Aegion Corporation reported lower-than-expected results for first-quarter 2021. Its earnings and revenues lagged the Zacks Consensus Estimate. Although revenues declined year over year for the quarter, its earnings improved significantly on solid Insituform and Corrosion Protection businesses. Charles R. Gordon, president and chief executive officer of Aegion said, “Aegion delivered solid first quarter results that reflect the ongoing strength of our core Insituform business as well as significant profitability improvements from our Corrosion Protection businesses. We remain focused on continuing to drive strong results as we advance efforts toward the close of our previously announced transaction with New Mountain.” Owing to the proposed merger deal with New Mountain Capital, L.L.C., Aegion will not host a conference call to discuss earnings results or provide a financial outlook. The transaction is expected to close on May 17, subject to Aegion’s stockholder approval and other customary closing conditions. Post merger, it will become a private company. Earnings & Revenues Discussion
Aegion reported adjusted earnings per share of 8 cents, missing the consensus mark of 13 cents by 38.5% but increased eight times from the year-ago figure.
Total revenues of $181 million missed the consensus mark of $196 million by 7.7%. The reported figure was down 7.7% year over year due to the negative impact of exited or restructured businesses. Its core Insituform North America unit’s revenues remained on par with the prior-year level despite weather challenges.
Quarter-end backlog was $662 million, which increased 3% from the prior year. Operating Highlights
Adjusted gross margin of 23.6% expanded 290 basis points (bps) from the year-ago period. Adjusted operating margin of 3.3% was up 180 bps year over year. The upside was driven by significant profitability improvements in the Corrosion Protection segment, primarily from the Corrpro North America business.
Aegion’s cash and cash equivalents as of Mar 31, 2021 were $93.3 million, up from $94.8 million at 2020-end. Long-term debt, less current maturities, totaled $186.6 million compared with $194 million at 2020-end. Net cash provided by operations was $1.2 million in the first three months of 2021 versus $8.1 million cash used in operations in the comparable year-ago period.
Aegion — which share space with
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