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Section 1: 8-K (8-K)

Document


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): November 6, 2018

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, Virginia
 
 
 
24504
(Address of principal executive offices)
 
 
 
(Zip Code)

Registrant’s telephone number, including area code (980) 365-4300
 _____________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
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))
Indicate by check mark whether the registrant is an emerging growth company as defined in 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 November 6, 2018, we issued a press release announcing our financial results for the third quarter ended September 30, 2018.  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    Earnings Release dated November 6, 2018.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
BWX TECHNOLOGIES, INC.
 
 
 
 
By:
 
/s/ Jason S. Kerr
 
 
 
Jason S. Kerr
 
 
 
Vice President and Chief Accounting Officer




November 6, 2018


(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
 
395661549_erheadera15.jpg


BWX Technologies Reports Third Quarter 2018 Results;
Reiterates Long-Term Guidance
3Q18 revenue growth of 1.5%; 3Q18 orders up significantly; backlog at $3.8 billion
3Q18 GAAP EPS of $0.78 and non-GAAP EPS of $0.40, each inclusive of a $0.21 negative impact for missile tube reserves
Returned $79 million to shareholders in 3Q18; approved a new $250 million share repurchase authorization
Updated 2018 guidance: non-GAAP EPS in a range of $2.23 to $2.27, revenue of approximately $1.8 billion
Reiterated long-term guidance of low double-digit EPS growth

Lynchburg, VA - November 6, 2018 - BWX Technologies, Inc. (NYSE: BWXT) ("BWXT", "we", "us" or the "Company") reported third quarter 2018 revenue of $426 million, a 1.5% increase compared to $419 million in the third quarter of 2017. GAAP net income for the third quarter 2018 was $77.9 million, or $0.78 per diluted share, compared to net income of $46.6 million, or $0.46 per diluted share, in the prior-year quarter. Non-GAAP net income for the third quarter 2018 was $40.1 million, or $0.40 per diluted share. A reconciliation of non-GAAP results is detailed in Exhibit 1.

"We continue to exhibit top-line strength while building backlog," said Rex D. Geveden, president and chief executive officer. "Third quarter results were negatively impacted by a reserve on missile tubes and increased interest expense; however, our long-term outlook remains unchanged. We have updated our 2018 guidance and continue to reiterate our low double-digit EPS CAGR based on our superior competitive positioning, robust organic growth opportunities, and balance sheet capacity.”

"We made substantial progress during the quarter on the missile tube welding issue. The problem is fully characterized, and the required remediations are understood. Accordingly, we have taken a charge in the third quarter to account for those items. Excluding this charge, third quarter NOG margins would have been 21.7%, or about 120 basis points higher than the third quarter of 2017."

Third Quarter 2018 Segment Results
Nuclear Operations Group (NOG) segment revenue was $319 million for the third quarter of 2018, a 1.6% decrease from the prior-year period driven primarily by lower missile tube revenue partially offset by an increase in naval nuclear fuel and downblending services. NOG operating income was $45.6 million in the third quarter of 2018, down 31% compared with the prior-year period primarily driven by a $26.7 million charge for re-work related to missile tubes. Third quarter 2018 segment operating margin was 14.3%.




Nuclear Power Group (NPG) segment revenue was $79.2 million for the third quarter of 2018, a 15.4% increase from the prior-year period driven by an increase in field services, fuel manufacturing and the medical radioisotope acquisition. NPG operating income was $9.1 million in the third quarter of 2018, a 7.6% increase from the prior-year period. Third quarter 2018 segment operating margin was 11.4%.

Nuclear Services Group (NSG) segment operating income was $6.5 million for the third quarter of 2018 compared with $0.8 million for third quarter of 2017, primarily driven by an increase in operational performance, lower costs and new contract starts.

Liquidity and Debt
The Company utilized cash in operating activities of $25.8 million in the third quarter of 2018, inclusive of $118.1 million of voluntary pension contributions, compared with cash generated from operating activities of $80.7 million in the prior-year period. At the end of the third quarter 2018, the Company’s cash and short-term investments position, net of restricted cash, was $68.9 million.

As of September 30, 2018, the Company had gross debt of $781.2 million and $67.7 million in letters of credit issued under the Company's revolving credit facility. Gross debt included $400.0 million in senior notes, $291.2 million in term loans and $90.0 million in borrowings under the Company’s revolving credit facility. As a result, the Company had $342.3 million in remaining availability under its revolving credit facility.

Capital Deployment
The Company returned $79 million to shareholders during the third quarter 2018, including $63 million in share repurchases and $16 million in dividends. On November 6, 2018, our Board of Directors declared a quarterly cash dividend of $0.16 per common share. The dividend will be payable on December 13, 2018, to shareholders of record on November 20, 2018. The Board of Directors also approved a $250 million share repurchase authorization, resulting in a total available share repurchase authorization of $337 million.

2018 Guidance
BWXT revised its guidance for 2018:
Total Company revenue is now expected to be approximately $1.8 billion
Non-GAAP EPS is now expected to be in a range of $2.23 to $2.27 (excluding mark-to-market of pension and post-retirement benefits)
NOG revenue is now expected to be approximately $1.3 billion with operating margin in the high teens inclusive of CAS pension reimbursements and missile tube reserves
NPG revenue is now expected to be approximately $370 million with operating margin of approximately 14%
Non-GAAP effective tax rate is now expected in a range of 22% to 23%

BWXT reiterated the following guidance for 2018:
NSG operating income of approximately $20 million
Research and development costs of approximately $15 million
Corporate unallocated costs of approximately $20 million
Other income primarily related to pension and other post-employment benefits of $30 to $35 million
Capital expenditures of approximately $150 million, primarily to support growth in Navy business
Depreciation and amortization of approximately $60 million




Long-term Guidance
BWXT reiterated long-term guidance that, beyond 2017, and excluding the benefit of tax reform, the Company anticipates an EPS Compound Annual Growth Rate (CAGR) in the low-double digits over a three to five year period based on a robust organic growth strategy and balance sheet capacity.

Conference Call to Discuss Third Quarter 2018 Results

Date:            Wednesday, November 7, 2018, at 8:30 a.m. EDT
Live Webcast:    Investor Relations section of website at www.bwxt.com

Forward-Looking Statements
BWXT cautions that this release contains forward-looking statements, including, without limitation, statements relating to backlog, to the extent they may be viewed as an indicator of future revenues; the anticipated benefits of our acquisition of Nordion’s medical isotope business; timing of future revenues from the acquisition of Nordion’s medical isotope business and new medical radioisotope business; the timing and impact of the missile tube welding issue; our plans and expectations for the NOG, NPG and NSG segments; and our 2018 guidance and long-term guidance. 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 power; capital priorities of power generating utilities; 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, 2017 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
Headquartered in Lynchburg, Va., BWX Technologies, Inc. (NYSE:BWXT) is a leading supplier of nuclear components and fuel to the U.S. government; provides technical and management services to support the U.S. government in the operation of complex facilities and environmental remediation activities; and supplies precision manufactured components, services and fuel for the commercial nuclear power industry. With approximately 6,250 employees, BWXT has eleven major operating sites in the U.S. and Canada. In addition, BWXT joint ventures provide management and operations at more than a dozen U.S. Department of Energy and two NASA facilities. Follow us on Twitter @BWXTech and learn more at www.bwxt.com.

Investor Contact:
 
Media Contact:
Alan Nethery
 
Jud Simmons
Vice President and Chief Investor Relations Officer
 
Director, Media and Public Relations
980-365-4300
Investors@bwxt.com
 
434-522-6462
hjsimmons@bwxt.com




EXHIBIT 1

BWX TECHNOLOGIES, INC.
RECONCILIATION OF NON-GAAP OPERATING INCOME AND EARNINGS PER SHARE(1)(2)(3) 
(In millions, except per share amounts)
 
 
Three Months Ended September 30, 2018
 
 
GAAP
 
Pension & OPEB MTM (Gain) / Loss
 
Acquisition Related Costs
 
Loss on Forward Contracts
 
One-time Tax Benefit
 
Missile tube reserve
 
 
Non-GAAP
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
$
50.4

 
$

 
$
0.9

 
$

 
$

 
 
 
 
$
51.3

Other Income (Expense)
34.2

 
(35.1
)
 

 
1.3

 

 
 
 
 
0.3

Provision for Income Taxes
(6.5
)
 
8.1

 
(0.2
)
 
(0.3
)
 
(12.5
)
 
 
 
 
(11.3
)
Net Income
78.1

 
(27.0
)
 
0.7

 
1.0

 
(12.5
)
 
 
 
 
40.3

Net Income Attributable to Noncontrolling Interest
(0.2
)
 

 

 

 

 
 
 
 
(0.2
)
Net Income Attributable to BWXT
$
77.9

 
$
(27.0
)
 
$
0.7

 
$
1.0

 
$
(12.5
)
 
 
 
 
$
40.1

 
 
 
 
 
 
 
 
 
 

 
 
 
 
 

Diluted Shares Outstanding
100.4

 
 
 
 
 
 
 
 
 
 
 
 
100.4

Diluted Earnings per Common Share
$
0.78

 
$
(0.27
)
 
$
0.01

 
$
0.01

 
$
(0.12
)
 
 
 
 
$
0.40

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 

Effective Tax Rate
7.7%

 
 
 
 
 
 
 
 
 
 
 
 
22.0%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOG segment margins(4)
14.3%

 
 
 
 
 
 
 
 
 
7.4%
 
 
21.7%

 
 
Three Months Ended September 30, 2017
 
 
GAAP
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
$
66.8

 
 
 
 
 
 
 
 
 
 
 
 
$
66.8

Other Income (Expense)
3.8

 
 
 
 
 
 
 
 
 
 
 
 
3.8

Provision for Income Taxes
(23.9
)
 
 
 
 
 
 
 
 
 
 
 
 
(23.9
)
Net Income
46.7

 
 
 
 
 
 
 
 
 
 
 
 
46.7

Net Income Attributable to Noncontrolling Interest
(0.1
)
 
 
 
 
 
 
 
 
 
 
 
 
(0.1
)
Net Income Attributable to BWXT
$
46.6

 
 
 
 
 
 
 
 
 
 
 
 
$
46.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted Shares Outstanding
100.3

 
 
 
 
 
 
 
 
 
 
 
 
100.3

Diluted Earnings per Common Share
$
0.46

 
 
 
 
 
 
 
 
 
 
 
 
$
0.46

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 

Effective Tax Rate
33.9%

 
 
 
 
 
 
 
 
 
 
 
 
33.9%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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)
Additional information about the missile tube reserve impact to Revenue, Operating Income and Operating Margin for 3Q and YTD can be found in our most recent Investor Briefing on the BWXT website at www.bwxt.com/investors.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




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)
 
 
Nine Months Ended September 30, 2018
 
 
GAAP
 
Pension & OPEB MTM (Gain) / Loss
 
Acquisition Related Costs
 
Recognition of Debt Issuance Costs from Former Credit Facility
 
Gain on Forward Contracts
 
One-Time Tax Benefit
 
 
Non-GAAP
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
$
201.8

 
$

 
$
2.5

 
$

 
$

 
 
 
 
$
204.3

Other Income (Expense)
47.0

 
(35.1
)
 

 
2.4

 
(4.7
)
 
 
 
 
9.5

Provision for Income Taxes
(43.6
)
 
8.1

 
(0.6
)
 
(0.6
)
 
1.2

 
(12.5
)
 
 
(47.9
)
Net Income
205.2

 
(27.0
)
 
1.9

 
1.8

 
(3.5
)
 
(12.5
)
 
 
166.0

Net Income Attributable to Noncontrolling Interest
(0.2
)
 

 

 

 

 
 
 
 
(0.2
)
Net Income Attributable to BWXT
$
205.0

 
$
(27.0
)
 
$
1.9

 
$
1.8

 
$
(3.5
)
 
$
(12.5
)
 
 
$
165.8

 
 
 
 

 
 

 
 

 
 
 
 
 
 
 

Diluted Shares Outstanding
100.5

 
 
 
 
 
 
 
 
 
 
 
 
100.5

Diluted Earnings per Common Share
$
2.04

 
$
(0.27
)
 
$
0.02

 
$
0.02

 
$
(0.03
)
 
$
0.12

 
 
$
1.65

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 

Effective Tax Rate
17.5%

 
 
 
 
 
 
 
 
 
 
 
 
22.4%

 
 
Nine Months Ended September 30, 2017
 
 
GAAP
 
Framework Agreement & Litigation
 
Impairment (Gains) / Charges
 
 
 
 
 
 
 
 
Non-GAAP
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
$
228.5

 
$
(7.9
)
 
$

 
 
 
 
 
 
 
 
$
220.6

Other Income (Expense)
11.0

 

 
(0.4
)
 
 
 
 
 
 
 
 
10.6

Provision for Income Taxes
(75.6
)
 
2.8

 
0.0

 
 
 
 
 
 
 
 
(72.7
)
Net Income
163.9

 
(5.1
)
 
(0.4
)
 
 
 
 
 
 
 
 
158.4

Net Income Attributable to Noncontrolling Interest
(0.4
)
 

 

 
 
 
 
 
 
 
 
(0.4
)
Net Income Attributable to BWXT
$
163.5

 
$
(5.1
)
 
$
(0.4
)
 
 
 
 
 
 
 
 
$
158.1

 
 
 
 

 
 

 
 
 
 
 
 
 
 
 

Diluted Shares Outstanding
100.4

 
 
 
 
 
 
 
 
 
 
 
 
100.4

Diluted Earnings per Common Share
$
1.63

 
$
(0.05
)
 
$
(0.00
)
 
 
 
 
 
 
 
 
$
1.57

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 

Effective Tax Rate
31.6%

 
 
 
 
 
 
 
 
 
 
 
 
31.5%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Tables may not foot due to rounding.
(2)
BWXT is providing non-GAAP information regarding certain of its historical results and guidance on future earnings per share to supplement the results provided in accordance with GAAP and it should not be considered superior to, or as a substitute for, the comparable GAAP measures. BWXT believes the non-GAAP measures provide meaningful insight and transparency into the Company’s operational performance and provides these measures to investors to help facilitate comparisons of operating results with prior periods and to assist them in understanding BWXT's ongoing operations.
(3)
BWXT has not included a reconciliation of provided non-GAAP guidance to the comparable GAAP measures due to the difficulty of estimating any mark-to-market adjustments for pension and post-retirement benefits, which are determined at the end of the year.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





BWX TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

ASSETS
 
 
September 30,
2018
 
December 31,
2017
 
 
(Unaudited)
(In thousands)
Current Assets:
 
 
 
 
Cash and cash equivalents
 
$
66,125

 
$
203,404

Restricted cash and cash equivalents
 
4,359

 
7,105

Investments
 
2,732

 
2,934

Accounts receivable – trade, net
 
194,575

 
189,217

Accounts receivable – other
 
46,183

 
19,365

Contracts in progress
 
326,355

 
420,628

Other current assets
 
44,528

 
30,437

Total Current Assets
 
684,857

 
873,090

Property, Plant and Equipment
 
1,073,893

 
1,013,141

Less accumulated depreciation
 
684,530

 
664,512

Net Property, Plant and Equipment
 
389,363

 
348,629

Investments
 
8,604

 
9,301

Goodwill
 
278,939

 
218,331

Deferred Income Taxes
 
45,105

 
86,740

Investments in Unconsolidated Affiliates
 
62,160

 
43,266

Intangible Assets
 
240,081

 
110,405

Other Assets
 
26,595

 
22,577

TOTAL
 
$
1,735,704

 
$
1,712,339






BWX TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
September 30,
2018
 
December 31,
2017
 
 
(Unaudited)
(In thousands, except share
and per share amounts)
Current Liabilities:
 
 
 
 
Current maturities of long-term debt
 
$
14,745

 
$
27,870

Accounts payable
 
100,004

 
93,421

Accrued employee benefits
 
74,398

 
82,477

Accrued liabilities – other
 
53,508

 
64,738

Advance billings on contracts
 
104,646

 
246,192

Accrued warranty expense
 
12,426

 
13,428

Total Current Liabilities
 
359,727

 
528,126

Long-Term Debt
 
756,492

 
481,059

Accumulated Postretirement Benefit Obligation
 
20,111

 
21,368

Environmental Liabilities
 
89,429

 
79,786

Pension Liability
 
102,093

 
296,444

Other Liabilities
 
15,351

 
19,799

Commitments and Contingencies
 
 
 
 
Stockholders' Equity:
 
 
 
 
Common stock, par value $0.01 per share, authorized 325,000,000 shares; issued 125,796,671 and 125,381,591 shares at September 30, 2018 and December 31, 2017, respectively
 
1,258

 
1,254

Preferred stock, par value $0.01 per share, authorized 75,000,000 shares; No shares issued
 

 

Capital in excess of par value
 
112,300

 
98,843

Retained earnings
 
1,159,552

 
990,652

Treasury stock at cost, 27,070,536 and 25,964,088 shares at September 30, 2018 and December 31, 2017, respectively
 
(884,200
)
 
(814,809
)
Accumulated other comprehensive income
 
3,542

 
9,454

Stockholders' Equity – BWX Technologies, Inc.
 
392,452

 
285,394

Noncontrolling interest
 
49

 
363

Total Stockholders' Equity
 
392,501

 
285,757

TOTAL
 
$
1,735,704

 
$
1,712,339





BWX TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2018
 
2017
 
2018
 
2017
 
 
(Unaudited)
(In thousands, except share
and per share amounts)
Revenues
 
$
425,507

 
$
419,360

 
$
1,321,891

 
$
1,257,600

Costs and Expenses:
 
 
 
 
 
 
 
 
Cost of operations
 
326,314

 
302,267

 
971,887

 
883,839

Research and development costs
 
3,959

 
2,597

 
11,673

 
5,268

Losses (gains) on asset disposals and impairments, net
 
243

 
(2
)
 
(2
)
 
(33
)
Selling, general and administrative expenses
 
53,919

 
51,351

 
159,199

 
150,881

Total Costs and Expenses
 
384,435

 
356,213

 
1,142,757

 
1,039,955

Equity in Income of Investees
 
9,323

 
3,630

 
22,698

 
10,832

Operating Income
 
50,395

 
66,777

 
201,832

 
228,477

Other Income (Expense):
 
 
 
 
 
 
 
 
Interest income
 
1,121

 
402

 
2,340

 
750

Interest expense
 
(7,925
)
 
(3,837
)
 
(19,354
)
 
(11,260
)
Other – net
 
40,968

 
7,252

 
63,984

 
21,487

Total Other Income (Expense)
 
34,164

 
3,817

 
46,970

 
10,977

Income before Provision for Income Taxes
 
84,559

 
70,594

 
248,802

 
239,454

Provision for Income Taxes
 
6,482

 
23,901

 
43,578

 
75,556

Net Income
 
$
78,077

 
$
46,693

 
$
205,224

 
$
163,898

Net Income Attributable to Noncontrolling Interest
 
(158
)
 
(140
)
 
(201
)
 
(364
)
Net Income Attributable to BWX Technologies, Inc.
 
$
77,919

 
$
46,553

 
$
205,023

 
$
163,534

Earnings per Common Share:
 
 
 
 
 
 
 
 
Basic:
 
 
 
 
 
 
 
 
Net Income Attributable to BWX Technologies, Inc.
 
$
0.78

 
$
0.47

 
$
2.06

 
$
1.65

Diluted:
 
 
 
 
 
 
 
 
Net Income Attributable to BWX Technologies, Inc.
 
$
0.78

 
$
0.46

 
$
2.04

 
$
1.63

Shares used in the computation of earnings per share:
 
 
 
 
 
 
 
 
Basic
 
99,421,031

 
99,328,677

 
99,542,933

 
99,313,264

Diluted
 
100,420,766

 
100,260,255

 
100,501,597

 
100,367,383





BWX TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Nine Months Ended September 30,
 
 
2018
 
2017
 
 
(Unaudited) (In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
Net Income
 
$
205,224

 
$
163,898

Non-cash items included in net income from continuing operations:
 
 
 
 
Depreciation and amortization
 
43,692

 
42,135

Income of investees, net of dividends
 
(8,471
)
 
731

Gains on asset disposals and impairments, net
 
(2
)
 
(33
)
Gain on forward contracts
 
(4,743
)
 

Recognition of debt issuance costs from Former Credit Facility
 
2,441

 

Provision for deferred taxes
 
38,685

 
17,501

Recognition of (gains) losses for pension and postretirement plans
 
(33,699
)
 
1,320

Stock-based compensation expense
 
8,519

 
9,879

Changes in assets and liabilities:
 
 
 
 
Accounts receivable
 
3,384

 
(17,748
)
Accounts payable
 
2,061

 
(10,978
)
Contracts in progress and advance billings on contracts
 
(35,049
)
 
(2,963
)
Income taxes
 
(46,511
)
 
21,587

Accrued and other current liabilities
 
3,344

 
(33,736
)
Pension liability, accrued postretirement benefit obligation and employee benefits
 
(184,898
)
 
(47,109
)
Other, net
 
(2,418
)
 
345

NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES
 
(8,441
)
 
144,829

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
Purchases of property, plant and equipment
 
(60,488
)
 
(49,361
)
Acquisition of business
 
(212,993
)
 

Purchases of securities
 
(3,111
)
 
(3,237
)
Sales and maturities of securities
 
3,378

 
12,406

Investments, net of return of capital, in equity method investees
 
(9,037
)
 
2,142

Proceeds from asset disposals
 
499

 
142

Other, net
 
4,743

 
(24
)
NET CASH USED IN INVESTING ACTIVITIES
 
(277,009
)
 
(37,932
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
Borrowings of long-term debt
 
901,300

 
73,600

Repayments of long-term debt
 
(624,987
)
 
(94,320
)
Payment of debt issuance costs
 
(9,443
)
 

Repurchase of common shares
 
(62,558
)
 

Dividends paid to common shareholders
 
(48,014
)
 
(31,072
)
Exercise of stock options
 
3,511

 
16,019

Cash paid for shares withheld to satisfy employee taxes
 
(5,402
)
 
(7,389
)
Other
 
(515
)
 
(415
)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
 
153,892

 
(43,577
)
EFFECTS OF EXCHANGE RATE CHANGES ON CASH
 
(8,464
)
 
15,290

TOTAL (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS
 
(140,022
)
 
78,610

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
 
213,144

 
134,600

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT END OF PERIOD
 
$
73,122

 
$
213,210

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
 
 
 
 
Cash paid during the period for:
 
 
 
 
Interest
 
$
13,325

 
$
10,762

Income taxes (net of refunds)
 
$
51,779

 
$
36,425

SCHEDULE OF NON-CASH INVESTING ACTIVITY:
 
 
 
 
Accrued capital expenditures included in accounts payable
 
$
13,457

 
$
7,680





BWX TECHNOLOGIES, INC.
BUSINESS SEGMENT INFORMATION
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2018
 
2017
 
2018
 
2017
 
 
(Unaudited)
(In thousands)
REVENUES:
 
 
 
 
 
 
 
 
Nuclear Operations Group
 
$
319,325

 
$
324,545

 
$
968,096

 
$
962,492

Nuclear Services Group
 
28,366

 
27,507

 
90,995

 
100,146

Nuclear Power Group
 
79,162

 
68,621

 
267,675

 
200,864

Adjustments and Eliminations
 
(1,346
)
 
(1,313
)
 
(4,875
)
 
(5,902
)
TOTAL
 
$
425,507

 
$
419,360

 
$
1,321,891

 
$
1,257,600

 
 
 
 
 
 
 
 
 
SEGMENT INCOME:
 
 
 
 
 
 
 
 
Nuclear Operations Group
 
$
45,580

 
$
66,459

 
$
180,283

 
$
203,503

Nuclear Services Group
 
6,494

 
776

 
11,182

 
16,577

Nuclear Power Group
 
9,063

 
8,426

 
38,637

 
27,094

Other
 
(5,142
)
 
(2,255
)
 
(13,542
)
 
(4,937
)
SUBTOTAL
 
55,995

 
73,406

 
216,560

 
242,237

Unallocated Corporate
 
(5,600
)
 
(6,629
)
 
(14,728
)
 
(13,760
)
TOTAL
 
$
50,395

 
$
66,777

 
$
201,832

 
$
228,477

 
 
 
 
 
 
 
 
 
DEPRECIATION AND AMORTIZATION:
 
 
 
 
 
 
 
 
Nuclear Operations Group
 
$
8,102

 
$
7,706

 
$
24,004

 
$
23,261

Nuclear Services Group
 
792

 
914

 
2,600

 
2,788

Nuclear Power Group
 
4,615

 
3,436

 
11,694

 
10,243

Other
 

 

 

 

Corporate
 
1,763

 
1,880

 
5,394

 
5,843

TOTAL
 
$
15,272

 
$
13,936

 
$
43,692

 
$
42,135

 
 
 
 
 
 
 
 
 
CAPITAL EXPENDITURES:
 
 
 
 
 
 
 
 
Nuclear Operations Group
 
$
22,047

 
$
18,851

 
$
50,471

 
$
43,090

Nuclear Services Group
 
71

 
178

 
306

 
489

Nuclear Power Group
 
595

 
1,047

 
2,317

 
3,235

Other
 
286

 

 
1,340

 

Corporate
 
3,529

 
538

 
6,054

 
2,547

TOTAL
 
$
26,528

 
$
20,614

 
$
60,488

 
$
49,361






BWX TECHNOLOGIES, INC.
BUSINESS SEGMENT INFORMATION
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2018
 
2017
 
2018
 
2017
 
 
(Unaudited)
(In thousands)
BACKLOG:
 
 
 
 
 
 
 
 
Nuclear Operations Group
 
$
2,939,464

 
$
2,970,088

 
$
2,939,464

 
$
2,970,088

Nuclear Services Group
 
26,211

 
37,520

 
26,211

 
37,520

Nuclear Power Group
 
868,258

 
527,708

 
868,258

 
527,708

TOTAL
 
$
3,833,933

 
$
3,535,316

 
$
3,833,933

 
$
3,535,316

 
 
 
 
 
 
 
 
 
BOOKINGS:
 
 
 
 
 
 
 
 
Nuclear Operations Group
 
$
571,762

 
$
32,272

 
$
646,698

 
$
446,771

Nuclear Services Group
 
10,786

 
43,004

 
86,109

 
108,295

Nuclear Power Group
 
56,800

 
115,718

 
502,085

 
255,070

TOTAL
 
$
639,348

 
$
190,994

 
$
1,234,892

 
$
810,136




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