• risks and liabilities from our acquisitions, some of which may not be discovered during the preacquisition due diligence process; 

• a disruption of our ongoing business or an inability of our ongoing business to receive sufficient management attention; and 

• a failure to realize the cost savings or other financial benefits we anticipated prior to acquisition. 

Future acquisitions may require us to obtain additional equity or debt financing, which may not be available on current attractive market terms. 

## Our use of over time revenue accounting in the Energy Segment could result in a reduction or elimination of previously reported profits. 

As discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations-Critical Accounting Policies and Estimates” and in the notes to our consolidated financial statements, a portion of our revenues is recognized over time. Over time revenue recognition causes us to recognize contract revenues and earnings ratably over the contract term in proportion to our incurrence of contract costs. The earnings or losses recognized on individual contracts are based on estimates of contract revenues, costs and profitability. Contract losses are recognized in full when determined, and contract profit estimates are adjusted based on ongoing reviews of contract profitability. Actual collection of contract amounts or change orders could differ from original estimated amounts and could result in a reduction or elimination of previously recognized earnings. In certain circumstances, it is possible that such adjustments could be significant. 

## We may not be able to fully realize the revenue value reported in our backlog for our Energy Segment. 

We have a backlog of work in our Energy Segment. Orders included in our backlog are represented by customer purchase orders and contracts, which we believe to be firm. Backlog develops as a result of new business secured, which represents the revenue value of new project commitments received by us during a given period. Backlog consists of projects which have either (1) not been started or (2) are in progress and are not yet complete. In the latter case, the revenue value reported in backlog is the remaining value associated with work that has not yet been completed. From time to time, projects that were recorded as new business are cancelled. In the event of a project cancellation, we may be reimbursed for certain costs but typically have no contractual right to the total revenue reflected in our backlog. In addition to being unable to recover certain direct costs, we may also incur additional costs resulting from underutilized assets if projects are cancelled. 

## Our operating results may vary significantly from quarter to quarter. 

Our quarterly results may be materially and adversely affected by: 

• the timing and volume of work under new agreements; 

• general economic conditions; 

• the budgetary spending patterns of customers; 

• variations in the margins of projects performed during any particular quarter; 

• losses experienced in our operations not otherwise covered by insurance; 

• a change in the demand or production of our products and our services caused by severe weather conditions; 

• a change in the mix of our customers, contracts and business; 

• a change in customer delivery schedule; 

• increases in design and manufacturing costs; and 

• abilities of customers to pay their invoices owed to us. 

Accordingly, our operating results in any particular quarter may not be indicative of the results expected for any other quarter or for the entire year. 

## We may be unsuccessful at generating internal growth. 

Our ability to generate internal growth will be affected by, among other factors, our ability to: 

• attract new customers, internationally and domestically; 

• integrate regulatory changes; 

• increase the number or size of projects performed for existing customers; 

• hire and retain employees; and 

• increase volume utilizing our existing facilities. 

