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.
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.
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.
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.
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.
