Investor Relations

Press Release

Willbros Reports Fourth Quarter and Full Year 2016 Results

Company Release - 3/7/2017 6:21 PM ET
  • Twelve-Month Backlog increases $44 million during Q4 2016; significant  2017 awards totaling $151 million
  • Company obtains covenant amendment from lender
  • Company to host conference call at 9:00 AM CT, March 08, 2017

HOUSTON, March 07, 2017 (GLOBE NEWSWIRE) -- Willbros Group, Inc. (NYSE:WG) today reported fourth quarter and full year 2016 financial results. The company reported a net loss in the fourth quarter of 2016 of $14.2 million, or $(0.23) per diluted share, on revenue of $164.4 million, compared to net income of $77.4 million, or $1.26 per diluted share, on revenue of $217.7 million in the fourth quarter of 2015.  For the full year 2016, the company reported a net loss of $47.8 million, or $(0.77) per diluted share, on revenue of $731.7 million, compared to net income of $31.5 million, or $0.54 per diluted share, on revenue of $909.0 million  for the full year of 2015.   The company’s fourth quarter of 2015 and full year 2015 results include gains on sales of subsidiaries of $109.3 million and $165.0 million, respectively, in relation to the 2015 sale of the company’s Professional Services segment and other subsidiaries.

Michael J. Fournier, President and CEO, commented, “We are beginning to see results in building backlog as both twelve-month and total backlog increased during the fourth quarter and we recently announced $151 million of significant awards so far in 2017. However, our fourth quarter 2016 results which included an additional loss on a Canadian pipeline project, coupled with our outlook for the first quarter of 2017, have required us to obtain an additional amendment to our term loan agreement.”

Continuing Operations

Included in this press release are certain non-GAAP financial measures that exclude special items that we believe affect the comparability of results between periods. These special items include losses associated with businesses and services we have exited as well as other items such as facility and equipment lease abandonment charges and gains or losses on sales of subsidiaries.  A detailed listing of these special items and a related reconciliation of each of these special items is included in the accompanying supplemental schedules.

The company reported a loss from continuing operations in the fourth quarter of 2016 of $14.1 million, or $(0.23) per diluted share, on revenue of $164.4 million, compared to income from continuing operations of $19.2 million, or $0.31 per diluted share, on revenue of $217.7 million in the fourth quarter of 2015. The fourth quarter of 2015 income from continuing operations of $19.2 million consists of a $13.7 million loss from continuing operations before income taxes plus an income tax benefit of $32.9 million.

For the full year 2016, the company reported a loss from continuing operations of $43.8 million, or $(0.71) per diluted share, on revenue of $731.7 million, compared to a loss from continuing operations of $64.5 million, or $(1.12) per diluted share, for the full year 2015.

Operating loss for the fourth quarter of 2016 was $12.1 million, compared to an operating loss of $6.3 million in the third quarter of 2016 and $5.4 million in the fourth quarter of 2015. The increase in the operating loss of $5.8 million compared to the third quarter of 2016 was primarily driven by a weather-impacted pipeline job in Canada. For the full year 2016, the company reported an operating loss of $30.7 million compared to a full year 2015 operating loss of $52.1 million.

Operating loss before special items was $9.5 million for the fourth quarter of 2016 compared to a $4.9 million operating loss before special items in the third quarter of 2016. For the full year 2016, the company reported an operating loss before special items of $18.5 million compared to a full year 2015 operating loss before special items of $31.6 million.

Segment Operating Results

The company has three reportable segments: Utility T&D, Oil and Gas, and Canada. During the fourth quarter of 2016, the company implemented a change to its organizational structure such that corporate overhead costs are no longer allocated to each segment. Corporate costs are now identified separately in the attached schedules and previously reported segment information has been revised to conform to this new presentation.

Utility T&D
For the fourth quarter of 2016, the Utility T&D segment reported operating income of $2.1 million on revenue of $105.3 million compared to operating income of $4.3 million on revenue of $106.4 million in the third quarter of 2016. The fourth quarter 2016 operating results were impacted by margin slippage on certain distribution jobs and under-utilization of equipment in the transmission business. For the full year 2016, the segment reported operating income of $15.6 million on revenue of $418.4 million. For the full year 2015, the segment reported operating income of $4.0 million on revenue of $379.6 million.

Oil & Gas
The Oil & Gas segment entered the fourth quarter of 2016 with minimal backlog but was active in addressing bid opportunities. The segment reported an operating loss during the fourth quarter of 2016 of $5.8 million on revenue of $23.3 million, a $1.4 million increase in operating loss from the third quarter of 2016 when the segment generated $33.1 million in revenue. For the full year 2016, the segment reported an operating loss of $16.8 million on revenue of $170.4 million. For the full year 2015, the segment reported an operating loss of $38.0 million on revenue of $297.1 million.

The segment reported an operating loss before special items in the fourth quarter of 2016 of $4.0 million, a $0.7 million increase in operating loss before special items from the third quarter of 2016. For the full year 2016, the segment reported an operating loss before special items of $9.6 million, compared to a full year 2015 operating loss before special items of $12.3 million.

Canada
For the fourth quarter of 2016, the Canada segment generated an operating loss of $1.8 million on revenue of $35.8 million, compared to an operating loss of $0.3 million on revenue of $35.4 million in the third quarter of 2016. The fourth quarter of 2016 operating loss included a $5.7 million loss on a pipeline project that was adversely impacted by weather conditions. For the full year 2016, the segment reported an operating loss of $0.7 million on revenue of $143.1 million. For the full year 2015, the segment reported operating income of $10.2 million on revenue of $232.5 million.

Corporate

The company continually assesses its cost structure and has taken action in recent years to reduce corporate overhead costs to better align with its lower revenue. For the full year 2016, the company recorded $28.8 million of corporate overhead costs compared to $41.1 million of corporate overhead costs for the full year 2015.

For the full year 2016, the Company recorded $25.2 million of corporate overhead costs before special items compared to $35.1 million of corporate overhead before special items for the full year 2015.  

Backlog

At December 31, 2016, the company reported total backlog of $792.5 million compared to $646.6 million at September 30, 2016. Twelve-month backlog of $419.9 million at December 31, 2016 increased $44.1 million from September 30, 2016. All of the increase in twelve-month backlog is attributable to additions in the Utility T&D segment.

During the first quarter of 2017 we have received significant awards across all three segments, totaling $151 million.

Liquidity

On March 3, 2017, the company amended its Term Loan to extend its covenant holiday through June 30, 2017 and put in place less stringent financial covenants for the remainder of 2017.

Total liquidity (defined as cash and cash equivalents plus revolver availability) was $66.7 million at December 31, 2016, a decrease of $4.5 million from the end of the third quarter of 2016. Cash and cash equivalents totaled $41.4 million at December 31, 2016 and there were no revolver borrowings at December 31, 2016.

At December 31, 2016, the principal amount due on the Term Loan remained unchanged from the prior quarter at $92.2 million.

Conference Call
In conjunction with this release, Willbros has scheduled a conference call, which will be broadcast live over the Internet, on Wednesday, March 08, 2017 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time).

What:  Willbros Fourth Quarter and Full Year 2016 Earnings Conference Call 
   
When:  Wednesday, March 08, 2017 - 10:00 a.m. Eastern Time (9:00 a.m. Central Time) 
   
How:  Live via phone - By dialing 1-888-317-6016 (U.S. Toll Free), 1-855-669-9657 (Canada Toll Free) or 1-412-317-6016 (International) a few minutes prior to the start time and asking for the Willbros
  Group, Inc. call.  Or live over the Internet by logging on to the web address below.
   
Where:  http://www.willbros.com. The webcast can be accessed from the investor relations home page. 
   

For those who cannot listen to the live call, a replay will be available through March 15, 2017 and may be accessed by calling 1-877-344-7529 (U.S. Toll Free), 1-855-669-9658 (Canada Toll Free) or 1-412-317-0088 (International) using Replay Access Code 10102327.  Also, an archive of the webcast will be available shortly after the call on www.willbros.com.  

Willbros is a specialty energy infrastructure contractor serving the oil and gas and power industries with offerings that primarily include construction, maintenance and facilities development services. For more information on Willbros, please visit our web site at www.willbros.com.

This announcement contains forward-looking statements. All statements, other than statements of historical facts, which address activities, events or developments the Company expects or anticipates will or may occur in the future, are forward-looking statements.  A number of risks and uncertainties could cause actual results to differ materially from these statements, including unanticipated accounting or other issues regarding any material weaknesses in internal control over financial reporting; inability of the Company or its independent auditor to confirm relevant information or data; unanticipated issues that prevent or delay the Company’s independent auditor from completing its review of financial statements or that require additional efforts, procedures or review; the untimely filing of financial statements; pending and potential investigations and lawsuits; the identification of one or more issues that require restatement of one or more other prior period financial statements; ability to remain in compliance with, or obtain additional waivers or amendments under, the Company's existing loan agreements; the existence of other material weaknesses in internal control over financial reporting; contract and billing disputes; availability of quality management; availability and terms of capital; changes in, or the failure to comply with, government regulations; the promulgation, application, and interpretation of environmental laws and regulations; future E&P capital expenditures; oil, gas, gas liquids, and power prices and demand; the amount and location of planned pipelines; development trends of the oil, gas, and power industries; as well as other risk factors described from time to time in the Company's documents and reports filed with the SEC.  The Company assumes no obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

SCHEDULES TO FOLLOW

WILLBROS GROUP, INC.
(In thousands, except per share amounts)
            
   Three Months Ended   Year Ended 
   December 31,   December 31, 
  2016 2015 2016 2015
Income Statement         
 Contract revenue        
  Oil & Gas $23,274  $77,863  $170,448  $297,110 
  Utility T&D  105,321   97,282   418,387   379,629 
  Canada  35,797   42,586   143,140   232,534 
  Eliminations  -   (71)  (290)  (279)
      164,392   217,660   731,685   908,994 
            
 Operating expenses        
  Oil & Gas  29,038   87,659   187,231   335,134 
  Utility T&D  103,236   97,611   402,820   375,669 
  Canada  37,561   40,793   143,790   222,308 
  Corporate  6,697   9,902   28,795   41,086 
  Gain on sale of subsidiary  -   (12,826)  -   (12,826)
  Eliminations  -   (71)  (290)  (279)
      176,532   223,068   762,346   961,092 
            
 Operating income (loss)        
  Oil & Gas  (5,764)  (9,796)  (16,783)  (38,024)
  Utility T&D  2,085   (329)  15,567   3,960 
  Canada  (1,764)  1,793   (650)  10,226 
  Corporate  (6,697)  (9,902)  (28,795)  (41,086)
  Gain on sale of subsidiary  -   12,826   -   12,826 
 Operating loss  (12,140)  (5,408)  (30,661)  (52,098)
            
 Non-operating expenses        
  Interest expense  (3,543)  (6,278)  (13,976)  (27,254)
  Interest income  8   14   451   51 
  Debt covenant suspension and extinguishment charges  -   (2,066)  (63)  (39,178)
  Other, net  (63)  80   (63)  (101)
      (3,598)  (8,250)  (13,651)  (66,482)
 Loss from continuing operations before income taxes  (15,738)  (13,658)  (44,312)  (118,580)
 Benefit for income taxes  (1,676)  (32,867)  (530)  (54,031)
 Income (loss) from continuing operations  (14,062)  19,209   (43,782)  (64,549)
 Income (loss) from discontinued operations net of provision for income taxes  (141)  58,183   (3,977)  96,032 
 Net income (loss) $(14,203) $77,392  $(47,759) $31,483 
            
 Basic income (loss) per share attributable to Company shareholders:        
  Continuing operations $(0.23) $0.32  $(0.71) $(1.12)
  Discontinued operations  -   0.96   (0.06)  1.66 
     $(0.23) $1.28  $(0.77) $0.54 
            
 Diluted income (loss) per share attributable to Company shareholders:        
  Continuing operations $(0.23) $0.31  $(0.71) $(1.12)
  Discontinued operations  -   0.95   (0.06)  1.66 
     $(0.23) $1.26  $(0.77) $0.54 
            
Cash Flow Data        
Continuing operations        
 Cash provided by (used in)        
  Operating activities $(3,760) $31,553  $(11,992) $46,009 
  Investing activities  4,204   106,829   10,843   210,423 
  Financing activities  (45)  (95,179)  (8,615)  (177,266)
  Foreign exchange effects  (649)  (2,685)  (29)  (3,437)
Discontinued operations  (589)  (29,791)  (7,619)  (40,170)
            
Other Data         
 Weighted average shares outstanding        
  Basic   61,683   60,510   61,365   57,760 
  Diluted  61,683   61,092   61,365   57,760 
 Adjusted EBITDA from continuing operations(1) $(6,414) $(3,634) $(2,755) $(19,461)
 Purchases of property, plant and equipment  1,266   650   3,794   2,705 
            
Reconciliation of Non-GAAP Financial Measures        
            
 Adjusted EBITDA from continuing operations (1)        
  Income (loss) from continuing operations $(14,062) $19,209  $(43,782) $(64,549)
  Interest expense  3,543   6,278   13,976   27,254 
  Interest income  (8)  (14)  (451)  (51)
  Benefit for income taxes  (1,676)  (32,867)  (530)  (54,031)
  Depreciation and amortization  5,225   6,154   21,919   27,200 
  Debt covenant suspension and extinguishment charges  -   2,066   63   39,178 
  Stock based compensation  858   2,052   4,127   6,605 
  Restructuring and reorganization costs  346   2,966   4,933   9,475 
  Accounting and legal fees associated with the restatements  18   (56)  (24)  595 
  (Gain) loss on disposal of equipment  (585)  2,870   (3,436)  1,155 
  Impairment of intangible assets  -   534   -   534 
  Gain on sale of subsidiary  -   (12,826)  -   (12,826)
  Fort McMurray wildfire related costs (income)  (73)  -   450   - 
  Adjusted EBITDA from continuing operations(1) $(6,414) $(3,634) $(2,755) $(19,461)
            
            
Balance Sheet Data December 31,
2016
 September 30,
2016
 June 30,
2016
 March 31,
2016
 Cash and cash equivalents $41,420  $42,259  $48,726  $51,686 
 Working capital  89,323   96,709   105,443   106,304 
 Total assets  363,036   382,828   416,464   431,372 
 Total debt  89,189   88,672   90,589   90,617 
 Stockholders' equity  135,137   148,974   160,324   165,682 
            
Backlog Data (2)        
 Total By Reporting Segment        
  Oil & Gas $28,827  $23,590  $34,479  $71,314 
  Utility T&D  656,838   535,014   535,218   595,620 
  Canada  106,793   88,025   102,302   116,352 
 Total Backlog $792,458  $646,629  $671,999  $783,286 
            
 Total Backlog By Geographic Area        
  United States $685,665  $558,604  $569,697  $666,934 
  Canada  106,793   88,025   102,302   116,352 
 Total Backlog $792,458  $646,629  $671,999  $783,286 
            
 Total Backlog exclusive of Tank Services        
 Total Backlog, as reported $792,458  $646,629  $671,999  $783,286 
 Tank Services Total Backlog  15,189   7,435   5,338   9,716 
 Total Backlog, exclusive of Tank Services $777,269  $639,194  $666,661  $773,570 
            
 12 Month Backlog by Reporting Segment        
  Oil & Gas $28,827  $23,590  $34,479  $69,514 
  Utility T&D  349,998   289,758   269,758   296,278 
  Canada  41,041   62,400   68,995   91,503 
 12 Month Backlog $419,866  $375,748  $373,232  $457,295 
            
 12 Month Backlog By Geographic Area        
  United States $378,825  $313,348  $304,237  $365,792 
  Canada  41,041   62,400   68,995   91,503 
 12 Month Backlog $419,866  $375,748  $373,232  $457,295 
            
 12 Month Backlog exclusive of Tank Services        
 12 Month Backlog, as reported $419,866  $375,748  $373,232  $457,295 
 Tank Services 12 Month Backlog  15,189   7,435   5,338   9,716 
 12 Month Backlog, exclusive of Tank Services $404,677  $368,313  $367,894  $447,579 
            
  (1) Adjusted EBITDA from continuing operations is defined as income (loss) from continuing operations before interest expense (income), income tax expense (benefit) and depreciation and amortization, adjusted for items broadly consisting of selected items which management does not consider representative of our ongoing operations and certain non-cash items of the Company.  Management uses Adjusted EBITDA from continuing operations as a supplemental performance measure for comparing normalized operating results with corresponding historical periods and with the operational performance of other companies in our industry and for presentations made to analysts, investment banks and other members of the financial community who use this information in order to make investment decisions about us.

Adjusted EBITDA from continuing operations is not a financial measurement recognized under U.S. generally accepted accounting principles, or U.S. GAAP.  When analyzing our operating performance, investors should use Adjusted EBITDA from continuing operations in addition to, and not as an alternative for, net income, operating income, or any other performance measure derived in accordance with U.S. GAAP, or as an alternative to cash flow from operating activities as a measure of our liquidity.  Because all companies do not use identical calculations, our presentation of Adjusted EBITDA from continuing operations may be different from similarly titled measures of other companies.
   
   (2) Backlog is anticipated contract revenue from uncompleted portions of existing contracts and contracts whose award is reasonably assured.  Master Service Agreement ("MSA") backlog is estimated for the remaining term of the contract.  MSA backlog is determined based on historical trends inherent in the MSAs, factoring in seasonal demand and projecting customer needs based on ongoing communications.  Backlog is not a term recognized under U.S. GAAP; however, it is a common measurement used in our industry.
            

 

Supplemental Schedule of Special Items  Three Months Ended March 31, 2016 
   (In thousands)
    
   Oil & GasUtility T&DCanadaCorporateEliminationsConsolidated
Contract revenue before special items (1)        
Contract revenue, as reported  $59,335 $97,289 $42,492 $- $(86)$199,030 
Contract revenue, exited subsidiaries (2)   (12,723) -  -  -  -  (12,723)
Contract revenue before special items  $46,612 $97,289 $42,492 $- $(86)$186,307 
         
Operating income (loss) before special items (1)        
Operating income (loss), as reported  $(5,747)$4,899 $824 $(9,437)$- $(9,461)
Operating loss, exited subsidiaries (2)   1,760  -  -  -  -  1,760 
Other charges   1,038  -  -  2,650  -  3,688 
Operating income (loss) before special items  $(2,949)$4,899 $824 $(6,787)$- $(4,013)
         
   Three Months Ended June 30, 2016 
   (In thousands)
    
   Oil & GasUtility T&DCanadaCorporateEliminationsConsolidated
Contract revenue before special items (1)        
Contract revenue, as reported  $54,739 $109,355 $29,496 $- $(148)$193,442 
Contract revenue, exited subsidiaries (2)   (6,330) -  -  -  -  (6,330)
Contract revenue before special items  $48,409 $109,355 $29,496 $- $(148)$187,112 
         
Operating income (loss) before special items (1)        
Operating income (loss), as reported  $(889)$4,321 $631 $(6,804)$- $(2,741)
Operating loss, exited subsidiaries (2)   1,251  -  -  -  -  1,251 
Fort McMurray wildfire related costs   -  -  523  -  -  523 
Other charges (income)   292  12  660  (25) -  939 
Operating income (loss) before special items  $654 $4,333 $1,814 $(6,829)$- $(28)
         
   Three Months Ended September 30, 2016 
   (In thousands)
    
   Oil & GasUtility T&DCanadaCorporateEliminationsConsolidated
Contract revenue before special items (1)        
Contract revenue, as reported  $33,100 $106,422 $35,355 $- $(56)$174,821 
Contract revenue, exited subsidiaries (2)   (4,482) -  -  -  -  (4,482)
Contract revenue before special items  $28,618 $106,422 $35,355 $- $(56)$170,339 
         
Operating income (loss) before special items (1)        
Operating income (loss), as reported  $(4,383)$4,262 $(341)$(5,857)$- $(6,319)
Operating loss, exited subsidiaries (2)   855  -  -  -  -  855 
Other charges (income)   245  (15) 313  (24) -  519 
Operating income (loss) before special items  $(3,283)$4,247 $(28)$(5,881)$- $(4,945)
         
   Three Months Ended December 31, 2016 
   (In thousands)
    
   Oil & GasUtility T&DCanadaCorporateEliminationsConsolidated
Contract revenue before special items (1)        
Contract revenue, as reported  $23,274 $105,321 $35,797 $- $- $164,392 
Contract revenue, exited subsidiaries (2)   (7,018) -  -  -  -  (7,018)
Contract revenue before special items  $16,256 $105,321 $35,797 $- $- $157,374 
         
Operating income (loss) before special items (1)        
Operating income (loss), as reported  $(5,764)$2,085 $(1,764)$(6,697)$- $(12,140)
Operating loss, exited subsidiaries (2)   1,672  -  -  -  -  1,672 
Fort McMurray wildfire related income   -  -  (73) -  -  (73)
Other charges   84  -  31  949  -  1,064 
Operating income (loss) before special items  $(4,008)$2,085 $(1,806)$(5,748)$- $(9,477)
         
   Year Ended December 31, 2016
   (In thousands)
    
   Oil & GasUtility T&DCanadaCorporate (4)EliminationsConsolidated
Contract revenue before special items (1)        
Contract revenue, as reported  $170,448 $418,387 $143,140 $- $(290)$731,685 
Contract revenue, exited subsidiaries (2)   (30,553) -  -  -  -  (30,553)
Contract revenue before special items  $139,895 $418,387 $143,140 $- $(290)$701,132 
         
Operating income (loss) before special items (1)        
Operating income (loss), as reported  $(16,783)$15,567 $(650)$(28,795)$- $(30,661)
Operating loss, exited subsidiaries (2)   5,538  -  -  -  -  5,538 
Fort McMurray wildfire related costs   -  -  450  -  -  450 
Other charges (income)   1,659  (3) 1,004  3,550  -  6,210 
Operating income (loss) before special items  $(9,586)$15,564 $804 $(25,245)$- $(18,463)
         
Covenant EBITDA from continuing operations (3)  Q1 2016Q2 2016Q3 2016Q4 2016YE 2016 
Loss from continuing operations  $(13,298)$(5,761)$(10,661)$(14,062)$(43,782) 
Interest expense   3,567  3,302  3,564  3,543  13,976  
Interest income   (20) (411) (12) (8) (451) 
Provision (benefit) for income taxes   167  187  792  (1,676) (530) 
Depreciation and amortization   5,688  5,621  5,385  5,225  21,919  
Debt covenant suspension and extinguishment charges   63  -  -  -  63  
Stock-based compensation   1,293  1,108  868  858  4,127  
Restructuring and reorganization costs   3,352  927  308  346  4,933  
Accounting and legal fees associated with the restatements   35  (81) 4  18  (24) 
Fort McMurray wildfire related costs (income)   -  523  -  (73) 450  
Loss on sale of assets outside of normal course of business   123  -  207  700  1,030  
Changes in project loss provision   (456) (186) 1,470  1,541  2,369  
Letter of credit fees   356  342  349  356  1,403  
Provision for (recovery of) bad debt   (22) 62  66  178  284  
Exit of Tank Services   1,015  1,364  773  1,486  4,638  
Covenant EBITDA from continuing operations  $1,863 $6,997 $3,113 $(1,568)$10,405  
         
Loss from continuing operations before special items (1)  Q1 2016Q2 2016Q3 2016Q4 2016YE 2016 
Loss from continuing operations, as reported  $(13,298)$(5,761)$(10,661)$(14,062)$(43,782) 
Loss from continuing operations, exited subsidiaries (2)   1,760  1,251  855  1,672  5,538  
Fort McMurray wildfire related costs (income)   -  523  -  (73) 450  
Other charges   3,688  939  519  1,064  6,210  
Debt covenant suspension and extinguishment charges   63  -  -  -  63  
Loss from continuing operations before special items  $(7,787)$(3,048)$(9,287)$(11,399)$(31,521) 
         
Loss from discontinued operations before special items (1)  Q1 2016Q2 2016Q3 2016Q4 2016YE 2016 
Loss from discontinued operations, as reported  $(1,853)$(658)$(1,325)$(141)$(3,977) 
Other charges (income)   -  (1,162) 102  -  (1,060) 
Loss on sale of subsidiaries   1,545  911  -  -  2,456  
Loss from discontinued operations before special items  $(308)$(909)$(1,223)$(141)$(2,581) 
         
Net loss before special items (1)  Q1 2016Q2 2016Q3 2016Q4 2016YE 2016 
Net loss, as reported  $(15,151)$(6,419)$(11,986)$(14,203)$(47,759) 
Loss from continuing operations, exited subsidiaries (2)   1,760  1,251  855  1,672  5,538  
Fort McMurray wildfire related costs (income)   -  523  -  (73) 450  
Other charges (income)   3,688  (223) 621  1,064  5,150  
Debt covenant suspension and extinguishment charges   63  -  -  -  63  
Loss on sale of subsidiaries   1,545  911  -  -  2,456  
Net loss before special items  $(8,095)$(3,957)$(10,510)$(11,540)$(34,102) 
         
(1) Contract revenue before special items, corporate overhead costs before special items, operating income (loss) before special items, loss from continuing operations before special items, loss from discontinued operations before special items and net loss before special items are non-GAAP financial measures that exclude special items that management believes affect the comparison of results for the periods presented.  Management also believes results excluding these items are more comparable to estimates provided by securities analysts and therefore are useful in evaluating operational trends of the Company and its performance relative to other construction companies.  In addition, management believes results excluding these items are more indicative of the future operating prospects for Willbros as a consolidated company in 2017.
 
(2) Contract revenue, exited subsidiaries, operating loss, exited subsidiaries and loss from continuing operations, exited subsidiaries relate to the Company's historical Tanks and Downstream Oil & Gas subsidiaries.  They are non-GAAP financial measures that exclude special items that management believes affect the comparison of results for the periods presented.  Management also believes results excluding these items are more comparable to estimates provided by securities analysts and therefore are useful in evaluating operational trends of the Company and its performance relative to other construction companies.  In addition, management believes results excluding these items are more indicative of the future operating prospects for Willbros as a consolidated company in 2017.
 
(3) Covenant EBITDA from continuing operations is a non-GAAP financial measure that conforms to the definition of Consolidated EBITDA in the Company's 2014 Term Credit Agreement which includes certain special items.  Management uses Covenant EBITDA from continuing operations to determine the Company's compliance with certain financial covenants under the 2014 Term Credit Agreement.
 
(4) When presenting these numbers in the press release, we use the terminology 'corporate overhead costs' and 'corporate overhead costs before special items'.
         


Supplemental Schedule of Special Items  Three Months Ended March 31, 2015
   (In thousands)
    
   Oil & GasUtility T&DCanadaCorporateGain on Sale
of
Subsidiary
EliminationsConsolidated
Contract revenue before special items (1)         
Contract revenue, as reported  $76,440 $86,986 $87,009 $- $- $(81)$250,354 
Contract revenue, exited subsidiaries (2)   (42,066) (2,842) -  -  -  -  (44,908)
Contract revenue before special items  $34,374 $84,144 $87,009 $- $- $(81)$205,446 
          
Operating income (loss) before special items (1)         
Operating income (loss), as reported  $(8,247)$(1,443)$1,854 $(13,449)$- $- $(21,285)
Operating (income) loss, exited subsidiaries (2)   1,525  (132) -  -  -  -  1,393 
Other charges   233  -  -  2,777  -  -  3,010 
Operating income (loss) before special items  $(6,489)$(1,575)$1,854 $(10,672)$- $- $(16,882)
          
   Three Months Ended June 30, 2015
   (In thousands)
    
   Oil & GasUtility T&DCanadaCorporateGain on Sale
of
Subsidiary
EliminationsConsolidated
Contract revenue before special items (1)         
Contract revenue, as reported  $61,778 $106,439 $50,645 $- $- $(73)$218,789 
Contract revenue, exited subsidiaries (2)   (26,532) (3,821) -  -  -  -  (30,353)
Contract revenue before special items  $35,246 $102,618 $50,645 $- $- $(73)$188,436 
          
Operating income (loss) before special items (1)         
Operating income (loss), as reported  $(13,742)$7,938 $1,736 $(8,970)$- $- $(13,038)
Operating (income) loss, exited subsidiaries (2)   4,800  (962) -  -  -  -  3,838 
Other charges   2,639  -  201  478  -  -  3,318 
Operating income (loss) before special items  $(6,303)$6,976 $1,937 $(8,492)$- $- $(5,882)
          
   Three Months Ended September 30, 2015
   (In thousands)
    
   Oil & GasUtility T&DCanadaCorporateGain on Sale
of
Subsidiary
EliminationsConsolidated
Contract revenue before special items (1)         
Contract revenue, as reported  $81,029 $88,922 $52,294 $- $- $(54)$222,191 
Contract revenue, exited subsidiaries (2)   (20,749) (2,943) -  -  -  -  (23,692)
Contract revenue before special items  $60,280 $85,979 $52,294 $- $- $(54)$198,499 
          
Operating income (loss) before special items (1)         
Operating income (loss), as reported  $(6,239)$(2,206)$4,843 $(8,765)$- $- $(12,367)
Operating loss, exited subsidiaries (2)   3,214  7  -  -  -  -  3,221 
Other charges   3,667  -  -  205  -  -  3,872 
Operating income (loss) before special items  $642 $(2,199)$4,843 $(8,560)$- $- $(5,274)
          
   Three Months Ended December 31, 2015
   (In thousands)
    
   Oil & GasUtility T&DCanadaCorporateGain on Sale
of
Subsidiary
EliminationsConsolidated
Contract revenue before special items (1)         
Contract revenue, as reported  $77,863 $97,282 $42,586 $- $- $(71)$217,660 
Contract revenue, exited subsidiaries (2)   (17,050) (156) -  -  -  -  (17,206)
Contract revenue before special items  $60,813 $97,126 $42,586 $- $- $(71)$200,454 
          
Operating income (loss) before special items (1)         
Operating income (loss), as reported  $(9,796)$(329)$1,793 $(9,902) $12,826 $- $(5,408)
Operating loss, exited subsidiaries (2)   6,382  3  -  -  -  -  6,385 
Gain on sale of subsidiary   -  -  -  -  (12,826) -  (12,826)
Other charges   3,313  2,002  423  2,531  -  -  8,269 
Operating income (loss) before special items  $(101)$1,676 $2,216 $(7,371)$- $- $(3,580)
          
   Year Ended December 31, 2015
   (In thousands)
    
   Oil & GasUtility T&DCanadaCorporate (4)Gain on Sale
of
Subsidiary
EliminationsConsolidated
Contract revenue before special items (1)         
Contract revenue, as reported  $297,110 $379,629 $232,534 $- $- $(279)$908,994 
Contract revenue, exited subsidiaries (2)   (106,397) (9,762) -  -  -