 5,244 | 18,974 | 36,152 | 39,168 | ||||||||||||||||||||||||||||||||
| SUBTOTAL | 84,539 | 78,511 | 92,951 | 109,865 | 365,866 | 385,374 | ||||||||||||||||||||||||||||||||
| Unallocated Corporate | (2,125) | (4,760) | (4,719) | (5,265) | (16,869) | (19,046) | ||||||||||||||||||||||||||||||||
| TOTAL | $ | 82,414 | $ | 73,751 | $ | 88,232 | $ | 104,600 | $ | 348,997 | $ | 366,328 | ||||||||||||||||||||||||||
| DEPRECIATION AND AMORTIZATION: | ||||||||||||||||||||||||||||||||||||||
| Government Operations | $ | 9,171 | $ | 10,334 | $ | 10,928 | $ | 12,052 | $ | 42,485 | $ | 35,398 | ||||||||||||||||||||||||||
| Commercial Operations | 4,917 | 5,037 | 4,985 | 4,945 | 19,884 | 18,431 | ||||||||||||||||||||||||||||||||
| Corporate | 1,809 | 1,724 | 1,571 | 1,607 | 6,711 | 6,845 | ||||||||||||||||||||||||||||||||
| TOTAL | $ | 15,897 | $ | 17,095 | $ | 17,484 | $ | 18,604 | $ | 69,080 | $ | 60,674 | ||||||||||||||||||||||||||
| CAPITAL EXPENDITURES: | ||||||||||||||||||||||||||||||||||||||
| Government Operations | $ | 45,945 | $ | 30,073 | $ | 34,155 | $ | 36,878 | $ | 147,051 | $ | 137,197 | ||||||||||||||||||||||||||
| Commercial Operations | 53,531 | 34,364 | 30,546 | 35,130 | 153,571 | 106,614 | ||||||||||||||||||||||||||||||||
| Corporate | 2,456 | 3,801 | 1,785 | 2,388 | 10,430 | 11,216 | ||||||||||||||||||||||||||||||||
| TOTAL | $ | 101,932 | $ | 68,238 | $ | 66,486 | $ | 74,396 | $ | 311,052 | $ | 255,027 | ||||||||||||||||||||||||||
| BACKLOG: | ||||||||||||||||||||||||||||||||||||||
| Government Operations | $ | 4,495,617 | $ | 4,174,767 | $ | 3,813,289 | $ | 4,532,170 | $ | 4,532,170 | $ | 3,680,126 | ||||||||||||||||||||||||||
| Commercial Operations | 697,169 | 674,287 | 687,806 | 643,866 | 643,866 | 725,702 | ||||||||||||||||||||||||||||||||
| TOTAL | $ | 5,192,786 | $ | 4,849,054 | $ | 4,501,095 | $ | 5,176,036 | $ | 5,176,036 | $ | 4,405,828 | ||||||||||||||||||||||||||
| BOOKINGS: | ||||||||||||||||||||||||||||||||||||||
| Government Operations | $ | 1,236,546 | $ | 82,751 | $ | 53,989 | $ | 1,196,527 | $ | 2,569,813 | $ | 889,844 | ||||||||||||||||||||||||||
| Commercial Operations | 78,685 | 78,616 | 96,780 | 70,387 | 324,468 | 239,104 | ||||||||||||||||||||||||||||||||
| TOTAL | $ | 1,315,231 | $ | 161,367 | $ | 150,769 | $ | 1,266,914 | $ | 2,894,281 | $ | 1,128,948 | ||||||||||||||||||||||||||