CB&I Reports 2015 First Quarter Results

Chicago Bridge & Iron Company N.V.

Consolidated Statements of Operations

(in thousands, except per share data)

Three Months

Ended March 31,

2015

2014

Revenue

$

3,125,745

$

2,928,132

Cost of revenue

2,755,574

2,626,730

Gross profit

370,171

301,402

% of Revenue

11.8

%

10.3

%

Selling and administrative expense

109,101

119,167

% of Revenue

3.5

%

4.1

%

Intangibles amortization

15,652

16,234

Equity earnings

(4,202)

(4,165)

Other operating expense (income), net

2,822

(384)

Integration related costs

—

8,067

Income from operations

246,798

162,483

% of Revenue

7.9

%

5.5

%

Interest expense

(22,286)

(18,887)

Interest income

2,048

2,060

Income before taxes

226,560

145,656

Income tax expense

(69,811)

(42,910)

Net income

156,749

102,746

Less: Net income attributable to noncontrolling interests

(24,521)

(13,795)

Net income attributable to CB&I

$

132,228

$

88,951

Net income attributable to CB&I per share:

Basic

$

1.22

$

0.83

Diluted

$

1.21

$

0.82

Weighted average shares outstanding:

Basic

108,197

107,677

Diluted

109,261

109,113

Cash dividends on shares:

Amount

$

7,597

$

7,559

Per share

$

0.07

$

0.07

Non-GAAP Supplemental Information

(amounts adjusted to exclude integration related costs) ⁽¹⁾

Adjusted income from operations

$

170,550

Adjusted % of Revenue

5.8

%

Adjusted net income attributable to CB&I

$

94,437

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

$

0.87

⁽¹⁾ The exclusion of 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 March 31,

2015

2014

% of

% of

NEW AWARDS ^{(1), (2)}

Total

Total

Engineering & Construction

$

1,209,407

40%

$

4,494,837

78%

Fabrication Services

927,374

31%

516,729

9%

Technology

77,022

2%

77,446

1%

Capital Services

817,380

27%

708,477

12%

Total

$

3,031,183

$

5,797,489

% of

% of

REVENUE ⁽²⁾

Total

Total

Engineering & Construction

$

1,818,586

58%

$

1,686,181

58%

Fabrication Services

637,809

21%

671,911

23%

Technology

99,361

3%

102,573

3%

Capital Services

569,989

18%

467,467

16%

Total

$

3,125,745

$

2,928,132

% of

% of

INCOME FROM OPERATIONS ⁽²⁾

Revenue

Revenue

Engineering & Construction

$

136,418

7.5%

$

84,636

5.0%

Fabrication Services

52,399

8.2%

46,915

7.0%

Technology

48,024

48.3%

34,669

33.8%

Capital Services

9,957

1.7%

4,330

0.9%

Total operating groups

$

246,798

7.9%

$

170,550

5.8%

  Integration related costs

—

(8,067)

Total

$

246,798

7.9%

$

162,483

5.5%

⁽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 March 31, 2015, we realigned our reportable segments to reflect the present management oversight of our operations. Our maintenance business that was previously reported within our Engineering & Construction operating group (formerly Engineering, Construction & Maintenance) is now reported within our Capital Services operating group (formerly Environmental Solutions), and our engineered products business that was previously reported within our Technology operating group is now reported within our Fabrication Services operating group. Our 2014 segment results were reclassified to reflect the reportable segment realignment.

Chicago Bridge & Iron Company N.V.

Condensed Consolidated Balance Sheets

(in thousands)

March 31,

December 31,

2015

2014

ASSETS

Current assets

$

3,898,210

$

3,530,459

Equity investments

137,379

107,984

Property and equipment, net

750,563

771,651

Goodwill and other intangibles, net

4,701,384

4,751,685

Other non-current assets

230,705

219,252

Total assets

$

9,718,241

$

9,381,031

LIABILITIES AND SHAREHOLDERS' EQUITY

Current maturities of long-term debt and other borrowings

$

749,286

$

270,738

Other current liabilities

3,838,249

4,051,492

Long-term debt

1,525,128

1,564,158

Other non-current liabilities

619,572

618,340

Shareholders' equity

2,986,006

2,876,303

Total liabilities and shareholders' equity

$

9,718,241

$

9,381,031

Chicago Bridge & Iron Company N.V.

Condensed Consolidated Statements of Cash Flows and Other Financial Data

(in thousands)

Three Months

Ended March 31,

2015

2014

CASH FLOWS

Cash flows from operating activities

$

(289,871)

$

(145,752)

Cash flows from investing activities

(56,879)

(22,026)

Cash flows from financing activities

403,409

152,250

Effect of exchange rate changes on cash and cash equivalents

(60,965)

15,189

Decrease in cash and cash equivalents

(4,306)

(339)

Cash and cash equivalents, beginning of the year

351,323

420,502

Cash and cash equivalents, end of the period

$

347,017

$

420,163

OTHER FINANCIAL DATA

(Increase) decrease in receivables, net

$

(41,175)

$

111,885

Change in contracts in progress, net

(330,345)

(422,510)

Decrease in inventory

2,803

10,968

Decrease in accounts payable

(230,152)

(838)

Change in contract capital

$

(598,869)

$

(300,495)

Depreciation and amortization

$

44,309

$

45,625

Capital expenditures

$

28,978

$

26,485

March 31, 2015

December 31, 2014

Backlog ⁽¹⁾

$

29,934,182

$

30,363,269

⁽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

Ended March 31,

Adjusted income from operations

Income from operations

$

162,483

Integration related costs

8,067

Adjusted income from operations

$

170,550

Adjusted % of Revenue

5.8%

Adjusted net income attributable to CB&I

Net income attributable to CB&I

$

88,951

Integration related costs, net of tax ⁽¹⁾

5,486

Adjusted net income attributable to CB&I

$

94,437

Adjusted net income attributable to CB&I per share

Net income attributable to CB&I

$

0.82

Integration related costs, net of tax ⁽¹⁾

0.05

Adjusted net income attributable to CB&I

$

0.87

⁽¹⁾ The three month period ended March 31, 2014, includes $8,067 of integration related costs, less the tax impact of $2,581. The per share amount for the three month period is based upon diluted weighted average shares of 109,113.