Aegion Corporation Reports 2020 Second Quarter Financial Results

Q2’20 results exceeded expectations; Solid market position and portfolio strength to successfully navigate near-term challenges
ST. LOUIS, July 29, 2020 (GLOBE NEWSWIRE) —A PDF accompanying this release is available at: http://ml.globenewswire.com/Resource/Download/188bedbc-da35-4bdb-979a-c40f5370795b Q2’20 earnings per diluted share were $0.12 compared to a loss per diluted share of $0.27 in Q2’19. Q2’20 adjusted (non-GAAP)¹ earnings per diluted share were $0.25 compared to $0.37 in the prior year.Revenues in the quarter were $245 million. Despite year-over-year COVID-related disruptions and revenue declines across much of the business, the flagship Insituform North America business successfully grew revenues, new orders and backlog, underpinned by our leading position combined with the strength and stability of the North American municipal water and wastewater markets.Contract backlog as of June 30, 2020, was $669 million. Excluding exited or to-be-exited businesses, backlog increased 4% over the prior year, driven by increases across all segments and providing confidence in future earnings and cash flow stability.Year-to-date operating cash flows as of June 30, 2020, were $60 million, an increase of more than four times the prior-year level, which enabled more than $40 million in debt reduction in Q2’20 and drove a global ending cash balance of $96 million.The Company is targeting Q3’20 adjusted EPS of $0.25 to $0.35.¹Adjusted (non-GAAP) results exclude certain charges related to the Company’s restructuring activities, acquisition and divestiture-related expenses, goodwill and indefinite-lived intangible asset impairment, impairment of assets held for sale, project warranty accruals, credit facility amendment fees and impacts from the Tax Cuts and Jobs Act. Reconciliation of adjusted results is included below.Q2’20 HIGHLIGHTSExceptional Infrastructure Solutions performance and strong cost and cash management across the business drove results higher than expectations and enabled an accelerated repayment of $2.5 million of temporary wage reductions to a portion of the North American workforce.Infrastructure Solutions strength helped offset a sharp decline in volumes and profitability at Energy Services as a result of COVID-related disruptions.Despite top-line disruptions across much of the business, the Company delivered a 50 basis point increase in adjusted gross margins and held adjusted operating margins flat compared to the prior year.“Our ability to exceed performance expectations in the quarter amid unprecedented market disruption is a testament to the success of our efforts in reshaping Aegion to deliver improved earnings stability and cash flow generation in all market cycles. Our scale, unmatched North American market reach and focus on maintaining and rehabilitating critical infrastructure continue to be key differentiating factors in navigating COVID disruptions.While the near-term outlook remains choppy, primarily in our Energy Services business, our long-term fundamentals are sound, underpinned by significant exposure to the more stable and resilient North American municipal water and wastewater markets, where we’ve seen double-digit growth year to date. Our balance sheet is in great shape and we are well positioned to emerge stronger from this period of uncertainty.”Charles R. Gordon, President and Chief Executive Officer
Selected Consolidated Financial HighlightsNet income (loss) and diluted earnings (loss) per share includes non-controlling interest