Babcock & Wilcox Enterprises, Inc. (NYSE:BW) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 05:00 pm ET


Babcock & Wilcox Enterprises, Inc. (NYSE:BW) Q3 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the Babcock & Wilcox Q3 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session.

[Operator Instructions]

Thank you. I will now turn the conference over to Megan Wilson. You may begin.

Megan Wilson

Thank you, Sunindra, and good afternoon, everyone. Welcome to Babcock & Wilcox Enterprises' third quarter 2019 earnings conference call. I'm Megan Wilson, Vice President of Investor Relations at B&W. Joining me this afternoon are Kenny Young, B&W's Chief Executive Officer; Lou Salamone, Chief Financial Officer; and Henry Bartoli, Chief Strategy Officer, to discuss our third quarter results.

During this call, certain statements we make will be forward-looking. These statements are subject to risks and uncertainties, including those set forth in our safe harbor provision for forward-looking statements that can be found at the end of our earnings press release and also in our Annual Report on Form 10-K and our Form 10-Q that are on file with the SEC and provide further detail about the risks related to our business.

Additionally, except as required by law, we undertake no obligation to update any forward-looking statements. We also provide non-GAAP information regarding certain of our historical results to supplement the results provided in accordance with GAAP. This information should not be considered superior to or as a substitute for the comparable GAAP measures. A reconciliation of historical non-GAAP measures can be found in our third quarter earnings release published this morning.

With that, I will turn the call over to Kenny.

Kenneth Young

Thanks, Megan. Good afternoon, everyone, and thanks for joining our call. For the third quarter and throughout the year, we continued executing against our strategy and continue recognizing our operational and cost-saving initiatives, significantly improving our consolidated operating margins and achieving profitability for the second consecutive quarter on a consolidated adjusted EBITDA basis. We are now increasing our global market presence and delivering our core technologies across the Babcock & Wilcox Volund and SPIG segments, while in parallel, driving down costs across the entire company.

With the finalization of the EPC loss projects, we are driving forward with increasing operating margins, improving our balance sheet, exceeding our customers' expectations and growing profitable revenues and refinancing our debt. Although we still face challenges, we are on a clear path to improved cash flows and pursuing a growing pipeline of new opportunities worldwide, with significant potential for growth in the US, Asia and the Middle East as well as diversification across multiple fuel types and industries for both steam generation and environmental controls. We appreciate our strong relationships with our customers and continue to see real potential to increase market share globally. Today, our management team and our employees around the world are executing our strategy to leverage, our best-in-class core technologies, engineering services to reach our targeted run rate, adjusted EBITDA of $100 million in 2020.

Now as we discuss our third quarter 2019 results,