Williams Industrial Services Group Inc. ♦ 100 Crescent Centre Parkway, Suite 1240 ♦ Tucker, GA 30084

FOR IMMEDIATE RELEASE

Williams Reports First Quarter 2020 Financial Results

Revenue Growth 30.6%; New $60 Million Fuel Storage/Decommissioning Award; EBITDA Outlook Unchanged

ATLANTA, GA, May 13, 2020 – Williams Industrial Services Group Inc. (OTCQX: WLMS) (“Williams” or the “Company”), a construction and maintenance services company, today reported its financial results for the fiscal first quarter ended March 31, 2020.

Recent Highlights

“While the world around us has changed a great deal due to the COVID-19 pandemic, Williams has seen relatively moderate disruption across the Company’s core operations with respect to pending work and existing backlog,” said Tracy Pagliara, President and CEO of Williams. “First quarter revenue rose 30.6% year-over-year, reflecting the essential nature of our service offerings and core markets we serve. Unfortunately, revenue mix, delayed scheduling of certain projects due to COVID-19 and other factors, project start-up and closeout costs and the timing of some SG&A expenses negatively impacted bottom line results. Our first quarter, however, was always expected to be the lightest this year, and we anticipate recovering revenue from delayed projects going forward.

“We are slightly reducing revenue guidance for fiscal 2020 because COVID-19 has temporarily curtailed our normal business development activities. As such, we cannot accurately predict the timing of our ability to secure certain new work later in 2020. However, we are encouraged by the recent $60 million contract award and, importantly, are not changing any other guidance. The Company is maintaining its original forecast for gross margin, SG&A and Adjusted EBITDA by actively managing costs and rapidly adapting to current conditions. 

“We continue to believe that Williams is well positioned to successfully navigate the remainder of 2020. While taking

appropriate steps to safeguard employees and customers, we are confident that underlying demand dynamics are favorable to the Company and the end markets we serve, even during recessionary times. We will, as always, focus on diversifying the business, managing working capital, reducing expenses and improving long-term returns for shareholders in spite of the unique challenges 2020 brings.”

First Quarter 2020 Financial Results Compared to First Quarter 2019

Revenue in the first quarter was $66.1 million, up 30.6% from $50.7 million in the first quarter of fiscal 2019, reflecting $7.1 million of higher revenue from Canadian nuclear projects, a $4.6 million increase related to the Company’s decommissioning business, and $2.5 million of additional revenue from Vogtle 3 & 4.

Gross profit was $6.9 million, or 10.4% of revenue, compared with $6.7 million, or 13.2% of revenue, in the prior-year period, with the lower margin in 2020 due to business mix, project delays, and project start-up and closeout costs. Operating expenses were $6.4 million versus $5.1 million in the first quarter of 2019. The increase year-over-year was primarily due to the timing of certain professional fees and incentive compensation. Interest expense was $1.5 million for the first quarter of both fiscal 2020 and 2019.

The Company reported a net loss of $1.0 million, or $(0.05) per share, in the first quarter of 2020 compared with net income of $0.3 million, or $0.02 per share, in the prior-year period. 

Balance Sheet

As of March 31, 2020, the Company had $6.2 million of cash (including restricted cash) and $39.7 million of bank debt compared with $7.8 million of cash and $44.2 million of bank debt as of December 31, 2019.

Backlog

Total backlog as of March 31, 2020 was $468.4 million compared with $494.9 million at December 31, 2019. The Company booked $23.2 million of new awards, recognized revenue of $66.1 million, and had adjustments or cancellations of $16.4 million.

Williams estimates that approximately $184.7 million, or 39.4%, of the total backlog as of March 31, 2020 will be converted to revenue during the next twelve months. This compares with $191.3 million of backlog at December 31, 2019 that the Company anticipated would be converted to revenue over the succeeding twelve-month period.

Outlook

Given the economic uncertainty caused by the onset of the COVID-19 pandemic, particularly with regard to the timing of new business awards, the Company has adjusted its revenue outlook range from $280 - $300 million to $270 - $290 million. All other guidance remains unchanged.

*See Note 1—Non-GAAP Financial Measures for information regarding the use of Adjusted EBITDA and forward-looking non-GAAP financial measures.

Webcast and Teleconference

The Company will host a conference call tomorrow, May 14, 2020, at 10:00 a.m. Eastern time. A webcast of the call and an accompanying slide presentation will be available at www.wisgrp.com. To access the conference call by telephone, listeners should dial 201-493-6780.

An audio replay of the call will be available later that day by dialing 412-317-6671 and entering conference ID number 13702013. Alternatively, you may access the webcast replay at http://ir.wisgrp.com/, where a transcript will be posted once available.

About Williams

Williams Industrial Services Group has been safely helping plant owners and operators enhance asset value for more than 50 years. The Company provides a broad range of construction, maintenance and modification, and support services to customers in energy and industrial end markets. Williams’ mission is to be the preferred provider of construction, maintenance, and specialty services through commitment to superior safety performance, focus on innovation, and dedication to delivering unsurpassed value to its customers.

Additional information about Williams can be found on its website: www.wisgrp.com.  

Forward-looking Statement Disclaimer

This press release contains “forward-looking statements” within the meaning of the term set forth in the Private Securities Litigation Reform Act of 1995. The forward-looking statements include statements or expectations regarding the Company’s ability to realize opportunities and successfully achieve its growth and strategic initiatives, the impact of the COVID-19 pandemic on the Company’s business, operations, and financial condition, the Company’s ability to control costs, future demand for the Company’s services, the Company’s ability to diversity its business, manage expenses, reduce working capital, and improve returns for shareholders, and other related matters. These statements reflect the Company’s current views of future events and financial performance and are subject to a number of risks and uncertainties, some of which have been, and may further be, exacerbated by the COVID-19 pandemic, including its ability to comply with the terms of its debt instruments and access letters of credit, ability to implement strategic initiatives, business plans, and liquidity plans, and ability to maintain effective internal control over financial reporting and disclosure controls and procedures. Actual results, performance or achievements may differ materially from those expressed or implied in the forward-looking statements. Additional risks and uncertainties that could cause or contribute to such material differences include, but are not limited to, reduced need for construction or maintenance services in the Company’s targeted markets, or increased regulation of such markets, loss of any of the Company’s major customers, whether pursuant to the loss of pending or future bids for either new business or an extension of existing business, termination of customer or vendor relationships, cost increases and project cost overruns, unforeseen schedule delays, poor performance by its subcontractors, cancellation of projects, the impact of the COVID-19 pandemic on the Company generally or on any of the Company’s customers or vendors upon which it relies, including, among other things, changes in capital spending by the Company’s customers and the significant adverse impacts on economic and market conditions of the COVID-19 pandemic and the Company’s ability to respond to the challenges and business disruption presented by the COVID-19 pandemic, the recent disruption of the global energy market and resulting low fuel prices, competition, including competitors being awarded business by current customers, damage to the Company’s reputation, warranty or product liability claims, increased exposure to environmental or other liabilities, failure to comply with various laws and regulations, failure to attract and retain highly-qualified personnel, loss of customer relationships with critical personnel, volatility of the Company’s stock price, deterioration or uncertainty of credit markets, and changes in the economic, social and political conditions in the United States, including the banking environment or monetary policy.

Other important factors that may cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company’s filings with the U.S. Securities and Exchange Commission, including the section of the Annual Report on Form 10-K for its 2019 fiscal year titled “Risk Factors.” Any forward-looking statement speaks only as of the date of this press release. Except as may be required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, and you are cautioned not to rely upon them unduly.

Investor Contact:

Chris Witty

Darrow Associates

646-345-0998

cwitty@darrowir.com

Financial Tables Follow

WILLIAMS INDUSTRIAL SERVICES GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

WILLIAMS INDUSTRIAL SERVICES GROUP INC. AND SUBSIDIARIES

REVENUE BRIDGE ANALYSIS*

First Quarter 2020 Revenue Bridge

*Numbers may not sum due to rounding

WILLIAMS INDUSTRIAL SERVICES GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

WILLIAMS INDUSTRIAL SERVICES GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

WILLIAMS INDUSTRIAL SERVICES GROUP INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURE (UNAUDITED)

This press release contains financial measures not derived in accordance with accounting principles generally accepted in the United States (“GAAP”). A reconciliation to the most comparable GAAP measure is provided below.

ADJUSTED EBITDA-CONTINUING OPERATIONS

NOTE 1 — Non-GAAP Financial Measures

Adjusted EBITDA

Adjusted EBITDA is not calculated through the application of GAAP and is not the required form of disclosure by the U.S. Securities and Exchange Commission. Adjusted EBITDA is the sum of our net income (loss) before interest expense, net, and income tax (benefit) expense and unusual gains or charges. It also excludes non-cash charges such as depreciation and amortization. The Company’s management believes adjusted EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare the performance of its core operations from period to period by removing the impact of the capital structure (interest), tangible and intangible asset base (depreciation and amortization), taxes and unusual gains or charges (stock-based compensation, severance costs, other estimated non-recurring expenses, franchise taxes, consulting expenses, bank restructuring costs, foreign currency gain, restructuring charges, asset disposition charges and restatement expenses), which are not always commensurate with the reporting period in which such items are included. Williams’ credit facility also contains ratios based on EBITDA. Adjusted EBITDA should not be considered an alternative to net income or as a better measure of liquidity than net cash flows from operating activities, as determined by GAAP, and, therefore, should not be used in isolation from, but in conjunction with, the GAAP measures. The use of any non-GAAP measure may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies.

Note Regarding Forward-Looking Non-GAAP Financial Measures

The Company does not provide a reconciliation of forward-looking non-GAAP financial measures to their comparable GAAP financial measures because it could not do so without unreasonable effort due to the unavailability of the information needed to calculate reconciling items and due to the variability, complexity and limited visibility of the adjusting items that would be excluded from the non-GAAP financial measures in future periods. When planning, forecasting and analyzing future periods, the Company does so primarily on a non-GAAP basis without preparing a GAAP analysis.