Babcock & Wilcox Enterprises (BW) saw its loss widen to $71.60 million, or $1.47 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $5.20 million, or $0.10 a share. On an adjusted basis, net loss for the quarter stood at $72.20 million, or $1.48 a share compared with a net profit of $25.80 million, or $0.48 a share in the last year period.
Revenue during the quarter dropped 24.41 percent to $380 million from $502.70 million in the previous year period. Gross margin for the quarter stood at negative 0.21 percent as compared to a positive 12.93 percent for the previous year period. Operating margin for the quarter stood at negative 15.42 percent as compared to a negative 1.99 percent for the previous year period.
Operating loss for the quarter was $58.60 million, compared with an operating loss of $10 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $57 million compared to operating profit of $41 million in prior year period.
"During our 18 months as an independent company, we have made significant progress realigning the business and executing on our strategic goals. In 2016, we focused on enhancing the profitability of our Power business and increasing revenue diversification by driving the growth of our Industrial and Renewable businesses. Through the restructuring of our Power business, we have created a leaner, more flexible organization that is better positioned to compete in the market. In our Industrial segment, we have made key acquisitions to build the business and grow our B&W-wide non-coal revenue to greater than 50% of our total revenues in 2016," said Mr. E. James Ferland, chairman and chief executive officer. "Productivity and schedule issues in our Renewable segment, however, significantly impacted our results in the fourth quarter and for the full year. We have taken specific actions to address these issues, and to enhance the resources and infrastructure of the Renewable segment, better enabling it to profitably capture long-term market opportunities. We are confident in our strategy and believe that the Company is well positioned to create long-term value for shareholders."
For fiscal year 2017, Babcock & Wilcox Enterprises projects revenue to be $1,800 million. The company expects diluted earnings per share to be in the range of $0.75 to $0.95 on adjusted basis.
Operating cash flow drops significantlyBabcock & Wilcox Enterprises has generated cash of $2.30 million from operating activities during the year, down 98.65 percent or $168.10 million, when compared with the last year. The company has spent $180.80 million cash to meet investing activities during the year as against cash outgo of $45.90 million in the last year. It has incurred net capital expenditure of $37.90 million on net basis during the year, down 14.06 percent or $6.20 million from year ago.
The company has spent $83.40 million cash to carry out financing activities during the year as against cash inflow of $53.60 million in the last year period.
Cash and cash equivalents stood at $95.90 million as on Dec. 31, 2016, down 73.74 percent or $269.30 million from $365.20 million on Dec. 31, 2015.
Working capital drops significantly
Babcock & Wilcox Enterprises has witnessed a decline in the working capital over the last year. It stood at $160 million as at Dec. 31, 2016, down 61.62 percent or $256.83 million from $416.83 million on Dec. 31, 2015. Current ratio was at 1.26 as on Dec. 31, 2016, down from 1.74 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 27 days for the quarter from 22 days for the last year period. Days sales outstanding went up to 43 days for the quarter compared with 31 days for the same period last year.
Days inventory outstanding was almost stable at 10 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went up to 27 days for the quarter from 18 for the same period last year.
Debt increases substantiallyBabcock & Wilcox Enterprises has witnessed an increase in total debt over the last one year. It stood at $14.20 million as on Dec. 31, 2016, up 610 percent or $12.20 million from $2 million on Dec. 31, 2015. Babcock & Wilcox Enterprises has witnessed an increase in short-term debt over the last one year. It stood at $14.20 million as on Dec. 31, 2016, up 610 percent or $12.20 million from $2 million on Dec. 31, 2015. Total debt was 0.93 percent of total assets as on Dec. 31, 2016, compared with 0.12 percent on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
