Aegion Corporation (“Aegion” or the “Company”) (Nasdaq Global Select Market: AEGN) hosts its 2014 investor day event today in New York City with a comprehensive review of its plans for sustainable earnings growth, increasing cash flow from operating activities and improving return on invested capital. “Aegion is well positioned to take advantage of favorable market conditions in the energy, mining, wastewater pipeline and commercial infrastructure industries,” said Chuck Gordon, Interim Chief Executive Officer. “Our diverse portfolio of technologies and services dedicated to the maintenance, rehabilitation and protection of critical pipelines, industrial facilities and commercial structures gives us confidence to set a long-term target of 15 percent annual earnings per share growth, on average and over time. The objective for cash flow from operating activities is to increase annually at the rate of earnings per share growth or greater. The expected earnings per share growth also establishes the foundation for a greater than 100 basis point annual improvement in return on invested capital with the goal of reaching 10 percent to 12 percent in 2017.” The investor day event will outline the strategic imperatives needed to achieve the Company’s growth objectives through at least 2017.
- The Energy and Mining platform has expanded its comprehensive capabilities to target the growing upstream, midstream and downstream oil and gas segments in North America. Brinderson not only provides access to the upstream and downstream markets, but brings a greater balance between more predictable and growing recurring sources of revenues compared to the project-oriented nature of Aegion’s key pipeline protection businesses. There are promising prospects in the Middle East to support the execution of a strategy to jointly market Corrpro, United Pipeline Systems and CRTS across the region. With these favorable market drivers, Energy and Mining plans to grow revenues 10 percent to 12 percent annually from the forecast of nearly $800 million in 2014 to $1.1 billion to $1.2 billion in 2017.
- The Commercial and Structural platform seeks to grow its already strong position in the North American fiber-reinforced polymer market through innovation, a shift to a product-centric sales strategy and investments to significantly enhance its operating capabilities. The global outlook for the Fibrwrap® technology appears very promising through government-led infrastructure rehabilitation efforts, especially to address seismic concerns, in key Asian markets. The objective is to grow revenues for Commercial and Structural from the forecast of $70 million to $85 million in 2014 to $120 million to $130 million in 2017.
- The Water and Wastewater platform has delivered on its promise made in 2011 for greater consistency through improved execution. The North American cured-in-place pipe market is enjoying a cycle of elevated and sustained municipal expenditures that benefit Insituform’s market leading position. The international markets are stable in Europe and there are select opportunities for growth in the Asia-Pacific region. Water and Wastewater plans to grow revenues three percent to five percent annually reaching $570 million to $590 million in 2017, while improving operating efficiencies.
Webcast and Presentation MaterialsAegion will stream audio and video of the investor day event live via webcast from 9:00 am to noon Eastern Daylight Time today. The event will begin with an overview by Interim Chief Executive Officer Chuck Gordon, followed by a series of presentations by operating executives representing the Energy and Mining, Water and Wastewater and Commercial and Structural platforms. A formal question and answer session will conclude the event. Access to the webcast and presentation book may be found at www.aegion.com under the 2014 Investor Day link on the main page. A replay of the video webcast will be available following the presentation. To access the event, link to the website five to ten minutes prior to the scheduled time. About Aegion Corporation Aegion Corporation is a global leader in infrastructure protection and maintenance, providing proprietary technologies and services: (i) to protect against the corrosion of industrial pipelines; (ii) to rehabilitate and strengthen water, wastewater, energy and mining piping systems and buildings, bridges, tunnels and waterfront structures; and (iii) to utilize integrated professional services in engineering, procurement, construction, maintenance and turnaround services for a broad range of energy related industries. Business activities include manufacturing, distribution, maintenance, construction, installation, coating and insulation, cathodic protection, research and development and licensing. More information about Aegion can be found at www.aegion.com. Forward-Looking Statements The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. The Company makes forward-looking statements in this news release that represent the Company’s beliefs or expectations about future events or financial performance. These forward-looking statements are based on information currently available to the Company and on management’s beliefs, assumptions, estimates or projections and are not guarantees of future events or results. When used in this document, the words “anticipate,” “estimate,” “believe,” “plan,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Such statements are subject to known and unknown risks, uncertainties and assumptions, including those referred to in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the Securities and Exchange Commission on February 28, 2014, and in the Company’s subsequent quarterly reports on Form 10-Q. In light of these risks, uncertainties and assumptions, the forward-looking events may not occur. In addition, the Company’s actual results may vary materially from those anticipated, estimated, suggested or projected. Except as required by law, the Company does not assume a duty to update forward-looking statements, whether as a result of new information, future events or otherwise. Investors should, however, review additional disclosures made by the Company from time to time in its filings with the Securities and Exchange Commission. Please use caution and do not place reliance on forward-looking statements. All forward looking-statements made by the Company in this news release are qualified by these cautionary statements.
Aegion ® , Insituform ® , the Aegion ® logo, United Pipeline Systems ® , Corrpro ® , Fibrwrap ® , Brinderson ® , CRTS ™ and our other trademarks referenced herein are the registered and unregistered trademarks of Aegion Corporation and its affiliates.