Aegion Corporation (Nasdaq Global Select Market: AEGN) today reported financial results for the first quarter of 2014. Reported GAAP net income from continuing operations totaled $4.5 million, or $0.12 per diluted share, compared to $3.6 million, or $0.09 per diluted share, in the prior year quarter. Excluding adjustments, net income from continuing operations totaled $4.8 million, or $0.13 per diluted share, in the first quarter of 2014 (non-GAAP 1).
J. Joseph Burgess, Aegion’s President and Chief Executive Officer, commented, “The results in the first quarter were ahead of our expectation as the North American operations of our Water and Wastewater platform increased crew utilization and productivity due to more favorable weather conditions in the month of March. The performance of our other businesses was within prior expectations. We believe market conditions remain favorable for the key businesses that are predicted to drive our performance in 2014. This is reflected by our solid backlog position at the end of the first quarter, which affirms our outlook for the full year and expectations for non-GAAP earnings per share from continuing operations to be in the range of $1.50 to $1.70.”
2014 Updated Outlook
Sales acquisitions in the United States increased during the first quarter compared to the prior year quarter for the corrosion engineering and cathodic protection business by 36 percent and for the industrial linings business by 18 percent; both are positive indicators for the remainder of the year. The outlook in the Middle East remains favorable for these businesses and the robotic coatings business as progress continues on the offshore Saudi Aramco Wasit project, which is expected to be completed in late 2014 or early 2015. Brinderson increased its downstream maintenance billable hours in the quarter to a record level from existing and multiple new large contract awards. Brinderson is actively bidding several large upstream opportunities in the coming months. Water and Wastewater’s North American business enters the second quarter with record backlog driven by a 21 percent increase in sales acquisitions in the first quarter of 2014 compared to the first quarter of 2013. The increase in sales acquisitions for these businesses was a contributor to the $748.7 million consolidated backlog position as of March 31, 2014. These larger businesses account for nearly 80 percent of Aegion’s expected revenues and a substantial portion of the anticipated operating income in 2014.