Welcome!

News Feed Item

Willbros Reports Second Quarter 2014 Results from Continuing Operations

- Operating income of $18.5 million - highest operating income reported since 2010

HOUSTON, Aug. 4, 2014 /PRNewswire/ -- Willbros Group, Inc. (NYSE: WG) announced today results from continuing operations for the second quarter of 2014. The Company reported net income from continuing operations of $7.0 million, or $0.14 per diluted share, on revenue of $543.6 million, compared to a net loss from continuing operations in the second quarter of 2013 of $2.6 million, or $0.05 per share, on revenue of $435.8 million. Second quarter results included a non-cash debt extinguishment charge of $948 thousand, or $0.02 per share.  The Company reported operating income of $18.5 million, a $12.2 million improvement compared to operating income of $6.3 million in the second quarter of 2013.  Adjusted EBITDA(1) of $28.3 million for the second quarter of 2014 was a $9.8 million improvement from the same period last year.

Randy Harl, Chief Executive Officer, commented, "We continue to deliver more stable and predictable results and our second quarter performance reflects the benefit of having a diversified business model, with broad end-market exposure. Our operating results again improved quarter-over-quarter and exceeded any quarter in the last four years. Three of our four segments continue to generate strong operating performance. Canada delivered record second quarter results with operating margins of 11.0 percent, even with the Spring breakup.

"We had a $14.0 million operating income improvement in the Oil & Gas segment over the second quarter of 2013.  As we anticipated, our regional delivery services business became profitable for the first time since 2012."

Segment Operating Results

Oil & Gas
For the second quarter of 2014, the Oil & Gas segment reported contract revenue of $237.8 million, an increase of $103.4 million compared to the second quarter of 2013. The operating loss of $7.8 million was an improvement of $14.0 million from the second quarter of 2013. This improvement was primarily driven by the return to profitability in the regional service lines, reflecting the Company's  focus on larger midstream opportunities and right-sizing the regional offices to align resources with the markets where it can be successful. However, cost increases on one project in Oil & Gas led to a loss for the segment.

Utility T&D
Distribution related revenue and operating margins increased as the segment expands its geographic footprint in areas adjacent to Texas and along the Atlantic seaboard. For the second quarter of 2014, the Utility T&D segment reported operating income of $9.0 million on revenue of $111.9 million compared to operating income of $15.6 million on revenue of $128.3 million in the second quarter of 2013. The Company is successfully transitioning to a more balanced customer base for transmission and distribution services.

Canada
The Canada segment delivered another strong quarter of operating results in what is historically a seasonally weaker quarter due to the Spring breakup. Canada reported a record second quarter operating income of $10.5 million, with operating margins of 11.0 percent, on revenue of $95.3 million compared to operating income of $4.3 million, with operating margins of 4.9 percent, on revenue of $87.4 million in the second quarter of 2013. Canada continues to benefit from its focus on the oil sands mining and in-situ markets.

Professional Services
Revenue generated by the Professional Services segment increased 14.8 percent to $100.4 million compared to $87.4 million in the second quarter of 2013. The segment reported operating income of $6.9 million, a decrease of $1.3 million compared to the second quarter of 2013. The decrease quarter-over-quarter was driven by the delayed start on a government services fueling facility. Strong execution and operational performance on EPC projects, as well as higher margins in locating and integrity field services, partially offset the impact of this delay. The Company continues to expect that the investments made in new offices and technology will result in margin improvement going forward.

Backlog(2)
At June 30, 2014, Willbros total backlog was $1.7 billion compared to $1.9 billion at March 31, 2014, primarily due to the continued work-off of long-term master service agreements, which are subject to renewal options in future years, as well as the burn-off of backlog on several significant Oil & Gas projects during the quarter. At June 30, 2014, twelve month backlog also decreased slightly to $943.8 million from $1.0 billion at March 31, 2014.

Liquidity
At June 30, 2014, the Company had $28.3 million of cash and cash equivalents. As previously indicated, the Company borrowed $30.0 million on its revolver during the second quarter to finance working capital increases due to seasonal work levels, major projects and growth in revenue.  Unused availability under our revolver at June 30, 2014 was $47.1 million on a borrowing base of $142.9 million. With letters of credit outstanding of $65.8 million, total liquidity at June 30, 2014 was $75.4 million.

Conference Call
In conjunction with this release, Willbros has scheduled a conference call, which will be broadcast live over the Internet, on Tuesday, August 5, 2014 at 9:00 a.m. Eastern Time (8:00 a.m. Central).

What:     

Willbros Second Quarter Earnings Conference Call

When:     

Tuesday, August 5, 2014 - 9:00 a.m. Eastern Time

How:        

Live via phone - By dialing 719-325-2244 or 888-510-1785 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 12, 2014 and may be accessed by calling 719-457-0820 or 888-203-1112 using pass code 8525159#. 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

Senior Vice President

Director Investor Relations

Corporate Communications

Willbros

Willbros

713-403-8035

713-403-8038


 

TABLE TO FOLLOW

 













WILLBROS GROUP, INC.

(In thousands, except per share amounts)















 Three Months Ended 


 Six Months Ended 



 June 30, 


 June 30, 



2014


2013


2014


2013

Income Statement 










Contract revenue











Oil & Gas


$   237,777


$   134,368


$   431,831


$  302,904



Utility T&D


111,936


128,321


208,269


241,525



Canada


95,277


87,425


212,356


199,420



Professional Services


100,395


87,423


187,820


165,888



Eliminations


(1,828)


(1,692)


(3,335)


(2,981)






543,557


435,845


1,036,941


906,756














Operating expenses











Oil & Gas


245,626


156,198


441,860


339,209



Utility T&D


102,968


112,693


199,532


224,004



Canada


84,796


83,117


189,302


184,605



Professional Services


93,489


79,238


178,676


157,090



Eliminations


(1,828)


(1,692)


(3,335)


(2,981)






525,051


429,554


1,006,035


901,927














Operating income (loss)











Oil & Gas


(7,849)


(21,830)


(10,029)


(36,305)



Utility T&D


8,968


15,628


8,737


17,521



Canada


10,481


4,308


23,054


14,815



Professional Services


6,906


8,185


9,144


8,798


Operating income


18,506


6,291


30,906


4,829














Other expense











Interest expense, net


(7,477)


(7,419)


(15,195)


(15,109)



Loss on early extinguishment of debt


(948)


-


(948)


-



Other, net


(151)


(308)


(111)


(77)






(8,576)


(7,727)


(16,254)


(15,186)


Income (loss) from continuing operations before income taxes


9,930


(1,436)


14,652


(10,357)


Provision for income taxes


2,962


1,126


6,297


3,738


Income (loss) from continuing operations


6,968


(2,562)


8,355


(14,095)


Income (loss) from discontinued operations net of provision for income taxes


(10,620)


(4,339)


(18,614)


11,386


Net loss



$     (3,652)


$     (6,901)


$    (10,259)


$   (2,709)














Basic income (loss) per share attributable to Company shareholders:











Continuing operations


$         0.14


$       (0.05)


$         0.17


$    (0.29)



Discontinued operations


(0.22)


(0.09)


(0.38)


0.24






$       (0.08)


$       (0.14)


$       (0.21)


$    (0.05)














Diluted income (loss) per share attributable to Company shareholders:











Continuing operations


$         0.14


$       (0.05)


$         0.17


$    (0.29)



Discontinued operations


(0.21)


(0.09)


(0.37)


0.24






$       (0.07)


$       (0.14)


$       (0.20)


$    (0.05)













Cash Flow Data









Continuing operations










Cash provided by (used in)











Operating activities


$   (47,798)


$     30,611


$    (48,084)


$    5,512



Investing activities


22,367


(2,031)


41,626


34,741



Financing activities


3,577


14,889


(19,583)


(44,009)



Foreign exchange effects


717


(291)


(106)


(519)

Discontinued operations


(4,466)


734


10,811


3,505













Other Data (Continuing Operations)










Weighted average shares outstanding











Basic



49,337


48,587


49,093


48,447



Diluted


49,779


48,587


49,726


48,447


Adjusted EBITDA from continuing operations(1)


$     28,301


$     18,505


$     51,362


$  27,361


Purchases of property, plant and equipment


4,718


1,674


8,353


4,600













Reconciliation of Non-GAAP Financial Measure






















Adjusted EBITDA from continuing operations (1)











Income (loss) from continuing operations


$      6,968


$     (2,562)


$      8,355


$ (14,095)



Interest expense, net


7,477


7,419


15,195


15,109



Provision for income taxes


2,962


1,126


6,297


3,738



Depreciation and amortization


9,395


10,444


18,559


20,726



Loss on early extinguishment of debt


948


-


948


-



Stock based compensation


2,030


1,958


4,509


2,761



Restructuring and reorganization costs


-


58


220


154



(Gain) loss on disposal of property and equipment


(1,479)


62


(2,721)


(1,032)



Adjusted EBITDA from continuing operations(1)


$     28,301


$     18,505


$     51,362


$  27,361

























Balance Sheet Data


6/30/2014


3/31/2014


12/31/2013




Cash and cash equivalents


$     28,274


$     53,877


$     42,569




Working capital


235,152


233,483


248,086




Total assets


842,394


865,588


870,668




Total debt  


258,103


254,094


277,208




Stockholders' equity


179,333


180,328


188,774















Backlog Data (2)










Total By Reporting Segment











Oil & Gas


$   297,011


$   343,493


$   368,776





Utility T&D


946,321


990,004


978,535





Canada


255,812


285,364


365,946





Professional Services


213,557


256,594


256,981




Total Backlog


$1,712,701


$1,875,455


$1,970,238
















Total Backlog By Geographic Area











United States


$1,453,981


$1,586,092


$1,599,796





Canada


255,812


285,364


365,946





Other International


2,908


3,999


4,496




Total Backlog


$1,712,701


$1,875,455


$1,970,238
















12 Month Backlog


$   943,824


$1,044,037


$1,039,386















(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.

 

SOURCE Willbros Group, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
For financial firms, the cloud is going to increasingly become a crucial part of dealing with customers over the next five years and beyond, particularly with the growing use and acceptance of virtual currencies. There are new data storage paradigms on the horizon that will deliver secure solutions for storing and moving sensitive financial data around the world without touching terrestrial networks. In his session at 20th Cloud Expo, Cliff Beek, President of Cloud Constellation Corporation, w...
Most DevOps journeys involve several phases of maturity. Research shows that the inflection point where organizations begin to see maximum value is when they implement tight integration deploying their code to their infrastructure. Success at this level is the last barrier to at-will deployment. Storage, for instance, is more capable than where we read and write data. In his session at @DevOpsSummit at 20th Cloud Expo, Josh Atwell, a Developer Advocate for NetApp, will discuss the role and value...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assis...
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs oft...
The 21st International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo Silicon Valley Call for Papers is now open.
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
As cloud adoption continues to transform business, today's global enterprises are challenged with managing a growing amount of information living outside of the data center. The rapid adoption of IoT and increasingly mobile workforce are exacerbating the problem. Ensuring secure data sharing and efficient backup poses capacity and bandwidth considerations as well as policy and regulatory compliance issues.
Interested in leveling up on your Cloud Foundry skills? Join IBM for Cloud Foundry Days on June 7 at Cloud Expo New York at the Javits Center in New York City. Cloud Foundry Days is a free half day educational conference and networking event. Come find out why Cloud Foundry is the industry's fastest-growing and most adopted cloud application platform.
SYS-CON Events announced today that Interoute has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Interoute is the owner operator of Europe's largest network and a global cloud services platform, which encompasses over 70,000 km of lit fiber, 15 data centers, 17 virtual data centers and 33 colocation centers, with connections to 195 additional partner data centers. Our full-service Unifie...
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
IBM helps FinTechs and financial services companies build and monetize cognitive-enabled financial services apps quickly and at scale. Hosted on IBM Bluemix, IBM’s platform builds in customer insights, regulatory compliance analytics and security to help reduce development time and testing. In his session at 20th Cloud Expo, Tom Eck, Industry Platforms CTO at IBM Cloud, will discuss how these tools simplify the time-consuming tasks of selection, mapping and data integration, allowing developers ...
In order to meet the rapidly changing demands of today’s customers, companies are continually forced to redefine their business strategies in order to meet these needs, stay relevant and continue to see profitable growth. IoT deployment and development is integral in this transformation, and today businesses are increasingly seeing the value of investing their resources into IoT deployments. These technologies are able increase ROI through projects such as connecting supply chains or enabling sm...
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs ofte...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.