Babcock & Wilcox Enterprises, Inc. Q2 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

Financial Highlights (vs. Q2 2020 unless noted)

  • Revenues: $202.9 million, +50% due to higher construction activity (despite ongoing COVID-19 project delays and travel restrictions across segments).
  • Bookings: $168 million, +100% improvement; ended Q2 with $500 million backlog (excludes shorter-lead-time parts & services).
  • Adjusted EBITDA: $15.1 million (7-fold improvement vs. $1.7 million in Q2 2020; +78% vs. Q1 2021). GAAP operating income: $2.8 million (vs. $7.7 million operating loss in Q2 2020), including $6.9 million in restructuring/settlement/advisory costs.
  • Cash Flow & Balance Sheet: Operating cash use of $32.1 million (primarily interest payments). Gross debt reduced to $170.9 million; cash/restricted cash $143.6 million. Net leverage: 0.41x LTM adjusted EBITDA. Net interest expense: $7.9 million (vs. $15.3 million in Q2 2020). Completed preferred stock offerings (~$106.4 million net proceeds) and new 4-year PNC $50M ABL + $125M LC facility (maturity June 2025), reducing total secured debt by >$347 million.
  • Cost Savings: Additional $4 million implemented in Q2 (total $137 million); targeting incremental $5 million in H2 2021. Targeting 10-12% EBITDA margins over next few years.

Strategic & Operational Updates

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Operator: Good day and thank you for standing by. Welcome to the Babcock & Wilcox Q2 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation there will be a question-and-answer session. As a reminder, this conference is being recorded. I would now like to hand the conference over to your speaker today, Megan Wilson, Vice President of Investor Relations. Thank you. Please, go ahead. Megan Wilson: Thank you, Sadie, and good afternoon, everyone. Welcome to Babcock & Wilcox Enterprises' Second Quarter 2021 Earnings Conference Call. I'm Megan Wilson, Vice President of Investor Relations at B&W. Joining me this afternoon are Kenny Young, B&W's Chairman and Chief Executive Officer; and Louis Salamone, Chief Financial Officer, to discuss our second 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 in our quarterly report on Form 10-Q filed this afternoon 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 and supplement the results pr

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