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Section 1: 8-K (8-K)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 _____________________________________________
 
FORM 8-K
 _____________________________________________
 
CURRENT REPORT
 _____________________________________________

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 25, 2019

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 February 25, 2019, we issued a press release announcing our financial results for the fourth quarter ended December 31, 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 February 25, 2019.

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




February 25, 2019


(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
 
396866705_erheadera16.jpg


BWX Technologies Concludes 2018 with Record Fourth Quarter Results; Positioned for Continued Growth in 2019
4Q18 GAAP EPS of $0.22; non-GAAP EPS of $0.74; revenue up 11% vs. 4Q17
2018 GAAP EPS of $2.27; non-GAAP EPS of $2.39; revenue up 7% vs. 2017
Returned $279 million of cash to shareholders in 2018
Announces 6% quarterly dividend increase to $0.17 per share
Issues 2019 guidance: non-GAAP EPS of ~$2.50; revenue growth of ~6%
Reiterates 3-5 year, low-double-digit non-GAAP EPS CAGR from 2017 results
Lynchburg, VA - February 25, 2019 - BWX Technologies, Inc. (NYSE: BWXT) ("BWXT", "we", "us" or the "Company") reported record fourth quarter 2018 revenue of $478 million, an 11% increase compared with $430 million in the fourth quarter of 2017. GAAP net income for the fourth quarter 2018 was $21.9 million, or $0.22 per diluted share, compared with a net loss of $15.7 million, or a loss of $0.16 per share, in the prior-year quarter. Non-GAAP net income for the fourth quarter 2018 was $73.0 million, or $0.74 per diluted share, compared with $47.5 million, or $0.47 per diluted share, in the prior-year quarter. A reconciliation of non-GAAP results is detailed in Exhibit 1.

Full year 2018 revenue was $1.8 billion, a 6.6% increase compared to $1.7 billion in 2017. GAAP net income for the full year 2018 was $227.0 million, or $2.27 per diluted share, which includes a $0.25 unfavorable impact of non-cash, mark-to-market loss for pension and other post-retirement benefits, compared with $147.8 million, or $1.47 per diluted share, in 2017. Non-GAAP net income for the full year 2018 was $238.8 million, or $2.39 per diluted share, up 17% compared with $205.6 million, or $2.05 per diluted share, in the prior year.

"We had an impressive finish to 2018 with record fourth quarter financial results," said Rex D. Geveden, president and chief executive officer. "Despite some operational challenges and pension and interest headwinds especially in the second half, 2018 was yet another stride forward in our aggressive growth plans. We enter 2019 well positioned for continued revenue and earnings growth as we progress toward the achievement of our long-term guidance.”

"Strategic focus areas for 2019 are to ramp up production of the Columbia-class submarine, complete the pricing agreement for a second Ford-Class carrier, industrialize our radioisotope technology, and capitalize future organic growth opportunities.”




Fourth Quarter and Full Year 2018 Segment Results
Nuclear Operations Group (NOG) segment revenue was $351 million for the fourth quarter of 2018, a 13% increase from the prior-year period, driven primarily by accelerated revenue through favorable EAC changes that included increased future volume assumptions that benefited backlog contracts and higher naval nuclear fuel and downblending services. Full-year segment revenue was $1.3 billion, a 3.7% increase compared with 2017 as a result of increases in volume from naval nuclear components as well as nuclear fuel and downblending operations.

NOG operating income was $91.1 million in the fourth quarter of 2018, a 41% increase compared with the prior-year period primarily driven by lower costs and favorable EAC changes that included increased future volume assumptions that benefited backlog contracts. Full-year segment operating income was $271 million, inclusive of a $29.2 million reserve for missile tube rework, a 1.3% increase compared with the prior year driven by higher volume and reduced costs. Fourth quarter and full year 2018 segment operating margins were 26.0% and 20.6%, respectively.

Nuclear Power Group (NPG) segment revenue was $98.2 million for the fourth quarter of 2018, a 15.6% increase from the prior-year period due to increases in field services, fuel handling and manufacturing, and the medical radioisotope acquisition. Full-year segment revenue was $366 million, a 28% increase compared with the prior year primarily from an increase in field services, fuel manufacturing, China steam generator production and the medical radioisotope acquisition.

NPG operating income was $13.6 million in the fourth quarter of 2018, a 44% increase from the prior-year period driven primarily from higher volume and the medical radioisotope acquisition. Full-year segment operating income was $52.3 million, a 43% increase compared with the prior year driven by higher volume and the medical radioisotope acquisition. Fourth quarter and full-year 2018 segment operating margins were 13.9% and 14.3%, respectively.

Nuclear Services Group (NSG) segment operating income was $9.2 million for the fourth quarter of 2018 compared with $5.5 million for the fourth quarter of 2017 primarily as a result of an improvement in operational performance and lower costs. Full-year segment operating income was down $1.7 million to $20.4 million primarily driven by a $7.9 million favorable legal settlement in 2017.

Liquidity and Debt
The Company generated $177.7 million of net cash from operating activities in the fourth quarter of 2018 compared with $77.1 million in the prior-year period. At the end of the fourth quarter 2018, the Company’s cash and short-term investments position, net of restricted cash, was $33.5 million.

As of December 31, 2018, the Company had gross debt of $777.4 million and $63.5 million in letters of credit issued under the Company's revolving credit facility. Gross debt included $400.0 million in senior notes, $277.4 million in term loans and $100.0 million in borrowings under the Company’s revolving credit facility. As a result, the Company had $336.5 million in remaining availability under its revolving credit facility.




Capital Deployment
The Company returned $168 million to shareholders during the fourth quarter 2018, including $152 million in share repurchases and $16 million in dividends. For the fiscal year 2018, the Company returned $279 million of cash to shareholders, including $215 million in share repurchases and $64 million in dividends. As of December 31, 2018, the total remaining share repurchase authorization stands at $185 million.

On February 22, 2019, our Board of Directors declared a quarterly cash dividend of $0.17 per common share. The dividend will be payable on March 28, 2019, to shareholders of record on March 11, 2019.

2019 Guidance
Non-GAAP EPS of ~$2.50 (excluding mark-to-market for pension and post-retirement benefits)
Consolidated revenue growth of ~6%
NOG revenue growth of ~6%
NPG revenue ~flat
Operating income and margin
NOG operating margin in the “high teens” with upside potential from CAS pension reimbursement
NPG operating margin of ~13%
NSG operating income of ~$25 million
Other segment operating expense primarily R&D of ~1% of revenue
Unallocated corporate expenses of ~$20 million
Other income primarily related to pension and other post-employment benefits of ~$22 million
Non-GAAP effective tax rate in a range of 23% to 24%
Capital expenditures of ~$225 million

Long-term Guidance
BWXT reiterated long-term guidance that excluding the benefit of tax reform, the Company anticipates a non-GAAP EPS compound annual growth rate (CAGR) in the low-double digits over a three to five year period from 2017 based on a robust organic growth strategy and balance sheet capacity.

The Company does not provide GAAP guidance because it is unable to reliably forecast most of the items that are excluded from GAAP to calculate non-GAAP results. These items could cause GAAP results to differ materially from non-GAAP results. See reconciliation of non-GAAP results in Exhibit 1 for additional information.

Conference Call to Discuss Fourth Quarter and Full Year 2018 Results

Date:            Tuesday, February 26, 2019, 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; completion of our multi-year pricing agreement; the integration and 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 2019 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, 2018 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 11 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
 
434-522-6462
 
 
 
 
 
Mark Kratz
 
 
 
 
Manager, Investor Relations
 
 
 
434-522-3883
 
 
 



EXHIBIT 1

BWX TECHNOLOGIES, INC.
RECONCILIATION OF NON-GAAP OPERATING INCOME AND EARNINGS PER SHARE(1)(2)(3) 
(In millions, except per share amounts)
Three Months Ended December 31, 2018
 
 
GAAP
 
Pension & OPEB MTM (Gain) / Loss
 
 
 
One Time Tax (Benefit) / Losses
 
 
Non-GAAP
 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
$
103.1

 
$

 
$

 
$

 
 
$
103.1

Other Income (Expense)
(71.8
)
 
67.8

 

 

 
 
(4.0
)
Provision for Income Taxes
(9.3
)
 
(15.7
)
 

 
(1.0
)
 
 
(25.9
)
Net Income
22.1

 
52.1

 

 
(1.0
)
 
 
73.2

Net Income Attributable to Noncontrolling Interest
(0.1
)
 

 

 

 
 
(0.1
)
Net Income Attributable to BWXT
$
21.9

 
$
52.1

 
$

 
$
(1.0
)
 
 
73.0

 
 
 
 
 
 
 
 
 
 
 
Diluted Shares Outstanding
98.6

 
 
 
 
 
 
 
 
98.6

Diluted Earnings per Common Share
$
0.22

 
$
0.52

 
$

 
$
(0.01
)
 
 
$
0.74

 
 
 
 
 
 
 
 
 
 
 
Effective Tax Rate
29.6%

 
 
 
 
 
 
 
 
26.2%

 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended December 31, 2017
 
 
GAAP
 
Pension & OPEB MTM (Gain) / Loss
 
Executive Restructuring
 
One Time Tax (Benefit) / Losses
 
 
Non-GAAP
 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
$
63.7

 
$

 
$
2.6

 
$

 
 
$
66.4

Other Income (Expense)
(7.4
)
 
11.1

 

 

 
 
3.6

Provision for Income Taxes
(71.9
)
 
(4.2
)
 
(1.0
)
 
54.6

 
 
(22.4
)
Net Income (Loss)
(15.5
)
 
6.9

 
1.7

 
54.6

 
 
47.7

Net Income Attributable to Noncontrolling Interest
(0.2
)
 

 

 

 
 
(0.2
)
Net Income (Loss) Attributable to BWXT
$
(15.7
)
 
$
6.9

 
$
1.7

 
$
54.6

 
 
47.5

 
 
 
 
 
 
 
 
 
 
 
Diluted Shares Outstanding
99.4

 
 
 
 
 
 
 
 
100.4

Diluted Earnings per Common Share
$
(0.16
)
 
$
0.07

 
$
0.02

 
$
0.54

 
 
$
0.47

 
 
 
 
 
 
 
 
 
 
 
Effective Tax Rate
127.6%

 
 
 
 
 
 
 
 
31.9%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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.
 
 
 
 
 
 
 
 
 
 
 
 






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)
Twelve Months Ended December 31, 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) / Losses
 
Missile Tube Reserves
 
 
Non-GAAP
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
$
305.0

 
$

 
$
2.5

 
$

 
$

 
$

 
 
 
 
$
307.5

Other Income (Expense)
(24.8
)
 
32.6

 

 
2.4

 
(4.7
)
 

 
 
 
 
5.5

Provision for Income Taxes
(52.8
)
 
(7.5
)
 
(0.6
)
 
(0.6
)
 
1.2

 
(13.5
)
 
 
 
 
(73.8
)
Net Income
227.3

 
25.1

 
1.9

 
1.8

 
(3.5
)
 
(13.5
)
 

 
 
239.1

Net Income Attributable to Noncontrolling Interest
(0.3
)
 

 

 

 

 

 
 
 
 
(0.3
)
Net Income Attributable to BWXT
$
227.0

 
$
25.1

 
$
1.9

 
$
1.8

 
$
(3.5
)
 
$
(13.5
)
 

 
 
238.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted Shares Outstanding
100.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0

Diluted Earnings per Common Share
$
2.27

 
$
0.25

 
$
0.02

 
$
0.02

 
$
(0.03
)
 
$
(0.13
)
 
 
 
 
$
2.39

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective Tax Rate
18.9%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
23.6%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOG segment margins(4)
20.6%

 
 
 
 
 
 
 
 
 
 
 
1.9%
 
 
22.5%

Twelve Months Ended December 31, 2017
 
 
GAAP
 
Pension & OPEB MTM (Gain) / Loss
 
Litigation
 
Executive Restructuring
 
Impairment (Gains) / Losses
 
One Time Tax (Benefit) / Losses
 
 
 
 
Non-GAAP
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
$
292.2

 
$

 
$
(7.9
)
 
$
2.6

 
$

 
$

 
 
 
 
$
287.0

Other Income (Expense)
3.6

 
11.1

 

 

 
(0.4
)
 

 
 
 
 
14.2

Provision for Income Taxes
(147.4
)
 
(4.2
)
 
2.8

 
(1.0
)
 
0.0

 
54.6

 
 
 
 
(95.1
)
Net Income
148.4

 
6.9

 
(5.1
)
 
1.7

 
(0.4
)
 
54.6

 
 
 
 
206.1

Net Income Attributable to Noncontrolling Interest
(0.5
)
 

 

 

 

 

 
 
 
 
(0.5
)
Net Income Attributable to BWXT
$
147.8

 
$
6.9

 
$
(5.1
)
 
$
1.7

 
$
(0.4
)
 
$
54.6

 
 
 
 
205.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted Shares Outstanding
100.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.4

Diluted Earnings per Common Share
$
1.47

 
$
0.07

 
$
(0.05
)
 
$
0.02

 
$
(0.00
)
 
$
0.54

 
 
 
 
$
2.05

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective Tax Rate
49.8%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
31.6%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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 2Q, 3Q and 2018 can be found in our most recent Investor Briefing on the BWXT website at www.bwxt.com/investors.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




BWX TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
ASSETS
 
 
December 31,
 
 
2018
 
2017
 
 
(In thousands)
Current Assets:
 
 
 
 
Cash and cash equivalents
 
$
29,871

 
$
203,404

Restricted cash and cash equivalents
 
3,834

 
7,105

Investments
 
3,597

 
2,934

Accounts receivable – trade, net
 
129,459

 
189,217

Accounts receivable – other
 
13,374

 
19,365

Contracts in progress
 
318,454

 
420,628

Other current assets
 
43,859

 
30,437

Total Current Assets
 
542,448

 
873,090

Property, Plant and Equipment
 
1,132,392

 
1,013,141

Less accumulated depreciation
 
693,153

 
664,512

Net Property, Plant and Equipment
 
439,239

 
348,629

Investments
 
7,382

 
9,301

Goodwill
 
274,082

 
218,331

Deferred Income Taxes
 
63,908

 
86,740

Investments in Unconsolidated Affiliates
 
63,746

 
43,266

Intangible Assets
 
228,676

 
110,405

Other Assets
 
35,615

 
22,577

TOTAL
 
$
1,655,096

 
$
1,712,339






BWX TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
December 31,
 
 
2018
 
2017
 
 
(In thousands, except share
and per share amounts)
Current Liabilities:
 
 
 
 
Current maturities of long-term debt
 
$
14,227

 
$
27,870

Accounts payable
 
114,751

 
93,421

Accrued employee benefits
 
77,386

 
82,477

Accrued liabilities – other
 
62,163

 
64,738

Advance billings on contracts
 
98,477

 
246,192

Accrued warranty expense
 
10,344

 
13,428

Total Current Liabilities
 
377,348

 
528,126

Long-Term Debt
 
753,617

 
481,059

Accumulated Postretirement Benefit Obligation
 
19,236

 
21,368

Environmental Liabilities
 
86,372

 
79,786

Pension Liability
 
173,469

 
296,444

Other Liabilities
 
9,353

 
19,799

Commitments and Contingencies
 
 
 
 
Stockholders' Equity:
 
 
 
 
Common stock, par value $0.01 per share, authorized 325,000,000 shares; issued 125,871,866 and 125,381,591 shares at December 31, 2018 and December 31, 2017, respectively
 
1,259

 
1,254

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

 

Capital in excess of par value
 
115,725

 
98,843

Retained earnings
 
1,166,762

 
990,652

Treasury stock at cost, 30,625,074 and 25,964,088 shares at December 31, 2018 and December 31, 2017, respectively
 
(1,037,795
)
 
(814,809
)
Accumulated other comprehensive income
 
(10,289
)
 
9,454

Stockholders' Equity – BWX Technologies, Inc.
 
235,662

 
285,394

Noncontrolling interest
 
39

 
363

Total Stockholders' Equity
 
235,701

 
285,757

TOTAL
 
$
1,655,096

 
$
1,712,339





BWX TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
2018
 
2017
 
2018
 
2017
 
 
(Unaudited)
(In thousands, except share and per share amounts)
Revenues
 
$
477,998

 
$
430,138

 
$
1,799,889

 
$
1,687,738

Costs and Expenses:
 
 
 
 
 
 
 
 
Cost of operations
 
323,989

 
308,144

 
1,295,876

 
1,191,983

Research and development costs
 
3,550

 
1,922

 
15,223

 
7,190

Losses (gains) on asset disposals and impairments, net
 
66

 
(161
)
 
64

 
(194
)
Selling, general and administrative expenses
 
54,893

 
59,267

 
214,092

 
210,148

Total Costs and Expenses
 
382,498

 
369,172

 
1,525,255

 
1,409,127

Equity in Income of Investees
 
7,645

 
2,780

 
30,343

 
13,612

Operating Income
 
103,145

 
63,746

 
304,977

 
292,223

Other Income (Expense):
 
 
 
 
 
 
 
 
Interest income
 
139

 
655

 
2,479

 
1,405

Interest expense
 
(8,469
)
 
(3,619
)
 
(27,823
)
 
(14,879
)
Other – net
 
(63,472
)
 
(4,456
)
 
512

 
17,031

Total Other Income (Expense)
 
(71,802
)
 
(7,420
)
 
(24,832
)
 
3,557

Income before Provision for Income Taxes
 
31,343

 
56,326

 
280,145

 
295,780

Provision for Income Taxes
 
9,262

 
71,860

 
52,840

 
147,415

Net Income (Loss)
 
$
22,081

 
$
(15,534
)
 
$
227,305

 
$
148,365

Net Income Attributable to Noncontrolling Interest
 
(146
)
 
(157
)
 
(347
)
 
(521
)
Net Income Attributable to BWX Technologies, Inc.
 
$
21,935

 
$
(15,691
)
 
$
226,958

 
$
147,844

Earnings per Common Share:
 
 
 
 
 
 
 
 
Basic:
 
 
 
 
 
 
 
 
Net Income Attributable to BWX Technologies, Inc.
 
$
0.22

 
$
(0.16
)
 
$
2.29

 
$
1.49

Diluted:
 
 
 
 
 
 
 
 
Net Income Attributable to BWX Technologies, Inc.
 
$
0.22

 
$
(0.16
)
 
$
2.27

 
$
1.47

Shares used in the computation of earnings per share:
 
 
 
 
 
 
 
 
Basic
 
97,619,549

 
99,398,096

 
99,062,087

 
99,334,472

Diluted
 
98,571,419

 
99,398,096

 
100,019,053

 
100,369,190





BWX TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Year Ended December 31,
 
 
2018
 
2017
 
 
(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
Net Income
 
$
227,305

 
$
148,365

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Depreciation and amortization
 
60,097

 
56,557

Income of investees, net of dividends
 
(8,106
)
 
2,520

Gain on forward contracts
 
(4,743
)
 

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

 

Provision for (benefit from) deferred taxes
 
17,446

 
93,461

Recognition of losses for pension and postretirement plans
 
34,554

 
12,823

Stock-based compensation expense
 
11,883

 
15,222

Changes in assets and liabilities, net of effects from acquisitions:
 
 
 
 
Accounts receivable
 
62,193

 
(42,803
)
Accounts payable
 
1,888

 
(7,476
)
Contracts in progress and advance billings on contracts
 
(34,012
)
 
35,272

Income taxes
 
(23,257
)
 
15,124

Accrued and other current liabilities
 
11,596

 
(26,610
)
Pension liability, accrued postretirement benefit obligation and employee benefits
 
(187,425
)
 
(79,311
)
Other, net
 
(2,570
)
 
(1,184
)
NET CASH PROVIDED BY OPERATING ACTIVITIES
 
169,290

 
221,960

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
Purchases of property, plant and equipment
 
(109,338
)
 
(96,880
)
Acquisition of businesses
 
(212,993
)
 
(715
)
Purchases of securities
 
(4,520
)
 
(3,237
)
Sales and maturities of securities
 
3,933

 
12,852

Investments, net of return of capital, in equity method investees
 
(9,059
)
 
(2,789
)
Other, net
 
5,253

 
1,088

NET CASH USED IN INVESTING ACTIVITIES
 
(326,724
)
 
(89,681
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
Borrowings of long-term debt
 
1,158,800

 
109,400

Repayments of long-term debt
 
(876,206
)
 
(137,053
)
Payment of debt issuance costs
 
(9,443
)
 

Repurchase of common shares
 
(214,759
)
 

Dividends paid to common shareholders
 
(63,821
)
 
(42,043
)
Exercise of stock options
 
3,573

 
17,117

Cash paid for shares withheld to satisfy employee taxes
 
(6,796
)
 
(8,049
)
Other
 
(671
)
 
(550
)
NET CASH USED IN FINANCING ACTIVITIES
 
(9,323
)
 
(61,178
)
EFFECTS OF EXCHANGE RATE CHANGES ON CASH
 
(9,979
)
 
7,443

TOTAL (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS
 
(176,736
)
 
78,544

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
 
$
36,408

 
$
213,144

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
 
 
 
 
Cash paid during the period for:
 
 
 
 
Interest
 
$
16,993

 
$
14,252

Income taxes (net of refunds)
 
$
58,715

 
$
38,425

SCHEDULE OF NON-CASH INVESTING ACTIVITY:
 
 
 
 
Accrued capital expenditures included in accounts payable
 
$
29,470

 
$
8,454





BWX TECHNOLOGIES, INC.
BUSINESS SEGMENT INFORMATION
 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
2018
 
2017
 
2018
 
2017
 
 
(Unaudited)
(In thousands)
REVENUES:
 
 
 
 
 
 
 
 
Nuclear Operations Group
 
$
351,074

 
$
309,369

 
$
1,319,170

 
$
1,271,861

Nuclear Services Group
 
31,443

 
37,103

 
122,438

 
137,249

Nuclear Power Group
 
98,236

 
84,967

 
365,911

 
285,831

Adjustments and Eliminations
 
(2,755
)
 
(1,301
)
 
(7,630
)
 
(7,203
)
TOTAL
 
$
477,998

 
$
430,138

 
$
1,799,889

 
$
1,687,738

 
 
 
 
 
 
 
 
 
SEGMENT INCOME:
 
 
 
 
 
 
 
 
Nuclear Operations Group
 
$
91,122

 
$
64,427

 
$
271,405

 
$
267,930

Nuclear Services Group
 
9,192

 
5,506

 
20,374

 
22,083

Nuclear Power Group
 
13,633

 
9,454

 
52,270

 
36,548

Other
 
(4,532
)
 
(5,751
)
 
(18,074
)
 
(10,688
)
SUBTOTAL
 
109,415

 
73,636

 
325,975

 
315,873

Unallocated Corporate
 
(6,270
)
 
(9,890
)
 
(20,998
)
 
(23,650
)
TOTAL
 
$
103,145

 
$
63,746

 
$
304,977

 
$
292,223

 
 
 
 
 
 
 
 
 
DEPRECIATION AND AMORTIZATION:
 
 
 
 
 
 
 
 
Nuclear Operations Group
 
$
8,128

 
$
8,028

 
$
32,132

 
$
31,289

Nuclear Services Group
 
801

 
914

 
3,401

 
3,702

Nuclear Power Group
 
5,460

 
3,508

 
17,154

 
13,751

Other
 

 

 

 

Corporate
 
2,016

 
1,972

 
7,410

 
7,815

TOTAL
 
$
16,405

 
$
14,422

 
$
60,097

 
$
56,557

 
 
 
 
 
 
 
 
 
CAPITAL EXPENDITURES:
 
 
 
 
 
 
 
 
Nuclear Operations Group
 
$
42,889

 
$
43,233

 
$
93,360

 
$
86,323

Nuclear Services Group
 
668

 
1,025

 
974

 
1,514

Nuclear Power Group
 
2,393

 
621

 
4,710

 
3,856

Other
 
1,440

 
628

 
2,780

 
628

Corporate
 
1,460

 
2,012

 
7,514

 
4,559

TOTAL
 
$
48,850

 
$
47,519

 
$
109,338

 
$
96,880






BWX TECHNOLOGIES, INC.
BUSINESS SEGMENT INFORMATION
 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
2018
 
2017
 
2018
 
2017
 
 
(Unaudited)
(In thousands)
BACKLOG:
 
 
 
 
 
 
 
 
Nuclear Operations Group
 
$
2,636,824

 
$
3,304,416

 
$
2,636,824

 
$
3,304,416

Nuclear Services Group
 
38,142

 
29,285

 
38,142

 
29,285

Nuclear Power Group
 
803,634

 
637,053

 
803,634

 
637,053

TOTAL
 
$
3,478,600

 
$
3,970,754

 
$
3,478,600

 
$
3,970,754

 
 
 
 
 
 
 
 
 
BOOKINGS:
 
 
 
 
 
 
 
 
Nuclear Operations Group
 
$
47,387

 
$
642,969

 
$
694,085

 
$
1,089,740

Nuclear Services Group
 
41,870

 
28,345

 
127,979

 
136,640

Nuclear Power Group
 
32,947

 
194,262

 
535,032

 
449,332

TOTAL
 
$
122,204

 
$
865,576

 
$
1,357,096

 
$
1,675,712




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