Aegion Corporation Reports 2020 First Quarter Financial Results – Q1’20 results exceeded expectations; Management providing near-term financial targets for Q2’20
- Q1’20 loss per diluted share was $0.05 compared to a loss per diluted share of $0.13 in Q1’19. Q1’20 adjusted (non-GAAP)1 earnings per diluted share were $0.06, in line with results achieved in Q1’19.
- Revenues for the quarter increased 4% to $287 million. Excluding exited or to-be-exited operations, revenues on a same-store basis improved 9%, driven by increases across all operating segments.
- Contract backlog as of March 31, 2020 was $648 million. Excluding exited or to-be-exited businesses, backlog increased 3% compared to prior-year levels, driven by a 10% increase in new orders in Q1’20 compared to Q1’19.
- Ending cash as of March 31, 2020 was $74 million. The Company successfully completed a credit facility amendment that provides expanded covenant flexibility and increases expected borrowing capacity over the next 12 months by more than $100 million.
- The Company currently expects Q2’20 adjusted EPS to be in the range of $0.20 to $0.30 and will look to reinstate full-year financial guidance when there is improved visibility into expected results.
- 1 Adjusted (non-GAAP) results exclude certain charges related to the Company’s restructuring activities, acquisition and divestiture-related activities, project warranty accruals and impacts from the Tax Cuts and Jobs Act. Reconciliation of adjusted results is included below.
Infrastructure Solutions and Energy Services delivered strong year-over-year improvement in both adjusted operating income and adjusted operating margins, successfully overcoming March COVID-19 impacts.
Consolidated adjusted gross profit and adjusted operating income declines were the result of larger than expected losses from Corrosion Protection, which were exacerbated by short-term COVID-19-related project delays, primarily impacting the Coating Services business.
Adjusted operating expenses declined 3% from the prior year due to continued focus on cost containment. Management announced multiple cash savings initiatives in March, including salary reductions, employee furloughs, a freeze on discretionary spend and capital expenditures and suspension of the Company’s open market share repurchase program.
“The health and safety of our employees, customers and communities are Aegion’s highest priorities. Our ‘essential service’ designation underpins the need for our services to maintain critical infrastructure integrity for the sake of public health and environmental compliance – even during challenging times. Aegion is successfully managing the impacts of COVID-19 and the oil market collapse, although Q2 results will be impacted and visibility into the second half of the year remains uncertain.
Our efforts to reshape the business over the last several years have positioned us well to withstand market uncertainty. While the severity and duration of this crisis remain unknown, we are focused on what is in our control, including our commitment to safety, being nimble with crew loading and scheduling, swift implementation of cash savings initiatives and expanding our liquidity to provide a cushion against further risk. We are focused and resilient and will successfully navigate this crisis.”
Charles R. Gordon, President and Chief Executive Officer
NOTE: this is NOT the complete release.