Babcock & Wilcox Enterprises, Inc. (NYSE:BW) Q4 2022 Earnings Call Transcript

Kenny Young: Yeah. We do have that. There’s a lot of depends like we sell thousands and thousands of different parts and things like that. But we do have the capabilities to pass along a lot of the price increase or cost increases that occur or that we inherited from our vendors and suppliers. There are moments where we can do it immediately, there are — depending on the situation, somewhere we absorb it on one or two, but then we’re able to pass it the increases at a later date very — just depends on the contract and other aspects we have. But there is a few project — large long-term projects and we’re in multi-year projects, where we have the ability to adjust some pricing mechanisms, on certain elements, maybe not on others.

So they do vary a little bit project to project and part and part and customer to customer. But on average, we’re able to effectively increase that, in some cases 100% immediately, in some cases there a little bit of a lag. But for the most part, we’re able to — overall, we’re able to adjust that over time to our customers and have those price increases to cover those costs.

Alex Rygiel: And then lastly, Lou, can you comment on sort of the outlook for cash flow in 2023, understanding that there is every year kind of a few dynamics that might stand out as special situations?

Lou Salamone: Yeah. As you’ve seen in the past, the cadence of our cash flow kind of grows over each quarter. So your first quarter –our first quarter is generally a lower cash flow quarter, it builds in the second quarter, builds a little more in the third quarter and then a very as we evidenced by the performance here, we have a very strong fourth quarter. So we expect that cadence to continue. We’ve also taken internal and process steps to more closely with each of our units to push better cash processes and collection processes and that’s paid off to. But, Alex, I would expect the same cadence that you’ve experienced over the years. But with the EBITDA growth that we’re looking at, we should be able to produce very good cash flows in line with that EBITDA growth.

Alex Rygiel: Excellent. Thank you very much.

Kenny Young: Thanks, Alex.

Operator: Those were the questions we have for today’s call. I will turn the call back to the management team for any concluding remarks.

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

Operator: Thank you, everyone for joining us today. This concludes our call and you may now disconnect your lines.