Babcock & Wilcox(US:BW)2019-08-09 00:24Financial Data and Key Metrics Changes - Consolidated revenues for Q2 2019 were $248.1 million, a decrease of $43.2 million compared to Q2 2018 [13] - GAAP operating loss improved to $4.3 million in Q2 2019 from an operating loss of $137.4 million in Q2 2018, driven by improved gross profit across segments [14] - Adjusted EBITDA for Q2 2019 was $8 million, an improvement of $90.4 million from a negative $82.4 million in Q2 2018 [15] Business Segment Data and Key Metrics Changes - Babcock & Wilcox segment revenues increased by 1.6% to $201 million in Q2 2019 compared to $197.8 million in the prior year, with gross profit rising by 26.3% to $37.9 million [16][17] - SPIG segment revenues decreased by 50.4% to $22.8 million in Q2 2019, but gross profit improved to $2.4 million from $100,000 in the prior year [19][20] - Vølund segment revenues were $33.7 million in Q2 2019, down from $55 million in Q2 2018, but gross profit improved to $5.1 million from a loss of $69.3 million [21][22] Market Data and Key Metrics Changes - The company is focusing on expanding market share globally and has identified opportunities to grow topline revenues while strategically reducing low-margin projects [7][12] - The international market for boilers and environmental new build equipment is showing growth, with a focus on aftermarket services in the pulp and paper sector [45] Company Strategy and Development Direction - The company is committed to a transformation aimed at sustained profitability, focusing on core technologies and cost reduction strategies [5][10] - A target of $119 million in annualized cost savings has been identified, with significant progress already made [8][35] - The company aims to achieve a targeted run rate adjusted EBITDA of $100 million in 2020 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improved bottom-line performance throughout 2019 and establishing a foundation for long-term objectives in 2020 [7][10] - The focus is on quality projects with better margins rather than chasing revenues, indicating a strategic shift in operations [42] - Management highlighted the importance of improved cash flows and project execution as part of the recovery strategy [40][48] Other Important Information - The company completed a reverse stock split to comply with NYSE listing criteria and has made significant progress in deleveraging its balance sheet through equitization transactions [9][30][32] - Cash flow from operations was a use of $193 million, primarily due to settlements related to European EPC contracts [25] - The company is actively pursuing cost recoveries under various insurance policies related to past losses [27] Q&A Session Summary - No specific questions or answers were recorded in the provided content, as the call concluded without a Q&A segment [50][51]