Williams Reports Second Quarter 2021 Financial Results
Williams Industrial Services Group Inc. (NYSE American: WLMS) reported a 26.2% year-over-year revenue increase for Q2 2021, totaling $91.6 million. Net income rose to $2.9 million or $0.11 per share, up from $2.5 million a year prior. The company's backlog reached $664.4 million, a 44.2% increase from Q1, with $199.5 million expected to convert to revenue in the next twelve months. Operating income stood at $2.7 million, despite a decrease in gross margin to 10.2%. The outlook remains stable, affirming guidance for $310 million to $320 million in revenue for 2021.
- Revenue increased 26.2% year-over-year to $91.6 million.
- Net income improved by 14.6% year-over-year, reaching $2.9 million.
- Backlog rose by 44.2% to $664.4 million, indicating strong future revenue potential.
- Company reaffirmed 2021 revenue guidance of $310 million to $320 million.
- Gross margin decreased to 10.2% from 12.9% year-over-year.
- Operating income declined to $2.7 million from $3.8 million in Q2 2020.
- Operating expenses increased to $6.6 million, reflecting higher costs.
Williams Industrial Services Group Inc. (NYSE American: WLMS) (“Williams” or the “Company”), an energy and industrial infrastructure services company, today reported its financial results for the fiscal second quarter ended June 30, 2021.
Recent Highlights
-
Williams posted revenue of
$91.6 million in the second quarter of 2021, an increase of26.2% year-over-year, compared with$72.5 million in the prior-year period -
The Company reported net income of
$2.9 million , an increase of14.6% year-over-year, or$0.11 per share, in the second quarter versus net income of$2.5 million , or$0.10 per share, in the second quarter of 2020 -
Adjusted EBITDA1 was
$4.9 million for the second quarter of 2021 compared with$5.0 million in the prior-year period -
As of June 30, 2021, the Company’s backlog was
$664.4 million , an increase of44.2% , compared to$460.6 million as of March 31, 2021, with approximately$199.5 million expected to be converted to revenue over the following twelve months and$123.4 million expected to be converted by the end of the fiscal year - The Company announced on June 1, 2021 that it had been granted an expansion of its nuclear decommissioning scope with Holtec and CDI with the addition of three units at the Indian Point Energy Center (“IPEC”), a multi-year project increase
“I’m pleased to report that Williams’ second quarter results met our expectations,” said Tracy Pagliara, President and CEO of Williams. “Revenue rose
Second Quarter 2021 Financial Results Compared to Second Quarter 2020
Revenue in the second quarter of 2021 was
Gross profit was
The Company reported net income of
Balance Sheet
Total liquidity (the sum of unrestricted cash and availability under the Revolving Credit Facility) was
Backlog
Total backlog as of June 30, 2021 was
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2021 |
|
Six Months Ended June 30, 2021 |
||
Backlog - beginning of period |
|
$ |
460,550 |
|
$ |
443,850 |
New awards |
|
|
262,213 |
|
|
299,454 |
Adjustments and cancellations, net |
|
|
33,165 |
|
|
73,475 |
Revenue recognized |
|
|
(91,571) |
|
|
(152,422) |
Backlog - end of period |
|
$ |
664,357 |
|
$ |
664,357 |
Williams estimates that approximately
Outlook
The Company reaffirmed previous guidance (issued February 8, 2021) for the current fiscal year.
|
|
2021 Guidance |
|
Revenue: |
|
Gross margin: |
|
SG&A: |
|
Adjusted EBITDA (from continuing operations)*: |
|
*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 today, August 18, 2021, at 10:00 a.m. Eastern time. A webcast of the call and an accompanying slide presentation will be available at www.wisgrp.com. To access the conference call by telephone, listeners should dial 201-493-6780.
An audio replay of the call will be available later that day by dialing 412-317-6671 and entering conference ID number 13722254; alternatively, a webcast replay can be found at http://ir.wisgrp.com/, where a transcript will be posted once available.
About Williams
Williams Industrial Services Group has been safely helping plant owners and operators enhance asset value for more than 50 years. The Company is a leading provider of infrastructure related services to blue-chip customers in energy and industrial end markets, including a broad range of construction maintenance, modification, and support services. Williams’ mission is to be the preferred provider of construction, maintenance, and specialty services through commitment to superior safety performance, focus on innovation, and dedication to delivering unsurpassed value to its customers.
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 the possibility of increased infrastructure spending by the U.S. federal government, and successfully achieve its growth and strategic initiatives, including decreasing the Company’s outstanding indebtedness, future demand for the Company’s services, and expectations regarding future revenues, cash flow, and other related matters. These statements reflect the Company’s current views of future events and financial performance and are subject to a number of risks and uncertainties, some of which have been, and may further be, exacerbated by the COVID-19 pandemic, including the Company’s level of indebtedness and ability to make payments on, and satisfy the financial and other covenants contained in, its debt facilities, as well as its ability to engage in certain transactions and activities due to limitations and covenants contained in such facilities; its ability to generate sufficient cash resources to continue funding operations and the possibility that it may be unable to obtain any additional funding as needed or incur losses from operations in the future; exposure to market risks from changes in interest rates; failure to maintain effective internal control over financial reporting and disclosure controls and procedures; the Company’s ability to attract and retain qualified personnel, skilled workers, and key officers; failure to successfully implement or realize its business strategies, plans and objectives of management, and liquidity, operating and growth initiatives and opportunities, including its expansion into international markets and its ability to identify potential candidates for, and consummate, acquisition, disposition, or investment transactions; the loss of one or more of its significant customers; its competitive position; market outlook and trends in the Company’s industry, including the possibility of reduced investment in, or increased regulation of, nuclear power plants, declines in public infrastructure construction, and reductions in government funding; the failure of the U.S. Congress to pass infrastructure-related legislation benefiting the Company’s end markets; costs exceeding estimates the Company uses to set fixed-price contracts; harm to the Company’s reputation or profitability due to, among other things, internal operational issues, poor subcontractor performances or subcontractor insolvency; potential insolvency or financial distress of third parties, including customers and suppliers; the Company’s contract backlog and related amounts to be recognized as revenue; its ability to maintain its safety record, the risks of potential liability and adequacy of insurance; adverse changes in the Company’s relationships with suppliers, vendors, and subcontractors; compliance with environmental, health, safety and other related laws and regulations; limitations or modifications to indemnification regulations of the U.S. or Canada; the Company’s expected financial condition, future cash flows, results of operations and future capital and other expenditures; the impact of general economic conditions including the current economic disruption and any recession resulting from the COVID-19 pandemic; the impact of the COVID-19 pandemic on the Company’s business, results of operations, financial condition, and cash flows, including the potential for additional COVID-19 cases to occur at the Company’s active or future job sites, which potentially could impact cost and labor availability; information technology vulnerabilities and cyberattacks on the Company’s networks; the Company’s failure to comply with applicable laws and regulations, including, but not limited to, those relating to privacy and anti-bribery; the Company’s participation in multiemployer pension plans; the impact of any disruptions resulting from the expiration of collective bargaining agreements; the impact of natural disasters and other severe catastrophic events (such as the ongoing COVID-19 pandemic); the impact of changes in tax regulations and laws, including future income tax payments and utilization of net operating loss and foreign tax credit carryforwards; volatility of the market price for the Company’s common stock; the Company’s ability to maintain its stock exchange listing; the effects of anti-takeover provisions in the Company’s organizational documents and Delaware law; the impact of future offerings or sales of the Company’s common stock on the market price of such stock; expected outcomes of legal or regulatory proceedings and their anticipated effects on the Company’s results of operations; and any other statements regarding future growth, future cash needs, future operations, business plans and future financial results.
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 U.S. Securities and Exchange Commission, including the section of the Annual Report on Form 10-K for its 2020 fiscal year titled “Risk Factors.” Any forward-looking statement speaks only as of the date of this press release. Except as may be required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, and you are cautioned not to rely upon them unduly.
|
||||||||||||||||
WILLIAMS INDUSTRIAL SERVICES GROUP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
||||||||||||||||
|
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
($ in thousands, except share and per share amounts) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Revenue |
|
$ |
91,571 |
|
|
$ |
72,549 |
|
|
$ |
152,422 |
|
|
|
138,696 |
|
Cost of revenue |
|
|
82,218 |
|
|
|
63,194 |
|
|
|
136,971 |
|
|
|
122,432 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profit |
|
|
9,353 |
|
|
|
9,355 |
|
|
|
15,451 |
|
|
|
16,264 |
|
Gross margin |
|
|
10.2 |
% |
|
|
12.9 |
% |
|
|
10.1 |
% |
|
|
11.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling and marketing expenses |
|
|
231 |
|
|
|
140 |
|
|
|
442 |
|
|
|
278 |
|
General and administrative expenses |
|
|
6,372 |
|
|
|
5,386 |
|
|
|
12,683 |
|
|
|
11,586 |
|
Depreciation and amortization expense |
|
|
46 |
|
|
|
57 |
|
|
|
87 |
|
|
|
98 |
|
Total operating expenses |
|
|
6,649 |
|
|
|
5,583 |
|
|
|
13,212 |
|
|
|
11,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income |
|
|
2,704 |
|
|
|
3,772 |
|
|
|
2,239 |
|
|
|
4,302 |
|
Operating margin |
|
|
3.0 |
% |
|
|
5.2 |
% |
|
|
1.5 |
% |
|
|
3.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense, net |
|
|
1,213 |
|
|
|
1,566 |
|
|
|
2,506 |
|
|
|
3,099 |
|
Other income, net |
|
|
(1,232 |
) |
|
|
(499 |
) |
|
|
(1,592 |
) |
|
|
(621 |
) |
Total other (income) expense, net |
|
|
(19 |
) |
|
|
1,067 |
|
|
|
914 |
|
|
|
2,478 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income from continuing operations before income tax |
|
|
2,723 |
|
|
|
2,705 |
|
|
|
1,325 |
|
|
|
1,824 |
|
Income tax expense |
|
|
78 |
|
|
|
196 |
|
|
|
262 |
|
|
|
244 |
|
Income from continuing operations |
|
|
2,646 |
|
|
|
2,509 |
|
|
|
1,063 |
|
|
|
1,580 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income (loss) from discontinued operations before income tax |
|
|
243 |
|
|
|
(102 |
) |
|
|
164 |
|
|
|
(156 |
) |
Income tax (benefit) expense |
|
|
18 |
|
|
|
(98 |
) |
|
|
37 |
|
|
|
(80 |
) |
Income (loss) from discontinued operations |
|
|
225 |
|
|
|
(4 |
) |
|
|
127 |
|
|
|
(76 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
2,871 |
|
|
$ |
2,505 |
|
|
$ |
1,190 |
|
|
|
1,504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income from continuing operations |
|
$ |
0.10 |
|
|
$ |
0.10 |
|
|
$ |
0.04 |
|
|
$ |
0.07 |
|
Income (loss) from discontinued operations |
|
|
0.01 |
|
|
|
0.00 |
|
|
|
0.01 |
|
|
|
0.00 |
|
Basic earnings per common share |
|
$ |
0.11 |
|
|
$ |
0.10 |
|
|
$ |
0.05 |
|
|
|
0.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income from continuing operations |
|
$ |
0.10 |
|
|
$ |
0.10 |
|
|
$ |
0.04 |
|
|
$ |
0.07 |
|
Income (loss) from discontinued operations |
|
|
0.01 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Diluted earnings per common share |
|
$ |
0.11 |
|
|
$ |
0.10 |
|
|
$ |
0.05 |
|
|
|
0.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding (basic) |
|
|
25,683,258 |
|
|
|
24,773,788 |
|
|
|
25,306,130 |
|
|
|
22,560,723 |
|
Weighted average common shares outstanding (diluted) |
|
|
26,436,505 |
|
|
|
25,190,893 |
|
|
|
26,069,091 |
|
|
|
23,205,700 |
|
|
||||
WILLIAMS INDUSTRIAL SERVICES GROUP INC. AND SUBSIDIARIES REVENUE BRIDGE ANALYSIS*
|
||||
Second Quarter 2021 Revenue Bridge |
||||
|
|
|
|
|
(in millions) |
|
|
$ Change |
|
Second quarter 2020 revenue |
|
$ |
72.5 |
|
Plant Vogtle Units 3 and 4 |
|
|
(12.3 |
) |
Decommissioning |
|
|
6.8 |
|
Planned outage |
|
|
17.7 |
|
Fossil |
|
|
5.2 |
|
Other |
|
|
1.7 |
|
Total change |
|
|
19.1 |
|
Second quarter 2021 revenue* |
|
$ |
91.6 |
|
*Numbers may not sum due to rounding |
|
||||||||
WILLIAMS INDUSTRIAL SERVICES GROUP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
||||||||
|
||||||||
|
|
June 30, |
|
December 31, |
||||
($ in thousands, except share and per share amounts) |
|
2021 |
|
2020 |
||||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
7,710 |
|
|
$ |
8,716 |
|
Restricted cash |
|
|
468 |
|
|
|
468 |
|
Accounts receivable, net of allowance of |
|
|
30,753 |
|
|
|
27,549 |
|
Contract assets |
|
|
12,265 |
|
|
|
7,969 |
|
Other current assets |
|
|
8,116 |
|
|
|
6,457 |
|
Total current assets |
|
|
59,312 |
|
|
|
51,159 |
|
|
|
|
|
|
|
|
||
Property, plant and equipment, net |
|
|
642 |
|
|
|
309 |
|
Goodwill |
|
|
35,400 |
|
|
|
35,400 |
|
Intangible assets, net |
|
|
12,500 |
|
|
|
12,500 |
|
Other long-term assets |
|
|
5,763 |
|
|
|
5,712 |
|
Total assets |
|
$ |
113,617 |
|
|
$ |
105,080 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
7,918 |
|
|
$ |
6,210 |
|
Accrued compensation and benefits |
|
|
18,540 |
|
|
|
15,800 |
|
Contract liabilities |
|
|
1,283 |
|
|
|
2,529 |
|
Short-term borrowings |
|
|
2,064 |
|
|
|
352 |
|
Current portion of long-term debt |
|
|
1,050 |
|
|
|
1,050 |
|
Other current liabilities |
|
|
9,872 |
|
|
|
7,170 |
|
Current liabilities of discontinued operations |
|
|
338 |
|
|
|
342 |
|
Total current liabilities |
|
|
41,065 |
|
|
|
33,453 |
|
Long-term debt, net |
|
|
30,528 |
|
|
|
30,728 |
|
Deferred tax liabilities |
|
|
2,413 |
|
|
|
2,440 |
|
Other long-term liabilities |
|
|
1,738 |
|
|
|
2,098 |
|
Long-term liabilities of discontinued operations |
|
|
4,204 |
|
|
|
4,466 |
|
Total liabilities |
|
|
79,948 |
|
|
|
73,185 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
|
|
|
||
Common stock, |
|
|
260 |
|
|
|
256 |
|
Paid-in capital |
|
|
90,836 |
|
|
|
90,292 |
|
Accumulated other comprehensive income |
|
|
62 |
|
|
|
28 |
|
Accumulated deficit |
|
|
(57,483 |
) |
|
|
(58,673 |
) |
Treasury stock, at par (469,168 and 589,891 common shares, respectively) |
|
|
(6 |
) |
|
|
(8 |
) |
Total stockholders’ equity |
|
|
33,669 |
|
|
|
31,895 |
|
Total liabilities and stockholders’ equity |
|
$ |
113,617 |
|
|
$ |
105,080 |
|
|
||||||||
WILLIAMS INDUSTRIAL SERVICES GROUP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||||||
|
|
Six Months Ended June 30, |
||||||
(in thousands) |
|
2021 |
|
2020 |
||||
Operating activities: |
|
|
|
|
|
|
||
Net income |
|
$ |
1,190 |
|
|
$ |
1,504 |
|
Adjustments to reconcile net income to net cash used in operating activities: |
|
|
|
|
|
|
||
Net (income) loss from discontinued operations |
|
|
(127 |
) |
|
|
76 |
|
Deferred income tax provision (benefit) |
|
|
(25 |
) |
|
|
41 |
|
Depreciation and amortization on plant, property and equipment |
|
|
86 |
|
|
|
92 |
|
Amortization of deferred financing costs |
|
|
415 |
|
|
|
365 |
|
Amortization of debt discount |
|
|
100 |
|
|
|
— |
|
Bad debt expense |
|
|
(51 |
) |
|
|
3 |
|
Stock-based compensation |
|
|
1,460 |
|
|
|
1,122 |
|
Changes in operating assets and liabilities, net of businesses sold: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(3,040 |
) |
|
|
(9,260 |
) |
Contract assets |
|
|
(4,268 |
) |
|
|
(3,458 |
) |
Other current assets |
|
|
(1,561 |
) |
|
|
(981 |
) |
Other assets |
|
|
(175 |
) |
|
|
(591 |
) |
Accounts payable |
|
|
1,546 |
|
|
|
(5,235 |
) |
Accrued and other liabilities |
|
|
4,432 |
|
|
|
6,586 |
|
Contract liabilities |
|
|
(1,246 |
) |
|
|
491 |
|
Net cash used in operating activities, continuing operations |
|
|
(1,264 |
) |
|
|
(9,245 |
) |
Net cash used in operating activities, discontinued operations |
|
|
(139 |
) |
|
|
(141 |
) |
Net cash used in operating activities |
|
|
(1,403 |
) |
|
|
(9,386 |
) |
Investing activities: |
|
|
|
|
|
|
||
Purchase of property, plant and equipment |
|
|
(418 |
) |
|
|
(89 |
) |
Net cash used in investing activities |
|
|
(418 |
) |
|
|
(89 |
) |
Financing activities: |
|
|
|
|
|
|
||
Repurchase of stock-based awards for payment of statutory taxes due on stock-based compensation |
|
|
(501 |
) |
|
|
(218 |
) |
Proceeds from issuance of common stock |
|
|
— |
|
|
|
6,488 |
|
Debt issuance costs |
|
|
— |
|
|
|
(325 |
) |
Proceeds from short-term borrowings |
|
|
140,194 |
|
|
|
114,796 |
|
Repayments of short-term borrowings |
|
|
(138,482 |
) |
|
|
(114,242 |
) |
Repayments of long-term debt |
|
|
(525 |
) |
|
|
(175 |
) |
Net cash provided by (used in) financing activities |
|
|
686 |
|
|
|
6,324 |
|
Effect of exchange rate change on cash |
|
|
129 |
|
|
|
(149 |
) |
Net change in cash, cash equivalents and restricted cash |
|
|
(1,006 |
) |
|
|
(3,300 |
) |
Cash, cash equivalents and restricted cash, beginning of period |
|
|
9,184 |
|
|
|
7,818 |
|
Cash, cash equivalents and restricted cash, end of period |
|
$ |
8,178 |
|
|
$ |
4,518 |
|
|
|
|
|
|
|
|
||
Supplemental Disclosures: |
|
|
|
|
|
|
||
Cash paid for interest |
|
$ |
1,887 |
|
|
$ |
1,811 |
|
Noncash amendment fee related to revolving credit facility |
|
$ |
— |
|
|
$ |
150 |
|
Cash paid for income taxes, net of refunds |
|
$ |
1,553 |
|
|
$ |
— |
|
||||||||||||||||
WILLIAMS INDUSTRIAL SERVICES GROUP INC. AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURE (UNAUDITED) |
||||||||||||||||
This press release contains financial measures not derived in accordance with accounting principles generally accepted in the United States (“GAAP”). A reconciliation to the most comparable GAAP measure is provided below.
ADJUSTED EBITDA - CONTINUING OPERATIONS
|
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
(in thousands) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Income from continuing operations |
|
$ |
2,646 |
|
|
$ |
2,509 |
|
|
$ |
1,063 |
|
|
$ |
1,580 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense, net |
|
|
1,213 |
|
|
|
1,566 |
|
|
|
2,506 |
|
|
|
3,099 |
|
Income tax expense |
|
|
78 |
|
|
|
196 |
|
|
|
262 |
|
|
|
244 |
|
Depreciation and amortization expense |
|
|
46 |
|
|
|
57 |
|
|
|
87 |
|
|
|
98 |
|
Stock-based compensation |
|
|
745 |
|
|
|
616 |
|
|
|
1,460 |
|
|
|
1,087 |
|
Other professional fees |
|
|
— |
|
|
|
7 |
|
|
|
— |
|
|
|
163 |
|
Franchise taxes |
|
|
62 |
|
|
|
63 |
|
|
|
122 |
|
|
|
139 |
|
Settlement expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
69 |
|
Foreign currency (gain) loss |
|
|
86 |
|
|
(36 |
) |
|
|
(4 |
) |
|
|
59 |
|
|
Adjusted EBITDA - continuing operations |
|
$ |
4,876 |
|
|
$ |
4,978 |
|
|
$ |
5,496 |
|
|
$ |
6,538 |
|
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 U.S. Securities and Exchange Commission. Adjusted EBITDA is the sum of the Company’s income (loss) from continuing operations before interest expense, net, and income tax (benefit) expense and unusual gains or charges. It also excludes non-cash charges such as depreciation and amortization. The Company’s management believes adjusted EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare the performance of its core operations from period to period by removing the impact of the capital structure (interest), tangible and intangible asset base (depreciation and amortization), taxes and unusual gains or charges (stock-based compensation, other professional fees, franchise taxes, foreign currency (gain) loss, and settlement expenses), which are not always commensurate with the reporting period in which such items are included. Williams’ credit facilities also contain ratios based on EBITDA. Adjusted EBITDA should not be considered an alternative to net income or as a better measure of liquidity than net cash flows from operating activities, as determined by GAAP, and, therefore, should not be used in isolation from, but in conjunction with, the GAAP measures. The use of any non-GAAP measure may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies.
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/20210818005089/en/
FAQ
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