Babcock & Wilcox Announces Strong Fourth Quarter 2015 Results

- Fourth Quarter Revenue Increases 13.1%, Full Year 2015 Revenue Increases 18.3%
- Fourth Quarter GAAP EPS of $(0.10), Adjusted EPS $0.47
- Full Year 2015 GAAP EPS of $0.30, Adjusted EPS $1.25
- New Share Buyback Program to Target up to $47 million by Third Quarter 2016
- 2016 Guidance for Adjusted EPS of $1.25-$1.45

CHARLOTTE, N.C.--()--Babcock & Wilcox Enterprises, Inc. (B&W) (NYSE:BW) announced today fourth quarter 2015 revenues of $502.7 million, an increase of $58.1 million, or 13.1%, from the fourth quarter of 2014. GAAP earnings per share for the fourth quarter of 2015 were a loss of $0.10 compared to a loss of $0.90 in the fourth quarter of 2014. Adjusted earnings per share were $0.47 for the three months ended December 31, 2015 compared to $0.66 in the prior year period. Adjusted earnings per share excludes the impact of non-cash mark-to-market adjustments for pension and other post-retirement benefits, impairments, restructuring and other costs as shown in Exhibit 1.

“B&W ended the year with a strong quarter led by the continued growth in Global Power,” said Mr. E. James Ferland, Chairman and Chief Executive Officer. “Revenue, gross profit, operating income and free cash flow were all improved in the quarter compared to the prior year fourth quarter, providing a strong finish to a solid year.

Results of Operations

Consolidated revenues for the fourth quarter of 2015 were $502.7 million, an increase of 13.1%, compared to $444.6 million for the fourth quarter of 2014, primarily due to increased volume in Global Power. GAAP consolidated gross profit for the business segments, which includes mark-to-market pension adjustments of $44.3 million in fourth quarter 2015 and $94.2 million in fourth quarter 2014, was $65.0 million in the quarter compared to $4.8 million in the fourth quarter of 2014. Gross profit from our segments, excluding the mark-to-market pension adjustment, was $109.3 million for the fourth quarter 2015, which is a 10.4% increase compared to $99.0 million in the prior year period largely due to the increases from Global Power and Industrial Environmental. Adjusted operating income increased 3.7% in the fourth quarter of 2015 to $39.5 million, compared to adjusted operating income of $38.1 million in the fourth quarter of 2014, primarily from higher volume in Global Power and good project execution in Industrial Environmental, partially offset by increased SG&A expenses related to being a stand-alone company.

The Global Power segment revenues for the fourth quarter of 2015 increased 55.2%, or $70.7 million, to $198.7 million from $128.0 million in the prior year period, primarily attributable to increased activity in new build steam generation systems. Fourth quarter 2015 gross profit in the Global Power segment increased $8.2 million from the same period last year to $38.4 million, largely due to higher volume.

Revenues in the Global Services segment were $243.7 million in the final three months of 2015, versus $263.6 million in the corresponding period in 2014, a decrease of 7.5%, mainly due to timing on repair and maintenance activities and lower parts sales. Gross profit in Global Services was $53.7 million, a decrease of 4.1% compared to $56.0 million in the prior year period, as the improvement in the gross margin was offset by the impact of lower revenue and business mix.

Industrial Environmental segment revenues for the fourth quarter of 2015 were $60.3 million, compared to $52.9 million in the prior year period, an increase of $7.4 million primarily attributable to project timing. The Industrial Environmental segment continued to deliver strong gross profit with $17.1 million in the fourth quarter of 2015, a 33.8% increase from $12.8 million in the 2014 period, due to reduced amortization expense combined with increased volume and strong project execution.

Revenues for the full year of 2015 were $1.76 billion, an increase of 18.3% from the $1.49 billion recorded in 2014 mainly due to increased volume in Global Power and the full-year contribution of the MEGTEC acquisition. Adjusted operating income for 2015 was $103.8 million, which is an increase of 15.1% over the $90.2 million for full year 2014 as a result of inclusion of a full year of MEGTEC and increased volume in Global Power, partially offset by higher SG&A from a full year of MEGTEC overhead and incremental SG&A from being a stand-alone company. GAAP earnings per diluted share from continuing operations for the full year of 2015 were $0.30, compared to a loss of $0.23 in 2014. Full-year 2015 adjusted earnings per share were $1.25 versus adjusted earnings per share of $1.28 in the prior year. The 2014 tax rate was unusually low. If the full-year 2015 adjusted tax rate was applied to the 2014 results, then the 2015 adjusted EPS would be 12% higher than 2014.

"We are pleased with our 2015 full-year results," continued Ferland. "In addition to successful execution of the spin-off from BWX Technologies, we grew revenue over 18% and all three business units delivered on the bottom line allowing us to achieve an adjusted EPS of $1.25, in the top half of our range. Our strong balance sheet has been bolstered by significant cash generation during the year. This allowed us to pursue a meaningful share buyback program while in parallel increasing our cash on hand, thus enabling us to pursue acquisitions to grow our earnings and diversify the business."

Liquidity

B&W’s cash and cash equivalents position, net of restricted cash, was $365.2 million at the end of 2015 reflecting a $57.6 million increase over the $307.6 million as of June 30, 2015 when B&W was launched as an independent publicly-traded company. This consolidated cash position includes $221.2 million in non-U.S. cash. Net cash flow from operating activities for the full year 2015 was $170.4 million compared to a use of cash of $24.2 million in 2014.

Share Repurchase Program

Our Board of Directors previously authorized the repurchase of up to $100 million of common stock. An initial buyback program combined with share repurchases to off-set dilution will use approximately $53 million of the current authorization no later than the end of the first quarter 2016.

B&W will implement a new share repurchase program that will target spending the remaining $47 million under the Board's authorization by third quarter 2016. B&W may utilize various methods to effect the repurchases, and the timing of repurchases will depend upon several factors, including market and business conditions, and repurchases may be discontinued at any time.

Full Year 2016 Outlook

2016 will be B&W’s first full year as a stand-alone company. Guidance for key financial benchmarks in 2016 includes:

  • Revenue is expected to increase to $1.8 billion based on mid-single digit growth in our Global Power and Industrial Environmental business units while Global Services is expected to remain flat;
  • Full year adjusted EPS in the range of $1.25 to $1.45;
    • Adjusted tax rate for 2016 is expected to be in the range of 31%-33%;
    • Earnings are expected to start low in the first quarter and improve through the year due to project timing;
    • EPS estimates exclude any mark-to-market adjustment for pension and post-retirement benefits or restructuring charges;
  • Free cash flow conversion is expected to be between 75% and 100% of net income; and
  • This guidance does not include incremental benefit from acquisitions or additional share repurchases beyond our initial share repurchase program that is expected to conclude by the end of the first quarter 2016.

"Through a combination of revenue growth driven by our strong backlog and robust bid pipeline, continued margin improvement and share buybacks through February 2016, we are projecting 12% adjusted EPS growth in 2016, relative to our original adjusted EPS guidance for 2015," continued Ferland. "This guidance reflects some pressure on merchant utility spending from continued low natural gas prices, foreign exchange headwinds and a challenging global industrial market. We are confident that we will provide meaningful growth to our core business in 2016, while continuing to leverage our strong balance sheet to pursue acquisitions and/or additional share repurchases."

Conference Call to Discuss Fourth Quarter 2015 Results

   

Date:

Friday, February 26, 2015, at 8:30 a.m. EST

Live Webcast:

Investor Relations section of website at www.babcock.com

 

Forward-Looking Statements

Babcock & Wilcox Enterprises, Inc. (“B&W”) cautions that this press release contains forward-looking statements, including, without limitation, statements relating to backlog, to the extent it may be viewed as an indicator of future revenues; management’s expectations regarding the industries in which we operate; our guidance and forecasts for 2016; our projected operating margin improvements, savings and restructuring costs; growth through acquisitions; and our plans for stock repurchases. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, disruptions experienced with customers and suppliers; the inability to successfully operate independently after the spin-off; the inability to retain key personnel; adverse changes in the industries in which we operate; changes or termination of contracts in backlog; the timing and amount of repurchases of our common stock, if any; and the inability to grow and diversify through acquisitions. 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 B&W’s filings with the Securities and Exchange Commission, including the our annual report on Form 10-K and subsequent quarterly reports on Form 10-Q. B&W cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertake no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

About B&W

Headquartered in Charlotte, N.C., Babcock & Wilcox is a global leader in energy and environmental technologies and services for the power and industrial markets. B&W companies employ approximately 5,700 people around the world. Follow us on Twitter @BabcockWilcox and learn more at www.babcock.com.

EXHIBIT 1
BABCOCK & WILCOX ENTERPRISES, INC.
RECONCILIATION OF NON-GAAP OPERATING INCOME AND EARNINGS PER SHARE*

 
(In millions, except per share amounts and percentages) Three Months Ended December 31, 2015
GAAP   Pension &
OPEB MTM
(Gain) / Loss
  Impairments   Restructuring   Spin Costs   Non-GAAP
Operating income (loss) $ (10.0 )   $ 40.2   $ 5.6   $ 3.0   $ 0.7   $ 39.5
Other income (expense)
Income tax (expense) benefit 4.7     (16.0 )   (2.1 )   (1.0 )   (0.3 )   (14.7 )
Net income (loss) $ (5.2 ) $ 24.2 $ 3.4 $ 1.9 $ 0.4 $ 24.8
Net loss attributable to non-controlling interest                      
Net income (loss) attributable to B&W shareholders $ (5.2 )   $ 24.2     $ 3.4     $ 1.9     $ 0.4     $ 24.8  
 
Diluted earnings (loss) per common share $ (0.10 ) $ 0.45 $ 0.06 $ 0.04 $ 0.01 $ 0.47
 
Income tax rate 47.4% 37.3%
 
(In millions, except per share amounts and percentages)   Three Months Ended December 31, 2014
GAAP   Pension &
OPEB MTM
(Gain) / Loss
  Restructuring  

NE Sgmt
Allocation

 

MEGTEC
Acquisition
Costs

  Non-GAAP
Operating income (loss) $ (71.2 )   $ 99.3   $ 8.4   $ 1.3   $ 0.2   $ 38.1
Other income (expense) (0.8 ) (0.8 )
Income tax (expense) benefit 38.5     (37.0 )   (3.2 )   (0.1 )   (0.1 )   (1.9 )
Net income (loss) $ (33.5 ) $ 62.3 $ 5.3 $ 1.2 $ 0.1 $ 35.4
Net loss attributable to non-controlling interest (0.1 )                   (0.1 )
Net income (loss) attributable to B&W shareholders $ (33.7 )   $ 62.3     $ 5.3     $ 1.2     $ 0.1     $ 35.3  
 
Diluted earnings (loss) per common share $ (0.63 ) $ 1.17 $ 0.10 $ 0.02 $ $ 0.66
 
Income tax rate 53.4% 5.1%
 
(In millions, except per share amounts and percentages)   Twelve Months Ended December 31, 2015
GAAP   Pension &
OPEB MTM
(Gain) / Loss
  Impairments   Restructuring  

Litigation
Settlement

 

NE Sgmt
Allocation

 

Spin
Costs

 

Non-
GAAP

Operating income (loss) $ 21.9   $ 40.2   $ 14.6   $ 11.7   $ 9.6   $ 2.7   $ 3.3   $ 103.8
Other income (expense) (1.7 ) (1.7 )
Income tax (expense) benefit (3.7 )   (16.0 )   (5.6 )   (4.2 )   (3.7 )   (0.7 )   (1.2 )   (35.1 )
Net income (loss) $ 16.5 $ 24.2 $ 9.0 $ 7.5 $ 5.8 $ 2.0 $ 2.0 $ 67.1
Net loss attributable to non-controlling interest (0.2 )                           (0.2 )
Net income (loss) attributable to B&W shareholders $ 16.3     $ 24.2     $ 9.0     $ 7.5     $ 5.8     $ 2.0     $ 2.0     $ 66.9  
 
Diluted earnings (loss) per common share $ 0.30 $ 0.45 $ 0.17 $ 0.14 $ 0.11 $ 0.04 $ 0.04 $ 1.25
 
Income tax rate 18.2% 34.3%
 
(In millions, except per share amounts and percentages)   Twelve Months Ended December 31, 2014
GAAP  

Pension &
OPEB MTM
(Gain) / Loss

  Restructuring  

NE Sgmt
Allocation

 

MEGTEC
Acquisition
Costs

  Non-GAAP
Operating income (loss) $ (38.0 )   $ 101.3   $ 20.2   $ 5.3   $ 1.4   $ 90.2
Other income (expense) 1.4 1.4
Income tax (expense) benefit 24.7     (37.5 )   (7.2 )   (1.4 )   (0.5 )   (21.8 )
Net income (loss) $ (11.9 ) $ 63.9 $ 13.0 $ 3.9 $ 0.9 $ 69.7
Net loss attributable to non-controlling interest (0.4 )                   (0.4 )
Net income (loss) attributable to B&W shareholders $ (12.3 )   $ 63.9     $ 13.0     $ 3.9     $ 0.9     $ 69.3  
 
Diluted earnings (loss) per common share $ (0.23 ) $ 1.18 $ 0.24 $ 0.07 $ 0.02 $ 1.28
 
Income tax rate 67.5% 23.9%
 
* The Company 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. B&W believes the non-GAAP measures provide meaningful insight in 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 B&W’s ongoing operations.
 

EXHIBIT 2
BABCOCK & WILCOX ENTERPRISES, INC.
CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS

     
(In thousands, except share and per share amounts) Three Months Ended Twelve Months Ended
December 31, December 31,
2015   2014  

2015

 

2014

Revenues $ 502,678   $ 444,556 $ 1,757,295 $ 1,486,029
Costs and expenses
Cost of operations 437,724 439,772 1,449,138 1,266,996
Research and development costs 4,086 5,688 16,543 18,483
Losses on asset disposals and impairments 5,560 276 14,597 1,752
Selling, general and administrative expenses 61,429 64,605 239,968 225,271
Restructuring activities and spin-off transaction costs   3,667     8,440     14,946     20,183  
Total costs and expenses 512,466 518,781 1,735,192 1,532,685
Equity in income (loss) of investees   (185 )   3,023     (242 )   8,681  
Operating income (loss)   (9,973 )   (71,202 )   21,861     (37,975 )
Other income (expense)
Interest income 198 141 618 1,060
Interest expense (386 ) (107 ) (1,059 ) (492 )
Other, net   221     (828 )   (1,215 )   789  
Total other income (expense)   33     (794 )   (1,656 )   1,357  
Income (loss) before income tax expense (benefit) (9,940 ) (71,996 ) 20,205 (36,618 )
Income tax expense (benefit)   (4,710 )   (38,455 )   3,671     (24,728 )
Income (loss) from continuing operations (5,230 ) (33,541 ) 16,534 (11,890 )
Income (loss) from discontinued operations, net of tax       (14,509 )   2,803     (14,272 )
Net income (loss) (5,230 ) (48,050 ) 19,337 (26,162 )
Net income (loss) attributable to noncontrolling interest   26     (112 )   (196 )   (366 )
Net income (loss) attributable to B&W shareholders   $ (5,204 )   $ (48,162 )   $ 19,141     $ (26,528 )
Amounts attributable to B&W shareholders
Income (loss) from continuing operations (5,204 ) (33,653 ) 16,338 (12,256 )
Income (loss) from discontinued operations, net of tax       (14,509 )   2,803     (14,272 )
Net income (loss) attributable to B&W shareholders   $ (5,204 )   $ (48,162 )   $ 19,141     $ (26,528 )
Basic earnings (loss) per common share
Continuing operations $ (0.10 ) $ (0.63 ) $ 0.31 $ (0.23 )
Discontinued operations   $     $ (0.27 )   $ 0.05    

$

(0.26

)
Basic earnings (loss) per common share   $ (0.10 )   $ (0.90 )   $ 0.36     $ (0.49 )
Diluted earnings (loss) per common share
Continuing operations $ (0.10 ) $ (0.63 ) $ 0.30 $ (0.23 )
Discontinued operations   $     $ (0.27 )   $ 0.06     (0.26 )
Diluted earnings (loss) per common share   $ (0.10 )   $ (0.90 )   $ 0.36     $ (0.49 )
Shares used in the computation of earnings per common share
Basic 53,258,392 53,298,706 53,487,071 54,238,631
Diluted   53,258,392     53,298,706     53,708,983     54,238,631  
 

EXHIBIT 3
BABCOCK & WILCOX ENTERPRISES, INC.
CONSOLIDATED AND COMBINED BALANCE SHEETS

   
(In thousands) December 31, 2015 December 31, 2014
ASSETS
Current assets
Cash and cash equivalents $ 365,192 $ 218,659
Restricted cash and cash equivalents 37,144 26,311
Investments 3,996 1,607
Accounts receivable – trade, net 291,242 265,456
Accounts receivable – other 44,765 36,147
Contracts in progress 128,174 107,751
Inventories 90,119 98,711
Deferred income taxes 36,601
Other current assets 17,552 11,347
Assets of discontinued operations       46,177
Total current assets 978,184 848,767
Net property, plant and equipment 145,717 135,237
Investments 1,093 214
Goodwill 201,069 209,277
Deferred income taxes 190,656 115,111
Investments in unconsolidated affiliates 92,196 109,248
Intangible assets 37,844 50,646
Other assets 16,286 9,226
Assets of discontinued operations       38,828
TOTAL ASSETS   $ 1,663,045     $ 1,516,554
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Short-term line of credit $ 2,005 $ 3,215
Accounts payable 175,170 160,606
Accrued employee benefits 51,476 39,464
Advance billings on contracts 229,390 148,098
Accrued warranty expense 39,847 37,735
Other accrued liabilities 63,464 54,827
Liabilities of discontinued operations       44,145
Total current liabilities 561,352 488,090
Accumulated postretirement benefit obligation 27,768 28,347
Pension liability 282,133 253,763
Other liabilities 43,365 42,929
Liabilities of discontinued operations       15,988
Total liabilities 914,618 829,117
Commitments and contingencies
Stockholders’ equity
Common stock, par value $0.01 per share, authorized 200,000,000 shares; issued 52,480,630 and 0 shares at December 31, 2015 and December 31, 2014, respectively 540
Capital in excess of par value 790,464
Treasury stock at cost, 1,376,226 shares at December 31, 2015 (25,408 )
Retained earnings 965
Accumulated other comprehensive income (18,853 ) 10,374
Former net parent investment       676,036
Stockholders’ equity attributable to B&W shareholders 747,708 686,410
Noncontrolling interest   719     1,027
Total stockholders’ equity   748,427     687,437
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 1,663,045     $ 1,516,554
 

EXHIBIT 4
BABCOCK & WILCOX ENTERPRISES, INC.
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS

 
(In thousands) Year Ended December 31,
2015   2014   2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) 19,337   (26,162 )   174,816
Non-cash items included in net income (loss)
Depreciation and amortization 34,932 32,436 23,030
Income of investees, net of dividends 242 8,743 1,995
Losses on asset disposals and impairments 16,881 5,989 2,580
Write-off of accrued claims receivable 7,832 0
Provision for (benefit from) deferred taxes (32,121 ) (42,023 ) 56,107
Recognition of (gains) losses for pension and postretirement plans 40,611 101,792 (91,358 )
Stock-based compensation and thrift plan expense 7,773 (11 ) (172 )
Changes in assets and liabilities, net of effects from acquisitions
Accounts receivable (33,977 ) (13,797 ) 4,898
Accounts payable 17,863 (8,860 ) (13,354 )
Contracts in progress and advance billings on contracts 62,971 (99,192 ) (97,360 )
Inventories 6,060 4,309 10,769
Income taxes 9,275 10,123 (23,309 )
Accrued and other current liabilities 11,464 9,660 (22,520 )
Pension liability, accrued postretirement benefit obligation and employee benefits (2,336 ) (17,259 ) (20,053 )
Other, net   3,592     10,028     10,331  
NET CASH FROM OPERATING ACTIVITIES   170,399     (24,224 )   16,400  
CASH FLOWS FROM INVESTING ACTIVITIES
Change in restricted cash and cash equivalents 6,298 (5,646 ) 11,419
Purchases of property, plant and equipment (35,397 ) (15,475 ) (11,588 )
Acquisition of businesses, net of cash acquired (127,705 )
Purchase of intangible assets (722 )
Purchases of available-for-sale securities (14,008 ) (4,450 ) (11,111 )
Sales and maturities of available-for-sale securities 5,266 10,118 3,973
Proceeds from (cost of) asset disposals (587 ) 149 507
Investment in equity and cost method investees   (7,424 )   (4,900 )   (6,884 )
NET CASH FROM INVESTING ACTIVITIES   (45,852 )   (148,631 )   (13,684 )
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of short-term borrowing and long-term debt (1,080 ) (4,538 ) (212 )
Payment of debt issuance costs 2,967 484
Net transfers from former Parent 80,589 213,137 47,445
Repurchase of common shares (25,408 )
Excess tax benefits from stock-based compensation 11 172
Other   (491 )   89     (114 )
NET CASH FROM FINANCING ACTIVITIES   53,610     211,666     47,775  
             
EFFECTS OF EXCHANGE RATE CHANGES ON CASH   (6,407 )   (12,573 )   (4,024 )
CASH FLOWS FROM DISCONTINUED OPERATIONS
Operating cash flows from discontinued operations, net (25,194 ) (191 ) (28,723 )
Investing cash flows from discontinued operations, net (23 ) (1,729 ) (4,974 )
Effects of exchange rate changes on cash       3,023     3,012  
NET CASH FLOWS FROM DISCONTINUED OPERATIONS (25,217 ) 1,103 (30,685 )
NET CHANGE IN CASH AND CASH EQUIVALENTS 146,533 27,341 15,782
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD   218,659     191,318     175,536  
CASH AND CASH EQUIVALENTS AT END OF PERIOD   365,192     218,659     191,318  
 

EXHIBIT 5
BABCOCK & WILCOX ENTERPRISES, INC.
SEGMENT INFORMATION

   
Three Months Ended Twelve Months Ended
(In thousands) December 31, December 31,
2015   2014   2015   2014
REVENUES    
Global Power $ 198,707 $ 128,039 $ 639,970 $ 471,929
Global Services 243,659 263,601 933,630 908,682
Industrial Environmental 60,312     52,916     183,695     105,418  
$ 502,678     $ 444,556     $ 1,757,295     $ 1,486,029  
 
GROSS PROFIT
Global Power $ 38,425 $ 30,210 $ 111,309 $ 94,647
Global Services 53,720 55,989 192,241 193,629
Industrial Environmental 17,116     12,789     48,914     24,961  
Gross profit from segments 109,261 98,988 352,464 313,237
Mark to market adjustment included in cost of operations* (44,307 )   (94,204 )   (44,307 )   (94,204 )
$ 64,954     $ 4,784     $ 308,157     $ 219,033  
 
BOOKINGS
Global Power $ 66,300 $ 275,554 $ 816,300 $ 647,981
Global Services 287,900 237,112 843,000 835,344
Industrial Environmental 35,100     46,139     178,000     91,041  
$ 389,300     $ 558,805     $ 1,837,300     $ 1,574,366  
 
BACKLOG
Global Power $ 1,118,049 $ 946,360 $ 1,118,049 $ 946,360
Global Services 1,143,306 1,229,199 1,143,306 1,229,199
Industrial Environmental 66,459     72,179     66,459     72,179  
$ 2,327,814     $ 2,247,738     $ 2,327,814     $ 2,247,738  
 
* Total mark to market adjustments for the Company's pension and post retirement benefit obligations were a loss of $40.2 million in 2015 and a loss of $101.3 million 2014, of which a $4.1 million gain in 2015 and a $7.2 million loss in 2014 were included in selling, general and administrative expense and the remainder was included in cost of operations. In 2015, the entire mark to market adjustment was recorded in the fourth quarter. The total mark to market adjustment in the fourth quarter of 2014 was a loss of $99.3 million, of which $5.1 million was included in selling, general and administrative expense and the remainder was included in cost of operations.
 

EXHIBIT 6
BABCOCK & WILCOX ENTERPRISES, INC.
QUARTERLY INFORMATION

       
(In thousands, except per share amounts) March 31,
2015
June 30,
2015
September 30,
2015
December 31,
2015
Revenues $ 397,155 $ 437,485 $ 419,977 $ 502,678
Costs and expenses:
Cost of operations 313,758 355,601 342,055 437,724
Research and development costs 4,518 3,962 3,977 4,086
Losses on asset disposals and impairments 18 9,009 10 5,560
Selling, general and administrative expenses 56,193 59,709 62,637 61,429
Restructuring activities and spin-off transaction costs 3,254   5,312   2,713   3,667  
Total costs and expenses 377,741 433,593 411,392 512,466
Equity in income (loss) of investees (2,071 ) 967   1,047   (185 )
Operating income (loss) 17,343 4,859 9,632 (9,973 )
 
Interest income 156 126 138 198
Interest expense (140 ) (144 ) (389 ) (386 )
Other, net (311 ) 201   (1,326 ) 221  
Total other income (expense) (295 ) 183 (1,577 ) 33
Income before income tax expense (benefit) 17,048 5,042 8,055 (9,940 )
Income tax expense (benefit) 5,692   919   1,770   (4,710 )
Income (loss) from continuing operations 11,356 4,123 6,285 (5,230 )
Income (loss) from discontinued operations, net of tax 1,385   1,418      
Net income (loss) 12,741 5,541 6,285 (5,230 )
Net income attributable to noncontrolling interest (52 ) (54 ) (116 ) 26  
Net income (loss) attributable to shareholders $ 12,689   $ 5,487   $ 6,169   $ (5,204 )
 
Income (loss) from continuing operations 11,304 4,069 6,169 (5,204 )
Income (loss) from discontinued operations, net of tax 1,385   1,418      
Net income (loss) attributable to shareholders $ 12,689   $ 5,487   $ 6,169   $ (5,204 )
 
Earnings (loss) per common share
Basic
Continuing operations $ 0.21 $ 0.08 $ 0.11 $ (0.10 )
Discontinued operations 0.03   0.02      
Basic earnings (loss) per common share $ 0.24   $ 0.10   $ 0.11   $ (0.10 )
Diluted
Continuing operations $ 0.21 $ 0.08 $ 0.11 $ (0.10 )
Discontinued operations 0.03   0.02      
Diluted earnings (loss) per common share 0.24   0.10   0.11   (0.10 )
 
(In thousands, except per share amounts) March 31,
2014
June 30,
2014
September 30,
2014
December 31,
2014
Revenues $ 312,078 $ 327,379 $ 402,016 $ 444,556
Costs and expenses:
Cost of operations 255,227 258,351 313,646 439,772
Research and development costs 4,012 4,281 4,502 5,688
Losses on asset disposals and impairments 1,457 19 276
Selling, general and administrative expenses 49,212 53,040 58,414 64,605
Restructuring activities and spin-off transaction costs 1,478   7,513   2,752   8,440  
Total costs and expenses 309,929 324,642 379,333 518,781
Equity in income (loss) of investees 2,366   433   2,859   3,023  
Operating income (loss) 4,515 3,170 25,542 (71,202 )
 
Interest income 629 48 242 141
Interest expense (120 ) (84 ) (181 ) (107 )
Other, net 1,231   323   63   (828 )
Total other income (expense) 1,740 287 124 (794 )
Income before income tax expense (benefit) 6,255 3,457 25,666 (71,996 )
Income tax expense (benefit) (1,008 ) 1,841   12,894   (38,455 )
Income (loss) from continuing operations 7,263 1,616 12,772 (33,541 )
Income (loss) from discontinued operations, net of tax 3,942   3,397   (7,102 ) (14,509 )
Net income (loss) 11,205 5,013 5,670 (48,050 )
Net income attributable to noncontrolling interest (116 ) (77 ) (61 ) (112 )
Net income (loss) attributable to shareholders $ 11,089   $ 4,936   $ 5,609   $ (48,162 )
 
Income (loss) from continuing operations 7,147 1,539 12,711 (33,653 )
Income (loss) from discontinued operations, net of tax 3,942   3,397   (7,102 ) (14,509 )
Net income (loss) attributable to shareholders $ 11,089   $ 4,936   $ 5,609   $ (48,162 )
 
Earnings (loss) per common share
Basic

Continuing operations

$ 0.13 $ 0.03 $ 0.24 $ (0.63 )
Discontinued operations 0.07   0.06   (0.14 ) (0.27 )
Basic earnings (loss) per common share $ 0.20   $ 0.09   $ 0.10   $ (0.90 )
Diluted
Continuing operations $ 0.13 $ 0.03 $ 0.24 $ (0.63 )
Discontinued operations 0.07   0.06   (0.14 ) (0.27 )
Diluted earnings (loss) per common share 0.20   0.09   0.10   (0.90 )
 

Contacts

Babcock & Wilcox
Investor Contact:
Leslie Kass, 704-625-4944
Vice President Investor Relations and Communications
investors@babcock.com
or
Media Contact:
Ryan Cornell, 330-860-1345
Public Relations
rscornell@babcock.com

Release Summary

Babcock & Wilcox Announces Strong Fourth Quarter 2015 Results

Contacts

Babcock & Wilcox
Investor Contact:
Leslie Kass, 704-625-4944
Vice President Investor Relations and Communications
investors@babcock.com
or
Media Contact:
Ryan Cornell, 330-860-1345
Public Relations
rscornell@babcock.com