bwxt-20230223
false000148695700014869572023-02-232023-02-23

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 23, 2023
BWX TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)
 _____________________________________________________________________________
Delaware 001-34658 80-0558025
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
800 Main Street, 4th Floor
Lynchburg,Virginia24504
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (980365-4300
 ____________________________________________________________________________
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)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueBWXTNew York Stock Exchange
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 23, 2023, we issued a press release announcing our financial results for the fourth quarter ended December 31, 2022.  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
104Cover 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/ Mike T. Fitzgerald
 Mike T. Fitzgerald
 Vice President, Finance and Chief Accounting Officer

February 23, 2023

Document
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BWX Technologies Reports Fourth-Quarter and Full-Year 2022 Results, Initiates 2023 Guidance and Increases Quarterly Cash Dividend
4Q22 diluted GAAP EPS of $0.47, diluted non-GAAP(1) EPS of $0.93, on revenue of $624.2 million
4Q22 net income of $43.0 million, adjusted EBITDA(1) of $130.1 million
2022 diluted GAAP EPS of $2.60, diluted non-GAAP(1) EPS of $3.13, on revenue of $2.23 billion
2022 net income of $238.6 million, adjusted EBITDA(1) of $439.4 million
2022 operating cash flow of $244.7 million, free cash flow(1) of $46.4 million
Initiates 2023 guidance in-line with prior outlook commentary
Increases quarterly cash dividend to $0.23 per share
Lynchburg, VA - Feb. 23, 2023 - BWX Technologies, Inc. (NYSE: BWXT) ("BWXT", "we", "us" or the "Company") reported fourth-quarter and full-year 2022 results. A reconciliation of non-GAAP results are detailed in Exhibit 1.
“As we expected, BWXT closed out 2022 with solid fourth quarter financial results," said Rex D. Geveden, president and chief executive officer. “We benefited from our balanced and growing portfolio this year as strong performance in Commercial Operations largely offset headwinds in the Government Operations segment owing to a tough labor market. Operating performance outpaced macroeconomic and accounting headwinds, including lower pension income and increasing interest rates, resulting in high-single digit underlying EBITDA and positive earnings per share growth for the year.”
“We continue to face labor pressures and expect that to detract from our full potential in 2023 because our growth will likely be muted by attrition and the availability of qualified workers. Despite these macroeconomic headwinds, I am energized about the expected future trajectory of BWXT because we see increasing demand in every market in which we participate. We see near-term opportunity in space-based microreactors, DOE services, commercial small modular reactors, nuclear medicine, and potential new demand related to the AUKUS trilateral security agreement. Accordingly, we expect 2023 to shape up as another strategic milestone year as we continue to drive top-line gains, accelerate EBITDA growth, and inflect free cash flow,” said Geveden.

(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 December 31,Year Ended December 31,
20222021$ Change% Change20222021$ Change% Change
(Unaudited)
(In millions, except per share amounts)
Revenue
Government Operations$517.6 $479.2 $38.5 8%$1,808.5 $1,725.1 $83.4 5%
Commercial Operations$107.1 $114.5 $(7.4)(6)%$427.4 $407.1 $20.3 5%
Consolidated$624.2 $592.0 $32.2 5%$2,232.8 $2,124.1 $108.8 5%
Operating Income
Government Operations$102.8 $90.9 $11.9 13%$336.5 $329.5 $7.0 2%
Commercial Operations$3.7 $18.4 $(14.6)(80)%$27.4 $35.2 $(7.8)(22)%
Unallocated Corporate (Expense)$(4.6)$(7.1)$2.4 NM$(15.3)$(18.9)$3.6 NM
Consolidated$101.9 $102.2 $(0.3)—%$348.6 $345.8 $2.7 1%
Consolidated non-GAAP(1)
$111.1 $104.6 $6.5 6%$365.6 $349.0 $16.6 5%
EPS (Diluted)
GAAP$0.47 $1.26 $(0.79)(63)%$2.60 $3.24 $(0.64)(20)%
Non-GAAP(1)
$0.93 $0.95 $(0.02)(2)%$3.13 $3.06 $0.07 2%
Net Income
GAAP$43.0 $116.9 $(73.9)(63)%$238.6 $306.3 $(67.7)(22)%
Non-GAAP(1)
$85.7 $88.2 $(2.5)(3)%$287.5 $289.6 $(2.2)(1)%
Adjusted EBITDA(1)
Government Operations$115.8 $102.9 $12.8 12%$386.5 $372.2 $14.3 4%
Commercial Operations$13.6 $23.9 $(10.3)(43)%$53.9 $56.0 $(2.1)(4)%
Corporate$0.7 $(3.7)$4.3 NM$(1.1)$(10.2)$9.1 NM
Consolidated$130.1 $123.2 $6.9 6%$439.4 $418.1 $21.3 5%
Cash Flows
Operating Cash Flow(2)
$107.7 $160.4 $(52.8)(33)%$244.7 $386.0 $(141.3)(37)%
Capital Expenditures(2)
$63.7 $74.4 $(10.7)(14)%$198.3 $311.1 $(112.7)(36)%
Free Cash Flow(1)
$43.9 $86.1 $(42.1)(49)%$46.4 $75.0 $(28.6)(38)%
Share Repurchases(2)
$— $40.0 $(40.0)NM$20.0 $225.8 $(205.8)(91)%
Dividends Paid(2)
$20.2 $19.4 $0.8 4%$81.1 $79.7 $1.4 2%
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
Revenue
The fourth quarter consolidated revenue increase resulted from higher revenue in Government Operations partially offset by lower revenue in Commercial Operations. The Government Operations increase was driven by higher microreactor volume, uranium processing and the DCL/Cunico acquisition, partially offset by lower long-lead material production. The Commercial Operations decrease resulted from lower commercial nuclear power, primarily fuel volume, partially offset by increased medical sales.
The full year consolidated revenue increase was driven by growth in both operating segments. The Government Operations increase was driven by higher microreactor volume, naval reactors, uranium processing, long-lead material production and the DCL/Cunico acquisition, partially offset by lower missile tube production. The Commercial Operations increase resulted from higher commercial nuclear power, primarily field services, as well as higher medical sales.
Operating Income and Adjusted EBITDA(1)
Fourth quarter consolidated operating income was about flat compared with the prior-year period, as higher operating income in Government Operations and lower unallocated corporate expense was offset by lower operating income in Commercial Operations. The Government Operations increase resulted from higher
(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.


income in joint venture projects, microreactors and more favorable contract adjustments on missile tubes, partially offset by decreased labor and cost efficiencies that resulted in fewer favorable contract adjustments, lower recoverable CAS pension income, and higher depreciation and acquisition amortization. The Commercial Operations decrease was driven by lower commercial nuclear power, primarily fuel volume. Lower unallocated corporate expense was driven by decreases in healthcare costs and stock-based compensation.
The fourth quarter total adjusted EBITDA(1) increase was driven primarily by the reasons noted above as higher Government Operations adjusted EBITDA(1) and lower unallocated corporate expense was partially offset by lower Commercial Operations adjusted EBITDA(1).
The 2022 consolidated operating income increase was driven by higher operating income in Government Operations and lower unallocated corporate expense, which was offset by lower operating income in Commercial Operations. The Government Operations increase was driven by higher income from joint venture projects, uranium processing, microreactors and long-lead material production, partially offset by decreased labor and cost efficiencies that resulted in fewer favorable contract adjustments, lower recoverable CAS pension income, and higher depreciation and acquisition amortization. The Commercial Operations decrease was driven by a less favorable business mix and the absence of CEWS COVID-19 wage subsidy. Lower unallocated corporate expense was driven by a decrease in healthcare costs and lower compensation related expense inclusive of stock-based compensation.
The 2022 total adjusted EBITDA(1) increase was driven primarily by the reasons noted above as higher Government Operations adjusted EBITDA(1) and lower unallocated corporate expense was partially offset by lower Commercial Operations adjusted EBITDA(1).
EPS
The fourth quarter GAAP EPS decrease was driven primarily by the absence of gains associated with the mark-to-market of the pension that occurred in the fourth quarter 2021, higher interest expense, a higher effective tax rate and lower FAS/CAS pension income, partially offset by better operational performance and a lower share count. The fourth quarter non-GAAP EPS decrease was driven by the items above excluding mark-to-market pension gains and losses and restructuring and other costs and other one-time items.
The 2022 GAAP EPS decrease was driven primarily by the absence of gains associated with the mark-to-market of the pension that occurred in the fourth quarter 2021, higher interest expense, a higher effective tax rate and lower FAS/CAS pension income, partially offset by better operational performance and a lower share count. The 2022 non-GAAP EPS(1) increase was driven by the items above excluding mark-to-market pension gains and losses and restructuring costs and other one-time items.
Cash Flows
The fourth quarter operating cash flow decrease was driven by increases in working capital, primarily accounts payable. Lower fourth quarter capital expenditures resulted from lower spending on the two major growth capital campaigns for U.S. naval nuclear reactors and medical radioisotopes that are nearing completion, partially offset by an increase in capital expenditures for microreactors.
The 2022 operating cash flow decrease was driven by the absence of large payment that occurred in 2021, higher cash taxes for R&D amortization and an increase in working capital. Lower 2022 capital expenditures were driven by less spending on two major growth capital campaigns for U.S. naval nuclear reactors and medical radioisotopes that are nearing completion.
(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.


Dividend
BWXT paid $20.2 million, or $0.22 per common share, to shareholders in the fourth-quarter 2022 and paid $81.1 million to shareholders for the full-year 2022. On February 22, 2023, the BWXT Board of Directors declared an increase of $0.01 to the quarterly cash dividend. A $0.23 cash dividend per common share will be payable on March 28, 2023, to shareholders of record on March 10, 2023.
2023 Guidance
BWXT announced its expectations for fiscal year 2023 financial results, providing the following guidance:
(In millions, except per share amounts)Year EndedYear Ending
December 31, 2022December 31, 2023
ResultsGuidance
Revenue$2,233~$2,400
Adjusted EBITDA(1)
$439~$475
Adjusted Pre-tax Income(1)
$378~$350
Non-GAAP(1) Earnings Per Share
$3.13$2.80 - $3.00
Free Cash Flow(1)
$46~$200
Additional information can be found in the 2022 fourth quarter earnings call presentation on the BWXT investor relations website at www.bwxt.com/investors. The Company does not provide GAAP guidance because it is unable to reliably forecast most of the items that are excluded from GAAP to calculate non-GAAP results. These items could cause GAAP results to differ materially from non-GAAP results.
Conference Call to Discuss Fourth-Quarter and Full-Year 2022 Results
Date:            Thursday, February 23, 2023, at 5:00 p.m. EST
Live Webcast:    Investor Relations section of website at www.bwxt.com
Full Earnings Release Available on BWXT Website
A full version of this earnings release is available on our Investor Relations website at http://investors.bwxt.com/4Q2022-release
BWXT may use its website (www.bwxt.com) as a channel of distribution of material Company information. Financial and other important information regarding BWXT is routinely accessible through and posted on our website. In addition, you may elect to automatically receive e-mail alerts and other information about BWXT by enrolling through the “Email Alerts” section of our website at http://investors.bwxt.com.
Non-GAAP Measures
BWXT uses and makes reference to adjusted EBITDA, free cash flow and free cash flow conversion, which are not recognized measures under GAAP. BWXT is providing these non-GAAP measures to supplement the results provided in accordance with GAAP and it should not be considered superior to, or as a substitute for, the comparable GAAP measures. BWXT believes the non-GAAP measures provide meaningful insight and transparency into the Company’s operational performance and provides these measures to investors to help facilitate comparisons of operating results with prior periods and to assist them in understanding BWXT's ongoing operations. Definitions for the non-GAAP measures are provided below and reconciliations are detailed in Exhibit 1, except that reconciliations of forward-looking GAAP measures are not provided because the company is unable to reliably forecast most of the items that are excluded from GAAP to calculate non-GAAP results. Other companies may define these measures differently or may utilize different non-GAAP measures, thus impacting comparability.
(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.


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.
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 the expectations, timing and revenue of our strategic initiatives, such as medical radioisotopes, small modular reactor components and recent acquisitions; 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 2023 and beyond. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, our ability to execute contracts in backlog; 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 timing of technology development; 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, 2022. 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, Va. 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 7,000 employees, BWXT has 14 major operating sites in the U.S., Canada and the U.K. In addition, BWXT joint ventures provide management and operations at a dozen U.S. Department of Energy and NASA facilities. Follow us on Twitter at @BWXT and learn more at www.bwxt.com
Investor Contact:Media Contact:
Mark KratzJud Simmons
Vice President, Investor RelationsDirector, Media and Public Relations
980-365-4300Investors@bwxt.com434-522-6462hjsimmons@bwxt.com

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


EXHIBIT 1

BWX TECHNOLOGIES, INC.
RECONCILIATION OF NON-GAAP OPERATING INCOME AND EARNINGS PER SHARE(1)(2)(3)
(In millions, except per share amounts)
Three Months Ended December 31, 2022
 GAAPPension & OPEB MTM (Gain) / LossRestructuring CostsAcquisition-related CostsLoss on Asset DisposalNon-GAAP
 
Operating Income
$101.9 $— $2.6 $0.3 $6.2 $111.1 
Other Income (Expense)
(45.1)46.6 0.0 — — 1.6 
Income before Provision for Income Taxes56.8 46.6 2.7 0.3 6.2 112.6 
Provision for Income Taxes(13.8)(10.9)(0.6)(0.0)(1.6)(26.9)
Net Income
43.0 35.7 2.1 0.3 4.7 85.7 
Net Income Attributable to Noncontrolling Interest
(0.1)— — — — (0.1)
Net Income Attributable to BWXT
$43.0 $35.7 $2.1 $0.3 $4.7 $85.6 
Diluted Shares Outstanding
91.8 91.8 
Diluted Earnings per Common Share
$0.47 $0.39 $0.02 $0.00 $0.05 $0.93 
Effective Tax Rate
24.3%23.9%
Government Operations Operating Income$102.8 $— $— $0.3 $— $103.1 
Commercial Operations Operating Income$3.7 $— $(0.7)$— $6.2 $9.3 
Unallocated Corporate Operating Income$(4.6)$— $3.3 $0.0 $— $(1.3)
Three Months Ended December 31, 2021
GAAPPension & OPEB MTM (Gain) / LossRestructuring and Other CostsNon-GAAP
Operating Income
$102.2 $— $2.4 $104.6 
Other Income (Expense)
44.9 (39.6)— 5.3 
Income before Provision for Income Taxes147.1 (39.6)2.4 109.9 
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%
Government Operations Operating Income$90.9 $— $— $90.9 
Commercial Operations Operating Income$18.4 $— $0.6 $19.0 
Unallocated Corporate Operating Income$(7.1)$— $1.8 $(5.3)



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, 2022
 GAAPPension & OPEB MTM (Gain) / LossRestructuring CostsAcquisition-related CostsLoss on Asset DisposalNon-GAAP
 
Operating Income
$348.6 $— $8.2 $2.6 $6.2 $365.6 
Other Income (Expense)
(34.2)46.6 0.0 — — 12.4 
Income before Provision for Income Taxes314.4 46.6 8.2 2.6 6.2 378.0 
Provision for Income Taxes(75.8)(10.9)(1.9)(0.4)(1.6)(90.5)
Net Income
238.6 35.7 6.3 2.2 4.7 287.5 
Net Income Attributable to Noncontrolling Interest
(0.4)— — — — (0.4)
Net Income Attributable to BWXT
$238.2 $35.7 $6.3 $2.2 $4.7 $287.1 
Diluted Shares Outstanding
91.7 91.7 
Diluted Earnings per Common Share
$2.60 $0.39 $0.07 $0.02 $0.05 $3.13 
Effective Tax Rate
24.1%23.9%
Government Operations Operating Income$336.5 $— $1.2 $0.8 $— $338.6 
Commercial Operations Operating Income$27.4 $— $1.5 $— $6.2 $35.1 
Unallocated Corporate Operating Income$(15.3)$— $5.4 $1.8 $— $(8.1)
Year Ended December 31, 2021
GAAPPension & OPEB MTM (Gain) / LossRestructuring and Other CostsCosts Associated With Early Bond RedemptionNon-GAAP
Operating Income
$345.8 $— $3.1 $— $349.0 
Other Income (Expense)
49.9 (39.6)— 15.0 25.3 
Income before Provision for Income Taxes395.7 (39.6)3.1 15.0 374.3 
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%
Government Operations Operating Income$329.5 $— $0.2 $— $329.7 
Commercial Operations Operating Income$35.2 $— $0.9 $— $36.2 
Unallocated Corporate Operating Income$(18.9)$— $2.1 $— $(16.9)




EXHIBIT 1 (continued)
RECONCILIATION OF CONSOLIDATED ADJUSTED EBITDA(1)(2)(3)
(In millions)
Three Months Ended December 31, 2022
 GAAPPension & OPEB MTM (Gain) / LossRestructuring CostsAcquisition-related CostsLoss on Asset DisposalNon-GAAP
 
Net Income$43.0 $35.7 $2.1 $0.3 $4.7 $85.7 
Provision for Income Taxes13.8 10.9 0.6 0.0 1.6 26.9 
Other – net33.9 (46.6)— — — (12.6)
Interest Expense11.4 — (0.0)— — 11.4 
Interest Income(0.3)— — — — (0.3)
Depreciation & Amortization19.0 — — — — 19.0 
Adjusted EBITDA$120.9 $— $2.6 $0.3 $6.2 $130.1 
Three Months Ended December 31, 2021
 GAAPPension & OPEB MTM (Gain) / LossRestructuring and Other CostsNon-GAAP
 
Net Income$116.9 $(30.5)$1.8 $88.2 
Provision for Income Taxes30.2 (9.1)0.6 21.7 
Other – net(51.9)39.6 — (12.3)
Interest Expense7.0 — — 7.0 
Interest Income(0.0)— — (0.0)
Depreciation & Amortization18.6 — — 18.6 
Adjusted EBITDA$120.8 $— $2.4 $123.2 
Year Ended December 31, 2022
 GAAPPension & OPEB MTM (Gain) / LossRestructuring CostsAcquisition-related CostsLoss on Asset DisposalNon-GAAP
 
Net Income$238.6 $35.7 $6.3 $2.2 $4.7 $287.5 
Provision for Income Taxes75.8 10.9 1.9 0.4 1.6 90.5 
Other – net(1.5)(46.6)— — — (48.0)
Interest Expense36.4 — (0.0)— — 36.4 
Interest Income(0.8)— — — — (0.8)
Depreciation & Amortization73.8 — — — — 73.8 
Adjusted EBITDA$422.4 $— $8.2 $2.6 $6.2 $439.4 
Year Ended December 31, 2021
 GAAPPension & OPEB MTM (Gain) / LossRestructuring and Other CostsCosts Associated With Early Bond RedemptionNon-GAAP
 
Net Income$306.3 $(30.5)$2.4 $11.5 $289.6 
Provision for Income Taxes89.4 (9.1)0.8 3.5 84.6 
Other – net(85.2)39.6 — (10.8)(56.4)
Interest Expense35.8 — — (4.2)31.5 
Interest Income(0.4)— — — (0.4)
Depreciation & Amortization69.1 — — — 69.1 
Adjusted EBITDA$414.9 $— $3.1 $— $418.1 



EXHIBIT 1 (continued)
RECONCILIATION OF REPORTING SEGMENT ADJUSTED EBITDA(1)(2)(3)
(In millions)
Three Months Ended December 31, 2022
 Operating Income (GAAP)
Non-GAAP Adjustments(4)
Depreciation & AmortizationAdjusted EBITDA
 
Government Operations$102.8 $0.3 $12.7 $115.8 
Commercial Operations$3.7 $5.6 $4.3 $13.6 
Three Months Ended December 31, 2021
 Operating Income (GAAP)
Non-GAAP Adjustments(4)
Depreciation & AmortizationAdjusted EBITDA
 
Government Operations$90.9 $— $12.1 $102.9 
Commercial Operations$18.4 $0.6 $4.9 $23.9 
Year Ended December 31, 2022
 Operating Income (GAAP)
Non-GAAP Adjustments(4)
Depreciation & AmortizationAdjusted EBITDA
 
Government Operations$336.5 $2.1 $48.0 $386.5 
Commercial Operations$27.4 $7.7 $18.8 $53.9 
Year Ended December 31, 2021
 Operating Income (GAAP)
Non-GAAP Adjustments(4)
Depreciation & AmortizationAdjusted EBITDA
 
Government Operations$329.5 $0.2 $42.5 $372.2 
Commercial Operations$35.2 $0.9 $19.9 $56.0 
RECONCILIATION OF CONSOLIDATED FREE CASH FLOW(1)(2)(3)
(In millions)
Three Months Ended December 31,
 20222021
Net Cash Provided By Operating Activities$107.7 $160.4 
Purchases of Property, Plant and Equipment(63.7)(74.4)
Free Cash Flow$43.9 $86.1 
Year Ended December 31,
 20222021
Net Cash Provided By Operating Activities$244.7 $386.0 
Purchases of Property, Plant and Equipment(198.3)(311.1)
Free Cash Flow$46.4 $75.0 
(1)
Tables may not foot due to rounding.
(2)BWXT is providing non-GAAP information regarding certain of its historical results and guidance on future earnings per share to supplement the results provided in accordance with GAAP and it should not be considered superior to, or as a substitute for, the comparable GAAP measures. BWXT believes the non-GAAP measures provide meaningful insight and transparency into the Company’s operational performance and provides these measures to investors to help facilitate comparisons of operating results with prior periods and to assist them in understanding BWXT's ongoing operations.
(3)BWXT has not included a reconciliation of provided non-GAAP guidance to the comparable GAAP measures due to the difficulty of estimating any mark-to-market adjustments for pension and post-retirement benefits, which are determined at the end of the year.
(4)For Non-GAAP adjustment details, see reconciliation of non-GAAP operating income and earnings per share.



BWX TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended December 31,Year Ended December 31,
2022202120222021
(Unaudited)
(In thousands, except share and per share amounts)
Revenues
$624,177 $591,975 $2,232,834 $2,124,074 
Costs and Expenses:
Cost of operations
463,791 443,644 1,680,899 1,573,797 
Research and development costs
2,545 1,568 9,535 11,059 
Losses (gains) on asset disposals and impairments, net
5,742 (2,514)5,520 (3,532)
Selling, general and administrative expenses
61,308 54,363 234,282 230,400 
Total Costs and Expenses
533,386 497,061 1,930,236 1,811,724 
Equity in Income of Investees
11,092 7,301 45,973 33,498 
Operating Income
101,883 102,215 348,571 345,848 
Other Income (Expense):
Interest income
295 47 758 416 
Interest expense
(11,427)(7,033)(36,410)(35,758)
Other – net
(33,943)51,891 1,458 85,207 
Total Other Income (Expense)
(45,075)44,905 (34,194)49,865 
Income before Provision for Income Taxes
56,808 147,120 314,377 395,713 
Provision for Income Taxes
13,780 30,214 75,757 89,425 
Net Income
$43,028 $116,906 $238,620 $306,288 
Net Income Attributable to Noncontrolling Interest
(63)(45)(429)(417)
Net Income Attributable to BWX Technologies, Inc.
$42,965 $116,861 $238,191 $305,871 
Earnings per Common Share:
Basic:
Net Income Attributable to BWX Technologies, Inc.$0.47 $1.27 $2.60 $3.24 
Diluted:
Net Income Attributable to BWX Technologies, Inc.$0.47 $1.26 $2.60 $3.24 
Shares used in the computation of earnings per share:
Basic
91,422,303 92,179,661 91,447,088 94,278,894 
Diluted
91,812,291 92,501,653 91,702,111 94,518,422 




BWX TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
20222021
CASH FLOWS FROM OPERATING ACTIVITIES:(In thousands)
Net Income$238,620 $306,288 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization73,842 69,080 
Income of investees, net of dividends(3,461)(13,023)
Provision for deferred taxes5,515 40,091 
Recognition of (gains) losses for pension and postretirement plans49,868 (36,647)
Stock-based compensation expense14,127 18,613 
Premium for early redemption of senior notes— 10,752 
Recognition of debt issuance costs from former debt instruments46 4,212 
Other, net7,649 1,401 
Changes in assets and liabilities, net of effects from acquisitions:
Accounts receivable15,167 84,006 
Accounts payable(40,495)28,795 
Retainages4,189 3,875 
Contracts in progress and advance billings on contracts(38,615)(67,137)
Income taxes(764)4,116 
Accrued and other current liabilities(18,948)(1,991)
Pension liabilities, accrued postretirement benefit obligations and employee benefits(68,535)(69,424)
Other, net6,499 3,019 
NET CASH PROVIDED BY OPERATING ACTIVITIES244,704 386,026 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment(198,312)(311,052)
Acquisition of businesses(47,328)— 
Purchases of securities(3,803)(4,739)
Sales and maturities of securities3,813 5,553 
Investments, net of return of capital, in equity method investees(11,450)— 
Other, net844 5,585 
NET CASH USED IN INVESTING ACTIVITIES(256,236)(304,653)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings of long-term debt978,200 1,324,300 
Repayments of long-term debt(878,200)(999,300)
Premium for early redemption of senior notes— (10,752)
Payment of debt issuance costs(2,405)(4,838)
Borrowings and repayments of bank overdraft— (88,694)
Repurchases of common stock(20,000)(225,786)
Dividends paid to common shareholders(81,074)(79,668)
Cash paid for shares withheld to satisfy employee taxes(6,588)(5,042)
Settlements of forward contracts, net24,013 (2,030)
Other, net1,674 
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES13,952 (90,136)
EFFECTS OF EXCHANGE RATE CHANGES ON CASH(1,205)240 
TOTAL INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS1,215 (8,523)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD39,775 48,298 
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT END OF PERIOD$40,990 $39,775 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest$51,343 $50,840 
Income taxes (net of refunds)$71,755 $44,949 
SCHEDULE OF NON-CASH INVESTING ACTIVITY:
Accrued capital expenditures included in accounts payable$9,588 $27,495 



BWX TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
ASSETS
December 31,
20222021
(In thousands)
Current Assets:
Cash and cash equivalents$35,244 $33,891 
Restricted cash and cash equivalents2,928 2,896 
Investments3,804 3,811 
Accounts receivable – trade, net60,782 70,663 
Accounts receivable – other26,894 16,651 
Retainages48,566 51,507 
Contracts in progress538,365 546,595 
Other current assets55,036 47,718 
Total Current Assets771,619 773,732 
Property, Plant and Equipment, Net1,134,897 1,045,640 
Investments8,097 9,558 
Goodwill293,165 285,502 
Deferred Income Taxes20,585 21,394 
Investments in Unconsolidated Affiliates100,198 85,284 
Intangible Assets193,612 185,551 
Other Assets96,766 94,719 
TOTAL$2,618,939 $2,501,380 




BWX TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS’ EQUITY
December 31,
20222021
(In thousands, except share
and per share amounts)
Current Liabilities:
Current maturities of long-term debt$6,250 $— 
Accounts payable127,112 189,842 
Accrued employee benefits61,079 71,835 
Accrued liabilities – other84,693 86,319 
Advance billings on contracts88,726 111,619 
Total Current Liabilities367,860 459,615 
Long-Term Debt
1,282,624 1,189,304 
Accumulated Postretirement Benefit Obligation
18,157 24,333 
Environmental Liabilities
90,989 92,642 
Pension Liability
57,832 59,388 
Other Liabilities
53,122 38,863 
Commitments and Contingencies
Stockholders' Equity:
Common stock, par value $0.01 per share, authorized 325,000,000 shares; issued 127,671,756 and 127,311,985 shares at December 31, 2022 and 2021, respectively1,277 1,273 
Preferred stock, par value $0.01 per share, authorized 75,000,000 shares; no shares issued— — 
Capital in excess of par value189,263 174,288 
Retained earnings1,932,970 1,775,751 
Treasury stock at cost, 36,417,480 and 35,915,747 shares at December 31, 2022 and 2021, respectively(1,353,270)(1,326,280)
Accumulated other comprehensive income (loss)(21,930)12,143 
Stockholders' Equity – BWX Technologies, Inc.748,310 637,175 
Noncontrolling interest45 60 
Total Stockholders' Equity748,355 637,235 
TOTAL
$2,618,939 $2,501,380 




BWX TECHNOLOGIES, INC.
BUSINESS SEGMENT INFORMATION
Three Months Ended December 31,Year Ended December 31,
2022202120222021
(Unaudited)
(In thousands)
REVENUES:
Government Operations$517,648 $479,186 $1,808,483 $1,725,097 
Commercial Operations107,092 114,460 427,358 407,082 
Eliminations(563)(1,671)(3,007)(8,105)
TOTAL$624,177 $591,975 $2,232,834 $2,124,074 
 
SEGMENT INCOME:
Government Operations$102,752 $90,891 $336,501 $329,549 
Commercial Operations3,745 18,384 27,418 35,243 
SUBTOTAL$106,497 $109,275 $363,919 $364,792 
Unallocated Corporate(4,614)(7,060)(15,348)(18,944)
TOTAL$101,883 $102,215 $348,571 $345,848 
 
DEPRECIATION AND AMORTIZATION:
Government Operations$12,724 $12,052 $47,982 $42,485 
Commercial Operations4,340 4,945 18,805 19,884 
Corporate1,970 1,607 7,055 6,711 
TOTAL$19,034 $18,604 $73,842 $69,080 
 
CAPITAL EXPENDITURES:
Government Operations$36,898 $36,878 $103,093 $147,051 
Commercial Operations25,294 35,130 88,853 153,571 
Corporate1,529 2,388 6,366 10,430 
TOTAL$63,721 $74,396 $198,312 $311,052 
BACKLOG:
Government Operations$3,515,377 $4,532,170 $3,515,377 $4,532,170 
Commercial Operations628,933 643,866 628,933 643,866 
TOTAL$4,144,310 $5,176,036 $4,144,310 $5,176,036 
BOOKINGS:
Government Operations$345,220 $1,196,527 $743,452 $2,569,813 
Commercial Operations103,609 70,387 412,359 324,468 
TOTAL$448,829 $1,266,914 $1,155,811 $2,894,281