Good afternoon. My name is Christine and I will be your conference operator today. At this time, I would like to welcome everyone to the Babcock & Wilcox Q3 2018 Earnings Conference Call. [Operator Instructions] Thank you. Megan Wilson, Vice President of Investor Relations, you may begin your conference.

Thank you, Christine and good afternoon everyone. Welcome to Babcock & Wilcox Enterprises’ third quarter 2018 earnings conference call. I am Megan Wilson, Vice President of Investor Relations at B&W. Joining me this afternoon are Leslie Kass, B&W’s President and Chief Executive Officer and Joel Mostrom, Interim Chief Financial 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 provides further detail about the risks related to our business. Additionally, except as required by law, we undertake no obligation to update any forward-looking statement. 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 afternoon and in our company overview presentation posted on the Investor Relations section of our website at babcock.com. With that, I will turn the call over to Leslie.

Thank you, Megan. Good afternoon, everyone and I apologize for my voice. I am recovering from a bad cold. During the third quarter and over the last several weeks, we have continued to make progress on strategic actions, which are designed to provide us with adequate liquidity to complete our remaining renewable projects and focus on providing quality products and services to our customers in our core power and industrial end markets. I will discuss a few of these actions with you today and provide an update on our challenged renewable energy projects. First, in terms of strategic actions, in mid-September, we closed the sale of our operations and maintenance business at the Palm Beach Resource Recovery Center in Florida, the Covanta, for $45 million and in early October, we closed the sale of our MEGTEC and Universal businesses to Dürr for $130 million. These actions, combined with the sale of our interest in our JV in India earlier this year, resulted in $190 million of gross proceeds. In the third quarter, we also completed our previously announced strategic planning process. This process affirmed our strategy to focus our business on core products and services for power and industrial markets with an increased emphasis on retrofit and aftermarket services. We also identified a number of opportunities in each business line to capture more business and improve delivery to our customers. The strategic planning process also took another look at our previously announced cost savings program, leading us to increase our annualized cost savings target from $54 million to $62 million. We begin to implement $38 million of these cost savings initiatives in the second and third quarters and expect to implement the remaining $24 million in the fourth quarter. We started to see initial benefits of this program in the…

Thanks, Leslie. Our third quarter consolidated revenues were $295 million, down $61.9 million or 17% compared to the prior year quarter due to many of our European renewable projects being in late stages of completion and lower sales volume across all business segments. For the quarter, we reported a GAAP operating loss from continuing operations of $45.1 million mainly due to a higher level of charges and increased support cost to complete the renewable energy projects in Europe. The quarter results were also negatively impacted by higher financial advisory expenses, lower volume in the renewable segment’s other equipment-only contracts and aftermarket lines of business and increased cost to complete legacy newbuild cooling systems in the industrial segment. These were partially offset by lower SG&A cost, reflecting the benefits of cost savings initiatives. Adjusted EBITDA was negative $26 million compared to negative $14.4 million in the third quarter of 2017. I would like to point out there are several non-cash items that affected our GAAP results during the quarter, including a $4.9 million foreign currency loss related primarily to intercompany loans, a $4.2 million pension mark-to-market gain due to the sale of West Palm Beach Resource Recovery Corporation, and a $99.6 million non-cash income tax charge to record a valuation allowance against our remaining net deferred tax assets. While our analysis of the valuation allowance at September 30, 2018 resulted in a judgment that a full valuation allowance against our net deferred tax assets was warranted, this does not limit our ability to use these deferred tax assets in the future and such an allowance can be reversed in the future. Now, turning to our segment results, in the power segment, revenue was $191.1 million, down $11.1 million or 5.5% compared to the prior year quarter. This was primarily due to…

Thanks, Joel. We remain laser focused on completing the renewable projects and we were able to make progress on this objective with one project now turned over and at least three more expected to be turned over by the end of the year. As Joel mentioned, last quarter, we withdrew guidance due to the number of ongoing changes in our business. However, we understand that our investors and stakeholders are interested in our completion of the renewable projects and we intend to provide updates going forward when the remaining projects are turned over. We have made significant strides towards positioning B&W for the future. We have recently announced that we shifted our headquarters from Charlotte, North Carolina to Ohio and that we expect to move to a new lease facility in Akron next year. This move will help reduce costs, better meet our space and operational needs and provide our current and future employees with a much more collaborative and dynamic place to work. We have streamlined our business through asset sales and pursued cost-cutting activities with an improved target of $62 million. With the completion of our strategic planning process, we are driving initiatives to improve our product delivery and serve expanding markets to increase our profitability and cash flow for the long term. With all these actions in place, we expect to see improvements next year led by a strong performance in our core power business. We appreciate the continued support of our customers and employees during these challenging times and look forward to working together to deliver energy and environmental technologies and services in what we believe will be a much better 2019. I will now turn the call back over to Christine who will assist us in taking your questions.

Thank you for joining us. That concludes our conference call. A replay will be available for a limited time on our website later today.

This concludes today’s conference call. You may now disconnect.