|Over a week ago|
Aegion withdraws FY20 outlook, suspends share repurchase program due to COVID-19 » 16:3803/2603/26/20
Aegion provided a…
Aegion provided a business update related to the impact of the global COVID-19 pandemic. Aegion has taken multiple actions over the last several years to withstand market challenges. The company ended 2019 with more than $66M in cash balances and nearly $40M in borrowing capacity on the company's line of credit. A focus on rehabilitation and maintenance activities, which accounted for approximately 85% of 2019 consolidated revenues, lessens the company's dependence on new construction activity and reduces risk in cyclical markets. Additionally, the company's exposure to upstream oil and gas markets represents less than 10% of consolidated revenues. Nevertheless, the current global COVID-19 pandemic is unprecedented, its severity and duration are uncertain and its impacts are being felt by Aegion. In response to the crisis, multiple federal, state and local jurisdictions globally have issued 'stay at home' orders. Many orders currently allow individuals to leave their homes to perform work necessary to the operations and maintenance of 'essential infrastructure,' which includes, among other activities, water, sewer, gas and sanitation services as well as oil refining and oil and gas operations. This designation has enabled most Aegion field crews to continue working, resulting in a limited disruption overall to operations to date. All Aegion employees are working with extra health and safety precautions in place, and the majority of Insituform and Corrpro field crews are comprised of less than six individuals with work that primarily takes place outdoors, further reducing the potential spread of the virus. The company is pleased with its ability to continue serving client needs to date. While the company currently has a good backlog position, management is carefully monitoring the implications of COVID-19 on future work releases, new orders and the ability to keep crews working under evolving local mandates. Despite recent success in navigating these market challenges, the company is preparing for a protracted period of significant uncertainty. As such, management is taking proactive prudent actions to reduce costs, increase liquidity and improve financial flexibility to ensure the company is well positioned for the duration of the crisis. Such actions include: A temporary cash wage reduction for North America salaried employees, ranging from 15% for lower salary bands to 50% for senior leadership and 100% for three executive leaders, which include the company's CEO, CFO and general counsel; An unpaid furlough, impacting approximately 15% of the North American workforce, with approximately two-thirds of affected employees in the Energy Services segment, primarily as a result of deferred turnaround and construction activities; A freeze of all non-critical spending for capital expenditures, travel and other discretionary expenses; Suspension of the company's discretionary open-market share repurchase program and suspension of cash fees for the company's board. Additionally, management has held initial proactive discussions with its current lending group regarding expanded financial flexibility. The company has longstanding relationships within its lending group, providing support for such discussions. The company also drew approximately $35M on its revolving line of credit in the first quarter to increase its cash position and provide a cushion against any unforeseen liquidity disruptions. As a result of the significant uncertainty regarding current market conditions and difficulty in estimating the ultimate financial impact to the organization, the company is withdrawing 2020 financial guidance issued on February 28. The company will provide a business update on the first quarter earnings call, tentatively scheduled for late April 2020, and will look to reinstate financial guidance when there is improved visibility into expected results.
|Over a month ago|
Aegion reports Q4 adj. EPS 39c, consensus 40c » 18:2302/2602/26/20
Reports FY19 revenue…
Reports FY19 revenue $1.21B, consensus $1.22B. CEO Charles Gordon says: "2019 was a turning point for Aegion. After several years of earnings volatility, we achieved the adjusted earnings targets we laid out at the start of the year, which included modest growth in adjusted earnings per share and improved profitability margins. Our results reaffirm the effectiveness of the multi-year restructuring efforts to reshape Aegion into a more streamlined and focused company. Looking to 2020, we enter the year with a strong backlog position and expect to capitalize on growth opportunities from market tailwinds in each of our three core segments. We are targeting solid top-line growth and a significant increase in adjusted earnings per share in 2020, driven by the successful commercialization of several new technology offerings within Infrastructure Solutions and a robust Middle East project funnel within Corrosion Protection."
Aegion awarded three-year industrial services contract » 09:0602/0602/06/20
Aegion Corporation announced that a subsidiary of the Energy Services segment, Brinderson, has been awarded a three-year contract as the primary onsite mechanical services contractor for a major refinery in Salt Lake City, Utah, providing a variety of embedded services including daily onsite maintenance, small capital projects and turnaround support. The transition is expected to be completed in the first half of 2020. Brinderson will also implement several of its process tools aimed at performance improvement, including the use of workface planning in the execution of capital construction projects.
|Over a quarter ago|
Aegion Board of Directors authorizes program to repurchase up to 2M shares » 09:0812/1612/16/19
Aegion Corporation's Board of Directors authorized a program to repurchase up to two million shares of the Company's common stock in open market transactions. The Board of Directors' authorization does not have a fixed expiration date. The Company is currently executing a repurchase program that will expire upon the Company's repurchase of two million shares of Company common stock under that program. Through November 30, 2019, the Company had repurchased nearly 1.5 million shares through the existing program.
Aegion's Insituform awarded $14M wastewater pipeline rehabilitation contracts » 10:3511/2211/22/19
Aegion Corporation announced that its subsidiary, Insituform Technologies, LLC, has been awarded two contracts totaling over $14M from a municipal agency in New York. The combined projects require Insituform to rehabilitate more than 50 miles of 8- to 48-inch diameter wastewater pipelines using Insituform cured-in-place pipe throughout residential and commercial areas. Insituform expects to complete the installations by the end of June 2020. Since 2015, Insituform has rehabilitated more than 90 miles of 8- to 24-inch diameter wastewater pipelines for the municipality using Insituform CIPP.
Aegion CEO says in position to deliver significant earnings expansion in 2020 » 17:4010/3010/30/19
Aegion CEO Charles Gordon…
Aegion CEO Charles Gordon said, Aegion's third quarter results achieved expectations and were highlighted by another excellent quarter for the Infrastructure Solutions segment, which continues to benefit from strong productivity from our cornerstone wastewater CIPP business. We ended the quarter with solid contract backlog, driven by robust new orders growth from the North America CIPP business and key wins in the Middle East as we execute our plan to capitalize on significant growth opportunities in the region. We expect a strong finish to the year and are reaffirming expectations for modest growth in adjusted EPS in 2019. Additionally, we are well positioned to deliver significant earnings expansion in 2020 as we move forward with a more focused strategy and leverage our market-leading positions to differentiate through technology investments and capture multiple growth opportunities within our three segments."
Aegion CEO reaffirms expectations for modest growth in adjusted EPS in FY19 17:3910/3010/30/19
Aegion reports Q3 EPS 40c, consensus 40c » 17:3810/3010/30/19
Reports Q3 revenue…
Reports Q3 revenue $308.8M, consensus $326.82M.
Aegion subsidiary awarded $6.9M contract » 16:0110/0910/09/19
Aegion Corporation announced that its subsidiary, Insituform Technologies, has been awarded a two-year term contract valued at $6.9M from Miami-Dade County in Florida. The contract includes an option for the county to renew for an additional two years on a yearly basis. Insituform will receive several work releases beginning in late 2019 and expects to rehabilitate more than 26 miles of 8- to 36-inch diameter wastewater pipelines using Insituform cured-in-place pipe throughout the county over the two-year period.
Aegion's Insituform awarded $15.7M wastewater pipeline rehabilitation contract » 13:0409/3009/30/19
Aegion Corporation announced that its subsidiary, Insituform Technologies, has been awarded a $15.7M contract in Georgia to rehabilitate more than 22 miles of small-, medium- and large-diameter wastewater pipelines using Insituform cured-in-place pipe, primarily in residential areas. Insituform expects to begin the work in October 2019 and complete the project within 12 months.