CB&I Reports Strong 2013 First Quarter Results

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CB&I

May 02, 2013, 04:01 ET

THE WOODLANDS, Texas, May 2, 2013 /PRNewswire/ -- CB&I (NYSE: CBI) today reported net income for the first quarter of $33.6 million or $0.32 per diluted share, including the after tax impact of acquisition-related costs of $51.2 million, or $0.50 per diluted share.  Revenue for the first quarter of 2013 was $2.3 billion with new awards of $1.9 billion resulting in a backlog of $25.5 billion.  Consistent with previous years, the first quarter includes a disproportionate share of the Company's annual stock-based compensation expense. 

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"CB&I had another successful quarter, including the achievement of an important strategic milestone with the financial close of the Shaw transaction on February 13," said Philip K. Asherman, President and CEO. "For the first quarter, CB&I delivered strong growth in revenue and income from operations. Revenue was up 87% from $1.2 billion in the first quarter of 2012, and adjusted income from operations was $147.8 million, up 72% compared to the same period last year.  We are encouraged by the robust accretion of the acquisition. Our combined operations earned adjusted earnings per share of $0.82."

"Revenues are performing as expected and despite the postponement of a major LNG project in Australia, we anticipate that continuing demand around the world for energy infrastructure will drive our new awards for 2013 to be within the guidance range we announced earlier this year," continued Asherman.

Earnings Conference Call

CB&I will host a webcast on May 2 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.  

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, 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 Statement of Operations

(in thousands, except per share data)







Three Months


Ended March 31,


2013

2012





Revenue

$ 2,251,429

$ 1,201,267

Cost of revenue

2,005,285

1,048,003

Gross profit

246,144

153,264

% of Revenue

10.9%

12.8%





Selling and administrative expense

93,968

63,232

% of Revenue

4.2%

5.3%





Intangibles amortization

9,188

6,092

Equity earnings

(4,485)

(1,800)

Other operating income, net

(297)

(65)

Acquisition-related costs

61,256

-

Income from operations

86,514

85,805

% of Revenue

3.8%

7.1%





Interest expense

(22,746)

(2,112)

Interest income 

1,871

2,187

Income before taxes

65,639

85,880





Income tax expense 

(22,767)

(24,906)

Net income

42,872

60,974





Less: Net income attributable to noncontrolling interests

(9,264)

(1,487)






Net income attributable to CB&I

$     33,608

$     59,487





Net income attributable to CB&I per share:



Basic

$         0.33

$         0.61

Diluted

$         0.32

$         0.60





Weighted average shares outstanding:



Basic

101,802

97,257

Diluted

103,507

99,252





Cash dividends on shares:



Amount

$       5,345

$       4,885

Per Share

$         0.05

$         0.05





Non-GAAP Supplemental Information

(2013 amounts adjusted to exclude Shaw acquisition-related transaction costs) (1)








Adjusted income from operations

$   147,770

$     85,805


Adjusted % of Revenue

6.6%

7.1%








Adjusted net income attributable to CB&I

$     84,856

$     59,487


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

$         0.82

$         0.60







(1)

The exclusion of Shaw acquisition-related transaction costs for 2013 is a non-GAAP financial measure, which we believe provides users a better indication of our operating performance.  No non-GAAP adjustments were necessary for 2012 information.  See Reconciliation of Non-GAAP Supplemental Information table.

Chicago Bridge & Iron Company N.V.

Segment Information

(in thousands)













Three Months Ended March 31, 




2013

2012














 % of 

 % of 

NEW AWARDS (1)

 Total 

 Total 

 Engineering, Construction and Maintenance 

$ 1,000,450

52%

$ 1,155,395

68%

 Fabrication Services 

707,706

36%

410,923

24%

 Technology 

152,748

8%

129,043

8%

 Government Solutions 

85,045

4%

-

0%

    Total  

$ 1,945,949

$ 1,695,361























 % of 

 % of 

REVENUE

 Total 

 Total 

 Engineering, Construction and Maintenance 

$ 1,430,135

63%

$   709,781

59%

 Fabrication Services 

495,048

22%

391,433

33%

 Technology 

151,482

7%

100,053

8%

 Government Solutions 

174,764

8%

-

0%

    Total  

$ 2,251,429

$ 1,201,267























 % of 

 % of 

INCOME FROM OPERATIONS

 Revenue 

 Revenue 

 Engineering, Construction and Maintenance 

$     63,212

4.4%

$     27,420

3.9%

 Fabrication Services 

45,024

9.1%

35,786

9.1%

 Technology 

35,542

23.5%

22,599

22.6%

 Government Solutions 

3,992

2.3%

-

0.0%

 Total operating groups 

$   147,770

6.6%

$     85,805

7.1%

      Acquisition-related costs 

(61,256)

-

    Total 

$     86,514

3.8%

$     85,805

7.1%










(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)





March 31,

December 31,

2013

2012

ASSETS






Current assets

$      3,619,629

$            2,721,555

Equity investments

107,082

97,267

Property and equipment, net

775,820

285,871

Goodwill and other intangibles, net

3,924,359

1,093,019

Other non-current assets

221,971

131,963

     Total assets

$      8,648,861

$            4,329,675








LIABILITIES AND SHAREHOLDERS' EQUITY






Current maturities of long-term debt and revolver borrowings

$        197,427

$                        -

Other current liabilities

4,172,791

1,772,522

Long-term debt 

1,700,000

800,000

Other non-current liabilities

581,087

360,843

Shareholders' equity

1,997,556

1,396,310

     Total liabilities and shareholders' equity

$      8,648,861

$            4,329,675

Chicago Bridge & Iron Company N.V.

Condensed Consolidated Statements of Cash Flows and Other Financial Data

(in thousands)







Three Months


Ended March 31,


2013

2012

CASH FLOWS








Cash flows from operating activities

$       (312,215)

$                 59,334

Cash flows from investing activities

(1,752,351)

(10,029)

Cash flows from financing activities

1,821,239

(90,688)

Effect of exchange rate changes on cash and cash equivalents

(7,242)

9,383

Decrease in cash and cash equivalents

(250,569)

(32,000)

Cash and cash equivalents, beginning of the year

643,395

671,811

Cash and cash equivalents, end of the period

$        392,826

$               639,811





OTHER FINANCIAL DATA








Increase in receivables, net

$       (153,647)

$                (65,339)

Change in contracts in progress, net

(180,030)

24,162

(Increase) decrease in inventory

(4,302)

2,229

(Decrease) increase in accounts payable

(28,720)

11,982

     Change in contract capital

$       (366,699)

$                (26,966)





Depreciation and amortization 

$          28,637

$                 16,646

Capital expenditures

$          14,932

$                 10,695







March 31, 2013

December 31, 2012

Backlog (1)

$    25,534,674

$           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



Ended March 31, 2013






Adjusted income from operations










Income from operations

$  86,514


Acquisition-related costs

61,256


Adjusted income from operations

$147,770


Adjusted % of Revenue

6.6%













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

Amount

Per Share







Net income attributable to CB&I

$  33,608

$     0.32

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

51,248

0.50

Adjusted net income attributable to CB&I

$  84,856

$     0.82






(1)

Includes $61,256 of of acquisition-related costs and $10,517 of acquisition-related pre-closing financing costs and one-time financial commitments (both included in interest expense), totaling $71,773, less the tax impact of $20,525.  The per share amount is based upon diluted weighted average shares of 103,507.  

SOURCE CB&I

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