Willbros Group, Inc. (NYSE:WG) today reported a $29.7 million loss
from continuing operations, or $(0.49) per share, for the nine
months ended September 30, 2016, compared to an $83.8 million loss
from continuing operations, or $($1.47) per share, for the nine
months ended September 30, 2015. Adjusted EBITDA from
continuing operations was $3.7 million for the nine months ended
September 30, 2016 compared to $(15.8) million for the nine months
ended September 30, 2015.
For the third quarter of 2016, we reported a
loss from continuing operations of $10.7 million, or $(0.17) per
share, on revenue of $174.8 million, compared to a loss from
continuing operations of $19.4 million, or $(0.32) per share, in
the third quarter of 2015 on revenue of $222.2 million.
Adjusted EBITDA from continuing operations was approximately $0.3
million for the third quarter of 2016 compared to $(1.8) million
for the third quarter of 2015. Loss from continuing
operations before special items was $10.1 million for the third
quarter of 2016 compared to $13.8 million for the third quarter of
2015.
An operating loss of $6.3 million in the third
quarter of 2016 compares to an operating loss of $12.4 million in
the third quarter of 2015, a $6.1 million improvement.
Operating results for the third quarter of 2016 include
project losses on two jobs totaling approximately $4.7 million.
Other charges incurred during the third quarter of 2016
totaled $0.5 million related to equipment impairment and employee
severance costs. Excluding these other charges, the operating
loss before special items was $5.8 million in the third quarter of
2016.
Michael J. Fournier, President and CEO,
commented, “Year-to-date results represent a significant
improvement over the prior year as a result of our continuing
efforts to align our indirect and overhead costs to market
conditions. Our third quarter results were impacted by adverse
weather conditions and cost overruns on two projects. We may
recover some of these costs through future change orders.
“Our 12-month backlog remained relatively flat
compared to June 30, 2016 primarily due to additions to our MSA
contracts in the UTD segment. We are seeing an increase in our
bidding activity in our Oil and Gas segment and remain optimistic
in winning a major MSA renewal in our Canadian segment. Building
backlog remains our top priority throughout the organization.”
Included in this press release are certain
non-GAAP financial measures, including operating income (loss),
income (loss) from continuing operations, and Adjusted EBITDA from
continuing operations. A related reconciliation of each of
these non-GAAP measures is included in the accompanying
schedules.
Backlog
At September 30, 2016, Willbros reported total
backlog of $646.6 million, a decrease of $25.4 million from the
June 30, 2016 balance. Twelve month backlog of $375.7 million
at September 30, 2016 reflects a small increase from the $373.2
million reported at June 30, 2016. A substantial portion of
the total backlog decline is attributable to the expiration of
existing multi-year MSA contracts. We will rebid these MSA’s
as they come up for renewal but we do not include these new
contracts in backlog until they are signed. The twelve month
backlog is being impacted by Canadian MSA contracts that expire at
the end of 2016 and early 2017.
Segment Operating Results
Utility T&DUtility T&D generated revenue
of approximately $106.4 million in the third quarter of 2016, a
slight decrease from the second quarter of 2016. Despite
recording a large share of corporate costs, the segment generated
operating income of $0.6 million, a $1.1 million improvement over
the second quarter of 2016. Operating income before special
items of $0.7 million reflected a similar $1.1 million improvement
over the second quarter of 2016.
Oil & GasIn the third quarter of 2016, the
Oil & Gas segment generated revenue of $33.1 million, a $21.6
million decrease when compared to the second quarter of 2016.
The segment reported an operating loss of $5.4 million in the
third quarter of 2016, representing a $3.1 million increase over
the second quarter of 2016 operating loss. The third quarter of
2016 operating loss was inclusive of one project loss of $3.4
million. The segment reported an operating loss before special
items of $5.2 million, or a $3.0 million increase from the second
quarter of 2016 operating loss before special items.
CanadaThe Canada segment generated revenue of
$35.4 million for the third quarter of 2016, a $5.9 million
increase over the second quarter of 2016. The segment
reported an operating loss of $1.5 million in the third quarter of
2016, representing a $1.6 million reduction over the second quarter
of 2016 operating income. The third quarter of 2016 operating loss
was inclusive of one project loss of $1.3 million. The
segment reported operating loss before special items of $1.2
million, or a $2.4 million reduction from the second quarter of
2016 operating income before special items.
Liquidity and Debt
Total liquidity (defined as cash and cash
equivalents plus revolver availability) at September 30, 2016 was
$71.2 million, a decrease of $13.3 million from the end of the
second quarter of 2016. Cash and cash equivalents totaled
$42.3 million at September 30, 2016 and there were no revolver
borrowings at September 30, 2016.
At September 30, 2016, the principal amount due
on the term loan remained unchanged from the prior quarter at $92.2
million.
Guidance
Van Welch, Willbros Chief Financial Officer,
commented, “We now expect revenue for 2016 to range between $725
million to $750 million.”
Conference Call
In conjunction with this release, Willbros has scheduled a
conference call, which will be broadcast live over the Internet, on
Monday, October 31, 2016 at 10:00 a.m. Eastern Time (9:00 a.m.
Central Time).
What: |
|
Willbros Third Quarter 2016 Earnings Conference
Call |
|
|
|
When: |
|
Monday, October 31, 2016 - 10 a.m. Eastern
Time |
|
|
|
How: |
|
Live via phone - By dialing 1-888-317-6016 (U.S.
Toll Free), 1-855-669-9657 (Canada Toll Free) or 1-412-317-6016
(International) a few minutes prior to the start time and asking
for the Willbros Group, Inc. call. |
|
|
Live over the internet - By logging on to the
website at the following address: http://www.willbros.com.
The webcast can be accessed from the investor relations home
page. |
A replay will be available through November 8, 2016 and may be
accessed by calling 1-877-344-7529 (U.S. Toll Free), 1-855-669-9658
(Canada Toll Free) or 1-412-317-0088 (International) using Replay
Access Code 10095345. Also, an archive of the webcast will be
available shortly after the call on www.willbros.com.
Willbros is a specialty energy infrastructure
contractor serving the oil and gas and power industries with
offerings that primarily include construction, maintenance and
facilities development services. For more information on Willbros,
please visit our web site at www.willbros.com.
This announcement contains forward-looking
statements. All statements, other than statements of historical
facts, which address activities, events or developments the Company
expects or anticipates will or may occur in the future, are
forward-looking statements. A number of risks and
uncertainties could cause actual results to differ materially from
these statements, including unanticipated accounting or other
issues regarding any material weaknesses in internal control over
financial reporting; inability of the Company or its independent
auditor to confirm relevant information or data; unanticipated
issues that prevent or delay the Company’s independent auditor from
completing its review of financial statements or that require
additional efforts, procedures or review; the untimely filing of
financial statements; pending and potential investigations and
lawsuits; the identification of one or more issues that require
restatement of one or more other prior period financial statements;
ability to remain in compliance with, or obtain additional waivers
or amendments under, the Company's existing loan agreements; the
existence of other material weaknesses in internal control over
financial reporting; contract and billing disputes; availability of
quality management; availability and terms of capital; changes in,
or the failure to comply with, government regulations; the
promulgation, application, and interpretation of environmental laws
and regulations; future E&P capital expenditures; oil, gas, gas
liquids, and power prices and demand; the amount and location of
planned pipelines; development trends of the oil and gas, and power
industries; as well as other risk factors described from time to
time in the Company's documents and reports filed with the
SEC. The Company assumes no obligation to update publicly
such forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required
by law.
SCHEDULES TO FOLLOW
|
|
|
|
|
|
|
|
|
WILLBROS GROUP, INC. |
(In thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
September
30, |
|
September
30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Income
Statement |
|
|
|
|
|
|
|
|
|
Contract
revenue |
|
|
|
|
|
|
|
|
|
|
Oil &
Gas |
|
$ |
33,100 |
|
|
$ |
81,029 |
|
|
$ |
147,174 |
|
|
$ |
219,247 |
|
|
|
Utility
T&D |
|
|
106,422 |
|
|
|
88,922 |
|
|
|
313,066 |
|
|
|
282,347 |
|
|
|
Canada |
|
|
35,355 |
|
|
|
52,294 |
|
|
|
107,343 |
|
|
|
189,948 |
|
|
|
Eliminations |
|
|
(56 |
) |
|
|
(54 |
) |
|
|
(290 |
) |
|
|
(208 |
) |
|
|
|
|
|
|
174,821 |
|
|
|
222,191 |
|
|
|
567,293 |
|
|
|
691,334 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
Oil &
Gas |
|
|
38,501 |
|
|
|
89,358 |
|
|
|
163,978 |
|
|
|
254,302 |
|
|
|
Utility
T&D |
|
|
105,793 |
|
|
|
94,201 |
|
|
|
311,738 |
|
|
|
287,820 |
|
|
|
Canada |
|
|
36,902 |
|
|
|
49,472 |
|
|
|
110,388 |
|
|
|
188,260 |
|
|
|
Unallocated
Corporate Costs |
|
|
- |
|
|
|
1,581 |
|
|
|
- |
|
|
|
7,850 |
|
|
|
Eliminations |
|
|
(56 |
) |
|
|
(54 |
) |
|
|
(290 |
) |
|
|
(208 |
) |
|
|
|
|
|
|
181,140 |
|
|
|
234,558 |
|
|
|
585,814 |
|
|
|
738,024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss) |
|
|
|
|
|
|
|
|
|
|
Oil &
Gas |
|
|
(5,401 |
) |
|
|
(8,329 |
) |
|
|
(16,804 |
) |
|
|
(35,055 |
) |
|
|
Utility
T&D |
|
|
629 |
|
|
|
(5,279 |
) |
|
|
1,328 |
|
|
|
(5,473 |
) |
|
|
Canada |
|
|
(1,547 |
) |
|
|
2,822 |
|
|
|
(3,045 |
) |
|
|
1,688 |
|
|
|
Unallocated
Corporate Costs |
|
|
- |
|
|
|
(1,581 |
) |
|
|
- |
|
|
|
(7,850 |
) |
|
Operating
loss |
|
|
(6,319 |
) |
|
|
(12,367 |
) |
|
|
(18,521 |
) |
|
|
(46,690 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating expenses |
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
(3,564 |
) |
|
|
(6,125 |
) |
|
|
(10,433 |
) |
|
|
(20,976 |
) |
|
|
Interest
income |
|
|
12 |
|
|
|
15 |
|
|
|
443 |
|
|
|
37 |
|
|
|
Debt
covenant suspension and extinguishment charges |
|
|
- |
|
|
|
(931 |
) |
|
|
(63 |
) |
|
|
(37,112 |
) |
|
|
Other,
net |
|
|
2 |
|
|
|
(46 |
) |
|
|
- |
|
|
|
(181 |
) |
|
|
|
|
|
|
(3,550 |
) |
|
|
(7,087 |
) |
|
|
(10,053 |
) |
|
|
(58,232 |
) |
|
Loss from continuing operations before income taxes |
|
|
(9,869 |
) |
|
|
(19,454 |
) |
|
|
(28,574 |
) |
|
|
(104,922 |
) |
|
Provision
(benefit) for income taxes |
|
|
792 |
|
|
|
(43 |
) |
|
|
1,146 |
|
|
|
(21,164 |
) |
|
Loss from
continuing operations |
|
|
(10,661 |
) |
|
|
(19,411 |
) |
|
|
(29,720 |
) |
|
|
(83,758 |
) |
|
Income
(loss) from discontinued operations net of provision for income
taxes |
|
|
(1,325 |
) |
|
|
2,212 |
|
|
|
(3,836 |
) |
|
|
37,849 |
|
|
Net
loss |
|
|
$ |
(11,986 |
) |
|
$ |
(17,199 |
) |
|
$ |
(33,556 |
) |
|
$ |
(45,909 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per share attributable to Company shareholders: |
|
|
|
|
|
|
|
|
|
|
Continuing
operations |
|
$ |
(0.17 |
) |
|
$ |
(0.32 |
) |
|
$ |
(0.49 |
) |
|
$ |
(1.47 |
) |
|
|
Discontinued operations |
|
|
(0.02 |
) |
|
|
0.03 |
|
|
|
(0.06 |
) |
|
|
0.67 |
|
|
|
|
|
|
$ |
(0.19 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.55 |
) |
|
$ |
(0.80 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per share attributable to Company
shareholders: |
|
|
|
|
|
|
|
|
|
|
Continuing
operations |
|
$ |
(0.17 |
) |
|
$ |
(0.32 |
) |
|
$ |
(0.49 |
) |
|
$ |
(1.47 |
) |
|
|
Discontinued operations |
|
|
(0.02 |
) |
|
|
0.03 |
|
|
|
(0.06 |
) |
|
|
0.67 |
|
|
|
|
|
|
$ |
(0.19 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.55 |
) |
|
$ |
(0.80 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow
Data |
|
|
|
|
|
|
|
|
Continuing
operations |
|
|
|
|
|
|
|
|
|
Cash
provided by (used in) |
|
|
|
|
|
|
|
|
|
|
Operating
activities |
|
$ |
(5,189 |
) |
|
$ |
(27,489 |
) |
|
$ |
(8,232 |
) |
|
$ |
14,456 |
|
|
|
Investing
activities |
|
|
1,888 |
|
|
|
1,287 |
|
|
|
6,639 |
|
|
|
103,594 |
|
|
|
Financing
activities |
|
|
(2,450 |
) |
|
|
(1,309 |
) |
|
|
(8,570 |
) |
|
|
(82,087 |
) |
|
|
Foreign
exchange effects |
|
|
(308 |
) |
|
|
(341 |
) |
|
|
620 |
|
|
|
(752 |
) |
Discontinued operations |
|
|
(408 |
) |
|
|
7,724 |
|
|
|
(7,030 |
) |
|
|
(10,379 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other Data
(Continuing Operations) |
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
61,640 |
|
|
|
60,336 |
|
|
|
61,258 |
|
|
|
56,833 |
|
|
|
Diluted |
|
|
61,640 |
|
|
|
60,336 |
|
|
|
61,258 |
|
|
|
56,833 |
|
|
Adjusted
EBITDA from continuing operations(1) |
|
$ |
331 |
|
|
$ |
(1,815 |
) |
|
$ |
3,659 |
|
|
$ |
(15,827 |
) |
|
Purchases
of property, plant and equipment |
|
|
628 |
|
|
|
631 |
|
|
|
2,528 |
|
|
|
2,055 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA from continuing operations (1) |
|
|
|
|
|
|
|
|
|
|
Loss from
continuing operations |
|
$ |
(10,661 |
) |
|
$ |
(19,411 |
) |
|
$ |
(29,720 |
) |
|
$ |
(83,758 |
) |
|
|
Interest
expense |
|
|
3,564 |
|
|
|
6,125 |
|
|
|
10,433 |
|
|
|
20,976 |
|
|
|
Interest
income |
|
|
(12 |
) |
|
|
(15 |
) |
|
|
(443 |
) |
|
|
(37 |
) |
|
|
Provision
(benefit) for income taxes |
|
|
792 |
|
|
|
(43 |
) |
|
|
1,146 |
|
|
|
(21,164 |
) |
|
|
Depreciation and amortization |
|
|
5,385 |
|
|
|
6,452 |
|
|
|
16,694 |
|
|
|
21,046 |
|
|
|
Debt
covenant suspension and extinguishment charges |
|
|
- |
|
|
|
931 |
|
|
|
63 |
|
|
|
37,112 |
|
|
|
Stock based
compensation |
|
|
868 |
|
|
|
1,500 |
|
|
|
3,269 |
|
|
|
4,553 |
|
|
|
Restructuring and reorganization costs |
|
|
308 |
|
|
|
3,318 |
|
|
|
4,587 |
|
|
|
6,509 |
|
|
|
Accounting
and legal fees associated with the restatements |
|
|
4 |
|
|
|
205 |
|
|
|
(42 |
) |
|
|
651 |
|
|
|
Loss on
sale of subsidiary |
|
|
207 |
|
|
|
- |
|
|
|
330 |
|
|
|
- |
|
|
|
Fort
McMurray wildfire related costs |
|
|
- |
|
|
|
- |
|
|
|
523 |
|
|
|
- |
|
|
|
Gain on
disposal of property and equipment |
|
|
(124 |
) |
|
|
(877 |
) |
|
|
(3,181 |
) |
|
|
(1,715 |
) |
|
|
Adjusted
EBITDA from continuing operations(1) |
|
$ |
331 |
|
|
$ |
(1,815 |
) |
|
$ |
3,659 |
|
|
$ |
(15,827 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data |
|
September 30,
2016 |
|
June 30, 2016 |
|
March 31, 2016 |
|
December 31,
2015 |
|
Cash and
cash equivalents |
|
$ |
42,259 |
|
|
$ |
48,726 |
|
|
$ |
51,686 |
|
|
$ |
58,832 |
|
|
Working
capital |
|
|
96,709 |
|
|
|
105,443 |
|
|
|
106,304 |
|
|
|
120,430 |
|
|
Total
assets |
|
|
382,828 |
|
|
|
416,464 |
|
|
|
431,372 |
|
|
|
441,577 |
|
|
Total
debt |
|
|
88,672 |
|
|
|
90,589 |
|
|
|
90,617 |
|
|
|
95,623 |
|
|
Stockholders' equity |
|
|
148,974 |
|
|
|
160,324 |
|
|
|
165,682 |
|
|
|
177,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog Data (2) |
|
|
|
|
|
|
|
|
|
Total By Reporting Segment |
|
|
|
|
|
|
|
|
|
|
Oil &
Gas |
|
$ |
23,590 |
|
|
$ |
34,479 |
|
|
$ |
71,314 |
|
|
$ |
48,810 |
|
|
|
Utility
T&D |
|
|
535,014 |
|
|
|
535,218 |
|
|
|
595,620 |
|
|
|
622,629 |
|
|
|
Canada |
|
|
88,025 |
|
|
|
102,302 |
|
|
|
116,352 |
|
|
|
155,379 |
|
|
Total Backlog |
|
$ |
646,629 |
|
|
$ |
671,999 |
|
|
$ |
783,286 |
|
|
$ |
826,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Backlog By Geographic Area |
|
|
|
|
|
|
|
|
|
|
United
States |
|
$ |
558,604 |
|
|
$ |
569,697 |
|
|
$ |
666,934 |
|
|
$ |
671,439 |
|
|
|
Canada |
|
|
88,025 |
|
|
|
102,302 |
|
|
|
116,352 |
|
|
|
155,379 |
|
|
Total Backlog |
|
$ |
646,629 |
|
|
$ |
671,999 |
|
|
$ |
783,286 |
|
|
$ |
826,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 Month
Backlog by Reporting Segment |
|
|
|
|
|
|
|
|
|
|
Oil &
Gas |
|
$ |
23,590 |
|
|
$ |
34,479 |
|
|
$ |
69,514 |
|
|
$ |
46,810 |
|
|
|
Utility
T&D |
|
|
289,758 |
|
|
|
269,758 |
|
|
|
296,278 |
|
|
|
274,610 |
|
|
|
Canada |
|
|
62,400 |
|
|
|
68,995 |
|
|
|
91,503 |
|
|
|
110,797 |
|
|
12 Month Backlog |
|
$ |
375,748 |
|
|
$ |
373,232 |
|
|
$ |
457,295 |
|
|
$ |
432,217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 Month Backlog By Geographic Area |
|
|
|
|
|
|
|
|
|
|
United
States |
|
$ |
313,348 |
|
|
$ |
304,237 |
|
|
$ |
365,792 |
|
|
$ |
321,420 |
|
|
|
Canada |
|
|
62,400 |
|
|
|
68,995 |
|
|
|
91,503 |
|
|
|
110,797 |
|
|
12 Month Backlog |
|
$ |
375,748 |
|
|
$ |
373,232 |
|
|
$ |
457,295 |
|
|
$ |
432,217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Adjusted EBITDA from continuing operations is defined as
income (loss) from continuing operations before interest expense,
income tax expense (benefit) and depreciation and amortization,
adjusted for items broadly consisting of selected items which
management does not consider representative of our ongoing
operations and certain non-cash items of the Company.
Management uses Adjusted EBITDA from continuing operations as a
supplemental performance measure for comparing normalized operating
results with corresponding historical periods and with the
operational performance of other companies in our industry and for
presentations made to analysts, investment banks and other members
of the financial community who use this information in order to
make investment decisions about us. Adjusted EBITDA from continuing
operations is not a financial measurement recognized under U.S.
generally accepted accounting principles, or U.S. GAAP. When
analyzing our operating performance, investors should use Adjusted
EBITDA from continuing operations in addition to, and not as an
alternative for, net income, operating income, or any other
performance measure derived in accordance with U.S. GAAP, or as an
alternative to cash flow from operating activities as a measure of
our liquidity. Because all companies do not use identical
calculations, our presentation of Adjusted EBITDA from continuing
operations may be different from similarly titled measures of other
companies. |
(2 |
) |
Backlog is anticipated contract revenue from uncompleted
portions of existing contracts and contracts whose award is
reasonably assured. Master Service Agreement ("MSA") backlog
is estimated for the remaining term of the contract. MSA
backlog is determined based on historical trends inherent in the
MSAs, factoring in seasonal demand and projecting customer needs
based on ongoing communications. Backlog is not a term
recognized under U.S. GAAP; however, it is a common measurement
used in our industry. |
Supplemental
Schedule of Special Items |
|
|
|
|
|
|
|
Three Months Ended September 30,
2016 |
|
|
|
|
(In thousands) |
|
|
|
|
Oil & Gas |
Utility T&D |
Canada |
Unallocated Corporate Costs |
Eliminations |
Consolidated |
|
Contract revenue before
special items (1) |
|
|
|
|
|
|
|
|
|
Contract revenue, as
reported |
|
|
$ |
33,100 |
|
$ |
106,422 |
|
$ |
35,355 |
|
$ |
- |
|
$ |
(56 |
) |
$ |
174,821 |
|
|
Contract revenue,
exited subsidiaries (2) |
|
|
|
(13 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(13 |
) |
|
Contract revenue before
special items |
|
|
$ |
33,087 |
|
$ |
106,422 |
|
$ |
35,355 |
|
$ |
- |
|
$ |
(56 |
) |
$ |
174,808 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
before special items (1) |
|
|
|
|
|
|
|
|
|
Operating income
(loss), as reported |
|
|
$ |
(5,401 |
) |
$ |
629 |
|
$ |
(1,547 |
) |
$ |
- |
|
$ |
- |
|
$ |
(6,319 |
) |
|
Operating loss, exited
subsidiaries (2) |
|
|
|
29 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
29 |
|
|
Other charges |
|
|
|
158 |
|
|
36 |
|
|
325 |
|
|
- |
|
|
- |
|
|
519 |
|
|
Operating income (loss)
before special items |
|
|
$ |
(5,214 |
) |
$ |
665 |
|
$ |
(1,222 |
) |
$ |
- |
|
$ |
- |
|
$ |
(5,771 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
2016 |
|
|
|
|
(In thousands) |
|
|
|
|
Oil & Gas |
Utility T&D |
Canada |
Unallocated Corporate Costs |
Eliminations |
Consolidated |
|
Contract revenue before
special items (1) |
|
|
|
|
|
|
|
|
|
Contract revenue, as
reported |
|
|
$ |
54,739 |
|
$ |
109,355 |
|
$ |
29,496 |
|
$ |
- |
|
$ |
(148 |
) |
$ |
193,442 |
|
|
Contract revenue,
exited subsidiaries (2) |
|
|
|
(385 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(385 |
) |
|
Contract revenue before
special items |
|
|
$ |
54,354 |
|
$ |
109,355 |
|
$ |
29,496 |
|
$ |
- |
|
$ |
(148 |
) |
$ |
193,057 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
before special items (1) |
|
|
|
|
|
|
|
|
|
Operating income
(loss), as reported |
|
|
$ |
(2,326 |
) |
$ |
(505 |
) |
$ |
90 |
|
$ |
- |
|
$ |
- |
|
$ |
(2,741 |
) |
|
Operating income,
exited subsidiaries (2) |
|
|
|
(179 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(179 |
) |
|
Other charges |
|
|
|
265 |
|
|
99 |
|
|
575 |
|
|
- |
|
|
- |
|
|
939 |
|
|
Fort McMurray wildfire
related costs |
|
|
|
- |
|
|
- |
|
|
523 |
|
|
- |
|
|
- |
|
|
523 |
|
|
Operating income (loss)
before special items |
|
|
$ |
(2,240 |
) |
$ |
(406 |
) |
$ |
1,188 |
|
$ |
- |
|
$ |
- |
|
$ |
(1,458 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
2015 |
|
|
|
|
(In thousands) |
|
|
|
|
Oil & Gas |
Utility T&D |
Canada |
Unallocated Corporate Costs |
Eliminations |
Consolidated |
|
Contract revenue before
special items (1) |
|
|
|
|
|
|
|
|
|
Contract revenue, as
reported |
|
|
$ |
81,029 |
|
$ |
88,922 |
|
$ |
52,294 |
|
$ |
- |
|
$ |
(54 |
) |
$ |
222,191 |
|
|
Contract revenue,
exited subsidiaries (2) |
|
|
|
(7,783 |
) |
|
(2,943 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(10,726 |
) |
|
Contract revenue before
special items |
|
|
$ |
73,246 |
|
$ |
85,979 |
|
$ |
52,294 |
|
$ |
- |
|
$ |
(54 |
) |
$ |
211,465 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
before special items (1) |
|
|
|
|
|
|
|
|
|
Operating income
(loss), as reported |
|
|
$ |
(8,329 |
) |
$ |
(5,279 |
) |
$ |
2,822 |
|
$ |
(1,581 |
) |
$ |
- |
|
$ |
(12,367 |
) |
|
Operating loss, exited
subsidiaries (2) |
|
|
|
2,092 |
|
|
7 |
|
|
- |
|
|
- |
|
|
- |
|
|
2,099 |
|
|
Other charges |
|
|
|
3,787 |
|
|
81 |
|
|
11 |
|
|
(7 |
) |
|
- |
|
|
3,872 |
|
|
Operating income (loss)
before special items |
|
|
$ |
(2,450 |
) |
$ |
(5,191 |
) |
$ |
2,833 |
|
$ |
(1,588 |
) |
$ |
- |
|
$ |
(6,396 |
) |
|
|
|
|
|
|
|
|
|
|
|
Covenant EBITDA from
continuing operations (3) |
|
|
Q3 2016 |
Q2 2016 |
Q3 2015 |
|
|
|
|
Loss from continuing
operations |
|
|
$ |
(10,661 |
) |
$ |
(5,761 |
) |
$ |
(19,411 |
) |
|
|
|
|
Interest expense |
|
|
|
3,564 |
|
|
3,302 |
|
|
6,125 |
|
|
|
|
|
Interest income |
|
|
|
(12 |
) |
|
(411 |
) |
|
(15 |
) |
|
|
|
|
Provision (benefit) for
income taxes |
|
|
|
792 |
|
|
187 |
|
|
(43 |
) |
|
|
|
|
Depreciation and
amortization |
|
|
|
5,385 |
|
|
5,621 |
|
|
6,452 |
|
|
|
|
|
Debt covenant
suspension and extinguishment charges |
|
|
|
- |
|
|
- |
|
|
931 |
|
|
|
|
|
Stock-based
compensation |
|
|
|
868 |
|
|
1,108 |
|
|
1,500 |
|
|
|
|
|
Restructuring and
reorganization costs |
|
|
|
308 |
|
|
927 |
|
|
3,318 |
|
|
|
|
|
Accounting and legal
fees associated with the restatements |
|
|
|
4 |
|
|
(81 |
) |
|
205 |
|
|
|
|
|
Loss on sale of
subsidiary |
|
|
|
207 |
|
|
- |
|
|
- |
|
|
|
|
|
Fort McMurray wildfire
related costs |
|
|
|
- |
|
|
523 |
|
|
- |
|
|
|
|
|
Loss on
disposal of property and equipment outside of normal course of
business |
|
|
|
- |
|
|
- |
|
|
286 |
|
|
|
|
|
Changes in project loss
provision |
|
|
|
1,470 |
|
|
(186 |
) |
|
(525 |
) |
|
|
|
|
Adjustments to
self-insurance liabilities |
|
|
|
- |
|
|
- |
|
|
(2,732 |
) |
|
|
|
|
Letter of credit
fees |
|
|
|
349 |
|
|
342 |
|
|
409 |
|
|
|
|
|
Provision for (recovery
of) bad debt |
|
|
|
66 |
|
|
62 |
|
|
1,906 |
|
|
|
|
|
Covenant EBITDA from
continuing operations |
|
|
$ |
2,340 |
|
$ |
5,633 |
|
$ |
(1,594 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations before special items (1) |
|
|
Q3 2016 |
Q2 2016 |
Q3 2015 |
|
|
|
|
Loss from continuing
operations, as reported |
|
|
$ |
(10,661 |
) |
$ |
(5,761 |
) |
$ |
(19,411 |
) |
|
|
|
|
(Income) loss from
continuing operations, exited subsidiaries (2) |
|
|
|
29 |
|
|
(179 |
) |
|
2,099 |
|
|
|
|
|
Other charges |
|
|
|
519 |
|
|
939 |
|
|
3,872 |
|
|
|
|
|
Fort McMurray wildfire
related costs |
|
|
|
- |
|
|
523 |
|
|
- |
|
|
|
|
|
Debt covenant
suspension and extinguishment charges |
|
|
|
- |
|
|
- |
|
|
931 |
|
|
|
|
|
Benefit for income
taxes (4) |
|
|
|
- |
|
|
- |
|
|
(1,317 |
) |
|
|
|
|
Loss from continuing
operations before special items |
|
|
$ |
(10,113 |
) |
$ |
(4,478 |
) |
$ |
(13,826 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
discontinued operations before special items (1) |
|
|
Q3 2016 |
Q2 2016 |
Q3 2015 |
|
|
|
|
Income (loss) from
discontinued operations, as reported |
|
|
$ |
(1,325 |
) |
$ |
(658 |
) |
$ |
2,212 |
|
|
|
|
|
Other charges |
|
|
|
102 |
|
|
(1,162 |
) |
|
2,048 |
|
|
|
|
|
Loss on sale of
subsidiaries |
|
|
|
- |
|
|
911 |
|
|
591 |
|
|
|
|
|
Provision for income
taxes (4) |
|
|
|
- |
|
|
- |
|
|
1,317 |
|
|
|
|
|
Income (loss) from
discontinued operations before special items |
|
|
$ |
(1,223 |
) |
$ |
(909 |
) |
$ |
6,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss before special
items (1) |
|
|
Q3 2016 |
Q2 2016 |
Q3 2015 |
|
|
|
|
Net loss, as
reported |
|
|
$ |
(11,986 |
) |
$ |
(6,419 |
) |
$ |
(17,199 |
) |
|
|
|
|
(Income) loss from
continuing operations, exited subsidiaries (2) |
|
|
|
29 |
|
|
(179 |
) |
|
2,099 |
|
|
|
|
|
Other charges |
|
|
|
621 |
|
|
(223 |
) |
|
5,920 |
|
|
|
|
|
Fort McMurray wildfire
related costs |
|
|
|
- |
|
|
523 |
|
|
- |
|
|
|
|
|
Loss on sale of
subsidiaries |
|
|
|
- |
|
|
911 |
|
|
591 |
|
|
|
|
|
Debt covenant
suspension and extinguishment charges |
|
|
|
- |
|
|
- |
|
|
931 |
|
|
|
|
|
Provision (benefit) for income taxes |
|
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
Net
loss, before special items |
|
|
$ |
(11,336 |
) |
$ |
(5,387 |
) |
$ |
(7,658 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per share
attributable to Company shareholders before special items (1) |
|
|
Q3 2016 |
Q2 2016 |
Q3 2015 |
|
|
|
|
Diluted loss per share
attributable to Company shareholders, as reported |
|
|
$ |
(0.19 |
) |
$ |
(0.10 |
) |
$ |
(0.29 |
) |
|
|
|
|
(Income) loss from
continuing operations, exited subsidiaries (2) |
|
|
|
- |
|
|
- |
|
|
0.03 |
|
|
|
|
|
Other charges |
|
|
|
0.01 |
|
|
- |
|
|
0.10 |
|
|
|
|
|
Fort McMurray wildfire
related costs |
|
|
|
- |
|
|
0.01 |
|
|
- |
|
|
|
|
|
Loss on sale of
subsidiaries |
|
|
|
- |
|
|
0.01 |
|
|
0.01 |
|
|
|
|
|
Debt covenant
suspension and extinguishment charges |
|
|
|
- |
|
|
- |
|
|
0.02 |
|
|
|
|
|
Provision (benefit) for
income taxes |
|
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
Diluted loss per share
attributable to Company shareholders before special items |
|
|
$ |
(0.18 |
) |
$ |
(0.08 |
) |
$ |
(0.13 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Contract revenue before special items, operating income
(loss) before special items, Covenant EBITDA from continuing
operations before special items, loss from continuing operations
before special items, income (loss) from discontinued operations
before special items, net loss before special items and diluted
loss per share attributable to Company shareholders before special
items are non-GAAP financial measures that exclude special items
that management believes affect the comparison of results for the
periods presented. Management also believes results excluding
these items are more comparable to estimates provided by securities
analysts and therefore are useful in evaluating operational trends
of the Company and its performance relative to other construction
companies. In addition, management believes results excluding
these items are more indicative of the future operating prospects
for Willbros as a consolidated company. |
|
(2) Contract revenue, exited subsidiaries, operating income
(loss), exited subsidiaries and (income) loss from continuing
operations, exited subsidiaries relate to the Company's historical
Downstream Oil & Gas (including Fabrication services sold in
the first quarter of 2016), Regional Delivery and Bemis
subsidiaries. They are non-GAAP financial measures that
exclude special items that management believes affect the
comparison of results for the periods presented. Management
also believes results excluding these items are more comparable to
estimates provided by securities analysts and therefore are useful
in evaluating operational trends of the Company and its performance
relative to other construction companies. In addition,
management believes results excluding these items are more
indicative of the future operating prospects for Willbros as a
consolidated company. |
|
(3) Covenant EBITDA from continuing operations is a non-GAAP
financial measure that conforms to the definition of Consolidated
EBITDA in the Company's 2014 Term Credit Agreement which includes
certain special items. Management uses Covenant EBITDA from
continuing operations to determine the Company's compliance with
certain financial covenants under the 2014 Term Credit
Agreement. |
|
(4) The Company recorded a provision for income taxes on
discontinued operations in connection with the 2015 gains on sale
of the Professional Services segment and its historical
subsidiaries. The provision for income taxes in discontinued
operations was fully offset with a benefit for income taxes in
continuing operations through the utilization of prior year net
operating losses. The net effect on the Company's
consolidated financial results was $-0-. |
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CONTACT:
Stephen W. Breitigam
VP Investor Relations
Willbros
713-403-8172