Babcock & Wilcox(US:BW)2022-05-08 16:00Financial Performance - Revenues for the three months ended March 31, 2022, were $204,049 thousand, an increase of 21.3% compared to $168,248 thousand in 2021[14] - Total costs and expenses increased to $210,832 thousand in Q1 2022 from $174,710 thousand in Q1 2021, representing a 20.7% rise[14] - The net loss attributable to stockholders was $11,979 thousand for Q1 2022, compared to a net loss of $15,464 thousand in Q1 2021, showing a 22.3% improvement[14] - Basic and diluted loss per share improved to $(0.14) in Q1 2022 from $(0.22) in Q1 2021[14] - The company reported a total comprehensive loss of $12,376 thousand for Q1 2022, down from $19,827 thousand in Q1 2021, indicating a 37.5% reduction[16] - Net loss for the three months ended March 31, 2022, was $8,684,000, an improvement from a net loss of $15,443,000 in 2021, representing a 43.5% reduction[24] - Adjusted EBITDA for the three months ended March 31, 2022, was $12,020,000, compared to $8,571,000 for the same period in 2021, representing an increase of 40.3%[41] - The net loss improved to $8.684 million in Q1 2022 from a net loss of $15.443 million in Q1 2021, showing progress in financial performance[184] Cash and Liquidity - Cash and cash equivalents as of March 31, 2022, were $108,137 thousand, a decrease from $224,874 thousand at December 31, 2021[18] - The company had a total stockholders' equity of $43,942 thousand as of March 31, 2022, compared to $58,622 thousand at December 31, 2021[21] - Net cash used in operating activities for Q1 2022 was $41,999,000, an improvement from $53,954,000 in Q1 2021[24] - The company has $110 million available under the Revolving Credit Agreement, with no borrowings as of March 31, 2022[73] - Liquidity requirements are primarily funded through cash generated from operations and external financing sources, including senior notes and revolving credit agreements[211] Segment Performance - The B&W Renewable segment generated revenues of $67,961,000 in Q1 2022, compared to $28,811,000 in Q1 2021, marking a significant increase[39] - The B&W Environmental segment reported revenues of $34,948,000, up from $31,160,000 in the same period last year, reflecting a 8.9% growth[39] - The B&W Thermal segment's revenues decreased to $102,239,000 from $108,281,000, indicating a decline of 5.5% year-over-year[39] - B&W Renewable segment revenue rose by $39.2 million to $67.961 million in Q1 2022, up from $28.811 million in Q1 2021, driven by acquisitions and increased project volume[188] - B&W Environmental segment revenues increased by 12%, or $3.8 million, to $34.9 million for the three months ended March 31, 2022, compared to $31.2 million in the same period of 2021[190] - B&W Thermal segment revenues decreased by 6%, or $6.0 million, to $102.2 million for the three months ended March 31, 2022, compared to $108.3 million in the same period of 2021[194] Assets and Liabilities - Total assets decreased to $954,699 thousand as of March 31, 2022, from $913,265 thousand at December 31, 2021[18] - Interest expense decreased to $11,267 thousand in Q1 2022 from $14,223 thousand in Q1 2021, reflecting a 20.5% reduction[14] - Contract liabilities increased to $100,130,000 as of March 31, 2022, from $68,615,000 at the end of 2021, reflecting a 46% increase[46] - The company recorded an increase in goodwill of $14.9 million due to the acquisition of Fosler, which included $14.5 million of accrued liabilities[49] - Total inventories as of March 31, 2022, were $90,401,000, compared to $79,527,000 at the end of 2021, indicating a 13.5% increase[51] Acquisitions and Investments - The company acquired 100% ownership of VODA A/S for approximately $32.9 million, focusing on aftermarket parts and services for energy-producing incineration plants[137] - The acquisition of Fossil Power Systems, Inc. was completed for approximately $59.1 million, excluding working capital adjustments, with a hold-back of $5.9 million contingent on certain conditions[139] - The company recognized a gain of $1.9 million from the sale of real property assets in Copley, Ohio, sold for $4.0 million[150] - A gain of $13.9 million was recognized from the sale of real property assets in Lancaster, Ohio, sold for $18.9 million[151] Legal and Regulatory Matters - The company has ongoing stockholder litigation regarding fiduciary duties related to the 2019 rights offering, with potential material impacts still undetermined[102] - The company expects no material adverse effects from routine litigation or disputes related to business activities[104] - The Glatfelter Litigation alleges damages in excess of $58.9 million, with the company seeking damages over $2.9 million in a counterclaim[101] Research and Development - Research and development costs increased to $719 thousand in Q1 2022 from $588 thousand in Q1 2021, marking a 22.3% increase[14] - Research and development expenses remained relatively stable at $0.7 million in Q1 2022, compared to $0.6 million in Q1 2021[198] Taxation - The effective tax rate for the three months ended March 31, 2022, was (16.5)%, compared to (22.5)% for the same period in 2021[97] - The company's consolidated effective income tax rate varies between approximately 19% and 30% due to foreign operations and jurisdictional mix[99]