·	Income from continuing operations was $7.7 million, a 98 percent increase from second quarter 2008 of $3.9 million

·	Income from continuing operations on a per diluted share basis was $0.20 as compared to $0.14 in the second quarter of 2008, with approximately 10.4 million additional shares issued in connection with 2009 acquisitions

·	Second quarter net income of $6.5 million ($0.17 per share) versus $3.4 million ($0.12 per share) a year ago, representing a 93 percent improvement

·	North American Sewer Rehabilitation contract backlog reached a record level and increased 28.9 percent from first quarter 2009 with consolidated contract backlog increasing to $462.4 million, a 19 percent increase from first quarter 2009

·	Full year 2009 expectation, reflecting recent acquisitions, in line with previous guidance, at $1.00 to $1.10 per diluted share (excluding acquisition related transaction and severance costs)

Second quarter net income was $6.5 million, or $0.17 per diluted share.  This compares to $3.4 million, or $0.12 per diluted share, for the second quarter of 2008.  For the first six months of 2009, net income was $5.3 million, or $0.15 per diluted share, compared to income of $5.3 million, or $0.19 per diluted share, in the first six months of 2008.  Excluding the acquisition transaction and severance costs of $8.2 million (pre-tax), net income would have been $11.4 million, or $0.31 per diluted share (non-GAAP).

Energy and Mining contract backlog was $146.1 million at June 30, 2009 compared to $153.2 million at March 31, 2009.  Contract backlog for UPS increased by $0.5 million at June 30, 2009 from March 31, 2009.  We believe that a modest rise in commodity prices will result in significant opportunities for the United Pipeline Systems during the second half of the year, particularly in new growth areas, such as Mexico and the Middle East.  Contract backlog for Bayou was $66.8 million at June 30, 2009, which was down from $76.7 million at March 31, 2009.  At June 30, 2008, Bayou’s contract backlog was approximately $46.6 million.  Corrpro’s contract backlog at June 30, 2009 was $64.5 million, up from $62.2 million at March 31, 2009, and slightly down from $69.4 million at June 30, 2008.  The backlog numbers for Bayou and Corrpro as of June 30, 2008 are not included in our Energy and Mining contract backlog as of such date as we did not own the companies at that date.  The business environment for both operations is below that of 2008 levels, but has improved over conditions which existed earlier in the year.

		For the Three Months Ended June 30,								For the Six Months Ended June 30,
		2009				2008				2009				2008
Revenues			$            183,196				$             135,585				$            311,208				$          261,512
Cost of revenues			135,280				104,455				232,619				203,496
Gross profit			47,916				31,130				78,589				58,016
Acquisition related costs			–				–				8,219				–
Operating expenses			34,446				24,914				56,821				48,546
Operating income			13,470				6,216				13,549				9,470
Other income (expense):
Interest income			(165	)			739				184				1,587
Interest expense			(2,353	)			(1,158	)			(3,477	)			(2,385	)
Other			374				237				292				1,005
Total other income (expense)			(2,144	)			(182	)			(3,001	)			207
Income before taxes on income			11,326				6,034				10,548				9,677
Taxes on income			3,157				1,732				2,745				2,806
Income before equity in earnings (losses) of affiliated   companies			8,169				4,302				7,803				6,871
Equity in earnings (losses) of affiliated companies,     net of tax			8				(211	)			(307	)			(594	)
Income before discontinued operations			8,177				4,091				7,496				6,277
Loss from discontinued operations, net of tax			(1,192	)			(516	)			(1,290	)			(603	)
Net income			6,985				3,575				6,206				5,674
Less:  net income attributable to noncontrolling   interests			439				177				864				333
Net income attributable to common stockholders			$                6,546				$                 3,398				$                5,342				$              5,341
Earnings (loss) per share:
Basic:
Income from continuing operations			$                  0.20				$                   0.14				$                  0.18				$                0.21
Loss from discontinued operations			(0.03	)			(0.02	)			(0.03	)			(0.02	)
Net income			$                  0.17				$                   0.12				$                  0.15				$                0.19
Diluted:
Income from continuing operations			$                  0.20				$                   0.14				$                  0.18				$                0.21
Loss from discontinued operations			(0.03	)			(0.02	)			(0.03	)			(0.02	)
Net income			$                  0.17				$                   0.12				$                  0.15				$                0.19

		Three Months Ended June 30,								Six Months Ended June 30,
		2009				2008				2009				2008
Revenues:
North American Sewer Rehabilitation			$           83,687				$           87,095				$           164,192				$           168,149
European Sewer Rehabilitation			20,708				26,647				38,915				52,257
Asia-Pacific Sewer Rehabilitation			6,597				2,152				12,342				3,691
Water Rehabilitation			2,493				1,949				4,451				3,821
Energy and Mining			69,711				17,742				91,308				33,594
Total revenues			$         183,196				$         135,585				$           311,208				$           261,512
Gross profit (loss):
North American Sewer Rehabilitation			$           22,383				$           19,830				$             40,832				$             36,219
European Sewer Rehabilitation			5,644				5,276				10,142				9,996
Asia-Pacific Sewer Rehabilitation			1,714				604				3,768				1,085
Water Rehabilitation			(80	)			368				(254	)			429
Energy and Mining			18,255				5,052				24,101				10,287
Total gross profit			$           47,916				$           31,130				$             78,589				$             58,016
Operating income (loss):
North American Sewer Rehabilitation			$             9,701				$             3,930				$             15,520				$               5,162
European Sewer Rehabilitation			1,168				(487	)			1,025				(1,437	)
Asia-Pacific Sewer Rehabilitation			532				179				1,794				349
Water Rehabilitation			(807	)			(677	)			(2,036	)			(1,260	)
Energy and Mining			2,876				3,271				(2,754	)			6,656
Total operating income			$           13,470				$             6,216				$             13,549				$               9,470

		Six Months Ended June 30, 2009
		Consolidated  Results				Acquisition and        Severance   Costs				Results    Excluding    Acquisitions Costs				Six Months     Ended June 30, 2008
Revenues			$           311,208				$                  –				$        311,208				$          261,512
Cost of revenues			232,619				–				232,619				203,496
Gross profit			78,589				–				78,589				58,016
Operating expenses			65,040				(8,219	)			56,821				48,546
Operating income			13,549				8,219				21,768				9,470
Other income (expense):
Interest expense			(3,477	)			–				(3,477	)			(2,385	)
Interest income			184				–				184				1,587
Other			292				–				292				1,005
Total other income (expense)			(3,001	)			–				(3,001	)			207
Income before taxes on income			10,548				8,219				18,767				9,677
Taxes on income			2,745				2,160				4,905				2,806
Income before equity in losses of   affiliated companies			7,803				6,059				13,862				6,871
Equity in losses of affiliated      companies			(307	)			–				(307	)			(594	)
Income before discontinued   operations			7,496				6,059				13,555				6,277
Loss from discontinued operations,   net of tax			(1,290	)			–				(1,290	)			(603	)
Net income			6,206				6,059				12,265				5,674
Less income attributable to   noncontrolling interests			864				–				864				333
Net income attributable to Insituform   Technologies, Inc. common   stockholders			$               5,342				$            6,059				$          11,401				$              5,341
Earnings (loss) per share:
Basic:
Income from continuing   operations			$                 0.18								$              0.35				$                0.21
Loss from discontinued operations			(0.03	)							(0.03	)			(0.02	)
Net income			$                 0.15								$              0.32				$                  .19
Diluted:
Income from continuing operations			$                 0.18								$              0.34				$                0.21
Loss from discontinued operations			(0.03	)							(0.03	)			(0.02	)
Net income			$                 0.15								$              0.31				$                0.19
Weighted average number of shares:
Basic			35,741,858								35,741,858				27,521,807
Diluted			36,422,228								36,422,228				28,122,209

 

(1)	Contract backlog for our Asia-Pacific Sewer Rehabilitation segment at June 30, 2009 includes backlog of our recently acquired interest in our joint ventures of IAL and IPPL.

(2)	Contract backlog for our Energy and Mining segment at June 30, 2009 and March 31, 2009 includes backlog of our recently acquired Bayou and Corrpro businesses of $66.8 million and $64.5 million, respectively, at June 30, 2009 and $76.7 million and $62.2 million, respectively, as of March 31, 2009.

 

		June 30, 2009				December 31, 2008
Assets
Current assets
Cash and cash equivalents			$            79,457				$           99,321
Restricted cash			1,421				1,829
Receivables, net			129,229				97,257
Retainage			19,044				21,380
Costs and estimated earnings in excess of billings			60,624				37,224
Inventories			32,727				16,320
Prepaid expenses and other assets			31,324				37,637
Current assets of discontinued operations			9,004				13,704
Total current assets			362,830				324,672
Property, plant and equipment, less accumulated depreciation			140,128				71,423
Other assets
Goodwill			188,443				122,961
Identified intangible assets, less accumulated amortization			80,448				10,353
Investments in affiliated companies			27,965				6,769
Other assets			19,307				7,285
Total other assets			316,163				147,368
Non-current assets of discontinued operations			5,357				5,843
Total Assets			$          824,478				$         549,306
Liabilities and Equity
Current liabilities
Accounts payable and accrued expenses			$          129,493				$           97,593
Billings in excess of costs and estimated earnings			7,553				9,596
Current maturities of long-term debt and line of credit			17,500				–
Notes payable			3,880				938
Current liabilities of discontinued operations			1,402				1,541
Total current liabilities			159,828				109,668
Long-term debt, less current maturities			102,500				65,000
Other liabilities			50,802				2,831
Non-current liabilities of discontinued operations			509				818
Total liabilities			313,639				178,317
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 and outstanding     38,830,853 and 27,977,785, respectively			388				280
Additional paid-in capital			240,529				109,235
Retained earnings			265,958				260,616
Accumulated other comprehensive loss			(159	)			(2,154	)
Total stockholders’ equity before noncontrolling interests			506,716				367,977
Noncontrolling interests			4,123				3,012
Total equity			510,839				370,989
Total Liabilities and Equity			$          824,478				$         549,306