CHICAGO BRIDGE & IRON COMPANY N.V. THE WOODLANDS, Texas, April 20, 2016 /PRNewswire/ -- CB&I (NYSE:CBI) today announced first quarter 2016 net income of $107 million, or $1.01 per diluted share, compared to $132 million, or $1.21 per diluted share in the first quarter of 2015. Diluted earnings per share increased 5 percent in the first quarter of 2016 as compared to pro forma results for the comparable quarter in 2015, which exclude net income from the former nuclear construction business of $28 million, or $0.25 per diluted share. First quarter 2016 revenue of $2.7 billion compares to $3.1 billion in the first quarter of 2015, which included $488 million in revenue from the former nuclear business. On a pro forma basis, revenue increased slightly compared to 2015 first quarter results. New awards for the first quarter were $1.2 billion with a backlog of $21.2 billion.
Net cash provided by operating activities during the first quarter was $142 million, representing an increase of $432 million compared to the first quarter in 2015. Net operating cash flows combined with advance payments associated with equity-method joint ventures, which are reflected in cash flows from financing activities, totaled approximately $257 million during the first quarter 2016. At quarter end, cash and cash equivalents were $641 million, an increase of $294 million from the quarter-end balance for the first quarter 2015 and over $90 million from the year-end balance for 2015. In addition, during the quarter, total debt was reduced by $120 million from the year-end balance for 2015.
"Our cash generation in the first quarter reflects our ability to deliver on our capital allocation priorities of reducing leverage, returning capital to shareholders and investing in our business. Despite market uncertainty slowing the pace of new awards in the quarter, we maintained a healthy backlog and solid margins," said Philip K. Asherman, CB&I's President and Chief Executive Officer. "Earnings lagged this quarter due to underperformance from our Fabrication Services group and a continuing softness in the technology licensing market worldwide. However, as previously communicated, we expect our new awards, revenue and earnings to progressively improve during the year, and we remain on track to perform within our guided ranges for 2016."
New awards for the first quarter include scope increases for an LNG mechanical erection and instrumentation project in Australia, refinery maintenance work in the United States and Canada, crude oil storage in the Middle East and Canada, petrochemical licensing in the Asia Pacific region, catalyst awards in the Middle East, environmental remediation work for the U.S. Navy, and a variety of technology and fabrication awards globally.
The tables below include reconciliations of GAAP financial results to non-GAAP financial results for 2015, which exclude results of the former nuclear construction business and the impact of the sale.
Earnings Conference Call
CB&I will host a webcast on April 20 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 a leading provider of technology and infrastructure for the energy industry. With over 125 years of experience and the expertise of more than 40,000 employees, CB&I provides reliable solutions to our customers around the world 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, 2015, 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.
Segment Information
(in thousands)
Three Months Ended March 31,
----------------------------
2016 2015
---- ----
NEW AWARDS (1) % of % of
Total Total
Engineering & Construction $323,418 27% $1,209,407 40%
Fabrication Services 373,689 31% 927,374 31%
Technology 83,620 7% 77,022 2%
Capital Services 416,672 35% 817,380 27%
Total $1,197,399 $3,031,183
========== ==========
REVENUE % of % of
Total Total
Engineering & Construction $1,516,328 57% $1,818,586 58%
Fabrication Services 517,576 19% 637,809 21%
Technology 64,562 3% 99,361 3%
Capital Services 569,267 21% 569,989 18%
Total $2,667,733 $3,125,745
========== ==========
INCOME FROM OPERATIONS % of % of
Revenue Revenue
Engineering & Construction $111,920 7.4% $136,418 7.5%
Fabrication Services 38,249 7.4% 52,399 8.2%
Technology 26,281 40.7% 48,024 48.3%
Capital Services 11,490 2.0% 9,957 1.7%
Total $187,940 7.0% $246,798 7.9%
======== ========
(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.
Chicago Bridge & Iron Company N.V.
Consolidated Statements of Operations
(in thousands, except per share data)
Three Months
Ended March 31,
---------------
2016 2015
Revenue $2,667,733 $3,125,745
Cost of revenue 2,380,128 2,755,574
--------- ---------
Gross profit 287,605 370,171
% of Revenue 10.8% 11.8%
Selling and administrative
expense 92,597 109,101
% of Revenue 3.5% 3.5%
Intangibles amortization 11,277 15,652
Equity earnings (3,990) (4,202)
Other operating (income)
expense, net (219) 2,822
---- -----
Income from operations 187,940 246,798
% of Revenue 7.0% 7.9%
Interest expense (25,898) (22,286)
Interest income 2,489 2,048
----- -----
Income before taxes 164,531 226,560
Income tax expense (44,569) (69,811)
------- -------
Net income 119,962 156,749
Less: Net income
attributable to
noncontrolling interests (13,037) (24,521)
Net income attributable to
CB&I $106,925 $132,228
======== ========
Net income attributable to
CB&I per share:
Basic $1.02 $1.22
Diluted $1.01 $1.21
Weighted average shares
outstanding:
Basic 104,803 108,197
Diluted 105,785 109,261
Cash dividends on shares:
Amount $7,359 $7,597
Per share $0.07 $0.07
Chicago Bridge & Iron Company N.V.
Condensed Consolidated Balance Sheets
(in thousands)
March 31, December 31,
2016 2015
---- ----
ASSETS
Current assets $3,688,030 $3,367,299
Equity investments 137,895 136,845
Property and equipment, net 593,064 604,043
Goodwill and other intangibles,
net 4,119,851 4,122,455
Other non-current assets 941,863 961,418
-------
Total assets $9,480,703 $9,192,060
========== ==========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current maturities of long-term
debt and other borrowings, net $980,671 $800,871
Other current liabilities 4,333,739 4,056,077
Long-term debt, net 1,492,365 1,791,832
Other non-current liabilities 388,594 379,690
Shareholders' equity 2,285,334 2,163,590
Total liabilities and
shareholders' equity $9,480,703 $9,192,060
========== ==========
Condensed Consolidated Statements of Cash Flows and Other Financial Data
(in thousands)
Three Months
Ended March 31,
---------------
2016 2015
---- ----
CASH FLOWS
Cash flows from operating
activities $141,850 $(289,871)
Cash flows from investing
activities (47,499) (56,879)
Cash flows from financing
activities (11,392) 403,409
Effect of exchange rate changes
on cash and cash equivalents 8,305 (60,965)
Increase (decrease) in cash and
cash equivalents 91,264 (4,306)
Cash and cash equivalents,
beginning of the year 550,221 351,323
Cash and cash equivalents, end of
the period $641,485 $347,017
======== ========
OTHER FINANCIAL DATA
Increase in receivables, net $(57,207) $(41,175)
Change in contracts in progress,
net 58,361 (330,345)
Decrease in inventory 27,477 2,803
Decrease in accounts payable (87,753) (230,152)
Change in contract capital $(59,122) $(598,869)
======== =========
Depreciation and amortization $31,801 $44,309
Capital expenditures $11,180 $8,978
March 31, 2016 December 31, 2015
-------------- -----------------
Backlog (1) $21,163,059 $22,643,939
(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.
Non-GAAP Supplemental Pro Forma Financial Data
(amounts adjusted to exclude the results of our nuclear operations and non-cash charges related to the disposition of our nuclear operations)
(in thousands, except per share data)
Three Months Ended March 31, 2015 (1)
------------------------------------
As Reported Disposition Removal of Divested Excluding Divested
Charges Business Business
----------- ------------ ------------------- -------------------
Revenue $3,125,745 $ - $(488,259) $2,637,486
Income from
operations $246,798 $ - $(45,600) $201,198
Net income
attributable to CB&I $132,228 $ - $(27,816) $104,412
Net income
attributable to CB&I
per share (diluted)
(2) $1.21 $ - $(0.25) $0.96
New Awards $3,031,183 $ - $(5,206) $3,025,977
Backlog $29,934,182 $ - $(8,193,792) $21,740,390
Operating Cash Flows $(289,871) $ - $303,600 $13,729
Three Months Ended June 30, 2015 (1)
-----------------------------------
As Reported Disposition Removal of Divested Excluding Divested
Charges Business Business
----------- ------------ ------------------- -------------------
Revenue $3,207,113 $ - $(564,327) $2,642,786
Income from
operations $284,107 $ - $(71,800) $212,307
Net income
attributable to CB&I $169,515 $ - $(43,798) $125,717
Net income
attributable to CB&I
per share (diluted)
(2) $1.55 $ - $(0.40) $1.15
New Awards $2,844,516 $ - $(574,719) $2,269,797
Backlog $29,432,933 $ - $(8,204,184) $21,228,749
Operating Cash Flows $95,167 $ - $271,200 $366,367
Three Months Ended September 30, 2015 (1)
----------------------------------------
As Reported Disposition Removal of Divested Excluding Divested
Charges Business Business
----------- ------------ ------------------- -------------------
Revenue $3,321,682 $ - $(502,922) $2,818,760
(Loss) income from
operations $(889,962) $1,160,480 $(45,715) $224,803
Net (loss) income
attributable to CB&I $(740,433) $904,230 $(27,886) $135,911
Net (loss) income
attributable to CB&I
per share
(diluted)(3) $(7.02) $8.56 $(0.26) $1.28
New Awards $4,000,302 $ - $(84,289) $3,916,013
Backlog $29,928,616 $ - $(7,785,551) $22,143,065
Operating Cash Flows $21,282 $ - $305,685 $326,967
Three Months Ended December 31, 2015 (1)
---------------------------------------
As Reported Disposition Removal of Divested Excluding Divested
Charges Business Business
----------- ------------ ------------------- -------------------
Revenue $3,274,964 $ - $(505,659) $2,769,305
(Loss) income from
operations $(66,060) $345,371 $(52,035) $227,276
Net (loss) income
attributable to CB&I $(65,725) $230,910 $(31,741) $133,444
Net (loss) income
attributable to CB&I
per share
(diluted)(3) $(0.63) $2.19 $(0.30) $1.26
New Awards $3,262,497 $ - $(8,151) $3,254,346
Backlog $22,643,939 $ - $ - $22,643,939
Operating Cash Flows $117,208 $ - $252,865 $370,073
Chicago Bridge & Iron Company N.V.
Non-GAAP Supplemental Pro Forma Financial Data
(amounts adjusted to exclude the results of our nuclear operations and non-cash charges related to the disposition of our nuclear operations)
(in thousands, except per share data)
Twelve Months Ended December 31, 2015 (1)
----------------------------------------
As Reported Disposition Removal of Divested Excluding Divested
Charges Business Business
----------- ------------ ------------------- -------------------
Revenue $12,929,504 $ - $(2,061,167) $10,868,337
(Loss) income from
operations $(425,117) $1,505,851 $(215,150) $865,584
Net (loss) income
attributable to CB&I $(504,415) $1,135,140 $(131,241) $499,484
Net (loss) income
attributable to CB&I
per share
(diluted)(3) $(4.72) $10.58 $(1.22) $4.64
New Awards $13,138,498 $ - $(672,365) $12,466,133
Backlog $22,643,939 $ - $ - $22,643,939
Operating Cash Flows $(56,214) $ - $1,133,350 $1,077,136
(1) The summary unaudited pro forma
financial information presented in
the tables above is for
illustrative purposes only and is
based on assumptions and estimates
considered appropriate by CB&I
management; however, it is not
necessarily indicative of what
CB&I's consolidated financial
position or results of operations
actually would have been assuming
the transaction was completed on
January 1, 2015, and does not
purport to represent CB&I's
consolidated financial position or
results of operations for future
periods. The above should be read
together with the historical
financial statements, including
the related notes thereto,
included in CB&I's Annual Report
on Form 10-K for the year ended
December 31, 2015, and its
Quarterly Reports on Form 10-Q for
the quarters ended March 31, 2015,
June 30, 2015, and September 30,
2015.
(2) The unadjusted and adjusted per
share amounts for the three months
ended March 31, 2015, and June 30,
2015, are based upon diluted
weighted average shares of 109,261
and 109,533, respectively.
(3) The unadjusted per share amounts
for the three months ended
September 30, 2015, and December
31, 2015, and twelve months ended
December 31, 2015, are based upon
diluted weighted average shares
that are equivalent to our basic
weighted average shares of
105,454, 104,763 and 106,766,
respectively, due to the net loss
for the periods, and the adjusted
per share amounts are based upon
diluted weighted average shares of
106,322,105,926 and 107,719,
respectively.
Chicago Bridge & Iron Company N.V.
Non-GAAP Supplemental Pro Forma Segment Information
(amounts adjusted to exclude the results of our nuclear operations and non-cash charges related to the disposition of our nuclear operations)
(in thousands)
Three Months Ended Twelve Months Ended
------------------
March 31, 2015 (1) June 30, 2015 (1) September 30, 2015 (1) December 31, 2015 (1) December 31, 2015 (1)
----------------- ---------------- --------------------- -------------------- --------------------
NEW AWARDS % of % of % of % of % of
Total Total Total Total Total
Engineering & Construction $1,204,201 40% $731,232 32% $2,323,546 60% $1,778,520 55% $6,037,499 48%
Fabrication Services 927,374 31% 844,715 37% 840,658 21% 493,816 15% 3,106,563 25%
Technology 77,022 2% 81,087 4% 97,539 2% 321,892 10% 577,540 5%
Capital Services 817,380 27% 612,763 27% 654,270 17% 660,118 20% 2,744,531 22%
Total $3,025,977 $2,269,797 $3,916,013 $3,254,346 $12,466,133
========== ========== ========== ========== ===========
REVENUE % of % of % of % of % of
Total Total Total Total Total
Engineering & Construction $1,330,327 50% $1,351,795 51% $1,443,504 51% $1,510,891 55% $5,636,517 52%
Fabrication Services 637,809 24% 611,330 23% 640,201 23% 553,350 20% 2,442,690 22%
Technology 99,361 4% 92,975 4% 118,269 4% 88,494 3% 399,099 4%
Capital Services 569,989 22% 586,686 22% 616,786 22% 616,570 22% 2,390,031 22%
Total $2,637,486 $2,642,786 $2,818,760 $2,769,305 $10,868,337
========== ========== ========== ========== ===========
INCOME FROM OPERATIONS % of % of % of % of % of
Revenue Revenue Revenue Revenue Revenue
Engineering & Construction $90,818 6.8% $104,667 7.7% $107,411 7.4% $112,484 7.4% $415,380 7.4%
Fabrication Services 52,399 8.2% 55,937 9.2% 61,408 9.6% 55,523 10.0% 225,267 9.2%
Technology 48,024 48.3% 36,741 39.5% 31,911 27.0% 34,201 38.6% 150,877 37.8%
Capital Services 9,957 1.7% 14,962 2.6% 24,073 3.9% 25,068 4.1% 74,060 3.1%
Total $201,198 7.6% $212,307 8.0% $224,803 8.0% $227,276 8.2% $865,584 8.0%
======== ======== ======== ======== ========
(1) The summary unaudited pro forma financial information reflects the removal of the results of our
nuclear power construction business sold on December 31, 2015, and reflects the removal of the
related disposition charges incurred as a result of the sale, as quantified below. The information
presented in the tables above is for illustrative purposes only. The exclusion of our nuclear power
construction business and the $1,160,480 and $345,371 of charges related to the disposition of our
nuclear operations for the three months ended September 30, 2015, and December 31, 2015,
respectively, are non-GAAP financial measures, which we believe provides users a better indication
of our operating performance. See "Reconciliation of Non-GAAP Supplemental Pro Forma Segment
Information to GAAP Information" table.
Chicago Bridge & Iron Company N.V.
Reconciliation of Non-GAAP Supplemental Pro Forma Segment Information to GAAP Information
(in thousands)
Three Months Ended Twelve Months Ended
------------------
March 31, 2015 June 30, 2015 December 31, 2015
September 30, 2015 December 31, 2015
------------------ -----------------
NEW AWARDS
Engineering & Construction
--------------------------
Excluding Nuclear Operations $1,204,201 $731,232 $2,323,546 $1,778,520 $6,037,499
Nuclear Operations 5,206 574,719 84,289 8,151 672,365
----- ------- ------ ----- -------
Total $1,209,407 $1,305,951 $2,407,835 $1,786,671 $6,709,864
========== ========== ========== ========== ==========
CB&I
----
Excluding Nuclear Operations $3,025,977 $2,269,797 $3,916,013 $3,254,346 $12,466,133
Nuclear Operations 5,206 574,719 84,289 8,151 672,365
----- ------- ------ ----- -------
Total $3,031,183 $2,844,516 $4,000,302 $3,262,497 $13,138,498
========== ========== ========== ========== ===========
REVENUE
Engineering & Construction
--------------------------
Excluding Nuclear Operations $1,330,327 $1,351,795 $1,443,504 $1,510,891 $5,636,517
Nuclear Operations 488,259 564,327 502,922 505,659 2,061,167
------- ------- ------- ------- ---------
Total $1,818,586 $1,916,122 $1,946,426 $2,016,550 $7,697,684
========== ========== ========== ========== ==========
CB&I
----
Excluding Nuclear Operations $2,637,486 $2,642,786 $2,818,760 $2,769,305 $10,868,337
Nuclear Operations 488,259 564,327 502,922 505,659 2,061,167
------- ------- ------- ------- ---------
Total $3,125,745 $3,207,113 $3,321,682 $3,274,964 $12,929,504
========== ========== ========== ========== ===========
INCOME (LOSS) FROM OPERATIONS
%
of
Revenue
% of
Revenue
% of
Revenue
% of
Revenue
% of
Revenue
Engineering & Construction
--------------------------
Excluding Nuclear Operations $90,818 6.8% $104,667 7.7% $107,411 7.4% $112,484 7.4% $415,380 7.4%
Nuclear Operations 45,600 71,800 (1,114,765) (293,336) (1,290,701)
------ ------ ---------- -------- ----------
Total $136,418 7.5% $176,467 9.2% $(1,007,354) (51.8)% $(180,852) (9.0)% $(875,321) (11.4)%
======== ======== =========== ========= =========
CB&I
----
Excluding Nuclear Operations $201,198 7.6% $212,307 8.0% $224,803 8.0% $227,276 8.2% $865,584 8.0%
Nuclear Operations 45,600 71,800 (1,114,765) (293,336) (1,290,701)
------ ------ ---------- -------- ----------
Total $246,798 7.9% $284,107 8.9% $(889,962) (26.8)% $(66,060) (2.0)% $(425,117) (3.3)%
======== ======== ========= ======== =========
Investors: Scott Lamb, +1 832 513 1068, Scott.Lamb@CBI.com
Media: Gentry Brann, +1 832 513 1031, Gentry.Brann@CBI.com
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SOURCE CB&I
