Williams Reports First Quarter 2022 Financial Results
Williams Industrial Services Group Inc. (NYSE American: WLMS) reported Q1 2022 revenues of $69.6 million, up from $60.9 million year-over-year. The company experienced a net loss from continuing operations of $2.0 million or $(0.08) per diluted share, compared to a loss of $1.6 million or $(0.06) per share in Q1 2021. Adjusted EBITDA was $0.1 million, down from $0.6 million the previous year. The backlog decreased to $257 million from $270.7 million at year-end. The company reiterated its fiscal 2022 guidance, projecting revenues between $305 million and $325 million.
- Revenue increased by 12% year-over-year to $69.6 million.
- New orders totaled $38 million, indicating potential growth.
- Total backlog remains substantial at $257 million.
- Reported a net loss of $2.0 million, higher than the previous year's loss.
- Adjusted EBITDA decreased to $0.1 million from $0.6 million.
- Backlog decreased from $270.7 million to $257 million.
Guidance Unchanged as
Recent Highlights
-
Williams posted revenue of
in the first quarter of 2022 compared with$69.6 million in the prior-year period$60.9 million -
The Company reported a net loss from continuing operations of
, or$2.0 million per diluted share, in the first quarter of 2022 compared with a net loss from continuing operations of$(0.08) , or$1.6 million per diluted share, in the first quarter of 2021$(0.06) -
Adjusted EBITDA1 was
for the first quarter of 2022 compared with$0.1 million in the prior-year period$0.6 million -
As of
March 31, 2022 , the Company’s backlog was , compared to$257.0 million as of$270.7 million December 31, 2021 (excluding approximately of decommissioning work subsequently transferred to a competitor, as previously announced); approximately$361 million of the$139 million March 31, 2022 backlog is expected to be converted to revenue over the following twelve months - The Company announced its financial guidance for fiscal 2022 remains unchanged
“As anticipated, the first quarter of 2022 was negatively impacted by downward pressure on margins related to residual operating challenges in our
“We added
First Quarter 2022 Financial Results Compared to First Quarter 2021
Revenue in the first quarter, typically the lightest period of the fiscal year due to seasonal work factors, was
Operating expenses were
The Company reported a net loss from continuing operations of
Balance Sheet
The Company’s total liquidity (the sum of unrestricted cash and availability under the Company’s revolving credit facility) was
Backlog
Total backlog as of
|
|
Three Months Ended |
||
Backlog - beginning of period |
|
$ |
631,693 |
|
New awards |
|
|
38,293 |
|
Adjustments and cancellations, net |
|
|
(343,471 |
) |
Revenue recognized |
|
|
(69,559 |
) |
Backlog - end of period |
|
$ |
256,956 |
|
Williams estimates that approximately
Outlook
The Company confirmed that guidance previously provided
2022 Guidance |
|
Revenue: |
|
Gross margin: |
|
SG&A: |
|
Adjusted EBITDA* |
|
*See Note 1 — Non-GAAP Financial Measures for information regarding the use of Adjusted EBITDA and forward-looking non-GAAP financial measures.
Webcast and Teleconference
The Company will host a conference call tomorrow,
An audio replay of the call will be available later that day by dialing 412-317-6671 and entering conference ID number 13728732; alternatively, a webcast replay can be found at http://ir.wisgrp.com/, where a transcript will be posted once available.
About Williams
Additional information about Williams can be found on its website: www.wisgrp.com.
Forward-looking Statement Disclaimer
This press release contains “forward-looking statements” within the meaning of the term set forth in the Private Securities Litigation Reform Act of 1995. The forward-looking statements include statements or expectations regarding the Company’s ability to perform in accordance with guidance, build and diversify its backlog and convert backlog to revenue, realize opportunities, including receiving contract awards on outstanding bids and successfully pursuing future opportunities, benefit from potential growth in the Company’s end markets, including from increased infrastructure spending by the
Other important factors that may cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company’s filings with the
Financial Tables Follow
|
||||||||
|
||||||||
|
|
Three Months Ended |
||||||
($ in thousands, except share and per share amounts) |
|
2022 |
|
2021 |
||||
Revenue |
|
$ |
69,559 |
|
|
$ |
60,851 |
|
Cost of revenue |
|
|
63,850 |
|
|
|
54,753 |
|
|
|
|
|
|
|
|
||
Gross profit |
|
|
5,709 |
|
|
|
6,098 |
|
Gross margin |
|
|
8.2 |
% |
|
|
10.0 |
% |
|
|
|
|
|
|
|
||
Selling and marketing expenses |
|
|
330 |
|
|
|
211 |
|
General and administrative expenses |
|
|
6,071 |
|
|
|
6,311 |
|
Depreciation and amortization expense |
|
|
66 |
|
|
|
41 |
|
Total operating expenses |
|
|
6,467 |
|
|
|
6,563 |
|
|
|
|
|
|
|
|
||
Operating loss |
|
|
(758 |
) |
|
|
(465 |
) |
Operating margin |
|
|
(1.1 |
)% |
|
|
(0.8 |
)% |
|
|
|
|
|
|
|
||
Interest expense, net |
|
|
1,219 |
|
|
|
1,293 |
|
Other income, net |
|
|
(179 |
) |
|
|
(360 |
) |
Total other expense, net |
|
|
1,040 |
|
|
|
933 |
|
|
|
|
|
|
|
|
||
Loss from continuing operations before income tax |
|
|
(1,798 |
) |
|
|
(1,398 |
) |
Income tax expense |
|
|
229 |
|
|
|
185 |
|
Loss from continuing operations |
|
|
(2,027 |
) |
|
|
(1,583 |
) |
|
|
|
|
|
|
|
||
Loss from discontinued operations before income tax |
|
|
— |
|
|
|
(79 |
) |
Income tax expense |
|
|
17 |
|
|
|
19 |
|
Loss from discontinued operations |
|
|
(17 |
) |
|
|
(98 |
) |
|
|
|
|
|
|
|
||
Net loss |
|
$ |
(2,044 |
) |
|
$ |
(1,681 |
) |
|
|
|
|
|
|
|
||
Basic loss per common share |
|
|
|
|
|
|
||
Loss from continuing operations |
|
$ |
(0.08 |
) |
|
$ |
(0.06 |
) |
Loss from discontinued operations |
|
|
— |
|
|
|
(0.01 |
) |
Basic loss per common share |
|
$ |
(0.08 |
) |
|
$ |
(0.07 |
) |
|
|
|
|
|
|
|
||
Diluted loss per common share |
|
|
|
|
|
|
||
Loss from continuing operations |
|
$ |
(0.08 |
) |
|
$ |
(0.06 |
) |
Loss from discontinued operations |
|
|
— |
|
|
|
(0.01 |
) |
Diluted loss per common share |
|
$ |
(0.08 |
) |
|
$ |
(0.07 |
) |
|
|
|
|
|
|
|
||
Weighted average common shares outstanding (basic) |
|
|
25,838,562 |
|
|
|
24,933,894 |
|
Weighted average common shares outstanding (diluted) |
|
|
25,838,562 |
|
|
|
24,933,894 |
|
|
||||
First Quarter 2022 |
||||
|
||||
(in millions) |
|
|
$ Change |
|
First quarter 2021 revenue |
|
$ |
60.9 |
|
Other U.S. Nuclear |
|
|
7.1 |
|
Water |
|
|
6.3 |
|
Plant Vogtle Units 3 and 4 |
|
|
1.8 |
|
Project mix |
|
|
1.7 |
|
|
|
|
(4.2 |
) |
Decommissioning |
|
|
(4.0 |
) |
Total change |
|
|
8.7 |
|
First quarter 2022 revenue* |
|
$ |
69.6 |
|
*Numbers may not sum due to rounding
|
||||||||
|
||||||||
|
|
|
|
|
||||
($ in thousands, except per share amounts) |
|
2022 |
|
2021 |
||||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
4,260 |
|
|
$ |
2,482 |
|
Restricted cash |
|
|
468 |
|
|
|
468 |
|
Accounts receivable, net of allowance of |
|
|
33,574 |
|
|
|
35,204 |
|
Contract assets |
|
|
12,838 |
|
|
|
12,683 |
|
Other current assets |
|
|
11,076 |
|
|
|
11,049 |
|
Total current assets |
|
|
62,216 |
|
|
|
61,886 |
|
|
|
|
|
|
|
|
||
Property, plant and equipment, net |
|
|
587 |
|
|
|
653 |
|
|
|
|
35,400 |
|
|
|
35,400 |
|
Intangible assets, net |
|
|
12,500 |
|
|
|
12,500 |
|
Other long-term assets |
|
|
6,998 |
|
|
|
5,712 |
|
Total assets |
|
$ |
117,701 |
|
|
$ |
116,151 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
16,424 |
|
|
$ |
12,168 |
|
Accrued compensation and benefits |
|
|
12,056 |
|
|
|
12,388 |
|
Contract liabilities |
|
|
2,717 |
|
|
|
3,412 |
|
Short-term borrowings |
|
|
- |
|
|
|
676 |
|
Current portion of long-term debt |
|
|
1,050 |
|
|
|
1,050 |
|
Other current liabilities |
|
|
10,288 |
|
|
|
11,017 |
|
Current liabilities of discontinued operations |
|
|
337 |
|
|
|
316 |
|
Total current liabilities |
|
|
42,872 |
|
|
|
41,027 |
|
Long-term debt, net |
|
|
30,228 |
|
|
|
30,328 |
|
Deferred tax liabilities |
|
|
2,447 |
|
|
|
2,442 |
|
Other long-term liabilities |
|
|
3,539 |
|
|
|
1,647 |
|
Long-term liabilities of discontinued operations |
|
|
4,207 |
|
|
|
4,250 |
|
Total liabilities |
|
|
83,293 |
|
|
|
79,694 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
|
|
|
||
Common stock, |
|
|
261 |
|
|
|
261 |
|
Paid-in capital |
|
|
92,080 |
|
|
|
92,227 |
|
Accumulated other comprehensive income (loss) |
|
|
47 |
|
|
|
(95 |
) |
Accumulated deficit |
|
|
(57,974 |
) |
|
|
(55,930 |
) |
|
|
|
(6 |
) |
|
|
(6 |
) |
Total stockholders’ equity |
|
|
34,408 |
|
|
|
36,457 |
|
Total liabilities and stockholders’ equity |
|
$ |
117,701 |
|
$ |
116,151 |
|
|
||||||||
|
||||||||
|
|
Three Months Ended |
||||||
(in thousands) |
|
2022 |
|
2021 |
||||
Operating activities: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(2,044 |
) |
|
$ |
(1,681 |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
||
Net loss from discontinued operations |
|
|
17 |
|
|
|
98 |
|
Deferred income tax provision (benefit) |
|
|
5 |
|
|
|
(13 |
) |
Depreciation and amortization on plant, property and equipment |
|
|
66 |
|
|
|
41 |
|
Amortization of deferred financing costs |
|
|
208 |
|
|
|
208 |
|
Amortization of debt discount |
|
|
50 |
|
|
|
50 |
|
Bad debt expense |
|
|
(35 |
) |
|
|
(18 |
) |
Stock-based compensation |
|
|
(31 |
) |
|
|
715 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
1,713 |
|
|
|
(1,634 |
) |
Contract assets |
|
|
(153 |
) |
|
|
(4,410 |
) |
Other current assets |
|
|
(27 |
) |
|
|
59 |
|
Other assets |
|
|
(1,369 |
) |
|
|
(172 |
) |
Accounts payable |
|
|
4,231 |
|
|
|
(859 |
) |
Accrued and other liabilities |
|
|
619 |
|
|
|
5,112 |
|
Contract liabilities |
|
|
(695 |
) |
|
|
(548 |
) |
Net cash provided by (used in) operating activities, continuing operations |
|
|
2,555 |
|
|
|
(3,052 |
) |
Net cash used in operating activities, discontinued operations |
|
|
(39 |
) |
|
|
(69 |
) |
Net cash provided by (used in) operating activities |
|
|
2,516 |
|
|
|
(3,121 |
) |
Investing activities: |
|
|
|
|
|
|
||
Purchase of property, plant and equipment |
|
|
— |
|
|
|
(56 |
) |
Net cash used in investing activities |
|
|
— |
|
|
|
(56 |
) |
Financing activities: |
|
|
|
|
|
|
||
Repurchase of stock-based awards for payment of statutory taxes due on stock-based compensation |
|
|
— |
|
|
|
(541 |
) |
Proceeds from short-term borrowings |
|
|
66,618 |
|
|
|
57,971 |
|
Repayments of short-term borrowings |
|
|
(67,294 |
) |
|
|
(57,172 |
) |
Repayments of long-term debt |
|
|
(263 |
) |
|
|
(263 |
) |
Net cash used in financing activities |
|
|
(939 |
) |
|
|
(5 |
) |
Effect of exchange rate change on cash |
|
|
201 |
|
|
|
(90 |
) |
Net change in cash, cash equivalents and restricted cash |
|
|
1,778 |
|
|
|
(3,272 |
) |
Cash, cash equivalents and restricted cash, beginning of period |
|
|
2,950 |
|
|
|
9,184 |
|
Cash, cash equivalents and restricted cash, end of period |
|
$ |
4,728 |
|
|
$ |
5,912 |
|
|
|
|
|
|
|
|
||
Supplemental Disclosures: |
|
|
|
|
|
|
||
Cash paid for interest |
|
$ |
867 |
|
|
$ |
875 |
|
Cash paid for income taxes, net of refunds |
|
$ |
36 |
|
|
$ |
1,066 |
|
||||||||
|
||||||||
This press release contains financial measures not derived in accordance with accounting principles generally accepted in |
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|
||||||||
ADJUSTED EBITDA - CONTINUING OPERATIONS |
||||||||
|
||||||||
|
|
Three Months Ended |
||||||
(in thousands) |
|
2022 |
|
2021 |
||||
Loss from continuing operations |
|
$ |
(2,027 |
) |
|
$ |
(1,583 |
) |
Add back: |
|
|
|
|
|
|
||
Interest expense, net |
|
|
1,219 |
|
|
|
1,293 |
|
Income tax expense |
|
|
229 |
|
|
|
185 |
|
Depreciation and amortization expense |
|
|
66 |
|
|
|
41 |
|
Stock-based compensation |
|
|
(31 |
) |
|
|
715 |
|
Severance costs |
|
|
43 |
|
|
|
— |
|
Other professional fees |
|
|
714 |
|
|
|
— |
|
Franchise taxes |
|
|
64 |
|
|
|
60 |
|
Foreign currency gain |
|
|
(135 |
) |
|
|
(90 |
) |
Adjusted EBITDA - continuing operations |
|
$ |
142 |
|
|
$ |
621 |
|
NOTE 1 — Non-GAAP Financial Measures
Adjusted EBITDA-Continuing Operations
Adjusted EBITDA is not calculated through the application of GAAP and is not the required form of disclosure by the
Note Regarding Forward-Looking Non-GAAP Financial Measures
The Company does not provide a reconciliation of forward-looking non-GAAP financial measures to their comparable GAAP financial measures because it could not do so without unreasonable effort due to the unavailability of the information needed to calculate reconciling items and due to the variability, complexity and limited visibility of the adjusting items that would be excluded from the non-GAAP financial measures in future periods. When planning, forecasting and analyzing future periods, the Company does so primarily on a non-GAAP basis without preparing a GAAP analysis.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220512006023/en/
Investor Contact:
646-345-0998
cwitty@darrowir.com
Source:
FAQ
What are Williams Industrial Services Group's Q1 2022 earnings results?
What is Williams Industrial Services Group's guidance for fiscal 2022?
How has the backlog changed for Williams Industrial Services Group?