CHICAGO BRIDGE & IRON COMPANY N.V. THE WOODLANDS, Texas, Feb. 24, 2015 /PRNewswire/ -- CB&I (NYSE: CBI) today reported financial results for the fourth quarter and full-year 2014. Adjusted net income for 2014 was $568.7 million, or $5.21 per diluted share, excluding integration related costs of $25.1 million net of tax, or $0.23 per diluted share. For the year, GAAP net income was $543.6 million, or $4.98 per diluted share. CB&I's consolidated 2014 revenue was $13.0 billion, up from $11.1 billion, a 17 percent increase from the prior year. New awards for the year totaled $16.3 billion, which resulted in a backlog of $30.4 billion.
For the fourth quarter, CB&I's adjusted net income was $161.3 million, or $1.47 per diluted share, excluding acquisition and integration related costs of $10.9 million net of tax, or $0.10 per diluted share. GAAP net income for the quarter was $150.4 million, or $1.37 per diluted share. Revenue for the fourth quarter was $3.4 billion with new awards of $3.3 billion. Cash from operating activities for the fourth quarter was $613.3 million, resulting in $264.0 million for the year.
"We are pleased to deliver another year of strong safety, operational and financial performance. Our new awards and backlog are at record levels, and our prospect list for 2015 supports our outlook for sustained earnings growth," said Philip K. Asherman, CB&I's President and Chief Executive Officer. "Despite the uncertainty generated by lower oil prices, our customers continue to rely on us to deliver solutions for their major capital projects. Over the last two years we made great progress in reducing costs and generating efficiencies across the organization, and believe our cost discipline coupled with the benefits of our diversified integrated offerings will allow us to maintain our performance and provide solid returns for our shareholders."
New awards of $16.3 billion for the year highlight the breadth and reach of our offerings across our end markets. Awards included strong bookings in the United States such as the engineering and construction of a three train LNG export terminal; two combined cycle gas turbine power projects; an ammonia storage tank; pipe fabrication for a propane dehydrogenation unit; nuclear and petrochemical facility maintenance work; as well as various decommissioning and decontamination, environmental remediation and government services awards. Globally, we booked noteworthy awards for engineering and procurement for a clean fuels project; structural, mechanical and piping construction for an LNG project; construction of petroleum storage tanks; licensing for a grassroots ethylene plant; engineered products for refining, petrochemicals and gas processing facilities; strategic technology licenses; and numerous additional steel plate storage and fabrication awards.
Commenting on CB&I's outlook for 2015, Mr. Asherman stated, "We project less than 5 percent of our revenue from new bookings could be affected by timing risks associated with lower oil prices. Accordingly, we think it is prudent to marginally adjust our guidance to revenue of $14.4 billion - $15.2 billion and earnings per share of $5.55 - $6.05."
Earnings Conference Call
CB&I will host a webcast on Feb. 24 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 Twelve Months
Ended December 31, Ended December 31,
------------------ ------------------
2014 2013 2014 2013
Revenue $3,371,686 $3,000,257 $12,974,930 $11,094,527
Cost of revenue 2,981,048 2,661,051 11,508,521 9,895,517
--------- --------- ---------- ---------
Gross profit 390,638 339,206 1,466,409 1,199,010
% of Revenue 11.6% 11.3% 11.3% 10.8%
Selling and administrative expense 95,425 98,921 405,208 379,485
% of Revenue 2.8% 3.3% 3.1% 3.4%
Intangibles amortization 16,661 18,429 66,506 61,111
Equity earnings (11,222) (7,337) (25,225) (23,474)
Other operating (income) expense, net (1,596) (493) (2,373) 1,643
Acquisition and integration related costs 17,518 19,260 39,685 95,737
------ ------ ------ ------
Income from operations 273,852 210,426 982,608 684,508
% of Revenue 8.1% 7.0% 7.6% 6.2%
Interest expense (21,691) (21,506) (83,590) (87,578)
Interest income 2,403 1,721 8,524 6,930
----- ----- ----- -----
Income before taxes 254,564 190,641 907,542 603,860
Income tax (expense) benefit (72,141) 26,414 (271,417) (91,270)
------- ------ -------- -------
Net income 182,423 217,055 636,125 512,590
Less: Net income attributable to noncontrolling interests (32,013) (20,274) (92,518) (58,470)
Net income attributable to CB&I $150,410 $196,781 $543,607 $454,120
-------- -------- -------- --------
Net income attributable to CB&I per share:
Basic $1.39 $1.83 $5.03 $4.29
Diluted $1.37 $1.80 $4.98 $4.23
Weighted average shares outstanding:
Basic 108,207 107,527 108,047 105,935
Diluted 109,466 109,168 109,122 107,452
Cash dividends on shares:
Amount $7,546 $5,375 $30,246 $21,453
Per share $0.07 $0.05 $0.28 $0.20
Non-GAAP Supplemental Information
(amounts adjusted to exclude Shaw acquisition and integration related costs) (1)
Adjusted income from operations $291,370 $229,686 $1,022,293 $780,245
Adjusted % of Revenue 8.6% 7.7% 7.9% 7.0%
Adjusted net income attributable to CB&I $161,270 $208,915 $568,695 $527,436
Adjusted net income attributable to CB&I per share (diluted) $1.47 $1.91 $5.21 $4.91
(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 December 31, Twelve Months Ended December 31,
2014 2013 2014 2013
---- ---- ---- ----
% of % of % of % of
NEW AWARDS (1) Total Total Total Total
Engineering, Construction and Maintenance (2) $2,430,030 74% $4,035,993 76% $12,322,827 76% $8,131,206 66%
Fabrication Services 455,720 14% 799,681 15% 1,816,021 11% 2,681,886 22%
Technology 176,435 5% 233,784 5% 993,569 6% 633,690 5%
Environmental Solutions (2) 226,517 7% 225,590 4% 1,132,856 7% 806,188 7%
Total $3,288,702 $5,295,048 $16,265,273 $12,252,970
========== ========== =========== ===========
% of % of % of % of
REVENUE Total Total Total Total
Engineering, Construction and Maintenance (2) $2,372,085 70% $1,961,360 66% $9,001,982 69% $7,165,739 65%
Fabrication Services 618,532 18% 698,052 23% 2,521,594 19% 2,575,597 23%
Technology 157,984 5% 130,472 4% 602,513 5% 599,195 5%
Environmental Solutions (2) 223,085 7% 210,373 7% 848,841 7% 753,996 7%
Total $3,371,686 $3,000,257 $12,974,930 $11,094,527
========== ========== =========== ===========
% of % of % of % of
INCOME FROM OPERATIONS Revenue Revenue Revenue Revenue
Engineering, Construction and Maintenance (2) $163,152 6.9% $110,885 5.7% $560,563 6.2% $350,525 4.9%
Fabrication Services 66,179 10.7% 75,647 10.8% 234,884 9.3% 259,750 10.1%
Technology 52,494 33.2% 40,125 30.8% 187,385 31.1% 156,835 26.2%
Environmental Solutions (2) 9,545 4.3% 3,029 1.4% 39,461 4.6% 13,135 1.7%
Total operating groups $291,370 8.6% $229,686 7.7% $1,022,293 7.9% $780,245 7.0%
-------- -------- ---------- --------
Acquisition and integration related costs (17,518) (19,260) (39,685) (95,737)
Total $273,852 8.1% $210,426 7.0% $982,608 7.6% $684,508 6.2%
======== ======== ======== ========
New awards
represents
the value of
new project
commitments
received by
the Company
during a
given
period, as
well as
scope growth
on existing
(1) commitments.
(2) The 2013
results for
a large
engineering,
procurement
and
construction
project in
the U.S.
that was
previously
reported
within our
Environmental
Solutions
operating
group were
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)
December 31, December 31,
2014 2013
---- ----
ASSETS
Current assets $3,530,459 $3,389,565
Equity investments 107,984 101,754
Property and equipment, net 771,651 788,797
Goodwill and other intangibles, net 4,751,685 4,854,191
Other non-current assets 219,252 255,286
------- -------
Total assets $9,381,031 $9,389,593
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current maturities of long-term debt and other borrowings $270,738 $215,000
Other current liabilities 4,051,492 4,582,624
Long-term debt 1,564,158 1,625,000
Other non-current liabilities 618,340 459,531
Shareholders' equity 2,876,303 2,507,438
Total liabilities and shareholders' equity $9,381,031 $9,389,593
========== ==========
Chicago Bridge & Iron Company N.V.
Condensed Consolidated Statements of Cash Flows and Other Financial Data
(in thousands)
Twelve Months
Ended December 31,
------------------
2014 2013
---- ----
CASH FLOWS
Cash flows from operating activities $264,047 $(112,836)
Cash flows from investing activities (182,277) (1,825,309)
Cash flows from financing activities (75,523) 1,732,812
Effect of exchange rate changes on cash and cash equivalents (75,426) (17,560)
Decrease in cash and cash equivalents (69,179) (222,893)
Cash and cash equivalents, beginning of the year 420,502 643,395
Cash and cash equivalents, end of the year $351,323 $420,502
======== ========
OTHER FINANCIAL DATA
Decrease (increase) in receivables, net $78,881 $(154,143)
Change in contracts in progress, net (942,689) (619,336)
Decrease in inventory 16,832 1,504
Increase (decrease) in accounts payable 99,376 (43,491)
Change in contract capital $(747,600) $(815,466)
========= =========
Depreciation and amortization $181,398 $180,026
Capital expenditures $117,624 $90,492
December 31, 2014 December 31, 2013
----------------- -----------------
Backlog (1) $30,363,269 $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 Twelve Months
Ended December 31, Ended December 31,
------------------ ------------------
2014 2013 2014 2013
---- ---- ---- ----
Adjusted income from operations
Income from operations $273,852 $210,426 $982,608 $684,508
Acquisition and integration related costs 17,518 19,260 39,685 95,737
------ ------ ------ ------
Adjusted income from operations $291,370 $229,686 $1,022,293 $780,245
Adjusted % of Revenue 8.6% 7.7% 7.9% 7.0%
Adjusted net income attributable to CB&I
Net income attributable to CB&I $150,410 $196,781 $543,607 $454,120
Acquisition and integration related costs, net of tax (1) 10,860 12,134 25,088 73,316
------ ------ ------ ------
Adjusted net income attributable to CB&I $161,270 $208,915 $568,695 $527,436
Adjusted net income attributable to CB&I per share
Net income attributable to CB&I $1.37 $1.80 $4.98 $4.23
Acquisition and integration related costs, net of tax (1) 0.10 0.11 0.23 0.68
---- ---- ---- ----
Adjusted net income attributable to CB&I $1.47 $1.91 $5.21 $4.91
(1) The three and twelve month periods ended December 31,
2014 include $17,518 and $39,685, respectively, of
integration related costs, less the tax impact of $6,658
and $14,597, respectively. The per share amounts for the
three and twelve month periods are based upon diluted
weighted average shares of 109,466 and 109,122,
respectively.
The three and twelve month periods ended December 31,
2013 include $19,260 and $95,737, respectively, of
acquisition and integration related costs, and the
twelve month period ended December 31, 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 $19,260 and $106,254, less the tax impact of
$7,126 and $32,938, respectively. The per share amounts
for the three and twelve month periods are based upon
diluted weighted average shares of 109,168 and 107,452,
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SOURCE CB&I
