-
Non-GAAP second quarter 2015 diluted earnings per share from
continuing operations, excluding restructuring and acquisition-related
expenses, were $0.35 compared to $0.34 in the second quarter of 2014.
On a GAAP basis, second quarter 2015 earnings per diluted share from
continuing operations were $0.24 compared to $0.33 in the second
quarter of 2014.
-
Consolidated cash and cash equivalents at June 30, 2015 were $173.1
million, a $37.1 million increase from March 31, 2015.
-
Second quarter 2015 pre-tax benefits from the October 2014
restructuring were approximately $2.5 million, or $0.05 per diluted
share, in line with expectations.
-
Strengthening of the United States dollar against various
international currencies negatively impacted second quarter 2015
revenues by $10.6 million and operating income results by $0.8 million
(pre-tax), or $0.02 per diluted share, compared to the second quarter
of 2014.
-
Consolidated contract backlog at June 30, 2015 was $760.3 million, a
decline of 8.3 percent from June 30, 2014. Excluding contract backlog
from the exit of several international contracting markets and a large
Corrosion Protection contract canceled in the third quarter of 2014,
consolidated contract backlog at June 30, 2015 was $756.9 million, a
decline of 3.4 percent from June 30, 2014.
ST. LOUIS -- (Business Wire)
Aegion Corporation (Nasdaq Global Select Market: AEGN) today reported
GAAP earnings from continuing operations of $8.7 million, or $0.24 per
diluted share, compared to $12.8 million, or $0.33 per diluted share, in
the second quarter of 2014. On a non-GAAP basis, earnings from
continuing operations, excluding restructuring and acquisition-related
expenses, were $13.1 million, or $0.35 per diluted share, compared to
$13.1 million, or $0.34 per diluted share, in the prior year quarter.
For the first six months of 2015, reported GAAP earnings from continuing
operations were $10.0 million, or $0.27 per diluted share, compared to
$17.3 million, or $0.45 per diluted share, in the prior year period. On
a non-GAAP basis, earnings from continuing operations for the first six
months of 2015, excluding restructuring and acquisition-related
expenses, were $17.9 million, or $0.48 per diluted share, compared to
$17.9 million, or $0.47 per diluted share, for the first six months of
2014.
Charles R. Gordon, Aegion’s President and Chief Executive Officer,
commented, “Our second quarter 2015 financial results demonstrate
Aegion’s diversified businesses can generate strong results even when
our upstream energy business is under pressure this year from lower oil
prices. Infrastructure Solutions and the downstream portion of Energy
Services delivered strong results in the quarter. Our financial position
remains healthy, with strong first half operating cash flow, and near
record cash balances at the end of June. We estimate the negative impact
on second quarter earnings from certain of our businesses with the most
exposure to the upstream energy sector, was approximately $0.09 per
diluted share, as compared to the prior year.
Our 2014 restructuring efforts remain on track to be substantially
complete by the end of the third quarter of 2015 with approximately $2
million remaining in trailing cash costs. We recognized $0.17 per
diluted share of savings from the start of the initiative through June
30, 2015. We remain on track to recognize annualized savings of
approximately $11 million, or $0.20 per diluted share, at the high-end
of our original expectation.
It is becoming more apparent that the low price range for oil and gas
may continue for some time. As a result, we are evaluating how we may
adapt our upstream technologies and services to better meet this
evolving new reality.
Looking at the balance of the year, which is the seasonally strongest
for a majority of our businesses, we expect the areas of strength that
carried us in the first half of the year will do so again in the second
half. Infrastructure Solutions is on track for record revenues and
profits in 2015 from strong execution and backlog, which is at an
historic high level because of favorable end markets. We also are
benefiting from robust activity in Energy Services’ downstream refining
market due to an increase in refinery maintenance billable hours and the
scheduled execution of previously delayed turnaround projects. There
were positive developments in the last 90 days for Corrosion
Protection’s midstream market, including the award of several large
projects. In particular, Corrpro’s orders have increased significantly,
which is a positive indicator for an expected strong second half of the
year. For the full year, we believe the positive factors driving
performance in 2015 can largely offset the financial impact from the
challenges in the upstream energy market.”
2015 Outlook
Infrastructure Solutions
The Infrastructure Solutions platform is benefiting from increased
expenditures for municipal wastewater pipeline rehabilitation in the
United States, revenue and profit growth from Fyfe/Fibrwrap, the 2014
restructuring and realignment of the international segment and improved
project execution across the platform. Backlog at June 30, 2015 was
$362.9 million, a slight decrease over the prior year period, including
the negative effect of currency translation. However, excluding backlog
for the restructured international markets where Insituform is exiting
contract installation operations, backlog increased 1.9 percent compared
to June 30, 2014. Municipal expenditures for wastewater pipeline
rehabilitation remain at attractive levels led by improved financial
health and several large EPA consent decree enforcement actions in the
United States. Contract backlog for Insituform North America was at a
record level with solid orders during the second quarter. Opportunities
in the North American fiber-reinforced polymer market remain favorable,
reinforcing the outlook for growth in Fyfe/Fibrwrap for 2015.
Restructuring efforts in the six affected international markets continue
to proceed ahead of plan and position the Europe and Asia-Pacific
operations for significant profit growth in 2015. Long-term product
supply agreements have been secured in France, Switzerland, Hong Kong
and Singapore. While Infrastructure Solutions expects only modest
revenue growth, taking into account the revenue decline due to exiting
several international markets, operating income is expected to be at a
record level in 2015 due to gross margin expansion, both domestically
and internationally.
Corrosion Protection
While the mix of revenues and profits for Corrosion Protection favor the
midstream segment, the expected reduction in capital and maintenance
spending within the upstream market has had a significant impact on
platform financial results, which will likely continue in the second
half of 2015. Backlog at June 30, 2015, which was $173.4 million,
represented a 19.5 percent decline compared to June 30, 2014. Excluding
the third quarter 2014 cancellation of a $34.0 million onshore pipe
coating project in the United States, June 30, 2015 backlog declined 4.7
percent compared to June 30, 2014, which includes the negative effect of
currency translation. Pipe orders for the upcoming Canadian construction
season were down significantly indicating a sharp contraction in the
upstream market after record activity in the 2014/2015 construction
season. Market conditions for the upstream pipe linings business remain
under pressure as customers reduce expenditures and competition has
intensified for available projects. The North American midstream market
remains favorable as new orders for the cathodic protection business
increased sharply in June and July. Corrosion Protection backlog
includes $32.0 million of recently announced new awards for midstream
pipe coating projects in the United States Gulf Coast and the Caspian
Sea region, although the timing for project activity in the Middle East
remains a concern due to the impact from lower oil prices. Not included
in reported June 30, 2015 backlog is a large midstream Canadian project,
signed in July 2015, valued at over $10.0 million for alternating
electrical current pipe corrosion mitigation. The reported backlog and
recent awards in the midstream market support a favorable outlook for
the seasonally strong second half of the year. While 2015 should end
with a modest increase in revenues for Corrosion Protection, a
contraction in gross margins will likely result in lower operating
income compared to what was achieved in 2014.
Energy Services
The West Coast downstream refining market continues to be largely
unaffected by the decline in oil prices as demand remains high for
refined petroleum products. This market represents approximately 60
percent of Energy Services’ revenues, mostly for recurring time and
material maintenance activities, and the outlook for the second half of
the year remains favorable. However, the refinery shutdown turnaround
market has been more volatile than expected this year as several, but
not all, planned refinery shutdowns for Energy Services have been
postponed until 2016 to maximize capacity given strong market conditions.
Energy Services’ first half upstream results in the Central California
region declined due to customer-driven cost reductions as a result of
reduced maintenance and capital spending, which will likely continue for
the remainder of the year. Energy Services operations in the Permian
Basin are expected to break-even over the remainder of 2015 as a result
of securing additional small capital construction projects and operating
expense management compared to operating losses during the first half of
the year. As a result of these conflicting market dynamics, backlog for
Energy Services declined 9.7 percent to $224.0 million as of June 30,
2015 compared to June 30, 2014. Energy Services is expected to end 2015
with modest revenue growth due to the strength of the downstream
segment; however, because of lower gross margins during the first half
of the year and less work in the higher margin upstream market, there
will likely be a decline in operating income compared to 2014. Current
planned scheduled maintenance hours, turnaround activity, small capital
construction projects and other services in the second half of 2015
offer the opportunity for gross margin improvement more in line with the
15% run rate achieved in 2014.
|
| |
| |
| |
| |
CONTRACT BACKLOG |
(Unaudited, in millions)
|
|
The following table sets forth our consolidated backlog by segment
(in millions):
|
| | | | | | | |
|
| | June 30, | | March 31, | | December 31, | | June 30, |
| | 2015 | | 2015 | | 2014 | | 2014 |
Infrastructure Solutions (1) | |
$
|
362.9
| | |
$
|
354.2
| | |
$
|
337.5
| | |
$
|
365.7
|
Corrosion Protection (2) | |
173.4
| | |
159.3
| | |
176.0
| | |
215.4
|
Energy Services (3) | |
224.0
|
| |
238.2
|
| |
244.5
|
| |
248.1
|
Total backlog
| |
$
|
760.3
|
| |
$
|
751.7
|
| |
$
|
758.0
|
| |
$
|
829.2
|
______________________
| | | | | | | | | | | | | | | |
(1) June 30, 2015, March 31, 2015, December 31, 2014
and June 30, 2014 included backlog from restructured entities of
$3.3 million, $7.9 million, $3.7 million and $12.2 million,
respectively
|
| | | | | | | | | | | | | | | |
(2) June 30, 2014 included $34.0 million related to an
onshore pipe coating project that was canceled in the third
quarter of 2014.
|
| | | | | | | | | | | | | | |
|
(3) Represents expected unrecognized revenues to be
realized under long-term Master Service Agreements and other
signed contracts. If the remaining term of these arrangements
exceeds 12 months, the unrecognized revenues attributable to such
arrangements included in backlog are limited to only the next 12
months of expected revenues.
|
|
Realignment and Restructuring Plan
On October 6, 2014, Aegion announced a restructuring plan (“2014
Restructuring”) to exit low-return CIPP contracting businesses and
reduce the size and cost of the Company’s overhead structure to improve
gross margins and profitability over the long term.
In 2014, pre-tax charges were $49.5 million ($36.2 million after-tax, or
$0.95 per diluted share). During the first quarter of 2015, the Company
recorded pre-tax charges of $3.5 million ($3.3 million after-tax), or
$0.09 per diluted share, related to the loss on the sale of Insituform’s
contracting business in France, severance, retention and other cash
items related to the remaining affected contracting markets and the
combination of Fyfe/Fibrwrap with Insituform.
A pre-tax charge of $5.7 million ($4.4 million after-tax), or $0.11 per
diluted share, was recorded in the second quarter of 2015 to
substantially complete the shutdown of contracting operations in Hong
Kong, Singapore and Malaysia. Non-cash charges totaling $2.6 million
were primarily associated with allowances for the risk of uncollectible
receivables. Cash charges totaling $3.1 million consisted of employee
severance, extension of benefits, employment assistance programs and
other employment-related costs, as well as other restructuring costs.
The 2014 Restructuring was substantially completed in the second quarter
of 2015, with approximately $2.0 million in trailing cash costs expected
in the third quarter of 2015, which will result in total cash charges
for the 2014 Restructuring at approximately $14.0 million, within our
previously announced range.
The 2014 Restructuring is expected to generate annualized savings of
approximately $11.0 million, or $0.20 per diluted share, on a GAAP
basis. Pre-tax restructuring savings in the second quarter of 2015 were
$2.5 million, or $0.05 per diluted share. For the six months ended June
30, 2015, pre-tax savings were $5.0 million, or $0.10 per diluted share,
on track to achieve the high-end of the expected annual savings run rate.
Consolidated Highlights
Second Quarter 2015 versus Second Quarter 2014
(Non-GAAP;
excludes pre-tax charges for restructuring and acquisition-related
expenses)
Consolidated revenues increased 4.4 percent to $337.1 million due to
revenue growth in all three platforms. Infrastructure Solutions
increased revenues by 1.2 percent to $149.1 million. Revenues for the
North America water and wastewater business grew low single digits,
while revenues for the international water and wastewater segment
declined more than 20 percent, primarily as a result of exiting several
international contracting markets. The Fyfe/Fibrwrap business increased
revenues by 30 percent, primarily due to a large industrial project in
North America and growth in Asia. Revenues for Corrosion Protection were
$106.0 million, a 3.0 percent increase, as opportunities in the
midstream market were partially offset by revenue declines in the
upstream segment, especially in Canada for pipeline linings and
coatings. Energy Services grew revenues 12.8 percent to $81.9 million on
the strength of the West Coast refining downstream segment, which offset
a revenue decline in the Central California upstream market, which was
directly impacted by lower oil prices. Adverse foreign currency
translation rates accounted for a $10.7 million decrease in consolidated
revenues, which affected Infrastructure Solutions and Corrosion
Protection, primarily in Canada and Europe.
Consolidated gross profit increased 1.5 percent to $73.0 million. Gross
margins at Infrastructure Solutions expanded by 240 basis points to 26.8
percent due to strong execution in the water and wastewater business and
Fyfe/Fibrwrap businesses in North America. Gross profit for
Infrastructure Solutions increased 11.3 percent to $40.0 million.
Corrosion Protection gross margins contracted by 370 basis points to
20.6 percent, resulting in a 12.6 percent decline in gross profit to
$21.9 million. Three factors accounted for the decline in gross profit.
First, the impact to revenues and margins from the dramatic drop in oil
prices. Second, the absence of the large and high-margin Saudi Aramco
Wasit project, completed in 2014. Third, lower than expected labor
utilization rates for the cathodic protection business from a slower
ramp-up of project activity in the quarter. The impact of low oil prices
on the North America upstream segment accounted for the 140 basis point
reduction in gross margins to 13.6 percent for Energy Services. Foreign
currency translation adversely impacted Corrosion Protection and
Infrastructure Solutions resulting in a $2.1 million decrease in
consolidated gross profit.
Consolidated operating expense increased $2.1 million, or 4.1 percent,
to $52.8 million. As a percent of revenues, the consolidated operating
expense ratio was 15.7 percent, the same as in the second quarter of
2014. There are a number of factors driving the increase from the prior
year. First, long-term equity compensation expense increased by $1.2
million primarily due to the reversal of compensation costs in the prior
year quarter related to management changes. Second, an allowance for
doubtful accounts of $0.6 million was recorded in the second quarter of
2015 related to certain long dated receivable in dispute with a customer
in the Corrosion Protection segment. A favorable legal judgment was
secured against the creditor but its financial ability to pay the full
judgment amount is now in question. Third, severance-related costs of
$0.7 million were incurred for recent organizational leadership changes
in the Energy Services segment. Excluding the items above, consolidated
operating expense decreased by $0.4 million, or 1.0 percent. This
decrease was primarily driven by savings from the 2014 Restructuring,
totaling $1.9 million, as certain under-performing European and
Asia-Pacific locations were exited and overhead was decreased from
integrating the North American Fyfe/Fibrwrap operations with the
Insituform operations within the Infrastructure Solutions segment.
Partially offsetting the decreases were increased sales expenses and
administrative costs to support growth in certain operations within the
Corrosion Protection and Energy Services segments and increased
corporate related costs including information technology investments to
better integrate the platforms.
Consolidated operating income declined 4.6 percent to $20.2 million as
strong performance in the Infrastructure Solutions platform was offset
by declines in Corrosion Protection and Energy Services. Operating
income for Infrastructure Solutions grew 38.1 percent to $17.8 million.
Again, strong performance for the North America water and wastewater
business, a $3.9 million increase in operating income from
Fyfe/Fibrwrap, benefits from the 2014 Restructuring and ongoing cost
containment efforts accounted the favorable result. The challenges in
the upstream segment were the primary factor for the reduction in
operating income for Corrosion Protection and Energy Services. Operating
income declined $4.5 million to $0.9 million for Corrosion Protection
and declined $1.3 million to $1.5 million for Energy Services. Foreign
currency translation reduced operating income by $0.8 million affecting
Corrosion Protection and Infrastructure Solutions.
Cash Flow
Net cash flow provided by continuing operations was $58.4 million in the
first six months of 2015 compared to $19.0 million provided in prior
year period. Net changes in working capital was a $19.5 million source
of cash compared to a $26.6 million use of cash in the prior year
period. There was an increase in future vendor payments from strong
business volume, while receivables were down significantly as a result
of a concerted effort to increase cash collections. Days sales
outstanding on receivables decreased by more than 15 days from the prior
year. Additionally, during the first half of 2015, we received several
large deposits on pipe coating projects, which accounted for a portion
of the decrease in days sales outstanding.
Net cash flow used by investing activities was $19.4 million in the
first six months of 2015, compared to $5.6 million used in the same
period in 2014. The Company used $6.9 million, net of cash acquired, for
the acquisition of Schultz Mechanical Contractors, Inc. earlier this
year. Capital expenditures were $12.1 million in the first six months of
2015 compared to $13.8 million in the prior year period. In the first
quarter of 2014, the Company received proceeds of $9.1 million for the
sale of the Company’s 49% ownership interest in Bayou Coating, L.L.C.
following the majority partner’s exercise of its buy-out right.
Net cash flows from financing activities used $34.6 million in the first
six months of 2015 compared to $25.2 million used in the prior year
period. During the first half of 2015, the Company used $21.9 million to
repurchase approximately 1.1 million shares of common stock through open
market purchases and to repurchase shares in connection with the
Company’s equity compensation programs. The Company also made $13.1
million in scheduled principal payments on its long-term debt during the
first six months of 2015.
Net cash flow for the first six months of 2015 was an outflow of $1.9
million, which included a $6.4 million negative impact from currency
exchange rate changes. This compares to an outflow of $11.9 million in
the first half of 2014.
About Aegion
Aegion Corporation is a global leader in infrastructure protection
and maintenance, providing proprietary technologies and services: (i) to
protect against the corrosion of industrial pipelines; (ii) to
rehabilitate and strengthen water, wastewater, energy and mining piping
systems and buildings, bridges, tunnels and waterfront structures; and
(iii) to utilize integrated professional services in engineering,
procurement, construction, maintenance and turnaround services for a
broad range of energy related industries.Aegion’s business
activities include manufacturing, distribution, maintenance,
construction, installation, coating and insulation, cathodic protection,
research and development and licensing.More information about
Aegion can be found on our internet site 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, 2014, as filed with the Securities and Exchange
Commission on March 2, 2015, 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 non-GAAP earnings per share in the quarter
and first six months of 2015 exclude certain charges related to the 2014
Restructuring and acquisition-related expenses. The non-GAAP earnings
per share in the quarter and first six months of 2014 exclude the loss
on sale of the 49 percent interest in Bayou Coating, L.L.C., losses from
discontinued operations and acquisition-related expenses. 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®, the Aegion® logo, Insituform®,
Fibrwrap®, Fyfe® and Brinderson® are
registered trademarks of Aegion Corporation and its affiliates.
|
| |
|
|
| |
AEGION CORPORATION AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(Unaudited) |
(in thousands, except share and per share information) |
| | | | | |
|
| | For the Quarters Ended | | | | For the Six Months Ended |
| | June 30, | | | | June 30, |
| | 2015 |
| 2014 | | | | 2015 |
| 2014 |
Revenues | |
$
|
337,096
| |
|
$
|
322,868
| | | | |
$
|
646,262
| |
|
$
|
629,102
| |
Cost of revenues
| |
265,043
|
|
|
250,950
|
| | | |
515,019
|
|
|
496,121
|
|
Gross profit | |
72,053
| | |
71,918
| | | | |
131,243
| | |
132,981
| |
Operating expenses
| |
57,326
| | |
50,760
| | | | |
106,410
| | |
102,689
| |
Acquisition-related expenses
| |
—
| | |
539
| | | | |
323
| | |
539
| |
Restructuring charges
| |
204
|
|
|
—
|
| | | |
862
|
|
|
—
|
|
Operating income | |
14,523
| | |
20,619
| | | | |
23,648
| | |
29,753
| |
Other income (expense): | | | | | | | | | | |
Interest expense
| |
(2,989
|
)
| |
(3,320
|
)
| | | |
(6,221
|
)
| |
(6,435
|
)
|
Interest income
| |
78
| | |
125
| | | | |
204
| | |
377
| |
Other
| |
778
|
|
|
(687
|
)
| | | |
(2,001
|
)
|
|
(1,463
|
)
|
Total other expense | |
(2,133
|
)
|
|
(3,882
|
)
| | | |
(8,018
|
)
|
|
(7,521
|
)
|
Income before taxes on income | |
12,390
| | |
16,737
| | | | |
15,630
| | |
22,232
| |
Taxes on income | |
3,542
|
|
|
3,961
|
| | | |
5,410
|
|
|
5,573
|
|
Income before equity in earnings of affiliated companies | |
8,848
| | |
12,776
| | | | |
10,220
| | |
16,659
| |
Equity in earnings of affiliated companies | |
—
|
|
|
—
|
| | | |
—
|
|
|
677
|
|
Income from continuing operations | |
8,848
| | |
12,776
| | | | |
10,220
| | |
17,336
| |
Loss from discontinued operations | |
—
|
|
|
(364
|
)
| | | |
—
|
|
|
(496
|
)
|
Net income | |
8,848
| | |
12,412
| | | | |
10,220
| | |
16,840
| |
Non-controlling interests | |
(164
|
)
|
|
(26
|
)
| | | |
(177
|
)
|
|
(57
|
)
|
Net income attributable to Aegion Corporation | |
$
|
8,684
|
|
|
$
|
12,386
|
| | | |
$
|
10,043
|
|
|
$
|
16,783
|
|
| | | | | | | | | |
|
Earnings per share attributable to Aegion Corporation: | | | | | | | | | | |
Basic: | | | | | | | | | | |
Income from continuing operations
| |
$
|
0.24
| | |
$
|
0.34
| | | | |
$
|
0.27
| | |
$
|
0.46
| |
Loss from discontinued operations
| |
—
|
|
|
(0.01
|
)
| | | |
—
|
|
|
(0.01
|
)
|
Net income
| |
$
|
0.24
| | |
$
|
0.33
| | | | |
$
|
0.27
| | |
$
|
0.45
| |
Diluted: | | | | | | | | | | |
Income from continuing operations
| |
$
|
0.24
| | |
$
|
0.33
| | | | |
$
|
0.27
| | |
$
|
0.45
| |
Loss from discontinued operations
| |
—
|
|
|
(0.01
|
)
| | | |
—
|
|
|
(0.01
|
)
|
Net income
| |
$
|
0.24
| | |
$
|
0.32
| | | | |
$
|
0.27
| | |
$
|
0.44
| |
| | | | | | | | | |
|
| | | | | | | | | |
|
Weighted average shares outstanding - Basic | |
36,468,374
| | |
37,893,170
| | | | |
36,886,777
| | |
37,928,548
| |
Weighted average shares outstanding - Diluted | |
36,783,171
| | |
38,250,198
| | | | |
37,153,171
| | |
38,306,647
| |
| | | | | | | | | | | | | |
|
|
| |
| |
| |
AEGION CORPORATION AND SUBSIDIARIES |
STATEMENT OF OPERATIONS RECONCILIATION |
(Unaudited) (Non-GAAP) |
(in thousands, except share and per share information) |
| | | | | |
|
For the Quarter Ended June 30, 2015 | | | | | | |
| | | | | |
|
| | | | Restructuring- | | |
| | As Reported | | Related | | As Adjusted |
| | (GAAP) | | Charges (1) | | (Non-GAAP) |
Affected Line Items: | | | | | | |
Cost of revenues
| |
$
|
265,043
| | |
$
|
(968
|
)
| |
$
|
264,075
| |
Gross profit
| |
72,053
| | |
968
| | |
73,021
| |
Operating expenses
| |
57,326
| | |
(4,500
|
)
| |
52,826
| |
Restructuring charges
| |
204
| | |
(204
|
)
| |
—
| |
Operating income
| |
14,523
| | |
5,672
| | |
20,195
| |
Other income (expense):
| | | | | | |
Interest expense
| |
(2,989
|
)
| |
42
| | |
(2,947
|
)
|
Other
| |
778
| | |
(20
|
)
| |
758
| |
Income before taxes on income
| |
12,390
| | |
5,694
| | |
18,084
| |
Taxes on income
| |
3,542
| | |
1,327
| | |
4,869
| |
| | | | | |
|
Income from continuing operations attributable to Aegion Corporation (2) | |
8,684
| | |
4,367
| | |
13,051
| |
| | | | | |
|
Diluted earnings per share: | | | | | | |
Income from continuing operations attributable to Aegion Corporation (2) | |
$
|
0.24
| | |
$
|
0.11
| | |
$
|
0.35
| |
_________________________________
| | | | | | | | | | | | |
(1) Includes the following non-GAAP adjustments: (i)
pre-tax restructuring charges for cost of revenues of $968 related
to the write-off of certain other assets; (ii) pre-tax
restructuring charges for operating expenses of $4,500 related to
reserves for potentially uncollectable receivables, early lease
termination costs, and other restructuring charges; (iii) pre-tax
restructuring charges of $204 related to severance and benefit
related costs in accordance with ASC 420, Exit or Disposal Cost
Obligations, and recorded as “Restructuring charges” in the
Consolidated Statements of Operations; and (iv) charges of $22
related to the write-off of certain other assets.
|
| | | | | | | | | | | |
|
(2) Includes non-controlling interests.
|
|
|
| |
| |
| |
AEGION CORPORATION AND SUBSIDIARIES |
STATEMENT OF OPERATIONS RECONCILIATION |
(Unaudited)(Non-GAAP) |
(in thousands, except share and per share information) |
| | | | | |
|
For the Quarter Ended June 30, 2014 | | | | | | |
| | | |
| | |
| | | | Acquisition- | | |
| | As Reported | | Related | | As Adjusted |
| | (GAAP) | | Expenses (1) | | (Non-GAAP) |
Affected Line Items: | | | | | | |
Acquisition-related expenses
| |
$
|
539
| | |
$
|
(539
|
)
| |
$
|
—
|
Operating income
| |
20,619
| | |
539
| | |
21,158
|
Income before taxes on income
| |
16,737
| | |
539
| | |
17,276
|
Taxes on income
| |
3,961
| | |
208
| | |
4,169
|
| | | | | |
|
Income from continuing operations attributable to Aegion Corporation (2) | |
12,750
| | |
331
| | |
13,081
|
| | | | | |
|
Diluted earnings per share: | | | | | | |
Income from continuing operations attributable to Aegion
Corporation (2) | |
$
|
0.33
| | |
$
|
0.01
| | |
$
|
0.34
|
_________________________________
| | | | | | | | | | | |
(1) Includes the following non-GAAP adjustments: (i)
expenses incurred in connection with the 2013 acquisition of
Brinderson, L.P.; and (ii) other potential acquisition activity
pursued by the Company during the period.
|
| | | | | | | | | | |
|
(2) Includes non-controlling interests.
|
| | | | | | | | | | |
|
| |
| |
| |
| |
AEGION CORPORATION AND SUBSIDIARIES |
STATEMENT OF OPERATIONS RECONCILIATION |
(Unaudited) (Non-GAAP) |
(in thousands, except share and per share information) |
| | | | | | |
|
For the Six Months Ended June 30, 2015 |
| | | | | | |
|
| | | Restructuring- | | Acquisition- | | |
| As Reported | | Related | | Related | | As Adjusted |
| (GAAP) | | Charges (1) | | Expenses (2) |
| (Non-GAAP) |
Affected Line Items: | | | | | | | |
Cost of revenues
|
$
|
515,019
| | |
$
|
(982
|
)
| |
$
|
—
| | |
$
|
514,037
| |
Gross profit
|
131,243
| | |
982
| | |
—
| | |
132,225
| |
Operating expenses
|
106,410
| | |
(4,632
|
)
| |
—
| | |
101,778
| |
Acquisition-related expenses
|
323
| | |
—
| | |
(323
|
)
| |
—
| |
Restructuring charges
|
862
| | |
(862
|
)
| |
—
| | |
—
| |
Operating income
|
23,648
| | |
6,476
| | |
323
| | |
30,447
| |
Other income (expense):
| | | | | | | |
Interest expense
|
(6,221
|
)
| |
84
| | |
—
| | |
(6,137
|
)
|
Other
|
(2,001
|
)
| |
2,672
| | |
—
| | |
671
| |
Income before taxes on income
|
15,630
| | |
9,232
| | |
323
| | |
25,185
| |
Taxes on income
|
5,410
| | |
1,592
| | |
128
| | |
7,130
| |
| | | | | | |
|
Income from continuing operations attributable to Aegion Corporation (3) |
10,043
| | |
7,640
| | |
195
| | |
17,878
| |
| | | | | | |
|
Diluted earnings per share: | | | | | | | |
Income from continuing operations attributable to Aegion Corporation (3) |
$
|
0.27
| | |
$
|
0.21
| | |
$
|
—
| | |
$
|
0.48
| |
_________________________________
| | | | | | | | | | | | | | | |
(1) Includes the following non-GAAP adjustments: (i)
pre-tax restructuring charges for cost of revenues of $982 related
to the write-off of certain other assets; (ii) pre-tax
restructuring charges for operating expenses of $4,632 related to
reserves for potentially uncollectable receivables, early lease
termination costs, and other restructuring charges; (iii) pre-tax
restructuring charges of $862 related to severance and benefit
related costs in accordance with ASC 420, Exit or Disposal Cost
Obligations, and recorded as “Restructuring charges” in the
Consolidated Statements of Operations; and (iv) charges of $2,756
related to the write-off of certain other assets, including the
loss on the sale of the CIPP contracting operation in France.
|
| | | | | | | | | | | | | | |
|
(2) Includes non-GAAP adjustments related to expenses
incurred in connection with the Company’s acquisition of Schultz
Mechanical Contractors, Inc. during the period.
|
| | | | | | | | | | | | | | |
|
(3) Includes non-controlling interests.
|
|
| |
| |
| |
| |
AEGION CORPORATION AND SUBSIDIARIES |
STATEMENT OF OPERATIONS RECONCILIATION |
(Unaudited)(Non-GAAP) |
(in thousands, except share and per share information) |
| | | | | |
| | |
For the Six Months Ended June 30, 2014 |
| | | | | | | |
|
| | | | Acquisition- | | Loss on Sale | | |
| | As Reported | | Related | | of Bayou | | As Adjusted |
| | (GAAP) | | Expenses (1) | | Coating (2) | | (Non-GAAP) |
Affected Line Items: | | | | | | | | |
Acquisition-related expenses
| |
$
|
539
| | |
$
|
(539
|
)
| |
$
|
—
| | |
$
|
—
| |
Operating income
| |
29,753
| | |
539
| | |
—
| | |
30,292
| |
Other income (expense):
| | | | | | | | |
Other
| |
(1,463
|
)
| |
—
| | |
472
| | |
(991
|
)
|
Income before taxes on income
| |
22,232
| | |
539
| | |
472
| | |
23,243
| |
Taxes on income
| |
5,573
| | |
208
| | |
194
| | |
5,975
| |
| | | | | | | |
|
Income from continuing operations attributable to Aegion Corporation (3) | |
17,279
| | |
331
| | |
278
| | |
17,888
| |
| | | | | | | |
|
Diluted earnings per share: | | | | | | | | |
Income from continuing operations attributable to Aegion Corporation (3) | |
$
|
0.45
| | |
$
|
0.01
| | |
$
|
0.01
| | |
$
|
0.47
| |
_________________________________
| | | | | | | | | | | | | | | | |
(1) Includes the following non-GAAP adjustments: (i)
expenses incurred in connection with the 2013 acquisition of
Brinderson, L.P.; and (ii) other potential acquisition activity
pursued by the Company during the period.
|
| | | | | | | | | | | | | | | |
|
(2) Includes non-GAAP adjustments related to a loss on
the sale of the Company’s 49 percent interest in Bayou Coating,
L.L.C. The difference between the Company’s recorded gross equity
in earnings of affiliated companies of approximately $1,200 and
the final equity distribution settlement of $700 resulted in a
loss of approximately $500.
|
(3) Includes non-controlling interests and equity in
earnings of affiliated companies.
|
| | | | | | | | | | | | | | | |
|
Segment Reporting
|
| |
| |
| |
| |
| |
| |
Infrastructure Solutions | | | | | | | | | | | | |
| | | | | | | | | | | |
|
(in thousands) | | Quarter Ended June 30, 2015 | | Quarter Ended June 30, 2014 |
| | As | |
| | As | | As | |
| | As |
| | Reported | | Adjustments | | Adjusted | | Reported | | | | Adjusted |
| | (GAAP) | | (1) | | (Non-GAAP) | | (GAAP) | | Adjustments | | (Non-GAAP) |
Revenues
| |
$
|
149,091
| | |
$
|
—
| | |
$
|
149,091
| | |
$
|
147,260
| | |
$
|
—
| | |
$
|
147,260
| |
Cost of revenues
| |
110,060
| | |
(968
|
)
| |
109,092
| | |
111,309
| | |
—
| | |
111,309
| |
Gross profit
| |
39,031
| | |
968
| | |
39,999
| | |
35,951
| | |
—
| | |
35,951
|
|
Gross profit margin
| |
26.2
|
%
| | | |
26.8
|
%
| |
24.4
|
%
| | | |
24.4
|
%
|
Operating expenses
| |
26,712
| | |
(4,500
|
)
| |
22,212
| | |
23,075
| | |
—
| | |
23,075
| |
Restructuring charges
| |
204
| | |
(204
|
)
| |
—
| | |
—
| | |
—
|
| |
—
|
|
Operating income
| |
12,115
| | |
5,672
| | |
17,787
| | |
12,876
| | |
—
| | |
12,876
| |
Operating margin
| |
8.1
|
%
| | | |
11.9
|
%
| |
8.7
|
%
| | | |
8.7
|
%
|
_________________________________
| | | | | | | | | | | | | | | | |
(1) Includes non-GAAP adjustments related to pre-tax
restructuring charges associated with bad debt expenses, early
lease termination costs, severance and benefit related costs, and
other restructuring charges.
|
| | | | | | | | | | | | | | | |
|
|
| |
| |
Corrosion Protection |
| | | |
|
(in thousands) | | Quarter Ended June 30, 2015 | | Quarter Ended June 30, 2014 |
| | As |
|
|
| As | | As |
|
|
| As |
|
| | Reported | | | | Adjusted | | Reported | | Adjustments | | Adjusted |
| | (GAAP) | | Adjustments | | (Non-GAAP) | | (GAAP) | | (1) | | (Non-GAAP) |
Revenues
| |
$
|
106,022
| | |
$
|
—
| | |
$
|
106,022
| | |
$
|
102,923
| | |
$
|
—
| | |
$
|
102,923
| |
Cost of revenues
| |
84,135
| | |
—
| | |
84,135
| | |
77,889
| | |
—
| | |
77,889
| |
Gross profit
| |
21,887
| | |
—
| | |
21,887
| | |
25,034
| | |
—
| | |
25,034
| |
Gross profit margin
| |
20.6
|
%
| | | |
20.6
|
%
| |
24.3
|
%
| | | |
24.3
|
%
|
Operating expenses
| |
20,951
| | |
—
| | |
20,951
| | |
19,560
| | |
—
| | |
19,560
| |
Acquisition-related expenses
| |
—
| | |
—
| | |
—
| | |
197
| | |
(197
|
)
| |
—
| |
Operating income
| |
936
| | |
—
| | |
936
| | |
5,277
| | |
197
| | |
5,474
| |
Operating margin
| |
0.9
|
%
| | | |
0.9
|
%
| |
5.1
|
%
| | | |
5.3
|
%
|
_________________________________
| | | | | | | | | | | | | | | | |
(1) Includes non-GAAP adjustments related to expenses
incurred in conjunction with potential acquisition activity
pursued by the Company during the period.
|
| | | | | | | | | | | | | | | |
|
|
| |
| |
Energy Services | | | | |
| | | |
|
(in thousands) | | Quarter Ended June 30, 2015 | | Quarter Ended June 30, 2014 |
| | As |
|
|
| As | | As |
|
|
| As |
|
| | Reported | | | | Adjusted | | Reported | | Adjustments | | Adjusted |
| | (GAAP) | | Adjustments | | (Non-GAAP) | | (GAAP) | | (1) | | (Non-GAAP) |
Revenues
| |
$
|
81,983
| | |
$
|
—
| | |
$
|
81,983
| | |
$
|
72,685
| | |
$
|
—
| | |
$
|
72,685
| |
Cost of revenues
| |
70,848
| | |
—
| | |
70,848
| | |
61,752
| | |
—
| | |
61,752
| |
Gross profit
| |
11,135
| | |
—
| | |
11,135
| | |
10,933
| | |
—
| | |
10,933
| |
Gross profit margin
| |
13.6
|
%
| | | |
13.6
|
%
| |
15.0
|
%
| | | |
15.0
|
%
|
Operating expenses
| |
9,663
| | |
—
| | |
9,663
| | |
8,125
| | |
—
| | |
8,125
| |
Acquisition-related expenses
| |
—
| | |
—
| | |
—
| | |
342
| | |
(342
|
)
| |
—
| |
Operating income
| |
1,472
| | |
—
| | |
1,472
| | |
2,466
| | |
342
| | |
2,808
| |
Operating margin
| |
1.8
|
%
| | | |
1.8
|
%
| |
3.4
|
%
| | | |
3.9
|
%
|
_________________________________
| | | | | | | | | | | | | | | | |
(1) Includes non-GAAP adjustments related to expenses
incurred in conjunction with the Company’s acquisition of
Brinderson, L.P. during the period.
|
| | | | | | | | | | | | | | | |
|
|
| |
| |
Infrastructure Solutions |
| | | |
|
(in thousands) | | Six Months Ended June 30, 2015 | | Six Months Ended June 30, 2014 |
| | As |
|
|
| As | | As |
|
|
| As |
| | Reported | | Adjustments | | Adjusted | | Reported | | | | Adjusted |
| | (GAAP) | | (1) | | (Non-GAAP) | | (GAAP) | | Adjustments | | (Non-GAAP) |
Revenues
| |
$
|
271,564
| | |
$
|
—
| | |
$
|
271,564
| | |
$
|
269,584
| | |
$
|
—
| | |
$
|
269,584
| |
Cost of revenues
| |
203,918
| | |
(982
|
)
| |
202,936
| | |
208,079
| | |
—
| | |
208,079
| |
Gross profit
| |
67,646
| | |
982
| | |
68,628
| | |
61,505
| | |
—
| | |
61,505
| |
Gross profit margin
| |
24.9
|
%
| | | |
25.3
|
%
| |
22.8
|
%
| | | |
22.8
|
%
|
Operating expenses
| |
47,337
| | |
(4,632
|
)
| |
42,705
| | |
47,171
| | |
—
| | |
47,171
| |
Restructuring charges
| |
862
| | |
(862
|
)
| |
—
| | |
—
| | |
—
| | |
—
| |
Operating income
| |
19,447
| | |
6,476
| | |
25,923
| | |
14,334
| | |
—
| | |
14,334
| |
Operating margin
| |
7.2
|
%
| | | |
9.5
|
%
| |
5.3
|
%
| | | |
5.3
|
%
|
_________________________________
| | | | | | | | | | | | | | | | |
(1) Includes non-GAAP adjustments related to pre-tax
restructuring charges associated with reserves for potentially
uncollectable receivables, early lease termination costs,
severance and benefit related costs, and other restructuring
charges.
|
| | | | | | | | | | | | | | | |
|
|
| |
| |
Corrosion Protection |
| | | |
|
(in thousands) | | Six Months Ended June 30, 2015 | | Six Months Ended June 30, 2014 |
| | As |
|
|
| As | | As |
|
|
| As |
| | Reported | | | | Adjusted | | Reported | | Adjustments | | Adjusted |
| | (GAAP) | | Adjustments | | (Non-GAAP) | | (GAAP) | | (1) | | (Non-GAAP) |
Revenues
| |
$
|
207,765
| | |
$
|
—
| | |
$
|
207,765
| | |
$
|
210,931
| | |
$
|
—
| | |
$
|
210,931
| |
Cost of revenues
| |
165,049
| | |
—
| | |
165,049
| | |
161,756
| | |
—
| | |
161,756
| |
Gross profit
| |
42,716
| | |
—
| | |
42,716
| | |
49,175
| | |
—
| | |
49,175
| |
Gross profit margin
| |
20.6
|
%
| | | |
20.6
|
%
| |
23.3
|
%
| | | |
23.3
|
%
|
Operating expenses
| |
41,280
| | |
—
| | |
41,280
| | |
40,010
| | |
—
| | |
40,010
| |
Acquisition-related expenses
| |
—
| | |
—
| | |
—
| | |
197
| | |
(197
|
)
| |
—
| |
Operating income
| |
1,436
| | |
—
| | |
1,436
| | |
8,968
| | |
197
| | |
9,165
| |
Operating margin
| |
0.7
|
%
| | | |
0.7
|
%
| |
4.3
|
%
| | | |
4.3
|
%
|
_________________________________
| | | | | | | | | | | | | | | | |
(1) Includes non-GAAP adjustments related to expenses
incurred in conjunction with potential acquisition activity
pursued by the Company during the period.
|
| | | | | | | | | | | | | | | |
|
|
| |
| |
Energy Services |
| | | |
|
(in thousands) | | Six Months Ended June 30, 2015 | | Six Months Ended June 30, 2014 |
| | As |
|
|
| As | | As |
|
|
| As |
| | Reported | | Adjustments | | Adjusted | | Reported | | Adjustments | | Adjusted |
| | (GAAP) | | (1) | | (Non-GAAP) | | (GAAP) | | (2) | | (Non-GAAP) |
Revenues
| |
$
|
166,933
| | |
$
|
—
| | |
$
|
166,933
| | |
$
|
148,587
| | |
$
|
—
| | |
$
|
148,587
| |
Cost of revenues
| |
146,052
| | |
—
| | |
146,052
| | |
126,286
| | |
—
| | |
126,286
| |
Gross profit
| |
20,881
| | |
—
| | |
20,881
| | |
22,301
| | |
—
| | |
22,301
| |
Gross profit margin
| |
12.5
|
%
| | | |
12.5
|
%
| |
15.0
|
%
| | | |
15.0
|
%
|
Operating expenses
| |
17,793
| | |
—
| | |
17,793
| | |
15,508
| | |
—
| | |
15,508
| |
Acquisition-related expenses
| |
323
| | |
(323
|
)
| |
—
| | |
342
| | |
(342
|
)
| |
—
| |
Operating income
| |
2,765
| | |
323
| | |
3,088
| | |
6,451
| | |
342
| | |
6,793
| |
Operating margin
| |
1.7
|
%
| | | |
1.8
|
%
| |
4.3
|
%
| | | |
4.6
|
%
|
_________________________________
| | | | | | | | | | | | | | | | |
(1) Includes non-GAAP adjustments related to expenses
incurred in conjunction with the Company’s acquisition of Schultz
Mechanical Contractors, Inc. during the period.
|
| | | | | | | | | | | | | | | |
|
(2) Includes non-GAAP adjustments related to expenses
incurred in conjunction with the Company’s acquisition of
Brinderson, L.P. during the period.
|
| | | | | | | | | | | | | | | |
|
|
| |
| |
AEGION CORPORATION AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
(in thousands, except share amounts) |
| | | |
|
| | June 30, | | December 31, |
| | 2015 | | 2014 |
Assets | | | | |
Current assets | | | | |
Cash and cash equivalents
| |
$
|
|
|
173,072
| | |
$
|
174,965
| |
Restricted cash
| |
3,175
| | |
2,075
| |
Receivables, net of allowances of $18,484 and $19,307, respectively
| |
216,490
| | |
227,481
| |
Retainage
| |
36,592
| | |
38,318
| |
Costs and estimated earnings in excess of billings
| |
103,384
| | |
94,045
| |
Inventories
| |
56,974
| | |
59,192
| |
Prepaid expenses and other current assets
| |
40,643
|
| |
42,046
|
|
Total current assets | |
630,330
|
| |
638,122
|
|
Property, plant & equipment, less accumulated depreciation | |
162,592
|
| |
168,213
|
|
Other assets | | | | |
Goodwill
| |
294,492
| | |
293,023
| |
Identified intangible assets, less accumulated amortization
| |
180,482
| | |
182,273
| |
Deferred income tax assets
| |
3,029
| | |
3,334
| |
Other assets
| |
9,913
|
| |
10,708
|
|
Total other assets | |
487,916
|
| |
489,338
|
|
Total Assets | | $ |
|
| 1,280,838 |
| | $ | 1,295,673 |
|
| | | |
|
Liabilities and Equity | | | | |
Current liabilities | | | | |
Accounts payable
| |
$
| | |
90,380
| | |
$
|
83,285
| |
Accrued expenses
| |
105,912
| | |
111,617
| |
Billings in excess of costs and estimated earnings
| |
63,406
| | |
43,022
| |
Current maturities of long-term debt and line of credit
| |
26,399
|
| |
26,399
|
|
Total current liabilities | |
286,097
| | |
264,323
| |
Long-term debt, less current maturities | |
336,812
| | |
351,076
| |
Deferred income tax liabilities | |
24,287
| | |
22,913
| |
Other non-current liabilities | |
12,655
|
| |
12,276
|
|
Total liabilities | |
659,851
|
| |
650,588
|
|
| | | |
|
Equity | | | | |
Preferred stock, undesignated, $.10 par – shares authorized
2,000,000; none outstanding
| |
—
| | |
—
| |
Common stock, $.01 par – shares authorized 125,000,000; shares
issued and outstanding 36,277,841 and 37,360,515, respectively
| |
362
| | |
374
| |
Additional paid-in capital
| |
201,078
| | |
217,289
| |
Retained earnings
| |
443,684
| | |
433,641
| |
Accumulated other comprehensive loss
| |
(41,450
|
)
| |
(24,669
|
)
|
Total stockholders’ equity | |
603,674
| | |
626,635
| |
Non-controlling interests
| |
17,313
|
| |
18,450
|
|
Total equity | |
620,987
|
| |
645,085
|
|
Total Liabilities and Equity | | $ |
|
| 1,280,838 |
| | $ | 1,295,673 |
|
| | | | | | | | | |
|
|
| |
AEGION CORPORATION AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) |
(in thousands) |
| |
|
| | For the Six Months Ended |
| | June 30, |
| | 2015 |
| 2014 |
Cash flows from operating activities: | | | | |
Net income | |
$
|
|
|
10,220
| | |
$
|
16,840
| |
Loss from discontinued operations | |
—
|
| |
496
|
|
| |
10,220
| | |
17,336
| |
Adjustments to reconcile to net cash provided by operating
activities: | | | | |
Depreciation and amortization
| |
21,097
| | |
21,894
| |
Gain on sale of fixed assets
| |
(970
|
)
| |
(8
|
)
|
Equity-based compensation expense
| |
4,582
| | |
3,120
| |
Deferred income taxes
| |
2,001
| | |
(434
|
)
|
Equity in earnings of affiliated companies
| |
—
| | |
(677
|
)
|
Non-cash restructuring charges
| |
1,212
| | |
—
| |
Loss on sale of Video Injection - Insituform SAS
| |
2,864
| | |
—
| |
Loss on sale of interests in Bayou Coating, LLC
| |
—
| | |
472
| |
Loss on foreign currency transactions
| |
424
| | |
134
| |
Other
| |
(1,391
|
)
| |
2,243
| |
Changes in operating assets and liabilities (net of
acquisitions): | | | | |
Restricted cash related to operating activities
| |
(1,128
|
)
| |
(92
|
)
|
Return on equity of affiliated companies
| |
—
| | |
684
| |
Receivables net, retainage and costs and estimated earnings in
excess of billings
| |
(6,410
|
)
| |
(26,771
|
)
|
Inventories
| |
1,377
| | |
(1,605
|
)
|
Prepaid expenses and other assets
| |
(221
|
)
| |
(345
|
)
|
Accounts payable and accrued expenses
| |
3,702
| | |
(765
|
)
|
Billings in excess of costs and estimated earnings
| |
21,021
| | |
2,855
| |
Other operating
| |
49
|
| |
984
|
|
Net cash provided by operating activities of continuing operations | |
58,429
| | |
19,025
| |
Net cash used in operating activities of discontinued operations | |
—
|
| |
(90
|
)
|
Net cash provided by operating activities | |
58,429
| | |
18,935
| |
| | | |
|
Cash flows from investing activities: | | | | |
Capital expenditures
| |
(12,087
|
)
| |
(13,784
|
)
|
Proceeds from sale of fixed assets
| |
1,186
| | |
829
| |
Patent expenditures
| |
(1,576
|
)
| |
(1,730
|
)
|
Purchase of Schultz Mechanical Contractors, Inc.
| |
(6,878
|
)
| |
—
| |
Proceeds from sale of interests in Bayou Coating, L.L.C.
| |
—
| | |
9,065
| |
Fyfe Asia final working capital settlements, net
| |
(5
|
)
| |
—
|
|
Net cash used in investing activities of continuing operations | |
(19,360
|
)
| |
(5,620
|
)
|
Net cash provided by investing activities of discontinued
operations | |
—
|
| |
90
|
|
Net cash used in investing activities | |
(19,360
|
)
| |
(5,530
|
)
|
| | | |
|
Cash flows from financing activities: | | | | |
Proceeds from issuance of common stock upon stock option exercises,
including tax effects
| |
1,299
| | |
5,013
| |
Repurchase of common stock
| |
(21,926
|
)
| |
(20,661
|
)
|
Purchase of non-controlling interest
| |
—
| | |
(617
|
)
|
Proceeds on notes payable
| |
1,505
| | |
—
| |
Principal payments on notes payable
| |
(1,875
|
)
| |
—
| |
Proceeds from line of credit
| |
26,000
| | |
—
| |
Principal payments on long-term debt
| |
(39,593
|
)
| |
(8,915
|
)
|
Net cash used in financing activities | |
(34,590
|
)
| |
(25,180
|
)
|
Effect of exchange rate changes on cash | |
(6,372
|
)
| |
(124
|
)
|
Net decrease in cash and cash equivalents for the period | |
(1,893
|
)
| |
(11,899
|
)
|
Cash and cash equivalents, beginning of year | |
174,965
|
| |
158,045
|
|
Cash and cash equivalents, end of period | |
$
|
|
|
173,072
|
| |
$
|
146,146
|
|
| | | | | | | | | |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150729006884/en/
Contacts:
Aegion Corporation
David A. Martin, 636-530-8000
Executive
Vice President and Chief Financial Officer
Source: Aegion Corporation
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