Babcock & Wilcox(BW) - 2023 Q4 - Annual Results

Revenue Growth and Performance - Revenues from Continued Operations increased 18% Year over Year, reaching $999.4 million in 2023[23] - Full-year 2023 revenues reached $999.4 million, up from $847.9 million in 2022[41] - Total revenues for the year ended December 31, 2023, were $999.4 million, compared to $847.9 million in 2022, representing an increase of 17.9%[48] - Environmental segment revenues increased 31% to $202.9 million in 2023, driven by higher volume in SPIG[9] - Babcock & Wilcox Environmental segment revenues rose to $202.9 million in 2023 from $154.4 million in 2022, a 31.4% increase[48] - Thermal segment revenues increased 20% to $499.2 million in 2023, driven by a large construction project and increased package boiler business[31] - Babcock & Wilcox Thermal segment revenues grew to $499.2 million in 2023 from $415.1 million in 2022, a 20.3% increase[48] - Babcock & Wilcox Renewable segment revenues increased to $318.6 million in 2023 from $288.7 million in 2022, a 10.3% growth[48] Adjusted EBITDA and Financial Metrics - Adjusted EBITDA of $79.1 million in 2023, a 17% increase compared to $67.5 million in 2022[23] - Adjusted EBITDA for the year ended December 31, 2023, was $79.1 million, up from $67.5 million in 2022, reflecting a 17.2% increase[48] - Adjusted EBITDA for the year ended December 2023 was $79.1 million, up from $67.5 million in 2022[66] - Adjusted EBITDA excluding BrightLoop and ClimateBright introduced in Q4 2023 to assess performance independent of these technologies[35] - Adjusted EBITDA excluding BrightLoop and ClimateBright expenses was $84.1 million in 2023, up from $71.8 million in 2022[66] Net Loss and Operating Performance - Net loss of $78.6 million in 2023, including non-cash items of $38.0 million primarily related to pension mark-to-market adjustments[23] - Net loss for Q4 2023 was $62.7 million, compared to a net income of $5.7 million in Q4 2022[41] - Net loss from continuing operations increased to $78.6 million in 2023 from $20.0 million in 2022[62] - Operating income for Q4 2023 was $0.7 million, compared to $6.3 million in Q4 2022[41] Bookings and Backlog - Bookings in 2023 were $878.3 million, a 2% increase compared to full year 2022 bookings[29] - Ending backlog at December 31, 2023 was $530.5 million, a 3% decrease compared to December 31, 2022[29] - Backlog includes expected revenue from contracts with written customer confirmation, subject to cancellation or modification[36] - Bookings represent changes to backlog, including new business, cancellations, and foreign currency revaluation[37] - Backlog for Babcock & Wilcox Renewable increased to $134 million in 2023 from $129 million in 2022[64] Segment Performance - Renewable segment revenues decreased 33% to $62.2 million in Q4 2023, due to strategic shift away from lower margin new build projects[27] - The company is exiting its remaining fixed fee Operational and Maintenance Contract in the Renewable segment, which was completed as of December 31, 2023[55] Research and Development Costs - Research and development costs increased to $5.3 million in Q4 2023 from $1.0 million in Q4 2022[41] - Research and development costs for the year ended December 31, 2023, were $4.0 million, compared to $3.3 million in 2022, a 21.2% increase[48] - Product development expenses increased to $9.0 million in 2023 from $4.1 million in 2022[66] - BrightLoop and ClimateBright expenses totaled $12.0 million in 2023, up from $6.4 million in 2022[66] Financial Position and Liabilities - Total current assets decreased to $497.6 million as of December 31, 2023, from $557.6 million in 2022, a decline of 10.8%[43] - Total liabilities increased to $976.0 million as of December 31, 2023, from $943.8 million in 2022, a 3.4% rise[43] - The company's total stockholders' deficit increased to $200.4 million as of December 31, 2023, from $2.1 million in 2022[43] - Borrowings on loan payable increased to $252.5 million in 2023 from $7.2 million in 2022[63] - Repayments on loan payable were $226.6 million in 2023 compared to $16.9 million in 2022[63] Cash Flow and Investments - Net cash used in operating activities was $42.3 million in 2023 compared to $30.6 million in 2022[62] - Net cash used in investing activities decreased to $7.9 million in 2023 from $68.8 million in 2022[62] Strategic Initiatives and Opportunities - Company completed a new $150 million Senior Secured Credit Facility, expected to reduce interest cost by up to $5 million per year[2][11] - Pipeline expanded to over $9.0 billion in identified global project opportunities, including over $1.5 billion in BrightLoop and ClimateBright opportunities[2] Forward-Looking Statements and Risks - Forward-looking statements highlight risks including global macroeconomic conditions, integration of acquisitions, and refinancing of senior debt[38] - The company is unable to reconcile future Adjusted EBITDA targets to GAAP counterparts without unreasonable effort[35]