Warning: Javascript must be enabled within your browser's settings for this site to function properly.

Your browser appears to be out of date, and is not supported by this site. For the best experience, we recommend that you upgrade to a more modern browser. You can find a list of modern browsers from www.browsehappy.com.

We use technical and analytics cookies data to ensure that we give you the best experience on our website. For more information visit our Privacy Page.

News Releases

BWX Technologies Announces Third Quarter 2015 Results

04 November 2015

NEWS RELEASE

BWX Technologies Announces Third Quarter 2015 Results

- GAAP EPS of $0.98 ($0.38 in Prior Year Period), Adjusted EPS of $0.40 ($0.30 in Prior Year Period)

- Growth in Revenue and Operating Income Across All Segments Compared to Prior Year Period

- 2015 Adjusted EPS At Higher End of Previous Guidance Range of $1.30 to $1.40

- 2016 Adjusted EPS Guidance of $1.45 to $1.55

- Share Repurchase Activity Accelerating

Lynchburg, VA – November 4, 2015 – BWX Technologies, Inc. (NYSE: BWXT) (“BWXT” or the “Company”) today reported third quarter 2015 revenues of $359.0 million, an increase of $21.6 million, or 6.4%, from the third quarter of 2014. GAAP earnings per share from continuing operations for the third quarter of 2015 were $0.98 compared to $0.38 in the third quarter of 2014. Adjusted (Non-GAAP) earnings per share from continuing operations, which excludes a $0.58 per share impact of income related to proceeds from a legal judgment, was $0.40 compared to $0.30 in the third quarter of 2014. Unless stated otherwise, the results of operations discussed in this release are on a continuing operations basis and exclude the results of operations from our former Power Generation business, which are included as part of discontinued operations in the attached financial statements.

“In our first quarter as a standalone company we were able to build on the successes of the first half of the year and deliver another solid quarter. Improved third quarter revenue and operating income demonstrates management’s commitment to execution,” said Mr. John A. Fees, Executive Chairman. “Our Nuclear Operations segment continued to provide strong results in the third quarter. In addition, the Nuclear Energy segment delivered impressive revenue and operating income growth as work began on the China steam generator project and the segment continues to improve its margin. As we approach the end of the year, we are well positioned for strong results heading into 2016.”

Results of Operations

The Company’s consolidated revenues for the third quarter of 2015 were $359.0 million, an increase of 6.4%, compared to $337.4 million for the third quarter of 2014. Revenue was up in each segment of our business. The Nuclear Operations segment revenues reached record third quarter levels, increasing to $303.3 million in the third quarter of 2015 from $297.5 million in the same quarter in 2014, primarily due to increased manufacturing volume as well as growth in our Nuclear Fuel Services business. Revenues from the Nuclear Energy segment were $34.9 million compared to $21.5 million in the prior year period due to growth in its services business as well as initiating work on the China steam generator project, which was booked during the second quarter of 2015. The Technical Services segment revenues reached $21.3 million in the third quarter of 2015 compared to $20.2 million in the same quarter in 2014, an increase of 5.4%.

GAAP operating income for the third quarter was $131.0 million, an increase of $96.3 million compared to $34.7 million in the same period of 2014. In addition to the increase in each of our segments’ operating income, the increase in consolidated GAAP operating income is also attributable to $65.7 million of operating income related to proceeds from a legal judgment in

litigation with one of our insurers. Operating income in the Nuclear Operations segment increased slightly with $62.7 million in the period compared to $61.9 million in the prior year period. Our Nuclear Energy segment reported operating income of $1.4 million in the period compared to a loss of $6.7 million in the prior year period as the segment saw growth in its services business and began work on the China steam generator project. Our Technical Services segment operating income increased $3.4 million to $8.3 million, primarily due to improved fees associated with achieving performance milestones at one of our sites as well as favorable billing rate adjustments compared to the prior year period.

The effective tax rate for the third quarter of 2015 was 32.6%, which includes the benefit of $4.9 million of discrete items due to the remeasurement of uncertain tax positions as a result of the close of a previously ongoing IRS audit as well as adjustments related to the filing of our 2014 federal income tax return.

Excluding the income from the litigation proceeds, adjusted operating income for the third quarter of 2015 was $65.2 million, or an increase of 31.2% compared to adjusted operating income of

$49.7 million in the third quarter of 2014. The improved adjusted operating income was driven by growth and margin improvement in the Nuclear Energy segment, improved performance in the Technical Services segment, reduced corporate costs and reduced mPower spending.

“We are pleased with the results we’ve made across our different businesses during this period,” said Mr. Fees. “In addition to the solid results in all of our segments, we were able to return capital to our shareholders by resuming execution of our current share repurchase authorization following the recent spin-off of our former Power Generation business. As we move toward the end of the year, we are committed to increasing our share buyback activity and will continue to manage our capital allocation in order to best drive value for our shareholders. Additionally, we are making progress on our previously announced objectives. The Nuclear Energy segment is on track with our expectations for the recovery of that business and the Technical Services segment posted solid results this quarter as we continue to be optimistic about the segment’s long-term growth opportunities. New Chief Operating Officer Rex Geveden will focus our improvement efforts in the Nuclear Energy and Technical Services segments as well as bring a fresh perspective to our Nuclear Operations segment as we continue to execute on our strategic priorities.”

Liquidity and Debt

The Company generated consolidated cash flows from operations of $155.6 million in the third quarter of 2015 compared with $22.5 million, inclusive of cash flows of our former Power Generation business, in the third quarter of 2014, driven primarily by proceeds from a legal judgment and improvements in project cash flows. At the end of the third quarter, the Company’s cash and investments position, net of restricted cash, was $144.5 million.

As of September 30, 2015, outstanding balances under our credit facility included a $300 million term loan and letters of credit issued under the facility totaling $69.9 million, resulting in $530.1 million of availability under our credit facility, which excludes the additional $250 million accordion provision available to us for term loan, revolving credit borrowings and letter of credit commitments.

Share Repurchases

During the third quarter of 2015, the Company repurchased 0.7 million shares of its common stock at a total cost of $18 million. We plan to accelerate our share repurchase activity starting in the fourth quarter of 2015 utilizing existing repurchase authorizations that will expire by February 25, 2016. On October 30, 2015, our Board of Directors approved a new $300 million repurchase authorization for a two-year period beginning February 26, 2016.

Quarterly Dividend

On October 30, 2015, our Board of Directors declared a quarterly cash dividend of $0.06 per common share. The dividend will be payable on December 16, 2015 to shareholders of record on November 20, 2015.

Outlook

Guidance provided for 2015 remains largely unchanged at the segment level. The Company still expects that revenue from Nuclear Operations will be consistent with levels achieved in the last two years and expects an operatin>>g margin in the high teens for the remainder of the year, with some potential for upside. We expect the adjusted earnings per share for 2015 to be at the higher end of our 2015 guidance range of $1.30 to $1.40. Adjusted earnings per share exclude mark-to- market adjustments for pension and post-retirement benefits, restructuring and spin costs, litigation proceeds, and one-time tax charges.

For the full year 2016, the Company expects to achieve consolidated revenues between $1.40 and

$1.45 billion. Adjusted earnings per share for 2016 are expected to be between $1.45 and $1.55, which excludes mark-to-market adjustments for pension and post-retirement benefits. The Company also expects the following for 2016:

  • Nuclear Operations revenues consistent with levels achieved in the last three years and expected operating margin in the high teens with some potential for upside
  • Technical Services operating profit in the range of $15 to $20 million, mostly from equity income
  • Nuclear Energy revenues in the $160 to $190 million range with the full year operating margin around 10%, achieved by year end
  • mPower spending capped at or below $15 million while management continues to evaluate options
  • Corporate unallocated spend of $15 to $20 million
  • Effective tax rate for 2016 is expected to be in the range of 34% to 36%
  • An increase in the organic capital expenditures range to be between $55 and $60 million in order to support the Ohio Replacement Class work
  • Depreciation and amortization of $40 to $45 million

Conference Call to Discuss Third Quarter 2015 Results

Date: Thursday, November 5, 2015, at 8:30 a.m. EST

Live Webcast: Investor Relations section of website atwww.bwxt.com

Forward-Looking Statements

BWXT cautions that this release contains forward-looking statements, including, without limitation, statements relating to 2015 results; management’s plans and expectations regarding our share repurchase activity, capital allocation and opportunities in our segments, as well as outlook and guidance for 2015 and 2016. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, adverse changes in Federal appropriations to government programs in which we participate; our ability to obtain new contract awards; 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, 2014 and subsequent quarterly reports on Form 10-Q. 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

BWX Technologies, Inc. is a leading supplier of nuclear components and fuel to the U.S. government; provides technical, management and site services to support governments in the operation of complex facilities and environmental remediation activities; and supplies precision manufactured components and services for the commercial nuclear power industry. BWXT has approximately 5,300 employees and significant operations in Lynchburg, Va.; Erwin, Tenn.; Mount Vernon, Ind.; Euclid, Ohio; Barberton, Ohio; and Cambridge, Ontario, as well as more than a dozen U.S. Department of Energy sites around the country. A company overview presentation, which will be presented at investor conferences and meetings throughout this quarter, is available on the Investor Relations section of our website. For additional information please visit our website at www.bwxt.com.

Investor Contact: Media Contact:

Alan Nethery Jud Simmons

Vice President, Investor Relations Communications Director

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)

Three Months Ended September 30, 2015

GAAP

Pension & OPEB MTM

(Gain) / Loss

Spin / Other Restructuring

Impairment (Gains) / Charges

Litigation Proceeds

Non-GAAP

$ 131.0

$ -

$ -

$ -

$ (65.7)

$ 65.2

27.1

-

-

-

(29.1)

(2.0)

(51.6)

-

-

-

31.6

(20.0)

106.5

-

-

-

(63.2)

43.3

(0.2)

-

-

-

-

(0.2)

$ 106.3

$ -

$ -

$ -

$ (63.2)

$ 43.1

108.2

108.2

$ 0.98

$ -

$ -

$ -

$ (0.58)

$ 0.40

32.6%

31.6%

GAAP

Pension & OPEB MTM

(Gain) / Loss

Spin / Other Restructuring

Impairment (Gains) / Charges

Litigation Proceeds

Non-GAAP

$ 131.0

$ -

$ -

$ -

$ (65.7)

$ 65.2

27.1

-

-

-

(29.1)

(2.0)

(51.6)

-

-

-

31.6

(20.0)

106.5

-

-

-

(63.2)

43.3

(0.2)

-

-

-

-

(0.2)

$ 106.3

$ -

$ -

$ -

$ (63.2)

$ 43.1

108.2

108.2

$ 0.98

$ -

$ -

$ -

$ (0.58)

$ 0.40

32.6%

31.6%

Operating Income

Other Income / (Expense) Income Tax (Expense) / Benefit Net Income (Loss)

Net Loss Attributable to Non-

Controlling Interest

Net Income (Loss) Attributable to BWXT

Diluted Shares Outstanding

Diluted Earnings per Common Share

Tax Rate

Three Months Ended September 30, 2014

GAAP

Pension & OPEB MTM

(Gain) / Loss

Spin / Other Restructuring

Impairment (Gains) / Charges

Litigation Proceeds

Non-GAAP

$ 34.7

$ 9.1

$ 5.9

$ -

$ -

$ 49.7

15.9

-

-

(18.6)

-

(2.8)

(10.9)

(2.3)

(1.9)

-

-

(15.1)

39.8

6.7

4.0

(18.6)

-

31.8

0.9

-

-

-

-

0.9

$ 40.6

$ 6.7

$ 4.0

$ (18.6)

$ -

$ 32.7

107.4

107.4

$ 0.38

$ 0.06

$ 0.04

$ (0.17)

$ -

$ 0.30

21.4%

32.2%

GAAP

Pension & OPEB MTM

(Gain) / Loss

Spin / Other Restructuring

Impairment (Gains) / Charges

Litigation Proceeds

Non-GAAP

$ 34.7

$ 9.1

$ 5.9

$ -

$ -

$ 49.7

15.9

-

-

(18.6)

-

(2.8)

(10.9)

(2.3)

(1.9)

-

-

(15.1)

39.8

6.7

4.0

(18.6)

-

31.8

0.9

-

-

-

-

0.9

$ 40.6

$ 6.7

$ 4.0

$ (18.6)

$ -

$ 32.7

107.4

107.4

$ 0.38

$ 0.06

$ 0.04

$ (0.17)

$ -

$ 0.30

21.4%

32.2%

Operating Income

Other Income / (Expense) Income Tax (Expense) / Benefit Net Income (Loss)

Net Loss Attributable to Non-

Controlling Interest

Net Income (Loss) Attributable to BWXT

Diluted Shares Outstanding

Diluted Earnings per Common Share

Tax Rate

image

  1. 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 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.

EXHIBIT 1 (continued)

BWX TECHNOLOGIES, INC.

RECONCILIATION OF NON-GAAP OPERATING INCOME AND EARNINGS PER SHARE(1)(2)

Nine Months Ended September 30, 2015

GAAP

Pension & OPEB MTM

(Gain) / Loss

Spin / Other Restructuring

Impairment (Gains) / Charges

One Time Tax (Benefit) / Charges

Litigation Proceeds

Non-GAAP

$ 196.3

$ 2.2

$ 42.6

$ -

$ -

$ (65.7)

$ 175.4

20.5

-

-

-

-

(29.1)

(8.6)

(76.8)

(0.7)

(12.2)

-

3.5

31.6

(54.6)

140.1

1.4

30.4

-

3.5

(63.2)

112.2

0.3

-

-

-

-

-

0.3

$ 140.4

$ 1.4

$ 30.4

$ -

$ 3.5

$ (63.2)

$ 112.5

107.6

107.6

$ 1.30

$ 0.01

$ 0.28

$ -

$ 0.03

$ (0.59)

$ 1.05

35.4%

32.7%

GAAP

Pension & OPEB MTM

(Gain) / Loss

Spin / Other Restructuring

Impairment (Gains) / Charges

One Time Tax (Benefit) / Charges

Litigation Proceeds

Non-GAAP

$ 196.3

$ 2.2

$ 42.6

$ -

$ -

$ (65.7)

$ 175.4

20.5

-

-

-

-

(29.1)

(8.6)

(76.8)

(0.7)

(12.2)

-

3.5

31.6

(54.6)

140.1

1.4

30.4

-

3.5

(63.2)

112.2

0.3

-

-

-

-

-

0.3

$ 140.4

$ 1.4

$ 30.4

$ -

$ 3.5

$ (63.2)

$ 112.5

107.6

107.6

$ 1.30

$ 0.01

$ 0.28

$ -

$ 0.03

$ (0.59)

$ 1.05

35.4%

32.7%

Operating Income

Other Income / (Expense) Income Tax (Expense) / Benefit

Net Income (Loss)

Net Loss Attributable to Non- Controlling Interest

Net Income (Loss) Attributable to BWXT

Diluted Shares Outstanding Diluted Earnings per Common Share

Tax Rate

Nine Months Ended September 30, 2014

GAAP

Pension & OPEB MTM

(Gain) / Loss

Spin / Other Restructuring

Impairment (Gains) / Charges

One Time Tax (Benefit) / Charges (3)

Litigation Proceeds

Non-GAAP

$ 106.8

$ 9.1

$ 32.2

$ -

$ -

$ -

$ 148.1

14.7

-

-

(18.6)

-

-

(4.0)

(27.4)

(2.3)

(10.9)

-

(5.8)

-

(46.4)

94.1

6.7

21.4

(18.6)

(5.8)

-

97.8

7.9

-

-

-

-

-

7.9

$ 102.0

$ 6.7

$ 21.4

$ (18.6)

$ (5.8)

$ -

$ 105.7

109.5

109.5

$ 0.93

$ 0.06

$ 0.20

$ (0.17)

$ (0.05)

$ -

$ 0.97

22.6%

32.2%

GAAP

Pension & OPEB MTM

(Gain) / Loss

Spin / Other Restructuring

Impairment (Gains) / Charges

One Time Tax (Benefit) / Charges (3)

Litigation Proceeds

Non-GAAP

$ 106.8

$ 9.1

$ 32.2

$ -

$ -

$ -

$ 148.1

14.7

-

-

(18.6)

-

-

(4.0)

(27.4)

(2.3)

(10.9)

-

(5.8)

-

(46.4)

94.1

6.7

21.4

(18.6)

(5.8)

-

97.8

7.9

-

-

-

-

-

7.9

$ 102.0

$ 6.7

$ 21.4

$ (18.6)

$ (5.8)

$ -

$ 105.7

109.5

109.5

$ 0.93

$ 0.06

$ 0.20

$ (0.17)

$ (0.05)

$ -

$ 0.97

22.6%

32.2%

Operating Income

Other Income / (Expense) Income Tax (Expense) / Benefit

Net Income (Loss)

Net Loss Attributable to Non- Controlling Interest

Net Income (Loss) Attributable to BWXT

Diluted Shares Outstanding Diluted Earnings per Common Share

Tax Rate

BWX TECHNOLOGIES, INC.

BWX TECHNOLOGIES, INC.

image

  1. 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 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. Amount relates to the first quarter of 2014.

CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS

September 30, December 31,

2015 2014

imageimage

(Unaudited) (In thousands)

Current Assets:

Cash and cash equivalents

$ 135,921

$ 123,624

Restricted cash and cash equivalents

17,381

50,835

Investments

2,251

4,837

Accounts receivable – trade, net

180,108

165,144

Accounts receivable – other

27,206

6,094

Contracts in progress

266,826

290,622

Inventories

10,970

9,926

Deferred income taxes

42,832

38,320

Other current assets

21,735

32,127

Assets of discontinued operations – current

-

752,273

Total Current Assets

705,230

1,473,802

Property, Plant and Equipment

831,043

880,848

Less accumulated depreciation

568,773

573,048

Net Property, Plant and Equipment

262,270

307,800

Investments

6,300

7,606

Goodwill

168,585

169,914

Deferred Income Taxes

132,067

132,778

Investments in Unconsolidated Affiliates

33,812

31,256

Intangible Assets

58,863

60,227

Other Assets

43,595

50,133

Assets of Discontinued Operations – Non-Current

-

623,420

TOTAL

$1,410,722

$ 2,856,936

CONDENSED CONSOLIDATED BALANCE SHEETS LIABILITIES AND STOCKHOLDERS’ EQUITY

September 30, December 31,

2015 2014

imageimage

(Unaudited)

(In thousands, except share and per share amounts)

Current Liabilities:

Notes payable and current maturities of long-term debt

$ 11,250

$ 15,000

Accounts payable

60,184

88,985

Accrued employee benefits

60,863

85,433

Accrued liabilities – other

54,135

44,232

Advance billings on contracts

140,925

107,437

Accrued warranty expense

15,985

15,889

Income taxes payable

34,627

15,778

Liabilities of discontinued operations – current

-

446,881

Total Current Liabilities

377,969

819,635

Long-Term Debt

288,750

285,000

Accumulated Postretirement Benefit Obligation

26,890

29,956

Environmental Liabilities

59,117

56,259

Pension Liability

303,540

308,927

Other Liabilities

22,972

43,126

Liabilities of Discontinued Operations – Non-Current

-

299,832

Commitments and Contingencies

Stockholders’ Equity:

Common stock, par value $0.01 per share, authorized 325,000,000 shares; issued 122,611,572 and 121,604,332 shares at September 30, 2015 and

December 31, 2014, respectively 1,226 1,216 Preferred stock, par value $0.01 per share, authorized 75,000,000 shares;

No shares issued

-

-

Capital in excess of par value

15,964

775,393

Retained earnings

746,278

642,489

Treasury stock at cost 15,781,393 and 14,915,776 shares at September 30,

2015 and December 31, 2014, respectively

(446,562)

(423,990)

Accumulated other comprehensive income

732

3,596

Stockholders’ Equity – BWX Technologies, Inc.

317,638

998,704

Noncontrolling interest

13,846

15,497

Total Stockholders’ Equity

331,484

1,014,201

TOTAL

$1,410,722

$ 2,856,936

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended Nine Months Ended September 30, September 30,

2015 2014 2015 2014

(Unaudited)

(In thousands, except share and per share amounts)

Revenues

$ 358,970

$ 337,352

$ 1,051,592

$ 1,055,256

Costs and Expenses: Cost of operations

250,558

242,607

727,685

752,980

Research and development costs

1,518

3,877

8,999

50,498

Gains on asset disposals and impairments, net

-

(625)

(3)

(625)

Selling, general and administrative expenses

47,550

55,289

152,736

158,628

Special charges for restructuring activities

-

5,922

16,608

17,059

Income related to litigation proceeds

(65,728)

-

(65,728)

-

Costs to spin-off the Power Generation business

-

-

25,987

-

Total Costs and Expenses

233,898

307,070

866,284

978,540

Equity in Income of Investees

5,894

4,449

11,028

30,101

Operating Income

130,966

34,731

196,336

106,817

Other Income (Expense): Interest income

30,028

145

30,262

376

Interest expense

(1,231)

(2,832)

(6,792)

(4,637)

Other – net

(1,666)

18,563

(2,950)

18,926

Total Other Income (Expense)

27,131

15,876

20,520

14,665

Income from continuing operations before provision for income taxes

and noncontrolling interest

158,097

50,607

216,856

121,482

Provision for Income Taxes

51,589

10,853

76,789

27,395

Income (loss) from continuing operations before noncontrolling

106,508

39,754

140,067

94,087

interest

Income (loss) from discontinued operations, net of tax

(2,474)

20,649

(8,311)

30,962

Net Income

$ 104,034

$ 60,403

$ 131,756

$ 125,049

Net (Income) Loss Attributable to Noncontrolling Interest

(164)

811

224

7,646

Net Income Attributable to BWX Technologies, Inc.

$ 103,870

$ 61,214

$ 131,980

$ 132,695

Amounts Attributable to BWX Technologies, Inc.’s Common Shareholders:

Income from continuing operations, net of tax

$ 106,344

$ 40,626

$ 140,397

$ 101,987

Income (loss) from discontinued operations, net of tax

(2,474)

20,588

(8,417)

30,708

Net Income Attributable to BWX Technologies, Inc.

$ 103,870

$ 61,214

$ 131,980

$ 132,695

Earnings per Common Share: Basic:

Income from continuing operations

$ 0.99

$ 0.38

$ 1.31

$ 0.93

Income (loss) from discontinued operations

(0.02)

0.19

(0.08)

0.28

Net Income Attributable to BWX Technologies, Inc.

$ 0.97

$ 0.57

$ 1.23

$ 1.22

Diluted:

Income from continuing operations

$ 0.98

$ 0.38

$ 1.30

$ 0.93

Income (loss) from discontinued operations

(0.02)

0.19

(0.08)

0.28

Net Income Attributable to BWX Technologies, Inc.

$ 0.96

$ 0.57

$ 1.23

$ 1.21

Shares used in the computation of earnings per share:

Basic

106,962,168

107,105,986

106,952,744

109,103,879

Diluted

108,184,304

107,444,284

107,634,732

109,482,318

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended September 30,

2015 2014

(Unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES:

(In thousands)

Net Income

$ 131,756

$ 125,049

Non-cash items included in net income from continuing operations:

Depreciation and amortization

65,010

57,400

Income of investees, net of dividends

(221)

16,920

Losses on asset disposals and impairments, net

26,441

3,870

Gain on exchange of USEC investment

-

(18,647)

In-kind research and development costs

-

5,830

Recognition of losses for pension and postretirement plans

3,587

12,952

Stock-based compensation and thrift plan expense

25,105

11,786

Excess tax benefits from stock-based compensation

(381)

(568)

Changes in assets and liabilities:

Accounts receivable

(273)

(62,220)

Accounts payable

(33,825)

(115,271)

Contracts in progress and advance billings on contracts

59,020

(74,214)

Inventories

(561)

138

Income taxes

(17,257)

(11,804)

Accrued and other current liabilities

5,417

13,206

Pension liability, accrued postretirement benefit obligation and employee benefits

(41,340)

(66,679)

Other, net

16,380

17,057

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

238,858

(85,195)

CASH FLOWS FROM INVESTING ACTIVITIES:

Decrease in restricted cash and cash equivalents

1,578

2,745

Purchases of property, plant and equipment

(52,193)

(55,877)

Acquisition of business, net of cash acquired

-

(127,705)

Purchase of intangible assets

-

(722)

Purchases of securities

(9,711)

(21,225)

Sales and maturities of securities

5,441

31,663

Proceeds from asset disposals

60

846

Investment in equity method investees

-

(4,900)

NET CASH USED IN INVESTING ACTIVITIES

(54,825)

(175,175)

CASH FLOWS FROM FINANCING ACTIVITIES:

Payment of short-term borrowing and long-term debt

-

(4,424)

Increase in short-term borrowing

-

2,855

Borrowings under the Credit Agreement

177,350

809,300

Repayments under Credit Agreement

(177,350)

(504,900)

Payment of debt issuance costs

(4,929)

(5,390)

Repurchase of common shares

(18,088)

(149,774)

Dividends paid to common shareholders

(28,105)

(32,799)

Exercise of stock options

3,646

3,854

Excess tax benefits from stock-based compensation

381

568

Cash divested in connection with spin-off of Power Generation business

(307,562)

-

Other

(332)

(202)

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES

(354,989)

119,088

EFFECTS OF EXCHANGE RATE CHANGES ON CASH

(6,092)

(7,913)

TOTAL DECREASE IN CASH AND CASH EQUIVALENTS

(177,048)

(149,195)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

312,969

346,116

CASH AND CASH EQUIVALENTS AT END OF PERIOD

$ 135,921

$ 196,921

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

Cash paid during the period for:

Interest

$ 5,294

$ 3,573

Income taxes (net of refunds)

$ 82,054

$ 52,845

SCHEDULE OF NON-CASH INVESTING ACTIVITY:

Accrued capital expenditures included in accounts payable $ 2,161 $ 3,201

REVENUES:

Nuclear Operations

$ 303,304

$ 297,489

$ 879,493

$ 877,141

Technical Services

21,261

20,236

61,434

70,706

Nuclear Energy

34,927

21,529

113,350

114,236

Other

-

-

-

278

Adjustments and Eliminations

(522)

(1,902)

(2,685)

(7,105)

TOTAL

$ 358,970

$ 337,352

$ 1,051,592

$ 1,055,256

SEGMENT INCOME:

Nuclear Operations

$ 62,720

$ 61,893

$ 191,877

$ 180,103

Technical Services

8,340

4,951

15,475

34,818

Nuclear Energy

1,382

(6,698)

79

(4,627)

Other

(2,357)

(5,140)

(12,015)

(63,782)

SUBTOTAL

$ 70,085

$ 55,006

$ 195,416

$ 146,512

Corporate

(4,847)

(5,286)

(20,052)

(13,569)

Income Related to Litigation Proceeds

65,728

-

65,728

-

Special Charges for Restructuring Activities

-

(5,922)

(16,608)

(17,059)

Cost to Spin-Off Power Generation Business

-

-

(25,987)

-

Mark to Market Adjustment

-

(9,067)

(2,161)

(9,067)

TOTAL

$ 130,966

$ 34,731

$ 196,336

$ 106,817

DEPRECIATION AND AMORTIZATION:

Nuclear Operations $ 9,613 $ 7,380 $ 28,841

$ 21,037

Technical Services 10 - 11

1

Nuclear Energy 1,542 1,614 4,936

4,968

Other - 263 550

712

Corporate 2,130 3,204 9,214

9,489

TOTAL $ 13,295 $ 12,461 $ 43,552

$ 36,207

CAPITAL EXPENDITURES:

Nuclear Operations

$ 8,715

$ 7,101

$ 24,667

$ 24,210

Technical Services

-

-

-

-

Nuclear Energy

1,543

4,852

4,197

13,089

Other

-

99

-

1,983

Corporate

1,334

1,215

12,095

5,709

TOTAL

$ 11,592

$ 13,267

$ 40,959

$ 44,991

BACKLOG:

Nuclear Operations

$ 2,451,945

$ 2,376,438

$ 2,451,945

$ 2,376,438

Technical Services

5,712

4,475

5,712

4,475

Nuclear Energy

341,952

273,415

341,952

273,415

TOTAL

$ 2,799,609

$ 2,654,328

$ 2,799,609

$ 2,654,328

BOOKINGS:

Nuclear Operations

$ 155,970

$ 93,426

$ 550,760

$ 877,434

Technical Services

14,273

12,523

64,443

70,155

Nuclear Energy (1)

994

100,837

194,945

238,863

TOTAL

$ 171,237

$ 206,786

$ 810,148

$ 1,186,452

image

(1) Nuclear Energy’s bookings are net of unfavorable currency translation adjustments affecting backlog in the third quarter, totaling $27.9 million.

%MCEPASTEBIN%

BWX Technologies Announces Third Quarter 2015 Results

-    GAAP EPS of $0.98 ($0.38 in Prior Year Period), Adjusted EPS of $0.40 ($0.30 in Prior Year Period)

-    Growth in Revenue and Operating Income Across All Segments Compared to Prior Year Period

-    2015 Adjusted EPS At Higher End of Previous Guidance Range of $1.30 to $1.40

-    2016 Adjusted EPS Guidance of $1.45 to $1.55

-    Share Repurchase Activity Accelerating

 

Lynchburg, VA – November 4, 2015– BWX Technologies, Inc. (NYSE: BWXT) (“BWXT” or the “Company”) today reported third quarter 2015 revenues of $359.0 million, an increase of $21.6 million, or 6.4%, from the third quarter of 2014.  GAAP earnings per share from continuing operations for the third quarter of 2015 were $0.98 compared to $0.38 in the third quarter of 2014.  Adjusted (Non-GAAP) earnings per share from continuing operations, which excludes a $0.58 per share impact of income related to proceeds from a legal judgment, was $0.40 compared to $0.30 in the third quarter of 2014.  Unless stated otherwise, the results of operations discussed in this release are on a continuing operations basis and exclude the results of operations from our former Power Generation business, which are included as part of discontinued operations in the attached financial statements.

 

“In our first quarter as a standalone company we were able to build on the successes of the first half of the year and deliver another solid quarter.  Improved third quarter revenue and operating income demonstrates management’s commitment to execution,” said Mr. John A. Fees, Executive Chairman.  “Our Nuclear Operations segment continued to provide strong results in the third quarter.  In addition, the Nuclear Energy segment delivered impressive revenue and operating income growth as work began on the China steam generator project and the segment continues to improve its margin.  As we approach the end of the year, we are well positioned for strong results heading into 2016.”

 

Results of Operations

The Company’s consolidated revenues for the third quarter of 2015 were $359.0 million, an increase of 6.4%, compared to $337.4 million for the third quarter of 2014.  Revenue was up in each segment of our business.  The Nuclear Operations segment revenues reached record third quarter levels, increasing to $303.3 million in the third quarter of 2015 from $297.5 million in the same quarter in 2014, primarily due to increased manufacturing volume as well as growth in our Nuclear Fuel Services business.  Revenues from the Nuclear Energy segment were $34.9 million compared to $21.5 million in the prior year period due to growth in its services business as well as initiating work on the China steam generator project, which was booked during the second quarter of 2015.  The Technical Services segment revenues reached $21.3 million in the third quarter of 2015 compared to $20.2 million in the same quarter in 2014, an increase of 5.4%.   

 

GAAP operating income for the third quarter was $131.0 million, an increase of $96.3 million compared to $34.7 million in the same period of 2014.  In addition to the increase in each of our segments’ operating income, the increase in consolidated GAAP operating income is also attributable to $65.7 million of operating income related to proceeds from a legal judgment in litigation with one of our insurers.  Operating income in the Nuclear Operations segment increased slightly with $62.7 million in the period compared to $61.9 million in the prior year period.  Our Nuclear Energy segment reported operating income of $1.4 million in the period compared to a loss of $6.7 million in the prior year period as the segment saw growth in its services business and began work on the China steam generator project.  Our Technical Services segment operating income increased $3.4 million to $8.3 million, primarily due to improved fees associated with achieving performance milestones at one of our sites as well as favorable billing rate adjustments compared to the prior year period.

 

The effective tax rate for the third quarter of 2015 was 32.6%, which includes the benefit of $4.9 million of discrete items due to the remeasurement of uncertain tax positions as a result of the close of a previously ongoing IRS audit as well as adjustments related to the filing of our 2014 federal income tax return.

 

Excluding the income from the litigation proceeds, adjusted operating income for the third quarter of 2015 was $65.2 million, or an increase of 31.2% compared to adjusted operating income of $49.7 million in the third quarter of 2014.  The improved adjusted operating income was driven by growth and margin improvement in the Nuclear Energy segment, improved performance in the Technical Services segment, reduced corporate costs and reduced mPower spending. 

 

“We are pleased with the results we’ve made across our different businesses during this period,” said Mr. Fees.  “In addition to the solid results in all of our segments, we were able to return capital to our shareholders by resuming execution of our current share repurchase authorization following the recent spin-off of our former Power Generation business.  As we move toward the end of the year, we are committed to increasing our share buyback activity and will continue to manage our capital allocation in order to best drive value for our shareholders.  Additionally, we are making progress on our previously announced objectives.  The Nuclear Energy segment is on track with our expectations for the recovery of that business and the Technical Services segment posted solid results this quarter as we continue to be optimistic about the segment’s long-term growth opportunities.  New Chief Operating Officer Rex Geveden will focus our improvement efforts in the Nuclear Energy and Technical Services segments as well as bring a fresh perspective to our Nuclear Operations segment as we continue to execute on our strategic priorities.”

 

Liquidity and Debt

The Company generated consolidated cash flows from operations of $155.6 million in the third quarter of 2015 compared with $22.5 million, inclusive of cash flows of our former Power Generation business, in the third quarter of 2014, driven primarily by proceeds from a legal judgment and improvements in project cash flows.  At the end of the third quarter, the Company’s cash and investments position, net of restricted cash, was $144.5 million.

 

As of September 30, 2015, outstanding balances under our credit facility included a $300 million term loan and letters of credit issued under the facility totaling $69.9 million, resulting in $530.1 million of availability under our credit facility, which excludes the additional $250 million accordion provision available to us for term loan, revolving credit borrowings and letter of credit commitments.

 

Share Repurchases

 

During the third quarter of 2015, the Company repurchased 0.7 million shares of its common stock at a total cost of $18 million.  We plan to accelerate our share repurchase activity starting in the fourth quarter of 2015 utilizing existing repurchase authorizations that will expire by February 25, 2016.  On October 30, 2015, our Board of Directors approved a new $300 million repurchase authorization for a two-year period beginning February 26, 2016.

 

Quarterly Dividend

 

On October 30, 2015, our Board of Directors declared a quarterly cash dividend of $0.06 per common share.  The dividend will be payable on December 16, 2015 to shareholders of record on November 20, 2015. 

 

Outlook

 

Guidance provided for 2015 remains largely unchanged at the segment level.  The Company still expects that revenue from Nuclear Operations will be consistent with levels achieved in the last two years and expects an operating margin in the high teens for the remainder of the year, with some potential for upside.  We expect the adjusted earnings per share for 2015 to be at the higher end of our 2015 guidance range of $1.30 to $1.40.  Adjusted earnings per share exclude mark-to-market adjustments for pension and post-retirement benefits, restructuring and spin costs, litigation proceeds, and one-time tax charges.

 

For the full year 2016, the Company expects to achieve consolidated revenues between $1.40 and $1.45 billion.  Adjusted earnings per share for 2016 are expected to be between $1.45 and $1.55, which excludes mark-to-market adjustments for pension and post-retirement benefits.  The Company also expects the following for 2016:

·         Nuclear Operations revenues consistent with levels achieved in the last three years and expected operating margin in the high teens with some potential for upside

·         Technical Services operating profit in the range of $15 to $20 million, mostly from equity income

·         Nuclear Energy revenues in the $160 to $190 million range with the full year operating margin around 10%, achieved by year end

·         mPower spending capped at or below $15 million while management continues to evaluate options

·         Corporate unallocated spend of $15 to $20 million

·         Effective tax rate for 2016 is expected to be in the range of 34% to 36%

·         An increase in the organic capital expenditures range to be between $55 and $60 million in order to support the Ohio Replacement Class work

·         Depreciation and amortization of $40 to $45 million

 

Conference Call to Discuss Third Quarter 2015 Results

 

Date:                          Thursday, November 5, 2015, at 8:30 a.m. EST

Live Webcast:           Investor Relations section of website atwww.bwxt.com

 

 

Forward-Looking Statements 

BWXT cautions that this release contains forward-looking statements, including, without limitation, statements relating to 2015 results; management’s plans and expectations regarding our share repurchase activity, capital allocation and opportunities in our segments, as well as outlook and guidance for 2015 and 2016. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, adverse changes in Federal appropriations to government programs in which we participate; our ability to obtain new contract awards; 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, 2014 and subsequent quarterly reports on Form 10-Q.  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

 

BWX Technologies, Inc. is a leading supplier of nuclear components and fuel to the U.S. government; provides technical, management and site services to support governments in the operation of complex facilities and environmental remediation activities; and supplies precision manufactured components and services for the commercial nuclear power industry.  BWXT has approximately 5,300 employees and significant operations in Lynchburg, Va.; Erwin, Tenn.; Mount Vernon, Ind.; Euclid, Ohio; Barberton, Ohio; and Cambridge, Ontario, as well as more than a dozen U.S. Department of Energy sites around the country.  A company overview presentation, which will be presented at investor conferences and meetings throughout this quarter, is available on the Investor Relations section of our website.  For additional information please visit our website at www.bwxt.com.

 

Investor Contact:                                                                                     Media Contact:

Alan Nethery                                                                                              Jud Simmons                                

Vice President,Investor Relations                                                         Communications Director

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)

 

 

 

Three Months Ended September 30, 2015

 

GAAP

Pension & OPEB MTM (Gain) / Loss

Spin / Other Restructuring

Impairment (Gains) / Charges

Litigation Proceeds

Non-GAAP

 

 

 

 

 

Operating Income

${body}#160;       131.0

${body}#160;            -

$               -

$             -

 ${body}#160;    (65.7)

${body}#160;           65.2

Other Income / (Expense)

             27.1

             -

                  -  

                  -  

        (29.1)  

             (2.0)

Income Tax (Expense) / Benefit

         (51.6)

         -

                -

                -

          31.6

        (20.0)

Net Income (Loss)

           106.5

-

                 -

                 -

         (63.2)

             43.3

Net Loss Attributable to Non-Controlling Interest

              (0.2)

               -

                    -  

                    -  

                -  

               (0.2)

Net Income (Loss) Attributable to BWXT

${body}#160;       106.3

${body}#160;             -

${body}#160;             -

${body}#160;             -

${body}#160;    (63.2)

${body}#160;           43.1

 

 

 

 

Diluted Shares Outstanding

108.2

108.2

Diluted Earnings per Common Share

${body}#160;         0.98

${body}#160;             -

${body}#160;             -

${body}#160;             -

 ${body}#160;     (0.58)

${body}#160;           0.40

 

 

 

 

 

Tax Rate

32.6%

37.4%

38.0%

31.6%

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2014

 

 

GAAP

Pension & OPEB MTM (Gain) / Loss

Spin / Other Restructuring

Impairment (Gains) / Charges

Litigation Proceeds

Non-GAAP

 

 

 

 

 

 

Operating Income

${body}#160;         34.7

${body}#160;            9.1

$            5.9

$             -

 ${body}#160;          -

${body}#160;           49.7

Other Income / (Expense)

        15.9

             -

                  -  

            (18.6)  

              -  

             (2.8)

Income Tax (Expense) / Benefit

         (10.9)

         (2.3)

                (1.9)

                -

          -

        (15.1)

Net Income (Loss)

         39.8

6.7

                 4.0

            (18.6)

              -

             31.8

Net Loss Attributable to Non-Controlling Interest

               0.9

               -

                    -  

                    -  

                -  

               0.9

Net Income (Loss) Attributable to BWXT

${body}#160;         40.6

${body}#160;            6.7

${body}#160;             4.0

${body}#160;     (18.6)

${body}#160;          -

${body}#160;           32.7

 

 

 

 

Diluted Shares Outstanding

107.4

107.4

Diluted Earnings per Common Share

${body}#160;         0.38

${body}#160;             0.06

${body}#160;             0.04

${body}#160;     (0.17)

 ${body}#160;          -

${body}#160;           0.30

 

 

 

 

 

Tax Rate

21.4%

37.4%

38.0%

32.2%

 

 

 

 

 

 

 

 

 

(1) 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 into the Company’s operational performance and provides these measures to investors to help facilitate comparisons of operating results with prior periods and toassist them in understanding  BWXT’s ongoing operations.

 


EXHIBIT 1 (continued)

 

BWX TECHNOLOGIES, INC.

RECONCILIATION OF NON-GAAP OPERATING INCOME AND EARNINGS PER SHARE(1)(2)

 

 

Nine Months Ended September 30, 2015

 

GAAP

Pension & OPEB MTM (Gain) / Loss

Spin / Other Restructuring

Impairment (Gains) / Charges

One Time Tax (Benefit) / Charges

Litigation Proceeds

Non-GAAP

 

 

 

 

 

 

 

Operating Income

${body}#160;  196.3

${body}#160;         2.2

$          42.6

 ${body}#160;          -

 ${body}#160;          -

 ${body}#160;   (65.7)

${body}#160;         175.4

Other Income / (Expense)

  20.5

             -

                  -  

              -  

              -  

       (29.1)  

             (8.6)

Income Tax (Expense) / Benefit

         (76.8)

         (0.7)

                (12.2)

-

          3.5

          31.6

        (54.6)

Net Income (Loss)

     140.1

1.4

           30.4

       -

        3.5

    (63.2)

            112.2

Net Loss Attributable to Non-Controlling Interest

               0.3

               -

                    -  

                -  

                -  

                -  

               0.3

Net Income (Loss) Attributable to BWXT

${body}#160;  140.4

${body}#160;          1.4

${body}#160;         30.4

${body}#160;         -

${body}#160;         3.5

${body}#160;   (63.2)

${body}#160;         112.5

 

 

 

 

 

Diluted Shares Outstanding

107.6

107.6

Diluted Earnings per Common Share

${body}#160;    1.30

${body}#160;        0.01

${body}#160;         0.28

 ${body}#160;         -

 ${body}#160;       0.03

 ${body}#160;   (0.59)

${body}#160;           1.05

 

 

 

 

 

Tax Rate

35.4%

37.4%

38.0%

32.7%

 

 

 

 

 

 

 

Nine Months Ended September 30, 2014

 

GAAP

Pension & OPEB MTM (Gain) / Loss

Spin / Other Restructuring

Impairment (Gains) / Charges

One Time Tax (Benefit) / Charges(3)

Litigation Proceeds

Non-GAAP

 

 

 

 

 

Operating Income

${body}#160;  106.8

${body}#160;            9.1

$            32.2

$             -

 ${body}#160;          -

 ${body}#160;          -

${body}#160;         148.1

Other Income / (Expense)

       14.7

             -

                  -  

         (18.6)  

              -  

              -  

             (4.0)

Income Tax (Expense) / Benefit

         (27.4)

         (2.3)

                (10.9)

                -

          (5.8)

          -

        (46.4)

Net Income (Loss)

        94.1

6.7

                 21.4

           (18.6)

              (5.8)

              -

           97.8

Net Loss Attributable to Non-Controlling Interest

               7.9

               -

                    -  

                    -  

                -  

                -  

               7.9

Net Income (Loss) Attributable to BWXT

${body}#160;  102.0

${body}#160;            6.7

${body}#160;           21.4

${body}#160;     (18.6)

${body}#160;      (5.8)

${body}#160;          -

${body}#160;         105.7

 

 

 

 

 

Diluted Shares Outstanding

109.5

109.5

Diluted Earnings per Common Share

${body}#160;    0.93

${body}#160;         0.06

${body}#160;           0.20

${body}#160;    (0.17)

 ${body}#160;     (0.05)

 ${body}#160;          -

${body}#160;           0.97

 

 

 

 

 

Tax Rate

22.6%

37.4%

38.0%

32.2%

 

 

 

 

 

 

(1) 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 into the Company’s operational performance and provides these measures to investors to help facilitate comparisons of operating results with prior periods and toassist them in understanding  BWXT’s ongoing operations.

(3)  Amount relates to the first quarter of 2014.

 

 


BWX TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

ASSETS

 

   

September 30,

December 31,

2015

2014

(Unaudited)

(In thousands)

Current Assets:

Cash and cash equivalents

${body}#160;    135,921

${body}#160;   123,624

Restricted cash and cash equivalents

17,381

50,835

Investments

2,251

4,837

Accounts receivable – trade, net

180,108

165,144

Accounts receivable – other

27,206

6,094

Contracts in progress

266,826

290,622

Inventories

10,970

9,926

Deferred income taxes

42,832

38,320

Other current assets

21,735

32,127

Assets of discontinued operations – current

-

752,273

Total Current Assets

705,230

1,473,802

Property, Plant and Equipment

831,043

880,848

Less accumulated depreciation

568,773

573,048

Net Property, Plant and Equipment

262,270

307,800

Investments

6,300

7,606

Goodwill

168,585

169,914

Deferred Income Taxes

132,067

132,778

Investments in Unconsolidated Affiliates

33,812

31,256

Intangible Assets

58,863

60,227

Other Assets

43,595

50,133

Assets of Discontinued Operations – Non-Current

-

623,420

TOTAL

$1,410,722

$ 2,856,936

BWX TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

September 30,

December 31,

2015

2014

(Unaudited)

(In thousands, except share and per share amounts)

Current Liabilities:

Notes payable and current maturities of long-term debt

${body}#160;    11,250

${body}#160;     15,000            

Accounts payable

60,184

88,985

Accrued employee benefits

60,863

85,433

Accrued liabilities – other

54,135

44,232

Advance billings on contracts

140,925

107,437

Accrued warranty expense

15,985

15,889

Income taxes payable

34,627

15,778

Liabilities of discontinued operations – current

-

446,881

Total Current Liabilities

377,969

819,635

Long-Term Debt

288,750

285,000

Accumulated Postretirement Benefit Obligation

26,890

29,956

Environmental Liabilities

59,117

56,259

Pension Liability

303,540

308,927

Other Liabilities

22,972

43,126

Liabilities of Discontinued Operations – Non-Current

-

299,832

Commitments and Contingencies

Stockholders’ Equity:

Common stock, par value $0.01 per share, authorized 325,000,000 shares; issued 122,611,572 and 121,604,332 shares at September 30, 2015 and

December 31, 2014, respectively

1,226

1,216

Preferred stock, par value $0.01 per share, authorized 75,000,000 shares;

     No shares issued

-

-

Capital in excess of par value

15,964

775,393

Retained earnings

746,278

642,489

Treasury stock at cost 15,781,393 and 14,915,776 shares at September 30, 2015 and December 31, 2014, respectively

(446,562)

(423,990)

Accumulated other comprehensive income

732

3,596

   Stockholders’ Equity –  BWX Technologies, Inc.

317,638

998,704

   Noncontrolling interest

13,846

15,497

Total Stockholders’ Equity

331,484

1,014,201

TOTAL

$1,410,722

$ 2,856,936     

BWX TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended

Nine Months Ended

September 30,

September 30,

2015

2014

2015

2014

(Unaudited)

(In thousands, except share and per share amounts)

Revenues

${body}#160;  358,970

${body}#160; 337,352    

${body}#160; 1,051,592    

${body}#160; 1,055,256

Costs and Expenses:

Cost of operations

250,558

242,607

727,685

752,980

Research and development costs

1,518

3,877

8,999

50,498

Gains on asset disposals and impairments, net

-

(625)

(3)

(625)

Selling, general and administrative expenses

47,550

55,289

152,736

158,628

Special charges for restructuring activities

-

5,922

16,608

17,059

Income related to litigation proceeds

(65,728)

-

(65,728)

-

Costs to spin-off the Power Generation business

-

-

25,987

-

Total Costs and Expenses

233,898

307,070

866,284

978,540

Equity in Income of Investees

5,894

4,449

11,028

30,101

Operating Income

130,966

34,731

196,336

106,817

Other Income (Expense):

Interest income

30,028

145

30,262

376

Interest expense

(1,231)

(2,832)

(6,792)

(4,637)

Other – net

(1,666)

18,563

(2,950)

18,926

Total Other Income (Expense)

27,131

15,876

20,520

14,665

Income from continuing operations before provision for income taxes and noncontrolling interest

158,097

50,607

216,856

121,482

Provision for Income Taxes

51,589

10,853

76,789

27,395

Income (loss) from continuing operations before noncontrolling interest

106,508

39,754

140,067

94,087

Income (loss) from discontinued operations, net of tax

(2,474)

20,649

(8,311)

30,962

Net Income

${body}#160;    104,034  

${body}#160;    60,403

${body}#160;  131,756 

${body}#160;  125,049 

Net (Income) Loss Attributable to Noncontrolling Interest

(164)

811

224

7,646

Net Income Attributable to BWX Technologies, Inc.

${body}#160;    103,870  

${body}#160;    61,214 

${body}#160;  131,980 

${body}#160;  132,695 

Amounts Attributable to BWX Technologies, Inc.’s Common Shareholders:

    Income from continuing operations, net of tax

${body}#160;    106,344       

${body}#160;    40,626  

${body}#160;  140,397  

${body}#160;  101,987 

    Income (loss) from discontinued operations, net of tax

(2,474)

20,588

(8,417)

30,708

    Net Income Attributable to BWX Technologies, Inc.

${body}#160;    103,870   

${body}#160;    61,214  

${body}#160;  131,980  

${body}#160;  132,695 

Earnings per Common Share:

  Basic:

    Income from continuing operations

${body}#160;          0.99        

${body}#160;        0.38     

${body}#160;        1.31      

${body}#160;        0.93     

    Income (loss) from discontinued operations

(0.02)

0.19

(0.08)

0.28

    Net Income Attributable to BWX Technologies, Inc.

${body}#160;          0.97      

${body}#160;        0.57     

 ${body}#160;       1.23      

${body}#160;        1.22     

  Diluted:

    Income from continuing operations

${body}#160;          0.98        

${body}#160;        0.38     

${body}#160;        1.30     

${body}#160;        0.93     

    Income (loss) from discontinued operations

(0.02)

0.19

(0.08)

0.28

    Net Income Attributable to BWX Technologies, Inc.

${body}#160;          0.96      

${body}#160;        0.57     

${body}#160;        1.23     

${body}#160;        1.21     

Shares used in the computation of earnings per share:

    Basic

106,962,168

107,105,986

106,952,744

109,103,879

    Diluted

108,184,304

107,444,284

107,634,732

109,482,318

BWX TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended

 

September 30,

 

2015

2014

 

CASH FLOWS FROM OPERATING ACTIVITIES:

(Unaudited)

 (In thousands)

 

Net Income

${body}#160;    131,756

$ 125,049

 

Non-cash items included in net income from continuing operations:

 

Depreciation and amortization

65,010

57,400

 

Income of investees, net of dividends

(221)

16,920

 

Losses on asset disposals and impairments, net

26,441

3,870

 

Gain on exchange of USEC investment

-

(18,647)

 

In-kind research and development costs

-

5,830

 

Recognition of losses for pension and postretirement plans

3,587

12,952

 

Stock-based compensation and thrift plan expense

25,105

11,786

 

Excess tax benefits from stock-based compensation

(381)

(568)

 

Changes in assets and liabilities:

 

Accounts receivable

(273)

(62,220)

 

Accounts payable

(33,825)

(115,271)

 

Contracts in progress and advance billings on contracts

59,020

(74,214)

 

Inventories

(561)

138

 

Income taxes

(17,257)

(11,804)

 

Accrued and other current liabilities

5,417

13,206

 

Pension liability, accrued postretirement benefit obligation and employee benefits

(41,340)

(66,679)

 

Other, net

16,380

17,057

 

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

238,858

(85,195)

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

Decrease in restricted cash and cash equivalents

1,578

2,745

 

Purchases of property, plant and equipment

(52,193)

(55,877)

 

Acquisition of business, net of cash acquired

-

(127,705)

 

Purchase of intangible assets

-

(722)

 

Purchases of securities

(9,711)

(21,225)

 

Sales and maturities of securities

5,441

31,663

 

Proceeds from asset disposals

60

846

 

Investment in equity method investees

-

(4,900)

 

NET CASH USED IN INVESTING ACTIVITIES

(54,825)

(175,175)

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

Payment of short-term borrowing and long-term debt

-

(4,424)

 

Increase in short-term borrowing

-

2,855

 

Borrowings under the Credit Agreement

177,350

809,300

 

Repayments under Credit Agreement

(177,350)

(504,900)

 

Payment of debt issuance costs

(4,929)

(5,390)

 

Repurchase of common shares

(18,088)

(149,774)

 

Dividends paid to common shareholders

(28,105)

(32,799)

 

Exercise of stock options

3,646

3,854

 

Excess tax benefits from stock-based compensation

381

568

 

Cash divested in connection with spin-off of Power Generation business

(307,562)

-

 

Other

(332)

(202)

 

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES

(354,989)

119,088

 

EFFECTS OF EXCHANGE RATE CHANGES ON CASH

(6,092)

(7,913)

 

TOTAL DECREASE IN CASH AND CASH EQUIVALENTS

(177,048)

(149,195)

 

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

312,969

346,116

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

${body}#160;  135,921    

$ 196,921   

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

 

Cash paid during the period for:

 

Interest

${body}#160;        5,294       

${body}#160;    3,573      

 

Income taxes (net of refunds)

${body}#160;      82,054       

${body}#160;  52,845     

 

SCHEDULE OF NON-CASH INVESTING ACTIVITY:

 

Accrued capital expenditures included in accounts payable

${body}#160;        2,161        

${body}#160;    3,201       

 

BWX TECHNOLOGIES, INC.

BUSINESS SEGMENT INFORMATION

Three Months Ended

Nine Months Ended

September 30,

September 30,

2015

2014

2015

2014

(Unaudited)

(In thousands)

REVENUES:

Nuclear Operations

${body}#160;        303,304    

${body}#160;        297,489   

${body}#160;      879,493   

${body}#160;    877,141   

Technical Services

21,261

20,236

61,434

70,706

Nuclear Energy

34,927

21,529

113,350

114,236

Other

-

-

-

278

Adjustments and Eliminations

(522)

(1,902)

(2,685)

(7,105)

 

TOTAL

${body}#160;        358,970

${body}#160;        337,352    

${body}#160;   1,051,592

${body}#160; 1,055,256   

 

SEGMENT INCOME:

Nuclear Operations

${body}#160;          62,720      

${body}#160;          61,893      

${body}#160;      191,877   

${body}#160;    180,103   

Technical Services

8,340

4,951

15,475

34,818

Nuclear Energy

1,382

(6,698)

79

(4,627)

Other

(2,357)

(5,140)

(12,015)

(63,782)

SUBTOTAL

${body}#160;          70,085      

${body}#160;          55,006      

${body}#160;      195,416   

${body}#160;    146,512   

Corporate

(4,847)

(5,286)

(20,052)

(13,569)

Income Related to Litigation Proceeds

65,728

-

65,728

-

Special Charges for Restructuring Activities

-

(5,922)

(16,608)

(17,059)

Cost to Spin-Off Power Generation Business

-

-

(25,987)

-

Mark to Market Adjustment

-

(9,067)

(2,161)

(9,067)

TOTAL

${body}#160;        130,966      

${body}#160;          34,731      

${body}#160;      196,336     

${body}#160;    106,817    

 

DEPRECIATION AND AMORTIZATION:

Nuclear Operations

${body}#160; 9,613

${body}#160; 7,380

${body}#160; 28,841

${body}#160; 21,037

Technical Services

10

-

11

1

Nuclear Energy

1,542

1,614

4,936

4,968

Other

-

263

550

712

Corporate

2,130

3,204

9,214

9,489

 

TOTAL

${body}#160;   13,295

${body}#160;   12,461

${body}#160;    43,552

${body}#160;    36,207

 

CAPITAL EXPENDITURES:

Nuclear Operations

${body}#160; 8,715

${body}#160; 7,101

${body}#160; 24,667

${body}#160; 24,210

Technical Services

-

-

-

-

Nuclear Energy

1,543

4,852

4,197

13,089

Other

-

99

-

1,983

Corporate

1,334

1,215

12,095

5,709

 

TOTAL

${body}#160;   11,592

${body}#160;   13,267

${body}#160;    40,959

${body}#160;    44,991

 

BWX TECHNOLOGIES, INC.

BUSINESS SEGMENT INFORMATION

Three Months Ended

Nine Months Ended

September 30,

September 30,

2015

2014

2015

2014

(Unaudited)

(In thousands)

BACKLOG:

Nuclear Operations

${body}#160; 2,451,945

${body}#160; 2,376,438

${body}#160; 2,451,945

${body}#160; 2,376,438

Technical Services

5,712

4,475

5,712

4,475

Nuclear Energy

341,952

273,415

341,952

273,415

TOTAL

${body}#160; 2,799,609

${body}#160; 2,654,328

${body}#160; 2,799,609

${body}#160; 2,654,328

BOOKINGS:

Nuclear Operations

${body}#160;   155,970

${body}#160;   93,426

${body}#160; 550,760

${body}#160;    877,434

Technical Services

14,273

12,523

64,443

70,155

Nuclear Energy (1)

994

100,837

194,945

238,863

 

TOTAL

${body}#160; 171,237

${body}#160; 206,786

${body}#160; 810,148

${body}#160; 1,186,452

(1) Nuclear Energy’s bookings are net of unfavorable currency translation adjustments affecting backlog in the third quarter, totaling $27.9 million.