Willbros Reports Second Quarter 2013 Results from Continuing Operations
HOUSTON, Aug. 8, 2013 /PRNewswire/ -- Willbros Group, Inc. (NYSE: WG) announced today results from continuing operations for the second quarter of 2013. The Company reported net income from continuing operations of $1.0 million, or $0.02 per share, on revenue of $487.9 million, compared to a net loss from continuing operations in the second quarter of 2012 of $2.0 million, or ($0.04) per share, on revenue of $450.4 million. The Company reported operating income of $9.4 million for the second quarter of 2013 compared to operating income of $7.5 million in the second quarter of 2012.
Randy Harl, President and Chief Executive Officer, commented, "We are pleased with the strong operating results generated by our Utility T&D and Professional Services segments, and another consecutive quarter of solid performance in Canada. However, I am disappointed with the performance of our regional service lines in the Oil & Gas segment which negatively impacted our results again this quarter. We have taken actions to resolve the root causes of these issues in the first half of this year and results in the regions for the month of June were breakeven as the loss projects are essentially completed. I expect material improvement from these operations for the remainder of the year.
"Our second quarter results demonstrate the capability of our diversified business model to deliver improved results. The solid performance in three of our segments has generated positive consolidated results. Going forward, we expect continued solid performance in these segments and improved results in our Oil & Gas segment."
Segment Operating Results
Oil & Gas
For the second quarter of 2013, the Oil & Gas segment reported an operating loss of $18.8 million on revenue of $186.4 million, compared to an operating loss of $3.5 million in the second quarter 2012. The segment results were negatively impacted by additional losses incurred in the regional service lines, in addition to lower utilization in our cross-country pipeline construction operations. Revenue generated from our downstream construction and maintenance activities increased over 40 percent from the second quarter of 2012 as a result of greater turnaround activity, as well as higher utilization of shops and fabrication resources.
Utility T&D
The Utility T&D segment generated revenue of $128.3 million, essentially flat compared to a year ago, and $15.6 million of operating income, an improvement of approximately $6.3 million of operating income over the second quarter of 2012. The increase in operating performance is primarily related to expanding margins in our transmission construction which benefited from storm restoration work in Texas and Oklahoma, successful completion of two more of the CREZ projects and the early start on a new transmission construction project in the Texas Panhandle.
Canada
The Canada segment reported operating income of $4.3 million, an improvement of $7.2 million over the second quarter of 2012, on revenue of $87.4 million. Contract revenue increased $50.0 million from the second quarter of 2012 resulting in a $128.1 million increase for the first six months compared to last year. Canada delivered a third consecutive quarter of solid operating results as it continues to benefit from its focus on the oil sands mine sites and in situ extraction developments. The improvement in operating income compared to last year was attributable to our specialty construction and integrity services, ongoing infrastructure replacement construction projects and additional maintenance work performed for our key oil sands mining customers.
Professional Services
The Professional Services segment reported operating income of $8.2 million, or 9.4 percent operating margins, an improvement of approximately $3.6 million relative to the second quarter of 2012. Revenue of $87.4 million was a slight increase compared to the second quarter of 2012 largely due to increased activity in our locating service which we expanded into new geographies during the first quarter. In addition to benefiting from expanding our integrity services, including line locating services, operating income for the quarter also improved due to strong performance in our upstream and midstream engineering, right-of-way, survey and government services.
Backlog(2)
At June 30, 2013, Willbros maintained backlog from continuing operations at $2.0 billion compared to $2.0 billion at March 31, 2013. Twelve month backlog increased to $919 million at June 30, 2013 compared to $880 million at March 31, 2013. Shortly after the close of the second quarter our Oil & Gas segment was awarded a contract to construct more than 150 miles of 30-inch pipeline from central Oklahoma to the Red River, and our Utility T&D segment won an additional 100+ miles of 345Kv line construction in western Oklahoma. Both projects will be recorded in third quarter backlog.
Credit Facility and Liquidity
Effective August 7, 2013, the Company completed the refinancing of its Amended and Restated Credit Agreement by entering into a five-year $150.0 million asset based senior revolving credit facility (the "ABL Credit Facility") maturing in 2018 and a six-year $250.0 million term loan facility (the "2013 Term Loan Facility") maturing in 2019. Proceeds from the 2013 Term Loan Facility were used to repay all indebtedness under the existing term loan facility and revolving credit facility under the Amended and Restated Credit Agreement, to pay fees and expenses incurred in connection with the transactions and for working capital purposes. The ABL Credit Facility was undrawn at close.
Van Welch, Executive Vice President and Chief Financial Officer, commented, "We have completed our refinancing and, with extended debt maturity to 2019, greater flexibility under our covenants, and a $150 million revolver, we are financially sound and have adequate liquidity to execute our plan going forward."
Conference Call
In conjunction with this release, Willbros has scheduled a conference call, which will be broadcast live over the Internet, on Friday, August 9, 2013 at 9:00 a.m. Eastern Time (8:00 a.m. Central).
What: |
Willbros Second Quarter Earnings Conference Call |
When: |
Friday, August 9, 2013 - 9:00 a.m. Eastern Time |
How: |
Live via phone - By dialing 480-629-9772 or 877-941-1466 a few minutes prior to the start time and asking for the Willbros' call. Or live over the Internet by logging on to the web address below. |
Where: |
http://www.willbros.com. The webcast can be accessed from the investor relations home page. |
For those who cannot listen to the live call, a replay will be available through August 16, 2013 and may be accessed by calling 303-590-3030 or 800-406-7325 using pass code 4633635#. 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, gas, refining, petrochemical and power industries. Our offerings include engineering, procurement and construction (either individually or as an integrated EPC service offering), turnarounds, maintenance, facilities development and operations 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 new legislation or regulations detrimental to the economic operation of refining capacity in the United States; the identification of one or more other issues that require restatement of one or more prior period financial statements; contract and billing disputes; the consequences the Company may encounter if it is unable to make payments required of it pursuant to its settlement agreement of the West African Gas Pipeline Company Limited lawsuit; the existence of material weaknesses in internal control over financial reporting; availability of quality management; availability and terms of capital; changes in, or the failure to comply with, government regulations; ability to remain in compliance with, or obtain waivers under, the Company's existing loan agreements; 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; poor refinery crack spreads; delay of planned refinery outages and upgrades and development trends of the oil, gas, power, refining and petrochemical 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.
CONTACT: |
|
Michael W. Collier |
Connie Dever |
Vice President Investor Relations |
Director Investor Relations |
Willbros |
Willbros |
713-403-8038 |
713-403-8035 |
TABLE TO FOLLOW
WILLBROS GROUP, INC. |
|||||||||||
(In thousands, except per share amounts) |
|||||||||||
Three Months Ended |
Six Months Ended |
||||||||||
June 30, |
June 30, |
||||||||||
2013 |
2012 |
2013 |
2012 |
||||||||
Income Statement |
|||||||||||
Contract revenue |
|||||||||||
Oil & Gas |
$ 186,387 |
$ 204,158 |
$ 371,371 |
$352,863 |
|||||||
Utility T&D |
128,321 |
129,836 |
241,525 |
238,146 |
|||||||
Canada |
87,425 |
37,356 |
199,420 |
71,325 |
|||||||
Professional Services |
87,423 |
80,074 |
165,888 |
163,647 |
|||||||
Eliminations |
(1,692) |
(1,002) |
(2,981) |
(1,853) |
|||||||
487,864 |
450,422 |
975,223 |
824,128 |
||||||||
Operating expenses |
|||||||||||
Oil & Gas |
205,145 |
207,697 |
404,700 |
359,088 |
|||||||
Utility T&D |
112,693 |
120,489 |
224,004 |
232,362 |
|||||||
Canada |
83,117 |
40,266 |
184,605 |
77,286 |
|||||||
Professional Services |
79,238 |
75,478 |
157,090 |
159,471 |
|||||||
Eliminations |
(1,692) |
(1,002) |
(2,981) |
(1,853) |
|||||||
478,501 |
442,928 |
967,418 |
826,354 |
||||||||
Operating income (loss) |
|||||||||||
Oil & Gas |
(18,758) |
(3,539) |
(33,329) |
(6,225) |
|||||||
Utility T&D |
15,628 |
9,347 |
17,521 |
5,784 |
|||||||
Canada |
4,308 |
(2,910) |
14,815 |
(5,961) |
|||||||
Professional Services |
8,185 |
4,596 |
8,798 |
4,176 |
|||||||
Operating income (loss) |
9,363 |
7,494 |
7,805 |
(2,226) |
|||||||
Other expense |
|||||||||||
Interest expense, net |
(6,922) |
(7,113) |
(14,612) |
(14,990) |
|||||||
Loss on early extinguishment of debt |
- |
(1,149) |
- |
(3,405) |
|||||||
Other, net |
(308) |
(15) |
(77) |
(339) |
|||||||
(7,230) |
(8,277) |
(14,689) |
(18,734) |
||||||||
Income (loss) from continuing operations before income taxes |
2,133 |
(783) |
(6,884) |
(20,960) |
|||||||
Provision for income taxes |
1,126 |
1,208 |
3,738 |
2,181 |
|||||||
Income (loss) from continuing operations |
1,007 |
(1,991) |
(10,622) |
(23,141) |
|||||||
Income (loss) from discontinued operations net of provision for income taxes |
(7,908) |
5,699 |
7,913 |
6,469 |
|||||||
Net income (loss) |
(6,901) |
3,708 |
(2,709) |
(16,672) |
|||||||
Less: Income attributable to noncontrolling interest |
- |
(328) |
- |
(672) |
|||||||
Net income (loss) attributable to Willbros Group, Inc. |
$ (6,901) |
$ 3,380 |
$ (2,709) |
$ (17,344) |
|||||||
Reconciliation of net income (loss) attributable to Willbros Group, Inc. |
|||||||||||
Income (loss) from continuing operations |
$ 1,007 |
$ (1,991) |
$ (10,622) |
$ (23,141) |
|||||||
Income (loss) from discontinued operations |
(7,908) |
5,371 |
7,913 |
5,797 |
|||||||
Net income (loss) attributable to Willbros Group, Inc. |
$ (6,901) |
$ 3,380 |
$ (2,709) |
$ (17,344) |
|||||||
Basic income (loss) per share attributable to Company shareholders: |
|||||||||||
Continuing operations |
$ 0.02 |
$ (0.04) |
$ (0.22) |
$ (0.48) |
|||||||
Discontinued operations |
(0.16) |
0.11 |
0.17 |
0.12 |
|||||||
$ (0.14) |
$ 0.07 |
$ (0.05) |
$ (0.36) |
||||||||
Diluted income (loss) per share attributable to Company shareholders: |
|||||||||||
Continuing operations |
$ 0.02 |
$ (0.04) |
$ (0.22) |
$ (0.48) |
|||||||
Discontinued operations |
(0.16) |
0.11 |
0.17 |
0.12 |
|||||||
$ (0.14) |
$ 0.07 |
$ (0.05) |
$ (0.36) |
||||||||
Cash Flow Data |
|||||||||||
Continuing operations |
|||||||||||
Cash provided by (used in) |
|||||||||||
Operating activities |
$ 32,067 |
$ 894 |
$ 17,473 |
$ 10,178 |
|||||||
Investing activities |
$ (2,418) |
$ (2,388) |
34,634 |
1,972 |
|||||||
Financing activities |
$ 14,889 |
$ (27,589) |
(44,009) |
(60,352) |
|||||||
Foreign exchange effects |
$ (291) |
$ (236) |
(519) |
(1,706) |
|||||||
Discontinued operations |
$ (335) |
$ 18,838 |
(8,349) |
24,944 |
|||||||
Other Data (Continuing Operations) |
|||||||||||
Weighted average shares outstanding |
|||||||||||
Basic |
48,587 |
47,995 |
48,447 |
47,888 |
|||||||
Diluted |
49,235 |
47,995 |
48,447 |
47,888 |
|||||||
Adjusted EBITDA from continuing operations(1) |
$ 22,385 |
$ 19,123 |
$ 31,945 |
$ 24,923 |
|||||||
Purchases of property, plant and equipment |
2,061 |
3,999 |
4,707 |
7,266 |
|||||||
Reconciliation of Non-GAAP Financial Measure |
|||||||||||
Adjusted EBITDA from continuing operations (1) |
|||||||||||
Income (loss) from continuing operations attributable to Willbros Group, Inc. |
$ 1,007 |
$ (1,991) |
$ (10,622) |
$ (23,141) |
|||||||
Interest expense, net |
6,922 |
7,113 |
14,612 |
14,990 |
|||||||
Provision for income taxes |
1,126 |
1,208 |
3,738 |
2,181 |
|||||||
Loss on early extinguishment of debt |
- |
1,149 |
- |
3,405 |
|||||||
Depreciation and amortization |
11,237 |
11,977 |
22,307 |
23,854 |
|||||||
DOJ monitor cost |
- |
- |
- |
1,586 |
|||||||
Stock based compensation |
1,977 |
1,833 |
2,798 |
3,917 |
|||||||
Restructuring and reorganization costs |
58 |
34 |
154 |
136 |
|||||||
(Gain) loss on disposal of property and equipment |
58 |
(2,200) |
(1,042) |
(2,005) |
|||||||
Adjusted EBITDA from continuing operations(1) |
$ 22,385 |
$ 19,123 |
$ 31,945 |
$ 24,923 |
|||||||
Balance Sheet Data |
6/30/2013 |
3/31/2013 |
12/31/2012 |
||||||||
Cash and cash equivalents |
$ 53,610 |
$ 9,698 |
$ 48,778 |
||||||||
Working capital |
236,812 |
217,406 |
270,512 |
||||||||
Total assets |
863,054 |
888,168 |
978,246 |
||||||||
Total debt |
264,842 |
249,968 |
303,820 |
||||||||
Stockholders' equity |
200,961 |
207,443 |
206,333 |
||||||||
Backlog Data (2) |
|||||||||||
Total By Reporting Segment |
|||||||||||
Oil & Gas |
$ 241,347 |
$ 212,358 |
$ 293,495 |
||||||||
Utility T&D |
1,079,261 |
1,169,806 |
1,257,403 |
||||||||
Canada |
415,804 |
395,804 |
349,520 |
||||||||
Professional Services |
220,707 |
228,134 |
197,752 |
||||||||
Total Backlog |
$1,957,119 |
$2,006,102 |
$2,098,170 |
||||||||
Total Backlog By Geographic Area |
|||||||||||
United States |
$1,537,313 |
$1,606,046 |
$1,743,906 |
||||||||
Canada |
415,804 |
395,804 |
349,520 |
||||||||
Other International |
4,002 |
4,252 |
4,744 |
||||||||
Total Backlog |
$1,957,119 |
$2,006,102 |
$2,098,170 |
||||||||
12 Month Backlog |
$ 918,974 |
$ 880,021 |
$1,010,365 |
||||||||
(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. These adjustments are included in various performance metrics under our credit facilities and other financing arrangements. 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.
|
||||||||||
(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. |
SOURCE Willbros Group, Inc.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article