• Significant increase in Q2 2017 revenue with positive operating income
• Twelve-month backlog at June 30, 2017 increases for 3^rd consecutive quarter to $546.9 million
• Additional $94 million of anticipated Q3 2017 backlog additions
• Company to host conference call at 9:00 AM CT, August 1, 2017

HOUSTON, July 31, 2017 (GLOBE NEWSWIRE) -- Willbros Group, Inc. (NYSE:WG) today announced financial results for the second quarter of 2017. The company reported a net loss of $1.1 million, or $(0.02) per diluted share, in the second quarter of 2017 on revenue of $227.4 million. These results compare to a net loss of $17.8 million, or $(0.29) per diluted share, in the first quarter of 2017 on revenue of $163.9 million. In the second quarter of 2016, the company reported a net loss of $6.4 million, or $(0.10) per diluted share, on revenue of $193.4 million.

Operating income of $0.4 million in the second quarter of 2017 compares to an operating loss of $14.9 million in the first quarter of 2017 and a $2.7 million operating loss in the second quarter of 2016.

Michael Fournier, President and CEO, commented, “The significant increase in Q2 revenue was anticipated and reflects our ongoing efforts to add quality work to backlog. More importantly, we were able to achieve operating profitability in the quarter. Our Utility T&D segment produced strong operating results in the second quarter. We have high project visibility in both our Utility T&D and Oil & Gas segments for the remainder of the year. We expect our Canadian operations will face a difficult market into next year. Bidding opportunities suggest our key markets in the U.S. will remain active at least through 2018. Project management and execution, coupled with the addition of 2018 backlog, is our near-term focus.”

Backlog

The Company’s twelve-month backlog increased for the third consecutive quarter. Twelve-month backlog of $546.9 million at June 30, 2017 increased $18.5 million from March 31, 2017 primarily due to the new awards booked in the Oil & Gas segment.  Total backlog of $808.6 million at June 30, 2017 decreased $43.9 million, or 5%, from March 31, 2017. A portion of the total backlog decline is attributable to the work-off of existing multi-year MSA contracts. We will rebid these MSA’s as they come up for renewal but we do not include these new contracts in backlog until they are signed.

We anticipate adding approximately $94 million to third quarter 2017 backlog for the new contracts and the limited notice-to-proceed award announced today.

Segment Operating Results

Utility T&D

The Utility T&D segment reported revenue in the second quarter of $151.7 million, up $36.2 million, or 31%, sequentially and primarily due to an increase in discrete project work in the segment’s transmission business, incremental storm restoration work and growth in all three distribution businesses. Driven primarily by this revenue growth, the segment generated operating income of $11.0 million in the second quarter of 2017 compared to operating income of $0.8 million in the first quarter of 2017. In addition, the renewables business commenced work on its initial wind farm project during the second quarter.

Oil & Gas

For the second quarter of 2017, the Oil & Gas segment reported revenue of $49.0 million and an operating loss of $3.4 million, a $3.9 million improvement from the first quarter of 2017 operating loss. The improvement in operating loss was primarily due to the contract margin earned on the higher revenue, coupled with the favorable impact of a settlement of an integrity project with the client. 

Canada

Canada reported revenue of $26.7 million for the second quarter of 2017, virtually flat when compared to the first quarter of 2017. Revenue associated with our industrial and pipeline construction businesses remains at low levels, offset in part by growth in our maintenance business. The segment reported an operating loss of $1.7 million in the second quarter of 2017 compared to an operating loss of $3.3 million in the first quarter of 2017, with the improvement primarily due to settlement of a contract dispute.

Liquidity and Debt

Total liquidity (defined as cash and cash equivalents plus revolver availability) remained relatively flat. At June 30, 2017, total liquidity was $50.6 million, which includes $41.2 million of cash and cash equivalents.  There were no revolver borrowings at June 30, 2017.

At June 30, 2017, the principal amount due on the term loan remained unchanged from the prior quarter at $92.2 million.

Guidance

Van Welch, Willbros Chief Financial Officer, commented, “With the recent awards and increased visibility, we are increasing revenue guidance for the year to range between $850 to $900 million, up from the previous guidance of $775 to $825 million, excluding our tank services business.”

Conference Call

In conjunction with this release, Willbros has scheduled a conference call, which will be broadcast live over the Internet, on Tuesday, August 1, 2017 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time).

What:    Willbros Second Quarter 2017 Earnings Conference Call
When:   Tuesday, August 1, 2017 - 10:00 a.m. Eastern Time (9:00 a.m. Central Time)
How:     Live via phone - By dialing 844-850-0544 (U.S. Toll Free), 855-669-9657 (Canada Toll Free) or 412-317-5201 (International) a few minutes prior to the start time and asking for the Willbros’ 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 August 8, 2017 and may be accessed by calling 877-344-7529 (U.S. Toll Free), 855-669-9658 (Canada Toll Free) or 412-317-0088 (International) using Replay Access Code 10110876.  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								Six Months Ended
						June 30,								June 30,
							2017				2016				2017				2016
Income Statement
		Contract revenue
				Oil & Gas		$	49,032			$	54,739			$	71,464			$	114,074
				Utility T&D			151,683				109,355				267,191				206,644
				Canada			26,732				29,496				52,692				71,988
				Eliminations			-				(148	)			-				(234	)
							227,447				193,442				391,347				392,472
		Operating expenses
				Oil & Gas			52,466				55,628				82,234				120,710
				Utility T&D			140,699				105,034				255,423				197,424
				Canada			28,446				28,865				57,746				70,533
				Corporate			5,478				6,804				10,439				16,241
				Eliminations			-				(148	)			-				(234	)
							227,089				196,183				405,842				404,674
		Operating income (loss)
				Oil & Gas			(3,434	)			(889	)			(10,770	)			(6,636	)
				Utility T&D			10,984				4,321				11,768				9,220
				Canada			(1,714	)			631				(5,054	)			1,455
				Corporate			(5,478	)			(6,804	)			(10,439	)			(16,241	)
		Operating income (loss)					358				(2,741	)			(14,495	)			(12,202	)
		Non-operating income (expense)
				Interest expense			(3,667	)			(3,302	)			(7,155	)			(6,869	)
				Interest income			7				411				15				431
				Debt covenant suspension and extinguishment charges			-				-				-				(63	)
				Other, net			(16	)			58				(19	)			(2	)
							(3,676	)			(2,833	)			(7,159	)			(6,503	)
		Loss from continuing operations before income taxes					(3,318	)			(5,574	)			(21,654	)			(18,705	)
		Provision (benefit) for income taxes					(2,197	)			187				(2,797	)			354
		Loss from continuing operations					(1,121	)			(5,761	)			(18,857	)			(19,059	)
		Income (loss) from discontinued operations net of provision for income taxes					19				(658	)			(12	)			(2,511	)
		Net loss				$	(1,102	)		$	(6,419	)		$	(18,869	)		$	(21,570	)
		Basic income (loss) per share attributable to Company shareholders:
				Continuing operations		$	(0.02	)		$	(0.09	)		$	(0.30	)		$	(0.31	)
				Discontinued operations			-				(0.01	)			-				(0.04	)
						$	(0.02	)		$	(0.10	)		$	(0.30	)		$	(0.35	)
		Diluted income (loss) per share attributable to Company shareholders:
				Continuing operations		$	(0.02	)		$	(0.09	)		$	(0.30	)		$	(0.31	)
				Discontinued operations			-				(0.01	)			-				(0.04	)
						$	(0.02	)		$	(0.10	)		$	(0.30	)		$	(0.35	)
Cash Flow Data
Continuing operations
		Cash provided by (used in)
				Operating activities		$	4,702			$	(5,593	)		$	1,017			$	(2,942	)
				Investing activities			123				5,633				1,689				4,751
				Financing activities			(356	)			(501	)			(2,810	)			(6,221	)
				Foreign exchange effects			328				341				414				928
Discontinued operations							(241	)			(2,840	)			(481	)			(6,622	)
Other Data (Continuing Operations)
		Weighted average shares outstanding
				Basic			62,171				61,299				62,001				61,065
				Diluted			62,171				61,299				62,001				61,065
		Adjusted EBITDA from continuing operations(1)				$	5,559			$	3,232			$	(3,453	)		$	3,328
		Purchases of property, plant and equipment					833				1,408				1,326				1,900
Reconciliation of Non-GAAP Financial Measures
		Adjusted EBITDA from continuing operations (1)
				Loss from continuing operations		$	(1,121	)		$	(5,761	)		$	(18,857	)		$	(19,059	)
				Interest expense			3,667				3,302				7,155				6,869
				Interest income			(7	)			(411	)			(15	)			(431	)
				Provision (benefit) for income taxes			(2,197	)			187				(2,797	)			354
				Depreciation and amortization			4,920				5,621				9,957				11,309
				Debt covenant suspension and extinguishment charges			-				-				-				63
				Stock based compensation			628				1,108				1,534				2,401
				Restructuring and reorganization costs			303				927				626				4,279
				Legal fees associated with the restatements			103				(81	)			377				(46	)
				Fort McMurray wildfire related costs			-				523				-				523
				Gain on disposal of property and equipment			(737	)			(2,183	)			(1,433	)			(2,934	)
				Adjusted EBITDA from continuing operations(1)		$	5,559			$	3,232			$	(3,453	)		$	3,328
				Gain on disposal of property and equipment, normal course of business			737				2,183				1,433				3,057
				Changes in project loss provision			(1,642	)			(186	)			(3,449	)			(642	)
				Letter of credit fees			448				342				816				698
				Provision for bad debt			74				62				118				40
				Exit of Tank Services			287				1,364				1,145				2,379
				Covenant EBITDA from continuing operations(2)		$	5,463			$	6,997			$	(3,390	)		$	8,860
Balance Sheet Data						June 30, 2017				March 31, 2017				December 31, 2016
		Cash and cash equivalents				$	41,249			$	36,693			$	41,420
		Working capital					84,033				75,756				89,323
		Total assets					382,108				366,285				363,036
		Total debt					88,179				87,466				89,189
		Stockholders' equity					118,624				118,614				135,137
Backlog Data (3)
		12 Month Backlog by Reporting Segment
				Oil & Gas		$	116,366			$	87,750			$	28,827
				Utility T&D			355,480				362,749				349,998
				Canada			75,051				77,918				41,041
		12 Month Backlog				$	546,897			$	528,417			$	419,866
		12 Month Backlog exclusive of Tank Services
		12 Month Backlog, as reported				$	546,897			$	528,417			$	419,866
		Tank Services 12 Month Backlog					26,351				28,813				15,189
		12 Month Backlog, exclusive of Tank Services				$	520,546			$	499,604			$	404,677
		Total By Reporting Segment
				Oil & Gas		$	116,366			$	87,750			$	28,827
				Utility T&D			540,876				605,706				656,838
				Canada			151,336				158,999				106,793
		Total Backlog				$	808,578			$	852,455			$	792,458
		Total Backlog exclusive of Tank Services
		Total Backlog, as reported				$	808,578			$	852,455			$	792,458
		Tank Services Total Backlog					26,351				28,813				15,189
		Total Backlog, exclusive of Tank Services				$	782,227			$	823,642			$	777,269
(1			)	Adjusted EBITDA from continuing operations is defined as income (loss) from continuing operations before interest expense, 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			)	Covenant EBITDA from continuing operations is a non-GAAP 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.
(3		)		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.

CONTACT:
Stephen W. Breitigam
VP Investor Relations
Willbros
713-403-8172

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