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8-K - FORM 8-K - Willbros Group, Inc.\NEW\d102580d8k.htm
EX-99.2 - EX-99.2 - Willbros Group, Inc.\NEW\d102580dex992.htm

Exhibit 99.1

 

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Willbros Reports Fourth Quarter and Full Year 2015 Results

 

    Total Liquidity at December 31, 2015 is $90.8 million

 

    Term loan debt reduced from $270.0 million at December 31, 2014 to $95.4 million at December 31, 2015

 

    Asset sales of $250.2 million completed in 2015

 

    Company obtains covenant amendment from lender

 

    Company to host conference call at 9:00 AM CT, March 10, 2016

HOUSTON, TX, MARCH 9, 2016 — Willbros Group, Inc. (NYSE: WG) today reported fourth quarter and full year of 2015 financial and operating results. Due to the sale of Professional Services in the fourth quarter of 2015, the operating results for the segment are now included in discontinued operations for all periods presented. The Company reported revenue of $217.7 million for the fourth quarter of 2015, down $4.5 million from the third quarter of 2015. The Oil & Gas and Canada segments recorded lower sequential revenue as they are faced with the current challenges in the energy market. The Utility T&D electrical segment reported an $8.4 million sequential revenue increase. Net income for the fourth quarter and full year of 2015 was $77.4 million, or $1.26 per diluted share, and $31.5 million, or $0.54 per diluted share, respectively. These results were significantly impacted by the gain recorded in the fourth quarter of 2015 related to the sale of the Professional Services segment and the Bemis subsidiary and other special items. Excluding these special items, adjusted net loss for the fourth quarter and full year of 2015 was $17.3 million, or $(0.28) per diluted share, and $61.4 million, or $(1.06) per diluted share. For a detailed listing of these special items, see the supplemental schedules attached.

Michael J. Fournier, President and CEO, commented, “Our 2015 results reflect the hard work the organization accomplished by right-sizing Willbros to align our business segments with our markets and strengthening our balance sheet through the sale of our Professional Services segment and certain other non-core business assets. The recent sale in Q1 2016 of a small downstream facility completes our asset divestiture program. With the reduced indirect and overhead costs, we are sized to generate positive results, however, there remains risk in the volatility of work acquisition due to the headwinds of the current market conditions in our Oil & Gas and Canada segments.”

Continuing Operations

Included in this press release are certain non-GAAP financial measures, including revenue, operating income (loss) and net income (loss) before special items. A related reconciliation of each of these non-GAAP measures is included in the accompanying schedules.

 

 

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CONTACT:

Stephen W. Breitigam

VP Investor Relations

Willbros

713-403-8172


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The Company reported net income from continuing operations in the fourth quarter of 2015 of $19.2 million, or $0.31 per diluted share, on revenue of $217.7 million, compared to a net loss from continuing operations of $19.4 million, or $(0.32) per diluted share, on revenue of $222.2 million in the third quarter of 2015. The fourth quarter of 2015 net income from continuing operations of $19.2 million consists of a $13.7 million loss before income taxes plus an income tax benefit of $32.9 million. The income tax benefit is primarily due to the utilization of net operating loss carry forwards, which is reported as a benefit in continuing operations while the tax provision associated with the gain on the Professional Services segment sale is required to be reported in discontinued operations. The fourth quarter results include a gain of $12.8 million, or $0.21 per diluted share, on the sale of the Bemis subsidiary; other charges of approximately $8.3 million, or $0.14 per diluted share, associated with employee severance costs, equipment rationalization, facility lease abandonment and asset impairment costs; and other special items of $3.2 million, or $0.05 per diluted share. Excluding the items listed above and losses on businesses that we have now exited, adjusted net loss from continuing operations is $13.7 million, or $(0.22) per diluted share.

For the full year of 2015, the Company reported a net loss from continuing operations of $64.5 million, or $(1.12) per diluted share, on revenue of $909.0 million. Full year 2015 results include, in addition to the Bemis subsidiary sale gain; other charges of $18.5 million, or $0.32 per diluted share; non-cash debt extinguishment charges of $39.2 million, or $0.68 per diluted share; and additional interest expense associated with the termination of an interest rate hedging instrument of $1.2 million, or $0.02 per diluted share. Excluding these items and losses on businesses we have now exited, adjusted net loss from continuing operations for the full year of 2015 is $66.8 million, or $(1.16) per diluted share.

Discontinued Operations

The Company reported net income from discontinued operations of $58.2 million, or $0.95 per diluted share, in the fourth quarter of 2015. Included in the fourth quarter results is the after-tax gain of $61.8 million, or $1.01 per diluted share, on the sale of Professional Services. Full year 2015 net income from discontinued operations was $96.0 million, or $1.66, per diluted share. Excluding special items, adjusted net loss from discontinued operations for the fourth quarter of 2015 was $3.6 million, or $(0.06) per diluted share, and for the full year of 2015 adjusted net income from discontinued operations was $5.4 million, or $0.10 per diluted share.

Backlog

At December 31, 2015, Willbros reported total backlog of $826.8 million compared to $976.7 million at September 30, 2015. Twelve month backlog of $432.2 million at December 31, 2015 decreased $77.8 million from September 30, 2015. The decrease in twelve month backlog is primarily related to fewer additions in the Oil & Gas segment.

 

 

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CONTACT:

Stephen W. Breitigam

VP Investor Relations

Willbros

713-403-8172


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Segment Operating Results

Utility T&D before special items

For the fourth quarter of 2015, the Utility T&D segment reported an operating loss of $1.5 million on revenue of $97.1 million compared to an operating loss of $5.2 million on revenue of $86.0 million in the third quarter of 2015. The fourth quarter 2015 results include $2.3 million of costs associated with the issuance of customer volume discounts, lease termination costs for equipment purchases and a loss on a transmission job.

Oil & Gas before special items

For the fourth quarter of 2015, the Oil & Gas segment generated revenue of $76.6 million and an operating loss of $5.7 million, a $3.2 million increase in operating loss from the third quarter of 2015 when this segment generated $73.2 million in revenue. The fourth quarter of 2015 results were negatively impacted due to contract margin losses of $3.7 million on three construction jobs. The segment reported an operating loss of $26.4 million for the full year of 2015 on revenue of $238.7 million, primarily due to reduced activity levels, lower project margins and under-utilization of equipment and facilities.

Canada before special items

For the fourth quarter of 2015, the Canada segment generated operating income of $0.2 million on revenue of $42.6 million, compared to operating income of $2.8 million on revenue of $52.3 million in the third quarter of 2015. The revenue reduction is attributable to the challenging market conditions and the depressed oil and gas commodity prices. For the full year, the segment generated operating income of $2.8 million on revenue of $232.5 million. This operating income decline in 2015 was due to lower volume of work and a weakened Canadian dollar.

Liquidity

On March 1, 2016, the Company amended its Term Loan to put in place less stringent financial covenants for 2016 and the first two quarters of 2017. Total liquidity (defined as cash and cash equivalents plus revolver availability) was $90.8 million at December 31, 2015 including $58.8 million of cash and cash equivalents. There were no revolver borrowings at December 31, 2015 and currently there are none. With an increase in business activity towards the latter part of the first quarter of 2016, cash is anticipated to decline by March 31, 2016.

Conference Call

In conjunction with this release, Willbros has scheduled a conference call, which will be broadcast live over the Internet, on Thursday, March 10, 2016 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time).

 

What:    Willbros Fourth Quarter and Full Year 2015 Earnings Conference Call

 

 

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CONTACT:

Stephen W. Breitigam

VP Investor Relations

Willbros

713-403-8172


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When:    Thursday, March 10, 2016 - 10:00 a.m. Eastern Time (9:00 a.m. Central Time)
How:    Live via phone - By dialing 877-404-9648 or 412-902-0030 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 March 17, 2016 and may be accessed by calling 877-660-6853 or 201-612-7415 using pass code 13631008#. Also, an archive of the webcast will be available shortly after the call on www.willbros.com.

Willbros is a specialty energy infrastructure contractor serving the oil and gas and power industries with offerings that primarily include construction, maintenance and facilities development services. For more information on Willbros, please visit our web site at www.willbros.com.

This announcement contains forward-looking statements. All statements, other than statements of historical facts, which address activities, events or developments the Company expects or anticipates will or may occur in the future, are forward-looking statements. A number of risks and uncertainties could cause actual results to differ materially from these statements, including unanticipated accounting or other issues regarding any material weaknesses in internal control over financial reporting; inability of the Company or its independent auditor to confirm relevant information or data; unanticipated issues that prevent or delay the Company’s independent auditor from completing its review of financial statements or that require additional efforts, procedures or review; the untimely filing of financial statements; pending and potential investigations and lawsuits; the identification of one or more issues that require restatement of one or more other prior period financial statements; ability to remain in compliance with, or obtain additional waivers or amendments under, the Company’s existing loan agreements; the existence of other material weaknesses in internal control over financial reporting; contract and billing disputes; availability of quality management; availability and terms of capital; changes in, or the failure to comply with, government regulations; the promulgation, application, and interpretation of environmental laws and regulations; future E&P capital expenditures; oil, gas, gas liquids, and power prices and demand; the amount and location of planned pipelines; development trends of the oil, gas, and power industries; as well as other risk factors described from time to time in the Company’s documents and reports filed with the SEC. The Company assumes no obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

SCHEDULES TO FOLLOW

###

 

 

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CONTACT:

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713-403-8172


WILLBROS GROUP, INC.

(In thousands, except per share amounts)

 

     Three Months Ended
December 31,
    Year Ended
December 31,
 
     2015     2014     2015     2014  

Income Statement

        

Contract revenue

        

Oil & Gas

   $ 77,863      $ 160,822      $ 297,110      $ 826,088   

Utility T&D

     97,282        92,761        379,629        363,779   

Canada

     42,586        91,456        232,534        404,589   

Eliminations

     (71     (86     (279     (86
  

 

 

   

 

 

   

 

 

   

 

 

 
     217,660        344,953        908,994        1,594,370   

Operating expenses

        

Oil & Gas

     90,758        172,744        345,060        880,532   

Utility T&D

     101,830        93,986        389,650        357,183   

Canada

     43,377        89,717        231,637        372,662   

Unallocated Corporate Costs

     —          4,029        7,850        12,526   

Gain on sale of subsidiary

     (12,826     —          (12,826     —     

Eliminations

     (71     (86     (279     (86
  

 

 

   

 

 

   

 

 

   

 

 

 
     223,068        360,390        961,092        1,622,817   

Operating income (loss)

        

Oil & Gas

     (12,895     (11,922     (47,950     (54,444

Utility T&D

     (4,548     (1,225     (10,021     6,596   

Canada

     (791     1,739        897        31,927   

Unallocated Corporate Costs

     —          (4,029     (7,850     (12,526

Gain on sale of subsidiary

     12,826        —          12,826        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating loss

     (5,408     (15,437     (52,098     (28,447

Non-operating expenses

        

Interest expense, net

     (6,264     (7,694     (27,203     (30,359

Debt covenant suspension and extinguishment charges

     (2,066     (14,228     (39,178     (15,176

Other, net

     80        77        (101     (397
  

 

 

   

 

 

   

 

 

   

 

 

 
     (8,250     (21,845     (66,482     (45,932
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss from continuing operations before income taxes

     (13,658     (37,282     (118,580     (74,379

Provision (benefit) for income taxes

     (32,867     5,157        (54,031     229   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations

     19,209        (42,439     (64,549     (74,608

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

     58,183        6,472        96,032        (5,219
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 77,392      $ (35,967   $ 31,483      $ (79,827
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

Continuing operations

   $ 0.32      $ (0.86   $ (1.12   $ (1.51

Discontinued operations

     0.96        0.14        1.66        (0.11
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 1.28      $ (0.72   $ 0.54      $ (1.62
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

Continuing operations

   $ 0.31      $ (0.86   $ (1.12   $ (1.51

Discontinued operations

     0.95        0.14        1.66        (0.11
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 1.26      $ (0.72   $ 0.54      $ (1.62
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flow Data

        

Continuing operations

        

Cash provided by (used in)

        

Operating activities

   $ 31,215      $ (43,275   $ 46,009      $ (21,837

Investing activities

     106,829        754        210,423        42,488   

Financing activities

     (94,841     32,921        (177,266     (2,678

Foreign exchange effects

     (2,685     (374     (3,437     (1,057

Discontinued operations

     (29,791     (15,688     (40,170     (37,253

Other Data (Continuing Operations)

        

Weighted average shares outstanding

        

Basic

     60,510        49,630        57,760        49,310   

Diluted

     61,092        49,630        57,760        49,310   

Adjusted EBITDA from continuing operations(1)

   $ (3,634   $ (263   $ (19,461   $ 15,618   

Purchases of property, plant and equipment

     650        2,675        2,705        11,584   

Reconciliation of Non-GAAP Financial Measures

        

Adjusted EBITDA from continuing operations (1)

        

Income (loss) from continuing operations

   $ 19,209      $ (42,439   $ (64,549   $ (74,608

Interest expense, net

     6,264        7,694        27,203        30,359   

Provision (benefit) for income taxes

     (32,867     5,157        (54,031     229   

Depreciation and amortization

     6,154        7,801        27,200        31,873   

Debt covenant suspension and extinguishment charges

     2,066        14,228        39,178        15,176   

Stock based compensation

     2,052        3,926        6,605        12,475   

Restructuring charges

     2,966        1,790        9,475        1,878   

Accounting and legal fees associated with the restatements

     (56     3,413        595        3,413   

Gain on disposal of property and equipment

     (387     (1,833     (2,102     (5,177

Gain on sale of subsidiary

     (12,826     —          (12,826     —     

Impairment of long-lived assets

     3,791        —          3,791        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA from continuing operations(1)

   $ (3,634   $ (263   $ (19,461   $ 15,618   
  

 

 

   

 

 

   

 

 

   

 

 

 


     December 31,
2015
     September 30,
2015
     June 30,
2015
     March 31,
2015
 

Balance Sheet Data

           

Cash and cash equivalents

   $ 58,832       $ 47,837       $ 67,845       $ 38,361   

Working capital

     122,691         156,227         172,568         193,912   

Total assets

     445,608         513,830         557,206         613,203   

Total debt

     95,821         190,416         191,520         206,068   

Stockholders’ equity

     177,400         98,284         118,969         134,353   

Backlog Data (2)

           

Total By Reporting Segment

           

Oil & Gas

   $ 48,810       $ 110,019       $ 87,390       $ 94,903   

Utility T&D

     622,629         689,388         760,501         795,492   

Canada

     155,379         177,259         233,257         167,904   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Backlog

   $ 826,818       $ 976,666       $ 1,081,148       $ 1,058,299   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Backlog By Geographic Area

           

United States

   $ 671,439       $ 799,407       $ 847,891       $ 890,395   

Canada

     155,379         177,259         233,257         167,904   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Backlog

   $ 826,818       $ 976,666       $ 1,081,148       $ 1,058,299   
  

 

 

    

 

 

    

 

 

    

 

 

 

12 Month Backlog

   $ 432,217       $ 510,035       $ 534,433       $ 512,907   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Adjusted EBITDA from continuing operations is defined as income (loss) from continuing operations before interest expense, income tax expense (benefit) and depreciation and amortization, adjusted for items broadly consisting of selected items which management does not consider representative of our ongoing operations and certain non-cash items of the Company. Management uses Adjusted EBITDA from continuing operations as a supplemental performance measure for comparing normalized operating results with corresponding historical periods and with the operational performance of other companies in our industry and for presentations made to analysts, investment banks and other members of the financial community who use this information in order to make investment decisions about us.

Adjusted EBITDA from continuing operations is not a financial measurement recognized under U.S. generally accepted accounting principles, or U.S. GAAP. When analyzing our operating performance, investors should use Adjusted EBITDA from continuing operations in addition to, and not as an alternative for, net income, operating income, or any other performance measure derived in accordance with U.S. GAAP, or as an alternative to cash flow from operating activities as a measure of our liquidity. Because all companies do not use identical calculations, our presentation of Adjusted EBITDA from continuing operations may be different from similarly titled measures of other companies.

(2) Backlog is anticipated contract revenue from uncompleted portions of existing contracts and contracts whose award is reasonably assured. Master Service Agreement (“MSA”) backlog is estimated for the remaining term of the contract. MSA backlog is determined based on historical trends inherent in the MSAs, factoring in seasonal demand and projecting customer needs based on ongoing communications. Backlog is not a term recognized under U.S. GAAP; however, it is a common measurement used in our industry.


Supplemental Schedule of Special Items

 

    Three Months Ended March 31, 2015  
    (In thousands)  
    Oil & Gas     Utility T&D     Canada     Unallocated
Corporate
Costs
    Gain On
Sale Of
Subsidiary
    Eliminations     Consolidated  

Contract revenue before special items (1)

             

Contract revenue, as reported

  $ 76,440      $ 86,986      $ 87,009      $  —        $  —        $ (81   $ 250,354   

Contract revenue, exited subsidiaries (2)

    (35,128     (2,842     —          —          —          —          (37,970
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Contract revenue before special items

  $ 41,312      $ 84,144      $ 87,009      $  —        $  —        $ (81   $ 212,384   

Operating income (loss) before special items (1)

             

Operating loss, as reported

  $ (10,975   $ (4,860   $ (1,515   $ (3,935   $  —        $  —        $ (21,285

Operating (income) loss, exited subsidiaries (2)

    47        (132     —          —          —          —          (85

Other charges

    829        692        692        797        —          —          3,010   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating loss before special items

  $ (10,099   $ (4,300   $ (823   $ (3,138   $  —        $  —        $ (18,360
    Three Months Ended June 30, 2015  
    (In thousands)  
    Oil & Gas     Utility T&D     Canada     Unallocated
Corporate
Costs
    Gain On
Sale Of
Subsidiary
    Eliminations     Consolidated  

Contract revenue before special items (1)

             

Contract revenue, as reported

  $ 61,778      $ 106,439      $ 50,645      $  —        $  —        $ (73   $ 218,789   

Contract revenue, exited subsidiaries (2)

    (14,217     (3,821     —          —          —          —          (18,038
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Contract revenue before special items

  $ 47,561      $ 102,618      $ 50,645      $  —        $  —        $ (73   $ 200,751   

Operating income (loss) before special items (1)

             

Operating income (loss), as reported

  $ (15,751   $ 4,666      $ 381      $ (2,334   $  —        $  —        $ (13,038

Operating (income) loss, exited subsidiaries (2)

    4,843        (962     —          —          —          —          3,881   

Other charges

    2,749        290        208        71        —          —          3,318   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss) before special items

  $ (8,159   $ 3,994      $ 589      $ (2,263   $  —        $  —        $ (5,839
    Three Months Ended September 30, 2015  
    (In thousands)  
    Oil & Gas     Utility T&D     Canada     Unallocated
Corporate
Costs
    Gain On
Sale Of
Subsidiary
    Eliminations     Consolidated  

Contract revenue before special items (1)

             

Contract revenue, as reported

  $ 81,029      $ 88,922      $ 52,294      $  —        $  —        $ (54   $ 222,191   

Contract revenue, exited subsidiaries (2)

    (7,783     (2,943     —          —          —          —          (10,726
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Contract revenue before special items

  $ 73,246      $ 85,979      $ 52,294      $  —        $  —        $ (54   $ 211,465   

Operating income (loss) before special items (1)

             

Operating income (loss), as reported

  $ (8,329   $ (5,279   $ 2,822      $ (1,581   $  —        $  —        $ (12,367

Operating loss, exited subsidiaries (2)

    2,092        7        —          —          —          —          2,099   

Other charges

    3,787        81        11        (7     —          —          3,872   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss) before special items

  $ (2,450   $ (5,191   $ 2,833      $ (1,588   $  —        $  —        $ (6,396
    Three Months Ended December 31, 2015  
    (In thousands)  
    Oil & Gas     Utility T&D     Canada     Unallocated
Corporate
Costs
    Gain On
Sale Of
Subsidiary
    Eliminations     Consolidated  

Contract revenue before special items (1)

             

Contract revenue, as reported

  $ 77,863      $ 97,282      $ 42,586      $  —        $  —        $ (71   $ 217,660   

Contract revenue, exited subsidiaries (2)

    (1,285     (156     —          —          —          —          (1,441
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Contract revenue before special items

  $ 76,578      $ 97,126      $ 42,586      $  —        $  —        $ (71   $ 216,219   

Operating income (loss) before special items (1)

             

Operating income (loss), as reported

  $ (12,895   $ (4,548   $ (791   $  —        $ 12,826      $  —        $ (5,408

Operating loss, exited subsidiaries (2)

    3,046        3        —          —          —          —          3,049   

Other charges

    4,166        3,079        1,024        —          —          —          8,269   

Gain on sale of subsidiary

    —          —          —          —          (12,826     —          (12,826
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss) before special items

  $ (5,683   $ (1,466   $ 233      $  —        $  —        $  —        $ (6,916


    Year Ended December 31, 2015  
    (In thousands)  
    Oil & Gas     Utility T&D     Canada     Unallocated
Corporate
Costs
    Gain On
Sale Of
Subsidiary
    Eliminations     Consolidated  

Contract revenue before special items (1)

             

Contract revenue, as reported

  $ 297,110      $ 379,629      $ 232,534      $  —        $  —        $ (279   $ 908,994   

Contract revenue, exited subsidiaries (2)

    (58,413     (9,762     —          —          —          —          (68,175
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Contract revenue before special items

  $ 238,697      $ 369,867      $ 232,534      $  —        $  —        $ (279   $ 840,819   

Operating income (loss) before special items (1)

             

Operating income (loss), as reported

  $ (47,950   $ (10,021   $ 897      $ (7,850   $ 12,826      $  —        $ (52,098

Operating (income) loss, exited subsidiaries (2)

    10,028        (1,084     —          —          —          —          8,944   

Other charges

    11,531        4,142        1,935        861        —          —          18,469   

Gain on sale of subsidiary

    —          —          —          —          (12,826     —          (12,826
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss) before special items

  $ (26,391   $ (6,963   $ 2,832      $ (6,989   $  —        $  —        $ (37,511

 

    Q1 2015     Q2 2015     Q3 2015     Q4 2015     FY 2015  

Adjusted EBITDA from continuing operations before special items (1)

         

Adjusted EBITDA from continuing operations, as reported

  $ (9,980   $ (4,032   $ (1,815   $ (3,634   $ (19,461

Adjusted EBITDA from continuing operations, exited subsidiaries (2)

    (1,062     2,707        1,477        518        3,640   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA from continuing operations before special items

  $ (11,042   $ (1,325   $ (338   $ (3,116   $ (15,821

 

     December 31, 2015  
     Three Months
Ended
    Year
Ended
 

Income (loss) from continuing operations before special items (1)

    

Income (loss) from continuing operations, as reported

   $ 19,209      $ (64,549

Loss from continuing operations, exited subsidiaries (2)

     3,049        8,944   

Other charges

     8,269        18,469   

Gain on sale of subsidiary

     (12,826     (12,826

Debt covenant suspension and extinguishment charges

     2,066        39,178   

Interest expense, net

     1,154        1,154   

Benefit for income taxes (3)

     (34,664     (57,210
  

 

 

   

 

 

 

Loss from continuing operations before special items

   $ (13,743   $ (66,840
     December 31, 2015  
     Three Months
Ended
    Year
Ended
 

Income (loss) from discontinued operations before special items (1)

    

Income from discontinued operations, as reported

   $ 58,183      $ 96,032   

Other charges

     —          4,405   

Gain on sale of subsidiaries

     (96,427     (152,208

Provision for income taxes (3)

     34,664        57,210   
  

 

 

   

 

 

 

Income (loss) from discontinued operations before special items

   $ (3,580   $ 5,439   

Net loss before special items (1)

   $ (17,323   $ (61,401

Diluted income (loss) per share attributable to Company shareholders before special items (1)

    

Continuing operations

   $ (0.22   $ (1.16

Discontinued operations

     (0.06     0.10   
  

 

 

   

 

 

 
   $ (0.28   $ (1.06
  

 

 

   

 

 

 

 

(1) Contract revenue before special items, operating income (loss) before special items, Adjusted EBITDA from continuing operations before special items, Income (loss) from continuing operations before special items, Income from discontinued operations before special items, Net income before special items and Diluted income (loss) per share attributable to Company shareholders before special items are non-GAAP financial measures that exclude special items that management believes affect the comparison of results for the periods presented. Management also believes results excluding these items are more comparable to estimates provided by securities analysts and therefore are useful in evaluating operational trends of the Company and its performance relative to other construction companies. In addition, Management believes results excluding these items are more indicative of the future operating prospects for Willbros as a consolidated company in 2016.
(2) Contract revenue, exited subsidiaries, operating (income) loss), exited subsidiaries, Adjusted EBITDA from continuing operations, exited subsidiaries and (Income) loss from continuing operations, exited subsidiaries relate to the Company’s historical Downstream Oil & Gas (including Fabrication services sold in the first quarter of 2016), Regional Delivery and Bemis subsidiaries. They are non-GAAP financial measures that exclude special items that management believes affect the comparison of results for the periods presented. Management also believes results excluding these items are more comparable to estimates provided by securities analysts and therefore are useful in evaluating operational trends of the Company and its performance relative to other construction companies. In addition, Management believes results excluding these items are more indicative of the future operating prospects for Willbros as a consolidated company in 2016.
(3) The Company recorded a provision for income taxes on discontinued operations in connection with the 2015 gain on sale of the Professional Services segment and its historical subsidiaries. The provision for income taxes in discontinued operations was fully offset with a benefit for income taxes in continuing operations through the utilization of prior year net operating losses. The net effect on the Company’s consolidated financial results was $-0-