CHICAGO BRIDGE & IRON COMPANY N.V. 
By THE WOODLANDS, Texas, April 23, 2014 /PRNewswire/ -- CB&I (NYSE: CBI) today reported adjusted net income for the first quarter of $94.4 million, or $0.87 per diluted share, excluding integration related costs of $8.1 million, or $0.05 per diluted share. First quarter GAAP net income was $89.0 million, or $0.82 per diluted share. Revenue for the first quarter was $2.9 billion, up from $2.3 billion, or 30 percent, over the comparable period. First quarter new awards totaled $5.8 billion, which resulted in a backlog of $30.7 billion.
"Over the past two quarters, CB&I has booked more than $11 billion in new awards, which includes $5.8 billion in the current quarter," said Philip K. Asherman, President and Chief Executive Officer. "These awards are diverse in size, value and geography and reflect our ability to continue to capitalize on our global end markets across each of our operating groups. Noteworthy awards in the quarter included Sempra's Cameron LNG facility; structural, mechanical and piping construction work for Chevron's Wheatstone LNG facility; FEED and ethylene technology for ORPIC's Liwa Plastics project; engineering and project management services for the development of the South Caucasus Pipeline Expansion; engineering and procurement of desulfurization units for the Mina Abdullah refinery; nuclear facility modifications; environmental monitoring; decommissioning and dismantlement of a nuclear reactor; pipe fabrication for a propane dehydrogenation unit for Enterprise; the licensing, engineering design and catalyst supply for three grassroots refinery units in China; as well as numerous additional strategic technology licensing and catalysts awards.
"CB&I's revenue and earnings also remain solid," continued Mr. Asherman. "Our earnings results for the quarter included $43 million for annual stock-based compensation expenses, or $0.27 per diluted share. Stock-based compensation expenses for the remainder of 2014 are expected to be approximately $8 million, or $0.05 per diluted share, per quarter."
Earnings Conference Call
CB&I will host a webcast on April 23 at 4 p.m. Central time (5 p.m. Eastern time) to discuss financial and operating results and answer questions from investors. The webcast will be available on the Investor Relations page of www.cbi.com.
About CB&I
CB&I (NYSE:CBI) is the most complete energy infrastructure focused company in the world and a major provider of government services. With 125 years of experience and the expertise of approximately 55,000 employees, CB&I provides reliable solutions while maintaining a relentless focus on safety and an uncompromising standard of quality. For more information, visit www.cbi.com.
Important Information For Investors And Shareholders
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding CB&I and represents our expectations and beliefs concerning future events. These forward-looking statements are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties. When considering any statements that are predictive in nature, depend upon or refer to future events or conditions, or use or contain words, terms, phrases or expressions such as "achieve," "forecast," "plan," "propose," "strategy," "envision," "hope," "will," "continue," "potential," "expect," "believe," "anticipate," "project," "estimate," "predict," "intend," "should," "could," "may," "might" or similar forward-looking statements, we refer you to the cautionary statements concerning risk factors and "Forward-Looking Statements" described under "Risk Factors" in Item 1A of our Annual Report filed on Form 10-K filed with the SEC for the year ended December 31, 2013, and any updates to those risk factors or "Forward-Looking Statements" included in our subsequent Quarterly Reports on Form 10-Q filed with the SEC, which cautionary statements are incorporated herein by reference.
Chicago Bridge & Iron Company N.V.
Consolidated Statements of Operations
(in thousands, except per share data)
Three Months
Ended March 31,
---------------
2014 2013
---- ----
Revenue $2,928,132 $2,251,429
Cost of revenue 2,626,730 2,005,285
--------- ---------
Gross profit 301,402 246,144
% of Revenue 10.3% 10.9%
Selling and administrative expense 119,167 93,968
% of Revenue 4.1% 4.2%
Intangibles amortization 16,234 9,188
Equity earnings (4,165) (4,485)
Other operating income, net (384) (297)
Acquisition and integration related costs 8,067 61,256
----- ------
Income from operations 162,483 86,514
% of Revenue 5.5% 3.8%
Interest expense (18,887) (22,746)
Interest income 2,060 1,871
----- -----
Income before taxes 145,656 65,639
Income tax expense (42,910) (22,767)
------- -------
Net income 102,746 42,872
Less: Net income attributable to noncontrolling interests (13,795) (9,264)
------- ------
Net income attributable to
CB&I $88,951 $33,608
--------------------
Net income attributable to CB&I per share:
Basic $0.83 $0.33
Diluted $0.82 $0.32
Weighted average shares outstanding:
Basic 107,677 101,802
Diluted 109,113 103,507
Cash dividends on shares:
Amount $7,559 $5,345
Per Share $0.07 $0.05
Non-GAAP Supplemental Information
(amounts adjusted to exclude Shaw acquisition and integration related costs) (1)
Adjusted income from
operations $170,550 $147,770
Adjusted % of Revenue 5.8% 6.6%
Adjusted net income
attributable to CB&I $94,437 $84,856
Adjusted net income
attributable to CB&I per
share (diluted) $0.87 $0.82
(1) The exclusion of Shaw acquisition and
integration related costs is a non-GAAP
financial measure, which we believe provides
users a better indication of our operating
performance. See Reconciliation of Non-GAAP
Supplemental Information table.
Chicago Bridge & Iron Company N.V.
Segment Information
(in thousands)
Three Months Ended March 31,
----------------------------
2014 2013
---- ----
% of % of
NEW AWARDS (1) Total Total
Engineering, Construction and Maintenance (2) $4,924,319 85% $1,000,450 52%
Fabrication Services 493,974 8% 707,706 36%
Technology 100,201 2% 152,748 8%
Environmental Solutions (2) 278,995 5% 85,045 4%
Total $5,797,489 $1,945,949
========== ==========
% of % of
REVENUE Total Total
Engineering, Construction and Maintenance (2) $1,968,711 67% $1,499,776 66%
Fabrication Services 630,408 22% 495,048 22%
Technology 144,076 5% 151,482 7%
Environmental Solutions (2) 184,937 6% 105,123 5%
Total $2,928,132 $2,251,429
========== ==========
% of % of
INCOME FROM OPERATIONS Revenue Revenue
Engineering, Construction and Maintenance (2) $88,778 4.5% $66,533 4.4%
Fabrication Services 40,413 6.4% 45,024 9.1%
Technology 41,171 28.6% 35,542 23.5%
Environmental Solutions (2) 188 0.1% 671 0.6%
Total operating groups $170,550 5.8% $147,770 6.6%
-------- --------
Acquisition and integration related costs (8,067) (61,256)
Total $162,483 5.5% $86,514 3.8%
======== =======
(1) New awards represents the value of
new project commitments received by
the Company during a given period.
(2) The 2013 results for a large
engineering, procurement and
construction project in the U.S.
that was previously reported within
our Environmental Solutions
(formerly Government Solutions)
operating group has been
reclassified to our Engineering,
Construction and Maintenance
operating group to conform to its
classification in 2014, reflecting
the present management oversight for
the project.
Chicago Bridge & Iron Company N.V.
Condensed Consolidated Balance Sheets
(in thousands)
March 31, December 31,
2014 2013
---- ----
ASSETS
Current assets $3,387,947 $3,389,565
Equity investments 90,867 101,754
Property and equipment, net 780,122 788,797
Goodwill and other intangibles, net 4,837,257 4,854,191
Other non-current assets 237,883 255,286
------- -------
Total assets $9,334,076 $9,389,593
============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current maturities of long-term debt and revolver borrowings $434,754 $215,000
Other current liabilities 4,244,711 4,582,624
Long-term debt 1,600,000 1,625,000
Other non-current liabilities 439,493 459,531
Shareholders' equity 2,615,118 2,507,438
--------- ---------
Total
liabilities
and
shareholders'
equity $9,334,076 $9,389,593
==============
Chicago Bridge & Iron Company N.V.
Condensed Consolidated Statements of Cash Flows and Other Financial Data
(in thousands)
Three Months
Ended March 31,
---------------
2014 2013
---- ----
CASH FLOWS
Cash flows from operating activities $(145,752) $(312,215)
Cash flows from investing activities (22,026) (1,752,351)
Cash flows from financing activities 152,250 1,821,239
Effect of exchange rate changes on cash and cash equivalents 15,189 (7,242)
Decrease in cash and cash equivalents (339) (250,569)
Cash and cash equivalents, beginning of the year 420,502 643,395
Cash and cash equivalents, end of the period $420,163 $392,826
======== ========
OTHER FINANCIAL DATA
Decrease (increase) in receivables, net $111,885 $(153,647)
Change in contracts in progress, net (422,510) (180,030)
Decrease (increase) in inventory 10,968 (4,302)
Decrease in accounts payable (838) (28,720)
Change in
contract
capital $(300,495) $(366,699)
==========
Depreciation and amortization $45,625 $28,637
Capital expenditures $26,485 $14,932
March 31, 2014 December 31, 2013
-------------- -----------------
Backlog (1) $30,680,626 $27,794,212
(1) Backlog includes the value of new
award commitments until work is
performed and revenue is
recognized or until cancellation.
Backlog may also fluctuate with
currency movements.
Chicago Bridge & Iron Company N.V.
Reconciliation of Non-GAAP Supplemental Information
(in thousands, except per share data)
Three Months
Ended March 31,
---------------
2014 2013
---- ----
Adjusted income from operations
Income from operations $162,483 $86,514
Acquisition and integration related costs 8,067 61,256
----- ------
Adjusted income from operations $170,550 $147,770
Adjusted % of Revenue 5.8% 6.6%
Adjusted net income attributable to CB&I
Net income attributable to CB&I $88,951 $33,608
Acquisition and integration related costs, net of tax (1) 5,486 51,248
----- ------
Adjusted net income attributable to CB&I $94,437 $84,856
Adjusted net income attributable to CB&I per share
Net income attributable to CB&I $0.82 $0.32
Acquisition and integration related costs, net of tax (1) 0.05 0.50
---- ----
Adjusted net income attributable to CB&I $0.87 $0.82
(1) The three month period ended March 31, 2014, includes
$8,067 of integration related costs, less the tax impact
of $2,581. The per share amount for the three month period
is based upon diluted weighted average shares of 109,113.
The three month period ended March 31, 2013,
includes $61,256 of acquisition and integration
related costs and $10,517 of acquisition
related pre-closing financing costs and one-
time financial commitments (both included in
interest expense). These costs total $71,773
less the tax impact of $20,525. The per share
amount for the three month period is based upon
diluted weighted average shares of 103,507.
http://photos.prnewswire.com/prnvar/20130430/DA04155LOGO
Logo - http://photos.prnewswire.com/prnh/20130430/DA04155LOGO
SOURCE CB&I
