CHARLOTTE, N.C.--(BUSINESS WIRE)--The Babcock & Wilcox Company (NYSE: BWC) (“B&W” or the “Company”) today reported fourth quarter 2012 revenues of $865.3 million, an increase of $64.5 million, or 8.1% from the fourth quarter of 2011. GAAP earnings per share for the fourth quarter 2012 were $0.33 compared to a loss of $0.53 in the fourth quarter of 2011. Adjusted earnings per share were $0.56 for the fourth quarter of 2012, a decrease of 13.8% from the adjusted earnings per share of $0.65 for the fourth quarter of 2011, excluding the impact in both periods of the mark-to-market adjustments for pension and postretirement plans and non-recurring tax adjustments.
Revenues for the full year of 2012 were $3,291.4 million, an increase of 11.5% from the $2,952.0 million recorded in 2011. GAAP earnings per share for the full year of 2012 were $1.91 compared to $0.66 in 2011. Full year 2012 adjusted earnings per share increased 17.9% to $2.17 versus adjusted earnings per share of $1.84 in the prior year, excluding the impact of the mark-to-market adjustments for pension and postretirement plans and non-recurring items.
The Company repurchased 3.9 million common shares at a total cost of $96.8 million in the fourth quarter 2012 under its $250 million share repurchase program. An additional 1.6 million shares have been repurchased through February 27, 2013 at an incremental cost of $42.3 million. The Company has approximately $110.9 million of authorized capacity remaining and intends to continue repurchasing shares.
Recent Highlights
- Selected as the only Winner of DOE’s Small Modular Reactor Licensing Technical Support Program
- Awarded $510 Million Naval Nuclear Component Contracts
- Awarded $100 Million Contract for U.K. Waste-to-Energy Plant
- Awarded $100 Million Naval Nuclear Fuel Services and Materials Contracts
- Awarded $36 Million Naval Reactors Assembly and Materials Procurement Contract
- Signed Contract to Prepare TVA Clinch River mPower™ Construction Permit Application
- Awarded Environmental Equipment Control Contract for Iowa Power Plant
Results of Operations
Consolidated revenues for the fourth quarter of 2012 were $865.3 million, an increase of $64.5 million, or 8.1%, from the fourth quarter of 2011. The Power Generation segment revenues increased $36.9 million, or 9.0%, primarily due to an increase in new-build environmental equipment revenues. Nuclear Operations segment revenues increased $32.3 million, or 12.2%, primarily due to increased production of fuel for the naval reactor program and increased manufacturing of nuclear components for certain U.S. Government programs. Nuclear Energy segment revenues decreased $3.8 million, or 3.7%, and Technical Services revenues decreased $3.5 million, or 10.9%.
GAAP operating income for the fourth quarter of 2012 was $65.7 million, an increase of $169.1 million, compared to a loss of $103.4 million in the fourth quarter of 2011. Adjusted operating income for the fourth quarter, excluding the pension mark-to-market losses of $31.9 million and $215.4 million in 2012 and 2011, respectively, was $97.6 million in the fourth quarter of 2012 and $112.0 million for the same period in 2011. Lower operating income in the Power Generation segment was due primarily to a lower level of net project improvements than in the fourth quarter of 2011 and more competitive margins from the current cycle of environmental projects. In the Nuclear Energy segment, the decrease was primarily due to the timing of a large service contract performed in the fourth quarter of 2011. Technical Services segment operating income was lower primarily as a result of decreased fee awards earned on our NNSA managed sites. These decreases were partially offset by continued strong performance in the Nuclear Operations segment.
“In 2012, we produced strong financial results, returned excess capital to shareholders, and initiated changes throughout the organization that we expect will improve profitability and cash flow in the years to come,” said E. James Ferland, President and Chief Executive Officer of B&W. “Our focus in 2013 will be on increasing the value of our existing businesses by focusing on what we do well and leveraging those competencies to drive organic growth, following through on plans to improve the efficiency and effectiveness of the organization, executing our SMR strategy, and evaluating external growth opportunities, including global diversification. I am encouraged by the opportunities we have in 2013 and am committed to meaningfully increasing value for our shareholders.”
Global Competitiveness Initiative (“GCI”)
The Global Competitiveness Initiative was launched in the third quarter of 2012 to enhance competitiveness, better position the Company for growth, and improve profitability. The Company has identified a wide range of cost reduction activities including operational and functional efficiency improvements, organizational design changes, and manufacturing optimization. Once fully executed, these actions are expected to produce a total of $40 million to $50 million in annual savings. Roughly half of the annual savings will result from efficiency improvements that will be completed by the end of 2013. The balance of the cost savings relates to manufacturing initiatives that will be completed by mid-2015. In order to achieve these savings, the Company expects to incur total restructuring charges (cash and non-cash) not to exceed $60 million.
Liquidity
The Company’s cash and investments position, net of debt, was $532.9 million at the end of the fourth quarter of 2012, an increase of $130.7 million compared to $402.2 million at the end of the third quarter of 2012. The fourth quarter typically represents the highest cash flow quarter of the year. In the fourth quarter of 2012, free cash flow was the result of strong operating income, the timing of payments from the U.S. Government related to annual retainage and fees earned, dividends received from joint ventures, and strong working capital performance in the period, partially offset by the use of $96.8 million for share repurchases and $9.5 million for dividends paid to common shareholders. In addition to net cash, the Company maintains a $700.0 million revolving credit facility, which had $542.1 million of availability as of the end of the fourth quarter. The Company believes it maintains adequate liquidity to fund operations, which could include increased working capital requirements to fund internal growth, R&D programs, capital distribution programs, and product and geographic expansion opportunities.
Full Year 2013 Outlook
The Company is targeting 2013 consolidated revenues of $3.40 billion to $3.55 billion and adjusted earnings per share for the full year 2013 of $2.25 to $2.45. Adjusted EPS excludes the mark-to-market adjustment for pension and postretirement benefits and GCI restructuring charges. Further, it assumes, net B&W mPower™ spending of $85 million to $95 million, savings from GCI realized in 2013 of $10 million to $15 million, an effective tax rate of between 33% and 35%, and no unusual items.
Reconciliation of Non-GAAP Operating Income and Earnings Per Share
(in $ millions, except per share amounts)
|
Q4 2012 |
Impair- |
One-time |
Pension |
Q4 2012 |
Pension |
Q4 2012 |
|||||||||||||||||||||||||||||||
| Operating Income | $ | 65.7 | $ | - | $ | - | $ | 31.9 | $ | 97.6 | $ | (19.4 | ) | $ | 78.2 | ||||||||||||||||||||||
| Other Income / (Expense) | (1.5 | ) | - | - | 0.2 | (1.4 | ) | - | (1.4 | ) | |||||||||||||||||||||||||||
| Provision for Income Taxes | (27.2 | ) | - | 6.8 | (11.0 | ) | (31.4 | ) | 6.2 | (25.3 | ) | ||||||||||||||||||||||||||
| Net Income | 36.9 | - | 6.8 | 21.1 | 64.7 | (13.3 | ) | 51.5 | |||||||||||||||||||||||||||||
| Net Loss (Income) Attributable to Non-Controlling Interest | 2.2 | - | - | - | 2.2 | - | 2.2 | ||||||||||||||||||||||||||||||
| Net Income Attributable to The Babcock & Wilcox Company | $ | 39.1 | $ | - | $ | 6.8 | $ | 21.1 | $ | 66.9 | $ | (13.3 | ) | $ | 53.7 | ||||||||||||||||||||||
| Diluted Earnings per Common Share | $ | 0.33 | $ | - | $ | 0.06 | $ | 0.18 | $ | 0.56 | $ | (0.11 | ) | $ | 0.45 | ||||||||||||||||||||||
|
FY 2012 |
Impair- |
One-time |
Pension |
FY 2012 |
Pension |
FY 2012 |
|||||||||||||||||||||||||||||||
| Operating Income | $ | 346.6 | $ | 2.6 | $ | - | $ | 31.9 | $ | 381.1 | $ | (77.9 | ) | $ | 303.2 | ||||||||||||||||||||||
| Other Income / (Expense) | (27.2 | ) | 27.0 | - | 0.2 | 0.0 | (0.1 | ) | (0.1 | ) | |||||||||||||||||||||||||||
| Provision for Income Taxes | (101.9 | ) | (1.0 | ) | (18.5 | ) | (11.0 | ) | (132.4 | ) | 27.5 | (104.9 | ) | ||||||||||||||||||||||||
| Net Income | 217.6 | 28.6 | (18.5 | ) | 21.1 | 248.7 | (50.6 | ) | 198.1 | ||||||||||||||||||||||||||||
| Net Loss (Income) Attributable to Non-Controlling Interest | 10.1 | - | - | - | 10.1 | - | 10.1 | ||||||||||||||||||||||||||||||
| Net Income Attributable to The Babcock & Wilcox Company | $ | 227.7 | $ | 28.6 | $ | (18.5 | ) | $ | 21.1 | $ | 258.8 | $ | (50.6 | ) | $ | 208.2 | |||||||||||||||||||||
| Diluted Earnings per Common Share | $ | 1.91 | $ | 0.24 | $ | (0.16 | ) | $ | 0.18 | $ | 2.17 | $ | (0.43 | ) | $ | 1.75 | |||||||||||||||||||||
|
Q4 2011 |
Pension |
Q4 2011 |
Pension |
Q4 2011 |
|||||||||||||||||||||||
| Operating Income (Loss) | $ | (103.4 | ) | $ | 215.4 | $ | 112.0 | $ | (18.7 | ) | $ | 93.3 | |||||||||||||||
| Other Income / (Expense) | (3.9 | ) | 0.3 | (3.6 | ) | (0.1 | ) | (3.7 | ) | ||||||||||||||||||
| Provision for Income Taxes | 42.1 | (76.5 | ) | (34.4 | ) | 6.8 | (27.6 | ) | |||||||||||||||||||
| Net Income (Loss) | (65.2 | ) | 139.2 | 74.0 | (11.9 | ) | 62.0 | ||||||||||||||||||||
| Net Loss (Income) Attributable to Non-Controlling Interest | 2.2 | - | 2.2 | - | 2.2 | ||||||||||||||||||||||
| Net Income (Loss) Attributable to The Babcock & Wilcox Company | $ | (63.0 | ) | $ | 139.2 | $ | 76.2 | $ | (11.9 | ) | $ | 64.3 | |||||||||||||||
|
|
|||||||||||||||||||||||||||
| Diluted Earnings per Common Share | $ | (0.53 | ) | $ | 1.18 | $ | 0.65 | $ | (0.10 | ) | $ | 0.54 | |||||||||||||||
|
FY 2011 |
Pension |
FY 2011 |
Pension |
FY 2011 |
|||||||||||||||||||||||
| Operating Income | $ | 95.7 | $ | 215.4 | $ | 311.1 | $ | (75.1 | ) | $ | 236.0 | ||||||||||||||||
| Other Income / (Expense) | (1.2 | ) | 0.3 | (0.8 | ) | (0.2 | ) | (1.0 | ) | ||||||||||||||||||
| Provision for Income Taxes | (23.9 | ) | (76.5 | ) | (100.4 | ) | 27.4 | (73.0 | ) | ||||||||||||||||||
| Net Income | 70.6 | 139.2 | 209.8 | (47.9 | ) | 162.0 | |||||||||||||||||||||
| Net Loss (Income) Attributable to Non-Controlling Interest | 7.7 | - | 7.7 | - | 7.7 | ||||||||||||||||||||||
| Net Income Attributable to The Babcock & Wilcox Company | $ | 78.3 | $ | 139.2 | $ | 217.5 | $ | (47.9 | ) | $ | 169.7 | ||||||||||||||||
| Diluted Earnings per Common Share | $ | 0.66 | $ | 1.18 | $ | 1.84 | $ | (0.40 | ) | $ | 1.43 | ||||||||||||||||
The Company is providing non-GAAP information regarding certain of its historical results and guidance on future earnings per share results 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.
Conference Call to Discuss Fourth Quarter 2012 Results
|
Date: |
Thursday, February 28, 2013, at 8:30 a.m. ET | ||
|
Live Webcast: |
Investor Relations section of website at www.babcock.com |
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Forward-Looking Statements
The Company cautions that this release contains forward-looking statements, including, without limitation, statements relating to expected revenues and adjusted earnings per share for full-year 2013, including assumptions underlying those expectations; our expectations with respect to the savings, benefits, timing and charges associated with our Global Competitiveness Initiative; and our focus and commitments for 2013. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, adverse changes in the industries in which we operate, our inability to timely or properly execute on contracts in backlog, delays or other difficulties implementing our Global Competitiveness Initiative, our inability to obtain third-party funding for portions of our B&W mPower™ program or our inability to control research and development costs associated with the B&W mPower™ program. 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 its annual report on Form 10-K for the year ended December 31, 2012. B&W 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 B&W
The Babcock & Wilcox Company is a leader in clean energy technology and services, primarily for the nuclear, fossil and renewable power markets as well as a premier advanced technology and mission critical defense contractor. B&W has locations worldwide and employs approximately 14,000 people, in addition to approximately 10,400 joint venture employees. A company overview presentation, which will be presented at investor conferences and meetings throughout this quarter, is available on the Investor Relations section of our website. For additional information please visit our website at www.babcock.com.
TABLES TO FOLLOW
|
THE BABCOCK & WILCOX COMPANY CONSOLIDATED BALANCE SHEETS |
||||||||||
| December 31, | ||||||||||
| 2012 | 2011 | |||||||||
| (In thousands) | ||||||||||
| ASSETS | ||||||||||
| Current Assets: | ||||||||||
| Cash and cash equivalents | $ | 383,547 | $ | 415,209 | ||||||
| Restricted cash and cash equivalents | 60,961 | 61,190 | ||||||||
| Investments | 88,769 | 68,805 | ||||||||
| Accounts receivable – trade, net | 364,960 | 305,832 | ||||||||
| Accounts receivable – other | 61,682 | 77,505 | ||||||||
| Contracts in progress | 316,518 | 315,286 | ||||||||
| Inventories | 124,218 | 107,298 | ||||||||
| Deferred income taxes | 78,573 | 102,022 | ||||||||
| Other current assets | 41,858 | 33,929 | ||||||||
| Total Current Assets | 1,521,086 | 1,487,076 | ||||||||
| Property, Plant and Equipment | 1,099,040 | 1,017,422 | ||||||||
| Less accumulated depreciation | 652,019 | 595,131 | ||||||||
| Net Property, Plant and Equipment | 447,021 | 422,291 | ||||||||
| Investments | 4,090 | 3,775 | ||||||||
| Goodwill | 280,780 | 276,180 | ||||||||
| Deferred Income Taxes | 227,215 | 241,739 | ||||||||
| Investments in Unconsolidated Affiliates | 186,354 | 163,568 | ||||||||
| Other Assets | 173,809 | 194,482 | ||||||||
| TOTAL | $ | 2,840,355 | $ | 2,789,111 | ||||||
|
THE BABCOCK & WILCOX COMPANY CONSOLIDATED BALANCE SHEETS |
||||||||||||
| December 31, | ||||||||||||
| 2012 | 2011 | |||||||||||
| (In thousands) | ||||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
| Current Liabilities: | ||||||||||||
| Notes payable and current maturities of long-term debt | $ | 4,062 | $ | 4,653 | ||||||||
| Accounts payable | 264,798 | 237,494 | ||||||||||
| Accrued employee benefits | 186,495 | 303,803 | ||||||||||
| Accrued liabilities – other | 57,991 | 71,079 | ||||||||||
| Advance billings on contracts | 472,287 | 438,753 | ||||||||||
| Accrued warranty expense | 83,682 | 97,209 | ||||||||||
| Income taxes payable | 9,973 | 1,816 | ||||||||||
| Total Current Liabilities | 1,079,288 | 1,154,807 | ||||||||||
| Long-Term Debt | 430 | 633 | ||||||||||
| Accumulated Postretirement Benefit Obligation | 71,208 | 80,663 | ||||||||||
| Environmental Liabilities | 46,497 | 44,069 | ||||||||||
| Pension Liability | 579,165 | 586,045 | ||||||||||
| Other Liabilities | 60,851 | 87,921 | ||||||||||
| Commitments and Contingencies (Note 10) | ||||||||||||
| Stockholders’ Equity: | ||||||||||||
| Common stock, par value $0.01 per share, authorized 325,000,000 shares; issued 119,608,026 and 118,458,911 shares at December 31, 2012 and December 31, 2011, respectively | 1,196 | 1,185 | ||||||||||
| Preferred stock, par value $0.01 per share, authorized 75,000,000 shares; no shares issued |
- |
- |
||||||||||
| Capital in excess of par value | 713,257 | 676,952 | ||||||||||
| Retained earnings | 349,063 | 130,890 | ||||||||||
| Treasury stock at cost, 4,372,143 and 351,876 shares at December 31, 2012 and December 31, 2011, respectively | (109,809 | ) | (10,059 | ) | ||||||||
| Accumulated other comprehensive income | 32,728 | 26,826 | ||||||||||
| Stockholders’ Equity – The Babcock & Wilcox Company | 986,435 | 825,794 | ||||||||||
| Noncontrolling interest | 16,481 | 9,179 | ||||||||||
| Total Stockholders’ Equity | 1,002,916 | 834,973 | ||||||||||
| TOTAL | $ | 2,840,355 | $ | 2,789,111 | ||||||||
|
THE BABCOCK & WILCOX COMPANY CONSOLIDATED STATEMENTS OF INCOME (LOSS) |
||||||||||||||||||||
|
|
||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| Revenues | $ | 865,296 | $ | 800,789 | $ | 3,291,359 | $ | 2,952,040 | ||||||||||||
| Costs and Expenses: | ||||||||||||||||||||
| Cost of operations | 673,894 | 748,856 | 2,461,205 | 2,384,154 | ||||||||||||||||
|
Research and development costs |
29,483 | 31,878 | 120,562 | 106,396 | ||||||||||||||||
|
(Gains) losses on asset disposals and Impairments – net |
(319 | ) | (3,713 | ) | 1,419 | (3,087 | ) | |||||||||||||
| Selling, general and administrative expenses | 114,664 | 149,343 | 428,293 | 447,561 | ||||||||||||||||
| Total Costs and Expenses | 817,722 | 926,364 | 3,011,479 | 2,935,024 | ||||||||||||||||
| Equity in Income of Investees | 18,119 | 22,131 | 66,709 | 78,655 | ||||||||||||||||
| Operating Income (Loss) | 65,693 | (103,444 | ) | 346,589 | 95,671 | |||||||||||||||
| Other Income (Expense): | ||||||||||||||||||||
| Interest income | 337 | 331 | 1,491 | 1,342 | ||||||||||||||||
| Interest expense | (964 | ) | (2,021 | ) | (3,735 | ) | (4,543 | ) | ||||||||||||
| Other income (expense) – net | (920 | ) | (2,256 | ) | (24,927 | ) | 2,028 | |||||||||||||
| (1,547 | ) | (3,946 | ) | (27,171 | ) | (1,173 | ) | |||||||||||||
|
Income (Loss) before Provision for (Benefit from) Income Taxes |
64,146 | (107,390 | ) |
319,418 |
94,498 |
|||||||||||||||
| Provision for (Benefit from) Income Taxes | 27,250 | (42,149 | ) | 101,861 | 23,880 | |||||||||||||||
| Net Income (Loss) | $ | 36,896 | $ | (65,241 | ) | $ | 217,557 | $ | 70,618 | |||||||||||
| Net Loss Attributable to Noncontrolling Interest | 2,175 | 2,232 | 10,138 | 7,701 | ||||||||||||||||
|
Net Income (Loss) Attributable to The Babcock & Wilcox Company |
$ | 39,071 | $ | (63,009 | ) | $ | 227,695 | $ | 78,319 | |||||||||||
| Earnings per Common Share: | ||||||||||||||||||||
| Basic: | ||||||||||||||||||||
|
Net Income Attributable to The Babcock & Wilcox Company |
$ | 0.33 | $ | (0.53 | ) | $ | 1.92 | $ | 0.67 | |||||||||||
| Diluted: | ||||||||||||||||||||
|
Net Income Attributable to The Babcock & Wilcox Company |
$ | 0.33 | $ | (0.53 | ) | $ | 1.91 | $ | 0.66 | |||||||||||
|
Shares used in the computation of earnings per share |
||||||||||||||||||||
| Basic | 117,928,087 | 117,998,268 | 118,418,930 | 117,560,594 | ||||||||||||||||
| Diluted | 118,515,360 | 117,998,268 | 119,021,324 | 118,404,597 | ||||||||||||||||
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THE BABCOCK & WILCOX COMPANY CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS |
|||||||||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2012 | 2011 | 2010 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||
| Net Income | $ | 217,557 | $ | 70,618 | $ | 140,203 | |||||||||||
| Non-cash items included in net income: | |||||||||||||||||
| Depreciation and amortization | 69,697 | 73,003 | 71,633 | ||||||||||||||
| Income of investees, net of dividends | (15,115 | ) | (20,854 | ) | (20,449 | ) | |||||||||||
| Losses (gains) on asset disposals and impairments – net | 1,419 | (3,087 | ) | 38 | |||||||||||||
| Impairment of USEC investment | 27,000 | - | - | ||||||||||||||
| In-kind research and development costs | 17,942 | 16,584 | - | ||||||||||||||
| Provision for (benefit from) deferred taxes | 43,038 | (19,200 | ) | 31,168 | |||||||||||||
| Recognition of losses and prior service cost for pension and postretirement plans | 35,480 | 219,508 | 95,547 | ||||||||||||||
| Stock-based compensation expense | 18,009 | 17,927 | 16,308 | ||||||||||||||
| Excess tax benefits from stock-based compensation | (1,571 | ) | (4,083 | ) | (5,276 | ) | |||||||||||
| Changes in assets and liabilities, net of effects from acquisitions: | |||||||||||||||||
| Accounts receivable | (52,034 | ) | (26,887 | ) | 101,260 | ||||||||||||
| Accounts payable | 30,391 | 48,246 | 19,882 | ||||||||||||||
| Net contracts in progress and advance billings | 32,527 | (28,746 | ) | (153,933 | ) | ||||||||||||
| Income taxes | 5,522 |
31,961 |
9,239 |
|
|||||||||||||
| Accrued and other current liabilities | (30,553 | ) | (23,106 | ) | (9,761 | ) | |||||||||||
| Pension liability and accrued postretirement and employee benefits | (168,004 | ) | (144,802 | ) | (85,371 | ) | |||||||||||
| Other | (46,378 | ) |
(33,491 |
) |
(18,082 |
) |
|||||||||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 184,927 | 173,591 | 192,406 | ||||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||
| Decrease (increase) in restricted cash and cash equivalents | 229 | (48,923 | ) | 3,038 | |||||||||||||
| Purchases of property, plant and equipment | (86,635 | ) | (63,874 | ) | (63,649 | ) | |||||||||||
| Acquisition of businesses, net of cash acquired | (318 | ) | (11,907 | ) | (29,962 | ) | |||||||||||
| Purchases of available-for-sale securities | (268,929 | ) | (145,198 | ) | (135,135 | ) | |||||||||||
| Sales and maturities of available-for-sale securities | 247,649 | 147,288 | 134,276 | ||||||||||||||
| Proceeds from asset disposals | 580 | 6,468 | 753 | ||||||||||||||
| Proceeds from sale of an unconsolidated affiliate | 2,091 | - | - | ||||||||||||||
| Investments, net of return of capital, in equity and cost method investees | (6,064 | ) | (38,176 | ) | (42,912 | ) | |||||||||||
| Decrease in note receivable from affiliate | - | - | 43,277 | ||||||||||||||
| NET CASH USED IN INVESTING ACTIVITIES | (111,397 | ) | (154,322 | ) | (90,314 | ) | |||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||
| Payment of short-term borrowings and long-term debt | (4,643 | ) | (1,782 | ) | (29,914 | ) | |||||||||||
| Payment of debt issuance costs | (4,902 | ) | (82 | ) | (9,994 | ) | |||||||||||
| Increase in short-term borrowing | 3,815 | 1,254 | 25,000 | ||||||||||||||
| Repurchase of common shares | (96,774 | ) | - | - | |||||||||||||
| Dividends paid to common shareholders | (9,485 | ) | - | - | |||||||||||||
| Dividend paid to McDermott International, Inc. | - | - | (100,000 | ) | |||||||||||||
| Capital contribution from McDermott International, Inc. | - | - | 12,501 | ||||||||||||||
| Distribution to McDermott International, Inc. | - | - | (43,334 | ) | |||||||||||||
| (Decrease) Increase in notes payable to affiliates | - | - | (43,386 | ) | |||||||||||||
| Exercise of stock options | 2,926 | 4,463 | 211 | ||||||||||||||
| Excess tax benefits from stock-based compensation | 1,571 | 4,083 | 5,276 | ||||||||||||||
| Other | (514 | ) | (401 | ) | (93 | ) | |||||||||||
| NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (108,006 | ) | 7,535 | (183,733 | ) | ||||||||||||
| EFFECTS OF EXCHANGE RATE CHANGES ON CASH | 2,814 | (2,737 | ) | 3,315 | |||||||||||||
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (31,662 | ) | 24,067 | (78,326 | ) | ||||||||||||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 415,209 | 391,142 | 469,468 | ||||||||||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 383,547 | $ | 415,209 | $ | 391,142 | |||||||||||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||||||||||||
| Cash paid during the period for: | |||||||||||||||||
| Interest (net of amount capitalized) | $ | 3,842 | $ | 4,525 | $ | 3,746 | |||||||||||
| Income taxes (net of refunds) | $ | 83,062 | $ | 33,505 | $ | 27,227 | |||||||||||
|
The Babcock & Wilcox Company Business Segment Information (Restated) For the Periods Ended December 31, 2012 and 2011 (In thousands of U.S. dollars) |
||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| 12/31/12 | 12/31/11 | 12/31/12 | 12/31/11 | |||||||||||||||||
|
REVENUES: |
||||||||||||||||||||
| Power Generation | $ | 448,286 | $ | 411,420 | $ | 1,785,959 | $ | 1,541,509 | ||||||||||||
| Nuclear Operations | 298,005 | 265,703 | 1,098,031 | 1,043,185 | ||||||||||||||||
| Technical Services | 28,586 | 32,113 | 107,851 | 119,711 | ||||||||||||||||
| Nuclear Energy | 96,959 | 100,736 | 325,953 | 321,406 | ||||||||||||||||
| Adjustments and Eliminations | (6,540 | ) | (9,183 | ) | (26,435 | ) | (73,771 | ) | ||||||||||||
| TOTAL | $ | 865,296 | $ | 800,789 | $ | 3,291,359 | $ | 2,952,040 | ||||||||||||
|
SEGMENT INCOME: |
||||||||||||||||||||
| Power Generation | $ | 45,178 | $ | 57,227 | $ | 183,387 | $ | 183,984 | ||||||||||||
| Nuclear Operations | 59,156 | 49,368 | 226,269 | 194,438 | ||||||||||||||||
| Technical Services | 14,041 | 21,303 | 59,655 | 69,915 | ||||||||||||||||
| Nuclear Energy | (16,193 | ) | (9,939 | ) | (62,879 | ) | (116,887 | ) | ||||||||||||
| SUBTOTAL | 102,182 | 117,959 | 406,432 | 331,450 | ||||||||||||||||
| Corporate | (4,599 | ) | (5,985 | ) | (27,953 | ) | (20,361 | ) | ||||||||||||
| Mark to Market Adjustment | (31,890 | ) | (215,418 | ) | (31,890 | ) | (215,418 | ) | ||||||||||||
| TOTAL | $ | 65,693 | $ | (103,444 | ) | $ | 346,589 | $ | 95,671 | |||||||||||
|
EQUITY IN INCOME OF INVESTEES: |
||||||||||||||||||||
| Power Generation | $ | 6,312 | $ | 5,866 | $ | 17,402 | $ | 25,778 | ||||||||||||
| Nuclear Operations | 0 | 0 | 0 | 0 | ||||||||||||||||
| Technical Services | 12,121 | 16,265 | 49,621 | 52,877 | ||||||||||||||||
| Nuclear Energy | (314 | ) | 0 | (314 | ) | 0 | ||||||||||||||
| TOTAL | $ | 18,119 | $ | 22,131 | $ | 66,709 | $ | 78,655 | ||||||||||||
|
PENSION EXPENSE: |
||||||||||||||||||||
| Power Generation | $ | 3,172 | $ | 3,995 | $ | 15,744 | $ | 16,561 | ||||||||||||
| Nuclear Operations | 3,391 | 2,360 | 13,565 | 11,089 | ||||||||||||||||
| Technical Services | 215 | 198 | 861 | 792 | ||||||||||||||||
| Nuclear Energy | 1,463 | 660 | 3,056 | 2,611 | ||||||||||||||||
| Corporate | 842 | 798 | 2,873 | 2,743 | ||||||||||||||||
| Mark to Market Adjustment | 34,496 | 212,802 | 34,496 | 212,802 | ||||||||||||||||
| TOTAL | $ | 43,579 | $ | 220,813 | $ | 70,595 | $ | 246,598 | ||||||||||||
|
|
||||||||||||||||||||
|
DEPRECIATION AND AMORTIZATION: |
||||||||||||||||||||
| Power Generation | $ | 4,814 | $ | 3,892 | $ | 19,126 | $ | 17,264 | ||||||||||||
| Nuclear Operations | 7,334 | 9,103 | 32,013 | 38,169 | ||||||||||||||||
| Technical Services | 55 | 65 | 244 | 262 | ||||||||||||||||
| Nuclear Energy | 1,640 | 1,393 | 6,202 | 5,346 | ||||||||||||||||
| Corporate | 3,036 | 3,057 | 12,112 | 11,962 | ||||||||||||||||
| TOTAL | $ | 16,879 | $ | 17,510 | $ | 69,697 | $ | 73,003 | ||||||||||||
|
RESEARCH AND DEVELOPMENT, NET: |
||||||||||||||||||||
| Power Generation | $ | 6,692 | $ | 6,907 | $ | 22,952 | $ | 21,325 | ||||||||||||
| Nuclear Operations | 0 | 178 | 119 | 234 | ||||||||||||||||
| Technical Services | 315 | 1,232 | 654 | 1,878 | ||||||||||||||||
| Nuclear Energy | 22,476 | 23,561 | 96,837 | 82,959 | ||||||||||||||||
| TOTAL | $ | 29,483 | $ | 31,878 | $ | 120,562 | $ | 106,396 | ||||||||||||
|
CAPITAL EXPENDITURES: |
||||||||||||||||||||
| Power Generation | $ | 8,471 | $ | 5,173 | $ | 24,592 | $ | 15,788 | ||||||||||||
| Nuclear Operations | 14,308 | 10,315 | 44,810 | 32,082 | ||||||||||||||||
| Technical Services | 0 | 0 | 0 | 0 | ||||||||||||||||
| Nuclear Energy | 4,101 | 928 | 8,435 | 7,257 | ||||||||||||||||
| Corporate | 975 | 3,461 | 8,798 | 8,747 | ||||||||||||||||
| TOTAL | $ | 27,855 | $ | 19,877 | $ | 86,635 | $ | 63,874 | ||||||||||||
|
BACKLOG: |
||||||||||||||||||||
| Power Generation | $ | 2,483,046 | $ | 1,947,274 | $ | 2,483,046 | $ | 1,947,274 | ||||||||||||
| Nuclear Operations | 2,983,864 | 2,995,364 | 2,983,864 | 2,995,364 | ||||||||||||||||
| Technical Services | 4,503 | 13,756 | 4,503 | 13,756 | ||||||||||||||||
| Nuclear Energy | 278,003 | 382,638 | 278,003 | 382,638 | ||||||||||||||||
| TOTAL | $ | 5,749,416 | $ | 5,339,032 | $ | 5,749,416 | $ | 5,339,032 | ||||||||||||