Strong Q3’19 results in line with expectations; Reaffirming 2019 guidance and targeting significant earnings growth in 2020ST. LOUIS, Oct. 30, 2019 (GLOBE NEWSWIRE) —A PDF accompanying this announcement is available at http://ml.globenewswire.com/Resource/Download/73b03d8b-b3c3-4d25-b12d-f6d1774be8baQ3’19 earnings per diluted share were $0.19 compared to a loss per diluted share of $0.01 in Q3’18. Q3’19 adjusted (non-GAAP)¹ earnings per diluted share were $0.40 compared to $0.45 in Q3’18.Revenues for Q3’19 were $309 million. Excluding exited or to be exited operations, revenues on a same-store basis declined 6%, primarily driven by the expected reduction in large coating project contributions from Corrosion Protection.Adjusted gross margins of nearly 22% were in line with prior year levels and adjusted operating margins exceeded 6%, led by strong contributions from the Infrastructure Solutions segment, which partially offset the lack of high-margin coating project contributions from Corrosion Protection.Contract backlog as of September 30, 2019 was $683 million. Excluding the impacts of exited or to be exited businesses, backlog increased 5% compared to prior year levels driven by a 16% increase in new orders in Q3’19 compared to Q3’18.¹ Adjusted (non-GAAP) results exclude certain charges related to the Company’s restructuring activities, acquisition and divestiture-related activities, goodwill impairment, definite-lived intangible asset impairment and impacts from the Tax Cuts and Jobs Act. Reconciliation of adjusted results is included below.Q3’19 HIGHLIGHTSInfrastructure Solutions delivered its third consecutive quarter of year-over-year improvement in adjusted operating income, with adjusted operating margins reaching nearly 13%, driven by continued productivity gains in North America and the exit of underperforming international CIPP operations.Corrosion Protection delivered adjusted gross margins of nearly 23%, with strength in industrial lining activities helping to offset the impact of lost contributions from the large coating projects completed in the prior year.Energy Services delivered a fourfold increase in adjusted operating income, led by improvements in maintenance and construction results.Year-to-date operating cash flows of $32 million more than doubled the prior year.“Aegion’s third quarter results achieved expectations and were highlighted by another excellent quarter for the Infrastructure Solutions segment, which continues to benefit from strong productivity from our cornerstone wastewater CIPP business.We ended the quarter with solid contract backlog, driven by robust new orders growth from the North America CIPP business and key wins in the Middle East as we execute our plan to capitalize on significant growth opportunities in the region.We expect a strong finish to the year and are reaffirming expectations for modest growth in adjusted EPS in 2019. Additionally, we are well positioned to deliver significant earnings expansion in 2020 as we move forward with a more focused strategy and leverage our market-leading positions to differentiate through technology investments and capture multiple growth opportunities within our three segments.”Charles R. Gordon, President and Chief Executive Officer
Selected Consolidated Financial HighlightsNet income (loss) and diluted earnings (loss) per share includes non-controlling interest
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