bwxt-20200630

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________________________________________________________________________________________________________________


(Mark One)
☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020.


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File No. 001-34658

BWX TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

__________________________________________________________________________________________________________________________________

Delaware

80-0558025

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

800 Main Street, 4th Floor

Lynchburg,

Virginia

24504

(Address of principal executive offices)

(Zip Code)

Registrant's telephone number, including area code: (980) 365-4300

_________________________________________________________________________________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value

BWXT

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of the registrant's common stock outstanding at July 30, 2020 was 95,289,392.

BWX TECHNOLOGIES, INC.

FINANCIAL INFORMATION

Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

BWX TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS


	June 30, 2020		December 31, 2019
	(Unaudited) (In thousands)
Current Assets:
Cash and cash equivalents	$	61,584	$	86,540
Restricted cash and cash equivalents	3,069		3,056
Investments	3,710		5,843
Accounts receivable – trade, net	64,846		56,721
Accounts receivable – other	9,480		13,426
Retainages	46,767		46,670
Contracts in progress	395,847		376,037
Other current assets	38,670		41,462
Total Current Assets	623,973		629,755
Property, Plant and Equipment, Net	656,205		580,241
Investments	7,236		7,620
Goodwill	274,345		275,502
Deferred Income Taxes	55,747		58,689
Investments in Unconsolidated Affiliates	70,564		70,116
Intangible Assets	186,442		191,392
Other Assets	96,851		95,598
TOTAL	$	1,971,363	$	1,908,913

See accompanying notes to condensed consolidated financial statements.

BWX TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

LIABILITIES AND STOCKHOLDERS' EQUITY


	June 30, 2020		December 31, 2019
	(Unaudited) (In thousands, except share and per share amounts)
Current Liabilities:
Current maturities of long-term debt	$	—	$	14,711
Accounts payable	141,459		170,678
Accrued employee benefits	66,489		82,640
Accrued liabilities – other	60,467		52,213
Advance billings on contracts	64,815		75,425
Accrued warranty expense	5,131		9,042
Income taxes payable	36,974		—
Total Current Liabilities	375,335		404,709
Long-Term Debt	826,831		809,442
Accumulated Postretirement Benefit Obligation	22,021		23,259
Environmental Liabilities	83,845		80,368
Pension Liability	157,229		172,508
Other Liabilities	24,570		14,515
Commitments and Contingencies (Note 6)
Stockholders' Equity:
Common stock, par value $0.01 per share, authorized 325,000,000 shares; issued 126,949,882 and 126,579,285 shares at June 30, 2020 and December 31, 2019, respectively	1,269		1,266
Preferred stock, par value $0.01 per share, authorized 75,000,000 shares; No shares issued	—		—
Capital in excess of par value	143,412		134,069
Retained earnings	1,447,642		1,344,383
Treasury stock at cost, 31,660,490 and 31,266,670 shares at June 30, 2020 and December 31, 2019, respectively	(1,093,287)		(1,068,164)
Accumulated other comprehensive income (loss)	(17,519)		(7,448)
Stockholders' Equity – BWX Technologies, Inc.	481,517		404,106
Noncontrolling interest	15		6
Total Stockholders' Equity	481,532		404,112
TOTAL	$	1,971,363	$	1,908,913

See accompanying notes to condensed consolidated financial statements.

BWX TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
	(Unaudited) (In thousands, except share and per share amounts)
Revenues	$	504,520	$	471,231	$	1,046,728	$	887,685
Costs and Expenses:
Cost of operations	367,534		338,023		759,977		641,658
Research and development costs	4,029		5,332		8,632		10,506
Losses on asset disposals and impairments, net	299		151		299		151
Selling, general and administrative expenses	55,137		54,052		108,095		105,735
Total Costs and Expenses	426,999		397,558		877,003		758,050
Equity in Income of Investees	4,913		6,862		10,976		14,544
Operating Income	82,434		80,535		180,701		144,179
Other Income (Expense):
Interest income	61		137		292		552
Interest expense	(7,865)		(9,542)		(15,832)		(18,245)
Other – net	9,450		6,604		17,367		14,125
Total Other Income (Expense)	1,646		(2,801)		1,827		(3,568)
Income before Provision for Income Taxes	84,080		77,734		182,528		140,611
Provision for Income Taxes	19,684		18,734		42,512		32,501
Net Income	$	64,396	$	59,000	$	140,016	$	108,110
Net Income Attributable to Noncontrolling Interest	(138)		(122)		(259)		(254)
Net Income Attributable to BWX Technologies, Inc.	$	64,258	$	58,878	$	139,757	$	107,856
Earnings per Common Share:
Basic:
Net Income Attributable to BWX Technologies, Inc.	$	0.67	$	0.62	$	1.46	$	1.13
Diluted:
Net Income Attributable to BWX Technologies, Inc.	$	0.67	$	0.62	$	1.46	$	1.13
Shares used in the computation of earnings per share (Note 10):
Basic	95,457,629		95,357,311		95,434,990		95,306,210
Diluted	95,633,571		95,677,204		95,694,972		95,749,280

See accompanying notes to condensed consolidated financial statements.

BWX TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
	(Unaudited) (In thousands)
Net Income	$	64,396	$	59,000	$	140,016	$	108,110
Other Comprehensive Income (Loss):
Currency translation adjustments	856		4,295		(11,084)		5,238
Derivative financial instruments:
Unrealized losses arising during the period, net of tax benefit of $141, $226, $32 and $390, respectively	(404)		(634)		(91)		(1,075)
Reclassification adjustment for (gains) losses included in net income, net of tax provision (benefit) of $32, $(70), $(106) and $(21), respectively	(89)		203		331		62
Amortization of benefit plan costs, net of tax benefit of $(167), $(155), $(334) and $(291), respectively	609		493		1,219		1,004
Unrealized gains (losses) on investments arising during the period, net of tax provision of $0, $(3), $(2) and $(10), respectively	154		27		(446)		51
Other Comprehensive Income (Loss)	1,126		4,384		(10,071)		5,280
Total Comprehensive Income	65,522		63,384		129,945		113,390
Comprehensive Income Attributable to Noncontrolling Interest	(138)		(122)		(259)		(254)
Comprehensive Income Attributable to BWX Technologies, Inc.	$	65,384	$	63,262	$	129,686	$	113,136

See accompanying notes to condensed consolidated financial statements.

BWX TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY


	Common Stock					Capital In Excess of Par Value					Accumulated Other Comprehensive Income (Loss)								Total Stockholders' Equity
	Shares	Par Value						Retained Earnings					Treasury Stock		Stockholders' Equity		Noncontrolling Interest
		(In thousands, except share and per share amounts)
Balance December 31, 2019	126,579,285	$	1,266	$	134,069	$	1,344,383		$	(7,448)	$	(1,068,164)	$	404,106	$	6	$	404,112
Net income	—	—		—		75,499			—		—		75,499		121		75,620
Dividends declared ($0.19 per share)	—	—		—		(18,254)			—		—		(18,254)		—		(18,254)
Currency translation adjustments	—	—		—		—			(11,940)		—		(11,940)		—		(11,940)
Derivative financial instruments	—	—		—		—			733		—		733		—		733
Defined benefit obligations	—	—		—		—			610		—		610		—		610
Available-for-sale investments	—	—		—		—			(600)		—		(600)		—		(600)
Exercises of stock options	56,431	1		1,331		—			—		—		1,332		—		1,332
Shares placed in treasury	—	—		—		—			—		(25,076)		(25,076)		—		(25,076)
Stock-based compensation charges	252,943	2		3,100		—			—		—		3,102		—		3,102
Distributions to noncontrolling interests	—	—		—		—			—		—		—		(127)		(127)
Balance March 31, 2020 (unaudited)	126,888,659	$	1,269	$	138,500	$	1,401,628		$	(18,645)	$	(1,093,240)	$	429,512	$	—	$	429,512
Net income	—	—		—		64,258			—		—		64,258		138		64,396
Dividends declared ($0.19 per share)	—	—		—		(18,244)			—		—		(18,244)		—		(18,244)
Currency translation adjustments	—	—		—		—			856		—		856		—		856
Derivative financial instruments	—	—		—		—			(493)		—		(493)		—		(493)
Defined benefit obligations	—	—		—		—			609		—		609		—		609
Available-for-sale investments	—	—		—		—			154		—		154		—		154
Exercises of stock options	22,556	—		537		—			—		—		537		—		537
Shares placed in treasury	—	—		—		—			—		(47)		(47)		—		(47)
Stock-based compensation charges	38,667	—		4,375		—			—		—		4,375		—		4,375
Distributions to noncontrolling interests	—	—		—		—			—		—		—		(123)		(123)
Balance June 30, 2020 (unaudited)	126,949,882	$	1,269	$	143,412	$	1,447,642		$	(17,519)	$	(1,093,287)	$	481,517	$	15	$	481,532












Balance December 31, 2018	125,871,866	$	1,259	$	115,725	$	1,166,762		$	(10,289)	$	(1,037,795)	$	235,662	$	39	$	235,701
Recently adopted accounting standards	—	—		—		(1,219)			77		—		(1,142)		—		(1,142)
Net income	—	—		—		48,978			—		—		48,978		132		49,110
Dividends declared ($0.17 per share)	—	—		—		(16,323)			—		—		(16,323)		—		(16,323)
Currency translation adjustments	—	—		—		—			943		—		943		—		943
Derivative financial instruments	—	—		—		—			(582)		—		(582)		—		(582)
Defined benefit obligations	—	—		—		—			511		—		511		—		511
Available-for-sale investments	—	—		—		—			24		—		24		—		24
Exercises of stock options	58,655