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Table of Contents
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
 
FORM 10-Q
 
 
x    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For the Quarterly period ended September 30, 2002
 
OR
 
¨    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from                      to                     
 
Commission File Number 1-12815
 
CHICAGO BRIDGE & IRON COMPANY N.V.
 
Incorporated in The Netherlands
  
IRS Identification Number:    Not Applicable
 
Polarisavenue 31
2132 JH Hoofddorp
The Netherlands
31-23-5685660
(Address and telephone number of principal executive offices)
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
 
YES    x         NO    ¨
 
The number of shares outstanding of a single class of common stock as of October 31, 2002 — 22,154,595
 

Table of Contents
 
CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
Table of Contents
 
 
PART I. FINANCIAL INFORMATION
     
         
Page
Item 1
   
Consolidated Financial Statements
     
           
       
3
           
       
4
           
       
5
           
       
6-11
           
Item 2
      
12-16
           
Item 3
      
17
           
Item 4
      
17
           
PART II. OTHER INFORMATION
     
      
Item 1
      
18
           
Item 6
      
18
           
  
19

2

Table of Contents
CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF INCOME
 
(in thousands, except per share data)
(Unaudited)
 
    
Three Months Ended September 30,
     
Nine Months Ended September 30,
  
    
2002
     
2001
     
2002
     
2001
  
Revenues
   
$
275,831
 
   
$
277,774
 
   
$
819,789
 
   
$
776,999
 
Cost of revenues
   
 
237,564
 
   
 
243,759
 
   
 
708,294
 
   
 
682,032
 
    
  
  
  
Gross profit
   
 
38,267
 
   
 
34,015
 
   
 
111,495
 
   
 
94,967
 
Selling and administrative expenses
   
 
16,830
 
   
 
15,159
 
   
 
51,652
 
   
 
47,690
 
Intangibles amortization
   
 
597
 
   
 
1,309
 
   
 
1,811
 
   
 
3,819
 
Other operating income, net
   
 
(228
)
   
 
(801
)
   
 
(751
)
   
 
(1,067
)
Special charges (Note 3)
   
 
727
 
   
 
5,288
 
   
 
3,001
 
   
 
7,540
 
    
  
  
  
Income from operations
   
 
20,341
 
   
 
13,060
 
   
 
55,782
 
   
 
36,985
 
Interest expense
   
 
(1,814
)
   
 
(2,011
)
   
 
(5,456
)
   
 
(6,504
)
Interest income
   
 
360
 
   
 
517
 
   
 
1,044
 
   
 
1,468
 
    
  
  
  
Income before taxes and minority interest
   
 
18,887
 
   
 
11,566
 
   
 
51,370
 
   
 
31,949
 
Income tax expense
   
 
(5,289
)
   
 
(2,920
)
   
 
(14,384
)
   
 
(8,952
)
    
  
  
  
Income before minority interest
   
 
13,598
 
   
 
8,646
 
   
 
36,986
 
   
 
22,997
 
Minority interest in income
   
 
(424
)
   
 
(626
)
   
 
(1,160
)
   
 
(2,366
)
    
  
  
  
Income from continuing operations
   
 
13,174
 
   
 
8,020
 
   
 
35,826
 
   
 
20,631
 
Discontinued operations (Note 4) :
                                    
Loss from discontinued operations, net of taxes
   
 
—  
 
   
 
—  
 
   
 
—  
 
   
 
(2,321
)
Loss on disposal of discontinued operations, net of taxes
   
 
—  
 
   
 
—  
 
   
 
—  
 
   
 
(9,898
)
    
  
  
  
Net income
   
$
13,174
 
   
$
8,020
 
   
$
35,826
 
   
$
8,412
 
    
  
  
  
Net income per share
                                    
Basic:
                                    
Income from continuing operations
   
$
0.60
 
   
$
0.38
 
   
$
1.67
 
   
$
0.95
 
Loss from discontinued operations
   
 
—  
 
   
 
—  
 
   
 
—  
 
   
 
(0.56
)
    
  
  
  
Net income
   
$
0.60
 
   
$
0.38
 
   
$
1.67
 
   
$
0.39
 
    
  
  
  
Diluted:
                                    
Income from continuing operations
   
$
0.58
 
   
$
0.36
 
   
$
1.61
 
   
$
0.91
 
Loss from discontinued operations
   
 
—  
 
   
 
—  
 
   
 
—  
 
   
 
(0.54
)
    
  
  
  
Net income
   
$
0.58
 
   
$
0.36
 
   
$
1.61
 
   
$
0.37
 
    
  
  
  
Weighted average shares outstanding
                                    
Basic
   
 
22,062
 
   
 
21,382
 
   
 
21,397
 
   
 
21,829
 
Diluted
   
 
22,791
 
   
 
22,295
 
   
 
22,186
 
   
 
22,634
 
Dividends on shares
                                    
Amount
   
$
1,328
 
   
$
1,280
 
   
$
3,857
 
   
$
3,968
 
Per share
   
$
0.06
 
   
$
0.06
 
   
$
0.18
 
   
$
0.18
 
 
The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements.

3

Table of Contents
 
CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
 
CONSOLIDATED BALANCE SHEETS
 
(in thousands, except share data)
 
    
September 30, 2002
     
December 31, 2001
  
ASSETS
   
(Unaudited)
         
Current assets
                  
Cash and cash equivalents
   
$
86,500
 
   
$
50,478
 
Accounts receivable, net of allowance for doubtful accounts of $2,001 in 2002 and $1,256 in 2001
   
 
153,401
 
   
 
144,625
 
Contracts in progress with earned revenues exceeding related progress billings
   
 
64,934
 
   
 
71,549
 
Deferred income taxes
   
 
14,501
 
   
 
20,526
 
Assets held for sale
   
 
1,958
 
   
 
1,958
 
Other current assets
   
 
16,704
 
   
 
17,917
 
    
  
Total current assets
   
 
337,998
 
   
 
307,053
 
    
  
Property and equipment, net
   
 
106,970
 
   
 
105,998
 
Long-term receivable
   
 
19,785
 
   
 
19,785
 
Deferred income taxes
   
 
18,796
 
   
 
21,475
 
Goodwill and other intangibles, net
   
 
185,578
 
   
 
173,953
 
Other non-current assets
   
 
23,858
 
   
 
20,001
 
    
  
Total assets
   
$
692,985
 
   
$
648,265
 
    
  
LIABILITIES AND SHAREHOLDERS’ EQUITY
              
Current liabilities
                  
Notes payable
   
$
35
 
   
$
155
 
Current maturity of long-term debt
   
 
—  
 
   
 
5,700
 
Accounts payable
   
 
65,499
 
   
 
73,636
 
Accrued liabilities
   
 
70,457
 
   
 
69,320
 
Contracts in progress with progress billings exceeding related earned revenues
   
 
110,009
 
   
 
99,306
 
Income taxes payable
   
 
4,111
 
   
 
9,154
 
    
  
Total current liabilities
   
 
250,111
 
   
 
257,271
 
    
  
Long-term debt
   
 
75,000
 
   
 
75,000
 
Other non-current liabilities
   
 
64,789
 
   
 
69,343
 
Minority interest in subsidiaries
   
 
33,661
 
   
 
34,428
 
    
  
Total liabilities
   
 
423,561
 
   
 
436,042
 
    
  
Shareholders’ equity
                  
Common stock, Euro .01 par value; authorized: 35,000,000 in 2002 and 2001; issued: 22,282,586 in 2002 and 2001; outstanding: 22,133,045 in 2002 and 20,979,821 in 2001