THE WOODLANDS, Texas,
Oct. 23, 2014 /PRNewswire/
-- CB&I (NYSE: CBI) today reported adjusted net income for
the third quarter of $164.7 million,
or $1.51 per diluted share, excluding
integration related costs of $2.8
million, or $0.03 per diluted
share, up 35 percent from the third quarter 2013. In the quarter
GAAP net income was $161.8 million,
or $1.48 per diluted share, up 37
percent over the comparable period. Revenue for the third
quarter was $3.4 billion, up from
$3.0 billion, or 13 percent from the
third quarter 2013. New awards for the third quarter totaled
$3.0 billion, which resulted in a
backlog of $30.7 billion.
"We are pleased with the third quarter results and $13 billion in new awards year to date, which
reflect our ability to capitalize on key end markets we have been
pursuing across our operating groups," said Philip K. Asherman, CB&I's President and
Chief Executive Officer. "Our net cash provided from operating
activities for the quarter was $25.1
million, and our liquidity is solid. We enter the fourth
quarter forecasted to achieve revenue and EPS consistent with
market expectations, and we look forward to a strong start to
2015."
CB&I's third quarter new awards reflect the continuing
development of major oil, gas and petrochemical projects in
North America, robust storage and
fabrication activity in the Middle
East and high demand for technology solutions globally,
particularly in Asia Pacific and
the Middle East. Significant
awards by end markets included LNG, ranging from additional scope
to front end engineering and design (FEED) for LNG export terminals
in North America; Petrochemicals,
ranging from technology and engineering for polypropylene and
gasification units in China to
on-purpose propylene in Europe;
Refining, including technology and storage in the Middle East and Asia; and Gas Processing, including the supply
of process modules in North
America.
Earnings Conference Call
CB&I will host a webcast on Oct.
23 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 the most complete energy infrastructure
focused company in the world and a major provider of government
services. With 125 years of experience and the expertise of
approximately 55,000 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.
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, 2013, 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
|
|
Nine
Months
|
|
|
Ended September
30,
|
|
Ended September
30,
|
|
|
2014
|
|
|
|
|
2013
|
|
|
2014
|
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
3,380,733
|
|
|
|
|
$
|
2,992,050
|
|
|
$
|
9,603,244
|
|
|
|
|
$
|
8,094,270
|
|
|
Cost of
revenue
|
|
2,987,539
|
|
|
|
|
2,675,481
|
|
|
8,527,473
|
|
|
|
|
7,234,466
|
|
|
Gross
profit
|
|
393,194
|
|
|
|
|
316,569
|
|
|
1,075,771
|
|
|
|
|
859,804
|
|
|
% of
Revenue
|
|
11.6
|
%
|
|
|
|
10.6
|
%
|
|
11.2
|
%
|
|
|
|
10.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expense
|
|
92,585
|
|
|
|
|
93,699
|
|
|
309,783
|
|
|
|
|
280,564
|
|
|
% of
Revenue
|
|
2.7
|
%
|
|
|
|
3.1
|
%
|
|
3.2
|
%
|
|
|
|
3.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangibles
amortization
|
|
16,789
|
|
|
|
|
17,411
|
|
|
49,845
|
|
|
|
|
42,682
|
|
|
Equity
earnings
|
|
(6,673)
|
|
|
|
|
(5,734)
|
|
|
(14,003)
|
|
|
|
|
(16,137)
|
|
|
Other operating
(income) expense, net
|
|
(132)
|
|
|
|
|
3,800
|
|
|
(777)
|
|
|
|
|
2,136
|
|
|
Acquisition and
integration related costs
|
|
4,563
|
|
|
|
|
5,257
|
|
|
22,167
|
|
|
|
|
76,477
|
|
|
Income from
operations
|
|
286,062
|
|
|
|
|
202,136
|
|
|
708,756
|
|
|
|
|
474,082
|
|
|
% of
Revenue
|
|
8.5
|
%
|
|
|
|
6.8
|
%
|
|
7.4
|
%
|
|
|
|
5.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(21,337)
|
|
|
|
|
(22,569)
|
|
|
(61,899)
|
|
|
|
|
(66,072)
|
|
|
Interest
income
|
|
2,584
|
|
|
|
|
1,340
|
|
|
6,121
|
|
|
|
|
5,209
|
|
|
Income before
taxes
|
|
267,309
|
|
|
|
|
180,907
|
|
|
652,978
|
|
|
|
|
413,219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(83,419)
|
|
|
|
|
(47,944)
|
|
|
(199,276)
|
|
|
|
|
(117,684)
|
|
|
Net income
|
|
183,890
|
|
|
|
|
132,963
|
|
|
453,702
|
|
|
|
|
295,535
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to noncontrolling interests
|
|
(22,048)
|
|
|
|
|
(15,275)
|
|
|
(60,505)
|
|
|
|
|
(38,196)
|
|
|
Net income
attributable to CB&I
|
|
$
|
161,842
|
|
|
|
|
$
|
117,688
|
|
|
$
|
393,197
|
|
|
|
|
$
|
257,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to CB&I per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.50
|
|
|
|
|
$
|
1.10
|
|
|
$
|
3.64
|
|
|
|
|
$
|
2.44
|
|
|
Diluted
|
|
$
|
1.48
|
|
|
|
|
$
|
1.08
|
|
|
$
|
3.61
|
|
|
|
|
$
|
2.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
108,199
|
|
|
|
|
107,277
|
|
|
107,993
|
|
|
|
|
105,398
|
|
|
Diluted
|
|
109,209
|
|
|
|
|
108,665
|
|
|
109,061
|
|
|
|
|
106,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends on
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount
|
|
$
|
7,574
|
|
|
|
|
$
|
5,370
|
|
|
$
|
22,700
|
|
|
|
|
$
|
16,078
|
|
|
Per share
|
|
$
|
0.07
|
|
|
|
|
$
|
0.05
|
|
|
$
|
0.21
|
|
|
|
|
$
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Supplemental Information
|
|
(amounts adjusted
to exclude Shaw acquisition and integration related costs)
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income from
operations
|
|
$
|
290,625
|
|
|
|
|
$
|
207,393
|
|
|
$
|
730,923
|
|
|
|
|
$
|
550,559
|
|
|
Adjusted % of
Revenue
|
|
8.6
|
%
|
|
|
|
6.9
|
%
|
|
7.6
|
%
|
|
|
|
6.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to CB&I
|
|
$
|
164,671
|
|
|
|
|
$
|
121,344
|
|
|
$
|
407,425
|
|
|
|
|
$
|
318,521
|
|
|
Adjusted net income
attributable to CB&I per share (diluted)
|
|
$
|
1.51
|
|
|
|
|
$
|
1.12
|
|
|
$
|
3.74
|
|
|
|
|
$
|
2.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The exclusion of Shaw
acquisition and integration related 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
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
of
|
|
|
|
|
%
of
|
|
|
|
|
%
of
|
|
|
|
|
%
of
|
|
NEW AWARDS
(1)
|
|
|
|
|
Total
|
|
|
|
|
Total
|
|
|
|
|
Total
|
|
|
|
|
Total
|
|
Engineering,
Construction and Maintenance (2)
|
|
$
|
1,761,714
|
|
|
59%
|
|
$
|
1,371,797
|
|
|
55%
|
|
$
|
9,892,797
|
|
|
76%
|
|
$
|
4,095,213
|
|
|
59%
|
|
Fabrication
Services
|
|
478,987
|
|
|
16%
|
|
681,068
|
|
|
27%
|
|
1,360,301
|
|
|
11%
|
|
1,882,205
|
|
|
27%
|
|
Technology
|
|
387,488
|
|
|
13%
|
|
139,764
|
|
|
6%
|
|
817,134
|
|
|
6%
|
|
399,906
|
|
|
6%
|
|
Environmental
Solutions (2)
|
|
347,816
|
|
|
12%
|
|
305,557
|
|
|
12%
|
|
906,339
|
|
|
7%
|
|
580,598
|
|
|
8%
|
|
Total
|
|
$
|
2,976,005
|
|
|
|
|
$
|
2,498,186
|
|
|
|
|
$
|
12,976,571
|
|
|
|
|
$
|
6,957,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
of
|
|
|
|
|
%
of
|
|
|
|
|
%
of
|
|
|
|
|
%
of
|
|
REVENUE
|
|
|
|
|
Total
|
|
|
|
|
Total
|
|
|
|
|
Total
|
|
|
|
|
Total
|
|
Engineering,
Construction and Maintenance (2)
|
|
$
|
2,370,342
|
|
|
70%
|
|
$
|
1,907,799
|
|
|
64%
|
|
$
|
6,629,897
|
|
|
69%
|
|
$
|
5,204,379
|
|
|
64%
|
|
Fabrication
Services
|
|
631,450
|
|
|
19%
|
|
707,026
|
|
|
24%
|
|
1,903,062
|
|
|
20%
|
|
1,877,545
|
|
|
23%
|
|
Technology
|
|
144,975
|
|
|
4%
|
|
155,941
|
|
|
5%
|
|
444,529
|
|
|
5%
|
|
468,723
|
|
|
6%
|
|
Environmental
Solutions (2)
|
|
233,966
|
|
|
7%
|
|
221,284
|
|
|
7%
|
|
625,756
|
|
|
6%
|
|
543,623
|
|
|
7%
|
|
Total
|
|
$
|
3,380,733
|
|
|
|
|
$
|
2,992,050
|
|
|
|
|
$
|
9,603,244
|
|
|
|
|
$
|
8,094,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
of
|
|
|
|
|
%
of
|
|
|
|
|
%
of
|
|
|
|
|
%
of
|
|
INCOME FROM
OPERATIONS
|
|
|
|
|
Revenue
|
|
|
|
|
Revenue
|
|
|
|
|
Revenue
|
|
|
|
|
Revenue
|
|
Engineering,
Construction and Maintenance (2)
|
|
$
|
164,464
|
|
|
6.9%
|
|
$
|
86,382
|
|
|
4.5%
|
|
$
|
397,411
|
|
|
6.0%
|
|
$
|
239,640
|
|
|
4.6%
|
|
Fabrication
Services
|
|
57,578
|
|
|
9.1%
|
|
72,184
|
|
|
10.2%
|
|
168,705
|
|
|
8.9%
|
|
184,103
|
|
|
9.8%
|
|
Technology
|
|
48,925
|
|
|
33.7%
|
|
44,804
|
|
|
28.7%
|
|
134,891
|
|
|
30.3%
|
|
116,710
|
|
|
24.9%
|
|
Environmental
Solutions (2)
|
|
19,658
|
|
|
8.4%
|
|
4,023
|
|
|
1.8%
|
|
29,916
|
|
|
4.8%
|
|
10,106
|
|
|
1.9%
|
|
Total operating
groups
|
|
$
|
290,625
|
|
|
8.6%
|
|
$
|
207,393
|
|
|
6.9%
|
|
$
|
730,923
|
|
|
7.6%
|
|
$
|
550,559
|
|
|
6.8%
|
|
Acquisition and
integration related costs
|
|
(4,563)
|
|
|
|
|
(5,257)
|
|
|
|
|
(22,167)
|
|
|
|
|
(76,477)
|
|
|
|
|
Total
|
|
$
|
286,062
|
|
|
8.5%
|
|
$
|
202,136
|
|
|
6.8%
|
|
$
|
708,756
|
|
|
7.4%
|
|
$
|
474,082
|
|
|
5.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
New awards represents
the value of new project commitments received by the Company during
a given period.
|
|
|
|
(2)
|
The 2013 results for
a large engineering, procurement and construction project in the
U.S. that was previously reported within our Environmental
Solutions (formerly Government Solutions) operating group has been
reclassified to our Engineering, Construction and Maintenance
operating group to conform to its classification in 2014,
reflecting the present management oversight for the
project.
|
|
Chicago Bridge
& Iron Company N.V.
|
|
Condensed
Consolidated Balance Sheets
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2014
|
|
|
2013
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
$
|
3,393,788
|
|
|
$
|
3,389,565
|
|
|
Equity
investments
|
|
103,684
|
|
|
101,754
|
|
|
Property and
equipment, net
|
|
776,361
|
|
|
788,797
|
|
|
Goodwill and other
intangibles, net
|
|
4,777,562
|
|
|
4,854,191
|
|
|
Other non-current
assets
|
|
219,477
|
|
|
255,286
|
|
|
Total
assets
|
|
$
|
9,270,872
|
|
|
$
|
9,389,593
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current maturities of
long-term debt and other borrowings
|
|
$
|
650,158
|
|
|
$
|
215,000
|
|
|
Other current
liabilities
|
|
3,756,682
|
|
|
4,582,624
|
|
|
Long-term
debt
|
|
1,591,179
|
|
|
1,625,000
|
|
|
Other non-current
liabilities
|
|
406,048
|
|
|
459,531
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
2,866,805
|
|
|
2,507,438
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
9,270,872
|
|
|
$
|
9,389,593
|
|
|
|
Chicago Bridge
& Iron Company N.V.
|
|
Condensed
Consolidated Statements of Cash Flows and Other Financial
Data
|
|
(in
thousands)
|
|
|
|
|
|
Nine
Months
|
|
|
Ended September
30,
|
|
|
2014
|
|
|
2013
|
|
|
CASH
FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
$
|
(349,293)
|
|
|
$
|
(193,979)
|
|
|
Cash flows from
investing activities
|
|
(74,573)
|
|
|
(1,797,258)
|
|
|
Cash flows from
financing activities
|
|
302,348
|
|
|
1,901,483
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(27,540)
|
|
|
(10,678)
|
|
|
Decrease in cash and
cash equivalents
|
|
(149,058)
|
|
|
(100,432)
|
|
|
Cash and cash
equivalents, beginning of the year
|
|
420,502
|
|
|
643,395
|
|
|
Cash and cash
equivalents, end of the period
|
|
$
|
271,444
|
|
|
$
|
542,963
|
|
|
|
|
|
|
|
|
|
OTHER FINANCIAL
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in
receivables, net
|
|
$
|
(222,207)
|
|
|
$
|
(242,507)
|
|
|
Change in contracts
in progress, net
|
|
(994,458)
|
|
|
(385,098)
|
|
|
Decrease (increase)
in inventory
|
|
17,106
|
|
|
(11,985)
|
|
|
Increase (decrease)
in accounts payable
|
|
68,105
|
|
|
(98,338)
|
|
|
Change in contract
capital
|
|
$
|
(1,131,454)
|
|
|
$
|
(737,928)
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
$
|
135,281
|
|
|
$
|
130,685
|
|
|
Capital
expenditures
|
|
$
|
79,511
|
|
|
$
|
60,524
|
|
|
|
|
|
|
|
|
|
|
September 30,
2014
|
|
December 31,
2013
|
|
Backlog
(1)
|
|
$
|
30,660,564
|
|
|
$
|
27,794,212
|
|
|
|
|
|
|
|
|
|
(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
|
|
Nine
Months
|
|
|
Ended September
30,
|
|
Ended September
30,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income
from operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
$
|
286,062
|
|
|
$
|
202,136
|
|
|
$
|
708,756
|
|
|
$
|
474,082
|
|
|
Acquisition and
integration related costs
|
|
4,563
|
|
|
5,257
|
|
|
22,167
|
|
|
76,477
|
|
|
Adjusted income from
operations
|
|
$
|
290,625
|
|
|
$
|
207,393
|
|
|
$
|
730,923
|
|
|
$
|
550,559
|
|
|
Adjusted % of
Revenue
|
|
8.6
|
%
|
|
6.9
|
%
|
|
7.6
|
%
|
|
6.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income attributable to CB&I
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to CB&I
|
|
$
|
161,842
|
|
|
$
|
117,688
|
|
|
$
|
393,197
|
|
|
$
|
257,339
|
|
|
Acquisition and
integration related costs, net of tax (1)
|
|
2,829
|
|
|
3,656
|
|
|
14,228
|
|
|
61,182
|
|
|
Adjusted net income
attributable to CB&I
|
|
$
|
164,671
|
|
|
$
|
121,344
|
|
|
$
|
407,425
|
|
|
$
|
318,521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income attributable to CB&I per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to CB&I
|
|
$
|
1.48
|
|
|
$
|
1.08
|
|
|
$
|
3.61
|
|
|
$
|
2.41
|
|
|
Acquisition and
integration related costs, net of tax (1)
|
|
0.03
|
|
|
0.04
|
|
|
0.13
|
|
|
0.57
|
|
|
Adjusted net income
attributable to CB&I
|
|
$
|
1.51
|
|
|
$
|
1.12
|
|
|
$
|
3.74
|
|
|
$
|
2.98
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The three and nine
month periods ended September 30, 2014 include $4,563 and $22,167,
respectively, of integration related costs, less the tax impact of
$1,734 and $7,939, respectively. The per share amounts for the
three and nine month periods are based upon diluted weighted
average shares of 109,209 and 109,061, respectively.
|
|
|
|
The three and nine
month periods ended September 30, 2013 include $5,257 and $76,477,
respectively, of acquisition and integration related costs, and the
nine month period ended September 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 2013). These costs total $5,257 and $86,994, less
the tax impact of $1,601 and $25,812, respectively. The per share
amounts for the three and nine month periods are based upon diluted
weighted average shares of 108,665 and 106,874,
respectively.
|
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SOURCE CB&I