For
the Quarterly Period Ended
|
March
31, 2007
|
|
Commission
file number
|
0-10786
|
|
Insituform
Technologies, Inc.
|
(Exact
name of registrant as specified in its
charter)
|
Delaware
|
13-3032158
|
|
(State
or other jurisdiction of incorporation
or organization)
|
(I.R.S.
Employer Identification No.)
|
17988
Edison Avenue, Chesterfield, Missouri 63005-1195
|
(Address
of Principal Executive Offices)
|
(636)
530-8000
|
(Registrant’s
telephone number, including area
code)
|
Class
|
Outstanding
at April 25, 2007
|
|
Class
A Common Stock, $.01 par value
|
27,276,998
|
Page
No.
|
||||
Part
I
|
Financial
Information:
|
|||
|
||||
Item
1.
|
|
|||
|
||||
|
3 |
|
||
|
||||
4 |
|
|||
|
||||
5 | ||||
6 | ||||
Item
2.
|
19 | |||
Item
3.
|
28 | |||
Item
4.
|
29
|
|||
|
||||
Part
II
|
Other
Information:
|
|||
Item
1.
|
30 | |||
Item 1A. | 30 | |||
Item
4.
|
31
|
|||
Item
6.
|
32 | |||
33
|
||||
34
|
For
the Three Months
Ended
March 31,
|
|||||||
2007
|
2006
|
||||||
Revenues
|
$
|
130,948
|
$
|
143,564
|
|||
Cost
of revenues
|
110,378
|
114,899
|
|||||
Gross
profit
|
20,570
|
28,665
|
|||||
Operating
expenses
|
25,228
|
22,887
|
|||||
Costs
of closure of tunneling business
|
16,843
|
─
|
|||||
Operating
(loss) income
|
(21,501
|
)
|
5,778
|
||||
Other
(expense) income:
|
|||||||
Interest
expense
|
(1,493
|
)
|
(1,809
|
)
|
|||
Interest
income
|
949
|
518
|
|||||
Other
|
741
|
133
|
|||||
Total
other income (expense)
|
197
|
(1,158
|
)
|
||||
(Loss)
income before (tax benefit) taxes on income
|
(21,304
|
)
|
4,620
|
||||
(Tax
benefit) taxes on income
|
(6,382
|
)
|
1,594
|
||||
(Loss)
income before minority interest and equity in
earnings
|
(14,922
|
)
|
3,026
|
||||
Minority
interests
|
(48
|
)
|
(27
|
)
|
|||
Equity
in (losses) earnings of affiliated companies
|
(306
|
)
|
35
|
||||
Net
(loss) income
|
$
|
(15,276
|
)
|
$
|
3,034
|
||
|
|||||||
Basic
(loss) earnings per share
|
$
|
(0.56
|
)
|
$
|
0.11
|
||
Diluted
(loss) earnings per share
|
$
|
(0.56
|
)
|
$
|
0.11
|
March
31,
2007
|
December
31,
2006
|
||||||
Assets
|
|||||||
Current
Assets
|
|||||||
Cash
and cash equivalents
|
$
|
79,676
|
$
|
96,393
|
|||
Restricted
cash
|
1,288
|
934
|
|||||
Receivables,
net
|
85,090
|
90,678
|
|||||
Retainage
|
33,247
|
37,193
|
|||||
Costs
and estimated earnings in excess of billings
|
48,896
|
41,512
|
|||||
Inventories
|
18,108
|
17,665
|
|||||
Prepaid
expenses and other assets
|
29,388
|
25,989
|
|||||
Total
current assets
|
295,693
|
310,364
|
|||||
Property,
plant and equipment,
less accumulated depreciation
|
90,354
|
90,453
|
|||||
Other
assets
|
|||||||
Goodwill
|
122,620
|
131,540
|
|||||
Other
assets
|
19,137
|
17,712
|
|||||
Total
other assets
|
141,757
|
149,252
|
|||||
Total
Assets
|
$
|
527,804
|
$
|
550,069
|
|||
Liabilities
and Stockholders’ Equity
|
|||||||
Current
liabilities
|
|||||||
Current
maturities of long-term debt and notes payable
|
$
|
5,376
|
$
|
16,814
|
|||
Accounts
payable and accrued expenses
|
105,631
|
107,320
|
|||||
Billings
in excess of costs and estimated earnings
|
14,059
|
12,371
|
|||||
Total
current liabilities
|
125,066
|
136,505
|
|||||
Long-term
debt,
less current maturities
|
65,043
|
65,046
|
|||||
Other
liabilities
|
8,394
|
7,726
|
|||||
Total
liabilities
|
198,503
|
209,277
|
|||||
Minority
interests
|
2,235
|
2,181
|
|||||
Commitments
and contingencies (Note 9)
|
-
|
-
|
|||||
Stockholders’
equity
|
|||||||
Preferred
stock, undesignated, $.10 par - shares authorized 2,000,000; none
outstanding
|
-
|
-
|
|||||
Common
stock, $.01 par - shares authorized 60,000,000; shares issued 27,276,998
and 29,597,044; shares outstanding 27,276,998 and 27,239,580
|
273 | 296 | |||||
Additional
paid-in capital
|
100,577
|
149,802
|
|||||
Retained
earnings
|
221,157
|
236,763
|
|||||
Treasury
stock - at cost, shares outstanding 0 and 2,357,464
|
-
|
(51,596
|
)
|
||||
Accumulated
other comprehensive income
|
5,059
|
3,346
|
|||||
Total
stockholders’ equity
|
327,066
|
338,611
|
|||||
Total
Liabilities and Stockholders’ Equity
|
$
|
527,804
|
$
|
550,069
|
For
the Three Months
Ended
March 31,
|
|||||||
2007
|
2006
|
||||||
Cash
flows from operating activities:
|
|||||||
Net
(loss) income
|
$
|
(15,276
|
)
|
$
|
3,034
|
||
Adjustments
to reconcile to net cash (used in) provided by operating
activities:
|
|||||||
Depreciation
|
4,997
|
5,059
|
|||||
Amortization
|
217
|
307
|
|||||
Deferred
income taxes
|
(5,698
|
)
|
(575
|
)
|
|||
Equity-based
compensation expense
|
1,664
|
1,420
|
|||||
Non-cash
charges associated with closure of tunneling business
|
11,955
|
─
|
|||||
Tax
benefits related to stock option exercises
|
(45
|
)
|
(625
|
)
|
|||
Other
|
(310
|
)
|
2,277
|
||||
Change
in restricted cash related to operating activities
|
(354
|
)
|
(925
|
)
|
|||
Changes
in operating assets and liabilities:
|
|||||||
Receivables
net, retainage and costs and estimated earnings in excess of
billings
|
2,557
|
(6,030
|
)
|
||||
Inventories
|
(391
|
)
|
(3,451
|
)
|
|||
Prepaid
expenses and other assets
|
(1,978
|
)
|
832
|
||||
Accounts
payable and accrued expenses
|
(768
|
)
|
951
|
||||
Net
cash (used in) provided by operating activities
|
(3,430
|
)
|
2,274
|
||||
Cash
flows from investing activities:
|
|||||||
Capital
expenditures
|
(4,546
|
)
|
(3,383
|
)
|
|||
Proceeds
from sale of fixed assets
|
179
|
250
|
|||||
Liquidation
of life insurance cash surrender value
|
─
|
1,423
|
|||||
Net
cash used in investing activities
|
(4,367
|
)
|
(1,710
|
)
|
|||
Cash
flows from financing activities:
|
|||||||
Proceeds
from issuance of common stock
|
637
|
3,012
|
|||||
Additional
tax benefit from stock option exercises recorded in additional
paid-in
capital
|
45
|
625
|
|||||
Principal
payments on long-term debt
|
(15,713
|
)
|
(15,726
|
)
|
|||
Principal
payments on notes payable
|
(727
|
)
|
(1,606
|
)
|
|||
Proceeds
on line of credit
|
5,000
|
─
|
|||||
Deferred
financing charges paid
|
─
|
(103
|
)
|
||||
Net
cash used in financing activities
|
(10,758
|
)
|
(13,798
|
)
|
|||
Effects
of exchange rate changes on cash
|
1,838
|
313
|
|||||
Net
decrease in cash and cash equivalents for the
period
|
(16,717
|
)
|
(12,921
|
)
|
|||
Cash
and cash equivalents, beginning of period
|
96,393
|
77,069
|
|||||
Cash
and cash equivalents, end of period
|
$
|
79,676
|
$
|
64,148
|
|||
Supplemental
disclosures of cash flow information:
|
|||||||
Cash
paid for:
|
|||||||
Interest
|
$
|
698
|
$
|
1,418
|
|||
Income
taxes, net
|
1,800
|
1,796
|
1.
|
GENERAL
|
2.
|
EQUITY-BASED
COMPENSATION
|
Shares
|
Weighted
Average
Grant
Date
Fair
Value
|
||||||
Outstanding
at December 31, 2006
|
131,500
|
$
|
17.73
|
||||
Granted
|
-
|
||||||
Vested
|
-
|
||||||
Forfeited
|
-
|
||||||
Outstanding
at March 31, 2007
|
131,500
|
$
|
17.73
|
Three
Months
Ended
March 31,
|
|||||||
2007
|
2006
|
||||||
Restricted
stock share expense
|
$
|
194
|
$
|
211
|
|||
Forfeitures
|
-
|
-
|
|||||
Restricted
stock share expense
|
194
|
211
|
|||||
Tax
benefit
|
(75
|
)
|
(82
|
)
|
|||
Net
expense
|
$
|
119
|
$
|
129
|
Weighted
|
|||||||
Average
|
|||||||
Restricted
|
Award Date
|
||||||
Stock
Units
|
Fair
Value
|
||||||
Outstanding
at December 31, 2006
|
-
|
$
|
-
|
||||
Awarded
|
50,830
|
25.60
|
|||||
Shares
distributed
|
-
|
-
|
|||||
Forfeited/Expired
|
-
|
-
|
|||||
Outstanding
at March 31, 2007
|
50,830
|
$
|
25.60
|
Three
Months Ended
|
|||||||
March
31,
|
|||||||
2007
|
2006
|
||||||
Restricted
stock unit expense
|
$
|
108
|
$
|
-
|
|||
Forfeitures
|
-
|
-
|
|||||
Restricted
stock unit expense
|
108
|
-
|
|||||
Tax
benefit
|
(
42
|
)
|
-
|
||||
Net
expense
|
$
|
66
|
$
|
-
|
Weighted
|
|||||||
Average
|
|||||||
Deferred
|
Award Date
|
||||||
Stock
Units
|
Fair
Value
|
||||||
Outstanding
at December 31, 2006
|
93,807
|
$
|
18.53
|
||||
Awarded
|
-
|
-
|
|||||
Shares
distributed
|
-
|
-
|
|||||
Forfeited/Expired
|
-
|
-
|
|||||
Outstanding
at March 31, 2007
|
93,807
|
$
|
18.53
|
Options
Outstanding
|
Options
Exercisable
|
|||||||||||||||||||||
Weighted
|
||||||||||||||||||||||
Average
|
Weighted
|
Weighted
|
||||||||||||||||||||
Remaining
|
Average
|
Aggregate
|
Average
|
Aggregate
|
||||||||||||||||||
Range
of
|
Number
|
Contractual
|
Exercise
|
Intrinsic
|
Number
|
Exercise
|
Intrinsic
|
|||||||||||||||
Exercise
Price
|
Outstanding
|
Term
(Yrs)
|
Price
|
Value
|
Exercisable
|
Price
|
Value
|
|||||||||||||||
$4.00
- $10.00
|
29,400
|
0.6
|
$
|
8.75
|
$
|
353,976
|
29,400
|
$
|
8.75
|
$
|
353,976
|
|||||||||||
$10.01
- $20.00
|
|
718,208
|
4.8
|
|
|
16.52
|
3,069,901
|
436,483
|
|
|
16.05
|
2,069,863
|
||||||||||
$20.00
and above
|
840,089
|
5.3
|
25.45
|
23,920
|
532,802
|
|
25.58
|
17,940
|
||||||||||||||
Total
Outstanding
|
1,587,697
|
5.0
|
$
|
21.10
|
$
|
3,447,797
|
998,685
|
$
|
20.92
|
$
|
2,441,779
|
Weighted
|
|||||||||||||
Weighted
|
Average
|
||||||||||||
Average
|
Remaining
|
Aggregate
|
|||||||||||
Exercise
|
Contractual
|
Intrinsic
|
|||||||||||
Shares
|
Price
|
Term
(Yrs)
|
Value
|
||||||||||
Outstanding
at December 31, 2006
|
1,298,392
|
$
|
19.85
|
||||||||||
Granted
|
338,455
|
25.60
|
|||||||||||
Exercised
|
(37,418
|
)
|
17.04
|
||||||||||
Forfeited/Expired
|
(11,732
|
)
|
22.67
|
||||||||||
Outstanding
at March 31, 2007
|
1,587,697
|
$
|
21.10
|
5.0
|
$
|
3,447,797
|
|||||||
Exercisable
at March 31, 2007
|
998,685
|
$
|
20.92
|
4.4
|
$
|
2,441,779
|
2007
|
||||
Volatility
|
45.0
|
%
|
||
Expected
term (years)
|
4.5
|
|||
Dividend
yield
|
0.0
|
%
|
||
Risk-free
rate
|
4.4
|
%
|
2006
|
||||
Volatility
|
41.7
|
%
|
||
Expected
term (years)
|
4.8
|
|||
Dividend
yield
|
0.0
|
%
|
||
Risk-free
rate
|
4.3
|
%
|
3.
|
COMPREHENSIVE
(LOSS) INCOME
|
4.
|
SHARE
INFORMATION
|
Three
Months Ended
March
31,
|
|||||||
2007
|
2006
|
||||||
Weighted
average number of common shares used for basic EPS
|
27,254,380
|
26,918,383
|
|||||
Effect
of dilutive stock options, restricted stock, restricted stock units
and
deferred stock units (Note
2)
|
─
|
428,263
|
|||||
Weighted
average number of common shares and dilutive potential common stock
used
in dilutive EPS
|
27,254,380
|
27,346,646
|
5.
|
INCOME
TAXES
|
6.
|
CLOSURE
OF TUNNELING BUSINESS
|
7.
|
SEGMENT
REPORTING
|
Three
Months Ended
March
31,
|
|||||||
2007
|
2006
|
||||||
Revenues:
|
|||||||
Rehabilitation
|
$
|
103,321
|
$
|
111,658
|
|||
Tunneling
|
15,966
|
19,384
|
|||||
Tite
Liner®
|
11,661
|
12,522
|
|||||
Total
revenues
|
$
|
130,948
|
$
|
143,564
|
|||
Gross
profit (loss):
|
|||||||
Rehabilitation
|
$
|
15,417
|
$
|
25,334
|
|||
Tunneling
|
187
|
(616
|
)
|
||||
Tite
Liner®
|
4,966
|
3,947
|
|||||
Total
gross profit
|
$
|
20,570
|
$
|
28,665
|
|||
Operating
(loss) income:
|
|
||||||
Rehabilitation
|
$
|
(6,120
|
)
|
$
|
6,460
|
||
Tunneling
|
(18,736
|
)(1)
|
(3,029
|
)
|
|||
Tite
Liner®
|
3,355
|
2,347
|
|||||
Total
operating (loss) income
|
|
$
|
(21,501
|
)(1)
|
$
|
5,778
|
(1)
|
Includes
$16.8 million of charges associated with the closure of the tunneling
business.
|
Three
Months Ended
March
31,
|
|||||||
2007
|
2006
|
||||||
Revenues:
|
|||||||
United
States
|
$
|
96,981
|
|
$
|
113,331
|
||
Canada
|
10,831
|
9,073
|
|||||
Europe
|
20,448
|
17,085
|
|||||
Other
foreign
|
2,688
|
4,075
|
|||||
Total
Revenues
|
$
|
130,948
|
|
$
|
143,564
|
||
|
|||||||
Gross
Profit:
|
|||||||
United
States
|
|
$
|
12,095
|
|
$
|
20,992
|
|
Canada
|
3,517
|
2,993
|
|||||
Europe
|
3,684
|
3,657
|
|||||
Other
foreign
|
1,274
|
1,023
|
|||||
Total
Gross Profit
|
|
$
|
20,570
|
|
$
|
28,665
|
|
Operating
(loss) income:
|
|||||||
United
States
|
$
|
(22,294
|
)(1)
|
$
|
4,235
|
||
Canada
|
1,524
|
1,617
|
|||||
Europe
|
(1,722
|
)
|
(703
|
)
|
|||
Other
foreign
|
991
|
629
|
|||||
Total
Operating (Loss) Income
|
$
|
(21,501
|
)(1)
|
$
|
5,778
|
(1)
|
Includes
$16.8 million of charges associated with the closure of the tunneling
business.
|
8.
|
ACQUIRED
INTANGIBLE ASSETS
|
As
of March 31, 2007
|
||||||||||
Gross
Carrying Amount
|
Accumulated
Amortization
|
Net
Carrying Amount
|
||||||||
Amortized
intangible assets:
|
||||||||||
License
agreements
|
$
|
3,894
|
$
|
(1,853
|
)
|
$
|
2,041
|
|||
Customer
relationships
|
1,797
|
(421
|
)
|
1,376
|
||||||
Patents
and trademarks
|
16,126
|
(13,365
|
)
|
2,761
|
||||||
Non-compete
agreements
|
313
|
(313
|
)
|
─
|
||||||
Total
|
$
|
22,130
|
$
|
(15,952
|
)
|
$
|
6,178
|
As
of December 31, 2006
|
||||||||||
Gross
Carrying Amount
|
Accumulated
Amortization
|
Net
Carrying Amount
|
||||||||
Amortized
intangible assets:
|
||||||||||
License
agreements
|
$
|
3,894
|
$
|
(1,813
|
)
|
$
|
2,081
|
|||
Customer
relationships
|
1,797
|
(391
|
)
|
1,406
|
||||||
Patents
and trademarks
|
16,048
|
(13,283
|
)
|
2,765
|
||||||
Non-compete
agreements
|
3,252
|
(3,056
|
)
|
196
|
||||||
Total
|
$
|
24,991
|
$
|
(18,543
|
)
|
$
|
6,448
|
Quarter
Ended March 31,
|
|||||||
2007
|
2006
|
||||||
Aggregate
amortization expense
|
$
|
217
|
$
|
307
|
|||
Estimated
amortization expense:
|
|||||||
For
year ending December 31, 2007
|
$
|
733
|
|||||
For
year ending December 31, 2008
|
578
|
||||||
For
year ending December 31, 2009
|
283
|
||||||
For
year ending December 31, 2010
|
283
|
||||||
For
year ending December 31, 2011
|
283
|
9.
|
COMMITMENTS
AND CONTINGENCIES
|
Documented
Remediation
Costs
|
Pre-judgment
Interest
|
Total
|
||||||||
(in
thousands)
|
||||||||||
Claim
recorded June 30, 2005
|
$
|
5,872
|
$
|
275
|
$
|
6,147
|
||||
Interest
recorded July through December 31, 2005
|
-
|
165
|
165
|
|||||||
Additional
documented remediation costs recorded in the second quarter of
2006
|
526
|
-
|
526
|
|||||||
Interest
recorded in 2006 and 2007
|
-
|
949
|
949
|
|||||||
Claim
receivable balance, March 31, 2007
|
$
|
6,398
|
$
|
1,389
|
$
|
7,787
|
10.
|
FINANCINGS
|
11.
|
NEW
ACCOUNTING PRONOUNCEMENTS
|
ITEM
2.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
Quarter
Ended March 31, 2007
|
|||||||||||||||||||
Segment
|
Revenues
|
Gross
Profit
|
Gross
Profit Margin
|
Operating
Expense
(1)
|
Operating
Income (Loss)(1)
|
Operating
Income (Loss) Percentage
|
|||||||||||||
Rehabilitation
|
$
|
103,321
|
$
|
15,417
|
14.9
|
%
|
$
|
21,537
|
$
|
(6,120
|
)
|
-5.9
|
%
|
||||||
Tunneling
|
15,966
|
187
|
1.2
|
18,923
|
(18,736
|
)
|
-117.3
|
||||||||||||
Tite
Liner®
|
11,661
|
4,966
|
42.6
|
1,611
|
3,355
|
28.8
|
|||||||||||||
TOTAL
|
$
|
130,948
|
$
|
20,570
|
15.7
|
%
|
$
|
42,071
|
$
|
(21,501
|
)
|
-16.4
|
%
|
Quarter
Ended March 31, 2006
|
|||||||||||||||||||
Segment
|
Revenues
|
Gross
Profit (Loss)
|
Gross
Profit (Loss) Margin
|
Operating
Expense
|
Operating
Income (Loss)
|
Operating
Income (Loss) Percentage
|
|||||||||||||
Rehabilitation
|
$
|
111,658
|
$
|
25,334
|
22.7
|
%
|
$
|
18,874
|
$
|
6,460
|
5.8
|
%
|
|||||||
Tunneling
|
19,384
|
(616
|
)
|
-3.2
|
2,413
|
(3,029
|
)
|
-15.6
|
|||||||||||
Tite
Liner®
|
12,522
|
3,947
|
31.5
|
1,600
|
2,347
|
18.7
|
|||||||||||||
TOTAL
|
$
|
143,564
|
$
|
28,665
|
20.0
|
%
|
$
|
22,887
|
$
|
5,778
|
4.0
|
%
|
(1)
|
Consolidated
and tunneling operating expenses for the quarter ended March 31, 2007
include $16.8 million in charges associated with the closure of our
tunneling business.
|
Quarter
Ended
|
|||||||
March
31, 2007 vs. 2006
|
|||||||
Total
|
Percentage
|
||||||
Increase
|
Increase
|
||||||
(Decrease)
|
(Decrease)
|
||||||
All
Segments
|
|||||||
Revenues
|
$
|
(12,616
|
)
|
-8.8
|
%
|
||
Gross
profit
|
(8,095
|
)
|
-28.2
|
||||
Operating
expenses
(1)
|
19,184
|
83.8
|
|||||
Operating income
(1)
|
(27,279
|
)
|
-472.1
|
||||
Rehabilitation
|
|||||||
Revenues
|
(8,337
|
)
|
-7.5
|
||||
Gross
profit
|
(9,917
|
)
|
-39.1
|
||||
Operating
expenses
|
2,663
|
14.1
|
|||||
Operating
income
|
(12,580
|
)
|
-194.7
|
||||
Tunneling
|
|||||||
Revenues
|
(3,418
|
)
|
-17.6
|
||||
Gross
profit
|
803
|
130.4
|
|||||
Operating
expenses
|
(333
|
)
|
-13.8
|
||||
Costs
of closure of tunneling
business
|
16,843
|
N/A
|
|||||
Operating
income (1)
|
(15,707
|
)
|
-518.5
|
||||
Tite
Liner®
|
|||||||
Revenues
|
(861
|
)
|
-6.9
|
||||
Gross
profit
|
1,019
|
25.8
|
|||||
Operating
expenses
|
11
|
0.6
|
|||||
Operating
income
|
1,008
|
42.9
|
|||||
Interest
Expense and Taxes
|
|||||||
Interest
expense
|
(316
|
)
|
(17.5
|
)
|
|||
Taxes
on income
|
(7,976
|
)
|
(500.5
|
)
|
(1)
|
Consolidated
and tunneling operating expenses for the quarter ended March 31,
2007
include $16.8 million in charges associated with the closure of our
tunneling business.
|
Quarter
Ended
|
Quarter
Ended
|
||||||
March
31, 2007
|
March
31, 2006
|
||||||
Operating
loss, as reported
|
($18,736
|
)
|
($
3,029
|
)
|
|||
Costs
of closure of tunneling business
|
16,843
|
─
|
|||||
Operating
loss, less tunneling closure costs
|
($
1,893
|
)
|
($
3,029
|
)
|
Three
Months Ended
March
31, 2007 vs. 2006
|
||||
Total
Increase
(Decrease)
|
||||
Debt
principal amortization - Series A Notes
|
$
|
(349
|
)
|
|
Interest
on short-term borrowings and other
|
33
|
|||
Total
decrease in interest expense
|
$
|
(316
|
)
|
Backlog
|
March 31,
2007
|
December 31,
2006
|
September 30,
2006
|
June 30,
2006
|
March 31,
2006
|
|||||||||||
(in
millions)
|
||||||||||||||||
Rehabilitation
|
$
|
187.2
|
$
|
201.7
|
$
|
201.2
|
$
|
186.8
|
$
|
216.2
|
||||||
Tunneling
|
60.6
|
75.7
|
80.7
|
70.1
|
50.2
|
|||||||||||
Tite
Liner®
|
14.5
|
12.8
|
13.2
|
15.6
|
20.1
|
|||||||||||
Total
|
$
|
262.3
|
$
|
290.2
|
$
|
295.1
|
$
|
272.5
|
$
|
286.5
|
March
31, 2007
|
December
31, 2006
|
||||||
(in
thousands)
|
|||||||
Cash
and cash equivalents
|
$
|
79,676
|
$
|
96,393
|
|||
Cash
restricted - in escrow
|
1,288
|
934
|
Payments
Due by Period
|
||||||||||||||||||||||
Cash
Obligations(1)(3)
|
Total
|
2007
|
2008
|
2009
|
2010
|
2011
|
Thereafter
|
|||||||||||||||
Long-term
debt
|
$
|
65,056
|
12
|
15
|
16
|
13
|
-
|
$
|
65,000
|
|||||||||||||
Interest
on long-term debt
|
26,579
|
3,193
|
4,254
|
4,253
|
4,251
|
4,251
|
6,377
|
|||||||||||||||
Line
of credit facility(2)
|
5,000
|
5,000
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Operating
leases
|
34,618
|
10,153
|
10,790
|
7,992
|
2,855
|
1,235
|
1,593
|
|||||||||||||||
Total
contractual cash obligations
|
$
|
131,253
|
$
|
18,358
|
$
|
15,059
|
$
|
12,261
|
$
|
7,119
|
$
|
5,486
|
$
|
72,970
|
||||||||
(1)
|
Cash
obligations are not discounted. See Notes 9 and 10 to the consolidated
financial statements contained in this report regarding commitments
and
contingencies and financings,
respectively.
|
(2) |
A
resin supply contract with one of our vendors is excluded from
this table.
See “Market Risk - Commodity Risk” under Item 3 of this report for further
discussion.
|
(3)
|
As
of March 31, 2007, $5.0 million was borrowed on the $35.0 million
credit
facility with an interest rate of 8.25%. The available balance
was $14.1
million, and the commitment fee was .175%. The remaining $15.9
million was
used for non-interest bearing letters of credit, $14.5 million
of which
were collateral for insurance, $1.0 million for work performance
and $0.4
million for import of raw
materials.
|
ITEM
3.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
|
ITEM
4.
|
CONTROLS
AND PROCEDURES
|
ITEM
1.
|
LEGAL
PROCEEDINGS
|
ITEM
1A.
|
RISK
FACTORS
|
ITEM
4.
|
SUBMISSION
OF MATTERS TO A VOTE OF SECURITY
HOLDERS
|
1.
|
Election
of eight directors, each to serve a one-year term or until his
or her
successor has been elected and
qualified:
|
Name
|
For
|
Withheld
|
||
Stephen
P. Cortinovis
|
21,015,148
|
101,130
|
||
Stephanie
A. Cuskley
|
21,013,898
|
102,380
|
||
John
P. Dubinsky
|
19,213,233
|
1,903,045
|
||
Juanita
H. Hinshaw
|
20,435,800
|
680,478
|
||
Alfred
T. McNeill
|
21,014,248
|
102,030
|
||
Thomas
S. Rooney, Jr.
|
21,013,816
|
102,462
|
||
Sheldon
Weinig
|
20,778,780
|
337,498
|
||
Alfred
L. Woods
|
21,014,447
|
101,831
|
2.
|
Approval
of the Insituform Technologies, Inc. Employee Stock Purchase
Plan.
|
For
|
Against
|
Abstain
|
Broker
Non-Votes
|
|||
16,174,069
|
101,894
|
22,643
|
4,817,672
|
3.
|
Ratification
of the appointment of PricewaterhouseCoopers LLP as independent
auditors
for the fiscal year ending December 31,
2007:
|
For
|
Against
|
Abstain
|
Broker
Non-Votes
|
|||
21,034,254
|
64,596
|
17,428
|
0
|
ITEM
6.
|
EXHIBITS
|
INSITUFORM
TECHNOLOGIES, INC.
|
|||
May
1, 2007
|
/s/
David A. Martin
|
||
David
A. Martin
|
|||
Vice
President and Controller
|
|||
Principal
Financial and Accounting Officer
|
These
exhibits are numbered in accordance with the Exhibit Table of Item
601 of
Regulation S-K.
|
3.1
|
Restated
Certificate of Incorporation of the Company, as amended through
April 27,
2005, filed herewith.
|
3.2
|
Certificate
of Designation, Preferences and Rights of Series A Junior Participating
Preferred Stock (incorporated by reference to Exhibit 3.1 to the
Company’s
Annual
Report on Form 10-K for the year ended December 31,
2001).
|
3.3
|
Amended
and Restated By-Laws of the Company, as amended through July
25, 2006
(incorporated by reference to Exhibit 3.1 to the current report on
Form 8-K dated and filed July 27, 2006).
|
31.1
|
Certification
of Thomas S. Rooney, Jr. pursuant to Section 302 of the Sarbanes-Oxley
Act
of 2002, filed herewith.
|
31.2
|
Certification
of David A. Martin pursuant to Section 302 of the Sarbanes-Oxley
Act of
2002, filed herewith.
|
32.1
|
Certification
of Thomas S. Rooney, Jr. pursuant to 18 U.S.C. Section 1350, as
adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed
herewith.
|
32.2
|
Certification
of David A. Martin pursuant to 18 U.S.C. Section 1350, as adopted
pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002, filed
herewith.
|