BWX Technologies(BWXT) - 2024 Q3 - Quarterly Report

Revenue and Income Growth - Consolidated revenues increased by 13.9%, or $82.0 million, to$672.0 million for the three months ended September 30, 2024, compared to $590.0 million for the same period in 2023[88]. - For the nine months ended September 30, 2024, consolidated revenues increased by 10.5$186.6 million, to $1,957.4 million compared to$1,770.8 million for the same period in 2023[90]. - Operating income for the three months ended September 30, 2024, increased by $11.2 million to$96.6 million, with Government Operations contributing an increase of $16.0 million[89]. - Operating income for the nine months ended September 30, 2024, increased by$28.5 million to $288.3 million, with Government Operations and Commercial Operations segments contributing increases of$21.4 million and $10.3 million, respectively[91]. - Operating income rose by$21.4 million to $279.8 million for the nine months ended September 30, 2024, compared to$258.4 million for the same period in 2023[96]. Segment Performance - Government Operations segment revenues rose by $82.2 million, reaching$560.1 million, driven by higher volume in nuclear components for U.S. Government programs and long-lead material procurements[93]. - The Government Operations segment's operating income margin was 18.1% for the three months ended September 30, 2024, compared to 17.9% for the same period in 2023[92]. - Commercial Operations segment revenues increased by $29.4 million for the nine months ended September 30, 2024, reaching$371.6 million[90]. - The increase in Government Operations revenues was partially offset by a decrease in revenues associated with downblending operations[93]. Expenses and Cash Flow - Unallocated Corporate expenses increased by $2.4 million for the three months ended September 30, 2024, compared to the same period in the prior year[89]. - Unallocated corporate expenses increased by$3.3 million for the nine months ended September 30, 2024, compared to the same period in 2023[102]. - Net cash provided by operating activities decreased by $10.4 million to$131.5 million in the nine months ended September 30, 2024, compared to $141.9 million in the same period of 2023[136]. - Net cash used in financing activities increased by$47.7 million to $69.9 million in the nine months ended September 30, 2024, compared to$22.2 million in the same period of 2023[138]. Backlog and Future Revenue - Total backlog as of September 30, 2024, was $3,380.7 million, down from$3,998 million as of December 31, 2023[109]. - The company expects to recognize approximately 48% of the revenue associated with its backlog by the end of 2025[110]. Debt and Financing - As of September 30, 2024, borrowings under the Term Loan totaled $239.1 million, with$548.6 million available under the Revolving Credit Facility[119]. - The weighted average interest rate on outstanding borrowings under the Credit Facility was 6.31% as of September 30, 2024[119]. - The company issued $400 million aggregate principal amount of 4.125$96.2 million[132]. - The company's working capital increased by $102.7 million to$545.5 million as of September 30, 2024, from $442.8 million at December 31, 2023[135]. Acquisition Plans - The company announced its intention to acquire Aerojet Ordinance Tennessee, Inc., expecting a significant cash investment during the fourth quarter of 2024[141]. Investments and Cash Equivalents - The company had long-term investments with a fair value of$10.7 million, primarily consisting of corporate bonds and mutual funds[140]. - As of September 30, 2024, letters of credit issued and outstanding under the bilateral letter of credit facility totaled approximately $35.6 million[131].