Chicago Bridge & Iron Company N.V. : CB&I Reports Second Quarter 2012 Results
07/24/2012| 04:10pm US/Eastern
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Earnings per Share up 19% over Q2 2011
CB&I
(NYSE: CBI) today reported net income of $72.3 million, or $0.74 per
diluted share, for the second quarter of 2012, compared with $61.9
million, or $0.62 per diluted share, in the second quarter of 2011.
Revenue for the quarter was $1.3 billion versus $1.1 billion in the
comparable period. New awards totaled $1.8 billion compared with $1.2
billion, increasing the company's backlog to over $10.0 billion.
During the quarter, the company returned $23.4 million to shareholders,
which included $18.6 million of stock repurchases and $4.8 million
through quarterly cash dividends. Cash and cash equivalents as of June
30 were $552.8 million.
"I am extremely pleased to report that each of our business sectors, Lummus
Technology, Project Engineering and Construction and Steel
Plate Structures had a very strong quarter, leading to record levels
of backlog and net income for our company," said Philip K. Asherman,
President and CEO. "Our market momentum, operational execution and
financial performance have been trending as expected, providing us with
greater visibility and confidence into the full year. As a result we are
adjusting our 2012 full-year guidance."
CB&I's updated guidance for 2012 is:
New Awards:
$5.5 - $7.0 billion
Revenue:
$5.4 - $5.6 billion
Earnings per Share:
$2.85 - $3.05
Earnings Conference Call
CB&I will host a webcast on July 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 is available at www.CBI.comInvestor Relations.
About CB&I
CB&I
(NYSE: CBI) engineers and constructs some of the world's largest energy
infrastructure projects. With premier process
technology, proven EPC
expertise, and unrivaled storage
tank experience, CB&I executes projects from concept to completion.
Safely. Reliably. Globally. For more information, visit www.CBI.com.
Forward-Looking Statement
This 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, 2011, 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
Six Months
Ended June 30,
Ended June 30,
2012
2011
2012
2011
Revenue
$
1,299,529
$
1,085,705
$
2,500,796
$
2,039,976
Cost of revenue
1,140,644
945,612
2,188,647
1,763,167
Gross profit
158,885
140,093
312,149
276,809
% of Revenue
12.2
%
12.9
%
12.5
%
13.6
%
Selling and administrative expense
52,392
48,475
115,624
106,140
% of Revenue
4.0
%
4.5
%
4.6
%
5.2
%
Intangibles amortization
6,037
6,372
12,129
12,664
Other operating expense (income), net
1,327
54
1,262
(844
)
Equity earnings
(4,010
)
(3,204
)
(5,810
)
(4,550
)
Income from operations
103,139
88,396
188,944
163,399
% of Revenue
7.9
%
8.1
%
7.6
%
8.0
%
Interest expense
(2,831
)
(3,538
)
(4,943
)
(6,595
)
Interest income
2,288
1,743
4,475
3,115
Income before taxes
102,596
86,601
188,476
159,919
Income tax expense
(29,752
)
(24,898
)
(54,658
)
(46,652
)
Net income
72,844
61,703
133,818
113,267
Less: Net (income) loss attributable to noncontrolling interests
(524
)
191
(2,011
)
(867
)
Net income attributable to CB&I
$
72,320
$
61,894
$
131,807
$
112,400
Net income attributable to CB&I per share:
Basic
$
0.75
$
0.63
$
1.36
$
1.14
Diluted
$
0.74
$
0.62
$
1.34
$
1.12
Weighted average shares outstanding:
Basic
96,401
98,449
96,829
98,494
Diluted
97,632
100,163
98,442
100,503
Cash dividends on shares:
Amount
$
4,832
$
4,930
$
9,717
$
9,920
Per Share
$
0.05
$
0.05
$
0.10
$
0.10
CHICAGO BRIDGE & IRON COMPANY N.V. SEGMENT
INFORMATION (in thousands)
Three Months Ended June 30,
Six Months Ended June 30,
2012
2011
2012
2011
% of
% of
% of
% of
NEW AWARDS*
Total
Total
Total
Total
Steel Plate Structures
$
725,725
40
%
$
370,541
31
%
$
1,136,648
32
%
$
662,085
30
%
Project Engineering and Construction
792,543
43
%
767,388
63
%
1,947,938
55
%
1,354,091
61
%
Lummus Technology
311,493
17
%
77,660
6
%
440,536
13
%
210,976
9
%
Total
$
1,829,761
$
1,215,589
$
3,525,122
$
2,227,152
% of
% of
% of
% of
REVENUE
Total
Total
Total
Total
Steel Plate Structures
$
499,530
38
%
$
456,357
42
%
$
919,461
37
%
$
825,065
41
%
Project Engineering and Construction
711,349
55
%
541,647
50
%
1,392,632
56
%
1,006,217
49
%
Lummus Technology
88,650
7
%
87,701
8
%
188,703
7
%
208,694
10
%
Total
$
1,299,529
$
1,085,705
$
2,500,796
$
2,039,976
% of
% of
% of
% of
INCOME FROM OPERATIONS
Revenue
Revenue
Revenue
Revenue
Steel Plate Structures
$
48,421
9.7
%
$
47,489
10.4
%
$
86,717
9.4
%
$
84,413
10.2
%
Project Engineering and Construction
32,620
4.6
%
24,476
4.5
%
57,530
4.1
%
39,491
3.9
%
Lummus Technology
22,098
24.9
%
16,431
18.7
%
44,697
23.7
%
39,495
18.9
%
Total
$
103,139
7.9
%
$
88,396
8.1
%
$
188,944
7.6
%
$
163,399
8.0
%
* New awards represents the value of new project commitments
received by the Company during a given period.
CHICAGO BRIDGE & IRON COMPANY N.V. CONDENSED
CONSOLIDATED BALANCE SHEETS (in thousands)
June 30,
December 31,
2012
2011
ASSETS
Current assets
$
1,649,855
$
1,661,321
Equity investments
85,515
95,687
Property and equipment, net
274,120
262,003
Goodwill and other intangibles, net
1,093,572
1,114,512
Other non-current assets
145,285
158,460
Total assets
$
3,248,347
$
3,291,983
LIABILITIES AND SHAREHOLDERS' EQUITY
Current maturity of long-term debt
$
40,000
$
40,000
Other current liabilities
1,630,128
1,703,424
Other non-current liabilities
333,828
352,129
Shareholders' equity
1,244,391
1,196,430
Total liabilities and shareholders' equity
$
3,248,347
$
3,291,983
CHICAGO BRIDGE & IRON COMPANY N.V. CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS AND OTHER FINANCIAL DATA (in
thousands)
Six Months
Ended June 30,
2012
2011
CASH FLOWS
Cash flows from operating activities
$
28,794
$
(34,443
)
Cash flows from investing activities
(33,050
)
(13,262
)
Cash flows from financing activities
(111,813
)
(83,737
)
Effect of exchange rate changes on cash and cash equivalents
(2,914
)
25,582
Decrease in cash and cash equivalents
(118,983
)
(105,860
)
Cash and cash equivalents, beginning of the year
671,811
481,738
Cash and cash equivalents, end of the period
$
552,828
$
375,878
OTHER FINANCIAL DATA
Increase in receivables, net
$
(127,796
)
$
(216,547
)
Change in contracts in progress, net
(66,746
)
(19,596
)
Increase in accounts payable
33,159
87,101
Change in contract capital
$
(161,383
)
$
(149,042
)
Depreciation and amortization
$
33,403
$
34,545
Capital expenditures
$
34,187
$
15,763
Backlog *
$
10,014,147
$
7,257,390
* 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.
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