Exhibit 99.1
Beginning with the first quarter of 2019, Aegion Corporation (“Aegion”) will report corporate expenses separately rather than allocating those expenses to Aegion’s operating segments. Set forth below is a presentation of certain components of Aegion’s previously-reported operating results for the quarters and year-to-date reporting periods in 2018, conformed to reflect this alternative reporting method.
Segment Reporting
(in thousands)
| Quarter Ended March 31, 2018 | ||||||||||
| As |
| Adjustments |
| As | ||||||
Revenues: |
|
|
|
|
| ||||||
Infrastructure Solutions | $ | 134,427 |
| $ | — |
| $ | 134,427 | |||
Corrosion Protection | 98,105 |
| — |
| 98,105 | ||||||
Energy Services | 92,329 |
| — |
| 92,329 | ||||||
Total Revenues | $ | 324,861 |
| $ | — |
| $ | 324,861 | |||
|
|
|
|
|
| ||||||
Gross Profit: |
|
|
|
|
| ||||||
Infrastructure Solutions | $ | 26,709 |
| $ | — |
| $ | 26,709 | |||
Gross Profit Margin | 19.9 | % |
|
|
| 19.9 | % | ||||
Corrosion Protection | 23,576 |
| — |
| 23,576 | ||||||
Gross Profit Margin | 24.0 | % |
|
|
| 24.0 | % | ||||
Energy Services | 11,219 |
| — |
| 11,219 | ||||||
Gross Profit Margin | 12.2 | % |
|
|
| 12.2 | % | ||||
Total Gross Profit | $ | 61,504 |
| $ | — |
| $ | 61,504 | |||
Gross Profit Margin | 18.9 | % |
|
|
| 18.9 | % | ||||
|
|
|
|
|
| ||||||
Operating Income (Loss): |
|
|
|
|
| ||||||
Infrastructure Solutions | $ | 3,237 |
| $ | 3,239 |
| $ | 6,476 | |||
Operating Margin | 2.4 | % |
|
|
| 4.8 | % | ||||
Corrosion Protection | 4,962 |
| 1,497 |
| 6,459 | ||||||
Operating Margin | 5.1 | % |
|
|
| 6.6 | % | ||||
Energy Services | 3,127 |
| — |
| 3,127 | ||||||
Operating Margin | 3.4 | % |
|
|
| 3.4 | % | ||||
Corporate | (8,145 | ) |
| 900 |
| (7,245 | ) | ||||
Total Operating Income | $ | 3,181 |
| $ | 5,636 |
| $ | 8,817 | |||
Operating Margin | 1.0 | % |
|
|
| 2.7 | % |
_________________________________
(1) Includes non-GAAP adjustments related to:
Infrastructure Solutions - (i) pre-tax restructuring charges associated with severance and benefit related costs, early lease and contract termination costs and other restructuring charges; and (ii) acquisition and divestiture expenses.
Corrosion Protection - (i) pre-tax restructuring charges associated with severance and benefit related costs, early lease and contract termination costs and other restructuring charges; and (ii) expenses incurred in connection with the acquisition of Hebna and divestiture of the Bayou business.
Corporate - (i) pre-tax restructuring charges primarily associated with severance and benefit related costs and legal expenses; and (ii) acquisition and divestiture expenses.
Segment Reporting
(in thousands)
| Quarter Ended June 30, 2018 |
| Six Months Ended June 30, 2018 | ||||||||||||||||||||
| As |
| Adjustments |
| As |
| As |
| Adjustments |
| As | ||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Infrastructure Solutions | $ | 160,732 |
| $ | — |
| $ | 160,732 |
| $ | 295,159 |
| $ | — |
| $ | 295,159 | ||||||
Corrosion Protection | 96,389 |
| — |
| 96,389 |
| 194,494 |
| — |
| 194,494 | ||||||||||||
Energy Services | 77,909 |
| — |
| 77,909 |
| 170,238 |
| — |
| 170,238 | ||||||||||||
Total Revenues | $ | 335,030 |
| $ | — |
| $ | 335,030 |
| $ | 659,891 |
| $ | — |
| $ | 659,891 | ||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Infrastructure Solutions | $ | 35,949 |
| $ | — |
| $ | 35,949 |
| $ | 62,658 |
| $ | — |
| $ | 62,658 | ||||||
Gross Profit Margin | 22.4 | % |
|
|
| 22.4 | % |
| 21.2 | % |
|
|
| 21.2 | % | ||||||||
Corrosion Protection | 24,537 |
| — |
| 24,537 |
| 48,113 |
| — |
| 48,113 | ||||||||||||
Gross Profit Margin | 25.5 | % |
|
|
| 25.5 | % |
| 24.7 | % |
|
|
| 24.7 | % | ||||||||
Energy Services | 10,567 |
| — |
| 10,567 |
| 21,786 |
| — |
| 21,786 | ||||||||||||
Gross Profit Margin | 13.6 | % |
|
|
| 13.6 | % |
| 12.8 | % |
|
|
| 12.8 | % | ||||||||
Total Gross Profit | $ | 71,053 |
| $ | — |
| $ | 71,053 |
| $ | 132,557 |
| $ | — |
| $ | 132,557 | ||||||
Gross Profit Margin | 21.2 | % |
|
|
| 21.2 | % |
| 20.1 | % |
|
|
| 20.1 | % | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Operating Income (Loss): |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Infrastructure Solutions | $ | 12,916 |
| $ | 2,747 |
| $ | 15,663 |
| $ | 16,153 |
| $ | 5,986 |
| $ | 22,139 | ||||||
Operating Margin | 8.0 | % |
|
|
| 9.7 | % |
| 5.5 | % |
|
|
| 7.5 | % | ||||||||
Corrosion Protection | 6,953 |
| 469 |
| 7,422 |
| 11,915 |
| 1,966 |
| 13,881 | ||||||||||||
Operating Margin | 7.2 | % |
|
|
| 7.7 | % |
| 6.1 | % |
|
|
| 7.1 | % | ||||||||
Energy Services | 2,498 |
| — |
| 2,498 |
| 5,625 |
| — |
| 5,625 | ||||||||||||
Operating Margin | 3.2 | % |
|
|
| 3.2 | % |
| 3.3 | % |
|
|
| 3.3 | % | ||||||||
Corporate | (7,908 | ) |
| 529 |
| (7,379 | ) |
| (16,053 | ) |
| 1,429 |
| (14,624 | ) | ||||||||
Total Operating Income | $ | 14,459 |
| $ | 3,745 |
| $ | 18,204 |
| $ | 17,640 |
| $ | 9,381 |
| $ | 27,021 | ||||||
Operating Margin | 4.3 | % |
|
|
| 5.4 | % |
| 2.7 | % |
|
|
| 4.1 | % |
_________________________________
(1) Includes non-GAAP adjustments related to:
Infrastructure Solutions - (i) pre-tax restructuring charges associated with severance and benefit related costs, early lease and contract termination costs, fixed asset disposals and other restructuring charges; and (ii) expenses incurred in connection with the planned divestiture of the CIPP business in Australia.
Corrosion Protection - (i) pre-tax restructuring charges associated with severance and benefit related costs, early lease and contract termination costs and other restructuring charges; and (ii) expenses incurred in connection with the acquisition of Hebna and divestiture of the Bayou business.
Corporate - (i) pre-tax restructuring charges primarily associated with legal expenses; and (ii) acquisition and divestiture expenses.
(2) Includes non-GAAP adjustments related to:
Infrastructure Solutions - (i) pre-tax restructuring charges associated with severance and benefit related costs, early lease and contract termination costs, fixed asset disposals and other restructuring charges; and (ii) expenses incurred in connection with the planned divestiture of the CIPP business in Australia.
Corrosion Protection - (i) pre-tax restructuring charges associated with severance and benefit related costs, early lease and contract termination costs and other restructuring charges; and (ii) expenses incurred in connection with the acquisition of Hebna and divestiture of the Bayou business.
Corporate - (i) pre-tax restructuring charges primarily associated with severance and benefit related costs and legal expenses; and (ii) acquisition and divestiture expenses.
Segment Reporting
(in thousands)
| Quarter Ended September 30, 2018 |
| Nine Months Ended September 30, 2018 | ||||||||||||||||||||
| As |
| Adjustments |
| As |
| As |
| Adjustments |
| As | ||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Infrastructure Solutions | $ | 155,681 |
| $ | — |
| $ | 155,681 |
| $ | 450,840 |
| $ | — |
| $ | 450,840 | ||||||
Corrosion Protection | 105,624 |
| — |
| 105,624 |
| 300,118 |
| — |
| 300,118 | ||||||||||||
Energy Services | 78,374 |
| — |
| 78,374 |
| 248,612 |
| — |
| 248,612 | ||||||||||||
Total Revenues | $ | 339,679 |
| $ | — |
| $ | 339,679 |
| $ | 999,570 |
| $ | — |
| $ | 999,570 | ||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Infrastructure Solutions | $ | 38,135 |
| $ | 138 |
| $ | 38,273 |
| $ | 100,793 |
| $ | 138 | $ | 100,931 | |||||||
Gross Profit Margin | 24.5 | % |
|
|
| 24.6 | % |
| 22.4 | % |
|
|
| 22.4 | % | ||||||||
Corrosion Protection | 26,411 |
| 567 |
| 26,978 |
| 74,524 |
| 567 |
| 75,091 | ||||||||||||
Gross Profit Margin | 25.0 | % |
|
|
| 25.5 | % |
| 24.8 | % |
|
|
| 25.0 | % | ||||||||
Energy Services | 8,127 |
| — |
| 8,127 |
| 29,913 |
| — |
| 29,913 | ||||||||||||
Gross Profit Margin | 10.4 | % |
|
|
| 10.4 | % |
| 12.0 | % |
|
|
| 12.0 | % | ||||||||
Total Gross Profit | $ | 72,673 |
| $ | 705 |
| $ | 73,378 |
| $ | 205,230 |
| $ | 705 |
| $ | 205,935 | ||||||
Gross Profit Margin | 21.4 | % |
|
|
| 21.6 | % |
| 20.5 | % |
|
|
| 20.6 | % | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Operating Income (Loss): |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Infrastructure Solutions | $ | 13,088 |
| $ | 6,039 |
| $ | 19,127 |
| $ | 29,241 |
| $ | 12,025 |
| $ | 41,266 | ||||||
Operating Margin | 8.4 | % |
|
|
| 12.3 | % |
| 6.5 | % |
|
|
| 9.2 | % | ||||||||
Corrosion Protection | 8,299 |
| 2,634 |
| 10,933 |
| 20,214 |
| 4,600 |
| 24,814 | ||||||||||||
Operating Margin | 7.9 | % |
|
|
| 10.4 | % |
| 6.7 | % |
|
|
| 8.3 | % | ||||||||
Energy Services | 456 |
| — |
| 456 |
| 6,081 |
| — |
| 6,081 | ||||||||||||
Operating Margin | 0.6 | % |
|
|
| 0.6 | % |
| 2.4 | % |
|
|
| 2.4 | % | ||||||||
Corporate | (8,834 | ) |
| 3,328 |
| (5,506 | ) |
| (24,887 | ) |
| 4,757 |
| (20,130 | ) | ||||||||
Total Operating Income | $ | 13,009 |
| $ | 12,001 |
| $ | 25,010 |
| $ | 30,649 |
| $ | 21,382 |
| $ | 52,031 | ||||||
Operating Margin | 3.8 | % |
|
|
| 7.4 | % |
| 3.1 | % |
|
|
| 5.2 | % |
_________________________________
(1) Includes non-GAAP adjustments related to:
Infrastructure Solutions - (i) pre-tax restructuring charges associated with severance and benefit related costs, early lease and contract termination costs, fixed asset disposals, goodwill and definite-lived intangible asset impairments and other restructuring charges; and (ii) expenses incurred in connection with the planned divestitures of the CIPP businesses in Australia and Denmark.
Corrosion Protection - (i) pre-tax restructuring charges associated with severance and benefit related costs, early lease and contract termination costs, inventory obsolescence and other restructuring charges; and (ii) expenses incurred in connection with the acquisition of Hebna and divestiture of the Bayou business.
Corporate - (i) pre-tax restructuring charges primarily associated with legal expenses; and (ii) acquisition and divestiture expenses.
(2) Includes non-GAAP adjustments related to:
Infrastructure Solutions - (i) pre-tax restructuring charges associated with severance and benefit related costs, early lease and contract termination costs, fixed asset disposals, goodwill and definite-lived intangible asset impairments and other restructuring charges; and (ii) expenses incurred in connection with the planned divestitures of the CIPP businesses in Australia and Denmark.
Corrosion Protection - (i) pre-tax restructuring charges associated with severance and benefit related costs, early lease and contract termination costs, inventory obsolescence and other restructuring charges; and (ii) expenses incurred in connection with the acquisition of Hebna and divestiture of the Bayou business.
Corporate - (i) pre-tax restructuring charges primarily associated with severance and benefit related costs and legal expenses; and (ii) acquisition and divestiture expenses.
Segment Reporting
(in thousands)
| Quarter Ended December 31, 2018 |
| Year Ended December 31, 2018 | ||||||||||||||||||||
| As |
| Adjustments |
| As |
| As |
| Adjustments |
| As | ||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Infrastructure Solutions | $ | 153,281 |
| $ | — |
| $ | 153,281 |
| $ | 604,121 |
| $ | — |
| $ | 604,121 | ||||||
Corrosion Protection | 93,622 |
| — |
| 93,622 |
| 393,740 |
| — |
| 393,740 | ||||||||||||
Energy Services | 87,095 |
| — |
| 87,095 |
| 335,707 |
| — |
| 335,707 | ||||||||||||
Total Revenues | $ | 333,998 |
| $ | — |
| $ | 333,998 |
| $ | 1,333,568 |
| $ | — |
| $ | 1,333,568 | ||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Infrastructure Solutions | $ | 31,618 |
| $ | 1,143 |
| $ | 32,761 |
| $ | 132,411 |
| $ | 1,281 |
| $ | 133,692 | ||||||
Gross Profit Margin | 20.6 | % |
|
|
| 21.4 | % |
| 21.9 | % |
|
|
| 22.1 | % | ||||||||
Corrosion Protection | 18,444 |
| 2,822 |
| 21,266 |
| 92,968 |
| 3,389 |
| 96,357 | ||||||||||||
Gross Profit Margin | 19.7 | % |
|
|
| 22.7 | % |
| 23.6 | % |
|
|
| 24.5 | % | ||||||||
Energy Services | 11,634 |
| — |
| 11,634 |
| 41,547 |
| — |
| 41,547 | ||||||||||||
Gross Profit Margin | 13.4 | % |
|
|
| 13.4 | % |
| 12.4 | % |
|
|
| 12.4 | % | ||||||||
Total Gross Profit | $ | 61,696 |
| $ | 3,965 |
| $ | 65,661 |
| $ | 266,926 |
| $ | 4,670 |
| $ | 271,596 | ||||||
Gross Profit Margin | 18.5 | % |
|
|
| 19.7 | % |
| 20.0 | % |
|
|
| 20.4 | % | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Operating Income (Loss): |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Infrastructure Solutions | $ | 8,268 |
| $ | 4,459 |
| $ | 12,727 |
| $ | 37,509 |
| $ | 16,484 |
| $ | 53,993 | ||||||
Operating Margin | 5.4 | % |
|
|
| 8.3 | % |
| 6.2 | % | �� |
|
| 8.9 | % | ||||||||
Corrosion Protection | (3,931 | ) |
| 8,222 |
| 4,291 |
| 16,283 |
| 12,822 |
| 29,105 | |||||||||||
Operating Margin | (4.2 | )% |
|
|
| 4.6 | % |
| 4.1 | % |
|
|
| 7.4 | % | ||||||||
Energy Services | 3,557 |
| 262 |
| 3,819 |
| 9,638 |
| 262 |
| 9,900 | ||||||||||||
Operating Margin | 4.1 | % |
|
|
| 4.4 | % |
| 2.9 | % |
|
|
| 2.9 | % | ||||||||
Corporate | (8,896 | ) |
| 984 |
| (7,912 | ) |
| (33,783 | ) |
| 5,741 |
| (28,042 | ) | ||||||||
Total Operating Income (Loss) | $ | (1,002 | ) |
| $ | 13,927 |
| $ | 12,925 |
| $ | 29,647 |
| $ | 35,309 |
| $ | 64,956 | |||||
Operating Margin | (0.3 | )% |
|
|
| 3.9 | % |
| 2.2 | % |
|
|
| 4.9 | % |
_________________________________
(1) Includes non-GAAP adjustments related to:
Infrastructure Solutions - (i) pre-tax restructuring charges associated with severance and benefit related costs, early lease and contract termination costs, fixed asset disposals and other restructuring charges; and (ii) expenses incurred in connection with the divestiture of the CIPP business in Denmark and the planned divestiture of the CIPP business in Australia.
Corrosion Protection - (i) pre-tax restructuring charges associated with severance and benefit related costs, early lease and contract termination costs, inventory write-offs, definite-lived intangible asset impairments and other restructuring charges; (ii) non-cash charges related to estimates for inventory obsolescence; and (iii) expenses incurred in connection with the divestiture of the Bayou business.
Energy Services - pre-tax restructuring charges associated with severance and benefit related costs and other restructuring charges.
Corporate - (i) pre-tax restructuring charges primarily associated with legal expenses; and (ii) acquisition and divestiture expenses.
(2) Includes non-GAAP adjustments related to:
Infrastructure Solutions - (i) pre-tax restructuring charges associated with severance and benefit related costs, early lease and contract termination costs, fixed asset disposals, goodwill and definite-lived intangible asset impairments and other restructuring charges; and (ii) expenses incurred in connection with the divestiture of the CIPP business in Denmark and the planned divestiture of the CIPP business in Australia.
Corrosion Protection - (i) pre-tax restructuring charges associated with severance and benefit related costs, early lease and contract termination costs, inventory write-offs, definite-lived intangible asset impairments and other restructuring charges; (ii) non-cash charges related to estimates for inventory obsolescence; and (iii) expenses incurred in connection with the acquisition of Hebna and divestiture of the Bayou business.
Energy Services - pre-tax restructuring charges associated with severance and benefit related costs and other restructuring charges.
Corporate - (i) pre-tax restructuring charges primarily associated with severance and benefit related costs and legal expenses; and (ii) acquisition and divestiture expenses.