ST. LOUIS, Feb. 28, 2017 (GLOBE NEWSWIRE) --
1 Adjusted (non-GAAP) results exclude certain charges related to the Company’s restructuring efforts, reversal of a contingency reserve, a legal settlement and acquisition-related expenses. The reconciliation of adjusted results can be found on pages 2 and 3.
Q4 2016 HIGHLIGHTS
“We made investments in 2016 to position the Company for sustainable organic growth in our core North American municipal and midstream pipeline markets. Overshadowed by energy market challenges in 2016, Infrastructure Solutions had record performance in the North American CIPP market and Corrosion Protection saw improved results for its midstream cathodic protection services in the U.S.
“For 2017, we expect higher top line and operating income across all three platforms to result in strong earnings per share growth, greater cash generation and increasing ROIC. This positive outlook reflects our assessment of growing end markets, including an improving environment for oil & gas infrastructure, the expected completion of the large deepwater pipe coating and insulation project and continued execution of our long-term growth strategy.”
Charles R. Gordon
Aegion President and Chief Executive Officer
A PDF accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/9d32495d-f18d-4e93-b701-2e37d5462a69
Selected Q4’16 Consolidated Financial Highlights
Quarter Ended December 31, 2016 | Quarter Ended December 31, 2015 | ||||||||||||||||||||||||
(in thousands) | As Reported (GAAP) | Adjustments (1) | As Adjusted (Non-GAAP) | As Reported (GAAP) | Adjustments (2) | As Adjusted (Non-GAAP) | |||||||||||||||||||
Revenues | $ | 321,802 | $ | — | $ | 321,802 | $ | 330,713 | $ | — | $ | 330,713 | |||||||||||||
Gross profit | 71,242 | 158 | 71,400 | 67,423 | 74 | 67,497 | |||||||||||||||||||
Operating expenses | 50,291 | (836 | ) | 49,455 | 51,513 | (5,851 | ) | 45,662 | |||||||||||||||||
Operating income (loss) | 26,315 | (4,370 | ) | 21,945 | (28,640 | ) | 50,475 | 21,835 | |||||||||||||||||
Net income (loss) (attributable to Aegion Corporation) | 17,791 | (2,747 | ) | 15,044 | (32,860 | ) | 46,021 | 13,161 | |||||||||||||||||
Diluted earnings (loss) per share | $ | 0.52 | $ | (0.08 | ) | $ | 0.44 | $ | (0.91 | ) | $ | 1.27 | $ | 0.36 |
Net income and diluted earnings per share includes non-controlling interest.
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(1) 2016 Non-GAAP pre-tax adjustments:
(2) 2015 Non-GAAP pre-tax adjustments:
Selected Q4’16 Segment Financial Highlights
Infrastructure Solutions
Quarter Ended December 31, 2016 | Quarter Ended December 31, 2015 | ||||||||||||||||||||||||
(in thousands) | As Reported (GAAP) | Adjustments (1) | As Adjusted (Non-GAAP) | As Reported (GAAP) | Adjustments (2) | As Adjusted (Non-GAAP) | |||||||||||||||||||
Revenues | $ | 137,028 | $ | — | $ | 137,028 | $ | 135,064 | $ | — | $ | 135,064 | |||||||||||||
Gross profit | 32,196 | 69 | 32,265 | 33,821 | 74 | 33,895 | |||||||||||||||||||
Operating expenses | 22,129 | (266 | ) | 21,863 | 21,590 | (2,968 | ) | 18,622 | |||||||||||||||||
Operating income | 16,055 | (5,653 | ) | 10,402 | 11,165 | 4,108 | 15,273 |
(1) Includes non-GAAP adjustments related to: (i) pre-tax restructuring charges associated with the write-off of certain other assets, severance and benefit related costs, and other restructuring charges; (ii) gain on litigation settlement; and (iii) acquisition expenses incurred primarily in connection with the Company’s acquisitions of Underground Solutions, selected assets of Fyfe Europe, the CIPP business of Leif M. Jensen A/S and Concrete Solutions.
(2) Includes non-GAAP adjustments related to: (i) pre-tax restructuring charges associated with the write-off of certain other assets, reversal of reserves for potentially uncollectible receivables, early lease termination costs, severance and benefit related costs, and other restructuring charges; (ii) reserves for the settlement of a disputed matter; and (iii) acquisition expenses incurred primarily in connection with the Company’s acquisition of Underground Solutions.
Corrosion Protection
Quarter Ended December 31, 2016 | Quarter Ended December 31, 2015 | ||||||||||||||||||||||||
(in thousands) | As Reported (GAAP) | Adjustments (1) | As Adjusted (Non-GAAP) | As Reported (GAAP) | Adjustments (2) | As Adjusted (Non-GAAP) | |||||||||||||||||||
Revenues | $ | 119,529 | $ | — | $ | 119,529 | $ | 108,764 | $ | — | $ | 108,764 | |||||||||||||
Gross profit | 30,593 | 89 | 30,682 | 22,909 | — | 22,909 | |||||||||||||||||||
Operating expenses | 20,599 | (45 | ) | 20,554 | 23,045 | (2,883 | ) | 20,162 | |||||||||||||||||
Operating income | 9,435 | 693 | 10,128 | (10,093 | ) | 12,840 | 2,747 |
(1) Includes non-GAAP adjustments related to pre-tax restructuring charges associated with the write-off of certain other assets, severance and benefit related costs, and other restructuring charges.
(2) Includes non-GAAP adjustments related to: (i) reserves for accounts receivable associated with long-dated receivables; and (ii) impairment of goodwill for the CRTS reporting unit.
Energy Services
Quarter Ended December 31, 2016 | Quarter Ended December 31, 2015 | ||||||||||||||||||||||||
(in thousands) | As Reported (GAAP) | Adjustments (1) | As Adjusted (Non-GAAP) | As Reported (GAAP) | Adjustments (2) | As Adjusted (Non-GAAP) | |||||||||||||||||||
Revenues | $ | 65,245 | $ | — | $ | 65,245 | $ | 86,885 | $ | — | $ | 86,885 | |||||||||||||
Gross profit | 8,453 | — | 8,453 | 10,693 | — | 10,693 | |||||||||||||||||||
Operating expenses | 7,563 | (525 | ) | 7,038 | 6,878 | — | 6,878 | ||||||||||||||||||
Operating income | 825 | 590 | 1,415 | (29,712 | ) | 33,527 | 3,815 |
(1) Includes non-GAAP adjustments related to: (i) pre-tax restructuring charges associated with the write-off of certain other assets, early lease termination costs, severance and benefit related costs, and other restructuring charges; and (ii) reversal of a pre-tax contingency reserve established as part of the opening balance sheet for the acquisition of Brinderson L.P.
(2) Includes non-GAAP adjustments related to impairment of goodwill for the Energy Services reporting unit.
About Aegion (NASDAQ:AEGN)
Aegion combines innovative technologies with market-leading expertise to maintain, rehabilitate and strengthen infrastructure around the world. Since 1971, the Company has played a pioneering role in finding innovative solutions to rehabilitate aging infrastructure, primarily pipelines in the wastewater, water, energy, mining and refining industries. Aegion also maintains the efficient operation of refineries and other industrial facilities and provides innovative solutions for the strengthening of buildings, bridges and other structures. Aegion is committed to Stronger. Safer. Infrastructure.® More information about Aegion can be found at www.aegion.com.
Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Aegion’s forward-looking statements in this news release represent its beliefs or expectations about future events or financial performance. These forward-looking statements are based on information currently available to Aegion and on management’s beliefs, assumptions, estimates or projections and are not guarantees of future events or results. When used in this document, the words “anticipate,” “estimate,” “believe,” “plan,” “intend, “may,” “will” and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Such statements are subject to known and unknown risks, uncertainties and assumptions, including those referred to in the “Risk Factors” section of Aegion’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission on February 29, 2016, and in subsequently filed documents. In light of these risks, uncertainties and assumptions, the forward-looking events may not occur. In addition, Aegion’s actual results may vary materially from those anticipated, estimated, suggested or projected. Except as required by law, Aegion does not assume a duty to update forward-looking statements, whether as a result of new information, future events or otherwise. Investors should, however, review additional disclosures made by Aegion from time to time in Aegion’s filings with the Securities and Exchange Commission. Please use caution and do not place reliance on forward-looking statements. All forward-looking statements made by Aegion in this news release are qualified by these cautionary statements.
About Non-GAAP Financial Measures
Aegion has presented certain information in this release excluding certain items that impacted income, expense and earnings per share from continuing operations. The adjusted earnings per share in the fourth quarter and year ended December 31, 2016 exclude certain charges related to the Company’s restructuring efforts, acquisition-related activities, litigation settlement and the release of reserves related to pre-acquisition matters related to Brinderson L.P. The adjusted earnings per share in the fourth quarter and year ended December 31, 2015 exclude certain charges related to the Company’s restructuring efforts, the impairment of goodwill, refinancing costs, litigation settlement, acquisition-related expenses, divestiture activity and reserves for certain long-dated accounts receivable.
Aegion management uses such non-GAAP information internally to evaluate financial performance for Aegion’s operations because Aegion’s management believes such non-GAAP information allows management to more accurately compare Aegion’s ongoing performance across periods. As such, Aegion’s management believes that providing non-GAAP financial information to Aegion’s investors is useful because it allows investors to evaluate Aegion’s performance using the same methodology and information used by Aegion management.
Aegion®, Fibrwrap®, Fusible PVC®, Tyfo® and the associated logos are the registered trademarks of Aegion Corporation and its affiliates. (AEGN-ER)