BWX Technologies(US:BWXT)2023-10-31 16:00Financial Performance - Consolidated revenues increased 12.7%, or $66.3 million, to $590.0 million for the three months ended September 30, 2023, compared to $523.7 million for the same period in 2022[97]. - Revenues for the nine months ended September 30, 2023, increased 10.8%, or $138.9 million, to $1,429.7 million compared to $1,290.8 million for the same period in 2022, driven by higher volumes in nuclear components and naval nuclear fuel[99]. - Operating income for the three months ended September 30, 2023, increased to $85.6 million, up $7.9 million from $77.7 million in the same period of 2022[126]. - Revenues in the Commercial Operations segment for the three months ended September 30, 2023, increased by 10.4%, or $10.6 million, to $112.4 million compared to $101.8 million in the same period of 2022[100]. - The net cash provided by operating activities increased by $4.9 million to $141.9 million for the nine months ended September 30, 2023, compared to $137.0 million for the same period in 2022[142]. Backlog and Contracts - The backlog as of September 30, 2023, was $3,980.8 million, including $455.3 million of unfunded backlog related to U.S. Government contracts, with approximately 57% expected to be recognized by the end of 2024[132]. - The company expects significant working capital contributions will be required for the first 12 months of a DOE contract if re-awarded, anticipated to transition in the first half of 2024[144]. Financing and Debt - The company’s total borrowings under the Term Loan as of September 30, 2023, totaled $245.3 million, with a weighted average interest rate of 6.93%[108]. - Cash used in financing activities increased by $98.5 million to $22.2 million in the nine months ended September 30, 2023, compared to $76.3 million cash provided in the same period of 2022[115]. - The company issued $400 million aggregate principal amount of 4.125% senior notes due 2028, guaranteed by its wholly owned domestic subsidiaries[137]. Compliance and Risk Management - As of September 30, 2023, the company was in compliance with all covenants set forth in the Credit Facility, which includes a maximum permitted total net leverage ratio of 4.00 to 1.00 and a minimum consolidated interest coverage ratio of 3.00 to 1.00[135]. - The company was in compliance with all covenants set forth in the 2021 Indenture and the Senior Notes due 2029 as of September 30, 2023[139]. - There have been no material changes to the company's risk factors from those disclosed in the 2022 10-K[147]. - If any default occurs under the Credit Facility, the company will be unable to borrow funds or have letters of credit issued[136]. Cash Management - The company has sufficient cash and cash equivalents, along with borrowing capacity, to satisfy cash requirements for the next 12 months and beyond[144]. - The company’s cash requirements have not changed materially from those disclosed in the 2022 10-K[144]. Operational Effectiveness - The effective tax rate for the three months ended September 30, 2023, was 22.8%, down from 24.6% in the same period of 2022[102]. - Long-term benefit obligations increased to $64.97 million as of September 30, 2023, compared to $52.89 million as of December 31, 2022[114]. - The design and operation of the company's disclosure controls and procedures were deemed effective as of September 30, 2023[145]. Acquisitions - The company acquired Dynamic Controls Limited and Citadel Capital Corporation on April 11, 2022, enhancing its capabilities in supplying engineered valves and fittings for naval and commercial vessels[93].