Click here to close now.



Welcome!

Microsoft Cloud Authors: Dana Gardner, David Bermingham, Jayaram Krishnaswamy, Pat Romanski, Adine Deford

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.

@ThingsExpo Stories
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Most people haven’t heard the word, “gamification,” even though they probably, and perhaps unwittingly, participate in it every day. Gamification is “the process of adding games or game-like elements to something (as a task) so as to encourage participation.” Further, gamification is about bringing game mechanics – rules, constructs, processes, and methods – into the real world in an effort to engage people. In his session at @ThingsExpo, Robert Endo, owner and engagement manager of Intrepid D...
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Learn how IoT, cloud, social networks and last but not least, humans, can be integrated into a seamless integration of cooperative organisms both cybernetic and biological. This has been enabled by recent advances in IoT device capabilities, messaging frameworks, presence and collaboration services, where devices can share information and make independent and human assisted decisions based upon social status from other entities. In his session at @ThingsExpo, Michael Heydt, founder of Seamless...
The IoT's basic concept of collecting data from as many sources possible to drive better decision making, create process innovation and realize additional revenue has been in use at large enterprises with deep pockets for decades. So what has changed? In his session at @ThingsExpo, Prasanna Sivaramakrishnan, Solutions Architect at Red Hat, discussed the impact commodity hardware, ubiquitous connectivity, and innovations in open source software are having on the connected universe of people, thi...
WebRTC: together these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at WebRTC Summit, Cary Bran, VP of Innovation and New Ventures at Plantronics and PLT Labs, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it may enable, complement or entirely transform.
There are so many tools and techniques for data analytics that even for a data scientist the choices, possible systems, and even the types of data can be daunting. In his session at @ThingsExpo, Chris Harrold, Global CTO for Big Data Solutions for EMC Corporation, showed how to perform a simple, but meaningful analysis of social sentiment data using freely available tools that take only minutes to download and install. Participants received the download information, scripts, and complete end-t...
For manufacturers, the Internet of Things (IoT) represents a jumping-off point for innovation, jobs, and revenue creation. But to adequately seize the opportunity, manufacturers must design devices that are interconnected, can continually sense their environment and process huge amounts of data. As a first step, manufacturers must embrace a new product development ecosystem in order to support these products.
Manufacturing connected IoT versions of traditional products requires more than multiple deep technology skills. It also requires a shift in mindset, to realize that connected, sensor-enabled “things” act more like services than what we usually think of as products. In his session at @ThingsExpo, David Friedman, CEO and co-founder of Ayla Networks, discussed how when sensors start generating detailed real-world data about products and how they’re being used, smart manufacturers can use the dat...
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT’s direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...