CH2M HILL COMPANIES LTD

CIK:0000777491|SEC Filings

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Consolidated Statements of Operations
Gross revenue	$ 1,240,646	$ 1,302,609	$ 3,765,938	$ 3,880,584
Equity in earnings of joint ventures and affiliated companies	8,233	26,877	30,972	44,647
Operating expenses:
Direct cost of services	(970,899)	(1,106,926)	(3,021,853)	(3,210,501)
Selling, general and administrative	(194,371)	(224,184)	(589,369)	(689,383)
Operating income (loss)	83,609	(1,624)	185,688	25,347
Other income (expense):
Interest income	117	136	325	306
Interest expense	(11,426)	(3,873)	(27,836)	(10,019)
Income (loss) from continuing operations before provision for income taxes	72,300	(5,361)	158,177	15,634
(Provision) benefit for income taxes from continuing operations	(18,550)	58,911	(39,501)	56,103
Net income from continuing operations	53,750	53,550	118,676	71,737
Net loss from discontinued operations	(1,478)	(87,199)	(1,619)	(235,852)
Net income (loss)	52,272	(33,649)	117,057	(164,115)
Less: income attributable to noncontrolling interests from continuing operations	(3,750)	(3,461)	(12,343)	(8,280)
Less: loss attributable to noncontrolling interests from discontinued operations		53,043	60	150,865
Net income (loss) attributable to CH2M	$ 48,522	$ 15,933	$ 104,774	$ (21,530)
Net income (loss) attributable to CH2M per common share1:
Basic net income from continuing operations per common share	$ 1.48	$ 1.25	$ 3.04	$ 3.61
Basic net loss from discontinued operations per common share	(0.04)	(0.85)	(0.05)	(4.83)
Basic net income (loss) per common share	1.44	0.40	2.99	(1.22)
Diluted net income from continuing operations per common share	1.35	1.25	2.93	3.61
Diluted net loss from discontinued operations per common share	(0.04)	(0.85)	(0.04)	(4.83)
Diluted net income (loss) per common share	$ 1.31	$ 0.40	$ 2.89	$ (1.22)
Weighted average number of common shares:
Basic weighted average number of common shares (in shares)	24,595,751	25,356,689	24,738,459	25,816,819
Diluted weighted average number of common shares (in shares)	26,948,751	25,389,138	25,630,459	25,816,819

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income (loss)	$ 117,057	$ (164,115)
Adjustments to reconcile net income to net cash provided by (used in) continuing operating activities:
Net loss from discontinued operations	1,619	235,852
Depreciation and amortization	45,356	45,770
Stock-based employee compensation	11,191	28,952
Loss on disposal of property, plant and equipment	679	62
Amortization of debt issuance costs	655
Allowance for uncollectible accounts	2,772	3,706
Deferred income taxes	36,247	(145,523)
Undistributed earnings and gains from unconsolidated affiliates	(30,972)	(44,647)
Distributions of income from unconsolidated affiliates	33,691	41,214
Contributions to defined benefit pension plans	(21,692)	(30,482)
Gain on pension curtailment		(4,568)
Excess tax benefits from stock-based compensation	2,267	3,093
Change in assets and liabilities of continuing operations:
Receivables and unbilled revenue	(95,089)	100,021
Prepaid expenses and other	(15,208)	(3,892)
Accounts payable and accrued subcontractor costs	50,992	(57,140)
Billings in excess of revenue	(35,082)	14,827
Accrued payroll and employee related liabilities	25,369	(54,572)
Other accrued liabilities	(27,910)	(616)
Income tax receivable	(9,600)	18,202
Long-term employee related liabilities and other	(11,330)	37,106
Net cash provided by operating activities from continuing operations	81,012	23,250
Net cash used in operating activities from discontinued operations	(15,459)	(153,197)
Net cash provided by (used in) operating activities	65,553	(129,947)
Cash flows from investing activities:
Capital expenditures	(16,199)	(87,511)
Acquisition related payments	(213)	(17,901)
Investments in unconsolidated affiliates	(20,647)	(16,596)
Distributions of capital from unconsolidated affiliates	875	10,456
Proceeds from sale of operating assets	2,665	2,703
Net cash used in investing activities from continuing operations	(33,519)	(108,849)
Net cash used in investing activities from discontinued operations	(8,109)	(169)
Net cash used in investing activities	(41,628)	(109,018)
Cash flows from financing activities:
Borrowings on long-term debt	1,506,127	1,808,743
Payments on long-term debt	(1,462,678)	(1,690,254)
Repurchases and retirements of common stock	(43,602)	(103,912)
Proceeds from the issuance of preferred stock, net of issuance costs		99,800
Settlement of tax-withholding obligation on stock-based compensation	(3,030)	(3,720)
Net distributions to noncontrolling interests for continuing operations	(3,786)	(5,452)
Net cash (used in) provided by financing activities from continuing operations	(6,969)	105,205
Net cash provided by financing activities from discontinued operations	4,635	80,007
Net cash (used in) provided by financing activities	(2,334)	185,212
Effect of deconsolidation of a joint venture partnership on cash	(23,376)
Effect of exchange rate changes on cash	16,048	(16,994)
Increase (decrease) in cash and cash equivalents	14,263	(70,747)
Cash and cash equivalents from continuing operations, beginning of period	121,365	148,979
Cash and cash equivalents from discontinued operations, beginning of period	9,664	48,042
Cash and cash equivalents, beginning of period	131,029	197,021
Cash and cash equivalents from continuing operations, end of period	145,292	114,615
Cash and cash equivalents from discontinued operations, end of period		11,659
Cash and cash equivalents, end of period	145,292	126,274
Supplemental disclosures:
Cash paid for interest	19,760	9,781
Cash paid for income taxes	$ 6,930	$ 7,390

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 29, 2017	Dec. 30, 2016
Current assets:
Cash and cash equivalents	$ 145,292	$ 121,365
Receivables, net-
Client accounts	624,164	602,363
Unbilled revenue	532,212	529,779
Other	11,062	11,469
Income tax receivable	22,303	18,375
Prepaid expenses and other current assets	83,032	92,097
Current assets of discontinued operations	276	14,449
Total current assets	1,418,341	1,389,897
Investments in unconsolidated affiliates	82,107	66,329
Property, plant and equipment, net	229,582	246,596
Goodwill	512,528	477,752
Intangible assets, net	26,813	38,024
Deferred income taxes	332,512	363,251
Employee benefit plan assets and other	95,969	86,777
Long-term assets of discontinued operations		1,836
Total assets	2,697,852	2,670,462
Current liabilities:
Current portion of long-term debt	2,249	2,242
Accounts payable and accrued subcontractor costs	368,857	394,934
Billings in excess of revenue	194,147	227,501
Accrued payroll and employee related liabilities	274,312	272,458
Other accrued liabilities	183,003	210,121
Current liabilities of discontinued operations	922	208,105
Total current liabilities	1,023,490	1,315,361
Long-term employee related liabilities	286,407	308,118
Long-term debt	539,748	495,632
Other long-term liabilities	92,212	105,813
Long-term liabilities of discontinued operations	77,920
Total liabilities	2,019,777	2,224,924
Commitments and contingencies (Note 15)
Stockholders’ equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized of which 10,000,000 are designated as Series A; 4,821,600 issued and outstanding at September 29, 2017 and as of December 30, 2016	48	48
Common stock, $0.01 par value, 100,000,000 shares authorized; 24,606,719 and 25,148,399 issued and outstanding at September 29, 2017 and December 30, 2016, respectively	246	251
Additional paid-in capital	137,167	169,573
Retained earnings	691,027	586,252
Accumulated other comprehensive loss	(148,782)	(209,408)
Total CH2M common stockholders’ equity	679,706	546,716
Noncontrolling interests of continuing operations	(1,631)	(8,643)
Noncontrolling interests of discontinued operations		(92,535)
Total stockholders' equity	678,075	445,538
Total liabilities and stockholders’ equity	$ 2,697,852	$ 2,670,462