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

Thank you, Chris, and good afternoon, everyone. Welcome to Babcock & Wilcox Enterprises’ Investor Conference Call. I am Megan Wilson, Vice President of Investor Relations at B&W. Joining me this afternoon are Kenny Young, B&W’s Chief Executive Officer; Louis Salamone, Chief Financial Officer; and Henry Bartoli, Chief Strategy Officer to discuss our recent project settlements and financing arrangements as well as our fourth 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 recent press release and also in our annual report on Form 10-K 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 on our Form 8-K filed with the SEC today. With that, I will turn the call over to Kenny.

Thanks, Megan and good afternoon, everyone. Thanks for taking time to join our call. When Lou, Henry and I joined the company in mid November, we discussed and laid out our immediate priorities: one, turn over the remaining renewable EPC loss contracts; two, position ourselves to finance our working capital; three, reduce our overhead costs and focus on our plan to realize the profitability and cash flows of our underlying businesses which have been hidden due to the significance of the renewable EPC loss contracts. Over the past 4.5 months, we've been working diligently towards those objectives, recent negative and speculative research at a different and an accurate view of our company. And today I’m pleased to tell you that what’s over is the significant risk these EPC contracts held for B&W and what should be over is the speculation that B&W wouldn’t be able to turn the corner and move towards a profitable company going forward. Let's discuss the renewable EPC loss contracts and what has been accomplished to minimize the impacts of these one-off projects. First, as we’ve previously disclosed, we’ve turned over four of the six renewable EPC loss projects and reached settlements on the remaining two to vastly reduce our risk and cash burn to complete those projects. These settle historic claims, liquidated damages and associated high risk provisions of those contracts. One of these projects is expected to turnover in May. For the other project, the settlement identifies specific scope or key systems to be completed going forward with costs not to exceed a fixed amount, which vastly reduces our potential losses and cash burn. We’ve also reached a settlement regarding another legacy EPC renewable contract that has not been started. By removing ourselves from the EPC role, which could have carried significant risk. As…

Thanks, Kenny. As Kenny mentioned, the company's three reportable segments, Babcock & Wilcox, Volund and Other Renewables and SPIG, were formally reported as the power, renewable and industrial segments, respectively. Our fourth quarter consolidated revenues of $222.9 million were significantly impacted as required by GAAP, by the effect of the settlement related to the fifth Volund loss project that was reached in March of 2019. For the quarter, we reported a GAAP operating loss of $137.7 million, again, impacted by the $81.1 million effect of the settlement, which was partly offset by lower levels of losses on the other Volund loss contracts. Operating losses were also due to the SPIG segment’s increased estimated cost to complete new build dry cooling systems sold under its previous strategy as well as bad debt charges of approximately $7.9 million that were taken in the fourth quarter. In the Babcock & Wilcox segment, lower volume in the new build and parts businesses were partially offset by savings from restructuring actions. On a GAAP basis, we also continued to have costs and write-downs of restructuring actions and strategic as well as financial and advisory costs required under the terms of our credit agreement. Adjusted EBITDA was negative $114.6 million for the quarter. However, pro forma to remove the impact of the Volund settlement, the SPIG project losses and bad debt write-offs, adjusted EBITDA would have been a negative $2.8 million. Now let me turn to our fourth quarter segment results. In the Babcock & Wilcox segment, formerly the Power segment, revenue was generally steady at $206.6 million. We believe that the B&W's segment business was also negatively impacted by the concern over the company's negative financial performance. As we believe many customers delayed or reduced their orders as the quarter progress because of this concern.…

Thanks, Lou. Well, in summary, we've made significant strides towards positioning B&W for return to profitability in a healthy future. We can now step out from underneath the shadow of the renewable EPC loss projects and demonstrate the strength of our core power business and our Volund and SPIG technologies. All of us, from me to Lou, Henry, Bob, to every B&W employee I've met around the world, we are focused on quality, cash flow, profitability and of course safety. We appreciate the continued support of our customers, vendors and employees and shareholders during these challenging times and look forward to working together to deliver for our customers in our core power and industrial markets, and what we believe will be a much better 2019. I will now turn the call back over to the operator, who will assist us in taking any questions.

[Operator Instructions] We do have a question from Robert Cathey with SCW Capital. Your line is open.

Hey, guys. I appreciate you guys [indiscernible]this call. I was wondering -- I know you’re not giving guidance as it relates to the run rate EBITDA for 2020, if you could kind of breakdown those components for us? And I also think we’ve only seen corporate that was paid back to parent from the original spend, if you can maybe give us some context around what corporate cost look like? Thanks.

Okay. We are not going to be able to give detailed guidance on the target we’ve mentioned. That’s a target and we will have guidance -- we are not going to do guidance as we indicated earlier. What was the second part of your question, Robert?

It's around corporate cost, but I guess that's irrelevant if you’re not providing any guidance around that.

Well, we can state what the corporate costs were, but not give guidance..

Okay, what were they?

About $25 million after costs allocated outside of -- into the other segments.

Okay, perfect. And then, I guess, just what I have, if you could maybe provide a little context around SPIG and I guess, what happened and what’s been remedied and what that business will focus on going forward?

Yes, just to talk a little bit about -- I mean, and again on high level, I think as we kind of alluded to in this -- in the conference call here, Robert is, SPIG had taken on I think an incredible amount trying to grow into many markets around the world and we just peeled that back into what we think are the more focused markets that they should be focused on from a product standpoint, both wet and dry overall, and so look for opportunities that lend or tend to give follow-on aspects around maintenance and parts after the sale as well. So those are typically more higher margin type opportunities and we wanted SPIG to reduce the geography footprint, as there's cost obviously to maintain those geographies and we wanted them to focus on the higher return opportunities which typically have a follow-on capabilities around maintenance in other parts after-the-fact or aftermarket.

Got it. Okay. Okay. Well, thanks guys. I know you had a really difficult situation. We appreciate all the hard work getting to where you’re today.

Thanks.

Thank you.

Appreciate the support.

[Operator Instructions] Okay. And this conclude the Q&A portion of today’s call. I will now turn things back over to the presenters for any closing remarks.

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.