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EX-99.2 - EX-99.2 - Willbros Group, Inc.\NEW\d361411dex992.htm
8-K - FORM 8-K - Willbros Group, Inc.\NEW\d361411d8k.htm

Exhibit 99.1

 

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Willbros Reports Fourth Quarter and Full Year 2016 Results

 

    Twelve-Month Backlog increases $44 million during Q4 2016; significant 2017 awards totaling $151 million

 

    Company obtains covenant amendment from lender

 

    Company to host conference call at 9:00 AM CT, March 08, 2017

HOUSTON, TX, MARCH 7, 2017 — Willbros Group, Inc. (NYSE: WG) today reported fourth quarter and full year 2016 financial results. The company reported a net loss in the fourth quarter of 2016 of $14.2 million, or $(0.23) per diluted share, on revenue of $164.4 million, compared to net income of $77.4 million, or $1.26 per diluted share, on revenue of $217.7 million in the fourth quarter of 2015. For the full year 2016, the company reported a net loss of $47.8 million, or $(0.77) per diluted share, on revenue of $731.7 million, compared to net income of $31.5 million, or $0.54 per diluted share, on revenue of $909.0 million for the full year of 2015. The company’s fourth quarter of 2015 and full year 2015 results include gains on sales of subsidiaries of $109.3 million and $165.0 million, respectively, in relation to the 2015 sale of the company’s Professional Services segment and other subsidiaries.

Michael J. Fournier, President and CEO, commented, “We are beginning to see results in building backlog as both twelve-month and total backlog increased during the fourth quarter and we recently announced $151 million of significant awards so far in 2017. However, our fourth quarter 2016 results which included an additional loss on a Canadian pipeline project, coupled with our outlook for the first quarter of 2017, have required us to obtain an additional amendment to our term loan agreement.”

Continuing Operations

Included in this press release are certain non-GAAP financial measures that exclude special items that we believe affect the comparability of results between periods. These special items include losses associated with businesses and services we have exited as well as other items such as facility and equipment lease abandonment charges and gains or losses on sales of subsidiaries. A detailed listing of these special items and a related reconciliation of each of these special items is included in the accompanying supplemental schedules.

The company reported a loss from continuing operations in the fourth quarter of 2016 of $14.1 million, or $(0.23) per diluted share, on revenue of $164.4 million, compared to income from continuing operations of $19.2 million, or $0.31 per diluted share, on revenue of $217.7 million in the fourth quarter of 2015. The fourth quarter of 2015 income from continuing operations of $19.2 million consists of a $13.7 million loss from continuing operations before income taxes plus an income tax benefit of $32.9 million.

For the full year 2016, the company reported a loss from continuing operations of $43.8 million, or $(0.71) per diluted share, on revenue of $731.7 million, compared to a loss from continuing operations of $64.5 million, or $(1.12) per diluted share, for the full year 2015.

 

 

 

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CONTACT:

Stephen W. Breitigam

VP Investor Relations

Willbros

713-403-8172


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Operating loss for the fourth quarter of 2016 was $12.1 million, compared to an operating loss of $6.3 million in the third quarter of 2016 and $5.4 million in the fourth quarter of 2015. The increase in the operating loss of $5.8 million compared to the third quarter of 2016 was primarily driven by a weather-impacted pipeline job in Canada. For the full year 2016, the company reported an operating loss of $30.7 million compared to a full year 2015 operating loss of $52.1 million.

Operating loss before special items was $9.5 million for the fourth quarter of 2016 compared to a $4.9 million operating loss before special items in the third quarter of 2016. For the full year 2016, the company reported an operating loss before special items of $18.5 million compared to a full year 2015 operating loss before special items of $31.6 million.

Segment Operating Results

The company has three reportable segments: Utility T&D, Oil and Gas, and Canada. During the fourth quarter of 2016, the company implemented a change to its organizational structure such that corporate overhead costs are no longer allocated to each segment. Corporate costs are now identified separately in the attached schedules and previously reported segment information has been revised to conform to this new presentation.

Utility T&D

For the fourth quarter of 2016, the Utility T&D segment reported operating income of $2.1 million on revenue of $105.3 million compared to operating income of $4.3 million on revenue of $106.4 million in the third quarter of 2016. The fourth quarter 2016 operating results were impacted by margin slippage on certain distribution jobs and under-utilization of equipment in the transmission business. For the full year 2016, the segment reported operating income of $15.6 million on revenue of $418.4 million. For the full year 2015, the segment reported operating income of $4.0 million on revenue of $379.6 million.

Oil & Gas

The Oil & Gas segment entered the fourth quarter of 2016 with minimal backlog but was active in addressing bid opportunities. The segment reported an operating loss during the fourth quarter of 2016 of $5.8 million on revenue of $23.3 million, a $1.4 million increase in operating loss from the third quarter of 2016 when the segment generated $33.1 million in revenue. For the full year 2016, the segment reported an operating loss of $16.8 million on revenue of $170.4 million. For the full year 2015, the segment reported an operating loss of $38.0 million on revenue of $297.1 million.

The segment reported an operating loss before special items in the fourth quarter of 2016 of $4.0 million,

 

 

 

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CONTACT:

Stephen W. Breitigam

VP Investor Relations

Willbros

713-403-8172


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a $0.7 million increase in operating loss before special items from the third quarter of 2016. For the full year 2016, the segment reported an operating loss before special items of $9.6 million, compared to a full year 2015 operating loss before special items of $12.3 million.

Canada

For the fourth quarter of 2016, the Canada segment generated an operating loss of $1.8 million on revenue of $35.8 million, compared to an operating loss of $0.3 million on revenue of $35.4 million in the third quarter of 2016. The fourth quarter of 2016 operating loss included a $5.7 million loss on a pipeline project that was adversely impacted by weather conditions. For the full year 2016, the segment reported an operating loss of $0.7 million on revenue of $143.1 million. For the full year 2015, the segment reported operating income of $10.2 million on revenue of $232.5 million.

Corporate

The company continually assesses its cost structure and has taken action in recent years to reduce corporate overhead costs to better align with its lower revenue. For the full year 2016, the company recorded $28.8 million of corporate overhead costs compared to $41.1 million of corporate overhead costs for the full year 2015.

For the full year 2016, the Company recorded $25.2 million of corporate overhead costs before special items compared to $35.1 million of corporate overhead before special items for the full year 2015.

Backlog

At December 31, 2016, the company reported total backlog of $792.5 million compared to $646.6 million at September 30, 2016. Twelve-month backlog of $419.9 million at December 31, 2016 increased $44.1 million from September 30, 2016. All of the increase in twelve-month backlog is attributable to additions in the Utility T&D segment.

During the first quarter of 2017 we have received significant awards across all three segments, totaling $151 million.

Liquidity

On March 3, 2017, the company amended its Term Loan to extend its covenant holiday through June 30, 2017 and put in place less stringent financial covenants for the remainder of 2017.

Total liquidity (defined as cash and cash equivalents plus revolver availability) was $66.7 million at December 31, 2016, a decrease of $4.5 million from the end of the third quarter of 2016. Cash and cash equivalents totaled $41.4 million at December 31, 2016 and there were no revolver borrowings at December 31, 2016.

 

 

 

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CONTACT:

Stephen W. Breitigam

VP Investor Relations

Willbros

713-403-8172


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At December 31, 2016, the principal amount due on the Term Loan remained unchanged from the prior quarter at $92.2 million.

Conference Call

In conjunction with this release, Willbros has scheduled a conference call, which will be broadcast live over the Internet, on Wednesday, March 08, 2017 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time).

 

What:    Willbros Fourth Quarter and Full Year 2016 Earnings Conference Call
When:    Wednesday, March 08, 2017 - 10:00 a.m. Eastern Time (9:00 a.m. Central Time)
How:    Live via phone - By dialing 1-888-317-6016 (U.S. Toll Free), 1-855-669-9657 (Canada Toll Free) or 1-412-317-6016 (International) a few minutes prior to the start time and asking for the Willbros Group, Inc. 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 15, 2017 and may be accessed by calling 1-877-344-7529 (U.S. Toll Free), 1-855-669-9658 (Canada Toll Free) or 1-412-317-0088 (International) using Replay Access Code 10102327. 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

 

 

 

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CONTACT:

Stephen W. Breitigam

VP Investor Relations

Willbros

713-403-8172


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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     Year Ended  
     December 31,     December 31,  
     2016     2015     2016     2015  

Income Statement

    

Contract revenue

    

Oil & Gas

   $ 23,274     $ 77,863     $ 170,448     $ 297,110  

Utility T&D

     105,321       97,282       418,387       379,629  

Canada

     35,797       42,586       143,140       232,534  

Eliminations

     —         (71     (290     (279
  

 

 

   

 

 

   

 

 

   

 

 

 
     164,392       217,660       731,685       908,994  

Operating expenses

    

Oil & Gas

     29,038       87,659       187,231       335,134  

Utility T&D

     103,236       97,611       402,820       375,669  

Canada

     37,561       40,793       143,790       222,308  

Corporate

     6,697       9,902       28,795       41,086  

Gain on sale of subsidiary

     —         (12,826     —         (12,826

Eliminations

     —         (71     (290     (279
  

 

 

   

 

 

   

 

 

   

 

 

 
     176,532       223,068       762,346       961,092  

Operating income (loss)

    

Oil & Gas

     (5,764     (9,796     (16,783     (38,024

Utility T&D

     2,085       (329     15,567       3,960  

Canada

     (1,764     1,793       (650     10,226  

Corporate

     (6,697     (9,902     (28,795     (41,086

Gain on sale of subsidiary

     —         12,826       —         12,826  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating loss

     (12,140     (5,408     (30,661     (52,098

Non-operating expenses

    

Interest expense

     (3,543     (6,278     (13,976     (27,254

Interest income

     8       14       451       51  

Debt covenant suspension and extinguishment charges

     —         (2,066     (63     (39,178

Other, net

     (63     80       (63     (101
  

 

 

   

 

 

   

 

 

   

 

 

 
     (3,598     (8,250     (13,651     (66,482
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss from continuing operations before income taxes

     (15,738     (13,658     (44,312     (118,580

Benefit for income taxes

     (1,676     (32,867     (530     (54,031
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations

     (14,062     19,209       (43,782     (64,549

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

     (141     58,183       (3,977     96,032  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ (14,203   $ 77,392     $ (47,759   $ 31,483  
  

 

 

   

 

 

   

 

 

   

 

 

 

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

    

Continuing operations

   $ (0.23   $ 0.32     $ (0.71   $ (1.12

Discontinued operations

     —         0.96       (0.06     1.66  
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ (0.23   $ 1.28     $ (0.77   $ 0.54  
  

 

 

   

 

 

   

 

 

   

 

 

 

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

    

Continuing operations

   $ (0.23   $ 0.31     $ (0.71   $ (1.12

Discontinued operations

     —         0.95       (0.06     1.66  
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ (0.23   $ 1.26     $ (0.77   $ 0.54  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flow Data

    

Continuing operations

    

Cash provided by (used in)

    

Operating activities

   $ (3,760   $ 31,553     $ (11,992   $ 46,009  

Investing activities

     4,204       106,829       10,843       210,423  

Financing activities

     (45     (95,179     (8,615     (177,266

Foreign exchange effects

     (649     (2,685     (29     (3,437

Discontinued operations

     (589     (29,791     (7,619     (40,170

Other Data

    

Weighted average shares outstanding

    

Basic

     61,683       60,510       61,365       57,760  

Diluted

     61,683       61,092       61,365       57,760  

Adjusted EBITDA from continuing operations(1)

   $ (6,414   $ (3,634   $ (2,755   $ (19,461

Purchases of property, plant and equipment

     1,266       650       3,794       2,705  

Reconciliation of Non-GAAP Financial Measures

    

Adjusted EBITDA from continuing operations (1)

    

Income (loss) from continuing operations

   $ (14,062   $ 19,209     $ (43,782   $ (64,549

Interest expense

     3,543       6,278       13,976       27,254  

Interest income

     (8     (14     (451     (51

Benefit for income taxes

     (1,676     (32,867     (530     (54,031

Depreciation and amortization

     5,225       6,154       21,919       27,200  

Debt covenant suspension and extinguishment charges

     —         2,066       63       39,178  

Stock based compensation

     858       2,052       4,127       6,605  

Restructuring and reorganization costs

     346       2,966       4,933       9,475  

Accounting and legal fees associated with the restatements

     18       (56     (24     595  

(Gain) loss on disposal of equipment

     (585     2,870       (3,436     1,155  

Impairment of intangible assets

     —         534       —         534  

Gain on sale of subsidiary

     —         (12,826     —         (12,826

Fort McMurray wildfire related costs (income)

     (73     —         450       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA from continuing operations(1)

   $ (6,414   $ (3,634   $ (2,755   $ (19,461
  

 

 

   

 

 

   

 

 

   

 

 

 


     December 31,
2016
     September 30,
2016
     June 30,
2016
     March 31,
2016
 

Balance Sheet Data

           

Cash and cash equivalents

   $ 41,420      $ 42,259      $ 48,726      $ 51,686  

Working capital

     89,323        96,709        105,443        106,304  

Total assets

     363,036        382,828        416,464        431,372  

Total debt

     89,189        88,672        90,589        90,617  

Stockholders’ equity

     135,137        148,974        160,324        165,682  

Backlog Data (2)

           

Total By Reporting Segment

           

Oil & Gas

   $ 28,827      $ 23,590      $ 34,479      $ 71,314  

Utility T&D

     656,838        535,014        535,218        595,620  

Canada

     106,793        88,025        102,302        116,352  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Backlog

   $ 792,458      $ 646,629      $ 671,999      $ 783,286  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Backlog By Geographic Area

           

United States

   $ 685,665      $ 558,604      $ 569,697      $ 666,934  

Canada

     106,793        88,025        102,302        116,352  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Backlog

   $ 792,458      $ 646,629      $ 671,999      $ 783,286  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Backlog exclusive of Tank Services

           

Total Backlog, as reported

   $ 792,458      $ 646,629      $ 671,999      $ 783,286  

Tank Services Total Backlog

     15,189        7,435        5,338        9,716  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Backlog, exclusive of Tank Services

   $ 777,269      $ 639,194      $ 666,661      $ 773,570  
  

 

 

    

 

 

    

 

 

    

 

 

 

12 Month Backlog by Reporting Segment

           

Oil & Gas

   $ 28,827      $ 23,590      $ 34,479      $ 69,514  

Utility T&D

     349,998        289,758        269,758        296,278  

Canada

     41,041        62,400        68,995        91,503  
  

 

 

    

 

 

    

 

 

    

 

 

 

12 Month Backlog

   $ 419,866      $ 375,748      $ 373,232      $ 457,295  
  

 

 

    

 

 

    

 

 

    

 

 

 

12 Month Backlog By Geographic Area

           

United States

   $ 378,825      $ 313,348      $ 304,237      $ 365,792  

Canada

     41,041        62,400        68,995        91,503  
  

 

 

    

 

 

    

 

 

    

 

 

 

12 Month Backlog

   $ 419,866      $ 375,748      $ 373,232      $ 457,295  
  

 

 

    

 

 

    

 

 

    

 

 

 

12 Month Backlog exclusive of Tank Services

           

12 Month Backlog, as reported

   $ 419,866      $ 375,748      $ 373,232      $ 457,295  

Tank Services 12 Month Backlog

     15,189        7,435        5,338        9,716  
  

 

 

    

 

 

    

 

 

    

 

 

 

12 Month Backlog, exclusive of Tank Services

   $ 404,677      $ 368,313      $ 367,894      $ 447,579  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Adjusted EBITDA from continuing operations is defined as income (loss) from continuing operations before interest expense (income), 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, 2016  
     (In thousands)  
     Oil & Gas     Utility T&D     Canada     Corporate     Eliminations     Consolidated  

Contract revenue before special items (1)

            

Contract revenue, as reported

   $ 59,335     $ 97,289     $ 42,492     $ —       $ (86   $ 199,030  

Contract revenue, exited subsidiaries (2)

     (12,723     —         —         —         —         (12,723
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Contract revenue before special items

   $ 46,612     $ 97,289     $ 42,492     $ —       $ (86   $ 186,307  

Operating income (loss) before special items (1)

            

Operating income (loss), as reported

   $ (5,747   $ 4,899     $ 824     $ (9,437   $ —       $ (9,461

Operating loss, exited subsidiaries (2)

     1,760       —         —         —         —         1,760  

Other charges

     1,038       —         —         2,650       —         3,688  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss) before special items

   $ (2,949   $ 4,899     $ 824     $ (6,787   $ —       $ (4,013
     Three Months Ended June 30, 2016  
     (In thousands)  
     Oil & Gas     Utility T&D     Canada     Corporate     Eliminations     Consolidated  

Contract revenue before special items (1)

            

Contract revenue, as reported

   $ 54,739     $ 109,355     $ 29,496     $ —       $ (148   $ 193,442  

Contract revenue, exited subsidiaries (2)

     (6,330     —         —         —         —         (6,330
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Contract revenue before special items

   $ 48,409     $ 109,355     $ 29,496     $ —       $ (148   $ 187,112  

Operating income (loss) before special items (1)

            

Operating income (loss), as reported

   $ (889   $ 4,321     $ 631     $ (6,804   $ —       $ (2,741

Operating loss, exited subsidiaries (2)

     1,251       —         —         —         —         1,251  

Fort McMurray wildfire related costs

     —         —         523       —         —         523  

Other charges (income)

     292       12       660       (25     —         939  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss) before special items

   $ 654     $ 4,333     $ 1,814     $ (6,829   $ —       $ (28
     Three Months Ended September 30, 2016  
     (In thousands)  
     Oil & Gas     Utility T&D     Canada     Corporate     Eliminations     Consolidated  

Contract revenue before special items (1)

            

Contract revenue, as reported

   $ 33,100     $ 106,422     $ 35,355     $ —       $ (56   $ 174,821  

Contract revenue, exited subsidiaries (2)

     (4,482     —         —         —         —         (4,482
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Contract revenue before special items

   $ 28,618     $ 106,422     $ 35,355     $ —       $ (56   $ 170,339  

Operating income (loss) before special items (1)

            

Operating income (loss), as reported

   $ (4,383   $ 4,262     $ (341   $ (5,857   $ —       $ (6,319

Operating loss, exited subsidiaries (2)

     855       —         —         —         —         855  

Other charges (income)

     245       (15     313       (24     —         519  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss) before special items

   $ (3,283   $ 4,247     $ (28   $ (5,881   $ —       $ (4,945
     Three Months Ended December 31, 2016  
     (In thousands)  
     Oil & Gas     Utility T&D     Canada     Corporate     Eliminations     Consolidated  

Contract revenue before special items (1)

            

Contract revenue, as reported

   $ 23,274     $ 105,321     $ 35,797     $ —       $ —       $ 164,392  

Contract revenue, exited subsidiaries (2)

     (7,018     —         —         —         —         (7,018
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Contract revenue before special items

   $ 16,256     $ 105,321     $ 35,797     $ —       $ —       $ 157,374  

Operating income (loss) before special items (1)

            

Operating income (loss), as reported

   $ (5,764   $ 2,085     $ (1,764   $ (6,697   $ —       $ (12,140

Operating loss, exited subsidiaries (2)

     1,672       —         —         —         —         1,672  

Fort McMurray wildfire related income

     —         —         (73     —         —         (73

Other charges

     84       —         31       949       —         1,064  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss) before special items

   $ (4,008   $ 2,085     $ (1,806   $ (5,748   $ —       $ (9,477


     Year Ended December 31, 2016  
     (In thousands)  
     Oil & Gas     Utility T&D     Canada     Corporate (4)     Eliminations     Consolidated  

Contract revenue before special items (1)

            

Contract revenue, as reported

   $ 170,448     $ 418,387     $ 143,140     $ —       $ (290   $ 731,685  

Contract revenue, exited subsidiaries (2)

     (30,553     —         —         —         —         (30,553
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Contract revenue before special items

   $ 139,895     $ 418,387     $ 143,140     $ —       $ (290   $ 701,132  

Operating income (loss) before special items (1)

            

Operating income (loss), as reported

   $ (16,783   $ 15,567     $ (650   $ (28,795   $ —       $ (30,661

Operating loss, exited subsidiaries (2)

     5,538       —         —         —         —         5,538  

Fort McMurray wildfire related costs

     —         —         450       —         —         450  

Other charges (income)

     1,659       (3     1,004       3,550       —         6,210  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss) before special items

   $ (9,586   $ 15,564     $ 804     $ (25,245   $ —       $ (18,463
    

 

Q1 2016

    Q2 2016     Q3 2016     Q4 2016     YE 2016        

Covenant EBITDA from continuing operations (3)

            

Loss from continuing operations

   $ (13,298   $ (5,761   $ (10,661   $ (14,062   $ (43,782  

Interest expense

     3,567       3,302       3,564       3,543       13,976    

Interest income

     (20     (411     (12     (8     (451  

Provision (benefit) for income taxes

     167       187       792       (1,676     (530  

Depreciation and amortization

     5,688       5,621       5,385       5,225       21,919    

Debt covenant suspension and extinguishment charges

     63       —         —         —         63    

Stock-based compensation

     1,293       1,108       868       858       4,127    

Restructuring and reorganization costs

     3,352       927       308       346       4,933    

Accounting and legal fees associated with the restatements

     35       (81     4       18       (24  

Fort McMurray wildfire related costs (income)

     —         523       —         (73     450    

Loss on sale of assets outside of normal course of business

     123       —         207       700       1,030    

Changes in project loss provision

     (456     (186     1,470       1,541       2,369    

Letter of credit fees

     356       342       349       356       1,403    

Provision for (recovery of) bad debt

     (22     62       66       178       284    

Exit of Tank Services

     1,015       1,364       773       1,486       4,638    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Covenant EBITDA from continuing operations

   $ 1,863     $ 6,997     $ 3,113     $ (1,568   $ 10,405    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   
    

 

Q1 2016

    Q2 2016     Q3 2016     Q4 2016     YE 2016        

Loss from continuing operations before special items (1)

            

Loss from continuing operations, as reported

   $ (13,298   $ (5,761   $ (10,661   $ (14,062   $ (43,782  

Loss from continuing operations, exited subsidiaries (2)

     1,760       1,251       855       1,672       5,538    

Fort McMurray wildfire related costs (income)

     —         523       —         (73     450    

Other charges

     3,688       939       519       1,064       6,210    

Debt covenant suspension and extinguishment charges

     63       —         —         —         63    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Loss from continuing operations before special items

   $ (7,787   $ (3,048   $ (9,287   $ (11,399   $ (31,521  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   
  

 

 

 

Q1 2016

 

 

    Q2 2016       Q3 2016       Q4 2016       YE 2016    

Loss from discontinued operations before special items (1)

            

Loss from discontinued operations, as reported

   $ (1,853   $ (658   $ (1,325   $ (141   $ (3,977  

Other charges (income)

     —         (1,162     102       —         (1,060  

Loss on sale of subsidiaries

     1,545       911       —         —         2,456    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Loss from discontinued operations before special items

   $ (308   $ (909   $ (1,223   $ (141   $ (2,581  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   
    

 

Q1 2016

    Q2 2016     Q3 2016     Q4 2016     YE 2016    

Net loss before special items (1)

            

Net loss, as reported

   $ (15,151   $ (6,419   $ (11,986   $ (14,203   $ (47,759  

Loss from continuing operations, exited subsidiaries (2)

     1,760       1,251       855       1,672       5,538    

Fort McMurray wildfire related costs (income)

     —         523       —         (73     450    

Other charges (income)

     3,688       (223     621       1,064       5,150    

Debt covenant suspension and extinguishment charges

     63       —         —         —         63    

Loss on sale of subsidiaries

     1,545       911       —         —         2,456    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Net loss before special items

   $ (8,095   $ (3,957   $ (10,510   $ (11,540   $ (34,102  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

(1) Contract revenue before special items, corporate overhead costs before special items, operating income (loss) before special items, loss from continuing operations before special items, loss from discontinued operations before special items and net loss 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 2017.
(2) Contract revenue, exited subsidiaries, operating loss, exited subsidiaries and loss from continuing operations, exited subsidiaries relate to the Company’s historical Tanks and Downstream Oil & Gas 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 2017.
(3) Covenant EBITDA from continuing operations is a non-GAAP financial measure that conforms to the definition of Consolidated EBITDA in the Company’s 2014 Term Credit Agreement which includes certain special items. Management uses Covenant EBITDA from continuing operations to determine the Company’s compliance with certain financial covenants under the 2014 Term Credit Agreement.
(4) When presenting these numbers in the press release, we use the terminology ‘corporate overhead costs’ and ‘corporate overhead costs before special items’.


Supplemental Schedule of Special Items

 

     Three Months Ended March 31, 2015  
     (In thousands)  
     Oil & Gas     Utility T&D     Canada      Corporate     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)

     (42,066     (2,842     —          —         —         —         (44,908
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Contract revenue before special items

   $ 34,374     $ 84,144     $ 87,009      $ —       $ —       $ (81   $ 205,446  

Operating income (loss) before special items (1)

               

Operating income (loss), as reported

   $ (8,247   $ (1,443   $ 1,854      $ (13,449   $ —       $ —       $ (21,285

Operating (income) loss, exited subsidiaries (2)

     1,525       (132     —          —         —         —         1,393  

Other charges

     233       —         —          2,777       —         —         3,010  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss) before special items

   $ (6,489   $ (1,575   $ 1,854      $ (10,672   $ —       $ —       $ (16,882
     Three Months Ended June 30, 2015  
     (In thousands)  
     Oil & Gas     Utility T&D     Canada      Corporate     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)

     (26,532     (3,821     —          —         —         —         (30,353
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Contract revenue before special items

   $ 35,246     $ 102,618     $ 50,645      $ —       $ —       $ (73   $ 188,436  

Operating income (loss) before special items (1)

               

Operating income (loss), as reported

   $ (13,742   $ 7,938     $ 1,736      $ (8,970   $ —       $ —       $ (13,038

Operating (income) loss, exited subsidiaries (2)

     4,800       (962     —          —         —         —         3,838  

Other charges

     2,639       —         201        478       —         —         3,318  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss) before special items

   $ (6,303   $ 6,976     $ 1,937      $ (8,492   $ —       $ —       $ (5,882
     Three Months Ended September 30, 2015  
     (In thousands)  
     Oil & Gas     Utility T&D     Canada      Corporate     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)

     (20,749     (2,943     —          —         —         —         (23,692
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Contract revenue before special items

   $ 60,280     $ 85,979     $ 52,294      $ —       $ —       $ (54   $ 198,499  

Operating income (loss) before special items (1)

               

Operating income (loss), as reported

   $ (6,239   $ (2,206   $ 4,843      $ (8,765   $ —       $ —       $ (12,367

Operating loss, exited subsidiaries (2)

     3,214       7       —          —         —         —         3,221  

Other charges

     3,667       —         —          205       —         —         3,872  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss) before special items

   $ 642     $ (2,199   $ 4,843      $ (8,560   $ —       $ —       $ (5,274
     Three Months Ended December 31, 2015  
     (In thousands)  
     Oil & Gas     Utility T&D     Canada      Corporate     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)

     (17,050     (156     —          —         —         —         (17,206
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Contract revenue before special items

   $ 60,813     $ 97,126     $ 42,586      $ —       $ —       $ (71   $ 200,454  

Operating income (loss) before special items (1)

               

Operating income (loss), as reported

   $ (9,796   $ (329   $ 1,793      $ (9,902   $ 12,826     $ —       $ (5,408

Operating loss, exited subsidiaries (2)

     6,382       3       —          —         —         —         6,385  

Gain on sale of subsidiary

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

Other charges

     3,313       2,002       423        2,531       —         —         8,269  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss) before special items

   $ (101   $ 1,676     $ 2,216      $ (7,371   $ —       $ —       $ (3,580


     Year Ended December 31, 2015  
     (In thousands)  
     Oil & Gas     Utility T&D     Canada     Corporate (4)     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)

     (106,397     (9,762     —         —         —         —         (116,159
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Contract revenue before special items

   $ 190,713     $ 369,867     $ 232,534     $ —       $ —       $ (279   $ 792,835  

Operating income (loss) before special items (1)

              

Operating income (loss), as reported

   $ (38,024   $ 3,960     $ 10,226     $ (41,086   $ 12,826     $ —       $ (52,098

Operating (income) loss, exited subsidiaries (2)

     15,921       (1,084     —         —         —         —         14,837  

Gain on sale of subsidiary

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

Other charges

     9,852       2,002       624       5,991       —         —         18,469  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss) before special items

   $ (12,251   $ 4,878     $ 10,850     $ (35,095   $ —       $ —       $ (31,618
     Q1 2015     Q2 2015     Q3 2015     Q4 2015     YE 2015        

Loss from continuing operations before special items (1)

            

Income (loss) from continuing operations, as reported

   $ (44,944   $ (19,403   $ (19,411   $ 19,209     $ (64,549  

Loss from continuing operations, exited subsidiaries (2)

     1,393       3,838       3,221       6,385       14,837    

Gain on sale of subsidiary

     —         —         —         (12,826     (12,826  

Other charges

     3,010       3,318       3,872       8,269       18,469    

Debt covenant suspension and extinguishment charges

     35,869       312       931       2,066       39,178    

Interest expense

     —         —         —         1,154       1,154    

Benefit for income taxes (3)

     (20,921     (308     (1,317     (34,664     (57,210  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Loss from continuing operations before special items

   $ (25,593   $ (12,243   $ (12,704   $ (10,407   $ (60,947  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   
    

 

Q1 2015

    Q2 2015     Q3 2015     Q4 2015     YE 2015    

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

            

Income from discontinued operations, as reported

   $ 35,120     $ 517     $ 2,212     $ 58,183     $ 96,032    

Other charges

     940       1,417       2,048       —         4,405    

(Gain) loss on sale of subsidiaries

     (58,549     2,177       591       (96,427     (152,208  

Provision for income taxes (3)

     20,921       308       1,317       34,664       57,210    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Income (loss) from discontinued operations before special items

   $ (1,568   $ 4,419     $ 6,168     $ (3,580   $ 5,439    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   
    

 

Q1 2015

    Q2 2015     Q3 2015     Q4 2015     YE 2015    

Net loss before special items (1)

            

Net income (loss), as reported

   $ (9,824   $ (18,886   $ (17,199   $ 77,392     $ 31,483    

Loss from continuing operations, exited subsidiaries (2)

     1,393       3,838       3,221       6,385       14,837    

(Gain) loss on sale of subsidiaries

     (58,549     2,177       591       (109,253     (165,034  

Other charges

     3,950       4,735       5,920       8,269       22,874    

Debt covenant suspension and extinguishment charges

     35,869       312       931       2,066       39,178    

Interest expense, net

     —         —         —         1,154       1,154    

Provision (benefit) for income taxes (3)

     —         —         —         —         —      
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Net loss before special items

   $ (27,161   $ (7,824   $ (6,536   $ (13,987   $ (55,508  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

(1) Contract revenue before special items, corporate overhead before special items, operating income (loss) before special items, loss from continuing operations before special items, income (loss) from discontinued operations before special items and net loss 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 2017.
(2) Contract revenue, exited subsidiaries, operating income (loss), exited subsidiaries and income (loss) from continuing operations, exited subsidiaries relate to the Company’s historical Tanks, Regional Delivery, Bemis and Downstream Oil & Gas 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 2017.
(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-.
(4) When presenting these numbers in the press release, we use the terminology ‘corporate overhead costs’ and ‘corporate overhead costs before special items’.