The financial results
Aegion Corporation’s Non-GAAP second quarter 2015 diluted earnings per share from continuing operations – excluding restructuring and acquisition-related expenses – were US$0.35 compared to US$0.34 in the second quarter of 2014. On a GAAP basis, second quarter 2015 earnings per diluted share from continuing operations were US$0.24 compared to US$0.33 in the second quarter of 2014.
Consolidated cash and cash equivalents at 30 June 2015 were US$173.1 million, a US$37.1 million increase from 31 March 2015.
Consolidated contract backlog at 30 June 2015 was US$760.3 million, a decline of 8.3% from 30 June 2014. Excluding contract backlog from the exit of several international contracting markets and a large Corrosion Protection contract cancelled in the third quarter of 2014, its consolidated contract backlog was US$756.9 million; a decline of 3.4% from 30 June 2014. Aegion’s second quarter 2015 pre-tax benefits from October 2014 restructuring were approximately US$2.5 million – or US$0.05 per diluted share – in line with expectations.
The strengthening of the US$ against various international currencies negatively impacted the company’s second quarter 2015 revenues by US$10.6 million and operating income results by US$0.8 million (pre-tax); US$0.02 per diluted share, compared to the second quarter of 2014.
Comments on Aegion’s second quarter
Charles R. Gordon, Aegion’s President and Chief Executive Officer, commented: “Our second quarter 2015 financial results demonstrate that Aegion’s diversified businesses can generate strong results, even when our upstream energy business is under pressure this year from lower oil prices… infrastructure solutions and the downstream portion of energy services, delivered strong results in the quarter. Our financial position remains healthy, with strong first half operating cash flow, and near record cash balances at the end of June. We estimate the negative impact on second quarter earnings from certain of our businesses with the most exposure to the upstream energy sector, was approximately US$0.09 per diluted share, as compared to the prior year… [Yet] it is becoming more apparent that the low price range for oil and gas may continue for some time. As a result, we are evaluating how we may adapt our upstream technologies and services to better meet this evolving new reality.”
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Edited from press release by Stephanie Roker
Read the article online at: https://www.worldpipelines.com/business-news/31072015/aegion-2q15/