On May 6, 2013, Aegion Corporation executed a second amendment to its current credit agreement dated August 31, 2011 and amended on November 2, 2012. Pursuant to the terms of the Credit Agreement, the Company is limited in making certain restricted payments in excess of $5.0 million in any fiscal year if the Company's Consolidated Leverage Ratio is greater than or equal to 2.0 to 1.0. The Company previously repurchased $5.0 million of its common stock in 2013 pursuant to a previously disclosed share repurchase program. The Company sought to amend the Credit Agreement to allow for the additional $10.0 million share repurchase of its common stock in remainder of 2013. The Second Amendment authorizes an additional share repurchase of $10.0 million of the Company's common stock, to occur on or before December 31, 2013.

Aegion Corporation reported consolidated earnings results for the first quarter ended March 31, 2013. The company reported first quarter 2013 net income of $2.7 million, or $0.07 per diluted share, compared to $7.3 million, or $0.18 per diluted share, excluding $0.6 million of acquisition related expenses in the first quarter of 2012 (non-GAAP). Revenues were $231.652 million, compared to $230.594 million for the last year. Operating income was $5.281 million, compared to $10.899 million for the last year. Income before taxes on income was $2.902 million, compared to $8.980 million for the last year. Net income attributable to the company was $2.712 million, compared to $6.724 million for the last year. Capital expenditures were $4.988 million, compared to $11.447 million for the last year. Revenues increased slightly by $1.1 million primarily due to 4.4% growth in North American Water and Wastewater platform, partially offset by slight decreases in remaining three segments. Gross profit decreased 10.7%, or $5.6 million, to $47.1 million due to project delays in Energy and Mining and Commercial and Structural segments. Net cash flow from operations was $3.6 million, or 107.6% of net income, compared to $19.2 million in first quarter of 2012. The decrease in operating cash flow from 2012 to 2013 of $15.6 million was primarily related to lower earnings of $3.8 million, coupled with increased payments to vendors and previously accrued expenses of $12.9 million during the first quarter of 2013. Demand remains strong for Energy and Mining pipeline protection technologies and services, supporting the previously stated targets for 2013. Because projects delayed in the quarter will be completed later this year, along with future prospects, the growth objectives for this platform remain attainable, while second half of the year will necessarily be stronger than the first half. Actions taken in the Water and Wastewater platform have positioned it to continue to improve profitability in 2013. The Asia-Pacific region continues to implement its recovery plan to return to profitability in 2013. The European market has been stable so far in 2013, with modest improvement in several countries, and the company is on target to achieve previously stated targets for the year. The results in the first quarter do not change the outlook and guidance previously stated for 2013.

Aegion Corporation, Q1 2013 Earnings Call, Apr 25, 2013