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Aegion Corporation Announces Several Actions to Enhance Future Growth
St. Louis, MO – January 4, 2016 – Aegion Corporation (Nasdaq Global Select Market: AEGN) today announced several actions to deliver sustainable growth and address the market realities in the North American energy markets.
Charles R. Gordon, Aegion’s President and Chief Executive Officer, said, “In today’s challenging business environment, we are continually evaluating our exposure to the end markets we serve. To that end, we announced an investment in our capabilities to rehabilitate pressure pipelines for water and wastewater applications by acquiring Underground Solutions, Inc., an established provider of a patented fusible PVC technology, and to improve Fyfe’s global reach by acquiring the remaining international rights from Fyfe Group, LLC. In addition, we are divesting our equity stake in Corrosion Protection’s Canadian pipe coating joint venture, downsizing Energy Services’ operations in Central California’s upstream market and implementing a plan to reduce annual operating expenses across Aegion.”
Aegion’s Infrastructure Solutions platform adds to its capabilities
Aegion has executed a definitive agreement to acquire Underground Solutions, Inc. for $85 million in cash and expects to close the transaction during the first quarter of 2016. The Company will separately pay for the discounted value of tax benefits (estimated today to be approximately $5 million) associated with Underground Solutions’ net operating loss carry forwards at closing. Aegion will fund a substantial portion of the purchase price with existing cash and the remainder from borrowings against the Company’s line of credit. Aegion expects the transaction to be accretive to 2016 GAAP earnings per share with revenues of approximately $50 million and operating margins in excess of 10 percent. Several key members of Underground Solutions’ senior management, who average more than 20 years of industry experience, will join Aegion to form an expanded team dedicated to trenchless rehabilitation of existing pressure pipelines.
Underground Solutions’ patented fusible polyvinyl chloride (“PVC”) products focus on the rehabilitation of pressure pipelines, primarily in North America. Underground Solutions uniquely complements Infrastructure Solutions’ existing pressure pipe rehabilitation technologies InsituMain®, InsituGuard® and Tyfo®/Fibrwrap® and increases Aegion’s presence in the pressure pipe market to nearly $90 million in annual revenues.
“We are pleased to have Underground Solutions join Aegion,” Mr. Gordon commented. “Our market research suggests assembling a portfolio of technologies is the right strategy to establish a leading position in the North American pressure pipe rehabilitation market. We believe the combination of Underground Solutions’ patented PVC technologies with our Insituform® and Tyfo®/Fibrwrap® technologies will allow us to strengthen our position in this attractive market by offering our customers a broader portfolio of solutions.”
Aegion’s 2016 outlook
“As we look to 2016, Infrastructure Solutions remains focused on maintaining its leadership position by taking advantage of continuing favorable market conditions in North America,” stated Mr. Gordon. “In addition, the acquisition of Underground Solutions is an important step to advance our stated strategic objective to expand our presence in the growing pressure pipe rehabilitation market in North America.
“In contrast, we expect 2016 will be a more difficult year for the North American energy markets, particularly related to upstream capital spending as customers continue to decrease investments in response to persistent low oil prices. Based on the decision to reduce our exposure in the upstream markets, we expect Energy Services’ revenues to decline by approximately $70 million from 2015 with no adverse impact to its operating margins percentage as a result of the restructuring. Our Corrosion Protection platform is likely to experience reduced upstream market activity that will negatively impact profitability, especially for the Bayou Louisiana coating facility during the first half of 2016. The planned cost savings from the announced restructuring initiatives and favorable North American midstream and downstream markets are expected to offset the market challenges affecting Energy Services and Corrosion Protection.
“The favorable market conditions for the majority of Aegion’s business and the strategic actions outlined today give us the opportunity for 2016 non-GAAP earnings per share to be in line with what we expect to achieve in 2015. This outlook excludes a significant contribution from the Shell Appomattox contract we believe is likely in the fourth quarter of 2016. However, the exact schedule for the start of pipe coating activities has yet to be set. Longer-term, we believe our diversified portfolio of technologies and services will deliver sustainable growth as we have repositioned our upstream oil exposure to reflect current market realities. The broader strategic initiatives we previously outlined should enhance growth by accessing new markets to rehabilitate water pressure pipelines, enable more effective pipeline asset integrity management in the growing midstream market and offer higher-margin services through strong customer relationships in the West Coast downstream refining market.”
About Aegion
Aegion Corporation is a global leader in infrastructure protection and maintenance, providing proprietary technologies and services: (i) to protect against the corrosion of industrial pipelines; (ii) to rehabilitate and strengthen water, wastewater, energy and mining piping systems and buildings, bridges, tunnels and waterfront structures; and (iii) to utilize integrated professional services in engineering, procurement, construction, maintenance and turnaround services for a broad range of energy related industries. Aegion’s business activities include manufacturing, distribution, maintenance, construction, installation, coating and insulation, cathodic protection, research and development and licensing. More information about Aegion can be found on our internet site at www.aegion.com.
About Underground Solutions, Inc.
Underground Solutions, Inc. is a leader in water and wastewater infrastructure and process technologies by providinginfrastructure technologies for water, sewer and conduit applications. Underground Solutions, Inc. Fusible PVC® products include, Fusible C-900®, Fusible C-905® and FPVC®, which contain a proprietary PVC formulation that, when combined with its patented fusion process, results in a monolithic, fully-restrained, gasket-free, leak-free piping system. Fusible C-900® and Fusible C-905® both comply with the AWWA standards AWWA C900 and C905, respectively and are certified to NSF 61. More information about Underground Solutions, Inc. can be found at www.undergroundsolutions.com.
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(12/23/15) EPA is seeking public comment on a proposed agreement to allow the Massachusetts Army National Guard to train with a “Percussion Activated Neutralizer” at the Camp Edwards portion of Joint Base Cape Cod.
The comment period, which runs through Jan. 21, 2016, provides an opportunity for public input on this modification to EPA’s 1997 Safe Drinking Water Act Administrative Order. This authorization process is part of EPA’s regulatory role at the Massachusetts Military Reservation to protect the sole source Cape Cod Aquifer.
In a letter dated August 18, 2015, the Massachusetts Army National Guard requested EPA approval to use Percussion Activated Neutralizers (PAN) for training purposes at Camp Edwards. The letter, which included information on the chemical makeup of the device and a description of its intended use, is available on EPA’s website. EPA does not expect that the chemical makeup and use of the items, in the manner proposed, will present a threat to the aquifer, and is now seeking public input on this proposal.
Since 1997, EPA has issued administrative orders at the base, three which fall under the Safe Drinking Water Act. Among other provisions one of the administrative orders includes the suspension of particular military training activities at the Training Range and Impact area of Join Base Cape Cod, due to the nature of the potential contaminants within some of the training devices. However, included was a provision for modification if among other requirements there was, “documentation demonstrating that the use of a propellant… suspended pursuant to this Order does not present a threat of harm to the public or the environment that would warrant its continued suspension under this Order.”
The authorization to use this device is also conditional upon the Massachusetts Army National Guard’s compliance with all conditions established by the Environmental Management Commission.
More information: EPA’s response to the Massachusetts Army National Guard, including EPA’s proposed agreement to modify the Administrative Order to authorize use of the PAN in training, is at www.epa.gov/superfund/otis
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Contributed by Vermeer
A/C may be the secret to landing the best HDD operators
Creature comforts.
It’s a term with a specific meaning. But it also speaks to the various challenges the HDD market is facing.
Creature comforts are the features on a horizontal directional drill that help make operators more comfortable.
It’s an issue of rising importance in the HDD market, and the reason goes back to the challenges contractors are dealing with.
First and foremost is the shortage of skilled HDD operators. They are in high demand, and it can be hard to find them and, once hired, to retain them. So contractors want to keep them happy, and part of that is keeping them comfortable.
Also, a comfortable operator is a more productive operator. Productivity is more important than ever as deadlines and margins get tighter on HDD jobs.
“On some of the bigger bores, those guys are in the cabs for hours. They don’t come out of there,” says Mark Sonnenberg, operations manager for the Vermeer Great Plains dealership. “I think owners have figured out that if they can keep that operator on task, and if the operator likes to sit inside an air-conditioned cab, everyone is better served.”
Cabs have been at the forefront of the increased emphasis on creature comforts. Just a few years ago, Sonnenberg saw very few drills with climate-controlled cabs being sold. Now, about half of his dealership’s drill sales include them.
Another point of emphasis at Vermeer has been common control systems across different drills. That helps to reduce the learning curve for operators and allows them to be proficient on multiple machines, which touches on those labor and productivity concerns.
The controls also have become simpler to use and more ergonomic. Today an HDD operator can run a drill pretty much without taking his hands off the joysticks, which makes controlling the drill easier and also decreases repetitive motions.
Other creature comforts include improved displays, enhanced sightlines from the operator’s seat and quieter machines, which also benefit the general public. Creature comforts will continue to evolve, and Vermeer balances those features with designs that meet the space and power needs of contractors.
“We’re never satisfied,” says Jon Kuyers, Underground global product manager at Vermeer. “Comfort could always get better, and we try to meet those needs while maintaining the specifications that our customers care about.”
For more articles like this, visit: Vermeer Navigator Nation blog, an educational site for HDD operators.
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Cardno’s UAS and Remote Sensing Data Analytics staff will work closely with established Subsurface Utility Engineering (SUE) and Survey teams to provide cutting-edge technology anywhere in the U.S.
PORTLAND, ORE. (November 3, 2015) – Professional infrastructure and environmental services consultancy Cardno is excited to announce the addition of two new services in the U.S.: UAS and Remote Sensing Data Analytics.
UAS
Cardno has received a nationwide 333 exemption and Certificates of Waiver or Authorization (COA) issued by the Federal Aviation Administration for commercial UAS mapping operations at a 200 ft Above Ground Level (AGL) height in “undeveloped” areas. Cardno is committed to expanding its capabilities and technical expertise in the UAS market, as it is one of a few firms of its size licensed to operate in this emerging technology.
Cardno’s fleet of UAV includes both fixed wing and octocopter solutions, which carry mapping grade fixed focal length cameras, HD video, and infrared data/image collection capabilities. The UAV take high-resolution color imagery, producing digital terrain models and other high-tech mapping for a wide range of applications.
By adding UAS capabilities, Cardno strengthens its cutting-edge portfolio of geospatial, mapping, and survey services – including mobile GIS, large format photogrammetry surveys, remote sensing, mobile mapping LiDAR, underground utilities mapping, amongst others – and complements its information management services such as environmental data and compliance management, application and website development, business process modeling, decision support systems, and systems integration.
REMOTE SENSING DATA ANALYTICS
UAS technology is revolutionizing critical data capture, and Cardno’s Remote Sensing Data Analytics team has the flexibility to provide sensor and platform combinations that are cost-effective and meet client needs in a variety of industries and services: emergency response, mining, railway inspection, biological resources, oil & gas, utilities, refineries, water resources, and vegetation analysis.
Cardno’s Remote Sensing Data Analytics scientists have the expertise and experience to provide the highest-quality orthoimagery and point cloud data for developing base products for projects. These base products can then be further analyzed to create an extensive list of value-added products to aid clients in achieving their end goal while staying on schedule and budget.
Cardno’s Jason Kack, West Business Manager, stated, “Cardno has the largest fleet of subsurface utility vehicles in the U.S. and our SUE/survey team comprises over 450 professionals. Cardno also operates with a global network of around 8,100 staff in over 250 offices, giving us the resources to successfully deliver complex projects while leveraging local knowledge and relationships. We are excited to offer this diverse talent to our clients, along with UAS and Remote Sensing Data Analytics—two innovative and crucial next steps to support client projects.” View our website for more details.
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Robbins Machine is the first TBM to break through in Two Decades
A crowd of crew members gathered to celebrate in front of a newly emerged hard rock TBM on December 10, 2015 in northern Norway, but their celebration was about more than just a breakthrough. The 7.2 m (23.6 ft) diameter Robbins Main Beam machine had traversed incredibly hard rock, water inflows, and more to become the first TBM in the country to break through in over 20 years.
The 7.4 km (4.6 mi) long headrace tunnel for the RøssågaHydroelectric Project offered up a number of challenges to the crew. “We bored through hard, quartz-rich rock with rock strengths up to 300 MPa (43,500 psi) UCS and softer karstic limestone with water ingress,” explained Tobias Andersson, TBM Manager for contractor Leonhard Nilsen & Sønner(LNS). Despite the geological challenges, the TBM performed very well and achieved a record production of 250 m (820 ft) advance in one week, as well as a high of 54 m (177 ft) in one day. Advance rates consistently ranged from 180 to 200 m (590 to 660 ft) per week throughout the project.
The hard and abrasive rock required both fine-tuning of the disc cutters and a learning curve with regards to TBM operation. “We overcame the rock by adapting driving parameters to the different geology, cutter wear and vibrations of the machine. We had regular maintenance, but most important of all we got really good at changing the cutters, with times down to 10 minutes per cutter change, which couldn’t have been done without good team work,” said Andersson.
It was the many cutter changes that prompted the close-knit team of LNS and Robbins to look for a better solution. “Extremely hard rock (above 250 MPa/36,300 psi) will always be a great challenge for any cutter. The very special features of the rock encountered combined with the extreme hardness made us go back to the Robbins Cutter Department to develop special cutter rings for the project. These rings increased the cutter life significantly for the project and contributed to the good production,” said Sindre Log, General Manager of Robbins Norway.
The Robbins TBM was launched following Onsite First Time Assembly (OFTA) in January 2014, less than twelve months after contract signing, and was from the outset designed for hard rock conditions. A Measurement While Drilling (MWD) system was included to analyze the ground conditions ahead of the TBM, while probe drilling was done systematically throughout the project. “This is a strong and simple machine ready to tackle hard rock conditions, but also designed to handle softer rock, which allowed for fast excavation. We had good support from competent Robbins field service,” said Andersson.
After all the obstacles, it was clear that the breakthrough ceremony celebrated a triumph of teamwork as well as a new chapter for TBMs in Norway. “Our whole jobsite was gathered for the event: LNS management, representatives from Robbins, and our client Statkraft. People said it was the best breakthrough event they had seen,” said Andersson. Now that tunneling is complete, project owner Statkraft will work to commission the tunnel and fill it with water by spring 2016.
Image 1: The LNS and Robbins crew celebrate Norway’s first TBM breakthrough in 23 years at the RøssågaHydroelectric Project. Photo credit: LNS
Image 2:Kare Solhaug of Robbins Field Service stands proudly in front of the 7.2 m (23.6 ft) diameter TBM on the day of its breakthrough December 10, 2015. Photo credit: LNS
Image 3:The Robbins Main Beam machine was launched in January 2014 and overcame incredibly hard rock, water inflows, and more. Photo credit: Statkraft
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Jared Griffiths Provides Rock Solid Expertise to Drillers
THOMPSON, CONNECTICUT USA, December 11, 2015– Numa, the leading designer and manufacturer of down hole hammers and bits, has announced the addition of Jared Griffiths as a Field Technician. The addition of Griffiths further expands the field support team that has been synonymous with Numa for the past 30 years.
“Numa continues to support our customers both in engineering of superior products and on the job site technical support,” said Numa President Ralph Leonard. “The relationship with our customers is paramount to our success and we are committed to providing expertise in the field where it is needed most. Jared’s addition further reinforces Numa’s dedication to being a trusted partner with our customers on the job site and beyond.”
In this role, Griffiths will support Numa customers on hammer start-ups and on-going technical support. He will advise drillers on best practices for using Numa products including critical insights on drill prep, assembly, air pressure, weight on bit, rotation speed, and drilling techniques to optimize performance. His role also includes consulting and test engineering to determine the most appropriate hammer and bits for ground conditions being encountered on jobs.
Griffiths has worked his way up through Numa’s manufacturing and field operations teams, holding a wide range of roles that has given him an unparalleled depth of understanding of DTH products. In addition to providing field support, Griffiths has previously held positions where he manufactured hammer and bit parts in addition to roles where he was responsible for assembly and repairs. All of Griffiths’ experience provides drillers a critical resource with in-depth knowledge into how Numa products are built, how they operate, and how customers can best maximize performance.
ABOUT NUMA
Numa is the global leader in the design and manufacturing of down hole hammers and bits for drilling vertical, horizontal, and reverse circulation holes from 3½ to 48 inches (89 – 1,219 mm) in diameter. Numa’s products are used in over 105 countries drilling in a wide range of industries including Construction, Foundation, Micro Piling, Oil & Gas, Quarry, Mining, Utility, Geothermal, Environmental, Horizontal, and Water Well.
Foremost to the success of our customers is Numa’s personal service and technological expertise. Numa is dedicated to supporting customers on the job site and is constantly talking to drillers around the world to get first hand input about the products required for today’s demanding drilling environment. Being so close to drillers’ needs has allowed Numa to develop 13 patents for ground breaking drilling technology and produce over 100 different DTH hammer and bit models in a state-of-the-art manufacturing facility.
For more information visit: www.numahammers.com
