THE WOODLANDS, Texas, July 27, 2016 /PRNewswire/ -- CB&I (NYSE: CBI) today reported net income of $123.8 million, or $1.17 per diluted share, for the second quarter of 2016, as compared to $169.5 million, or $1.55 per diluted share for the second quarter of 2015. On an adjusted basis, net income for the second quarter of 2015 was $125.7 million, or $1.15 per diluted share.
Revenues for the second quarter of 2016 were $2.7 billion, as compared to $3.2 billion in the second quarter of 2015, or $2.6 billion on an adjusted basis.
Net cash provided by operating activities during the second quarter of 2016 increased by 86 percent, to $177 million, as compared to $95 million of net cash provided by operating activities in the second quarter of 2015.
At the end of the second quarter of 2016, the company's total debt was $2.3 billion, down 10 percent from the end of 2015.
New awards for the second quarter of 2016 totaled $1.8 billion, as compared to $2.8 billion for the second quarter of 2015, or $2.3 billion on an adjusted basis. The company's backlog at the end of the second quarter of 2016 was $19.6 billion.
"Our sound performance for the second quarter was highlighted by impressive cash flow, solid earnings, reduced debt and continued progress in lowering our effective tax rate," said Philip K. Asherman, CB&I's President and Chief Executive Officer. "We also resumed our stock repurchase program earlier this month and to date have purchased approximately 3.6 million shares, and we will continue to be active in the market until we reach our $200 million limit.
"Despite ongoing market uncertainty delaying the timing of final investment decisions, we were encouraged to see a meaningful rebound in new awards in our Technology operating group, which is often a leading indicator for subsequent EPC awards," said Mr. Asherman.
Although CB&I's unique business model and backlog position the company well for the long term, energy customers continue to defer the timing of new projects. As a result, the company is lowering its 2016 guidance as follows:
Revenue: $10.6 - $11.0 billion
Earnings Per Diluted Share: $4.70 - $5.00
Earnings Conference Call
CB&I will host a webcast on July 27 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.
Non-GAAP Financial Measures
To supplement CB&I's consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures, including: adjusted revenue, adjusted income from operations, adjusted net income attributable to CB&I, adjusted net income attributable to CB&I per share (diluted), and adjusted operating cash flows. These non-GAAP financial measures exclude the results of CB&I's nuclear operations and non-cash charges related to the disposition of such operations. These non-GAAP financial measures are presented to enhance investors' understanding of the results of CB&I's core business operations. CB&I considers these non-GAAP financial measures to be useful measures of the operating performance of the company, because they contain adjustments for unusual events or factors that do not directly affect what management considers to be CB&I's core operating performance, and are used by the company's management for that purpose. Management also believes that these non-GAAP financial measures allow for a better evaluation of the company's performance by facilitating a meaningful comparison of the company's core operating results in a given period to those in prior and future periods. In addition, investors often use similar measures to evaluate the operating performance of a company.
Non-GAAP financial measures are presented for supplemental informational purposes only to aid an understanding of the company's operating results. The presentation of these non-GAAP financial measures and key metrics is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP financial measures presented by other companies. For more information on these non-GAAP financial measures and key metrics, please see the tables captioned "Non-GAAP Supplemental Adjusted Financial Data", "Non-GAAP Supplemental Adjusted Segment Information" and "Reconciliation of Non-GAAP Supplemental Adjusted Segment Information to GAAP Information" which are included at the end of this release.
Chicago Bridge & Iron Company N.V. Segment Information (in thousands) Three Months Ended June 30, Six Months Ended June 30, ------------------------- 2016 2015 2016 2015 ---- ---- ---- ---- NEW AWARDS (1) % of % of % of % of Total Total Total Total Engineering & Construction $963,391 55% $1,305,951 46% $1,286,809 44% $2,515,358 43% Fabrication Services 252,978 14% 844,715 30% 626,667 21% 1,772,089 30% Technology 107,769 6% 81,087 3% 191,389 6% 158,109 3% Capital Services 434,701 25% 612,763 21% 851,373 29% 1,430,143 24% Total $1,758,839 $2,844,516 $2,956,238 $5,875,699 ========== ========== ========== ========== REVENUE % of % of % of % of Total Total Total Total Engineering & Construction $1,543,126 57% $1,916,122 60% $3,059,454 57% $3,734,708 59% Fabrication Services 526,624 20% 611,330 19% 1,044,200 20% 1,249,139 20% Technology 64,512 2% 92,975 3% 129,074 2% 192,336 3% Capital Services 561,353 21% 586,686 18% 1,130,620 21% 1,156,675 18% Total $2,695,615 $3,207,113 $5,363,348 $6,332,858 ========== ========== ========== ========== INCOME FROM OPERATIONS % of % of % of % of Revenue Revenue Revenue Revenue Engineering & Construction $95,638 6.2% $176,467 9.2% $207,558 6.8% $312,885 8.4% Fabrication Services 66,853 12.7% 55,937 9.2% 105,102 10.1% 108,336 8.7% Technology 23,127 35.8% 36,741 39.5% 49,408 38.3% 84,765 44.1% Capital Services 16,515 2.9% 14,962 2.6% 28,005 2.5% 24,919 2.2% Total $202,133 7.5% $284,107 8.9% $390,073 7.3% $530,905 8.4% ======== ======== ======== ======== BACKLOG (2) June 30, 2016 % of Total December 31, 2015 % of Total ------------- ---------- ----------------- ---------- Engineering & Construction $11,159,593 57% $12,892,804 57% Fabrication Services 2,606,646 13% 3,107,500 14% Technology 977,125 5% 963,058 4% Capital Services 4,892,596 25% 5,680,577 25% Total $19,635,960 $22,643,939 =========== ===========
(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) 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. Consolidated Statements of Operations (in thousands, except per share data) Three Months Six Months Ended June 30, Ended June 30, -------------- -------------- 2016 2015 2016 2015 Revenue $2,695,615 $3,207,113 $5,363,348 $6,332,858 Cost of revenue 2,401,089 2,823,990 4,781,217 5,579,564 --------- --------- --------- --------- Gross profit 294,526 383,123 582,131 753,294 % of Revenue 10.9% 11.9% 10.9% 11.9% Selling and administrative expense 82,731 85,153 175,328 194,254 % of Revenue 3.1% 2.7% 3.3% 3.1% Intangibles amortization 10,494 14,942 21,771 30,594 Equity earnings (1,985) (394) (5,975) (4,596) Other operating expense (income), net 1,153 (685) 934 2,137 ----- ---- --- ----- Income from operations 202,133 284,107 390,073 530,905 % of Revenue 7.5% 8.9% 7.3% 8.4% Interest expense (26,073) (21,114) (51,971) (43,400) Interest income 3,059 2,184 5,548 4,232 ----- ----- ----- ----- Income before taxes 179,119 265,177 343,650 491,737 Income tax expense (46,571) (79,289) (91,140) (149,100) ------- ------- ------- -------- Net income 132,548 185,888 252,510 342,637 Less: Net income attributable to noncontrolling interests (8,709) (16,373) (21,746) (40,894) Net income attributable to CB&I $123,839 $169,515 $230,764 $301,743 ======== ======== ======== ======== Net income attributable to CB&I per share: Basic $1.18 $1.56 $2.20 $2.78 Diluted $1.17 $1.55 $2.18 $2.76 Weighted average shares outstanding: Basic 105,298 108,700 105,051 108,450 Diluted 106,091 109,533 105,925 109,386 Cash dividends on shares: Amount $7,372 $7,610 $14,731 $15,207 Per share $0.07 $0.07 $0.14 $0.14
Chicago Bridge & Iron Company N.V. Condensed Consolidated Balance Sheets (in thousands) June 30, December 31, 2016 2015 ---- ---- ASSETS Current assets $3,649,294 $3,367,299 Equity investments 149,043 136,845 Property and equipment, net 587,059 604,043 Goodwill and other intangibles, net 4,101,555 4,122,455 Other non-current assets 895,547 961,418 ------- Total assets $9,382,498 $9,192,060 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Current maturities of long-term debt and other borrowings, net $863,270 $800,871 Other current liabilities 4,272,183 4,056,077 Long-term debt, net 1,474,498 1,791,832 Other non-current liabilities 382,584 379,690 Shareholders' equity 2,389,963 2,163,590 Total liabilities and shareholders' equity $9,382,498 $9,192,060 ========== ========== Condensed Consolidated Statements of Cash Flows and Other Financial Data (in thousands) Six Months Ended June 30, -------------- 2016 2015 ---- ---- CASH FLOWS Cash flows from operating activities $319,264 $(194,704) Cash flows from investing activities (115,668) (189,644) Cash flows from financing activities (137,736) 422,223 Effect of exchange rate changes on cash and cash equivalents (13,169) (34,110) Increase in cash and cash equivalents 52,691 3,765 Cash and cash equivalents, beginning of the year 550,221 351,323 Cash and cash equivalents, end of the period $602,912 $355,088 ======== ======== OTHER FINANCIAL DATA Increase in receivables, net $(113,662) $(20,291) Change in contracts in progress, net 87,405 (626,450) Decrease (increase) in inventory 15,334 (6,089) Decrease in accounts payable (53,637) (77,798) Change in contract capital $(64,560) $(730,628) ======== ========= Depreciation and amortization $62,853 $86,699 Capital expenditures $25,276 $33,717
Chicago Bridge & Iron Company N.V. Non-GAAP Supplemental Adjusted 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 Excluding Charges Divested Divested 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 Excluding Charges Divested Divested 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 Excluding Charges Divested Divested 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 Excluding Charges Divested Divested 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 Twelve Months Ended December 31, 2015 (1) ---------------------------------------- As Reported Disposition Removal of Excluding Charges Divested Divested 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 adjusted 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 Adjusted 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 adjusted 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 Adjusted Segment Information to GAAP Information" table.
Chicago Bridge & Iron Company N.V. Reconciliation of Non-GAAP Supplemental Adjusted Segment Information to GAAP Information (in thousands) Three Months Ended Twelve Months Ended ------------------ March 31, 2015 June 30, 2015 September 30, 2015 December 31, 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 % of % of % of % of Revenue Revenue Revenue Revenue 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