Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - CHICAGO BRIDGE & IRON CO N V | a201409308-kpressrelease.htm |
CB&I Reports 2014 Third Quarter Results
Year Over Year Revenue up 13% and Earnings up 37%
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. | ||||||||||||||||||
CONTACT: Media, www.cbi.com, Investors, Christi Thoms, +1 832 513 1200