Ladies and gentlemen, thank you for standing by. And welcome to the Babcock & Wilcox Enterprise Fourth Quarter and Full Year 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session [Operator Instructions].I will now turn the conference over to your speaker today, Megan Wilson, Vice President Investor Relations. Thank you. Please go ahead.

Thank you, Chantal, and good afternoon, everyone. Welcome to Babcock & Wilcox Enterprises fourth quarter and full year 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 and Louis Salamone, Chief Financial Officer, to discuss our fourth quarter and full year 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 that is 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 fourth quarter and full-year earnings release published yesterday afternoon.With that, I will turn the call over to Kenny.

Thanks, Megan. Good afternoon, everyone. And thanks for taking the time to join us today. Our 2019 results really demonstrate the effectiveness of our proven and experienced management team and implementation of our turnaround strategy. Our employees and technology are unsurpassed within the power industry, and we are executing on our operational and cost saving initiatives. We've achieved steadily increasing profitability for three consecutive quarters in 2019 on an adjusted EBITDA basis.In the fourth quarter, we generated positive GAAP income from continuing operations for the first time since the third quarter of 2016. Our transformation has been accelerating and we entered 2020 in our strongest position in years, driving cost savings, improving operating margins, strengthening our balance sheet, growing profitable revenues and pursuing a robust pipeline of new opportunities worldwide. Our focus is bottom line results and strong cash management.Like many companies around the world, we have been affected by the actions taken or being taken by various local and national governments worldwide due to the global COVID-19 pandemic and control its spread. Several of our major offices and many of our projects are located in areas with restrictions that necessitate work from home arrangements and enforced delays and deferrals in many of our projects. Like every company impacted by the pandemic, it's impossible for us to fully predict the extent of timing, including its influence on our liquidity and ongoing refinancing process.However, in this time of crisis throughout the world, two key points encourage and drive us forward at Babcock & Wilcox. The first is that we are part of a critical industry. We provide products and services needed to ensure power and energy infrastructure in the U. S. and around the world as available and ready to support our communities, help deliver the products, technologies and services necessary…

Thank you, Kenny. I'll review our fourth quarter 2019 consolidated and segment results in detail, and then I'll turn to our full year 2019 consolidated results. Further detail on our full year results can be found in the 10-K, which we filed with the SEC.Our fourth quarter consolidated results were $180.4 million. This was a decrease of about 19% compared to our fourth quarter 2018. This decrease was expected due to our focus on our core technologies and profitability, as well as some lower volume of periodic large construction new build projects in the B&W segment, which were completed prior in the year.Our GAAP operating income for the fourth quarter was $10 million, inclusive of restructuring and settlement costs and advisory fees of approximately $7.2 million compared to an operating loss of $137 million in the fourth quarter of 2018. The improvement in operating income was primarily due to improved gross margins in the Babcock Wilcox settlement segment, the absence of losses on our six European EPC loss contract and a change in the strategy in the SPIG segment to improve its profitability by focusing on more selective bidding in core geographies and products. Our consolidated adjust EBITDA also improved to a positive $19.3 million compared to a negative $114.2 million in the fourth quarter of 2018.I'll now move and cover the fourth quarter segment results. The revenues in the Babcock Wilcox settlement were $137 million in the fourth quarter of 2019, a decrease of approximately 33.7% compared to the $206 million in the prior year period. This was primarily attributable to lower volume of large construction new builds in the fourth quarter as was expected, based on the timing of the completion of some of our construction projects. Adjusted EBITDA in the fourth quarter of 2019 was $19.1 million.…

Thanks, Louis. Our performance in the fourth quarter of 2019 shows we turned the corner on improving our profitability, following our recent strategic actions and cost saving efforts, entering 2020 in a position of strength; our demonstrated track record and working through significant challenges, while continuing to execute to provide confidence to our customers, lenders and shareholders; and our ability to successfully lead the business through this unprecedented period in recent global history.We are communicating daily with each business segment and profit and loss leader in the company around the world to understand the impact of the pandemic, as well as the related cash flows and contingencies on a project by project basis. We have strengthen in knowing the majority of our revenues that are deferred to, due to COVID-19, are expected to return in the fall of 2020 or spring of 2021, depending on the customers in various stages of each project.We are working daily with our customers to support them throughout this period, as well as continuing certain projects while planning the remobilization of delayed projects. We're also focusing on supporting our customers and our energy infrastructure, taking care of our employees and managing our cash flow and liquidity through this crisis, to protect our fundamentally strong core business for the long term. I will now turn the call back over to Chantelle who will assist us in taking your questions.

[Operator Instructions] Your first question comes from Max Batzer with Wynnefield Capital. Your line is open.

I'd like to start by saying you guys have done a lot of heavy lifting last year, and it's certainly as in many companies that as you pointed out in your remarks, Kenny, is very tough after you’ve done all this work to be faced with the great unknown that we are looking at. And so, first of all, congratulations and good work on the heavy lifting that you’ve done and much to come. Second of all and now some questions, you said you consider it as essential business. Does that apply in all jurisdictions that you're doing business here in other countries? Is there an essential business designation that applies all over the place…

Yes, can you hear me okay. Sorry we're doing this live…

Yes, I’ve got you. Don’t worry about it, I got you...

We are in essential business and filed around the world in each of our operations and providing the services where local jurisdictions deem and support essential businesses in that filing from that standpoint. Clearly because of our position in supporting not only the energy sector, both in the U. S. but around the world and waste the energy sector around the world but we do provide essential technologies to hospitals, communities and other institutions, as well as the paper and pulp industry that is still a vital function occurring today. And so again best we can and where we can, we are providing a lot of assistance and support effectively to those businesses as well too. But we are deemed to essential and again jurisdictionally around the world, they call it different names where we are we’re deemed that one.

Got it, the rose by any other name is still a rose. Are you finding any difficulty in keeping your people healthy and keeping your operations staffed, is it still in place…?

From a company perspective, as of right now, we're not directly aware of any of our employees that have been tested positive for the virus. We clearly are taking significant steps like most companies today around the world, both from a proactive standpoint, from a company perspective also following closely not only here in the U. S. with CDC and local guidelines and regulations with state local officials but internationally as well too, working with the foreign governments and following those guidelines as well and doing our best to keep our employees safe.Clearly like many companies, we established a strong work-at-home presence. There are a few cases and a few aspects where we do have employees that need to go into the office. Obviously from an engineering perspective need to access certain technologies that would not be appropriate from a work at home, but we are taking those proactive measures. Our customers are supportive and working and we're working with them to follow any of the compliance and standards that they may be implementing as it relates to onsite activities when and where possible, and we're following their lead as well too on those employees. And so far, we're very thrilled with the fact that we've not had any direct impact by our employees on a worldwide basis from a test positive standpoint under the virus.

Well, may it remain so and the work that you do requires people out on the line, as well as on the computers. So that's good news. I've got two more short ones. One, how does this impact the refi you were thinking of doing? I mean are you still active on that? Are you still getting your results in the fourth quarter, or are institutions being supportive? And is there a chance of moving ahead…

Obviously, the impacts of this virus on the business as we talked about in deferring a lot of revenues and projects, obviously, presents challenges as it relates to the refinancing efforts and process at this point in time. And we're working closely with all vendors and discussions. At this point, I wouldn't want to go too much further than that. But we're in talks with the lenders, as well as others around working and managing through all of this process at this point that clearly the COVID impact is felt, and it will be felt in the business and as well as in the refinancing. How far we don't know and we're working through that real time as we speak.

Well, I'm glad to hear that at least you're still active on it and where there's light there’s hope, and we've got to get through this. And after the work you guys have done, I'm sure that there is some acknowledgement in the lending community and let's see how it plays out. Last question and thank you very much for giving me this time. What's the cash burn?

Operationally, cash right now is positive. Obviously, we can't really judge the future impacts, although, we've been working closely of the COVID-19 pandemic. But right now, we have been utilizing our revolver and so far we've been able to generate cash flow through borrowings and through the operations of our company.

Well, let’s hope that the operations continue so you don't have to hit that revolver too hard. And I guess that we just have to see once again how that plays out. Thank you very much for taking my questions. Good luck guys.

[Operator Instructions] Your next question comes from Robert Cathey with SCW Capital. Your line is open.

I was just curious I know you can't comment on the specifics, the likelihood of financing. But what is that, what you need and perhaps what do you want in the form of the facility that would -- I mean, what would work and then what would be your ideal wish list?

Well, I think, from our stand -- Robert, best way to answer that, I think and Louis feel free to chime in. But I think the best way I can answer that is clearly right now like every other company around the world, we're first and foremost, trying to protect our customers and employees and making sure that we have capital sufficient to work through this particular period where projects are delayed or deferred.So we're working as I mentioned in the briefing here, we're working 24/7 literally. I mean it literally is probably 18 hour days right now around the world working project-by-project on a day-in and day-out basis. To really ascertain the impact of the cash flows and the projects, either by cases where we have to defer a project, delay a project, where the client has been chosen to take initiatives to limit the number of personnel on site and therefore certain projects have been delayed or deferred.I think our standpoint and what we're trying to identify, and I wouldn't want to go into details here. But what we're trying to identify is what is the gap, if you will, and in working through this period. So there's obviously questions we all have as it relates to how long will this period last and when will globally the various government actions allow us to get back to work in some normality in the business.Some of that will happen in phases. Some of that will hopefully start shortly here this summer. And again, in certain parts of the world where some of these lockdowns and shutdowns and quarantines will start to be lifted possibly, others will be deferred to the fall yet and others right now are still being, we're working through with the customers to determine whether or…

Okay, well, that's helpful. I appreciate. And again, good luck, guys. And thanks for the hard work.

There are no further questions at this time. I’ll now turn the call back over to the presenters for closing remarks.

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

This conclude today's conference call. You may now disconnect.