Williams Industrial Services Group Provides Update on Contracts
February 07 2022 - 8:00AM
Business Wire
No Change to 2022 Financial Guidance
Williams Industrial Services Group Inc. (NYSE American: WLMS)
(“Williams” or the “Company”), a construction and maintenance
infrastructure services company, today provided additional
information related to its 2022 financial guidance issued on
January 28, 2022. At that time, the Company disclosed that one of
its largest customers had transferred certain work to a competitor.
This has continued to occur, such that several multi-year contracts
for nuclear decommissioning, currently worth approximately $360
million in backlog for 2022 through 2029, are expected to be lost,
including $30 million for 2022 and $50 million for 2023. However,
the Company’s previously issued guidance incorporated the $30
million impact for 2022 and thus remains unchanged. The Company is
pursuing legal action, where appropriate, against ex-Williams
employees and the competitor involved in this situation.
“We regret the loss of this long-term nuclear decommissioning
work in our backlog,” said Tracy Pagliara, President and CEO of
Williams. “On the other hand, the contracts in question did not
represent a significant amount of our gross profit in any
particular year – including the current one. We remain committed to
keeping as much business with this customer as possible. At the
same time, we continue to aggressively target other growth
opportunities within our end markets, which are expected to expand
in the future as a result of the Infrastructure Act of 2021. With
this in mind, we are confident in our 2022 guidance and our ability
to win new awards, in higher-margin areas, to offset such business
going forward. Importantly, these losses were not tied to
performance and thus do not affect our reputation or diminish our
ability to serve our customers across the board. Our balance sheet
and liquidity remain strong, as does our resolve to return Williams
to improved results in the quarters to come.”
Williams’ total backlog as of December 31, 2021, excluding the
lost decommissioning contracts, was approximately $275 million.
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/20220207005318/en/
Investor Contact: Chris Witty Darrow Associates
646-345-0998 cwitty@darrowir.com
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