 Q220 results exceeded expectations; Solid market position and portfolio strength to successfully navigate near-term challenges ST. LOUIS, July 29, 2020 GLOBE NEWSWIRE -- A PDF accompanying this release is available at: Q220 earnings per diluted share were 0.12 compared to a loss per diluted share of 0.27 in Q219. Q220 adjusted non-GAAP1 earnings per diluted share were 0.25 compared to 0.37 in the prior year. Revenues in the quarter were 245 million. Despite year-over-year COVID-related disruptions and revenue declines across much of the business, the flagship Insituform North America business successfully grew revenues, new orders and backlog, underpinned by our leading position combined with the strength and stability of the North American municipal water and wastewater markets. Contract backlog as of June 30, 2020, was 669 million. Excluding exited or to-be-exited businesses, backlog increased 4 over the prior year, driven by increases across all segments and providing confidence in future earnings and cash flow stability. Year-to-date operating cash flows as of June 30, 2020, were 60 million, an increase of more than four times the prior-year level, which enabled more than 40 million in debt reduction in Q220 and drove a global ending cash balance of 96 million. The Company is targeting Q320 adjusted EPS of 0.25 to 0.35.1Adjusted non-GAAP results exclude certain charges related to the Companys restructuring activities, acquisition and divestiture-related expenses, goodwill and indefinite-lived intangible asset impairment, impairment of assets held for sale, project warranty accruals, credit facility amendment fees and impacts from the Tax Cuts and Jobs Act. Reconciliation of adjusted results is included below.Q220 HIGHLIGHTS Exceptional Infrastructure Solutions performance and strong cost and cash management across the business drove results higher than expectations and enabled an accelerated repayment of 2.5 million of temporary wage reductions to a portion of the North American workforce. Infrastructure Solutions strength helped offset a sharp decline in volumes and profitability at Energy Services as a result of COVID-related disruptions. Despite top-line disruptions across much of the business, the Company delivered a 50 basis point increase in adjusted gross margins and held adjusted operating margins flat compared to the prior year.Our ability to exceed performance expectations in the quarter amid unprecedented market disruption is a testament to the success of our efforts in reshaping Aegion to deliver improved earnings stability and cash flow generation in all market cycles. Our scale, unmatched North American market reach and focus on maintaining and rehabilitating critical infrastructure continue to be key differentiating factors in navigating COVID disruptions.While the near-term outlook remains choppy, primarily in our Energy Services business, our long-term fundamentals are sound, underpinned by significant exposure to the more stable and resilient North American municipal water and wastewater markets, where weve seen double-digit growth year to date. Our balance sheet is in great shape and we are well positioned to emerge stronger from this period of uncertainty.Charles R. Gordon, President and Chief Executive Officer Selected Consolidated Financial Highlights Quarter Ended June 30, 2020 Quarter Ended June 30, 2019 in thousands, except earnings per shareAs Reported GAAPAdjustments 1As Adjusted Non-GAAP As Reported GAAPAdjustments 2As Adjusted Non-GAAP Revenues 245,017 245,017 318,740 318,740 Cost of revenues 191,442 79 191,521 251,303 396 250,907 Gross profit 53,575 79 53,496 67,437 396 67,833 Operating expenses 41,970 2,966 39,004 51,254 2,228 49,026 Goodwill impairment 1,258 1,258 Definite-lived intangible asset impairment 957 957 Impairment gain of assets held for sale 658 658 11,946 11,946 Acquisition and divestiture expenses 657 657 804 804 Restructuring and related charges 664 664 2,974 2,974 Operating income 8,727 5,765 14,492 459 18,348 18,807 Other income expense 3,511 508 4,019 4,320 941 3,379 Income loss before taxes on income 5,216 5,257 10,473 3,861 19,289 15,428 Taxes on income loss 1,220 1,219 2,439 4,286 747 3,539 Net Income loss attributable to Aegion Corporation 3,856 3,988 7,844 8,366 20,036 11,670 Diluted earnings loss per share 0.12 0.13 0.25 0.27 0.64 0.37 Net income loss and diluted earnings loss per share includes non-controlling interest1 Q220 non-GAAP pre-tax adjustments: Restructuring: Gains for cost of revenues of 79 primarily related to recoveries of inventory write offs; charges for operating expenses of 2,966 primarily related to wind-down costs, reserves for potentially uncollectible receivables, fixed asset disposals and other restructuring-related charges; goodwill and definite-lived intangible asset impairment charges of 1,258 and 957, respectively, related to restructured operations; charges of 664 related to employee severance, extension of benefits, employment assistance programs and contract termination costs; and income for other incomeexpense of 933 related to net gains on disposal of certain restructured operations and the release of cumulative currency translation adjustments. Acquisition and Divestiture Expenses: Expenses of 657 incurred primarily in connection with the Companys divestitures of Australia and Spain and its planned divestiture of its held for sale operations; gains of 658 related to recoveries of previously reserved customer receivables in our held for sale operations; and a working capital adjustment of 244 for the divestiture of Spain. Credit Facility Fees: Expenses of 669 related to certain out-of-pocket expenses and acceleration of certain unamortized fees associated with amending the Companys credit facility.2 Q219 non-GAAP pre-tax adjustments: Restructuring: Charges for cost of revenues of 396 primarily related to inventory write offs; charges for operating expenses of 2,205 primarily related to wind-down expenses, reserves for potentially uncollectible receivables, fixed asset disposals and other restructuring-related charges; charges of 2,974 related to employee severance, extension of benefits, employment assistance programs and contract termination costs; charges for other expense of 941 related to net losses on disposal of certain restructured operations and the release of cumulative currency translation adjustments; and charges for foreign withholding taxes of 2,073 on the repatriation of foreign earnings. Acquisition and Divestiture Expenses: Charges of 11,946 related to the impairment of held for sale operations CIPP operations in Australia and the Netherlands, Corrpower and United Mexico; and expenses of 804 incurred primarily in connection with the Companys planned divestiture of its held for sale operations. Tax Cuts and Jobs Act: Expenses of 23 related to professional fees resulting from the Tax Cuts and Jobs Act. Selected Segment Financial Highlights Quarter Ended June 30, 2020 Quarter Ended June 30, 2019 in thousandsAs Reported GAAPAdjustments 1As Adjusted Non-GAAP As Reported GAAPAdjustments 2As Adjusted Non-GAAP Revenues: Infrastructure Solutions 137,392 137,392 155,439 155,439 Corrosion Protection 55,491 55,491 77,597 77,597 Energy Services 52,134 52,134 85,704 85,704 Total Revenues 245,017 245,017 318,740 318,740 Gross Profit: Infrastructure Solutions 35,667 52 35,719 38,871 67 38,804 Gross Profit Margin 26.0 26.0 25.0 25.0 Corrosion Protection 14,111 131 13,980 16,692 463 17,155 Gross Profit Margin 25.4 25.2 21.5 22.1 Energy Services 3,797 3,797 11,874 11,874 Gross Profit Margin 7.3 7.3 13.9 13.9 Total Gross Profit 53,575 79 53,496 67,437 396 67,833 Gross Profit Margin 21.9 21.8 21.2 21.3 Operating Income Loss: Infrastructure Solutions 21,004 585 20,419 9,120 10,791 19,911 Operating Margin 15.3 14.9 5.9 12.8 Corrosion Protection 699 1,344 2,043 3,863 6,272 2,409 Operating Margin 1.3 3.7 5.0 3.1 Energy Services 5,713 3,454 2,259 4,107 6 4,113 Operating Margin 11.0 4.3 4.8 4.8 Corporate 7,263 1,552 5,711 8,905 1,279 7,626 Operating Margin 3.0 2.3 2.8 2.4 Total Operating Income 8,727 5,765 14,492 459 18,348 18,807 Operating Margin 3.6 5.9 0.1 5.9 ___1 Includes non-GAAP adjustments related to: Infrastructure Solutions - i pre-tax restructuring charges associated with severance and benefit related costs, contract termination costs, wind-down costs, fixed assets disposals and other restructuring charges; and ii expenses incurred in connection with the divestitures of Australia and Spain. 