CHICAGO BRIDGE & IRON COMPANY N.V. THE WOODLANDS, Texas, April 23, 2015 /PRNewswire/ -- CB&I (NYSE: CBI) today reported net income for the first quarter of $132.2 million, or $1.21 per diluted share, an increase of 40 percent against adjusted net income for the comparable period. Revenues for the first quarter were $3.1 billion, up from $2.9 billion, or 7 percent from the first quarter 2014. New awards for the first quarter totaled $3 billion, which resulted in a backlog of approximately $30 billion.
"CB&I delivered solid first quarter operational and financial performance," said Philip K. Asherman, CB&I's President and Chief Executive Officer. "Revenues experienced some headwinds due to the effects of the strong dollar on our international work, which comprised nearly 40 percent of our revenues this quarter. We maintain confidence in our guidance for the year supported by the continuing development of LNG projects in North America, petrochemical developments on the Gulf Coast, combined cycle power plants in the U.S., and consistent margin performance from our operating groups."
CB&I's earnings for the first quarter include stock-based compensation expense of approximately $32 million, or $0.20 per diluted share. Stock-based compensation expense for the remainder of 2015 is expected to be approximately $14 million, or $0.09 per diluted share, per quarter.
CB&I's first quarter results reflect the company's ability to convert prospects into bookings across its global end markets for each of its business sectors. Noteworthy awards include a third LNG train for the Freeport LNG export terminal, additional fabrication services for our U.S. LNG export facility projects, plant services for a refinery in Texas, a polypropylene technology contract and storage awards for petrochemical developments in the Middle East, storage tanks in South America and Canada, technology and FEED contracts for a delayed coker unit for a refinery in Europe, scope increases from our LNG mechanical erection project in Australia and a variety of technology and fabrication awards globally.
Earnings Conference Call
CB&I will host a webcast on Apr. 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 54,000 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, 2014, 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,
---------------
2015 2014
Revenue $3,125,745 $2,928,132
Cost of revenue 2,755,574 2,626,730
--------- ---------
Gross profit 370,171 301,402
% of Revenue 11.8% 10.3%
Selling and administrative expense 109,101 119,167
% of Revenue 3.5% 4.1%
Intangibles amortization 15,652 16,234
Equity earnings (4,202) (4,165)
Other operating expense (income), net 2,822 (384)
Integration related costs - 8,067
--- -----
Income from operations 246,798 162,483
% of Revenue 7.9% 5.5%
Interest expense (22,286) (18,887)
Interest income 2,048 2,060
----- -----
Income before taxes 226,560 145,656
Income tax expense (69,811) (42,910)
------- -------
Net income 156,749 102,746
Less: Net income attributable to noncontrolling interests (24,521) (13,795)
Net income attributable to CB&I $132,228 $88,951
-------- -------
Net income attributable to CB&I per share:
Basic $1.22 $0.83
Diluted $1.21 $0.82
Weighted average shares outstanding:
Basic 108,197 107,677
Diluted 109,261 109,113
Cash dividends on shares:
Amount $7,597 $7,559
Per share $0.07 $0.07
Non-GAAP Supplemental Information
(amounts adjusted to exclude integration related costs) (1)
Adjusted income from operations $170,550
Adjusted % of Revenue 5.8%
Adjusted net income attributable to CB&I $94,437
Adjusted net income attributable to CB&I per share (diluted) $0.87
(1) The exclusion of 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,
2015 2014
---- ----
% of % of
NEW AWARDS (1), (2) Total Total
Engineering & Construction $1,209,407 40% $4,494,837 78%
Fabrication Services 927,374 31% 516,729 9%
Technology 77,022 2% 77,446 1%
Capital Services 817,380 27% 708,477 12%
Total $3,031,183 $5,797,489
========== ==========
% of % of
REVENUE (2) Total Total
Engineering & Construction $1,818,586 58% $1,686,181 58%
Fabrication Services 637,809 21% 671,911 23%
Technology 99,361 3% 102,573 3%
Capital Services 569,989 18% 467,467 16%
Total $3,125,745 $2,928,132
========== ==========
% of % of
INCOME FROM OPERATIONS (2) Revenue Revenue
Engineering & Construction $136,418 7.5% $84,636 5.0%
Fabrication Services 52,399 8.2% 46,915 7.0%
Technology 48,024 48.3% 34,669 33.8%
Capital Services 9,957 1.7% 4,330 0.9%
Total operating groups $246,798 7.9% $170,550 5.8%
-------- --------
Integration related costs - (8,067)
Total $246,798 7.9% $162,483 5.5%
======== ========
(1) New awards represent the value of new project commitments received by the Company during a given period, as
well as scope growth on existing commitments.
(2) During the three months ended March 31, 2015, we realigned our reportable segments to reflect the present
management oversight of our operations. Our maintenance business that was previously reported within our
Engineering & Construction operating group (formerly Engineering, Construction & Maintenance) is now reported
within our Capital Services operating group (formerly Environmental Solutions), and our engineered products
business that was previously reported within our Technology operating group is now reported within our
Fabrication Services operating group. Our 2014 segment results were reclassified to reflect the reportable
segment realignment.
Chicago Bridge & Iron Company N.V.
Condensed Consolidated Balance Sheets
(in thousands)
March 31, December 31,
2015 2014
---- ----
ASSETS
Current assets $3,898,210 $3,530,459
Equity investments 137,379 107,984
Property and equipment, net 750,563 771,651
Goodwill and other intangibles, net 4,701,384 4,751,685
Other non-current assets 230,705 219,252
-------
Total assets $9,718,241 $9,381,031
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current maturities of long-term debt and other borrowings $749,286 $270,738
Other current liabilities 3,838,249 4,051,492
Long-term debt 1,525,128 1,564,158
Other non-current liabilities 619,572 618,340
Shareholders' equity 2,986,006 2,876,303
Total liabilities and shareholders' equity $9,718,241 $9,381,031
========== ==========
Chicago Bridge & Iron Company N.V.
Condensed Consolidated Statements of Cash Flows and Other Financial Data
(in thousands)
Three Months
Ended March 31,
---------------
2015 2014
---- ----
CASH FLOWS
Cash flows from operating activities $(289,871) $(145,752)
Cash flows from investing activities (56,879) (22,026)
Cash flows from financing activities 403,409 152,250
Effect of exchange rate changes on cash and cash equivalents (60,965) 15,189
Decrease in cash and cash equivalents (4,306) (339)
Cash and cash equivalents, beginning of the year 351,323 420,502
Cash and cash equivalents, end of the period $347,017 $420,163
======== ========
OTHER FINANCIAL DATA
(Increase) decrease in receivables, net $(41,175) $111,885
Change in contracts in progress, net (330,345) (422,510)
Decrease in inventory 2,803 10,968
Decrease in accounts payable (230,152) (838)
Change in contract capital $(598,869) $(300,495)
========= =========
Depreciation and amortization $44,309 $45,625
Capital expenditures $28,978 $26,485
March 31, 2015 December 31, 2014
-------------- -----------------
Backlog (1) $29,934,182 $30,363,269
(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
----
Adjusted income from operations
Income from operations $162,483
Integration related costs 8,067
-----
Adjusted income from operations $170,550
Adjusted % of Revenue 5.8%
Adjusted net income attributable to CB&I
Net income attributable to CB&I $88,951
Integration related costs, net of tax (1) 5,486
-----
Adjusted net income attributable to CB&I $94,437
Adjusted net income attributable to CB&I
per share
Net income attributable to CB&I $0.82
Integration related costs, net of tax (1) 0.05
----
Adjusted net income attributable to CB&I $0.87
(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.
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SOURCE CB&I
