AEGION CORPORATION (NASDAQ:AEGN) Files An 8-K Costs Associated with Exit or Disposal ActivitiesItem 2.05.
Costs Associated with Exit or Disposal Activities.
In its Press Release, the Company provided its estimate of total pre-tax restructuring and impairment charges associated with the 2017 Restructuring, inclusive of charges associated with the subsequent decisions to divest the Company’s CIPP operations in Denmark and Australia. The Company currently forecasts $130 million in total pre-tax restructuring and impairment charges, inclusive of $21 million to $23 million in cash charges, for the 2017 Restructuring. Through September 30, 2018, the Company incurred total pre-tax restructuring and related impairment changes of $126 million, including cash charges of $21 million and non-cash charges of $105 million, of which $86 million related to goodwill and long-lived asset impairment charges recorded in 2017 as part of exiting the Fyfe structural contracting business in North America.
On October 26, 2018, the Company’s board of directors approved the Additional 2017 Restructuring Actions. Total pre-tax charges associated with the Additional 2017 Restructuring Actions are expected to be approximately $25 million, including pre-tax cash charges of approximately $8 million to $10 million. Most charges are expected to be incurred by mid-2019. The charges for the additional actions are expected to be related to employee severance, retention, extension of benefits, employment assistance programs, early lease and contract termination and other restructuring related costs. The identified charges are primarily focused in the international operations of both Infrastructure Solutions and Corrosion Protection, but also include certain other measures to reduce consolidated operating costs. The Company expects to reduce headcount by approximately 150 employees as a result of these additional actions. As the Company completes these actions over the coming months, additional charges and headcount reductions could occur.
The information provided in Item 2.05 of this Current Report on Form 8-K/A is incorporated by reference into this Item 2.06.
Financial Statements and Exhibits.
(d)The following Exhibits are filed as part of this report:
99.1Press Release of Aegion Corporation dated October 30, 2018, filed herewith.
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. The Company makes forward-looking statements in this Current Report on Form 8-K that represent the Company’s beliefs or expectations about future events or financial performance. These forward-looking statements are based on information
currently available to the Company and on Management’s beliefs, assumptions, estimates and projections and are not guarantees of future events or results. When used in this report, the words “anticipate,” “estimate,” “believe,” “plan,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Such statements are subject to known and unknown risks, uncertainties and assumptions, including those referred to in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission on March 1, 2018, and in the Company’s subsequently filed reports. In light of these risks, uncertainties and assumptions, the forward-looking events discussed may not occur. In addition, the Company’s actual results may vary materially from those anticipated, estimated, suggested or projected. Except as required by law, the Company does not assume a duty to update forward-looking statements, whether as a result of new information, future events or otherwise. Investors should, however, review additional disclosures made by the Company from time to time in the Company’s filings with the Securities and Exchange Commission. Please use caution and do not place reliance on forward-looking statements. All forward-looking statements made by the Company in this report are qualified by these cautionary statements.
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Aegion Corp ExhibitEX-99.1 2 exhibit991-pressreleaseofo….To view the full exhibit click
About AEGION CORPORATION (NASDAQ:AEGN)
Aegion Corporation (Aegion) is engaged in providing infrastructure protection and maintenance. The Company is engaged in providing technologies and services to protect against the corrosion of industrial pipelines, and rehabilitate and strengthen water, wastewater, energy and mining piping systems and buildings, bridges, tunnels and waterfront structures. It operates through three segments: Infrastructure Solutions, Corrosion Protection and Energy Services. Its sewer rehabilitation activities are conducted through installation and other construction operations performed directly by its subsidiaries. Its corrosion protection operations perform maintenance rehabilitation and corrosion protection services for oil and gas, industrial, and mineral piping systems and structures. Its Energy Services Operations performs engineering, procurement, construction, maintenance and turnaround services.