“The foundation for our growth strategy is the sustainable end markets for our technologies and services in North America, the Middle East, South America and portions of Asia. The demand for energy remains favorable as does the outlook for commercial and industrial structural rehabilitation. We are well positioned in North America and Asia-Pacific for consistency and cash generation in the water and wastewater rehabilitation markets. Although we have not completed our 2014 budget planning process, our existing backlog for 2014 together with 2013 opportunities that have recently shifted into 2014 form a solid foundation for growth. Our expectation is to build on that foundation with prospects in our water and wastewater businesses, significant growth prospects for Brinderson and continued strength in strategic elements of our Energy and Mining platform, most notably Corrpro and United Pipeline Systems.”

Consolidated Highlights

Third Quarter 2013 versus Third Quarter 2012

Revenues increased $44.8 million, or 17.0 percent. Brinderson contributed $47.9 million in revenues in its first quarter as part of Aegion. North American Water and Wastewater revenues increased $18.2 million from increased volume across all geographies. Partially offsetting the increase was a $10.9 million decrease in revenues from our Bayou Coatings operations in New Iberia, Louisiana due to a lull in pipe coating project activity for the oil and gas market in the Gulf of Mexico. Revenues for United Pipeline Systems declined $9.7 million due to the near completion of the large Moroccan project begun last year and curtailment in capital and maintenance spending in the South American mining sector and the Mexican oil and gas market. Revenues for the Commercial and Structural platform were down $3.1 million due to lower workable backlog and customer driven project delays in North America and Asia.

Gross profit increased 10.3 percent, or $6.5 million, to $69.4 million. Brinderson contributed $8.5 million. North American Water and Waster increased gross profit by $4.2 million. The International Water and Wastewater segment increased gross profit by $2.2 million from improved project activity in Australia and Malaysia and a reduction in the 2012 losses in Singapore. United Pipeline Systems saw gross profit decline from the near completion of the large Moroccan project and a curtailment in market activity in Mexico and South America. The soft market conditions in 2013 for pipe coating activities supporting oil and gas development in the Gulf of Mexico had a negative impact on gross profit for Bayou in New Iberia, Louisiana as there was insufficient pipe volume to absorb plant fixed costs. Gross profit for the Commercial and Structural platform declined $3.3 million, primarily from challenges in North America. Consolidated gross margins declined by 130 basis points because of lower margin contribution from Brinderson, lower margins associated with the Moroccan project and a lack of higher margin projects from the prior year at Bayou and pipeline strengthening and rehabilitation projects for Commercial and Structural.

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