| a charge of $24.0 million in estimated payments relating to settlement discussions with the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) and | ||
| a charge of $15.4 million relating to the loss on early extinguishment of debt associated with the induced conversion of approximately $52 million of the Companys 6.5% Senior Convertible Notes due 2012. |
S-2
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Statement of Operations Data |
||||||||||||||||
Contract revenue |
||||||||||||||||
Construction |
$ | 111,949 | $ | 87,235 | $ | 282,654 | $ | 166,383 | ||||||||
Engineering |
20,801 | 19,924 | 40,456 | 35,405 | ||||||||||||
EPC |
23,993 | 11,969 | 40,342 | 24,927 | ||||||||||||
156,743 | 119,128 | 363,452 | 226,715 | |||||||||||||
Contract cost |
||||||||||||||||
Construction |
99,558 | 78,551 | 264,562 | 155,260 | ||||||||||||
Engineering |
14,543 | 15,734 | 30,132 | 29,306 | ||||||||||||
EPC |
23,768 | 1,462 | 37,007 | 22,644 | ||||||||||||
137,869 | 105,747 | 331,701 | 207,210 | |||||||||||||
Contract income |
||||||||||||||||
Construction |
12,391 | 8,684 | 18,092 | 11,123 | ||||||||||||
Engineering |
6,258 | 4,190 | 10,324 | 6,099 | ||||||||||||
EPC |
225 | 507 | 3,335 | 2,283 | ||||||||||||
18,874 | 13,381 | 31,751 | 19,505 | |||||||||||||
Depreciation and
amortization |
4,310 | 2,924 | 7,766 | 5,915 | ||||||||||||
General and
administrative |
13,422 | 11,636 | 24,847 | 22,041 | ||||||||||||
Government fines
and penalties |
24,000 | | 24,000 | | ||||||||||||
Operating loss |
(22,858 | ) | (1,179 | ) | (24,862 | ) | (8,451 | ) | ||||||||
Other income
(expense): |
||||||||||||||||
Interest net |
(187 | ) | (1,787 | ) | (1,077 | ) | (3,423 | ) | ||||||||
Other net |
(502 | ) | (452 | ) | (692 | ) | (327 | ) | ||||||||
Loss on early
Extinguishment
of debt |
(15,375 | ) | | (15,375 | ) | | ||||||||||
(16,064 | ) | (2,239 | ) | (17,144 | ) | (3,750 | ) | |||||||||
Loss before income
taxes |
(38,922 | ) | (3,418 | ) | (42,006 | ) | (12,201 | ) | ||||||||
Provision for income
taxes |
1,457 | 1,686 | 1,712 | 1,432 | ||||||||||||
Loss from continuing
operations |
$ | (40,379 | ) | $ | (5,104 | ) | $ | (43,718 | ) | $ | (13,633 | ) | ||||
Basic loss per share
Continuing operations |
$ | (1.47 | ) | (0.24 | ) | (1.65 | ) | (0.63 | ) | |||||||
$ | (1.47 | ) | (0.24 | ) | (1.65 | ) | (0.63 | ) | ||||||||
Diluted loss per share
Continuing operations |
$ | (1.47 | ) | (0.24 | ) | (1.65 | ) | (0.63 | ) | |||||||
$ | (1.47 | ) | (0.24 | ) | (1.65 | ) | (0.63 | ) | ||||||||
S-3
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Cash Flow Data |
||||||||||||||||
Continuing operations: |
||||||||||||||||
Cash provided by
(used in): |
||||||||||||||||
Operating activities |
$ | 9,743 | $ | (8,692 | ) | $ | 2,403 | $ | (10,426 | ) | ||||||
Investing activities |
(25,911 | ) | 3,649 | 102,877 | 21,312 | |||||||||||
Financing activities |
(17,907 | ) | (3,400 | ) | (22,092 | ) | 11,181 | |||||||||
Foreign exchange
effects |
(636 | ) | (158 | ) | (453 | ) | (118 | ) | ||||||||
Other Data (Continuing
Operations) |
||||||||||||||||
Weighted average
shares outstanding: |
||||||||||||||||
Basic |
27,516 | 21,539 | 26,505 | 21,442 | ||||||||||||
Diluted |
27,516 | 21,539 | 26,505 | 21,442 | ||||||||||||
EBITDA (2) |
$ | (34,425 | ) | $ | 1,293 | $ | (33,163 | ) | $ | (2,863 | ) | |||||
Capital expenditures |
(8,334 | ) | (1,594 | ) | (10,836 | ) | (5,157 | ) | ||||||||
Reconciliation of
Non-GAAP Financial
Measure |
||||||||||||||||
EBITDA (2) |
||||||||||||||||
Net loss, continuing
operations |
$ | (40,379 | ) | $ | (5,104 | ) | $ | (43,718 | ) | $ | (13,633 | ) | ||||
Interest net |
187 | 1,787 | 1,077 | 3,423 | ||||||||||||
Income taxes |
1,457 | 1,686 | 1,712 | 1,432 | ||||||||||||
Depreciation and
amortization |
4,310 | 2,924 | 7,766 | 5,915 | ||||||||||||
EBITDA |
$ | (34,425 | ) | $ | 1,293 | $ | (33,163 | ) | $ | (2,863 | ) | |||||
6/30/2007 | 3/31/2007 | 12/31/2006 | ||||||||||
Balance Sheet Data |
||||||||||||
Cash and cash
equivalents |
$ | 107,762 | $ | 145,439 | $ | 37,643 | ||||||
Working capital |
116,426 | 161,046 | 170,825 | |||||||||
Total assets |
406,568 | 410,714 | 588,254 | |||||||||
Total debt |
136,420 | 167,789 | 166,152 | |||||||||
Stockholders equity |
102,155 | 84,569 | 97,931 | |||||||||
Backlog Data (1) |
||||||||||||
By Reporting Segment: |
||||||||||||
Construction |
$ | 808,617 | $ | 397,080 | $ | 320,461 | ||||||
Engineering |
90,943 | 92,615 | 109,122 | |||||||||
EPC |
144,686 | 158,594 | 172,689 | |||||||||
$ | 1,044,246 | $ | 648,289 | $ | 602,272 | |||||||
By Geographic Area: |
||||||||||||
North America |
1,009,524 | 611,630 | 565,408 | |||||||||
Middle East |
34,722 | 36,659 | 36,864 | |||||||||
$ | 1,044,246 | $ | 648,289 | $ | 602,272 | |||||||
(1) | Backlog is anticipated contract revenue from projects for which award is either in hand or assured. | |
(2) | EBITDA is earnings before net interest, income taxes and depreciation and amortization. EBITDA as presented may not be comparable to other similarly titled measures reported by other companies. The Company believes EBITDA is a useful measure of evaluating its financial performance because of its focus on the Companys results from operations before net interest, income taxes, depreciation and amortization. EBITDA is not a measure of financial performance under generally accepted accounting principles. However, EBITDA is a common alternative measure of operating performance used by investors, financial analysts and rating agencies. |
S-4