Aquilex posts 'disappointing' second-quarter results, working to improve operations

By Jennifer Lanning Drey

Portland, Ore., Aug. 18 - Aquilex Holdings LLC is taking actions to simplify its management structure and streamline key operations after reporting "disappointing" second-quarter results, Jay Ferguson, its chief financial officer, said on Wednesday during the company's quarterly earnings conference call.

Aquilex reported revenues of $105.7 million for the second quarter, which represented a 16% decrease compared to the same period in 2009.

The company said the decline was primarily due to the continued deferral of customers' repair and maintenance projects into the fall outage season or 2011.

Second-quarter adjusted EBITDA was $14.0 million for the three months ended June 30, a decrease of almost 38% as compared to the prior-year period.

Based on internal forecasts for the third quarter, Ferguson said the company feels comfortable it will be able to generate enough EBITDA to meet its covenant requirement.

Also during the second quarter, Aquilex entered into an amended and restated credit agreement providing for a $185 million term loan facility and a revolving credit facility of up to $50 million.

Aquilex used the proceeds of the term loan to repay the entire $176 million outstanding under the previous facility, as well as to pay fees and expenses associated with the repayment, Ferguson reported.

Aquilex is an Atlanta-based provider of maintenance, repair and industrial cleaning services for the energy industry.

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