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| 8-K - CHICAGO BRIDGE & IRON COMPANY N.V. 8-K - CHICAGO BRIDGE & IRON CO N V | a50042790.htm |
Exhibit 99.1
CB&I Reports Third Quarter 2011 Results
CB&I’s Quarterly New Awards and Net Income Hit Historic Highs
THE WOODLANDS, Texas--(BUSINESS WIRE)--October 25, 2011--CB&I (NYSE: CBI) today reported net income of $72.2 million, or $0.72 per diluted share, for the third quarter of 2011. Revenue for the quarter was $1.3 billion.
New awards for the third quarter exceeded $3.8 billion, including a $2.3 billion contract in Australia for the mechanical, electrical and instrumentation work on the Gorgon project; a $500 million contract for LNG storage tanks for an Australia LNG project; a project specification contract for the Arrow LNG project in Australia; and a $60 million storage tank contract in Saudi Arabia. Backlog as of September 30 was $9.3 billion, up from $6.9 billion at year-end 2010.
“I am pleased to report a very strong quarter on all fronts – strategically, operationally and financially,” said Philip K. Asherman, President and CEO. “CB&I is well positioned to capitalize on the increasing global demand for energy infrastructure, particularly in our LNG, gas processing and oil sands markets. Based on our financial strength, market momentum and operational performance, we are confident we will continue to meet expectations for the remainder of the year and into 2012.”
CB&I is adjusting its EPS guidance to $2.40 - $2.50. New Awards guidance is unchanged at $6.8 - $7.2 billion. Revenue guidance remains $4.3 - $4.7 billion.
In the first nine months of 2011, the company returned $115 million to shareholders, which included $100 million of stock repurchases and $15 million through the quarterly cash dividends. Cash and cash equivalents as of September 30 were $540 million.
Earnings Conference Call
CB&I will host a webcast on October 25 at 4:00 p.m. CDT (5:00 p.m. EDT) to discuss financial and operating results, and answer questions from investors. The webcast is available at www.CBI.com Investor Relations/Company Highlights.
About CB&I
CB&I (NYSE:CBI) engineers and constructs some of the world’s largest energy infrastructure projects. With premier process technology, proven EPC expertise, and unrivaled storage tank experience, CB&I executes projects from concept to completion. Safely. Reliably. Globally. For more information, visit www.CBI.com.
Forward-Looking Statement
This 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, 2010, 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, | ||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||
| Revenue | $ | 1,255,344 | $ | 909,099 | $ | 3,295,320 | $ | 2,694,467 | |||||||||
| Cost of revenue | 1,108,532 | 789,231 | 2,871,699 | 2,332,016 | |||||||||||||
| Gross profit | 146,812 | 119,868 | 423,621 | 362,451 | |||||||||||||
| % of Revenue | 11.7 | % | 13.2 | % | 12.9 | % | 13.5 | % | |||||||||
| Selling and administrative expense | 49,749 | 43,365 | 155,889 | 140,955 | |||||||||||||
| % of Revenue | 4.0 | % | 4.8 | % | 4.7 | % | 5.2 | % | |||||||||
| Intangibles amortization | 6,409 | 5,832 | 19,073 | 17,592 | |||||||||||||
| Other operating expense (income), net | 614 | (708 | ) | (230 | ) | 144 | |||||||||||
| Equity earnings | (2,688 | ) | (6,687 | ) | (7,238 | ) | (13,729 | ) | |||||||||
| Income from operations | 92,728 | 78,066 | 256,127 | 217,489 | |||||||||||||
| % of Revenue | 7.4 | % | 8.6 | % | 7.8 | % | 8.1 | % | |||||||||
| Interest expense | (1,105 | ) | (5,739 | ) | (7,700 | ) | (12,538 | ) | |||||||||
| Interest income | 2,381 | 1,272 | 5,496 | 3,563 | |||||||||||||
| Income before taxes | 94,004 | 73,599 | 253,923 | 208,514 | |||||||||||||
| Income tax expense | (22,601 | ) | (19,918 | ) | (69,253 | ) | (61,044 | ) | |||||||||
| Net income | 71,403 | 53,681 | 184,670 | 147,470 | |||||||||||||
| Less: Net loss (income) attributable to noncontrolling interests | 761 | (1,837 | ) | (106 | ) | (6,108 | ) | ||||||||||
| Net income attributable to CB&I | $ | 72,164 | $ | 51,844 | $ | 184,564 | $ | 141,362 | |||||||||
| Net income attributable to CB&I per share: | |||||||||||||||||
| Basic | $ | 0.74 | $ | 0.53 | $ | 1.88 | $ | 1.44 | |||||||||
| Diluted | $ | 0.72 | $ | 0.52 | $ | 1.84 | $ | 1.41 | |||||||||
| Weighted average shares outstanding: | |||||||||||||||||
| Basic | 97,772 | 97,675 | 98,251 | 98,448 | |||||||||||||
| Diluted | 99,814 | 99,756 | 100,271 | 100,445 | |||||||||||||
| Cash dividends on shares: | |||||||||||||||||
| Amount | $ | 4,921 | $ | - | $ | 14,841 | $ | - | |||||||||
| Per Share | $ | 0.05 | $ | - | $ | 0.15 | $ | - | |||||||||
| CHICAGO BRIDGE & IRON COMPANY N.V. | |||||||||||||||||||||||||
| SEGMENT INFORMATION | |||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||
| % of | % of | % of | % of | ||||||||||||||||||||||
| NEW AWARDS* | Total | Total | Total | Total | |||||||||||||||||||||
| CB&I Steel Plate Structures | $ | 3,135,692 | 82 | % | $ | 465,050 | 52 | % | $ | 3,797,777 | 63 | % | $ | 939,131 | 40 | % | |||||||||
| CB&I Lummus | 499,046 | 13 | % | 337,985 | 38 | % | 1,853,137 | 31 | % | 1,157,722 | 49 | % | |||||||||||||
| Lummus Technology | 173,418 | 5 | % | 90,097 | 10 | % | 384,394 | 6 | % | 272,314 | 11 | % | |||||||||||||
| Total | $ | 3,808,156 | $ | 893,132 | $ | 6,035,308 | $ | 2,369,167 | |||||||||||||||||
| % of | % of | % of | % of | ||||||||||||||||||||||
| REVENUE | Total | Total | Total | Total | |||||||||||||||||||||
| CB&I Steel Plate Structures | $ | 511,376 | 41 | % | $ | 348,662 | 38 | % | $ | 1,336,441 | 40 | % | $ | 1,043,831 | 39 | % | |||||||||
| CB&I Lummus | 630,010 | 50 | % | 471,075 | 52 | % | 1,636,227 | 50 | % | 1,443,024 | 53 | % | |||||||||||||
| Lummus Technology | 113,958 | 9 | % | 89,362 | 10 | % | 322,652 | 10 | % | 207,612 | 8 | % | |||||||||||||
| Total | $ | 1,255,344 | $ | 909,099 | $ | 3,295,320 | $ | 2,694,467 | |||||||||||||||||
| % of | % of | % of | % of | ||||||||||||||||||||||
| INCOME FROM OPERATIONS | Revenue | Revenue | Revenue | Revenue | |||||||||||||||||||||
| CB&I Steel Plate Structures | $ | 43,284 | 8.5 | % | $ | 31,902 | 9.1 | % | $ | 127,697 | 9.6 | % | $ | 96,540 | 9.2 | % | |||||||||
| CB&I Lummus | 22,601 | 3.6 | % | 19,680 | 4.2 | % | 62,092 | 3.8 | % | 64,232 | 4.5 | % | |||||||||||||
| Lummus Technology | 26,843 | 23.6 | % | 26,484 | 29.6 | % | 66,338 | 20.6 | % | 56,717 | 27.3 | % | |||||||||||||
| Total | $ | 92,728 | 7.4 | % | $ | 78,066 | 8.6 | % | $ | 256,127 | 7.8 | % | $ | 217,489 | 8.1 | % | |||||||||
| * 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) | |||||||||
| September 30, | December 31, | ||||||||
| 2011 | 2010 | ||||||||
| ASSETS | |||||||||
| Current assets | $ | 1,583,734 | $ | 1,206,648 | |||||
| Equity investments | 94,170 | 92,400 | |||||||
| Property and equipment, net | 264,547 | 290,206 | |||||||
| Goodwill and other intangibles, net | 1,132,941 | 1,154,256 | |||||||
| Other non-current assets | 145,266 | 166,024 | |||||||
| Total assets | $ | 3,220,658 | $ | 2,909,534 | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
| Notes payable | $ | - | $ | 334 | |||||
| Current maturity of long-term debt | 40,000 | 40,000 | |||||||
| Other current liabilities | 1,630,873 | 1,400,299 | |||||||
| Long-term debt | 40,000 | 40,000 | |||||||
| Other non-current liabilities | 321,767 | 345,056 | |||||||
| Shareholders' equity | 1,188,018 | 1,083,845 | |||||||
| Total liabilities and shareholders' equity | $ | 3,220,658 | $ | 2,909,534 | |||||
| CHICAGO BRIDGE & IRON COMPANY N.V. | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND OTHER FINANCIAL DATA | |||||||||
| (in thousands) | |||||||||
| Nine Months | |||||||||
| Ended September 30, | |||||||||
| 2011 | 2010 | ||||||||
| CASH FLOWS | |||||||||
| Cash flows from operating activities | $ | 189,126 | $ | 87,219 | |||||
| Cash flows from investing activities | (16,059 | ) | (14,200 | ) | |||||
| Cash flows from financing activities | (98,591 | ) | (48,554 | ) | |||||
| Effect of exchange rate changes on cash | (16,315 | ) | 10,406 | ||||||
| Increase in cash and cash equivalents | 58,161 | 34,871 | |||||||
| Cash and cash equivalents, beginning of the year | 481,738 | 326,000 | |||||||
| Cash and cash equivalents, end of the period | $ | 539,899 | $ | 360,871 | |||||
| OTHER FINANCIAL DATA | |||||||||
| (Increase) decrease in receivables, net | $ | (220,656 | ) | $ | 71,027 | ||||
| Change in contracts in progress, net | (15,665 | ) | (85,853 | ) | |||||
| Increase (decrease) in accounts payable | 148,185 | (115,443 | ) | ||||||
| Change in contract capital | $ | (88,136 | ) | $ | (130,269 | ) | |||
| Depreciation and amortization | $ | 52,037 | $ | 55,734 | |||||
| Capital expenditures | $ | 23,822 | $ | 16,386 | |||||
| Backlog * | $ | 9,272,683 | $ | 6,880,083 | |||||
|
* |
Backlog includes the value of new award commitments until work is
performed and revenue is recognized or |
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CONTACT:
CB&I
Media: Jan Sieving, +1 832 513 1111
or
Investors:
Christi Thoms, +1 832 513 1200