Willbros Group Reports Q4 Revs $404.9M vs $387M Est

Willbros Group, Inc. WG announced today results from continuing operations for the fourth quarter and full year 2011. The Company recorded a net loss from continuing operations in the fourth quarter of $53.7 million, or $1.13 per share, on revenue of $404.5 million. Contributing to the fourth quarter loss was an after-tax impairment charge of $29.7 million related to goodwill carried in the Upstream Oil and Gas and Downstream Oil and Gas operating segments in addition to the normal seasonality of the business model. Fourth quarter results were also negatively impacted by $4.6 million in tax expense related to the repatriation of foreign earnings and profits. Excluding the impact of the non-cash impairment charge and the taxes on the repatriation of foreign profits, the fourth quarter result would have been a net loss from continuing operations of approximately $19.4 million, or $0.41 per share(1). For the fourth quarter of 2011, the operating loss was $11.0 million compared to $21.1 million in the fourth quarter of 2010, excluding the impact of the non-cash goodwill impairment charges in both years(1). (These are non-GAAP financial measures, and schedules for the GAAP to non-GAAP adjustment reconciliations in this press release are provided in the accompanying schedules). The operating improvement in the fourth quarter was attributed to better performance in the Upstream Oil & Gas segment in the United States and Canada and increased resource utilization in the Utility T&D segment. This improvement was partially offset by lower revenue and income in the Downstream Oil & Gas segment. Results for the Second and Third Quarters of 2011 Restated The results announced today are consistent with the selected preliminary estimated unaudited results from continuing operations for the fourth quarter and full year 2011 announced by the Company on April 2, 2012. During the preparation of the consolidated financial statements for the year ended December 31, 2011, the Company identified certain accounting errors in its unaudited condensed consolidated financial statements for the quarterly periods ended June 30 and September 30, 2011, which were included in the Company's Quarterly Reports on Form 10-Q for such periods, and as a result such financial statements should no longer be relied upon. The Company has included restated financial information for such periods in its Annual Report on Form 10-K for the year ended December 31, 2011, filed today. The Company identified errors in its accounting for the goodwill impairment charge recorded in the Utility T&D segment, which resulted in the understatement of pre-tax loss by approximately $9.2 million for the quarterly period ended September 30, 2011. Net loss was understated by approximately $21.0 million for the quarterly period ended September 30, 2011. These errors were attributed to the lack of recognition of a valuation allowance against the Company's deferred income taxes of approximately $16.8 million as well as the increased goodwill impairment charge of $4.7 million (net of tax). These errors were partially offset by an understatement of income tax benefit attributable to errors in the Company's calculation and accounting for income taxes. The Company further identified errors in the Company's calculation and accounting for income taxes which resulted in the overstatement of net loss by approximately $0.9 million for the quarterly period ended June 30, 2011. Such errors do not have any impact on the Company's liquidity and operating cash flow. In addition, these errors do not impact the Company's compliance with the Maximum Leverage Ratio or other financial covenants under the Company's Credit Agreement.