Willbros Group, Inc. (NYSE:WG) today reported an operating loss of
$27.8 million in the third quarter of 2017 compared to an operating
loss of $6.3 million in the third quarter of 2016. Revenue in
the third quarter of 2017 totaled $240.8 million, an increase of
$13.3 million sequentially and compares to $174.8 million in the
third quarter of 2016. Operating results for the third quarter of
2017 include $13.0 million of losses on three pipeline projects in
the Oil & Gas segment and margin erosion in the Utility T&D
segment on two projects plus customer volume reserves totaling $8.4
million.
For the third quarter of 2017, the Company
reported a loss from continuing operations of $32.7 million, or
$(0.52) per share, compared to a loss from continuing operations of
$10.7 million, or $(0.17) per share, in the third quarter of
2016. Adjusted EBITDA from continuing operations was $(23.5)
million for the third quarter of 2017 compared to $0.3 million for
the third quarter of 2016.
For the nine months ended September 30, 2017,
loss from continuing operations was $51.6 million, or $(0.83) per
share, compared to a $29.7 million loss from continuing operations,
or $(0.49) per share, for the nine months ended September 30,
2016. Adjusted EBITDA from continuing operations was $(27.0)
million for the nine months ended September 30, 2017 compared to
$3.7 million for the nine months ended September 30,
2016.
On November 6, 2017, the Company reached
agreement with its lender to borrow an additional $15 million under
its Term Loan and to amend the associated financial covenants. This
amendment provides for a covenant holiday for the third and fourth
quarter of 2017 and less stringent covenants for all of 2018.
Michael J. Fournier, President and CEO,
commented, “The operating loss in the third quarter is a
disappointment. While we may recover some of the project cost
overruns through future change orders, these operating results
required us to enhance our liquidity and seek covenant relief from
our lender. Further, the risk profile we have experienced with our
U.S. mainline pipeline business is not sustainable. Thus, we intend
to exit this business and are in exclusive discussions with a
potential buyer. These actions do not impact our U.S. facilities,
pipeline integrity or Lineal businesses.
We will be assessing options to refinance our
debt agreements during the first half of 2018 and we are pursuing a
strategic process to accelerate expansion of our Utility T&D
business.”
Included in this press release are certain
non-GAAP financial measures, including Adjusted EBITDA from
continuing operations and Covenant EBITDA from continuing
operations. A related reconciliation of each of these
non-GAAP measures is included in the accompanying schedules.
Backlog
At September 30, 2017, the Company reported
total backlog of $741.3 million, a decrease of $67.3 million from
the June 30, 2017 balance. Twelve month backlog of $543.9
million at September 30, 2017 reflects a small decrease from the
$546.9 million reported at June 30, 2017. 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.
Segment Operating Results
Utility T&D
The Utility T&D segment reported revenue in
the third quarter of $129.9 million, down $21.8 million, or 14%,
sequentially and primarily due to reduced transmission work in our
Chapman business unit. Driven primarily by lower revenue, margin
erosion on two discrete projects and recognition of a volume
reserve triggered by receipt of a new customer forecast for 2017
services, the segment generated an operating loss of $7.5 million
in the third quarter of 2017 compared to operating income of $11.0
million in the second quarter of 2017.
Oil & Gas
For the third quarter of 2017, the Oil & Gas
segment reported revenue of $75.3 million, up 54% sequentially as
the mainline pipeline and Lineal businesses operated at high
activity levels throughout the quarter. Three projects were located
in the same area and hampered by weather and terrain issues, along
with other operating issues. Losses on these projects contributed
to an operating loss of $14.8 million for the segment in the third
quarter of 2017.
Canada
Canada reported revenue of $35.6 million for the
third quarter of 2017, an $8.9 million increase when compared to
the second quarter of 2017. Revenue in the maintenance business has
returned to near historical levels towards the end of the third
quarter while activity associated with our industrial and pipeline
construction businesses remain depressed. The segment operated at
near break-even status as it reported an operating loss of $0.3
million in the third quarter of 2017.
Liquidity and Debt
Total liquidity (defined as cash and cash
equivalents plus revolver availability) at September 30, 2017 was
$48.8 million, a decrease of $1.8 million from the end of the
second quarter of 2017. Cash and cash equivalents totaled
$31.3 million at September 30, 2017. During the third quarter of
2017 we borrowed $12 million under the revolving credit facility,
plus an additional $17 million on November 6, 2017, to support our
working capital and operating needs. The revolving credit facility
expires in August 2018.
At September 30, 2017, the principal amount due
on our Term Loan remained unchanged from the prior quarter at $92.2
million. With the recent amendment to our Term Loan, the principal
balance will increase to $107.2 million.
Guidance
Jeff Kappel, Willbros Chief Financial Officer,
commented, “We are reaffirming revenue guidance for 2017 to range
between $850 million to $900 million, excluding the Tank Services
business. For 2018, we anticipate revenue to range between $750
million and $825 million, excluding the U.S. Mainline Pipeline and
Tank Services businesses.”
Conference Call
In conjunction with this release, Willbros has scheduled a
conference call, which will be broadcast live over the internet, on
Thursday, November 9, 2017 at 10:00 a.m. Eastern Time (9:00 a.m.
Central Time).
What: |
|
Willbros Third Quarter
2017 Earnings Conference Call |
|
|
|
When: |
|
Thursday, November 9,
2017 - 10 a.m. Eastern Time |
|
|
|
How: |
|
Live via phone - By
dialing 1-844-850-0544 (U.S. Toll Free), 1-855-669-9657 (Canada
Toll Free) or 1-412-317-5201 (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 16, 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 10114025. 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, or refinance, the Company's existing loan
agreements; ability to dispose of businesses and assets in a timely
manner at reasonable valuations; 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
CONTACT:Stephen W. BreitigamSVP Investor
RelationsWillbros713-403-8172
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|
|
|
|
WILLBROS GROUP, INC. |
|
|
(In thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
|
|
September
30, |
|
September
30, |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
Income
Statement |
|
|
|
|
|
|
|
|
|
|
|
Contract
revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Oil &
Gas |
|
$ |
75,284 |
|
|
$ |
33,100 |
|
|
$ |
146,748 |
|
|
$ |
147,174 |
|
|
|
|
|
Utility
T&D |
|
|
129,906 |
|
|
|
106,422 |
|
|
|
397,097 |
|
|
|
313,066 |
|
|
|
|
|
Canada |
|
|
35,583 |
|
|
|
35,355 |
|
|
|
88,275 |
|
|
|
107,343 |
|
|
|
|
|
Eliminations |
|
|
- |
|
|
|
(56 |
) |
|
|
- |
|
|
|
(290 |
) |
|
|
|
|
|
|
|
|
240,773 |
|
|
|
174,821 |
|
|
|
632,120 |
|
|
|
567,293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Oil &
Gas |
|
|
90,050 |
|
|
|
37,483 |
|
|
|
172,284 |
|
|
|
158,193 |
|
|
|
|
|
Utility
T&D |
|
|
137,381 |
|
|
|
102,160 |
|
|
|
392,804 |
|
|
|
299,584 |
|
|
|
|
|
Canada |
|
|
35,879 |
|
|
|
35,696 |
|
|
|
93,625 |
|
|
|
106,229 |
|
|
|
|
|
Unallocated
Corporate Costs |
|
|
5,252 |
|
|
|
5,857 |
|
|
|
15,691 |
|
|
|
22,098 |
|
|
|
|
|
Eliminations |
|
|
- |
|
|
|
(56 |
) |
|
|
- |
|
|
|
(290 |
) |
|
|
|
|
|
|
|
|
268,562 |
|
|
|
181,140 |
|
|
|
674,404 |
|
|
|
585,814 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
Oil &
Gas |
|
|
(14,766 |
) |
|
|
(4,383 |
) |
|
|
(25,536 |
) |
|
|
(11,019 |
) |
|
|
|
|
Utility
T&D |
|
|
(7,475 |
) |
|
|
4,262 |
|
|
|
4,293 |
|
|
|
13,482 |
|
|
|
|
|
Canada |
|
|
(296 |
) |
|
|
(341 |
) |
|
|
(5,350 |
) |
|
|
1,114 |
|
|
|
|
|
Unallocated
Corporate Costs |
|
|
(5,252 |
) |
|
|
(5,857 |
) |
|
|
(15,691 |
) |
|
|
(22,098 |
) |
|
|
|
Operating
loss |
|
|
(27,789 |
) |
|
|
(6,319 |
) |
|
|
(42,284 |
) |
|
|
(18,521 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
(3,817 |
) |
|
|
(3,564 |
) |
|
|
(10,972 |
) |
|
|
(10,433 |
) |
|
|
|
|
Interest
income |
|
|
8 |
|
|
|
12 |
|
|
|
23 |
|
|
|
443 |
|
|
|
|
|
Debt
covenant suspension and extinguishment charges |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(63 |
) |
|
|
|
|
Other,
net |
|
|
21 |
|
|
|
2 |
|
|
|
2 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
(3,788 |
) |
|
|
(3,550 |
) |
|
|
(10,947 |
) |
|
|
(10,053 |
) |
|
|
|
Loss from continuing operations before income taxes |
|
|
(31,577 |
) |
|
|
(9,869 |
) |
|
|
(53,231 |
) |
|
|
(28,574 |
) |
|
|
|
Provision
(benefit) for income taxes |
|
|
1,132 |
|
|
|
792 |
|
|
|
(1,665 |
) |
|
|
1,146 |
|
|
|
|
Loss from
continuing operations |
|
|
(32,709 |
) |
|
|
(10,661 |
) |
|
|
(51,566 |
) |
|
|
(29,720 |
) |
|
|
|
Loss from
discontinued operations net of provision for income taxes |
|
|
(1,496 |
) |
|
|
(1,325 |
) |
|
|
(1,508 |
) |
|
|
(3,836 |
) |
|
|
|
Net
loss |
|
|
$ |
(34,205 |
) |
|
$ |
(11,986 |
) |
|
$ |
(53,074 |
) |
|
$ |
(33,556 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per share attributable to Company shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations |
|
$ |
(0.52 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.83 |
) |
|
$ |
(0.49 |
) |
|
|
|
|
Discontinued operations |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
|
|
(0.06 |
) |
|
|
|
|
|
|
|
$ |
(0.54 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.85 |
) |
|
$ |
(0.55 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per share attributable to Company
shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations |
|
$ |
(0.52 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.83 |
) |
|
$ |
(0.49 |
) |
|
|
|
|
Discontinued operations |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
|
|
(0.06 |
) |
|
|
|
|
|
|
|
$ |
(0.54 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.85 |
) |
|
$ |
(0.55 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow
Data |
|
|
|
|
|
|
|
|
|
|
Continuing
operations |
|
|
|
|
|
|
|
|
|
|
|
Cash
provided by (used in) |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities |
|
$ |
(22,574 |
) |
|
$ |
(5,290 |
) |
|
$ |
(21,557 |
) |
|
$ |
(8,232 |
) |
|
|
|
|
Investing
activities |
|
|
591 |
|
|
|
1,888 |
|
|
|
2,280 |
|
|
|
6,639 |
|
|
|
|
|
Financing
activities |
|
|
11,962 |
|
|
|
(2,349 |
) |
|
|
9,152 |
|
|
|
(8,570 |
) |
|
|
|
|
Foreign
exchange effects |
|
|
641 |
|
|
|
(308 |
) |
|
|
1,055 |
|
|
|
620 |
|
|
|
Discontinued operations |
|
|
(575 |
) |
|
|
(408 |
) |
|
|
(1,056 |
) |
|
|
(7,030 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data
(Continuing Operations) |
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
62,310 |
|
|
|
61,640 |
|
|
|
62,105 |
|
|
|
61,258 |
|
|
|
|
|
Diluted |
|
|
62,310 |
|
|
|
61,640 |
|
|
|
62,105 |
|
|
|
61,258 |
|
|
|
|
Adjusted
EBITDA from continuing operations(1) |
|
$ |
(23,501 |
) |
|
$ |
331 |
|
|
$ |
(26,954 |
) |
|
$ |
3,659 |
|
|
|
|
Purchases
of property, plant and equipment |
|
|
806 |
|
|
|
628 |
|
|
|
2,132 |
|
|
|
2,528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA from continuing operations (1) |
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
continuing operations |
|
$ |
(32,709 |
) |
|
$ |
(10,661 |
) |
|
$ |
(51,566 |
) |
|
$ |
(29,720 |
) |
|
|
|
|
Interest
expense |
|
|
3,817 |
|
|
|
3,564 |
|
|
|
10,972 |
|
|
|
10,433 |
|
|
|
|
|
Interest
income |
|
|
(8 |
) |
|
|
(12 |
) |
|
|
(23 |
) |
|
|
(443 |
) |
|
|
|
|
Provision
(benefit) for income taxes |
|
|
1,132 |
|
|
|
792 |
|
|
|
(1,665 |
) |
|
|
1,146 |
|
|
|
|
|
Depreciation and amortization |
|
|
4,643 |
|
|
|
5,385 |
|
|
|
14,600 |
|
|
|
16,694 |
|
|
|
|
|
Debt
covenant suspension and extinguishment charges |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
63 |
|
|
|
|
|
Stock based
compensation |
|
|
587 |
|
|
|
868 |
|
|
|
2,121 |
|
|
|
3,269 |
|
|
|
|
|
Restructuring and reorganization costs |
|
|
(91 |
) |
|
|
308 |
|
|
|
535 |
|
|
|
4,587 |
|
|
|
|
|
Accounting
and legal fees associated with the restatements |
|
|
240 |
|
|
|
4 |
|
|
|
617 |
|
|
|
(42 |
) |
|
|
|
|
Fort
McMurray wildfire related costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
523 |
|
|
|
|
|
(Gain) loss
on disposal of property and equipment |
|
|
(1,112 |
) |
|
|
83 |
|
|
|
(2,545 |
) |
|
|
(2,851 |
) |
|
|
|
|
Adjusted
EBITDA from continuing operations(1) |
|
$ |
(23,501 |
) |
|
$ |
331 |
|
|
$ |
(26,954 |
) |
|
$ |
3,659 |
|
|
|
|
|
Gain on
disposal of property and equipment, normal course of business |
|
|
1,112 |
|
|
|
124 |
|
|
|
2,545 |
|
|
|
3,181 |
|
|
|
|
|
Changes in
project loss provision |
|
|
3,936 |
|
|
|
1,470 |
|
|
|
487 |
|
|
|
828 |
|
|
|
|
|
Letter of
credit fees |
|
|
421 |
|
|
|
349 |
|
|
|
1,237 |
|
|
|
1,047 |
|
|
|
|
|
Provision
for bad debt |
|
|
60 |
|
|
|
66 |
|
|
|
178 |
|
|
|
106 |
|
|
|
|
|
Exit of
Tank Services |
|
|
85 |
|
|
|
773 |
|
|
|
1,230 |
|
|
|
3,152 |
|
|
|
|
|
Covenant
EBITDA from continuing operations(2) |
|
$ |
(17,887 |
) |
|
$ |
3,113 |
|
|
$ |
(21,277 |
) |
|
$ |
11,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data |
|
September 30,
2017 |
|
June 30, 2017 |
|
March 31, 2017 |
|
December 31,
2016 |
|
|
|
Cash and
cash equivalents |
|
$ |
31,294 |
|
|
$ |
41,249 |
|
|
$ |
36,693 |
|
|
$ |
41,420 |
|
|
|
|
Working
capital |
|
|
56,620 |
|
|
|
84,033 |
|
|
|
75,756 |
|
|
|
89,323 |
|
|
|
|
Total
assets |
|
|
400,553 |
|
|
|
382,108 |
|
|
|
366,285 |
|
|
|
363,036 |
|
|
|
|
Total
debt |
|
|
100,927 |
|
|
|
88,179 |
|
|
|
87,466 |
|
|
|
89,189 |
|
|
|
|
Stockholders' equity |
|
|
86,295 |
|
|
|
118,624 |
|
|
|
118,614 |
|
|
|
135,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog Data (3) |
|
|
|
|
|
|
|
|
|
|
|
12 Month
Backlog by Reporting Segment |
|
|
|
|
|
|
|
|
|
|
|
|
Oil &
Gas |
|
$ |
159,213 |
|
|
$ |
116,366 |
|
|
$ |
87,750 |
|
|
$ |
28,827 |
|
|
|
|
|
Utility
T&D |
|
|
329,531 |
|
|
|
355,480 |
|
|
|
362,749 |
|
|
|
349,998 |
|
|
|
|
|
Canada |
|
|
55,127 |
|
|
|
75,051 |
|
|
|
77,918 |
|
|
|
41,041 |
|
|
|
|
12 Month Backlog |
|
$ |
543,871 |
|
|
$ |
546,897 |
|
|
$ |
528,417 |
|
|
$ |
419,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 Month Backlog exclusive of Exited Services |
|
|
|
|
|
|
|
|
|
|
|
12 Month
Backlog, as reported |
|
$ |
543,871 |
|
|
$ |
546,897 |
|
|
$ |
528,417 |
|
|
$ |
419,866 |
|
|
|
|
U.S.
Mainline Pipeline Construction Services 12 Month Backlog |
|
|
47,123 |
|
|
|
58,097 |
|
|
|
45,084 |
|
|
|
5,434 |
|
|
|
|
Tank
Services 12 Month Backlog |
|
|
21,099 |
|
|
|
26,351 |
|
|
|
28,813 |
|
|
|
15,189 |
|
|
|
|
12 Month Backlog, exclusive of Exited Services |
|
$ |
475,649 |
|
|
$ |
462,449 |
|
|
$ |
454,520 |
|
|
$ |
399,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total By Reporting Segment |
|
|
|
|
|
|
|
|
|
|
|
|
Oil &
Gas |
|
$ |
159,213 |
|
|
$ |
116,366 |
|
|
$ |
87,750 |
|
|
$ |
28,827 |
|
|
|
|
|
Utility
T&D |
|
|
459,417 |
|
|
|
540,876 |
|
|
|
605,706 |
|
|
|
656,838 |
|
|
|
|
|
Canada |
|
|
122,644 |
|
|
|
151,336 |
|
|
|
158,999 |
|
|
|
106,793 |
|
|
|
|
Total Backlog |
|
$ |
741,274 |
|
|
$ |
808,578 |
|
|
$ |
852,455 |
|
|
$ |
792,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Backlog exclusive of Exited Services |
|
|
|
|
|
|
|
|
|
|
|
Total
Backlog, as reported |
|
$ |
741,274 |
|
|
$ |
808,578 |
|
|
$ |
852,455 |
|
|
$ |
792,458 |
|
|
|
|
U.S.
Mainline Pipeline Construction Services Total Backlog |
|
|
47,123 |
|
|
|
58,097 |
|
|
|
45,084 |
|
|
|
5,434 |
|
|
|
|
Tank
Services Total Backlog |
|
|
21,099 |
|
|
|
26,351 |
|
|
|
28,813 |
|
|
|
15,189 |
|
|
|
|
Total Backlog, exclusive of Exited Services |
|
$ |
673,052 |
|
|
$ |
724,130 |
|
|
$ |
778,558 |
|
|
$ |
771,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
) |
|
Covenant EBITDA from continuing operations is a non-GAAP
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. |
|
|
|
|
|
|
|
|
(3 |
) |
|
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. |
|
|
|
|
|