Infrastructure and Energy Alternatives, Inc. (IEA) Misses Q4 EPS by 133c, Revenues Beat; Offers FY19 Revenue Mid-Point Outlook Above Consensus

Infrastructure and Energy Alternatives, Inc. (NASDAQ: IEA) reported Q4 EPS of ($1.63), $1.33 worse than the analyst estimate of ($0.30). Revenue for the quarter came in at $275.86 million versus the consensus estimate of $214.29 million.

• Revenue of $275.9 million, up 132% year-over-year
• Backlog of $2.1 billion at December 31, 2018, up from $1.3 billion at September 30, 2018 and $1.1 billion at December 31, 2017
• Successful closing on the acquisition of William Charles Construction Group, including Ragnar Benson (“William Charles Construction”)

Management Commentary

JP Roehm, Chief Executive Officer of IEA commented, “2018 was a transformative year for IEA. We became a publicly traded company and a much larger and more diverse engineering and construction services business through the acquisitions of Consolidated Construction Services and William Charles Construction. These acquisitions significantly expanded the breadth and depth our civil and environmental engineering practice, adding new end-markets in infrastructure, industrial and rail, expanding our geographic footprint and increasing the number and mix of projects in our backlog. Importantly, they were consistent with our stated goals of scaling and diversifying IEA through selective, strategic M&A transactions.”

Mr. Roehm continued, “2018 also had its challenges. Specifically, multiple severe weather events had a significant impact on the construction of six of our nine major wind projects that were under construction in 2018, across three states. As previously announced, this caused our fourth quarter and full year financial results to fall short of our expectations. We don’t anticipate any additional construction risk on these projects which are all now in late stages of completion and we are collecting and continuing to collect on change orders relating to force majeure provisions of the contracts relating to certain of these projects.”

“We are excited about 2019. We are no longer just a wind and renewables business and enter the new year as a stronger and more diversified engineering and construction services company, with all of our businesses performing well. We have a record level of backlog and a strong pipeline of new opportunities and our acquisitions are on track to achieve our anticipated revenue and synergies. Our top priorities for the year ahead include driving organic growth, operational excellence and collaboration across our newly scaled and diversified platform. Finally, the diversification created by our acquisitions should help mitigate the effects of severe weather patterns in the future. All of this gives us confidence that our 2019 guidance is achievable,” Mr. Roehm concluded.

GUIDANCE:

Infrastructure and Energy Alternatives, Inc. sees FY2019 revenue of $1-1.2 billion, versus the consensus of $1.06 billion.

We are now a significantly larger and more diversified engineering and construction business with niche market positions in large and growing markets. The Company remains confident in its long-term growth outlook driven primarily by its strong existing backlog, growing pipeline of opportunities and continued strength across all of its end markets.

For the full year 2019, we anticipate revenues in the range of $1.0 billion to $1.2 billion and Adjusted EBITDA to be in the range of $90 million to $110 million. For a reconciliation of Adjusted EBITDA and discussion of further adjustments for cost savings and synergies, please see the appendix to this release.

For earnings history and earnings-related data on Infrastructure and Energy Alternatives, Inc. (IEA) click here.

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