Attached files
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| 8-K - CHICAGO BRIDGE & IRON COMPANY N.V. 8-K - CHICAGO BRIDGE & IRON CO N V | a6619520.htm |
Exhibit 99.1
CB&I Reports 2010 Fourth Quarter and Year-End Results
Full-year Earnings Exceed Consensus Estimates
THE WOODLANDS, Texas--(BUSINESS WIRE)--February 22, 2011--CB&I (NYSE:CBI) today reported net income for the fourth quarter of $63.2 million or $0.63 per diluted share, versus $41.2 million or $0.41 per diluted share in 2009. Revenue for the quarter was $947.9 million with new awards of $992.0 million.
For the full-year, net income was $204.6 million, or $2.04 per diluted share, exceeding $2.00 per share for the first time in the company’s history. CB&I’s consolidated 2010 revenue was $3.6 billion. Cash and cash equivalents as of December 31, 2010 were $481.7 million after funding the CDTECH acquisition and term loan reduction.
“2010 was highlighted by solid performance in virtually all areas of our company, reflected in our strong net income, which was 17% above last year’s high watermark,” said Philip K. Asherman, President and CEO. “We continue to be encouraged by the momentum in the markets we serve, particularly in LNG where we have seen our global position tremendously enhanced by the completion of PERU LNG, arguably one of the most successful LNG projects ever built.”
New awards for 2010 totaled $3.4 billion, reflecting a diverse mix of project type, size and geographical location. 2010 new awards included a $280 million gas plant in California, a $190 million LNG storage tank project in Papua New Guinea, storage tank contracts in the Middle East totaling $170 million, pre-FEED work for Russian, Australian and Canadian LNG liquefaction projects, and numerous strategic technology awards worldwide. Backlog at year-end was $6.9 billion, more than 80% of which is outside the U.S.
“Shareholders’ equity at year-end exceeded $1 billion,” said Asherman. “Our healthy balance sheet provides us with a solid platform from which to grow. With our continued focus on capital efficiency, a manageable effective tax rate, a strong credit facility and overall great liquidity, we are well positioned to capitalize on new opportunities.”
CB&I declared an interim dividend on common stock of $0.05 per share, payable March 31, 2011 to shareholders of record March 18, 2011.
Earnings Conference Call
CB&I will host a webcast on February 22 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 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.
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CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) |
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| Three Months | Twelve Months | |||||||||||||||
| Ended December 31, | Ended December 31, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Revenue | $ | 947,851 | $ | 1,038,013 | $ | 3,642,318 | $ | 4,556,503 | ||||||||
| Cost of revenue | 818,239 | 909,856 | 3,150,255 | 4,033,783 | ||||||||||||
| Gross profit | 129,612 | 128,157 | 492,063 | 522,720 | ||||||||||||
| % of Revenue | 13.7 | % | 12.3 | % | 13.5 | % | 11.5 | % | ||||||||
| Selling and administrative expenses | 44,258 | 46,133 | 185,213 | 204,911 | ||||||||||||
| % of Revenue | 4.7 | % | 4.4 | % | 5.1 | % | 4.5 | % | ||||||||
| Intangibles amortization | 6,098 | 5,773 | 23,690 | 23,326 | ||||||||||||
| Other operating (income) expense, net | (780 | ) | 5,449 | (636 | ) | 15,324 | ||||||||||
| Equity earnings | (5,735 | ) | (6,288 | ) | (19,464 | ) | (35,064 | ) | ||||||||
| Income from operations | 85,771 | 77,090 | 303,260 | 314,223 | ||||||||||||
| % of Revenue | 9.0 | % | 7.4 | % | 8.3 | % | 6.9 | % | ||||||||
| Interest expense | (4,148 | ) | (5,364 | ) | (16,686 | ) | (21,383 | ) | ||||||||
| Interest income | 1,392 | 627 | 4,955 | 1,817 | ||||||||||||
| Income before taxes | 83,015 | 72,353 | 291,529 | 294,657 | ||||||||||||
| Income tax expense | (18,922 | ) | (29,606 | ) | (79,966 | ) | (114,917 | ) | ||||||||
| Net income | 64,093 | 42,747 | 211,563 | 179,740 | ||||||||||||
| Less: Net income attributable to noncontrolling interests | (896 | ) | (1,517 | ) | (7,004 | ) | (5,451 | ) | ||||||||
| Net income attributable to CB&I | $ | 63,197 | $ | 41,230 | $ | 204,559 | $ | 174,289 | ||||||||
| Net income attributable to CB&I per share: | ||||||||||||||||
| Basic | $ | 0.65 | $ | 0.42 | $ | 2.08 | $ | 1.82 | ||||||||
| Diluted | $ | 0.63 | $ | 0.41 | $ | 2.04 | $ | 1.79 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 97,863 | 97,695 | 98,300 | 95,832 | ||||||||||||
| Diluted | 100,498 | 99,996 | 100,459 | 97,245 | ||||||||||||
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CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES SEGMENT INFORMATION (in thousands) |
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| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | ||||||||||||||||||||||
| % of | % of | % of | % of | ||||||||||||||||||||||
| NEW AWARDS* | Total | Total | Total | Total | |||||||||||||||||||||
| CB&I Steel Plate Structures | $ | 364,799 | 37 | % | $ | 252,534 | 7 | % | $ | 1,303,930 | 39 | % | $ | 2,216,246 | 36 | % | |||||||||
| CB&I Lummus | 476,961 | 48 | % | 3,094,127 | 90 | % | 1,634,683 | 49 | % | 3,585,741 | 59 | % | |||||||||||||
| Lummus Technology | 150,200 | 15 | % | 86,824 | 3 | % | 422,514 | 12 | % | 311,599 | 5 | % | |||||||||||||
| Total | $ | 991,960 | $ | 3,433,485 | $ | 3,361,127 | $ | 6,113,586 | |||||||||||||||||
| % of | % of | % of | % of | ||||||||||||||||||||||
| REVENUE | Total | Total | Total | Total | |||||||||||||||||||||
| CB&I Steel Plate Structures | $ | 398,314 | 42 | % | $ | 388,813 | 37 | % | $ | 1,442,145 | 40 | % | $ | 1,650,271 | 36 | % | |||||||||
| CB&I Lummus | 461,826 | 49 | % | 547,840 | 53 | % | 1,904,850 | 52 | % | 2,542,834 | 56 | % | |||||||||||||
| Lummus Technology | 87,711 | 9 | % | 101,360 | 10 | % | 295,323 | 8 | % | 363,398 | 8 | % | |||||||||||||
| Total | $ | 947,851 | $ | 1,038,013 | $ | 3,642,318 | $ | 4,556,503 | |||||||||||||||||
| % of | % of | % of | % of | ||||||||||||||||||||||
| INCOME FROM OPERATIONS | Revenue | Revenue | Revenue | Revenue | |||||||||||||||||||||
| CB&I Steel Plate Structures | $ | 37,890 | 9.5 | % | $ | 42,145 | 10.8 | % | $ | 134,430 | 9.3 | % | $ | 147,194 | 8.9 | % | |||||||||
| CB&I Lummus | 18,342 | 4.0 | % | 11,032 | 2.0 | % | 82,574 | 4.3 | % | 86,127 | 3.4 | % | |||||||||||||
| Lummus Technology | 29,539 | 33.7 | % | 23,913 | 23.6 | % | 86,256 | 29.2 | % | 80,902 | 22.3 | % | |||||||||||||
| Total | $ | 85,771 | 9.0 | % | $ | 77,090 | 7.4 | % | $ | 303,260 | 8.3 | % | $ | 314,223 | 6.9 | % | |||||||||
| * New awards represents the value of new project commitments received by the Company during a given period. | |||||||||||||||||||||||||
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CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) |
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| December 31, | December 31, | |||||||
| 2010 | 2009 | |||||||
| ASSETS | ||||||||
| Current assets | $ | 1,202,486 | $ | 1,195,578 | ||||
| Equity investments | 92,400 | 132,258 | ||||||
| Property and equipment, net | 290,206 | 316,112 | ||||||
| Goodwill and other intangibles, net | 1,154,256 | 1,179,600 | ||||||
| Other non-current assets | 170,186 | 193,219 | ||||||
| Total assets | $ | 2,909,534 | $ | 3,016,767 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Notes payable | $ | 334 | $ | 709 | ||||
| Current maturity of long-term debt | 40,000 | 40,000 | ||||||
| Other current liabilities | 1,400,299 | 1,639,166 | ||||||
| Long-term debt | 40,000 | 80,000 | ||||||
| Other non-current liabilities | 345,056 | 359,602 | ||||||
| Shareholders' equity | 1,083,845 | 897,290 | ||||||
| Total liabilities and shareholders' equity | $ | 2,909,534 | $ | 3,016,767 | ||||
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CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND OTHER FINANCIAL DATA (in thousands) |
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| Twelve Months | ||||||||
| Ended December 31, | ||||||||
| 2010 | 2009 | |||||||
| CASH FLOWS | ||||||||
| Cash flows from operating activities | $ | 288,406 | $ | 248,763 | ||||
| Cash flows from investing activities | (58,376 | ) | (22,366 | ) | ||||
| Cash flows from financing activities | (86,343 | ) | 12,732 | |||||
| Effect of exchange rate changes on cash | 12,051 | (1,350 | ) | |||||
| Increase in cash and cash equivalents | 155,738 | 237,779 | ||||||
| Cash and cash equivalents, beginning of the year | 326,000 | 88,221 | ||||||
| Cash and cash equivalents, end of the year | $ | 481,738 | $ | 326,000 | ||||
| OTHER FINANCIAL DATA | ||||||||
| Decrease in receivables, net | $ | 124,365 | $ | 117,787 | ||||
| Change in contracts in progress, net | (37,017 | ) | 37,101 | |||||
| Decrease (increase) in non-current contract retentions | 2,984 | (5,173 | ) | |||||
| Decrease in accounts payable | (112,558 | ) | (220,098 | ) | ||||
| Change in contract capital | $ | (22,226 | ) | $ | (70,383 | ) | ||
| Depreciation and amortization expense | $ | 72,885 | $ | 79,531 | ||||
| Capital expenditures | $ | 24,089 | $ | 47,839 | ||||
| Backlog * | $ | 6,906,633 | $ | 7,199,462 | ||||
| * 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. | ||||||||
CONTACT:
CB&I
Media: Jan Sieving, +1 832 513 1111
or
Investors:
Christi Thoms, +1 832 513 1200