Good morning. 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’s Q2 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 of Investor Relations, you may begin your conference.

Thank you, Chris, and good afternoon everyone. Welcome to Babcock & Wilcox Enterprises Second Quarter 2019 Earnings Conference Call. I’m Megan Wilson, Vice President of Investor Relations at B&W. Joining me this afternoon are Kenny Young, B&W’s Chief Executive Officer; Lou Salamone, Chief Financial Officer; and Henry Bartoli, Chief Strategy Officer to discuss our second 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 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 the comparable GAAP measures. A reconciliation of historical non-GAAP measures can be found in our second quarter earnings release published this morning.With that, I will turn the call over to Kenny.

Thanks, Megan. Good morning everyone and thanks for taking the time to join. Last quarter we shared our thoughts regarding the company’s transformation and what all of our employees are working so diligently to achieve through an intense commitment to deliver our core technologies across our three segments: Babcock & Wilcox, Vølund and SPIG.During this quarter we’ve made real progress on our path towards sustained profitability with a significant improvement in our operating loss which returned the company to profitability on an adjusted EBITDA basis. We remain fixated on reducing our risks, positioning ourselves for sustained profitability, improving our balance sheet, exceeding our customers’ expectations, growing profitable revenues and starting to process refinancing our debt. Although, we still face challenges, we’re on a rigorous path to improve cash flows and have started recognizing recoveries from insurance claims.We’re bidding on new opportunities and see real potential to increase market share on a global basis and building on an already strong and loyal customer base. We fully anticipate we will see an improved bottom-line throughout 2019 and establish the foundation for our longer term objectives in 2020.We’re taking concrete steps to ensure we execute on our cost reduction strategy over the next several quarters. The company has identified and initiated over a $119 million of annualized cost saving plans which includes previously announced corporate actions. We’ve identified unnecessary systems and are removing as much as practical from our overhead.We’re pushing accountability down to the lowest level and structuring effective incentives that drive not only value but safety, we expect each quarter to improve over the previous one as we remove unnecessary costs. We’ve also completed our equitization transactions including a rights offering which Lou will discuss in more detail later. These transactions which deleveraged our balance sheet put us in a good…

Thank you, Kenny. As Kenny mentioned and as we expected through recent dispositions of West Palm Beach and LIBOR reductions in the lost project revenues as we wind those down and changes in our strategy to focus on our core technologies and profitability, our second quarter consolidated revenues were $248.1 million, a decrease of $43.2 million compared to the second quarter of 2018.Our GAAP operating loss was $4.3 million in the second quarter of 2019, an improvement of $133 million compared to an operating loss of $137.4 million in the comparable 2018 quarter. The improved operating loss was primarily driven by improvements in gross profit in all of our segments led by lower level of losses on the European EPC loss contracts, the absence of goodwill impairment charges and the SG&A benefits of our restructuring and cost control initiatives. This quarter's $4.3 million loss also included a $5.7 million of charges for advisory fees and restructuring costs.Our consolidated adjusted EBITDA also improved by $90.4 million as we generated a positive consolidated adjusted EBITDA of $8 million as compared to a negative $82.4 million consolidated adjusted EBITDA in the second quarter of 2018.I’m now going to move on and discussed the improved second quarter results of our various segments. Our Babcock & Wilcox segment showed improvement in all key operating metrics. Revenues increased by 1.6% to $201 million in the second quarter as compared to $197.8 million in the prior year period. This increase was mainly driven by increased construction volume which was partly offset by lower retrofit activity.Our gross profit in the second quarter of 2019 was 26.3% higher than the previous year at $37.9 million as compared to $30 million in the 2018 period. This increase was primarily due to higher construction volume, better cost control at the operating…

Thanks Lou. Our performance in the second quarter of 2019 shows momentum following our recent strategic actions and cost-saving efforts. Our consolidated business improved operating margins significantly and return to profitability on an adjusted EBITDA basis. Our Babcock & Wilcox segment continued its strong performance and across the company we're making steady progress on our strategy to deliver value for our customers and improve profitability by focusing on our core technologies and businesses.With our equitization transactions complete, we are preparing to refinance as planned to support our ongoing financial recovery. As 2019 continues, we look forward to demonstrating the underlying core strengths of our businesses to our customers and our shareholders. As we said before, there are three parts to this strategy, cost-saving initiatives, improved cash flows and leveraging our strengths with improved project execution.From a cost savings perspective as Lou said, we're targeting and have identified about $119 million in annualized savings, the majority of which we've already implemented and we'll see more impact to our bottom line over time. We are continuing to evaluate our cost and structure to identify additional savings. Our incentive programs align with these efforts and support the outcomes expected by our customers and our shareholders.From a cash flow perspective with our April financing, we've been working towards a significantly improved balance sheet and credibility with our lenders, customers and suppliers. Through our equitization transaction, we've substantially de-levered the company ultimately as we continue establishing a stronger operation and financial environment over the next few quarters, we will position the company for refinancing as soon as possible.Once completed, we expect to avoid the substantial settlement, amendment, restructuring and advisory fees that have come with our recent financial challenges. We expect this improvement will also support improved terms with our customers and suppliers and ultimately…

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.