Willbros Brings Financial Filings Current and Reports 2005 and First Quarter 2006 Results

HOUSTON, June 16 /PRNewswire-FirstCall/ -- Willbros Group, Inc. announced today that it has filed its results for third quarter 2005 on Form 10-Q, for the year ended December 31, 2005 on Form 10-K and for the first quarter 2006 on Form 10-Q. The 2005 and 2006 Forms will be available on the Company's web site at http://www.willbros.com/ . Financial results for the referenced periods are presented as tables to this press release. Willbros also reported that its backlog, adjusted for the sale of the Opal TXP-4 Plant, stood at $820 million at the end of March 2006, as compared to $816 million at December 31, 2005.

"We are moving beyond many of the challenges we have dealt with over the past eighteen months," stated Michael F. Curran, Chairman and CEO. "After a lot of hard work, we believe we have become a more efficient company, and we are in the process of working through the majority of the remaining legacy work in Nigeria. We continue to see increasing opportunities to expand both our backlog and our revenue at improved contract margins."

First Quarter 2006

For the quarter ended March 31, 2006, the Company posted operating income of $0.5 million on revenue of $248.5 million. Contract costs were $227.1 million, resulting in a gross margin of 8.6 percent. General and Administrative costs were $15.7 million (or 6.3 percent of revenue). The tax provision was $6.0 million primarily due to taxes payable on a deemed profit basis in Nigeria. Net loss was $(4.6) million, or $(0.22) per share, compared to a net loss of $(9.9) million, or $(0.47) per share, in the first quarter of 2005.

International revenue of $149.9 million increased by $62.9 million over the same period in 2005, primarily due to increased work in Nigeria. In the United States & Canada, revenue of $98.6 million was up $54.0 million as compared to results for the same period in 2005, primarily as a result of increased engineering activities in Tulsa, increased construction activity at Willbros RPI and increased work in the oil sands region of Canada.

The increase in contract income of $4.6 million to $21.4 million in the first quarter of 2006 compared to the same quarter last year was almost evenly split between our International and United States & Canada business segments. However, contract margin was down 4.1 percentage points primarily due to the recent events in Nigeria that resulted in project delays and additional costs on virtually all projects in Nigeria.

General and Administrative ("G&A") costs were $15.7 million for the first quarter of 2006. This was a decrease of $1.4 million or eight percent compared to the same quarter of 2005. This reduction in G&A costs included increased insurance and additional staffing costs totaling approximately $1.5 million.

Depreciation and amortization costs for the period ending March 31, 2006 were approximately $5.2 million, compared to $5.3 million for the same period in 2005.

The Company recognized a gain of $2.4 million on the sale of equipment, primarily the TXP-4 Plant in Opal, Wyoming, partially offset by net interest and other expense of approximately $1.6 million, resulting in other income of $0.8 million.

Full Year 2005

For the year ended December 31, 2005, Willbros reported an operating loss of $(16.1) million on $706.5 million in revenue. Contract costs were $624.6 million, resulting in a gross margin of 11.6 percent. G&A costs were $75.4 million (or 10.7 percent of revenue). The tax provision was $18.3 million primarily due to taxes payable on a deemed profit basis in Nigeria. Net loss was $(38.8) million, or $(1.82) per share, compared to a net loss of $(20.8) million, or $(0.99) per share, in 2004.

The increase in revenue is attributable to the following: * Increased construction activity in Nigeria on four large EPC contracts with major oil companies partially offset by work completed in 2004 in Iraq, Venezuela, Oman, Bolivia and Ecuador; * Commencement of work on new engineering and pipeline construction projects in the United States; and * Continuation of work relating to maintenance and fabrication contracts in the Canadian oil sands.

Contract income increased $16.3 million to $82.0 million in 2005 compared to the previous year due to the increase in revenue. However, contract margin decreased 2.0 percentage points to 11.6 percent. The decrease in contract margin was primarily due to low margin projects in Nigeria, start-up costs and cost overruns in Canada and interruptions of work in progress in the United States by Hurricanes Katrina and Rita. Contract income and contract margin percentage in both segments were negatively impacted in 2005 by unresolved change orders which are expected to be resolved in future periods.

G&A expense increased $28.8 million to $75.4 million in 2005 compared to $46.6 million in 2004. The increase in G&A expense in 2005 was primarily related to the costs associated with the investigations, restatement of prior periods financial results and shareholders' lawsuits.

Depreciation and amortization costs for the year ended December 31, 2005 were $21.6 million, compared to $16.7 million for the same period in 2005.

Other expense decreased $5.1 million to $4.3 million for the year ended December 31, 2005. Net interest expense increased $1.3 million to $3.9 million in 2005 compared to the prior year. Other expenses decreased $6.4 million to $0.4 million primarily as a result of a reduction in bad debt expense in 2005.

Detailed explanations of the results for the reported periods and factors which impacted them are provided in the Company's filings, which were filed today.

BACKLOG(1)

Willbros reported backlog(1) at March 31, 2006 of approximately $820 million with an embedded margin of 13.6 percent as compared to $816 million with an embedded margin of 15.5 percent at December 31, 2005.

CONFERENCE CALL

In conjunction with this release, Willbros has scheduled a conference call, which will be broadcast live over the Internet, on Monday, June 19, 2006, at 9:00 a.m. Eastern Time (8:00 a.m. Central).

What: Willbros Earnings Conference Call When: Monday, June 19, 2006 - 9:00 a.m. Eastern Time How: Live via phone -- By dialing [phone] and asking for the Willbros call 10 minutes prior to the start time. Or live over the Internet by logging on to the web address below. Where: http://www.willbros.com/ . The webcast can be accessed from the home page.

For those who cannot listen to the live call, a replay will be available through July 3, 2006, and may be accessed by calling [phone] using pass code 11064166. Also, an archive of the webcast will be available shortly after the call on http://www.willbros.com/ for a period of 12 months.

Willbros Group, Inc. is an independent contractor serving the oil, gas and power industries, providing engineering and construction, and facilities development and operations services to industry and government entities worldwide. For more information on Willbros, please visit our web site at http://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 those discussed above and such things as the potential for additional investigations, fines and penalties by government agencies, the financial impact of the internal investigation, litigation that may arise from the investigation, the outcome of the current Securities and Exchange Commission, Office of Foreign Assets Control and Department of Justice investigations; 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 effective tax rate of the different countries where the work is being conducted, development trends of the oil, gas and power 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.

TABLES TO FOLLOW WILLBROS GROUP, INC. (In Thousands, Except Per Share Amounts) Three Months Ended March 31 2006 2005 Statement of Income Data Contract revenue International $149,901 $87,034 United States & Canada 98,595 44,568 248,496 131,602 Contract cost International 133,898 73,580 United States & Canada 93,229 41,255 227,127 114,835 Contract income International 16,003 13,454 United States & Canada 5,366 3,313 21,369 16,767 Depreciation and amortization 5,175 5,307 General and administrative 15,651 17,068 Other operating costs --- 1,084 Operating income (loss) 543 (6,692) Other income (expense): Interest - net (1,582) (546) Other - net 2,414 104 832 (442) Income (loss) before income taxes 1,375 (7,134) Provision (benefit) for income taxes 5,968 2,764 Net income (loss) $(4,593) $(9,898) Earnings (loss) per share: Basic $(.22) $(.47) Diluted $(.22) $(.47) Cash Flow Data Cash provided by (used in): Operating activities $(19,754) $(1,455) Investing activities 15,513 (7,234) Financing activities 14,581 (2,410) Foreign exchange effects 40 280 Other Data Weighted average shares outstanding: Basic 21,346 21,250 Diluted 21,346 21,250 EBITDA (2) $8,132 $(1,281) Capital expenditures 5,713 7,275 Reconciliation of Non-GAAP Financial Measure Net income (loss) $(4,593) $(9,898) Interest - net 1,582 546 Income taxes 5,968 2,764 Depreciation and amortization 5,175 5,307 EBITDA (2) $8,132 $(1,281) Balance Sheet Data 3/31/2006 12/31/2005 Cash and cash equivalents $75,961 $65,581 Working capital 149,948 116,713 Total assets 513,620 498,981 Total debt 165,193 138,020 Stockholders' equity 141,184 145,234 Backlog Data (1) By Geographic Area: West Africa $475,618 $564,343 Latin America --- 11,639 Middle East 46,653 47,196 North America 297,462 193,177 $819,733 $816,355 By Reporting Segment: International 522,271 623,178 United States & Canada 297,462 193,177 $819,733 $816,355 WILLBROS GROUP, INC. (In Thousands, Except Per Share Amounts) Three Months Ended Year Ended December 31 December 31 2005 2004 2005 2004 Statement of Income Data Contract revenue International $133,432 $89,926 $412,761 $290,524 United States & Canada 118,445 57,608 293,761 192,794 251,877 147,534 706,522 483,318 Contract cost International 114,064 77,338 362,327 249,660 United States & Canada 104,486 48,569 262,229 168,011 218,550 125,907 624,556 417,671 Contract income International 19,368 12,588 50,434 40,864 United States & Canada 13,959 9,039 31,532 24,783 33,327 21,627 81,966 65,647 Depreciation and amortization 5,814 4,833 21,586 16,747 General and administrative 19,538 13,382 75,430 46,614 Other operating costs --- 725 1,084 3,571 Operating income (loss) 7,975 2,687 (16,134) (1,285) Other income (expense): Interest - net (1,230) (625) (3,856) (2,534) Other - net (411) (6,861) (482) (6,932) (1,641) (7,486) (4,338) (9,466) Income (loss) before income taxes 6,334 (4,799) (20,472) (10,751) Provision (benefit) for income taxes 7,744 4,243 18,308 10,064 Net income (loss) $(1,410) $(9,042) $(38,780) $(20,815) Earnings (loss) per share: Basic $(.07) $(.43) $(1.82) $(.99) Diluted $(.07) $(.43) $(1.82) $(.99) Cash Flow Data Cash provided by (used in): Operating activities $(20,461) $41,004 $(33,022) $40,969 Investing activities (10,358) (9,660) (36,964) (36,751) Financing activities 59,966 2,006 56,830 54,362 Foreign exchange effects (458) (932) 17 (829) Other Data Weighted average shares outstanding: Basic 21,274 21,083 21,258 20,922 Diluted 21,274 21,083 21,258 20,922 EBITDA (2) $13,378 $659 $4,970 $8,530 Capital expenditures 10,414 10,425 38,888 38,479 Reconciliation of Non-GAAP Financial Measure Net income (loss) $(1,410) $(9,042) $(38,780) $(20,815) Interest - net 1,230 625 3,856 2,534 Income taxes 7,744 4,243 18,308 10,064 Depreciation and amortization 5,814 4,833 21,586 16,747 EBITDA (2) $13,378 $659 $4,970 $8,530 Balance Sheet Data 12/31/2005 9/30/2005 12/31/2004 Cash and cash equivalents $65,581 $36,892 $78,720 Working capital 116,713 57,105 108,643 Total assets 498,981 421,489 417,110 Total debt 138,020 70,659 73,495 Stockholders' equity 145,234 145,804 180,044 Backlog Data (1) By Geographic Area: West Africa $564,343 $661,236 $554,692 Latin America 11,639 11,880 12,211 Middle East 47,196 18,769 2,500 North America 193,177 293,354 91,529 $816,355 $985,239 $660,932 By Reporting Segment: International 623,178 691,885 569,403 United States & Canada 193,177 293,354 91,529 $816,355 $985,239 $660,932 WILLBROS GROUP, INC. (In Thousands, Except Per Share Amounts) Three Months Ended Nine Months Ended September 30 September 30 2005 2004 2005 2004 Statement of Income Data Contract revenue International $94,115 $75,678 $279,329 $200,598 United States & Canada 64,732 42,255 175,316 135,186 158,847 117,933 454,645 335,784 Contract cost International 87,601 70,887 248,263 172,322 United States & Canada 59,045 35,990 157,743 119,442 146,646 106,877 406,006 291,764 Contract income International 6,514 4,791 31,066 28,276 United States & Canada 5,687 6,265 17,573 15,744 12,201 11,056 48,639 44,020 Depreciation and amortization 5,515 4,242 15,772 11,914 General and administrative 20,050 11,614 55,892 33,232 Other operating costs --- 1,238 1,084 2,846 Operating income (loss) (13,364) (6,038) (24,109) (3,972) Other income (expense): Interest - net (1,561) (822) (2,626) (1,909) Other - net (310) (359) (71) (71) (1,871) (1,181) (2,697) (1,980) Income (loss) before income taxes (15,235) (7,219) (26,806) (5,952) Provision (benefit) for income taxes 2,318 2,785 10,564 5,821 Net income (loss) $(17,553) $(10,004) $(37,370) $(11,773) Earnings (loss) per share: Basic $(.83) $(.48) $(1.76) $(.56) Diluted $(.83) $(.48) $(1.76) $(.56) Cash Flow Data Cash provided by (used in): Operating activities $(7,135) $11,476 $(12,561) $(35) Investing activities (10,918) (11,210) (26,606) (27,091) Financing activities (84) (561) (3,136) 52,356 Foreign exchange effects 577 68 475 103 Other Data Weighted average shares outstanding: Basic 21,255 20,976 21,253 20,868 Diluted 21,255 20,976 21,253 20,868 EBITDA (2) $(8,159) $(2,155) $(8,408) $7,871 Capital expenditures 11,248 11,881 28,474 28,054 Reconciliation of Non-GAAP Financial Measure Net income (loss) $(17,553) $(10,004) $(37,370) $(11,773) Interest - net 1,561 822 2,626 1,909 Income taxes 2,318 2,785 10,564 5,821 Depreciation and amortization 5,515 4,242 15,772 11,914 EBITDA (2) $(8,159) $(2,155) $(8,408) $7,871 Balance Sheet Data 9/30/2005 6/30/2005 12/31/2004 Cash and cash equivalents $36,892 $54,452 $78,720 Working capital 57,105 78,395 108,643 Total assets 421,489 429,401 417,110 Total debt 70,659 70,727 73,495 Stockholders' equity 145,804 161,096 180,044 Backlog Data (1) By Geographic Area: West Africa $661,236 $611,085 $554,692 Latin America 11,880 12,026 12,211 Middle East 18,769 12,243 2,500 North America 293,354 81,180 91,529 $985,239 $716,534 $660,932 By Reporting Segment: International 691,885 635,354 569,403 United States & Canada 293,354 81,180 91,529 $985,239 $716,534 $660,932 (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. 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. CONTACT: Michael W. Collier Vice President Investor Relations Willbros USA, Inc. [phone] Jack Lascar / Partner DRG&E [phone]