Willbros Reports Fourth Quarter and Full Year 2016

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Posted On: 03/07/2017 8:00:26 PM

Posted By: News Desk 2018

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, March 07, 2017 (GLOBE NEWSWIRE) -- 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.

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, 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.

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 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

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	)


Balance Sheet Data			December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016
	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	)

Covenant EBITDA from continuing operations ⁽³⁾	Q1 2016			Q2 2016			Q3 2016			Q4 2016			YE 2016
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

Loss from continuing operations before special items ⁽¹⁾	Q1 2016			Q2 2016			Q3 2016			Q4 2016			YE 2016
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	)

Loss from discontinued operations before special items ⁽¹⁾	Q1 2016			Q2 2016			Q3 2016			Q4 2016			YE 2016
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	)

Net loss before special items ⁽¹⁾	Q1 2016			Q2 2016			Q3 2016			Q4 2016			YE 2016
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	)

Loss from continuing operations before special items ⁽¹⁾	Q1 2015			Q2 2015			Q3 2015			Q4 2015			YE 2015
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	)

Income (loss) from discontinued operations before special items ⁽¹⁾	Q1 2015			Q2 2015			Q3 2015			Q4 2015			YE 2015
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

Net loss before special items ⁽¹⁾	Q1 2015			Q2 2015			Q3 2015			Q4 2015			YE 2015
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'.

CONTACT Stephen W. Breitigam VP Investor Relations Willbros 713-403-8172

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