• 2Q18 strong revenue growth of 7%; 2Q18 orders up significantly
• 2Q18 GAAP EPS of $0.60; 2Q18 non-GAAP EPS of $0.58
• Reiterated 2018 non-GAAP EPS guidance of $2.45 to $2.55 despite higher interest expense and integration costs
• Completed acquisition of Nordion medical isotope business on July 30, 2018

LYNCHBURG, Va.--(BUSINESS WIRE)-- BWX Technologies, Inc. (NYSE: BWXT) ("BWXT" or the "Company") reported second quarter 2018 revenue of $439 million, a 7.1% increase compared to $410 million in the second quarter of 2017. GAAP net income for the second quarter 2018 was $60.7 million, or $0.60 per diluted share, compared to GAAP net income of $61.3 million, or $0.61 per diluted share, in the prior-year quarter. Non-GAAP net income for the second quarter 2018 was $58.0 million, or $0.58 per diluted share, compared to non-GAAP net income of $56.2 million, or $0.56 per diluted share, in the second quarter of 2017. A reconciliation of non-GAAP results is detailed in Exhibit 1.

"We are extremely pleased with our second quarter results, especially the robust top-line growth and the overall strong first half performance," said Rex D. Geveden, president and chief executive officer. "We continue to exhibit our capacity for growth while maintaining best-in-class margins and superior competitive positioning. We are maintaining earnings guidance as improving operating performance is being offset by increasing interest expense resulting from capital restructuring and integration costs related to the early close of Nordion.”

"We completed the acquisition of the Nordion medical radioisotope business on July 30, 2018. Closing this acquisition earlier than anticipated de-risks the industrialization phase for our technetium-99m product line and gives us immediate access to a growing and dynamic market.”

Second Quarter 2018 Segment Results

Nuclear Operations Group (NOG) segment revenue was $332 million for the second quarter of 2018, a 6.2% increase from the prior-year period driven by higher missile tube volume and more fuel activity. NOG operating income was $67.0 million in the second quarter of 2018, down 3.2% compared with the prior-year period. Second quarter 2018 segment operating margin was 20.2%.

Nuclear Power Group (NPG) segment revenue was $75.7 million for the second quarter of 2018, a 39% increase from the prior-year period driven by increased field service and refurbishment activity. NPG operating income was $7.8 million in the second quarter of 2018, a 37% increase from the prior-year period. Second quarter 2018 segment operating margin was 10.3%.

Nuclear Services Group (NSG) segment operating income was $3.5 million for the second quarter of 2018 compared with $15.4 million for second quarter of 2017, primarily driven by a $7.9 million gain from a favorable legal settlement in the prior-year period.

Liquidity and Debt

The Company generated cash from operating activities of $35.9 million in the second quarter of 2018 compared with net cash generated from operating activities of $118.8 million in the prior-year period. At the end of the second quarter 2018, the Company’s cash and short-term investments position, net of restricted cash, was $319.4 million.

As of June 30, 2018, the company had gross debt of $691.1 million, which included $400 million in senior notes and $291.1 million in term loans. There was no revolving line of credit borrowings and $71.5 million in letters of credit issued under the Company's revolving credit facility. As a result, the Company had $428.5 million in remaining availability under its revolving credit facility.

Quarterly Dividend

On August 3, 2018, our Board of Directors declared a quarterly cash dividend of $0.16 per common share. The dividend will be payable on September 7, 2018, to shareholders of record on August 20, 2018.

2018 Outlook

BWXT reiterated guidance for 2018:

• EPS in a range of $2.45 to $2.55 (excluding mark-to-market of pension and post-retirement benefits)
• Revenue in a range of $1.75 to $1.85 billion
• NOG revenue in a range of $1.3 to $1.4 billion and operating margin in the high teens with upside potential
• NPG revenue in a range of $300 to $350 million and operating margin of approximately 12%
• NSG operating income of approximately $20 million
• Research and development costs of approximately $15 million
• Corporate unallocated costs of approximately $20 million
• Other income primarily related to pension and other post-employment benefit plans of $30 to $35 million
• Effective non-GAAP tax rate in a range of 22% to 25%
• Capital expenditures of approximately $150 million, primarily to support growth in Navy business
• Depreciation and amortization of approximately $60 million

Long-term Outlook

BWXT reiterated long-term guidance that beyond 2017, and excluding the benefit of tax reform, the Company anticipates an EPS Compound Annual Growth Rate (CAGR) in the low-double digits over a three to five year period based on a robust organic growth strategy and balance sheet capacity.

Conference Call to Discuss Second Quarter 2018 Results

Date: Tuesday, August 7, 2018, at 9:00 a.m. EDT

Live Webcast: Investor Relations section of website at www.bwxt.com

Forward-Looking Statements

BWXT cautions that this release contains forward-looking statements, including, without limitation, statements relating to backlog, to the extent they may be viewed as an indicator of future revenues; the anticipated benefits of our acquisition of Nordion’s medical isotope business; timing of future revenues from the acquisition of Nordion’s medical isotope business and new medical isotope business; our plans and expectations for the NOG, NPG and NSG segments; and our outlook and guidance for 2018 and beyond. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, our ability to execute contracts in backlog; the lack of, or adverse changes in, Federal appropriations to government programs in which we participate; the demand for and competitiveness of nuclear power; capital priorities of power generating utilities; adverse changes in the industries in which we operate and delays, changes or termination of contracts in backlog. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, see BWXT’s filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. BWXT cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

About BWXT

Headquartered in Lynchburg, Va., BWX Technologies, Inc. (NYSE: BWXT) is a leading supplier of nuclear components and fuel to the U.S. government; provides technical and management services to support the U.S. government in the operation of complex facilities and environmental remediation activities; and supplies precision manufactured components, services and fuel for the commercial nuclear power industry. With approximately 6,250 employees, BWXT has eleven major operating sites in the U.S. and Canada. In addition, BWXT joint ventures provide management and operations at more than a dozen U.S. Department of Energy and two NASA facilities. Follow us on Twitter @BWXTech and learn more at www.bwxt.com.

EXHIBIT 1

	BWX TECHNOLOGIES, INC. RECONCILIATION OF NON-GAAP OPERATING INCOME AND EARNINGS PER SHARE(1)(2)(3) (In millions, except per share amounts)
				Three Months Ended June 30, 2018
				GAAP				AcquisitionRelated Costs				Recognition ofDebt IssuanceCosts from FormerCredit Facility				Gain onForwardContracts				Non-GAAP
	Operating Income			$	71.5			$	—			$	—			$	—			$	71.5
	Other Income (Expense)				7.7				—				2.4				(6.0	)			4.1
	Provision for Income Taxes				(18.5	)			—				(0.6	)			1.5				(17.6	)
	Net Income				60.7				—				1.8				(4.5	)			58.1
	Net Income Attributable to Noncontrolling Interest				(0.1	)			—				—				—				(0.1	)
	Net Income Attributable to BWXT			$	60.7			$	—			$	1.8			$	(4.5	)		$	58.0
	Diluted Shares Outstanding				100.6																100.6
	Diluted Earnings per Common Share			$	0.60			$	—			$	0.02			$	(0.04	)		$	0.58
	Effective Tax Rate				23.3	%															23.2	%
				Three Months Ended June 30, 2017
				GAAP				Litigation				Impairment (Gains) /Losses								Non-GAAP
	Operating Income			$	85.4			$	(7.9	)		$	—							$	77.5
	Other Income (Expense)				3.1				—				—								3.1
	Provision for Income Taxes				(27.1	)			2.8				—								(24.2	)
	Net Income				61.4				(5.1	)			—								56.3
	Net Income Attributable to Noncontrolling Interest				(0.2	)			—				—								(0.2	)
	Net Income Attributable to BWXT			$	61.3			$	(5.1	)		$	—							$	56.2
	Diluted Shares Outstanding				100.2																100.2
	Diluted Earnings per Common Share			$	0.61			$	(0.05	)		$	—							$	0.56
	Effective Tax Rate				30.6	%															30.1	%
(1)	Tables may not foot due to rounding.
(2)	BWXT is providing non-GAAP information regarding certain of its historical results and guidance on future earnings per share to supplement the results provided in accordance with GAAP and it should not be considered superior to, or as a substitute for, the comparable GAAP measures. BWXT believes the non-GAAP measures provide meaningful insight and transparency into the Company’s operational performance and provides these measures to investors to help facilitate comparisons of operating results with prior periods and to assist them in understanding BWXT's ongoing operations.
(3)	BWXT has not included a reconciliation of provided non-GAAP guidance to the comparable GAAP measures due to the difficulty and unreliability of estimating any mark-to-market adjustments for pension and post-retirement benefits, which are determined at the end of the year.

EXHIBIT 1 (continued)

	BWX TECHNOLOGIES, INC. RECONCILIATION OF NON-GAAP OPERATING INCOME AND EARNINGS PER SHARE(1)(2)(3) (In millions, except per share amounts)
			Six Months Ended June 30, 2018
			GAAP				AcquisitionRelated Costs				Recognition ofDebt IssuanceCosts from FormerCredit Facility				Gain onForwardContracts				Non-GAAP
	Operating Income		$	151.4			$	1.6			$	—			$	—			$	153.0
	Other Income (Expense)			12.8				—				2.4				(6.0	)			9.2
	Provision for Income Taxes			(37.1	)			(0.4	)			(0.6	)			1.5				(36.6	)
	Net Income			127.1				1.2				1.8				(4.5	)			125.7
	Net Income Attributable to Noncontrolling Interest			(0.0	)			—				—				—				(0.0	)
	Net Income Attributable to BWXT		$	127.1			$	1.2			$	1.8			$	(4.5	)		$	125.6
	Diluted Shares Outstanding			100.5																100.5
	Diluted Earnings per Common Share		$	1.26			$	0.01			$	0.02			$	(0.04	)		$	1.25
	Effective Tax Rate			22.6	%															22.5	%
			Six Months Ended June 30, 2017
			GAAP				Litigation				Impairment(Gains) /Charges								Non-GAAP
	Operating Income		$	161.7			$	(7.9	)		$	—							$	153.8
	Other Income (Expense)			7.2				—				(0.4	)							6.8
	Provision for Income Taxes			(51.7	)			2.8				0.0								(48.8	)
	Net Income			117.2				(5.1	)			(0.4	)							111.7
	Net Income Attributable to Noncontrolling Interest			(0.2	)			—				—								(0.2	)
	Net Income Attributable to BWXT		$	117.0			$	(5.1	)		$	(0.4	)						$	111.5
	Diluted Shares Outstanding			100.4																100.4
	Diluted Earnings per Common Share		$	1.16			$	(0.05	)		$	(0.00	)						$	1.11
	Effective Tax Rate			30.6	%															30.4	%
(1)	Tables may not foot due to rounding.
(2)	BWXT is providing non-GAAP information regarding certain of its historical results and guidance on future earnings per share to supplement the results provided in accordance with GAAP and it should not be considered superior to, or as a substitute for, the comparable GAAP measures. BWXT believes the non-GAAP measures provide meaningful insight and transparency into the Company’s operational performance and provides these measures to investors to help facilitate comparisons of operating results with prior periods and to assist them in understanding BWXT's ongoing operations.
(3)	BWXT has not included a reconciliation of provided non-GAAP guidance to the comparable GAAP measures due to the difficulty of estimating any mark-to-market adjustments for pension and post-retirement benefits, which are determined at the end of the year.

BWX TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS
		June 30, 2018				December 31, 2017
		(Unaudited) (In thousands)
Current Assets:
Cash and cash equivalents		$	317,624			$	203,404
Restricted cash and cash equivalents		5,870				7,105
Investments		1,824				2,934
Accounts receivable – trade, net		200,889				189,217
Accounts receivable – other		14,742				19,365
Contracts in progress		317,405				420,628
Other current assets		32,343				30,437
Total Current Assets		890,697				873,090
Property, Plant and Equipment		1,034,015				1,013,141
Less accumulated depreciation		676,813				664,512
Net Property, Plant and Equipment		357,202				348,629
Investments		8,932				9,301
Goodwill		215,547				218,331
Deferred Income Taxes		84,868				86,740
Investments in Unconsolidated Affiliates		57,854				43,266
Intangible Assets		103,008				110,405
Other Assets		24,357				22,577
TOTAL		$	1,742,465			$	1,712,339

BWX TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS LIABILITIES AND STOCKHOLDERS' EQUITY
		June 30, 2018				December 31, 2017
		(Unaudited) (In thousands, except shareand per share amounts)
Current Liabilities:
Current maturities of long-term debt		$	14,556			$	27,870
Accounts payable		88,421				93,421
Accrued employee benefits		67,417				82,477
Accrued liabilities – other		48,377				64,738
Advance billings on contracts		77,775				246,192
Accrued warranty expense		12,822				13,428
Total Current Liabilities		309,368				528,126
Long-Term Debt		666,200				481,059
Accumulated Postretirement Benefit Obligation		20,065				21,368
Environmental Liabilities		80,708				79,786
Pension Liability		259,231				296,444
Other Liabilities		18,576				19,799
Commitments and Contingencies
Stockholders' Equity:
Common stock, par value $0.01 per share, authorized 325,000,000 shares; issued 125,748,071 and 125,381,591 shares at June 30, 2018 and December 31, 2017, respectively		1,257				1,254
Preferred stock, par value $0.01 per share, authorized 75,000,000 shares; No shares issued		—				—
Capital in excess of par value		108,919				98,843
Retained earnings		1,097,665				990,652
Treasury stock at cost, 26,057,475 and 25,964,088 shares at June 30, 2018 and December 31, 2017, respectively		(820,826		)		(814,809		)
Accumulated other comprehensive income		1,248				9,454
Stockholders' Equity – BWX Technologies, Inc.		388,263				285,394
Noncontrolling interest		54				363
Total Stockholders' Equity		388,317				285,757
TOTAL		$	1,742,465			$	1,712,339

BWX TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
		Three Months Ended June 30,								Six Months Ended June 30,
		2018				2017				2018				2017
		(Unaudited) (In thousands, except share and per share amounts)
Revenues		$	438,921			$	410,011			$	896,384			$	838,240
Costs and Expenses:
Cost of operations		318,209				278,356				645,573				581,572
Research and development costs		4,107				1,152				7,714				2,671
Gains on asset disposals and impairments, net		(237		)		(31		)		(245		)		(31		)
Selling, general and administrative expenses		51,518				48,433				105,280				99,530
Total Costs and Expenses		373,597				327,910				758,322				683,742
Equity in Income of Investees		6,225				3,327				13,375				7,202
Operating Income		71,549				85,428				151,437				161,700
Other Income (Expense):
Interest income		441				211				1,219				348
Interest expense		(7,869		)		(3,906		)		(11,429		)		(7,423		)
Other – net		15,106				6,749				23,016				14,235
Total Other Income (Expense)		7,678				3,054				12,806				7,160
Income before Provision for Income Taxes		79,227				88,482				164,243				168,860
Provision for Income Taxes		18,493				27,062				37,096				51,654
Net Income		$	60,734			$	61,420			$	127,147			$	117,206
Net Income Attributable to Noncontrolling Interest		(71		)		(157		)		(43		)		(224		)
Net Income Attributable to BWX Technologies, Inc.		$	60,663			$	61,263			$	127,104			$	116,982
Earnings per Common Share:
Basic:
Net Income Attributable to BWX Technologies, Inc.		$	0.61			$	0.62			$	1.28			$	1.18
Diluted:
Net Income Attributable to BWX Technologies, Inc.		$	0.60			$	0.61			$	1.26			$	1.16
Shares used in the computation of earnings per share:
Basic		99,681,580				99,166,205				99,603,884				99,305,558
Diluted		100,571,737				100,150,926				100,542,014				100,420,948

BWX TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
		Six Months Ended June 30,
		2018				2017
		(Unaudited) (In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income		$	127,147			$	117,206
Non-cash items included in net income from continuing operations:
Depreciation and amortization		28,420				28,199
Income of investees, net of dividends		(3,384		)		987
Gains on asset disposals and impairments, net		(245		)		(31		)
Gain on forward contracts		(5,997		)		—
Recognition of debt issuance costs from Former Credit Facility		2,441				—
Recognition of losses for pension and postretirement plans		993				892
Stock-based compensation expense		5,755				7,098
Changes in assets and liabilities:
Accounts receivable		(10,858		)		(154		)
Accounts payable		(3,835		)		(26,905		)
Contracts in progress and advance billings on contracts		(53,902		)		(3,869		)
Income taxes		(12,302		)		18,477
Accrued and other current liabilities		973				(39,325		)
Pension liability, accrued postretirement benefit obligation and employee benefits		(57,439		)		(43,790		)
Other, net		(457		)		5,320
NET CASH PROVIDED BY OPERATING ACTIVITIES		17,310				64,105
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment		(33,960		)		(28,747		)
Purchases of securities		(1,822		)		(12,049		)
Sales and maturities of securities		2,955				19,986
Investments, net of return of capital, in equity method investees		(9,800		)		211
Proceeds from asset disposals		249				140
Other, net		997				(24		)
NET CASH USED IN INVESTING ACTIVITIES		(41,381		)		(20,483		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings of long-term debt		700,000				73,600
Repayments of long-term debt		(509,968		)		(87,344		)
Payment of debt issuance costs		(8,197		)		—
Dividends paid to common shareholders		(32,063		)		(20,139		)
Exercise of stock options		3,018				14,608
Cash paid for shares withheld to satisfy employee taxes		(4,710		)		(7,045		)
Other		(352		)		(266		)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		147,728				(26,586		)
EFFECTS OF EXCHANGE RATE CHANGES ON CASH		(10,660		)		6,294
TOTAL INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS		112,997				23,330
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		213,144				134,600
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT END OF PERIOD		$	326,141			$	157,930
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest		$	7,625			$	7,049
Income taxes (net of refunds)		$	49,848			$	33,997
SCHEDULE OF NON-CASH INVESTING ACTIVITY:
Accrued capital expenditures included in accounts payable		$	8,775			$	3,886

BWX TECHNOLOGIES, INC. BUSINESS SEGMENT INFORMATION
		Three Months Ended June 30,								Six Months Ended June 30,
		2018				2017				2018				2017
		(Unaudited) (In thousands)
REVENUES:
Nuclear Operations Group		$	332,140			$	312,866			$	648,771			$	637,947
Nuclear Services Group		32,596				44,785				62,629				72,639
Nuclear Power Group		75,697				54,569				188,513				132,243
Adjustments and Eliminations		(1,512		)		(2,209		)		(3,529		)		(4,589		)
TOTAL		$	438,921			$	410,011			$	896,384			$	838,240
SEGMENT INCOME:
Nuclear Operations Group		$	67,046			$	69,295			$	134,703			$	137,044
Nuclear Services Group		3,511				15,399				4,688				15,801
Nuclear Power Group		7,810				5,712				29,574				18,668
Other		(4,357		)		(1,070		)		(8,400		)		(2,682		)
SUBTOTAL		74,010				89,336				160,565				168,831
Unallocated Corporate		(2,461		)		(3,908		)		(9,128		)		(7,131		)
TOTAL		$	71,549			$	85,428			$	151,437			$	161,700
DEPRECIATION AND AMORTIZATION:
Nuclear Operations Group		$	8,124			$	7,924			$	15,902			$	15,555
Nuclear Services Group		895				936				1,808				1,874
Nuclear Power Group		3,484				3,419				7,079				6,807
Other		—				—				—				—
Corporate		1,856				1,944				3,631				3,963
TOTAL		$	14,359			$	14,223			$	28,420			$	28,199
CAPITAL EXPENDITURES:
Nuclear Operations Group		$	14,615			$	12,488			$	28,424			$	24,239
Nuclear Services Group		—				104				235				311
Nuclear Power Group		763				1,148				1,722				2,188
Other		542				—				1,054				—
Corporate		406				1,294				2,525				2,009
TOTAL		$	16,326			$	15,034			$	33,960			$	28,747

BWX TECHNOLOGIES, INC. BUSINESS SEGMENT INFORMATION
		Three Months Ended June 30,								Six Months Ended June 30,
		2018				2017				2018				2017
		(Unaudited) (In thousands)
BACKLOG:
Nuclear Operations Group		$	2,686,050			$	3,262,169			$	2,686,050			$	3,262,169
Nuclear Services Group		43,518				20,980				43,518				20,980
Nuclear Power Group		883,049				480,534				883,049				480,534
TOTAL		$	3,612,617			$	3,763,683			$	3,612,617			$	3,763,683
BOOKINGS:
Nuclear Operations Group		$	14,860			$	169,734			$	74,936			$	414,499
Nuclear Services Group		47,572				28,241				75,323				65,291
Nuclear Power Group		408,377				56,654				445,285				139,352
TOTAL		$	470,809			$	254,629			$	595,544			$	619,142

View source version on businesswire.com: https://www.businesswire.com/news/home/20180806005620/en/

BWX Technologies, Inc.

Investor Contact:

Alan Nethery, 980-365-4300

Vice President and Chief Investor Relations Officer

[email protected]

or

Media Contact:

Jud Simmons, 434-522-6462

Director, Media and Public Relations

[email protected]

Source: BWX Technologies, Inc.

Press Releases

BWX Technologies (BWXT) Misses Q2 EPS by 2c, Reiterates guidanceAugust 6, 2018 4:37 PM