e424b3
 

Filed pursuant to Rule 424(b)(3)
Registration No. 333-139499
Prospectus Supplement No. 6
(To Prospectus dated May 4, 2007)
4,280,714
SHARES
WILLBROS GROUP, INC.
COMMON STOCK
     This prospectus supplement No. 6 supplements and amends the prospectus dated May 4, 2007, as supplemented and amended by that certain prospectus supplement No. 1 dated May 10, 2007, that certain prospectus supplement No. 2 dated May 17, 2007, that certain prospectus supplement No. 3 dated May 24, 2007, that certain prospectus supplement No. 4 dated May 30, 2007 and that certain prospectus supplement No. 5 dated June 8, 2007 (the “Prospectus”). This prospectus supplement should be read in conjunction with the Prospectus, which is to be delivered with this prospectus supplement.
     There are significant risks associated with an investment in our securities. These risks are described under the caption “Risk Factors” beginning on page 6 of the Prospectus, as the same may be updated in prospectus supplements.
     Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus supplement or the accompanying Prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this prospectus supplement is August 7, 2007.

 


 

Second Quarter 2007 Results from Continuing Operations
     On August 7, 2007, Willbros Group, Inc. (the “Company”) reported its unaudited results from continuing operations for the second quarter of 2007. Revenue from continuing operations for the second quarter of 2007 was $156.7 million, compared to first quarter revenue of $206.7 million. The net loss from continuing operations for the second quarter was $40.4 million or $1.47 per share compared to $3.3 million, or $0.13 per share in the first quarter of 2007. The net loss from continuing operations for the second quarter includes
    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 Company’s 6.5% Senior Convertible Notes due 2012.
     As previously disclosed in January 2005, the Company is under investigation by the DOJ concerning possible violations of the Foreign Corrupt Practices Act and the SEC for possible violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. These investigations stem primarily from the Company’s former operations in Bolivia, Ecuador and Nigeria. The Company is currently engaged in preliminary settlement discussions with both the DOJ and the SEC relating to their investigations. There can be no assurance as to the type and number of charges against the Company in any final resolution of these investigations, nor can there be any assurance regarding the amount of the payments, including fines and penalties, that may be imposed. Although these discussions are still preliminary, the Company recorded a charge of $24.0 million ($0.87 per basic and diluted share) in the second quarter of 2007. This charge represents the Company’s best estimate of the payments necessary to resolve the government investigations. The Company may be required to record an additional provision or reduce this provision if the actual settlement amount of these matters differs from the current provision. The Company anticipates that the terms for these payments will not materially impact the Company’s working capital position or otherwise negatively impact its compliance with debt covenants and other contractual commitments. Although the Company believes that it is moving towards a final resolution of both investigations, it is not possible to predict definitively when final resolution will occur.

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WILLBROS GROUP, INC.
(In Thousands, Except Per Share Amounts)
                                 
    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 )
 
                       

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    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 Company’s 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.

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