Aegion Corp. (Aegion), a leading provider of infrastructure maintenance, rehabilitation and protection solutions, have announced financial results for 4Q2020 and full year ended 31 December 2020.
4Q2020 and Full Year 2020 Financial Highlights
- 4Q2020 earnings per diluted share from continuing operations were US$0.26 compared to a loss per diluted share of US$0.50 in 4Q2019. 4Q2020 adjusted (non-GAAP)1 earnings per diluted share from continuing operations were US$0.31 compared to US$0.32 in 4Q2019.
- Financial year 2020 earnings per diluted share from continuing operations were US$0.75 compared to a loss per diluted share of US$0.82 in financial year 2019. Financial year 2020 adjusted (non-GAAP)1 earnings per diluted share from continuing operations were US$1.05 compared to $1.02 in financial year 2019.
- Financial year 2020 revenues from continuing operations were US$808 million. The core Insituform North America business grew revenues by 6% y/y, helping to offset declines primarily related to business exits as well as COVID-19 related project deferrals on larger international coating projects.
- Financial year 2020 adjusted1 gross profit margins from continuing operations were 24.6%, increasing 70 basis points from 2019, primarily driven by improved profitability in the North America Insituform and Corrpro businesses.
- Financial year 2020 adjusted1 operating expenses from continuing operations declined 11% as a result of cost reductions across both operating segments and corporate spending.
- Financial year 2020 adjusted1 operating income from continuing operations of US$57 million increased 7% y/y, driven by a 100 basis-point increase in adjusted operating margins.
- Full-year operating cash flows of US$111 million were 40% higher than the prior year, enabling US$56 million of debt paydown.
1Adjusted (non-GAAP) results exclude certain charges related to the Company’s restructuring activities, divestiture-related activities, impairment of assets held for sale, project warranty accruals, credit facility amendment fees and impacts from the Tax Cuts and Jobs Act.
“Our improved performance from continuing operations in the face of unprecedented market disruption demonstrates the resiliency and commitment of our employees globally as well as the critical need for our products and services,” said Charles R. Gordon, Aegion President and Chief Executive Officer.
“It’s also a testament to the strength of our cornerstone Insituform business, which celebrates 50 years of market leadership this year and continues to be an innovator and thought leader in the trenchless municipal pipeline rehabilitation market. As we move forward, we are continuing to advance our strategy of providing differentiated pipeline rehabilitation and protection technologies for the benefit of public health and the environment.”
Energy services segment planned divestiture
In December 2020, the Company’s Board of Directors approved a plan to sell its Energy Services segment. As a result, the operating results of the former Energy Services segment are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for the quarters and years ended 31 December 2020 and 2019, respectively.
New Mountain transaction
On 16 February 2021, the Company announced that it had entered into a definitive merger agreement to be acquired by affiliates of New Mountain Capital, L.L.C., a leading growth-oriented investment firm headquartered in New York, US, in an all-cash transaction valued at approximately US$963 million that will result in Aegion becoming a private company. Under the terms of the merger agreement, Aegion stockholders will receive US$26.00 per share in cash, less any applicable withholding taxes, upon completion of the transaction. The transaction is expected to close in 2Q2021 and is subject to Aegion stockholder approval, regulatory approvals and other customer closing conditions.
Read the article online at: https://www.worldtrenchless.com/rehabilitation/10032021/aegion-corporation-announces-financial-highlights/