CHICAGO BRIDGE & IRON COMPANY N.V. THE WOODLANDS, Texas, Oct. 23, 2014 /PRNewswire/ -- CB&I (NYSE: CBI) today reported adjusted net income for the third quarter of $164.7 million, or $1.51 per diluted share, excluding integration related costs of $2.8 million, or $0.03 per diluted share, up 35 percent from the third quarter 2013. In the quarter GAAP net income was $161.8 million, or $1.48 per diluted share, up 37 percent over the comparable period. Revenue for the third quarter was $3.4 billion, up from $3.0 billion, or 13 percent from the third quarter 2013. New awards for the third quarter totaled $3.0 billion, which resulted in a backlog of $30.7 billion.
"We are pleased with the third quarter results and $13 billion in new awards year to date, which reflect our ability to capitalize on key end markets we have been pursuing across our operating groups," said Philip K. Asherman, CB&I's President and Chief Executive Officer. "Our net cash provided from operating activities for the quarter was $25.1 million, and our liquidity is solid. We enter the fourth quarter forecasted to achieve revenue and EPS consistent with market expectations, and we look forward to a strong start to 2015."
CB&I's third quarter new awards reflect the continuing development of major oil, gas and petrochemical projects in North America, robust storage and fabrication activity in the Middle East and high demand for technology solutions globally, particularly in Asia Pacific and the Middle East. Significant awards by end markets included LNG, ranging from additional scope to front end engineering and design (FEED) for LNG export terminals in North America; Petrochemicals, ranging from technology and engineering for polypropylene and gasification units in China to on-purpose propylene in Europe; Refining, including technology and storage in the Middle East and Asia; and Gas Processing, including the supply of process modules in North America.
Earnings Conference Call
CB&I will host a webcast on Oct. 23 at 4:00 p.m. Central time (5:00 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 Nine Months
Ended September 30, Ended September 30,
------------------- -------------------
2014 2013 2014 2013
Revenue $3,380,733 $2,992,050 $9,603,244 $8,094,270
Cost of revenue 2,987,539 2,675,481 8,527,473 7,234,466
--------- --------- --------- ---------
Gross profit 393,194 316,569 1,075,771 859,804
% of Revenue 11.6% 10.6% 11.2% 10.6%
Selling and administrative expense 92,585 93,699 309,783 280,564
% of Revenue 2.7% 3.1% 3.2% 3.5%
Intangibles amortization 16,789 17,411 49,845 42,682
Equity earnings (6,673) (5,734) (14,003) (16,137)
Other operating (income) expense, net (132) 3,800 (777) 2,136
Acquisition and integration related costs 4,563 5,257 22,167 76,477
----- ----- ------ ------
Income from operations 286,062 202,136 708,756 474,082
% of Revenue 8.5% 6.8% 7.4% 5.9%
Interest expense (21,337) (22,569) (61,899) (66,072)
Interest income 2,584 1,340 6,121 5,209
----- ----- ----- -----
Income before taxes 267,309 180,907 652,978 413,219
Income tax expense (83,419) (47,944) (199,276) (117,684)
------- ------- -------- --------
Net income 183,890 132,963 453,702 295,535
Less: Net income attributable to noncontrolling interests (22,048) (15,275) (60,505) (38,196)
Net income attributable to CB&I $161,842 $117,688 $393,197 $257,339
-------- -------- -------- --------
Net income attributable to CB&I per share:
Basic $1.50 $1.10 $3.64 $2.44
Diluted $1.48 $1.08 $3.61 $2.41
Weighted average shares outstanding:
Basic 108,199 107,277 107,993 105,398
Diluted 109,209 108,665 109,061 106,874
Cash dividends on shares:
Amount $7,574 $5,370 $22,700 $16,078
Per share $0.07 $0.05 $0.21 $0.15
Non-GAAP Supplemental Information
(amounts adjusted to exclude Shaw acquisition and integration related costs) (1)
Adjusted income from operations $290,625 $207,393 $730,923 $550,559
Adjusted % of Revenue 8.6% 6.9% 7.6% 6.8%
Adjusted net income attributable to CB&I $164,671 $121,344 $407,425 $318,521
Adjusted net income attributable to CB&I per share (diluted) $1.51 $1.12 $3.74 $2.98
(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 September 30, Nine Months Ended September 30,
2014 2013 2014 2013
---- ---- ---- ----
% of % of % of % of
NEW AWARDS (1) Total Total Total Total
Engineering, Construction and Maintenance (2) $1,761,714 59% $1,371,797 55% $9,892,797 76% $4,095,213 59%
Fabrication Services 478,987 16% 681,068 27% 1,360,301 11% 1,882,205 27%
Technology 387,488 13% 139,764 6% 817,134 6% 399,906 6%
Environmental Solutions (2) 347,816 12% 305,557 12% 906,339 7% 580,598 8%
Total $2,976,005 $2,498,186 $12,976,571 $6,957,922
========== ========== =========== ==========
% of % of % of % of
REVENUE Total Total Total Total
Engineering, Construction and Maintenance (2) $2,370,342 70% $1,907,799 64% $6,629,897 69% $5,204,379 64%
Fabrication Services 631,450 19% 707,026 24% 1,903,062 20% 1,877,545 23%
Technology 144,975 4% 155,941 5% 444,529 5% 468,723 6%
Environmental Solutions (2) 233,966 7% 221,284 7% 625,756 6% 543,623 7%
Total $3,380,733 $2,992,050 $9,603,244 $8,094,270
========== ========== ========== ==========
% of % of % of % of
INCOME FROM OPERATIONS Revenue Revenue Revenue Revenue
Engineering, Construction and Maintenance (2) $164,464 6.9% $86,382 4.5% $397,411 6.0% $239,640 4.6%
Fabrication Services 57,578 9.1% 72,184 10.2% 168,705 8.9% 184,103 9.8%
Technology 48,925 33.7% 44,804 28.7% 134,891 30.3% 116,710 24.9%
Environmental Solutions (2) 19,658 8.4% 4,023 1.8% 29,916 4.8% 10,106 1.9%
Total operating groups $290,625 8.6% $207,393 6.9% $730,923 7.6% $550,559 6.8%
-------- -------- -------- --------
Acquisition and integration related costs (4,563) (5,257) (22,167) (76,477)
Total $286,062 8.5% $202,136 6.8% $708,756 7.4% $474,082 5.9%
======== ======== ======== ========
(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)
September 30, December 31,
2014 2013
---- ----
ASSETS
Current assets $3,393,788 $3,389,565
Equity investments 103,684 101,754
Property and equipment, net 776,361 788,797
Goodwill and other intangibles, net 4,777,562 4,854,191
Other non-current assets 219,477 255,286
-------
Total assets $9,270,872 $9,389,593
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current maturities of long-term debt and other borrowings $650,158 $215,000
Other current liabilities 3,756,682 4,582,624
Long-term debt 1,591,179 1,625,000
Other non-current liabilities 406,048 459,531
Shareholders' equity 2,866,805 2,507,438
Total liabilities and shareholders' equity $9,270,872 $9,389,593
========== ==========
Chicago Bridge & Iron Company N.V.
Condensed Consolidated Statements of Cash Flows and Other Financial Data
(in thousands)
Nine Months
Ended September 30,
-------------------
2014 2013
---- ----
CASH FLOWS
Cash flows from operating activities $(349,293) $(193,979)
Cash flows from investing activities (74,573) (1,797,258)
Cash flows from financing activities 302,348 1,901,483
Effect of exchange rate changes on cash and cash equivalents (27,540) (10,678)
Decrease in cash and cash equivalents (149,058) (100,432)
Cash and cash equivalents, beginning of the year 420,502 643,395
Cash and cash equivalents, end of the period $271,444 $542,963
======== ========
OTHER FINANCIAL DATA
Increase in receivables, net $(222,207) $(242,507)
Change in contracts in progress, net (994,458) (385,098)
Decrease (increase) in inventory 17,106 (11,985)
Increase (decrease) in accounts payable 68,105 (98,338)
Change in contract capital $(1,131,454) $(737,928)
=========== =========
Depreciation and amortization $135,281 $130,685
Capital expenditures $79,511 $60,524
September 30, 2014 December 31, 2013
------------------ -----------------
Backlog (1) $30,660,564 $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 Nine Months
Ended September 30, Ended September 30,
------------------- -------------------
2014 2013 2014 2013
---- ---- ---- ----
Adjusted income from operations
Income from operations $286,062 $202,136 $708,756 $474,082
Acquisition and integration related costs 4,563 5,257 22,167 76,477
----- ----- ------ ------
Adjusted income from operations $290,625 $207,393 $730,923 $550,559
Adjusted % of Revenue 8.6% 6.9% 7.6% 6.8%
Adjusted net income attributable to CB&I
Net income attributable to CB&I $161,842 $117,688 $393,197 $257,339
Acquisition and integration related costs, net of tax (1) 2,829 3,656 14,228 61,182
----- ----- ------ ------
Adjusted net income attributable to CB&I $164,671 $121,344 $407,425 $318,521
Adjusted net income attributable to CB&I per share
Net income attributable to CB&I $1.48 $1.08 $3.61 $2.41
Acquisition and integration related costs, net of tax (1) 0.03 0.04 0.13 0.57
---- ---- ---- ----
Adjusted net income attributable to CB&I $1.51 $1.12 $3.74 $2.98
(1) The three and nine month periods
ended September 30, 2014 include
$4,563 and $22,167,
respectively, of integration
related costs, less the tax
impact of $1,734 and $7,939,
respectively. The per share
amounts for the three and nine
month periods are based upon
diluted weighted average shares
of 109,209 and 109,061,
respectively.
The three and nine month periods
ended September 30, 2013 include
$5,257 and $76,477,
respectively, of acquisition and
integration related costs, and
the nine month period ended
September 30, 2013 includes
$10,517 of acquisition related
pre-closing financing costs and
one-time financial commitments
(both included in interest
expense and recorded in Q1
2013). These costs total $5,257
and $86,994, less the tax impact
of $1,601 and $25,812,
respectively. The per share
amounts for the three and nine
month periods are based upon
diluted weighted average shares
of 108,665 and 106,874,
respectively.
http://photos.prnewswire.com/prnvar/20130430/DA04155LOGO
Logo - http://photos.prnewswire.com/prnh/20130430/DA04155LOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cbi-reports-2014-third-quarter-results-658996865.html
SOURCE CB&I
