Willbros Reports Third Quarter 2016 Results HOUS
Post# of 301275
HOUSTON, Oct. 28, 2016 (GLOBE NEWSWIRE) -- Willbros Group, Inc. (NYSE: WG ) today reported a $29.7 million loss from continuing operations, or $(0.49) per share, for the nine months ended September 30, 2016, compared to an $83.8 million loss from continuing operations, or $($1.47) per share, for the nine months ended September 30, 2015. Adjusted EBITDA from continuing operations was $3.7 million for the nine months ended September 30, 2016 compared to $(15.8) million for the nine months ended September 30, 2015.
For the third quarter of 2016, we reported a loss from continuing operations of $10.7 million, or $(0.17) per share, on revenue of $174.8 million, compared to a loss from continuing operations of $19.4 million, or $(0.32) per share, in the third quarter of 2015 on revenue of $222.2 million. Adjusted EBITDA from continuing operations was approximately $0.3 million for the third quarter of 2016 compared to $(1.8) million for the third quarter of 2015. Loss from continuing operations before special items was $10.1 million for the third quarter of 2016 compared to $13.8 million for the third quarter of 2015.
An operating loss of $6.3 million in the third quarter of 2016 compares to an operating loss of $12.4 million in the third quarter of 2015, a $6.1 million improvement. Operating results for the third quarter of 2016 include project losses on two jobs totaling approximately $4.7 million. Other charges incurred during the third quarter of 2016 totaled $0.5 million related to equipment impairment and employee severance costs. Excluding these other charges, the operating loss before special items was $5.8 million in the third quarter of 2016.
Michael J. Fournier, President and CEO, commented, “Year-to-date results represent a significant improvement over the prior year as a result of our continuing efforts to align our indirect and overhead costs to market conditions. Our third quarter results were impacted by adverse weather conditions and cost overruns on two projects. We may recover some of these costs through future change orders.
“Our 12-month backlog remained relatively flat compared to June 30, 2016 primarily due to additions to our MSA contracts in the UTD segment. We are seeing an increase in our bidding activity in our Oil and Gas segment and remain optimistic in winning a major MSA renewal in our Canadian segment. Building backlog remains our top priority throughout the organization.”
Included in this press release are certain non-GAAP financial measures, including operating income (loss), income (loss) from continuing operations, and Adjusted EBITDA from continuing operations. A related reconciliation of each of these non-GAAP measures is included in the accompanying schedules.
Backlog
At September 30, 2016, Willbros reported total backlog of $646.6 million, a decrease of $25.4 million from the June 30, 2016 balance. Twelve month backlog of $375.7 million at September 30, 2016 reflects a small increase from the $373.2 million reported at June 30, 2016. A substantial portion of the total backlog decline is attributable to the expiration of existing multi-year MSA contracts. We will rebid these MSA’s as they come up for renewal but we do not include these new contracts in backlog until they are signed. The twelve month backlog is being impacted by Canadian MSA contracts that expire at the end of 2016 and early 2017.
Segment Operating Results
Utility T&D Utility T&D generated revenue of approximately $106.4 million in the third quarter of 2016, a slight decrease from the second quarter of 2016. Despite recording a large share of corporate costs, the segment generated operating income of $0.6 million, a $1.1 million improvement over the second quarter of 2016. Operating income before special items of $0.7 million reflected a similar $1.1 million improvement over the second quarter of 2016.
Oil & Gas In the third quarter of 2016, the Oil & Gas segment generated revenue of $33.1 million, a $21.6 million decrease when compared to the second quarter of 2016. The segment reported an operating loss of $5.4 million in the third quarter of 2016, representing a $3.1 million increase over the second quarter of 2016 operating loss. The third quarter of 2016 operating loss was inclusive of one project loss of $3.4 million. The segment reported an operating loss before special items of $5.2 million, or a $3.0 million increase from the second quarter of 2016 operating loss before special items.
Canada The Canada segment generated revenue of $35.4 million for the third quarter of 2016, a $5.9 million increase over the second quarter of 2016. The segment reported an operating loss of $1.5 million in the third quarter of 2016, representing a $1.6 million reduction over the second quarter of 2016 operating income. The third quarter of 2016 operating loss was inclusive of one project loss of $1.3 million. The segment reported operating loss before special items of $1.2 million, or a $2.4 million reduction from the second quarter of 2016 operating income before special items.
Liquidity and Debt
Total liquidity (defined as cash and cash equivalents plus revolver availability) at September 30, 2016 was $71.2 million, a decrease of $13.3 million from the end of the second quarter of 2016. Cash and cash equivalents totaled $42.3 million at September 30, 2016 and there were no revolver borrowings at September 30, 2016.
At September 30, 2016, the principal amount due on the term loan remained unchanged from the prior quarter at $92.2 million.
Guidance
Van Welch, Willbros Chief Financial Officer, commented, “We now expect revenue for 2016 to range between $725 million to $750 million.”
Conference Call
In conjunction with this release, Willbros has scheduled a conference call, which will be broadcast live over the Internet, on Monday, October 31, 2016 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time).
| What: | Willbros Third Quarter 2016 Earnings Conference Call | |
| When: | Monday, October 31, 2016 - 10 a.m. Eastern 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. | |
| Live over the internet - By logging on to the website at the following address: http://www.willbros.com . The webcast can be accessed from the investor relations home page. |
A replay will be available through November 8, 2016 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 10095345. 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 and 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
| WILLBROS GROUP, INC. | ||||||||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
| Income Statement | ||||||||||||||||||||||
| Contract revenue | ||||||||||||||||||||||
| Oil & Gas | $ | 33,100 | $ | 81,029 | $ | 147,174 | $ | 219,247 | ||||||||||||||
| Utility T&D | 106,422 | 88,922 | 313,066 | 282,347 | ||||||||||||||||||
| Canada | 35,355 | 52,294 | 107,343 | 189,948 | ||||||||||||||||||
| Eliminations | (56 | ) | (54 | ) | (290 | ) | (208 | ) | ||||||||||||||
| 174,821 | 222,191 | 567,293 | 691,334 | |||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||
| Oil & Gas | 38,501 | 89,358 | 163,978 | 254,302 | ||||||||||||||||||
| Utility T&D | 105,793 | 94,201 | 311,738 | 287,820 | ||||||||||||||||||
| Canada | 36,902 | 49,472 | 110,388 | 188,260 | ||||||||||||||||||
| Unallocated Corporate Costs | - | 1,581 | - | 7,850 | ||||||||||||||||||
| Eliminations | (56 | ) | (54 | ) | (290 | ) | (208 | ) | ||||||||||||||
| 181,140 | 234,558 | 585,814 | 738,024 | |||||||||||||||||||
| Operating income (loss) | ||||||||||||||||||||||
| Oil & Gas | (5,401 | ) | (8,329 | ) | (16,804 | ) | (35,055 | ) | ||||||||||||||
| Utility T&D | 629 | (5,279 | ) | 1,328 | (5,473 | ) | ||||||||||||||||
| Canada | (1,547 | ) | 2,822 | (3,045 | ) | 1,688 | ||||||||||||||||
| Unallocated Corporate Costs | - | (1,581 | ) | - | (7,850 | ) | ||||||||||||||||
| Operating loss | (6,319 | ) | (12,367 | ) | (18,521 | ) | (46,690 | ) | ||||||||||||||
| Non-operating expenses | ||||||||||||||||||||||
| Interest expense | (3,564 | ) | (6,125 | ) | (10,433 | ) | (20,976 | ) | ||||||||||||||
| Interest income | 12 | 15 | 443 | 37 | ||||||||||||||||||
| Debt covenant suspension and extinguishment charges | - | (931 | ) | (63 | ) | (37,112 | ) | |||||||||||||||
| Other, net | 2 | (46 | ) | - | (181 | ) | ||||||||||||||||
| (3,550 | ) | (7,087 | ) | (10,053 | ) | (58,232 | ) | |||||||||||||||
| Loss from continuing operations before income taxes | (9,869 | ) | (19,454 | ) | (28,574 | ) | (104,922 | ) | ||||||||||||||
| Provision (benefit) for income taxes | 792 | (43 | ) | 1,146 | (21,164 | ) | ||||||||||||||||
| Loss from continuing operations | (10,661 | ) | (19,411 | ) | (29,720 | ) | (83,758 | ) | ||||||||||||||
| Income (loss) from discontinued operations net of provision for income taxes | (1,325 | ) | 2,212 | (3,836 | ) | 37,849 | ||||||||||||||||
| Net loss | $ | (11,986 | ) | $ | (17,199 | ) | $ | (33,556 | ) | $ | (45,909 | ) | ||||||||||
| Basic loss per share attributable to Company shareholders: | ||||||||||||||||||||||
| Continuing operations | $ | (0.17 | ) | $ | (0.32 | ) | $ | (0.49 | ) | $ | (1.47 | ) | ||||||||||
| Discontinued operations | (0.02 | ) | 0.03 | (0.06 | ) | 0.67 | ||||||||||||||||
| $ | (0.19 | ) | $ | (0.29 | ) | $ | (0.55 | ) | $ | (0.80 | ) | |||||||||||
| Diluted loss per share attributable to Company shareholders: | ||||||||||||||||||||||
| Continuing operations | $ | (0.17 | ) | $ | (0.32 | ) | $ | (0.49 | ) | $ | (1.47 | ) | ||||||||||
| Discontinued operations | (0.02 | ) | 0.03 | (0.06 | ) | 0.67 | ||||||||||||||||
| $ | (0.19 | ) | $ | (0.29 | ) | $ | (0.55 | ) | $ | (0.80 | ) | |||||||||||
| Cash Flow Data | ||||||||||||||||||||||
| Continuing operations | ||||||||||||||||||||||
| Cash provided by (used in) | ||||||||||||||||||||||
| Operating activities | $ | (5,189 | ) | $ | (27,489 | ) | $ | (8,232 | ) | $ | 14,456 | |||||||||||
| Investing activities | 1,888 | 1,287 | 6,639 | 103,594 | ||||||||||||||||||
| Financing activities | (2,450 | ) | (1,309 | ) | (8,570 | ) | (82,087 | ) | ||||||||||||||
| Foreign exchange effects | (308 | ) | (341 | ) | 620 | (752 | ) | |||||||||||||||
| Discontinued operations | (408 | ) | 7,724 | (7,030 | ) | (10,379 | ) | |||||||||||||||
| Other Data (Continuing Operations) | ||||||||||||||||||||||
| Weighted average shares outstanding | ||||||||||||||||||||||
| Basic | 61,640 | 60,336 | 61,258 | 56,833 | ||||||||||||||||||
| Diluted | 61,640 | 60,336 | 61,258 | 56,833 | ||||||||||||||||||
| Adjusted EBITDA from continuing operations (1) | $ | 331 | $ | (1,815 | ) | $ | 3,659 | $ | (15,827 | ) | ||||||||||||
| Purchases of property, plant and equipment | 628 | 631 | 2,528 | 2,055 | ||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||||
| Adjusted EBITDA from continuing operations (1) | ||||||||||||||||||||||
| Loss from continuing operations | $ | (10,661 | ) | $ | (19,411 | ) | $ | (29,720 | ) | $ | (83,758 | ) | ||||||||||
| Interest expense | 3,564 | 6,125 | 10,433 | 20,976 | ||||||||||||||||||
| Interest income | (12 | ) | (15 | ) | (443 | ) | (37 | ) | ||||||||||||||
| Provision (benefit) for income taxes | 792 | (43 | ) | 1,146 | (21,164 | ) | ||||||||||||||||
| Depreciation and amortization | 5,385 | 6,452 | 16,694 | 21,046 | ||||||||||||||||||
| Debt covenant suspension and extinguishment charges | - | 931 | 63 | 37,112 | ||||||||||||||||||
| Stock based compensation | 868 | 1,500 | 3,269 | 4,553 | ||||||||||||||||||
| Restructuring and reorganization costs | 308 | 3,318 | 4,587 | 6,509 | ||||||||||||||||||
| Accounting and legal fees associated with the restatements | 4 | 205 | (42 | ) | 651 | |||||||||||||||||
| Loss on sale of subsidiary | 207 | - | 330 | - | ||||||||||||||||||
| Fort McMurray wildfire related costs | - | - | 523 | - | ||||||||||||||||||
| Gain on disposal of property and equipment | (124 | ) | (877 | ) | (3,181 | ) | (1,715 | ) | ||||||||||||||
| Adjusted EBITDA from continuing operations (1) | $ | 331 | $ | (1,815 | ) | $ | 3,659 | $ | (15,827 | ) | ||||||||||||
| Balance Sheet Data | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | ||||||||||||||||||
| Cash and cash equivalents | $ | 42,259 | $ | 48,726 | $ | 51,686 | $ | 58,832 | ||||||||||||||
| Working capital | 96,709 | 105,443 | 106,304 | 120,430 | ||||||||||||||||||
| Total assets | 382,828 | 416,464 | 431,372 | 441,577 | ||||||||||||||||||
| Total debt | 88,672 | 90,589 | 90,617 | 95,623 | ||||||||||||||||||
| Stockholders' equity | 148,974 | 160,324 | 165,682 | 177,400 | ||||||||||||||||||
| Backlog Data (2) | ||||||||||||||||||||||
| Total By Reporting Segment | ||||||||||||||||||||||
| Oil & Gas | $ | 23,590 | $ | 34,479 | $ | 71,314 | $ | 48,810 | ||||||||||||||
| Utility T&D | 535,014 | 535,218 | 595,620 | 622,629 | ||||||||||||||||||
| Canada | 88,025 | 102,302 | 116,352 | 155,379 | ||||||||||||||||||
| Total Backlog | $ | 646,629 | $ | 671,999 | $ | 783,286 | $ | 826,818 | ||||||||||||||
| Total Backlog By Geographic Area | ||||||||||||||||||||||
| United States | $ | 558,604 | $ | 569,697 | $ | 666,934 | $ | 671,439 | ||||||||||||||
| Canada | 88,025 | 102,302 | 116,352 | 155,379 | ||||||||||||||||||
| Total Backlog | $ | 646,629 | $ | 671,999 | $ | 783,286 | $ | 826,818 | ||||||||||||||
| 12 Month Backlog by Reporting Segment | ||||||||||||||||||||||
| Oil & Gas | $ | 23,590 | $ | 34,479 | $ | 69,514 | $ | 46,810 | ||||||||||||||
| Utility T&D | 289,758 | 269,758 | 296,278 | 274,610 | ||||||||||||||||||
| Canada | 62,400 | 68,995 | 91,503 | 110,797 | ||||||||||||||||||
| 12 Month Backlog | $ | 375,748 | $ | 373,232 | $ | 457,295 | $ | 432,217 | ||||||||||||||
| 12 Month Backlog By Geographic Area | ||||||||||||||||||||||
| United States | $ | 313,348 | $ | 304,237 | $ | 365,792 | $ | 321,420 | ||||||||||||||
| Canada | 62,400 | 68,995 | 91,503 | 110,797 | ||||||||||||||||||
| 12 Month Backlog | $ | 375,748 | $ | 373,232 | $ | 457,295 | $ | 432,217 | ||||||||||||||
| (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 September 30, 2016 | |||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||
| Oil & Gas | Utility T&D | Canada | Unallocated Corporate Costs | 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) | (13 | ) | - | - | - | - | (13 | ) | |||||||||||||
| Contract revenue before special items | $ | 33,087 | $ | 106,422 | $ | 35,355 | $ | - | $ | (56 | ) | $ | 174,808 | ||||||||
| Operating income (loss) before special items (1) | |||||||||||||||||||||
| Operating income (loss), as reported | $ | (5,401 | ) | $ | 629 | $ | (1,547 | ) | $ | - | $ | - | $ | (6,319 | ) | ||||||
| Operating loss, exited subsidiaries (2) | 29 | - | - | - | - | 29 | |||||||||||||||
| Other charges | 158 | 36 | 325 | - | - | 519 | |||||||||||||||
| Operating income (loss) before special items | $ | (5,214 | ) | $ | 665 | $ | (1,222 | ) | $ | - | $ | - | $ | (5,771 | ) | ||||||
| Three Months Ended June 30, 2016 | |||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||
| Oil & Gas | Utility T&D | Canada | Unallocated Corporate Costs | 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) | (385 | ) | - | - | - | - | (385 | ) | |||||||||||||
| Contract revenue before special items | $ | 54,354 | $ | 109,355 | $ | 29,496 | $ | - | $ | (148 | ) | $ | 193,057 | ||||||||
| Operating income (loss) before special items (1) | |||||||||||||||||||||
| Operating income (loss), as reported | $ | (2,326 | ) | $ | (505 | ) | $ | 90 | $ | - | $ | - | $ | (2,741 | ) | ||||||
| Operating income, exited subsidiaries (2) | (179 | ) | - | - | - | - | (179 | ) | |||||||||||||
| Other charges | 265 | 99 | 575 | - | - | 939 | |||||||||||||||
| Fort McMurray wildfire related costs | - | - | 523 | - | - | 523 | |||||||||||||||
| Operating income (loss) before special items | $ | (2,240 | ) | $ | (406 | ) | $ | 1,188 | $ | - | $ | - | $ | (1,458 | ) | ||||||
| Three Months Ended September 30, 2015 | |||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||
| Oil & Gas | Utility T&D | Canada | Unallocated Corporate Costs | 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 | ) | |||||
| Covenant EBITDA from continuing operations (3) | Q3 2016 | Q2 2016 | Q3 2015 | ||||||||||||||||||
| Loss from continuing operations | $ | (10,661 | ) | $ | (5,761 | ) | $ | (19,411 | ) | ||||||||||||
| Interest expense | 3,564 | 3,302 | 6,125 | ||||||||||||||||||
| Interest income | (12 | ) | (411 | ) | (15 | ) | |||||||||||||||
| Provision (benefit) for income taxes | 792 | 187 | (43 | ) | |||||||||||||||||
| Depreciation and amortization | 5,385 | 5,621 | 6,452 | ||||||||||||||||||
| Debt covenant suspension and extinguishment charges | - | - | 931 | ||||||||||||||||||
| Stock-based compensation | 868 | 1,108 | 1,500 | ||||||||||||||||||
| Restructuring and reorganization costs | 308 | 927 | 3,318 | ||||||||||||||||||
| Accounting and legal fees associated with the restatements | 4 | (81 | ) | 205 | |||||||||||||||||
| Loss on sale of subsidiary | 207 | - | - | ||||||||||||||||||
| Fort McMurray wildfire related costs | - | 523 | - | ||||||||||||||||||
| Loss on disposal of property and equipment outside of normal course of business | - | - | 286 | ||||||||||||||||||
| Changes in project loss provision | 1,470 | (186 | ) | (525 | ) | ||||||||||||||||
| Adjustments to self-insurance liabilities | - | - | (2,732 | ) | |||||||||||||||||
| Letter of credit fees | 349 | 342 | 409 | ||||||||||||||||||
| Provision for (recovery of) bad debt | 66 | 62 | 1,906 | ||||||||||||||||||
| Covenant EBITDA from continuing operations | $ | 2,340 | $ | 5,633 | $ | (1,594 | ) | ||||||||||||||
| Loss from continuing operations before special items (1) | Q3 2016 | Q2 2016 | Q3 2015 | ||||||||||||||||||
| Loss from continuing operations, as reported | $ | (10,661 | ) | $ | (5,761 | ) | $ | (19,411 | ) | ||||||||||||
| (Income) loss from continuing operations, exited subsidiaries (2) | 29 | (179 | ) | 2,099 | |||||||||||||||||
| Other charges | 519 | 939 | 3,872 | ||||||||||||||||||
| Fort McMurray wildfire related costs | - | 523 | - | ||||||||||||||||||
| Debt covenant suspension and extinguishment charges | - | - | 931 | ||||||||||||||||||
| Benefit for income taxes (4) | - | - | (1,317 | ) | |||||||||||||||||
| Loss from continuing operations before special items | $ | (10,113 | ) | $ | (4,478 | ) | $ | (13,826 | ) | ||||||||||||
| Income (loss) from discontinued operations before special items (1) | Q3 2016 | Q2 2016 | Q3 2015 | ||||||||||||||||||
| Income (loss) from discontinued operations, as reported | $ | (1,325 | ) | $ | (658 | ) | $ | 2,212 | |||||||||||||
| Other charges | 102 | (1,162 | ) | 2,048 | |||||||||||||||||
| Loss on sale of subsidiaries | - | 911 | 591 | ||||||||||||||||||
| Provision for income taxes (4) | - | - | 1,317 | ||||||||||||||||||
| Income (loss) from discontinued operations before special items | $ | (1,223 | ) | $ | (909 | ) | $ | 6,168 | |||||||||||||
| Net loss before special items (1) | Q3 2016 | Q2 2016 | Q3 2015 | ||||||||||||||||||
| Net loss, as reported | $ | (11,986 | ) | $ | (6,419 | ) | $ | (17,199 | ) | ||||||||||||
| (Income) loss from continuing operations, exited subsidiaries (2) | 29 | (179 | ) | 2,099 | |||||||||||||||||
| Other charges | 621 | (223 | ) | 5,920 | |||||||||||||||||
| Fort McMurray wildfire related costs | - | 523 | - | ||||||||||||||||||
| Loss on sale of subsidiaries | - | 911 | 591 | ||||||||||||||||||
| Debt covenant suspension and extinguishment charges | - | - | 931 | ||||||||||||||||||
| Provision (benefit) for income taxes | - | - | - | ||||||||||||||||||
| Net loss, before special items | $ | (11,336 | ) | $ | (5,387 | ) | $ | (7,658 | ) | ||||||||||||
| Diluted loss per share attributable to Company shareholders before special items (1) | Q3 2016 | Q2 2016 | Q3 2015 | ||||||||||||||||||
| Diluted loss per share attributable to Company shareholders, as reported | $ | (0.19 | ) | $ | (0.10 | ) | $ | (0.29 | ) | ||||||||||||
| (Income) loss from continuing operations, exited subsidiaries (2) | - | - | 0.03 | ||||||||||||||||||
| Other charges | 0.01 | - | 0.10 | ||||||||||||||||||
| Fort McMurray wildfire related costs | - | 0.01 | - | ||||||||||||||||||
| Loss on sale of subsidiaries | - | 0.01 | 0.01 | ||||||||||||||||||
| Debt covenant suspension and extinguishment charges | - | - | 0.02 | ||||||||||||||||||
| Provision (benefit) for income taxes | - | - | - | ||||||||||||||||||
| Diluted loss per share attributable to Company shareholders before special items | $ | (0.18 | ) | $ | (0.08 | ) | $ | (0.13 | ) | ||||||||||||
| (1) Contract revenue before special items, operating income (loss) before special items, Covenant EBITDA from continuing operations before special items, loss from continuing operations before special items, income (loss) from discontinued operations before special items, net loss before special items and diluted 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. | |||||||||||||||||||||
| (2) Contract revenue, exited subsidiaries, operating income (loss), 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. | |||||||||||||||||||||
| (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) The Company recorded a provision for income taxes on discontinued operations in connection with the 2015 gains 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-. | |||||||||||||||||||||
CONTACT: Stephen W. Breitigam VP Investor Relations Willbros 713-403-8172
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