EX-99 2 a09302020exhibit99segm.htm EX-99

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EXHIBIT 99

Selected Segment Financial Information for the Fiscal Year and Interim Periods of Fiscal 2020

(Unaudited)

(In thousands)

						Three Months Ended																																										Fiscal Year Ended
						September 30, 2019						December 31, 2019						March 31, 2020						June 30, 2020						June 30, 2020
Gross revenue(1)
Utility and Power Infrastructure						$	47,727					$	49,155					$	55,670					$	59,449					$	212,001
Process and Industrial Facilities(2)						155,452						143,769						76,297						49,192						424,710
Storage and Terminal Solutions						136,001						128,008						118,711						88,151						470,871
						$	339,180					$	320,932					$	250,678					$	196,792					$	1,107,582
Less: Intersegment revenue(1)
Process and Industrial Facilities						$	575					$	886					$	1,327					$	51					$	2,839
Storage and Terminal Solutions						508						1,369						1,024						904						3,805
						$	1,083					$	2,255					$	2,351					$	955					$	6,644
Consolidated revenue
Utility and Power Infrastructure						$	47,727					$	49,155					$	55,670					$	59,449					$	212,001
Process and Industrial Facilities(2)						154,877						142,883						74,970						49,141						421,871
Storage and Terminal Solutions						135,493						126,639						117,687						87,247						467,066
						$	338,097					$	318,677					$	248,327					$	195,837					$	1,100,938
Gross profit (loss)
Utility and Power Infrastructure						$	(168)					$	(1,226)					$	3,138					$	5,337					$	7,081
Process and Industrial Facilities						13,590						13,838						3,070						5,851						36,349
Storage and Terminal Solutions						19,742						18,026						14,907						8,738						61,413
Corporate						(699)						(637)						(638)						(693)						(2,667)
						$	32,465					$	30,001					$	20,477					$	19,233					$	102,176
Selling, general and administrative expenses
Utility and Power Infrastructure						$	2,632					$	2,778					$	2,081					$	2,556					$	10,047
Process and Industrial Facilities						6,938						7,385						5,343						4,600						24,266
Storage and Terminal Solutions						6,986						6,791						6,165						6,444						26,386
Corporate						7,135						6,211						6,129						6,102						25,577
						$	23,691					$	23,165					$	19,718					$	19,702					$	86,276
Intangible asset impairments and restructuring costs
Utility and Power Infrastructure						$	—					$	24,900					$	935					$	1,790					$	27,625
Process and Industrial Facilities						—						13,615						4,087						5,212						22,914
Storage and Terminal Solutions						—						—						821						245						1,066
Corporate						—						—						716						204						920
						$	—					$	38,515					$	6,559					$	7,451					$	52,525
Operating income (loss)
Utility and Power Infrastructure						$	(2,800)					$	(28,904)					$	122					$	991					$	(30,591)
Process and Industrial Facilities						6,652						(7,162)						(6,360)						(3,961)						(10,831)
Storage and Terminal Solutions						12,756						11,235						7,921						2,049						33,961
Corporate						(7,834)						(6,848)						(7,483)						(6,999)						(29,164)
						$	8,774					$	(31,679)					$	(5,800)					$	(7,920)					$	(36,625)
Adjusted operating income (loss)(3)
Utility and Power Infrastructure						$	(2,800)					$	(4,004)					$	1,057					$	2,781					$	(2,966)
Process and Industrial Facilities						6,652						6,453						(2,273)						1,251						12,083
Storage and Terminal Solutions						12,756						11,235						8,742						2,294						35,027
Corporate						(7,834)						(6,848)						(6,767)						(6,795)						(28,244)
						$	8,774					$	6,836					$	759					$	(469)					$	15,900

(1)Fiscal 2020 gross revenue and intersegment revenue increased by $22 thousand compared to previously reported gross and intersegment revenue as a result of the reclassification of intercompany work caused by the segment change.

(2)The Company made a strategic decision to exit the domestic iron and steel business early in the third quarter of fiscal 2020, which reduced revenue in the Process and Industrial Facilities segment during the second half of fiscal 2020.

(3)Adjusted operating income (loss) depicts our operating income (loss) before the impacts of intangible asset impairments and restructuring costs. This measure is non-GAAP. The most directly comparable financial measure is operating income (loss) in our consolidated statements of income. We presented this measure because we believe it more clearly depicts the core operating results of the Company during the periods presented and provides a more comparable measure of the Company's operating results to our peers. Since this measure is not calculated in accordance with GAAP, it should be considered in addition to, rather than as a substitute for, the most directly comparable GAAP financial measure.

1

Selected Segment Financial Information for the Fiscal Year and Interim Periods of Fiscal 2019

(Unaudited)

(In thousands)

						Three Months Ended																																										Fiscal Year Ended
						September 30, 2018						December 31, 2018						March 31, 2019						June 30, 2019						June 30, 2019
Gross revenue(1)
Utility and Power Infrastructure						$	53,131					$	65,267					$	66,450					$	65,019					$	249,867
Process and Industrial Facilities						155,504						151,891						159,831						188,911						656,137
Storage and Terminal Solutions						110,726						124,930						133,587						145,705						514,948
						$	319,361					$	342,088					$	359,868					$	399,635					$	1,420,952
Less: Intersegment revenue(1)
Process and Industrial Facilities						$	71					$	1,201					$	795					$	56					$	2,123
Storage and Terminal Solutions						779						319						186						865						2,149
						$	850					$	1,520					$	981					$	921					$	4,272
Consolidated revenue
Utility and Power Infrastructure						$	53,131					$	65,267					$	66,450					$	65,019					$	249,867
Process and Industrial Facilities						155,433						150,690						159,036						188,855						654,014
Storage and Terminal Solutions						109,947						124,611						133,401						144,840						512,799
						$	318,511					$	340,568					$	358,887					$	398,714					$	1,416,680
Gross profit (loss)
Utility and Power Infrastructure						$	4,400					$	4,686					$	7,023					$	5,052					$	21,161
Process and Industrial Facilities						10,599						12,849						16,138						19,267						58,853
Storage and Terminal Solutions						9,122						11,064						14,508						19,906						54,600
Corporate						(700)						(713)						(763)						(487)						(2,663)
						$	23,421					$	27,886					$	36,906					$	43,738					$	131,951
Selling, general and administrative expenses
Utility and Power Infrastructure						$	2,230					$	2,642					$	2,646					$	2,324					$	9,842
Process and Industrial Facilities						6,390						6,264						6,517						7,761						26,932
Storage and Terminal Solutions						6,772						7,053						7,916						8,578						30,319
Corporate						5,809						6,400						7,033						7,686						26,928
						$	21,201					$	22,359					$	24,112					$	26,349					$	94,021
Operating income (loss)
Utility and Power Infrastructure						$	2,170					$	2,044					$	4,377					$	2,728					$	11,319
Process and Industrial Facilities						4,209						6,585						9,621						11,506						31,921
Storage and Terminal Solutions						2,350						4,011						6,592						11,328						24,281
Corporate						(6,509)						(7,113)						(7,796)						(8,173)						(29,591)
						$	2,220					$	5,527					$	12,794					$	17,389					$	37,930

(1)Fiscal 2019 gross revenue and intersegment revenue decreased by $324 thousand compared to previously reported gross and intersegment revenue as a result of the reclassification of intercompany work caused by the segment change.

2

Backlog

The following tables present the Company's quarterly and annual summary of changes in backlog during fiscal 2020 and fiscal 2019 under the new basis of segmentation.

Fiscal 2020

Three months ended September 30, 2019:

						Utility and Power Infrastructure						Process and Industrial Facilities						Storage and Terminal Solutions						Total
						(In thousands)
Backlog as of June 30, 2019						$	271,840					$	376,239					$	450,270					$	1,098,349
Project awards						30,791						146,819						144,078						321,688
Revenue recognized						(47,727)						(154,877)						(135,493)						(338,097)
Backlog as of September 30, 2019						$	254,904					$	368,181					$	458,855					$	1,081,940
Book-to-bill ratio(1)						0.6						0.9						1.1						1.0

(1)Calculated by dividing project awards by revenue recognized.

Three months ended December 31, 2019:

						Utility and Power Infrastructure						Process and Industrial Facilities						Storage and Terminal Solutions						Total
						(In thousands)
Backlog as of September 30, 2019						$	254,904					$	368,181					$	458,855					$	1,081,940
Project awards						13,506						72,734						111,042						197,282
Project cancellations(1)						—						(88,310)						—						(88,310)
Revenue recognized						(49,155)						(142,883)						(126,639)						(318,677)
Backlog as of December 31, 2019						$	219,255					$	209,722					$	443,258					$	872,235
Book-to-bill ratio(2)						0.3						0.5						0.9						0.6

(1)Process and Industrial Facilities cancellations related to our exit from the iron and steel business in the United States and the cancellation of a coke battery project in Canada.

(2)Calculated by dividing project awards by revenue recognized.

Three months ended March 31, 2020:

						Utility and Power Infrastructure						Process and Industrial Facilities						Storage and Terminal Solutions						Total
						(In thousands)
Backlog as of December 31, 2019						$	219,255					$	209,722					$	443,258					$	872,235
Project awards						19,221						37,271						56,821						113,313
Project cancellations(1)						—						(10,165)						—						(10,165)
Revenue recognized						(55,670)						(74,970)						(117,687)						(248,327)
Backlog as of March 31, 2020						$	182,806					$	161,858					$	382,392					$	727,056
Book-to-bill ratio(2)						0.3						0.5						0.5						0.5

(1)Process and Industrial Facilities cancellations consists of turnaround work transferred to a local contractor as a result of COVID-19 precautions and cancellation of work due to the final wind-down of our domestic iron and steel maintenance business following our strategic decision to exit the business.

(2)Calculated by dividing project awards by revenue recognized.

3

Three months ended June 30, 2020:

						Utility and Power Infrastructure						Process and Industrial Facilities						Storage and Terminal Solutions						Total
						(In thousands)
Backlog as of March 31, 2020						$	182,806					$	161,858					$	382,392					$	727,056
Project awards						149,459						33,008						44,779						227,246
Revenue recognized						(59,449)						(49,141)						(87,247)						(195,837)
Backlog as of June 30, 2020						$	272,816					$	145,725					$	339,924					$	758,465
Book-to-bill ratio(1)						2.5						0.7						0.5						1.2

(1)Calculated by dividing project awards by revenue recognized.

Twelve months ended June 30, 2020:

						Utility and Power Infrastructure						Process and Industrial Facilities						Storage and Terminal Solutions						Total
						(In thousands)
Backlog as of June 30, 2019						$	271,840					$	376,239					$	450,270					$	1,098,349
Project awards						212,977						289,832						356,720						859,529
Project cancellations(1)						—						(98,475)						—						(98,475)
Revenue recognized						(212,001)						(421,871)						(467,066)						(1,100,938)
Backlog as of June 30, 2020						$	272,816					$	145,725					$	339,924					$	758,465
Book-to-bill ratio(2)						1.0						0.7						0.8						0.8

(1)Process and Industrial Facilities cancellations related to our exit from the iron and steel business in the United States, the cancellation of a coke battery project in Canada, and turnaround work transferred to a local contractor as a result of COVID-19 precautions.

(2)Calculated by dividing project awards by revenue recognized.

Fiscal 2019

Three months ended September 30, 2018:

						Utility and Power Infrastructure						Process and Industrial Facilities						Storage and Terminal Solutions						Total
						(In thousands)
Backlog as of June 30, 2018						$	149,150					$	464,033					$	605,413					$	1,218,596
Project awards						39,628						84,968						84,791						209,387
Revenue recognized						(53,131)						(155,433)						(109,947)						(318,511)
Backlog as of September 30, 2018						$	135,647					$	393,568					$	580,257					$	1,109,472
Book-to-bill ratio(1)						0.7						0.5						0.8						0.7

(1)Calculated by dividing project awards by revenue recognized.

4

Three months ended December 31, 2018:

						Utility and Power Infrastructure						Process and Industrial Facilities						Storage and Terminal Solutions						Total
						(In thousands)
Backlog as of September 30, 2018						$	135,647					$	393,568					$	580,257					$	1,109,472
Project awards						52,030						139,912						85,550						277,492
Revenue recognized						(65,267)						(150,690)						(124,611)						(340,568)
Backlog as of December 31, 2018						$	122,410					$	382,790					$	541,196					$	1,046,396
Book-to-bill ratio(1)						0.8						0.9						0.7						0.8

(1)Calculated by dividing project awards by revenue recognized.

Three months ended March 31, 2019:

						Utility and Power Infrastructure						Process and Industrial Facilities						Storage and Terminal Solutions						Total
						(In thousands)
Backlog as of December 31, 2018						$	122,410					$	382,790					$	541,196					$	1,046,396
Project awards						244,530						156,447						57,954						458,931
Revenue recognized						(66,450)						(159,036)						(133,401)						(358,887)
Backlog as of March 31, 2019						$	300,490					$	380,201					$	465,749					$	1,146,440
Book-to-bill ratio(1)						3.7						1.0						0.4						1.3

(1)Calculated by dividing project awards by revenue recognized.

Three months ended June 30, 2019:

						Utility and Power Infrastructure						Process and Industrial Facilities						Storage and Terminal Solutions						Total
						(In thousands)
Backlog as of March 31, 2019						$	300,490					$	380,201					$	465,749					$	1,146,440
Project awards						36,369						184,893						129,361						350,623
Revenue recognized						(65,019)						(188,855)						(144,840)						(398,714)
Backlog as of June 30, 2019						$	271,840					$	376,239					$	450,270					$	1,098,349
Book-to-bill ratio(1)						0.6						1.0						0.9						0.9

(1)Calculated by dividing project awards by revenue recognized.

Twelve months ended June 30, 2019:

						Utility and Power Infrastructure						Process and Industrial Facilities						Storage and Terminal Solutions						Total
						(In thousands)
Backlog as of June 30, 2018						$	149,150					$	464,033					$	605,413					$	1,218,596
Project awards						372,557						566,220						357,656						1,296,433
Revenue recognized						(249,867)						(654,014)						(512,799)						(1,416,680)
Backlog as of June 30, 2019						$	271,840					$	376,239					$	450,270					$	1,098,349
Book-to-bill ratio(1)						1.5						0.9						0.7						0.9

(1)Calculated by dividing project awards by revenue recognized.

5