Good morning. My name is Jessa, and I will be your conference operator today. At this time, I would like to welcome everyone to the Babcock & Wilcox Enterprises First Quarter 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks there will be a question-and-answer session [Operator Instructions] Thank you. Megan Wilson, Vice President, Investor Relations, you may begin your conference.

Thank you, Jessa, and good morning everyone. Welcome to Babcock & Wilcox Enterprises First Quarter 2019 Earnings Conference Call. I’m Megan Wilson, Vice President of Investor Relations at B&W. Joining me this morning are Kenny Young, B&W’s Chief Executive Officer; Lou Salamone, Chief Financial Officer; and Henry Bartoli, Chief Strategy Officer to discuss our first quarter results. During this call, certain statements we make will be forwardlooking. 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 provide further detail about the risks related to our business. Additionally, except as required by law, we undertake no obligation to update any forward-looking statements. 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 comparable GAAP measures. A reconciliation of historical non-GAAP measures can be found in our first quarter earnings release published yesterday. With that, I will turn the call over to Kenny.

Thank you, Megan and good morning everyone. Thanks for joining.Today, we’d like to take a slightly different approach to our earnings call. From a company standpoint, we feel strongly about the positive direction Babcock & Wilcox is trending and Lou, Henry and I want to share our thoughts about how we view the company’s transformation going forward and what we and all of our employees are working so diligently to achieve over the next several months. Our employees have been relentless in their dedication to our customers throughout the past several months as we’ve transitioned the company towards delivering our core technologies across our three segments: Babcock & Wilcox, Vølund and SPIG. We have taken significant steps to write off or write down our historical challenges, significantly reduce our risks, position ourselves for a profitable future, improve our balance sheet and put this company in the best position to increase market share, refinance our debt and begin the process to recognize value for our customers, our employees and our shareholders. Although we will have bumps in the road at times and we will still face challenges, we do see a clear pathway to improve cash flows as we complete the remaining commitments under our EPC loss contracts. We see opportunities to increase market share on a global basis, leading toward improved margins and building on an already strong and loyal customer base. Although we can’t give explicit guidance quarter-by-quarter in 2019 and it’s too early for greater details on 2020, we can say we see solid indications for increased returns throughout 2019, which should serve as the foundation to achieve our longer-term objectives as we enter 2020. About a month ago, we held an investor call to explain certain loss project settlements financing and made it clear that all of…

Thanks, Kenny. We had a very busy first quarter in 2019. We carried out many of our strategic actions and are continuing to implement them. We significantly improved our operations and profitability. And we achieved the financing that provides additional liquidity to execute our plans. Let me now get into the results of the quarter. The first quarter consolidated revenues were $231.9 million. They were down about 8.4% as compared to the 2018 quarter. The decrease, however, was primarily the result of several EPC contracts being in the final stages of completion in the first quarter and, therefore, generating lower revenue than in the prior -- in the 2018 quarter. The GAAP operating loss in the first quarter of 2019 was $74.4 million lower than the 2018 quarter. The loss in 2019 was $32 million compared to an operating loss of $106.4 million in the first quarter of 2018. Prior to the first quarter of 2019, the most significant drivers of the company's operating losses were the charges for the 6 European EPC loss contracts. In the first quarter of 2019, the most significant drivers are our operating losses or settlement costs related to certain EPC contracts, restructuring activities and advisory fees. Adjusted EBITDA loss was $72.6 million lower in the first quarter of 2019 at a negative $5 million as compared to $77.6 million negative in the first quarter of 2018. In the first quarter of '19, the company changed its calculation of adjusted EBITDA to exclude net pension benefit, foreign currency exchange effects and exclude other income and expense so, all references to adjusted EBITDA both on a comparable basis and a consistent basis going forward will be calculated on that basis and as additionally as we disclose it in the reconciliation. Now let me turn to our…

Great. Thanks, Lou. So as you can see from the results, BW's strengths are beginning to emerge from the shadow of the European EPC loss projects. The Babcock & Wilcox segment more than doubled its adjusted EBITDA this quarter compared with the prior year with strong bookings, a robust pipeline and reduced overhead costs. The SPIG segment returned to profitability with no additional charges on its few remaining legacy projects as its new strategy and management team are gaining traction. The Vølund segment with the limited remaining obligations on the EPC loss projects soon to be behind us is returning to its core technology strengths and rebuilding its pipeline and backlog. We continue to target a run rate adjusted EBITDA of about $100 million in 2020. So let's talk about how we'll get there. There are three parts to our strategy that we have talked about previously and begun implementation. One, focused on cost-saving initiatives, one, focused on improved cash flows, and one focused on our cost strengths with improved project execution. From a cost savings perspective, as Lou said, we're targeting and have identified about $100 million in annualized savings, the majority of which we've already implemented or have begun implementation. We are continuing to evaluate our cost structures to identify additional savings, and across the company, we've challenged our teams to find an additional $30 million of cost reductions. We're working through this process even as we speak. Our incentive programs align with these efforts and support the outcomes expected by our customers and our shareholders. We're focused on eliminating unnecessary overhead, and we'll continue to look aggressively to reduce unnecessary costs, streamline our global operations and drive more of our gross profit to the bottom line. To put this in perspective, in 2018, the Babcock & Wilcox…

There are no questions at this time. I'll turn the call back over to management for 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.