THE WOODLANDS, Texas, Oct. 27, 2016 /PRNewswire/ -- CB&I (NYSE: CBI) today reported net income of $121.8 million, or $1.20 per diluted share, for the third quarter of 2016, as compared to a net loss of $740.4 million, or $7.02 per diluted share, for the third quarter of 2015. On an adjusted basis, net income for the third quarter of 2015 was $135.9 million, or $1.28 per diluted share.
Third quarter 2016 revenue was $2.8 billion, as compared to $3.3 billion in the third quarter of 2015, or $2.8 billion on an adjusted basis.
Net cash provided by operating activities totaled $176 million in the period, for a total of $495 million year-to-date.
New awards for the third quarter were $2.7 billion, as compared to $4.0 billion for the third quarter of 2015, or $3.9 billion on an adjusted basis. The company's backlog at the end of the third quarter of 2016 was $20 billion.
"Our results for the third quarter were strong, despite the headwinds of the market and movement on the timing of several new awards," said Philip K. Asherman, CB&I's President and Chief Executive Officer. "New awards, revenues, operating income and margins, and earnings per share all reached their highest points year-to-date. We continue to be optimistic with a very active prospect list that we expect to see awarded in the fourth quarter and into 2017."
Earnings Conference Call
CB&I will host a webcast on October 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 September 30, Nine Months Ended September 30, ------------------------------- 2016 2015 2016 2015 ---- ---- ---- ---- NEW AWARDS (1) % of % of % of % of Total Total Total Total Engineering & Construction $1,492,429 55% $2,407,835 60% $2,779,238 49% $4,923,193 50% Fabrication Services 225,716 8% 840,658 21% 852,383 15% 2,612,747 26% Technology 119,348 5% 97,539 3% 310,737 5% 255,648 3% Capital Services 878,930 32% 654,270 16% 1,730,303 31% 2,084,413 21% Total $2,716,423 $4,000,302 $5,672,661 $9,876,001 ========== ========== ========== ========== REVENUE % of % of % of % of Total Total Total Total Engineering & Construction $1,660,149 60% $1,946,426 59% $4,719,603 58% $5,681,134 59% Fabrication Services 512,772 19% 640,201 19% 1,556,972 19% 1,889,340 20% Technology 90,487 3% 118,269 3% 219,561 3% 310,605 3% Capital Services 512,769 18% 616,786 19% 1,643,389 20% 1,773,461 18% Total $2,776,177 $3,321,682 $8,139,525 $9,654,540 ========== ========== ========== ========== INCOME (LOSS) FROM OPERATIONS % of % of % of % of Revenue Revenue Revenue Revenue Engineering & Construction (2) $133,946 8.1% $(1,007,354) (51.8)% $341,504 7.2% $(694,469) (12.2)% Fabrication Services 55,624 10.8% 61,408 9.6% 160,726 10.3% 169,744 9.0% Technology 27,310 30.2% 31,911 27.0% 76,718 34.9% 116,676 37.6% Capital Services 16,642 3.2% 24,073 3.9% 44,647 2.7% 48,992 2.8% Total $233,522 8.4% $(889,962) (26.8)% $623,595 7.7% $(359,057) (3.7)% ======== ========= ======== ========= BACKLOG (3) September 30, 2016 % of Total December 31, 2015 % of Total ------------------ ---------- ----------------- ---------- Engineering & Construction $11,070,405 56% $12,892,804 57% Fabrication Services 2,309,333 12% 3,107,500 14% Technology 940,960 5% 963,058 4% Capital Services 5,451,159 27% 5,680,577 25% Total $19,771,857 $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) During the three months ended September 30, 2015, we recorded a non-cash pre-tax charge of $1,160,480 within our Engineering & Construction operating group related to the disposition of our nuclear operations. (3) 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 Nine Months Ended September 30, Ended September 30, ------------------- ------------------- 2016 2015 2016 2015 Revenue $2,776,177 $3,321,682 $8,139,525 $9,654,540 Cost of revenue 2,449,609 2,943,965 7,230,826 8,523,529 --------- --------- --------- --------- Gross profit 326,568 377,717 908,699 1,131,011 % of Revenue 11.8% 11.4% 11.2% 11.7% Selling and administrative expense 87,814 93,672 263,142 287,926 % of Revenue 3.2% 2.8% 3.2% 3.0% Intangibles amortization 10,485 14,948 32,256 45,542 Equity earnings (5,394) (1,154) (11,369) (5,750) Goodwill impairment - 453,100 - 453,100 Loss on net assets held for sale and intangible assets impairment - 707,380 - 707,380 Other operating expense (income), net 141 (267) 1,075 1,870 --- ---- ----- ----- Income (loss) from operations 233,522 (889,962) 623,595 (359,057) % of Revenue 8.4% (26.8)% 7.7% (3.7)% Interest expense (26,433) (25,025) (78,404) (68,425) Interest income 2,608 2,058 8,156 6,290 ----- ----- ----- ----- Income (loss) before taxes 209,697 (912,929) 553,347 (421,192) Income tax (expense) benefit (41,278) 187,375 (132,418) 38,275 ------- ------- -------- ------ Net income (loss) 168,419 (725,554) 420,929 (382,917) Less: Net income attributable to noncontrolling interests (46,659) (14,879) (68,405) (55,773) Net income (loss) attributable to CB&I $121,760 $(740,433) $352,524 $(438,690) ======== ========= ======== ========= Net income (loss) attributable to CB&I per share: Basic $1.20 $(7.02) $3.40 $(4.08) Diluted $1.20 $(7.02) $3.37 $(4.08) Weighted average shares outstanding: Basic 101,102 105,454 103,725 107,440 Diluted 101,863 105,454 104,555 107,440 Cash dividends on shares: Amount $6,995 $7,333 $21,726 $22,540 Per share $0.07 $0.07 $0.21 $0.21
Chicago Bridge & Iron Company N.V. Condensed Consolidated Balance Sheets (in thousands) September 30, December 31, 2016 2015 ---- ---- ASSETS Current assets $3,464,952 $3,367,299 Equity investments 159,326 136,845 Property and equipment, net 578,371 604,043 Goodwill and other intangibles, net 4,092,186 4,122,455 Other non-current assets 874,464 961,418 ------- Total assets $9,169,299 $9,192,060 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Current maturities of long-term debt and other borrowings, net $941,686 $800,871 Other current liabilities 4,046,085 4,056,077 Long-term debt, net 1,456,114 1,791,832 Other non-current liabilities 378,558 379,690 Shareholders' equity 2,346,856 2,163,590 Total liabilities and shareholders' equity $9,169,299 $9,192,060 ========== ========== Condensed Consolidated Statements of Cash Flows and Other Financial Data (in thousands) Nine Months Ended September 30, ------------------- 2016 2015 ---- ---- CASH FLOWS Cash flows from operating activities $495,041 $(173,422) Cash flows from investing activities (151,686) (317,868) Cash flows from financing activities (268,422) 621,883 Effect of exchange rate changes on cash and cash equivalents (10,188) (58,016) Increase in cash and cash equivalents 64,745 72,577 Cash and cash equivalents, beginning of the year 550,221 351,323 Cash and cash equivalents, end of the period $614,966 $423,900 ======== ======== OTHER FINANCIAL DATA Decrease (increase) in receivables, net $46,418 $(157,645) Change in contracts in progress, net (252,857) (783,027) Decrease (increase) in inventory 49,473 (13,111) Increase (decrease) in accounts payable 11,830 (28,671) Change in contract capital $(145,136) $(982,454) ========= ========= Depreciation and amortization $93,285 $128,261 Capital expenditures $37,855 $53,894
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