Aegion Corporation (Nasdaq Global Select Market: AEGN) today reported fourth quarter 2012 net income of $15.2 million, or $0.39 per diluted share (non-GAAP), excluding $0.5 million in pre-tax acquisition-related expenses, compared to net income of $15.2 million, or $0.38 per diluted share (non-GAAP), in the fourth quarter of 2011, excluding $0.6 million in pre-tax acquisition-related expenses. For 2012, net income was $55.4 million, or $1.40 per diluted share (non-GAAP), excluding $3.1 million in pre-tax acquisition-related expenses. Inclusive of these acquisition-related expenses, reported net income was $52.7 million, or $1.33 per diluted share.
J. Joseph Burgess, Aegion’s President and Chief Executive Officer, commented, “2012 was a transformative year for Aegion. We completed a full year of operations across all three operating platforms and, for the first time, our consolidated revenues surpassed $1 billion. We also drove record operating cash flow performance in the business in 2012. As we chart our course for 2013, the momentum we gained in 2012 in our Energy and Mining, Commercial and Structural and North American Water and Wastewater operations creates the foundation for significant earnings growth in 2013.”
“The breadth and importance of the technologies and services we offer is best reflected in a record backlog of $536.1 million at December 31, 2012, and a solid bid table across our three operating platforms. In 2013, we expect our Energy and Mining platform to increase operating margins to 11 percent to 12 percent from a combination of revenue growth and a focus on expanding margins in our Corrpro pipeline integrity business and Bayou operations and the start of CRTS’s offshore project for Wasit in Saudi Arabia. We anticipate our Commercial and Structural platform will continue to expand in 2013 through our continued investments in key end markets in North America, Asia and Latin America. We expect revenues to increase by approximately 30 percent, year-over-year, with operating margins in the mid-to-high teens. North America Water and Wastewater turned the corner in 2012, transforming to compete effectively in a challenging, but modestly improving, municipal wastewater market. For 2013, we plan to improve our project management execution to incrementally expand gross margins currently in the low 20 percent range, and deliver operating margins in the range of high-single digits. We have a much improved backlog in North America entering 2013, giving us confidence of modest revenue growth. Finally, we made the necessary operational changes in 2012 so our international cured-in-place operations in Europe and Asia-Pacific can achieve significantly improved profitability in 2013.”