/ CORRECTION - Willbros Group, Inc.

Fri Feb 27, 2009 6:26pm EST

* Reuters is not responsible for the content in this press release.

  HOUSTON, TX, Feb 27 (MARKET WIRE) -- 
In the news release, "Willbros Announces Fourth Quarter and Full Year
2008 Results," issued Wednesday, February 25, 2009 by Willbros Group,
Inc. (NYSE: WG), we are advised by the company that in the last financial
table of the press release, the number in the first column across from
"Goodwill impairment charge" should read "0.95" rather than "0.99" as
originally issued. Complete corrected text follows.

    Willbros Announces Fourth Quarter and Full Year 2008 Results

    HOUSTON, TX--(February 25, 2009) - Willbros Group, Inc. (NYSE: WG)


                                              Continuing Operations
                                         Fourth Quarter     Twelve Months
                                        ----------------  -----------------
                                          2008     2007     2008     2007
                                        -------  -------- -------- -------
Net Income (loss)
   $ Thousands                          (14,500)    5,896   43,730 (27,550)
   $ Per Diluted Share                               0.16     1.11
   $ Per Basic Share                      (0.38)                     (0.94)

Special Items ($000)
   Goodwill Impairment                   38,062         -   38,062
   Government Fines                                                 22,000

Net Income (Loss) Excluding Special
 Items
   $ Thousands                           23,562     5,896   81,792  (5,550)
   $ Per Diluted Share                     0.57      0.16     1.98
   $ Per Basic Share                                                 (0.19)

    

--  Earnings from continuing operations for 2008 of $1.98 per diluted
    share excluding special items.
--  EBITDA(2) from continuing operations of $183.2 million for 2008.
--  Cash flow from operating activities of continuing operations of $187.0
    million for 2008.
    

    
Willbros Group, Inc. (NYSE: WG) today reported its results for the
fourth quarter and the full year 2008. On revenue of $1.9 billion,
Willbros reported net income for the full year 2008 was $46.5 million, or
$1.17 per diluted share compared to a loss of $49.0 million, or $1.67 per
share for the year ended December 31, 2007. The special item in 2008 is a
$62.3 million non-cash charge for goodwill impairment in our Downstream
Oil & Gas segment. This represents an after tax charge of $38.1 million,
or $0.87 per fully diluted share. This non-cash impairment charge is
primarily driven by adverse economic and financial market conditions.
While the charge reduces goodwill associated with the November 2007
acquisition of InServ, the Company noted that the impairment charge does
not reflect under-performance in its Downstream Oil & Gas segment.
Excluding special items, from continuing operations, the Company reported
revenue of $1.9 billion with earnings of $81.8 million, or $1.98 per
diluted share compared to revenue of $947.7 million and a loss of $5.6
million, or $0.19 per share for the year ended December 31, 2007.

    Randy Harl, President and Chief Executive Officer, commented, "2008 was
one of the most meaningful years for Willbros in our hundred year
history. We generated strong financial results and record cash flows from
operations, as we continued to reap the benefits of our efforts to
further position Willbros as a leader in the engineering and construction
industry. We made significant progress towards key strategic objectives
to expand and support our growth. We also made substantial progress
towards operational and financial improvements to our business model,
preparing us for the challenges of the current market environment
including:


--  Improving our strategic planning process to better align our resources
    with both current opportunities and long term growth objectives;

--  Redirecting our sales process to most efficiently target the right
    customers with the right opportunities;

--  Delivering lower costs through improved procurement processes and
    procedures;

--  Reinforcing our project execution skills, particularly as we begin to
    see a shift toward more fixed price contracts in our US pipeline
    construction business;

--  Lowering our effective tax rate; and

--  Receiving shareholder approval to re-domicile the Company from Panama
    to Delaware which, among other benefits, better positions us for US
    government contracts.
    

    
"Clearly we are in the midst of a significant economic dislocation.
We did not expect the pace of the recent energy infrastructure build-out
to continue indefinitely, but we did not anticipate such a steep and rapid
shift in the business environment. We now believe our customers will
increasingly pursue fixed price contracting structures and we are seeing
an increase in the number of bidders competing for these projects. While
this is a significant change from the environment of the last several
years, in reality, these market dynamics are a return to norms in many
respects. We are historically accustomed to operating in an environment
of competitive fixed price contracting with short time periods from
project bid to execution, and we are underway with an initiative to
reduce even more our overheads and direct costs in order to maintain our
competitive position. We are well prepared for this new environment."

    Fourth Quarter 2008 Continuing Operations

    The Company reported revenue from continuing operations of $462.7 million
in the fourth quarter of 2008 compared to $337.5 million in the fourth
quarter of 2007. The 37 percent increase in revenue was due primarily to
the high utilization of increased large diameter pipeline construction
capacity in the United States and from the addition of the Downstream Oil
& Gas services unit.

    For the 2008 fourth quarter, the Company reported a loss of $14.5 million,
or $0.38 per share. Excluding special items, the Company reported net
income of $23.6 million, or $0.57 per diluted share, compared to net
income of $5.9 million, or $0.16 per diluted share in the fourth quarter
of 2007.

    During the 2008 fourth quarter, the Company sold one of its fabrication
facilities and other related assets in Canada and received net proceeds of
$19.6 million which resulted in a pre-tax $7.7 million gain.

    2008 Full Year Continuing Operations

    The Company reported revenue from continuing operations of approximately
$1.9 billion for the full year 2008, twice the revenue of $947.7 million
in 2007, and net income, excluding special items, of $81.8 million or
$1.98 per diluted share compared to a loss of $5.6 million or $0.19 per
share in 2007. Revenue grew across all business segments: Upstream Oil &
Gas contributed revenue of $1.3 billion, up from $744.0 million last year;
Engineering contributed $232.6 million, up from $180.0 million in 2007;
and the Downstream Oil & Gas contributed revenue of $367.1 million
reflecting the first full year of reported results from our InServ
acquisition. G&A expenses were $120.0 million, 6.3% of revenue, during
2008, compared to $68.1 million, 7.2% of revenue, during 2007.

    2008 Discontinued Operations

    Discontinued operations reported net income of $2.8 million, or $0.06 per
diluted share for 2008 compared to a loss of $21.4 million or $0.73 per
share for 2007. During the fourth quarter of 2008, discontinued operations
reported a loss of $0.3 million. The loss was associated with the final
settlement of the equipment exchange and charges related to the Transition
Services Agreement which terminated on February 7, 2009.

    Backlog(1)

    At December 31, 2008, Willbros reported backlog(1) from continuing
operations of $655.5 million compared to $1.3 billion at December 31,
2007. The Company removed $176.0 million from 2008 backlog as a result of
the termination of portions of the Midcontinent Express Project with
Kinder Morgan. A fee associated with a cancelled portion of this project
is contractually due and remains in backlog. The December 31, 2008 backlog
does not include the $181 million in new awards announced separately today
as the awards occurred in the first quarter of 2009.

    Guidance

    Van Welch, Chief Financial Officer, provided revenue and earnings guidance
for 2009, "Our visibility for the second half of 2009 remains limited due
to the rapidly changing business environment. With that in mind, we expect
revenue for 2009 to be in a range of $1.2 - $1.5 billion, and earnings per
share to range from $1.10 - $1.50 per diluted share."

    CONFERENCE CALL

    In conjunction with the release, Willbros has scheduled a conference call,
which will be broadcast live over the Internet on Thursday, February 26,
2009 at 9:00 a.m. Eastern Time (8:00 a.m. Central).


     What:    Willbros Group, Inc. Fourth Quarter and Full Year 2008
              Earnings Conference Call

     When:    Thursday, February 26, 2009 - 9:00 a.m. Eastern Time

     Where:   Live via phone by dialing 877-795-3604 or 719-325-4797,
              passcode 8080649, and asking for the Willbros call at least
              10 minutes prior to the start time.

     Where:   Live over the Internet by logging onto www.willbros.com on
              the home page under Events.

    
A telephonic replay of the conference call will be available through
March 12, 2009 and may be accessed by calling 888-203-1112 or
719-457-0820 and using the passcode 8080649. Also, an archive of the
webcast will be available shortly after the call on www.willbros.com for
a period of 12 months.

    Willbros Group, Inc. is an independent contractor serving the oil, gas,
power, refining and petrochemical industries, providing engineering,
construction, turnaround, maintenance, life cycle extension services and
facilities development and operations services to industry and government
entities worldwide. For more information on Willbros, please visit our web
site at www.willbros.com.

    This announcement contains forward-looking statements. All statements,
other than statements of historical facts, which address activities,
events or developments the Company expects or anticipates will or may
occur in the future, are forward-looking statements. A number of risks and
uncertainties could cause actual results to differ materially from these
statements, including the potential for additional investigations; the
disruptions to the global credit markets; the current global recession;
the possible losses arising from the discontinuation of operations and
the sale of the Nigeria assets; fines and penalties by government
agencies; the identification of one or more other issues that require
restatement of one or more prior period financial statements; the
existence of material weaknesses in internal controls over financial
reporting; availability of quality management; availability and terms of
capital; changes in, or the failure to comply with, government
regulations; ability to remain in compliance with, or obtain waivers
under, the Company's loan agreements and indentures; the promulgation,
application, and interpretation of environmental laws and regulations;
future E&P capital expenditures; oil, gas, gas liquids, and power prices
and demand, the amount and location of planned pipelines, the refinery
crack spread and planned refinery outages and upgrades, the effective tax
rate of the different countries where the work is being conducted,
development trends of the oil, gas, power, refining and petrochemical
industries; changes in the political and economic environment of the
countries in which the Company has operations, as well as other risk
factors described from time to time in the Company's documents and
reports filed with the SEC. The Company assumes no obligation to update
publicly such forward-looking statements, whether as a result of new
information, future events or otherwise.

    TABLE TO FOLLOW


                           WILLBROS GROUP, INC.
                 (In Thousands, Except Per Share Amounts)

                              Three Months Ended         Year Ended
                                 December 31,            December 31,
                            ----------  ----------  ----------  ----------

                               2008        2007        2008        2007
                            ----------  ----------  ----------  ----------
Statement of Operations
 Data
  Contract revenue
    Upstream O&G            $  330,234  $  262,204  $1,313,070  $  744,308
    Downstream O&G              88,080      23,821     367,075      23,821
    Engineering                 44,388      51,498     232,559     179,562
                            ----------  ----------  ----------  ----------
                               462,702     337,523   1,912,704     947,691
  Operating expenses
    Upstream O&G               306,121     246,633   1,231,165     722,433
    Downstream O&G             145,931      23,151     406,154      23,151
    Engineering                 42,069      52,691     207,249     171,199
                            ----------  ----------  ----------  ----------
                               494,121     322,475   1,844,568     916,783
  Operating income (loss)
    Upstream O&G                24,113      15,571      81,905      21,875
    Downstream O&G             (57,851)        670     (39,079)        670
    Engineering                  2,319      (1,193)     25,310       8,363
    Government fines and
     penalties                       -           -           -     (22,000)
                            ----------  ----------  ----------  ----------
  Operating income (loss)      (31,419)     15,048      68,136       8,908

  Other income (expense):
    Interest - net              (1,268)       (984)     (6,347)     (3,103)
    Other - net                  7,679      (1,458)      7,883      (3,477)
    Loss on early
     extinguishment of debt          -           -           -     (15,375)
                            ----------  ----------  ----------  ----------
                                 6,411      (2,442)      1,536     (21,955)
                            ----------  ----------  ----------  ----------
  Income (loss) before
   income taxes                (25,008)     12,606      69,672     (13,047)
  Provision (benefit) for
   income taxes                (10,508)      6,710      25,942      14,503
                            ----------  ----------  ----------  ----------
  Income (loss) from
   continuing operations       (14,500)      5,896      43,730     (27,550)

  Income (loss) from
   discontinued operations        (285)         80       2,757     (21,414)
                            ----------  ----------  ----------  ----------
  Net income (loss)         $  (14,785) $    5,976  $   46,487  $  (48,964)
                            ==========  ==========  ==========  ==========
  Basic income (loss) per
   share
    Continuing operations   $    (0.38) $     0.17  $     1.14  $    (0.94)
    Discontinued operations      (0.01)          -        0.07       (0.73)
                            ----------  ----------  ----------  ----------
                            $    (0.39) $     0.17  $     1.21  $    (1.67)
                            ==========  ==========  ==========  ==========
  Diluted income (loss) per
   share
    Continuing operations   $    (0.38) $     0.16  $     1.11  $    (0.94)
    Discontinued operations      (0.01)          -        0.06       (0.73)
                            ----------  ----------  ----------  ----------
                            $    (0.39) $     0.16  $     1.17  $    (1.67)
                            ==========  ==========  ==========  ==========

Cash Flow Data
Continuing operations:
  Cash provided by (used
   in):
    Operating activities    $   90,465  $    3,166  $  186,959  $  (19,463)
    Investing activities        12,218    (217,553)    (11,725)   (150,601)
    Financing activities       (17,543)    249,804     (58,460)    221,359
    Foreign exchange
     effects                    (4,502)         89      (5,001)      2,297
Discontinued operations           (326)     (1,329)      3,205       1,651

Other Data (Continuing
 Operations)
  Weighted average shares
   outstanding:
    Basic                       38,367      34,768      38,269      29,259
    Diluted                     38,367      40,646      43,736      29,259
  EBITDA (2)                $   49,470  $   21,042  $  183,217  $   10,731
  Capital expenditures          (7,063)    (28,878)    (53,048)    (74,548)

Reconciliation of Non-GAAP
 Financial Measures
  EBITDA (2)
    Net income (loss),
     continuing
     operations             $  (14,500) $    5,896  $   43,730  $  (27,550)
    Interest - net               1,268         984       6,347       3,103
    Income taxes               (10,508)      6,710      25,942      14,503
    Depreciation and
     amortization               10,915       7,452      44,903      20,675
    Goodwill Impairment         62,295           -      62,295           -
                            ----------  ----------  ----------  ----------
    EBITDA (2)              $   49,470  $   21,042  $  183,217  $   10,731
                            ==========  ==========  ==========  ==========

  Net income (loss) before
   special items (3)
    Net income (loss),
     continuing
     operations             $  (14,500) $    5,896  $   43,730  $  (27,550)
    Goodwill impairment
     charge                     38,062           -      38,062           -
    Government fines and
     penalties                       -           -           -      22,000
                            ----------  ----------  ----------  ----------
    Income (loss) before
     special items          $   23,562  $    5,896  $   81,792  $   (5,550)
                            ==========  ==========  ==========  ==========

  Diluted income (loss) per
   share before special
   items
    Continuing operations   $    (0.38) $     0.16  $     1.11  $    (0.94)
    Goodwill impairment
     charge                       0.95           -        0.87           -
    Government fines and
     penalties                       -           -           -        0.75
                            ----------  ----------  ----------  ----------
    Income (loss) per
     share before special
     items                  $     0.57  $     0.16  $     1.98  $    (0.19)
                            ==========  ==========  ==========  ==========

Balance Sheet Data          12/31/2008   9/30/2008   6/30/2008  12/31/2007
                            ----------  ----------  ----------  ----------
  Cash and cash
   equivalents              $  207,864  $  127,552  $  119,209  $   92,886
  Working capital              284,136     263,055     237,960     201,348
  Total assets                 788,245     871,022     842,447     779,413
  Total debt                   127,371     145,245     159,700     152,346
  Stockholders' equity         439,655     466,405     447,057     396,101

Backlog Data (1)
  By Reporting Segment:
    Upstream O&G            $  439,019                          $  941,301
    Downstream O&G             171,426                             199,646
    Engineering                 45,049                             164,494
                            ----------                          ----------

                            $  655,494                          $1,305,441
                            ==========                          ==========
  By Geographic Area:
    North America              621,313                           1,229,878
    Middle East                 34,181                              75,563
                            ----------                          ----------
                            $  655,494                          $1,305,441
                            ==========                          ==========

(1)  Backlog is anticipated contract revenue from projects for which award
     is either in hand or assured.
(2)  EBITDA is earnings before net interest, income taxes and depreciation
     and amortization and intangible asset impairments. EBITDA as
     presented may not be comparable to other similarly titled measures
     reported by other companies. The Company believes EBITDA is a useful
     measure of evaluating its financial performance because of its focus
     on the Company's results from operations before net interest, income
     taxes, depreciation and amortization. EBITDA is not a measure of
     financial performance under generally accepted accounting principles.
     However, EBITDA is a common alternative measure of operating
     performance used by investors, financial analysts and rating
     agencies. A reconciliation of EBITDA to net income is included in the
     exhibit to this release.
(3)  Loss before special items (and the related amounts per share), a
     non-GAAP financial measure, excludes special items that management
     believes affect the comparison of results for the periods presented.
     Management also believes results excluding these items are more
     comparable to estimates provided by securities analysts and
     therefore are useful in evaluating operational trends of the
     company and its performance relative to other engineering and
     construction companies.

    


CONTACT:

Michael W. Collier
Vice President Investor Relations
Sales & Marketing
Willbros
713-403-8038

Connie Dever
Director Strategic Planning
Willbros
713-403-8035

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