SOURCE: Willbros Group, Inc.

August 09, 2007 16:52 ET

Willbros Reports Final Results for Second Quarter 2007

HOUSTON, TX--(Marketwire - August 9, 2007) - Willbros Group, Inc. (NYSE: WG) today filed its Form 10-Q for the period ended June 30, 2007, which reported its final results, including discontinued operations. In our August 7, 2007 press release, the Company discussed the results from continuing operations. The results from discontinued operations were not discussed at that time because the Company was considering certain accounting issues regarding the sale of our Nigerian operations and the agreement in principle for the Global Settlement Agreement (see further information below) that we are currently finalizing with the Nigerian purchaser. The information provided below is thus entirely supplemental to our August 7, 2007 press release and there has been no change in our results from continuing operations as previously reported. Revenue for the second quarter 2007 was $156.7 million, compared to first quarter revenue of $206.7 million. The net loss for the second quarter was $44.2 million or $1.61 per share, including a loss from discontinued operations of $3.9 million or $0.14 per share. The attached tables include the final results for second quarter 2007, including reconciliations of non-GAAP financial measures discussed in the press release issued August 7, 2007 and the conference call on the same date.

Discontinued Operations

Willbros reported that it was close to finalizing negotiations, in the form of a Global Settlement Agreement, with Ascot Offshore Nigeria Limited ("Ascot"), the purchaser of its former franchise in Nigeria, to resolve certain important post closing matters, including primarily the working capital purchase price adjustment and certain indemnity issues. Based on the agreement in principle with Ascot on these negotiations, as of June 30, 2007, the Company increased liabilities at June 30, 2007 related to sale contingencies by $3.6 million to $25 million. The Company has recognized a loss of $1.3 million on the sale of its Nigerian assets and operations. Upon completion of this Global Settlement Agreement, Willbros believes its remaining risk associated with its former Nigerian operations will be significantly reduced.

Willbros Group, Inc. is an independent contractor serving the oil, gas and power industries, providing engineering, construction and engineering, procurement and construction ("EPC") services to industry and government entities worldwide. For more information on Willbros, please visit our web site at www.willbros.com.

This announcement contains forward-looking statements. All statements, other than statements of historical facts, which address activities, events or developments the Company expects or anticipates will or may occur in the future, are forward-looking statements. A number of risks and uncertainties could cause actual results to differ materially from these statements, including those discussed above and such things as the potential for additional investigations; the possible losses arising from the discontinuation of operations and the sale of the Nigeria assets; fines and penalties by government agencies; the outcome of the current Securities and Exchange Commission, Office of Foreign Assets Control and Department of Justice investigations; the identification of one or more other issues that require restatement of one or more prior period financial statements; the existence of material weaknesses in internal controls over financial reporting; availability of quality management; availability and terms of capital; changes in, or the failure to comply with, government regulations; ability to remain in compliance with, or obtain waivers under, the Company's loan agreements and indentures; the promulgation, application, and interpretation of environmental laws and regulations; future E&P capital expenditures, oil, gas, gas liquids and power prices and demand, the amount and location of planned pipelines, the effective tax rate of the different countries where the work is being conducted, development trends of the oil, gas and power industries, changes in the political and economic environment of the countries in which the Company has operations, as well as other risk factors described from time to time in the Company's documents and reports filed with the SEC. The Company assumes no obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise.


TABLES TO FOLLOW

                   WILLBROS GROUP, INC.
        (In Thousands, Except Per Share Amounts)


                          Three Months Ended         Six Months Ended
                               June 30,                  June 30,
                        ------------------------  ------------------------
                            2007         2006         2007         2006
                        -----------  -----------  -----------  -----------
Statement of Operations
 Data
  Contract revenue
    Construction        $   111,949  $    87,235  $   282,654  $   166,383
    Engineering              20,801       19,924       40,456       35,405
    EPC                      23,993       11,969       40,342       24,927
                        -----------  -----------  -----------  -----------
                            156,743      119,128      363,452      226,715
  Contract cost
    Construction             99,558       78,551      264,562      155,260
    Engineering              14,543       15,734       30,132       29,306
    EPC                      23,768       11,462       37,007       22,644
                        -----------  -----------  -----------  -----------
                            137,869      105,747      331,701      207,210
  Contract income
    Construction             12,391        8,684       18,092       11,123
    Engineering               6,258        4,190       10,324        6,099
    EPC                         225          507        3,335        2,283
                        -----------  -----------  -----------  -----------
                             18,874       13,381       31,751       19,505
    Depreciation and
     amortization             4,310        2,924        7,766        5,915
    General and
     administrative          13,422       11,636       24,847       22,041
    Government fines and
     penalties               24,000            -       24,000            -
                        -----------  -----------  -----------  -----------
 Operating loss             (22,858)      (1,179)     (24,862)      (8,451)

 Other income
  (expense):
    Interest - net             (187)      (1,787)      (1,077)      (3,423)
    Other - net                (502)        (452)        (692)        (327)
    Loss on early
     extinguishment
     of debt                (15,375)           -      (15,375)           -
                        -----------  -----------  -----------  -----------
                            (16,064)      (2,239)     (17,144)      (3,750)
                        -----------  -----------  -----------  -----------
  Loss before income
   taxes                    (38,922)      (3,418)     (42,006)     (12,201)
  Provision for income
   taxes                      1,457        1,686        1,712        1,432
                        -----------  -----------  -----------  -----------
  Loss from continuing
   operations               (40,379)      (5,104)     (43,718)     (13,633)
  Loss from
   discontinued
   operations                (3,860)     (33,048)     (12,368)     (29,113)
                        -----------  -----------  -----------  -----------
  Net loss              $   (44,239) $   (38,152) $   (56,086) $   (42,746)
                        ===========  ===========  ===========  ===========
  Basic loss per share
    Continuing
     operations         $     (1.47) $     (0.24) $     (1.65) $     (0.63)
    Discontinued
     operations               (0.14)       (1.53)       (0.47)       (1.36)
                        -----------  -----------  -----------  -----------
                        $     (1.61) $     (1.77) $     (2.12) $     (1.99)
                        ===========  ===========  ===========  ===========
  Diluted loss per share
    Continuing
     operations         $     (1.47) $      (.24) $     (1.65) $      (.63)
    Discontinued
     operations               (0.14)       (1.53)       (0.47)       (1.36)
                        -----------  -----------  -----------  -----------
                        $     (1.61) $     (1.77) $     (2.12) $     (1.99)
                        ===========  ===========  ===========  ===========

Cash Flow Data
Continuing operations:
 Cash provided by (used
  in):
   Operating activities $    13,346  $    (8,692) $     6,006  $   (10,426)
   Investing activities     (25,911)       3,649      102,877       21,312
   Financing activities     (17,907)      (3,400)     (22,092)      11,181
   Foreign exchange
    effects                    (636)        (158)        (453)        (118)
Discontinued operations      (6,569)     (16,432)     (16,219)     (45,866)

Other Data (Continuing
 Operations) (2)
  Weighted average
   shares outstanding:
    Basic                    27,516       21,539       26,505       21,442
    Diluted                  27,516       21,539       26,505       21,442
  EBITDA (2)            $   (34,425) $     1,293  $   (33,163) $    (2,863)
  Capital expenditures       (8,334)      (1,594)     (10,836)      (5,157)

Reconciliation of
 Non-GAAP Financial
 Measure

 EBITDA (2)
   Net loss,
    continuing
    operations          $   (40,379) $    (5,104) $   (43,718) $   (13,633)
   Interest - net               187        1,787        1,077        3,423
   Income taxes               1,457        1,686        1,712        1,432
   Depreciation and
    amortization              4,310        2,924        7,766        5,915

                        -----------  -----------  -----------  -----------
   EBITDA               $   (34,425) $     1,293  $   (33,163) $    (2,863)
                        ===========  ===========  ===========  ===========

 Net loss before
  special items (3)
  Net loss, continuing
   operations           $   (40,379) $    (5,104) $   (43,718) $   (13,633)
  Government fines and
   penalties                 24,000            -       24,000            -
  Loss on early
   extinguishment of
   debt                      15,375            -       15,375            -
                        -----------  -----------  -----------  -----------
  Loss before special
   items                $    (1,004) $    (5,104) $    (4,343) $   (13,633)
                        ===========  ===========  ===========  ===========

 Basic loss per share
  before special items
   Continuing
    operations          $     (1.47) $     (0.24) $     (1.65) $     (0.63)
   Government fines
    and penalties              0.87            -         0.91            -
   Loss on early
    extinguishment
    of debt                    0.56            -         0.58            -
                        -----------  -----------  -----------  -----------
   Loss per share
    before special
    items               $     (0.04) $     (0.24) $     (0.16) $     (0.63)
                        ===========  ===========  ===========  ===========



Balance Sheet Data        6/30/2007    3/31/2007   12/31/2006
                        -----------  -----------  -----------
  Cash and cash
   equivalents          $   107,762  $   145,439  $    37,643
  Working capital           112,823      161,046      170,825
  Total assets              406,568      410,714      588,254
  Total debt                136,420      167,789      166,152
  Stockholders' equity       98,552       84,569       97,931

Backlog Data (1)
  By Reporting Segment:
    Construction        $   808,617  $   397,080  $   320,461
    Engineering              90,943       92,615      109,122
    EPC                     144,686      158,594      172,689
                        -----------  -----------  -----------
                        $ 1,044,246  $   648,289  $   602,272
                        ===========  ===========  ===========
By Geographic Area:
   North America          1,009,524      611,630      565,408
   Middle East               34,722       36,659       36,864
                        -----------  -----------  -----------
                        $ 1,044,246  $   648,289  $   602,272
                        ===========  ===========  ===========


(1)  Backlog is anticipated contract revenue from projects for which award
     is either in hand or assured.
(2)  EBITDA is earnings before net interest, income taxes and depreciation
     and amortization. EBITDA as presented may not be comparable to other
     similarly titled measures reported by other companies. The Company
     believes EBITDA is a useful measure of evaluating its financial
     performance because of its focus on the Company’s results from
     operations before net interest, income taxes, depreciation and
     amortization. EBITDA is not a measure of financial performance under
     generally accepted accounting principles. However, EBITDA is a common
     alternative measure of operating performance used by investors,
     financial analysts and rating agencies. A reconciliation of EBITDA to
     net income is included in the exhibit to this release.
(3)  Loss before special items (and the related amounts per share), a
     non-GAAP financial measure, excludes special items that management
     believes affect the comparison of results for the periods presented.
     Management also believes results excluding these items are more
     comparable to estimates provided by securities analysts and therefore
     are useful in evaluating operational trends of the company and its
     performance relative to other engineering and construction companies.

Contact Information

  • CONTACT:
    Michael W. Collier
    Vice President, Investor Relations
    Willbros USA, Inc.
    (713) 403-8016

    Connie Dever
    Director, Strategic Planning
    Willbros USA, Inc.
    (713) 403-8035