Williams Industrial Services Group Provides Fiscal 2022 Guidance
January 28 2022 - 8:00AM
Business Wire
Williams Industrial Services Group Inc. (NYSE American: WLMS)
(“Williams” or the “Company”), a construction and maintenance
services company, today provided its financial guidance for 2022,
as follows:
- Revenue: $305 - $325 million (with first quarter being the
lowest sales period, as usual)
- Gross Margin: 10.5% - 11.0%
- SG&A: 8.75% – 9.25% (8.25% - 8.75% excluding investments in
upgrading systems)
- EBITDA: $10.0 – $12.5 million
“Our guidance for 2022 marks continued progress towards
sustained profitability and a strengthened balance sheet while
recognizing some current challenges impacting the business,” said
Tracy Pagliara, President and CEO of Williams. “In particular, we
did not win the delayed contract that was designated as ‘uncertain’
in our third quarter earnings release, and one of our other largest
customers has transferred certain work to a competitor. The Company
is using its best efforts to retain this customer and, at the same
time, aggressively targeting other growth opportunities within our
various end markets. In addition, to further position Williams for
success, we are actively reviewing investments to be made under the
2021 Infrastructure Act. We will continue to focus on cost
reduction, cash flow generation, and diversification into
higher-margin areas, which we believe should improve Williams’
outlook as 2022 progresses and in future years.”
The Company’s total liquidity (the sum of unrestricted cash and
availability under the Company’s revolving credit facility) was
$27.7 million as of December 31, 2021, versus $21.7 million at the
end of the third quarter.
About Williams
Williams Industrial Services Group has been safely helping plant
owners and operators enhance asset value for more than 50 years.
The Company is a leading provider of infrastructure related
services to blue-chip customers in energy and industrial end
markets, including a broad range of construction maintenance,
modification, and support services. Williams’ mission is to be the
preferred provider of construction, maintenance, and specialty
services through commitment to superior safety performance, focus
on innovation, and dedication to delivering unsurpassed value to
its customers.
Additional information about Williams can be found on its
website: www.wisgrp.com.
Forward-looking Statement Disclaimer
This press release contains “forward-looking statements” within
the meaning of the term set forth in the Private Securities
Litigation Reform Act of 1995. The forward-looking statements
include statements or expectations regarding the Company’s ability
to perform in accordance with guidance, build and diversify its
backlog and convert backlog to revenue, realize opportunities,
including receiving contract awards on outstanding bids and
successfully pursuing future opportunities, benefit from potential
growth in the Company’s end markets, including from increased
infrastructure spending by the U.S. federal government, and
successfully achieve its growth, strategic and business development
initiatives, including decreasing the Company’s outstanding
indebtedness, future demand for the Company’s services, and
expectations regarding future revenues, cash flow, and other
related matters. These statements reflect the Company’s current
views of future events and financial performance and are subject to
a number of risks and uncertainties, some of which have been, and
may further be, exacerbated by the COVID-19 pandemic, including the
Company’s level of indebtedness and ability to make payments on,
and satisfy the financial and other covenants contained in, its
debt facilities, as well as its ability to engage in certain
transactions and activities due to limitations and covenants
contained in such facilities; its ability to generate sufficient
cash resources to continue funding operations and the possibility
that it may be unable to obtain any additional funding as needed or
incur losses from operations in the future; exposure to market
risks from changes in interest rates; failure to maintain effective
internal control over financial reporting and disclosure controls
and procedures; the Company’s ability to attract and retain
qualified personnel, skilled workers, and key officers; failure to
successfully implement or realize its business strategies, plans
and objectives of management, and liquidity, operating and growth
initiatives and opportunities, including its expansion into
international markets and its ability to identify potential
candidates for, and consummate, acquisition, disposition, or
investment transactions; the loss of, or reduction in business
from, one or more of its significant customers; its competitive
position; market outlook and trends in the Company’s industry,
including the possibility of reduced investment in, or increased
regulation of, nuclear power plants, declines in public
infrastructure construction, and reductions in government funding;
the failure of the Company and its end markets to benefit from the
recently enacted 2021 Infrastructure Act ; costs exceeding
estimates the Company uses to set fixed-price contracts; harm to
the Company’s reputation or profitability due to, among other
things, internal operational issues, poor subcontractor
performances or subcontractor insolvency; potential insolvency or
financial distress of third parties, including customers and
suppliers; the Company’s contract backlog and related amounts to be
recognized as revenue; its ability to maintain its safety record,
the risks of potential liability and adequacy of insurance; adverse
changes in the Company’s relationships with suppliers, vendors, and
subcontractors; compliance with environmental, health, safety and
other related laws and regulations; limitations or modifications to
indemnification regulations of the U.S. or Canada; the Company’s
expected financial condition, future cash flows, results of
operations and future capital and other expenditures; the impact of
general economic conditions including the current economic
disruption and any recession resulting from the COVID-19 pandemic;
the impact of the COVID-19 pandemic on the Company’s business,
results of operations, financial condition, and cash flows,
including the potential for additional COVID-19 cases to occur at
the Company’s active or future job sites, which potentially could
impact cost and labor availability; the impact of supply chain
constraints and labor shortages related to the COVID-19 pandemic;
the uncertainty surrounding and the potential impact of the federal
vaccination mandate on the Company’s labor supply and future
results of operations, as well as any impact of such mandate on the
Company’s customers; information technology vulnerabilities and
cyberattacks on the Company’s networks; the Company’s inability to
efficiently implement IT or ERP system upgrades; the Company’s
failure to comply with applicable laws and regulations, including,
but not limited to, those relating to privacy and anti-bribery; the
Company’s participation in multiemployer pension plans; the impact
of any disruptions resulting from the expiration of collective
bargaining agreements; uncertainties surrounding any pending
litigation; the impact of natural disasters and other severe
catastrophic events (such as the ongoing COVID-19 pandemic); the
impact of changes in tax regulations and laws, including future
income tax payments and utilization of net operating loss and
foreign tax credit carryforwards; volatility of the market price
for the Company’s common stock; the Company’s ability to maintain
its stock exchange listing; the effects of anti-takeover provisions
in the Company’s organizational documents and Delaware law; the
impact of future offerings or sales of the Company’s common stock
on the market price of such stock; expected outcomes of legal or
regulatory proceedings and their anticipated effects on the
Company’s results of operations; and any other statements regarding
future growth, future cash needs, future operations, business plans
and future financial results.
Other important factors that may cause actual results to differ
materially from those expressed in the forward-looking statements
are discussed in the Company’s filings with the U.S. Securities and
Exchange Commission, including the section of the Annual Report on
Form 10-K for its 2020 fiscal year titled “Risk Factors.” Any
forward-looking statement speaks only as of the date of this press
release. Except as may be required by applicable law, the Company
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, and you are cautioned not to rely upon
them unduly.
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version on businesswire.com: https://www.businesswire.com/news/home/20220128005095/en/
Chris Witty Darrow Associates 646-345-0998
cwitty@darrowir.com
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