CB&I Reports Strong 2013 Second Quarter Results

Jul 30, 2013, 16:21 ET from CB&I

THE WOODLANDS, Texas, July 30, 2013 /PRNewswire/ -- CB&I (NYSE: CBI) today reported net income for the second quarter of $106.0 million, or $0.98 per diluted share, including the after tax impact of acquisition-related costs of $6.3 million, or $0.06 per diluted share. Revenue for the second quarter was $2.9 billion with new awards of $2.5 billion, resulting in a backlog of $24.5 billion.

"I am pleased to report that CB&I delivered strong execution in the second quarter," said Philip K. Asherman, President and CEO. "The company continued to deliver growth in revenue and income from operations. Revenue was up 119% from $1.3 billion in the second quarter 2012, and adjusted income from operations was $195.4 million, up 87% from the comparable period last year. CB&I reported second quarter adjusted earnings per share of $1.04."

"Our operational execution and financial performance have been trending as expected, and the market momentum continues but with timing of anticipated major EPC awards and delays due to governmental approvals, we have adjusted our new awards guidance for the year, and maintain our guidance for revenue and adjusted earnings per share," continued Asherman.

CB&I's updated guidance for 2013 is:

New Awards:

$11.0 - $15.0 billion

Revenue:

$10.7 - $11.2 billion

Adjusted Earnings per Share:

$4.00 - $4.35

Earnings Conference Call

CB&I will host a webcast on July 30 at 4:00 p.m. CDT (5:00 p.m. EDT) 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. Drawing upon more than a century of experience and the expertise of approximately 50,000 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

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, 2012, 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,

2013

2012

2013

2012

Revenue

$   2,850,791

$   1,299,529

$   5,102,220

$   2,500,796

Cost of revenue

2,553,700

1,140,644

4,558,985

2,188,647

Gross profit

297,091

158,885

543,235

312,149

% of Revenue

10.4%

12.2%

10.6%

12.5%

Selling and administrative expense

92,897

52,392

186,865

115,624

% of Revenue

3.3%

4.0%

3.7%

4.6%

Intangibles amortization

16,083

6,037

25,271

12,129

Equity earnings

(5,918)

(4,010)

(10,403)

(5,810)

Other operating income, net

(1,367)

(173)

(1,664)

(238)

Acquisition-related costs

9,964

1,500

71,220

1,500

Income from operations

185,432

103,139

271,946

188,944

% of Revenue

6.5%

7.9%

5.3%

7.6%

Interest expense

(20,757)

(2,831)

(43,503)

(4,943)

Interest income 

1,998

2,288

3,869

4,475

Income before taxes

166,673

102,596

232,312

188,476

Income tax expense 

(46,973)

(29,752)

(69,740)

(54,658)

Net income

119,700

72,844

162,572

133,818

Less: Net income attributable to noncontrolling interests

(13,657)

(524)

(22,921)

(2,011)

Net income attributable to CB&I

$      106,043

$        72,320

$      139,651

$      131,807

Net income attributable to CB&I per share:

Basic

$           0.99

$           0.75

$           1.34

$           1.36

Diluted

$           0.98

$           0.74

$           1.32

$           1.34

Weighted average shares outstanding:

Basic

107,056

96,401

104,444

96,829

Diluted

108,392

97,632

105,963

98,442

Cash dividends on shares:

Amount

$         5,363

$         4,832

$       10,708

$         9,717

Per Share

$           0.05

$           0.05

$           0.10

$           0.10

Non-GAAP Supplemental Information

(amounts adjusted to exclude Shaw acquisition-related transaction costs) (1)

Adjusted income from operations

$      195,396

$      104,639

$      343,166

$       190,444

Adjusted % of Revenue

6.9%

8.1%

6.7%

7.6%

Adjusted net income attributable to CB&I

$      112,321

$        73,288

$      197,177

$      132,775

Adjusted net income attributable to CB&I per share (diluted)

$            1.04

$           0.75

$            1.86

$            1.35

(1)

The exclusion of Shaw acquisition-related transaction 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 June 30,

Six Months Ended June 30, 

2013

2012

2013

2012

 % of 

 Total 

 % of 

 Total 

 % of 

 Total 

 % of 

 Total 

NEW AWARDS (1)

 Engineering, Construction and Maintenance 

$   1,526,014

61%

$  1,350,101

74%

$  2,526,464

57%

$  2,505,496

71%

 Fabrication Services 

493,431

20%

168,167

9%

1,201,137

27%

579,090

16%

 Technology 

107,394

4%

311,493

17%

260,142

6%

440,536

13%

 Government Solutions 

386,948

15%

-

0%

471,993

10%

-

0%

    Total  

$   2,513,787

$  1,829,761

$  4,459,736

$  3,525,122

 % of 

 Total 

 % of 

 Total 

 % of 

 Total 

 % of 

 Total 

REVENUE

 Engineering, Construction and Maintenance 

$   1,660,979

58%

$     759,817

58%

$  3,091,114

61%

$  1,469,598

59%

 Fabrication Services 

675,471

24%

451,062

35%

1,170,519

23%

842,495

34%

 Technology 

161,300

6%

88,650

7%

312,782

6%

188,703

7%

 Government Solutions 

353,041

12%

-

0%

527,805

10%

-

0%

    Total  

$   2,850,791

$  1,299,529

$  5,102,220

$  2,500,796

 % of 

 Revenue 

 % of 

 Revenue 

 % of 

 Revenue 

 % of 

 Revenue 

INCOME FROM OPERATIONS

 Engineering, Construction and Maintenance 

$       81,473

4.9%

$       36,035

4.7%

$     144,685

4.7%

$       63,455

4.3%

 Fabrication Services 

66,895

9.9%

46,388

10.3%

111,919

9.6%

82,174

9.8%

 Technology 

36,364

22.5%

22,216

25.1%

71,906

23.0%

44,815

23.7%

 Government Solutions 

10,664

3.0%

-

0.0%

14,656

2.8%

-

0.0%

 Total operating groups 

$     195,396

6.9%

$     104,639

8.1%

$     343,166

6.7%

$     190,444

7.6%

      Acquisition-related costs 

(9,964)

(1,500)

(71,220)

(1,500)

    Total 

$     185,432

6.5%

$     103,139

7.9%

$     271,946

5.3%

$     188,944

7.6%

(1)

 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,

2013

2012

ASSETS

Current assets

$               3,584,835

$               2,721,555

Equity investments

96,042

97,267

Property and equipment, net

801,889

285,871

Goodwill and other intangibles, net

3,979,221

1,093,019

Other non-current assets

216,724

131,963

    Total assets

$               8,678,711

$               4,329,675

LIABILITIES AND SHAREHOLDERS' EQUITY

Current maturities of long-term debt and revolver borrowings

$                  356,500

$                          -

Other current liabilities

3,930,257

1,772,522

Long-term debt 

1,675,000

800,000

Other non-current liabilities

630,032

360,843

Shareholders' equity

2,086,922

1,396,310

    Total liabilities and shareholders' equity

$               8,678,711

$               4,329,675

Chicago Bridge & Iron Company N.V.

Condensed Consolidated Statements of Cash Flows and Other Financial Data

(in thousands)

Six Months

Ended June 30,

2013

2012

CASH FLOWS

Cash flows from operating activities

$                 (300,742)

$                    28,794

Cash flows from investing activities

(1,826,975)

(33,050)

Cash flows from financing activities

1,939,717

(111,813)

Effect of exchange rate changes on cash and cash equivalents

(28,786)

(2,914)

Decrease in cash and cash equivalents

(216,786)

(118,983)

Cash and cash equivalents, beginning of the year

643,395

671,811

Cash and cash equivalents, end of the period

$                  426,609

$                  552,828

OTHER FINANCIAL DATA

Increase in receivables, net

$                 (205,458)

$                 (127,796)

Change in contracts in progress, net

(221,071)

(66,746)

Increase in inventory

(13,709)

(7,106)

(Decrease) increase in accounts payable

(97,355)

33,159

Change in contract capital

$                 (537,593)

$                 (168,489)

Depreciation and amortization 

$                    79,170

$                    33,403

Capital expenditures

$                    40,867

$                    34,187

June 30, 2013

December 31, 2012

Backlog (1)

$             24,493,372

$             10,928,818

(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

Six Months

Ended June 30,

Ended June 30,

2013

2012

2013

2012

Adjusted income from operations

Income from operations

$185,432

$103,139

$271,946

$188,944

Acquisition-related costs

9,964

1,500

71,220

1,500

Adjusted income from operations

$195,396

$104,639

$343,166

$190,444

Adjusted % of Revenue

6.9%

8.1%

6.7%

7.6%

Adjusted net income attributable to CB&I

Net income attributable to CB&I

$106,043

$  72,320

$139,651

$131,807

Acquisition-related transaction costs, net of tax (1)

6,278

968

57,526

968

Adjusted net income attributable to CB&I

$112,321

$  73,288

$197,177

$132,775

Adjusted net income attributable to CB&I per share

Net income attributable to CB&I

$     0.98

$     0.74

$     1.32

$     1.34

Acquisition-related transaction costs, net of tax (1)

0.06

0.01

0.54

0.01

Adjusted net income attributable to CB&I

$     1.04

$     0.75

$     1.86

$     1.35

(1)

The three and six month periods ended June 30, 2013 include $9,964 and $71,220 of acquisition-related costs, respectively, and the six month period ended June 30, 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). These acquisition-related transaction costs total $9,964 and $81,737, less the tax impact of $3,686 and $24,211, respectively. The per share amounts for the three and six month periods are based upon diluted weighted average shares of 108,392 and 105,963, respectively.  

The three and six month periods ended June 30, 2012 include $1,500 of acquisition-related costs, less the tax impact of $532 . The per share amounts for the three and six month periods are based upon diluted weighted average shares of 97,632 and 98,442, respectively.

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SOURCE CB&I



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