Aegion Corporation (Nasdaq Global Select Market: AEGN) today reported financial results for the third quarter and first nine months of 2013. Excluding one-time items defined as non-GAAP, net income from continuing operations in the third quarter totaled $17.0 million, or $0.44 per diluted share, compared to $20.4 million, or $0.51 per diluted share, in the prior year quarter. Net income from continuing operations for the first nine months of 2013 was $34.0 million, or $0.87 per diluted share, compared to net income of $41.0 million, or $1.04 per diluted share, in the first nine months of 2012.
J. Joseph Burgess, Aegion’s President and Chief Executive Officer, commented, “While our North American Water and Wastewater business performed exceptionally well in the third quarter, results from our Energy and Mining and Commercial and Structural businesses did not meet expectations. Each of our businesses will execute the schedule of project activity needed to deliver strong performance in the fourth quarter, while lower than expected results in the third quarter require a modest reduction in our full year non-GAAP diluted earnings per share guidance to $1.45 to $1.50, excluding the expected $0.08 to $0.10 per share contribution from Brinderson. Successful execution of our initiatives will give us the opportunity to end the year above this range.”
Fourth Quarter and Full Year Outlook
The outstanding third quarter performance by our North American Water and Wastewater business has provided momentum for the final quarter of the year. Although the potential for adverse weather late in the year could limit cured-in-place pipe installation activity, a record backlog of $242 million and the production schedule for October and November are positive signs that this business will be a key catalyst for Aegion’s performance in the fourth quarter, finishing 2013 with expected full year revenues of $345 to $350 million and operating margins in the range of 8 to 9 percent.