Williams Industrial Services Group Reports Third Quarter 2019 Financial Results

ATLANTA–(BUSINESS WIRE)–Williams Industrial Companies Group Inc. (OTCQX: WLMS) (“Williams” or the “Firm”), a building and upkeep companies firm, right this moment reported its monetary outcomes for its third quarter and 9 months ended September 30, 2019. Until in any other case famous, quantities and disclosures all through this launch relate to persevering with operations.

Tracy Pagliara, President and CEO of Williams, commented, “Our third quarter outcomes are validation that we’re on monitor to fulfill our 2019 targets, as follows:

• Obtain our 2019 monetary steering;
• Develop significant backlog with a extra diversified income base, in step with our strategic plan;
• Refinance our debt with a purpose to capitalize on the numerous potential to scale our enterprise; and
• Strengthen our company infrastructure to additional advance our strategic plan, together with our deliberate uplisting to a significant change in 2020 to drive better shareholder worth.

We’re on monitor at nine-months into 2019 to realize our income and adjusted EBITDA expectations. Importantly, because the finish of the third quarter, we’ve got been diligently working to finalize orders that might increase our whole backlog by yr finish to roughly $465 million to $515 million, together with convertible backlog for 2020 of roughly $195 million to $215 million.”

Mr. Pagliara added, “We’re aggressively pursuing the completion of our debt refinancing to supply extra working capital to fund our strategic progress initiatives and the sturdy demand for our companies. The refinancing course of is anticipated to be accomplished by yr finish. As well as, we even have filed a registration assertion for a $7.zero million rights providing with a full backstop by our largest shareholder. The proceeds from the rights providing will present extra working capital for our progress.”

Third Quarter 2019 Monetary Outcomes Overview (in contrast with the prior-year interval except famous in any other case)

Third Quarter 2019 Income Bridge*

Income within the third quarter grew $three.four million, or 6.three%, as progress in Canada and different nuclear companies and fossil gasoline venture exercise greater than offset fluctuations in demand from timing on venture engagements in decommissioning and different markets. The expansion in nuclear venture exercise in Canada was the results of the Firm coming into this new finish market throughout 2018.

Gross revenue was $6.zero million, or 10.5% of income, in contrast with $10.2 million, or 19.1% of income. Final yr’s third quarter gross revenue and margin included the early termination of a fixed-price nuclear venture that contributed $three.three million to gross revenue. As well as, gross revenue and margin within the 2019 third quarter had been impacted by a $1.three million loss on a fixed-price fossil venture.

Working bills had been $5.2 million, down $four.three million, or 45.2%. As a proportion of income, promoting, basic and administrative bills (“SG&A”) had been 9.1%. The appreciable discount in bills was the results of the finished restructuring achievements in 2018, together with $1.four million decrease compensation and different worker associated bills. The third quarter of 2018 additionally had $1.four million of restructuring bills.

Curiosity expense was $1.5 million for the quarter in contrast with $three.6 million within the prior-year interval, reflecting decrease rates of interest.

Yr-to-Date 2019 Monetary Outcomes Overview (in contrast with the prior-year interval except famous in any other case)

Yr-to-Date 2019 Income Bridge*

Income for the primary 9 months of 2019 was up $34.four million, or 23.eight%, primarily resulting from work associated to a scheduled nuclear outage within the second quarter, progress from entry into the nuclear trade in Canada, enlargement into the midstream oil & fuel trade and elevated income from different nuclear tasks. This progress was partially offset by decrease income from decommissioning resulting from timing of a buyer’s venture.

Gross revenue was $21.eight million, down $1.6 million from the prior-year interval. Gross margin was 12.2% and 16.2%, within the 2019 and 2018 intervals, respectively. The decline in gross margin from the prior-year interval was for causes much like the quarter, primarily the early termination of a lump sum nuclear venture that contributed $three.four million to gross revenue within the 2018 nine-month interval.

Working bills had been down $10.2 million to $17.zero million, due largely to the discount in employee-related bills, together with severance, from the restructuring that was accomplished on the finish of 2018, and decreased skilled charges associated to restructuring and the Firm’s restatement course of. As a proportion of income, SG&A was 9.four%.

Stability Sheet

As of September 30, 2019, Williams had $2.5 million in money, together with restricted money. Throughout 2018, the Firm refinanced its term-debt facility with a four-year, $35.zero million time period mortgage and in addition secured a three-year, $15.zero million revolving credit score facility.

The Firm plans to refinance its debt by the tip of 2019 to supply better capability to fund its progress initiatives. Williams individually introduced the submitting of a registration assertion for a $7.zero million rights providing with a full backstop dedication by the Firm’s largest shareholder.

Complete backlog as of September 30, 2019 was $390.6 million, in contrast with $409.zero million at June 30, 2019 and $501.6 million at December 31, 2018. The discount in backlog from the tip of 2018 primarily resulted from the work accomplished on a buyer’s deliberate nuclear outage and completion of a number of tasks within the quarter and 9 month interval.

Williams estimates that roughly $151.three million, or 38.7% of whole backlog, will likely be transformed to income within the subsequent twelve months. This compares with $138.three million of backlog at June 30, 2019, and $173.three million of backlog at December 31, 2018, that the Firm anticipated could be transformed to income over the succeeding twelve-month interval.

Based mostly on new awards, pending buy orders and anticipated pipeline wins within the fourth quarter, Williams expects whole backlog at yr finish to be roughly $465 million to $515 million, together with convertible backlog for 2020 of roughly $195 million to $215 million.

Outlook

*See Observe 1—Non-GAAP Monetary Measures for data relating to using adjusted EBITDA and forward-looking non-GAAP monetary measures.

Mr. Pagliara concluded, “After the profitable restructuring of our enterprise in 2018, we started this yr with nice optimism and resolve to take Williams to the following degree. After finalizing our strategic plan in early January, we’ve got vigorously pursued our targets for 2019 to advance that plan. We stay on monitor to fulfill every of these targets. Amongst different issues, the anticipated diversified progress in our backlog by yr finish is a validation of the power of our plan and the dedication of our management group to satisfy the large potential of Williams. To that finish, we plan to finish 2019 sturdy and for 2020 to be one other yr of income and profitability progress to reward our shareholders for his or her continued persistence and assist.”

Webcast and Teleconference

The Firm will host a convention name on Friday, November 15, 2019, at 10:00 a.m. Japanese time. A webcast of the decision and an accompanying slide presentation will likely be out there at www.wisgrp.com. To entry the convention name by phone, listeners ought to dial 201-493-6780.

An audio replay of the decision will likely be out there from 1:00 p.m. Japanese time on the day of the teleconference till the tip of day on November 29, 2019. To take heed to the audio replay, dial 412-317-6671 and enter convention ID quantity 13696050. Alternatively, chances are you’ll entry the webcast replay at http://ir.wisgrp.com/, the place a transcript will likely be posted as soon as out there.

About Williams

Williams Industrial Companies Group has been safely serving to plant house owners and operators improve asset worth for greater than 50 years. The Firm gives a broad vary of building, upkeep and modification, and assist companies to prospects in power, energy and industrial finish markets. Williams’ mission is to be the popular supplier of building, upkeep, and specialty companies via dedication to superior security efficiency, concentrate on innovation, and dedication to delivering unsurpassed worth to its prospects.

Further details about Williams might be discovered on its web site: www.wisgrp.com.

Ahead-looking Assertion Disclaimer

This press launch incorporates “forward-looking statements” throughout the that means of the time period set forth within the Personal Securities Litigation Reform Act of 1995. The forward-looking statements embody statements or expectations relating to the Firm’s potential to understand alternatives and efficiently obtain its progress and strategic initiatives, corresponding to midstream oil & fuel alternatives, water-related tasks and enlargement into Canada, in addition to expectations for future progress of income, profitability and earnings, together with the Firm’s potential to develop its core enterprise, increase its buyer base, enhance backlog and convert backlog to income, in addition to income, profitability and earnings, the Firm’s potential to refinance its current debt and to consummate the proposed rights providing, the Firm’s potential to uplist to a significant change in 2020, the persevering with affect of the Firm’s price discount, reorganization and restructuring efforts, expectations referring to the Firm’s efficiency, anticipated work within the power and industrial markets, and different associated issues. These statements mirror the Firm’s present views of future occasions and monetary efficiency and are topic to quite a lot of dangers and uncertainties, together with its potential to adjust to the phrases of its debt devices and entry letters of credit score, potential to implement strategic initiatives, enterprise plans, and liquidity plans, and talent to implement and keep efficient inside management over monetary reporting and disclosure controls and procedures. Precise outcomes, efficiency or achievements might differ materially from these expressed or implied within the forward-looking statements. Further dangers and uncertainties that would trigger or contribute to such materials variations embody, however usually are not restricted to, lowered want for building or upkeep companies within the Firm’s focused markets, or elevated regulation of such markets, lack of any of the Firm’s main prospects, whether or not pursuant to the lack of pending or future bids for both new enterprise or an extension of current enterprise, termination of buyer or vendor relationships, price will increase and venture price overruns, unexpected schedule delays, poor efficiency by its subcontractors, cancellation of tasks, competitors, together with opponents being awarded enterprise by present prospects, injury to the Firm’s fame, guarantee or product legal responsibility claims, elevated publicity to environmental or different liabilities, failure to adjust to varied legal guidelines and rules, failure to draw and retain highly-qualified personnel, lack of buyer relationships with vital personnel, volatility of the Firm’s inventory worth, deterioration or uncertainty of credit score markets, and adjustments within the financial, social and political situations in america, together with the banking setting or financial coverage.

Different vital elements that will trigger precise outcomes to vary materially from these expressed within the forward-looking statements are mentioned within the Firm’s filings with the U.S. Securities and Alternate Fee, together with the part of the Annual Report on Kind 10-Ok for its 2018 fiscal yr titled “Threat Components.” Any forward-looking assertion speaks solely as of the date of this press launch. Besides as could also be required by relevant regulation, the Firm undertakes no obligation to publicly replace or revise any forward-looking statements, whether or not on account of new data, future occasions or in any other case, and you’re cautioned to not rely on them unduly.

Monetary Tables Comply with.

WILLIAMS INDUSTRIAL SERVICES GROUP INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURE (UNAUDITED)

This press launch incorporates monetary measures not derived in accordance with accounting rules usually accepted in america (“GAAP”). A reconciliation to essentially the most comparable GAAP measure is offered beneath.

NOTE 1—Non-GAAP Monetary Measures

Adjusted EBITDA

Adjusted EBITDA will not be calculated via the appliance of GAAP and isn’t the required type of disclosure by the U.S. Securities and Alternate Fee. Adjusted EBITDA is the sum of our internet revenue (loss) earlier than curiosity expense, internet, and revenue tax (profit) expense and strange features or prices. It additionally excludes non-cash prices corresponding to depreciation and amortization. The Firm’s administration believes adjusted EBITDA is a vital measure of working efficiency as a result of it permits administration, traders and others to guage and examine the efficiency of its core operations from interval to interval by eradicating the affect of the capital construction (curiosity), tangible and intangible asset base (depreciation and amortization), taxes and strange features or prices (stock-based compensation, severance prices, different nonrecurring bills, franchise taxes, loss on different receivables, consulting bills to develop company methods, financial institution restructuring prices, international foreign money acquire, restructuring prices, asset disposition prices and restatement bills), which aren’t all the time commensurate with the reporting interval during which such objects are included. Williams’ credit score facility additionally incorporates ratios primarily based on EBITDA. Adjusted EBITDA shouldn’t be thought-about an alternative choice to internet revenue or as a greater measure of liquidity than internet money flows from working actions, as decided by GAAP, and, subsequently, shouldn’t be utilized in isolation from, however along side, the GAAP measures. Using any non-GAAP measure might produce outcomes that adjust from the GAAP measure and is probably not corresponding to a equally outlined non-GAAP measure utilized by different corporations.

Observe Relating to Ahead-Trying Non-GAAP Monetary Measures

The Firm doesn’t present a reconciliation of forward-looking non-GAAP monetary measures to their comparable GAAP monetary measures as a result of it couldn’t achieve this with out unreasonable effort as a result of unavailability of the knowledge wanted to calculate reconciling objects and as a result of variability, complexity and restricted visibility of the adjusting objects that might be excluded from the non-GAAP monetary measures in future intervals. When planning, forecasting and analyzing future intervals, the Firm does so totally on a non-GAAP foundation with out getting ready a GAAP evaluation.