Babcock & Wilcox Enterprises, Inc. Q1 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Babcock & Wilcox Q1 2020 Earnings Summary

Overview: B&W reported Q1 2020 results amid COVID-19 impacts and completed a critical 2-year refinancing. Focus remains on core technologies, cost management, and long-term growth despite typical Q1 seasonality and pandemic-related delays. Bookings were flat vs. Q1 2019 with a robust global pipeline noted.

Consolidated Financial Highlights (vs. Q1 2019)

  • Revenues: $148.6 million, down 36% from $246.9 million (driven by lower large construction projects, SPIG U.S. wind-down, COVID restrictions, and Loibl divestiture).
  • GAAP Operating Loss: $10.3 million (including $6.2 million in restructuring/settlement/advisory costs), improved from $32.0 million loss.
  • Adjusted EBITDA: +$0.7 million, improved from -$4.4 million.
  • Interest Expense: $22.1 million, up from $11.1 million (due to debt amortization/accretion).

Segment Performance

  • Babcock & Wilcox: Revenues $122.0 million (down from $188.6 million). Adjusted EBITDA $10.7 million (+17.2% from $9.1 million); margin 8.7% (vs. 4.8%). Adjusted gross profit $32.9 million (+5.7%); gross margin 27% (vs. 16.5%). Improvements from higher parts margins and cost/restructuring initiatives, offset by volume decline.

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Operator: Ladies and gentlemen, thank you for standing by, and welcome to the Babcock & Wilcox First Quarter 2020 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to one of your speakers for today, Megan Wilson, Vice President of Investor Relations. Please go ahead, ma'am. Megan Wilson: Thank you, Carol, and good morning, everyone. Welcome to Babcock & Wilcox Enterprises First Quarter 2020 Earnings Conference Call. I'm Megan Wilson, Vice President of Investor Relations at B&W. Joining me this morning are Kenny Young, B&W's Chief Executive Officer; and Lou Salamone, Chief Financial Officer, to discuss our first quarter results. During this call, certain statements we make will be forward-looking. These statements are subject to risks and uncertainties, including those set forth in our safe harbor provision for forward-looking statements that can be found at the end of our earnings press release and also in our Form 10-Q that will be filed today and our Form 10-K that is on file with the SEC and provide further detail about the risks related to our business. Additionally, except as required by law, we undertake no obligation to update any forward-looking statements. We also provide non-GAAP information regarding certain of our historical results to supplement the results provided in accordance with GAAP. This information should not be considered superior to, or as a substitute for, the comparable GAAP measures. A reconciliation

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