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| 8-K - CHICAGO BRIDGE & IRON COMPANY N.V. 8-K - CHICAGO BRIDGE & IRON CO N V | a50247039.htm |
Exhibit 99.1
CB&I Reports First Quarter 2012 Results
Revenue up 26% and EPS up 20%
THE WOODLANDS, Texas--(BUSINESS WIRE)--April 24, 2012--CB&I (NYSE: CBI) today reported net income of $59.5 million, or $0.60 per diluted share, for the first quarter of 2012, compared with $50.5 million, or $0.50 per diluted share, in the first quarter of 2011. Revenue for the quarter was $1.2 billion compared with first quarter 2011 revenue of $954.3 million. New awards totaled $1.7 billion compared with $1.0 billion in the first quarter 2011, increasing the Company’s backlog to $9.6 billion. Included in these new awards were several Oil Sands opportunities, a FEED study for a U.S. LNG export project, and a U.S. Petrochemical expansion project.
CB&I returned $109.6 million to shareholders, which included $104.7 million of stock repurchases and $4.9 million through quarterly cash dividends. Cash and cash equivalents as of March 31, 2012 were $639.8 million. Consistent with previous years, the first quarter included a disproportionate share of the Company’s annual stock-based compensation expense (63% of the full-year expense).
“As our new awards demonstrate, the markets we’ve positioned ourselves in are developing as expected,” said Philip K. Asherman, President and CEO. “We had another very positive quarter by all metrics including our safety performance, earnings, cash generation, and backlog growth.”
Earnings Conference Call
CB&I will host a webcast on April 24 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, 2011, 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. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) |
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| Three Months | ||||||||||||
| Ended March 31, | ||||||||||||
| 2012 | 2011 | |||||||||||
| Revenue | $ | 1,201,267 | $ | 954,271 | ||||||||
| Cost of revenue | 1,048,003 | 817,555 | ||||||||||
| Gross profit | 153,264 | 136,716 | ||||||||||
| % of Revenue | 12.8 | % | 14.3 | % | ||||||||
| Selling and administrative expense | 63,232 | 57,665 | ||||||||||
| % of Revenue | 5.3 | % | 6.0 | % | ||||||||
| Intangibles amortization | 6,092 | 6,292 | ||||||||||
| Other operating income, net | (65 | ) | (898 | ) | ||||||||
| Equity earnings | (1,800 | ) | (1,346 | ) | ||||||||
| Income from operations | 85,805 | 75,003 | ||||||||||
| % of Revenue | 7.1 | % | 7.9 | % | ||||||||
| Interest expense | (2,112 | ) | (3,057 | ) | ||||||||
| Interest income | 2,187 | 1,372 | ||||||||||
| Income before taxes | 85,880 | 73,318 | ||||||||||
| Income tax expense | (24,906 | ) | (21,754 | ) | ||||||||
| Net income | 60,974 | 51,564 | ||||||||||
| Less: Net income attributable to noncontrolling interests | (1,487 | ) | (1,058 | ) | ||||||||
| Net income attributable to CB&I | $ | 59,487 | $ | 50,506 | ||||||||
| Net income attributable to CB&I per share: | ||||||||||||
| Basic | $ | 0.61 | $ | 0.51 | ||||||||
| Diluted | $ | 0.60 | $ | 0.50 | ||||||||
| Weighted average shares outstanding: | ||||||||||||
| Basic | 97,257 | 98,540 | ||||||||||
| Diluted | 99,252 | 100,847 | ||||||||||
| Cash dividends on shares: | ||||||||||||
| Amount | $ | 4,885 | $ | 4,990 | ||||||||
| Per Share | $ | 0.05 | $ | 0.05 | ||||||||
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CHICAGO BRIDGE & IRON COMPANY N.V. SEGMENT INFORMATION (in thousands) |
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| Three Months Ended March 31, | ||||||||||||||||
| 2012 | 2011 | |||||||||||||||
| % of | % of | |||||||||||||||
| NEW AWARDS* | Total | Total | ||||||||||||||
| Steel Plate Structures | $ | 410,923 | 24 | % | $ | 291,544 | 29 | % | ||||||||
| Project Engineering and Construction | 1,155,395 | 68 | % | 586,703 | 58 | % | ||||||||||
| Lummus Technology | 129,043 | 8 | % | 133,316 | 13 | % | ||||||||||
| Total | $ | 1,695,361 | $ | 1,011,563 | ||||||||||||
| % of | % of | |||||||||||||||
| REVENUE | Total | Total | ||||||||||||||
| Steel Plate Structures | $ | 419,931 | 35 | % | $ | 368,708 | 38 | % | ||||||||
| Project Engineering and Construction | 681,283 | 57 | % | 464,570 | 49 | % | ||||||||||
| Lummus Technology | 100,053 | 8 | % | 120,993 | 13 | % | ||||||||||
| Total | $ | 1,201,267 | $ | 954,271 | ||||||||||||
| % of | % of | |||||||||||||||
| INCOME FROM OPERATIONS | Revenue | Revenue | ||||||||||||||
| Steel Plate Structures | $ | 38,296 | 9.1 | % | $ | 36,924 | 10.0 | % | ||||||||
| Project Engineering and Construction | 24,910 | 3.7 | % | 15,015 | 3.2 | % | ||||||||||
| Lummus Technology | 22,599 | 22.6 | % | 23,064 | 19.1 | % | ||||||||||
| Total | $ | 85,805 | 7.1 | % | $ | 75,003 | 7.9 | % | ||||||||
| * 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. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) |
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| March 31, | December 31, | |||||||||
| 2012 | 2011 | |||||||||
| ASSETS | ||||||||||
| Current assets | $ | 1,731,434 | $ | 1,661,321 | ||||||
| Equity investments | 81,507 | 95,687 | ||||||||
| Property and equipment, net | 262,175 | 262,003 | ||||||||
| Goodwill and other intangibles, net | 1,115,916 | 1,114,512 | ||||||||
| Other non-current assets | 147,976 | 158,460 | ||||||||
| Total assets | $ | 3,339,008 | $ | 3,291,983 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
| Current maturity of long-term debt | 40,000 | 40,000 | ||||||||
| Other current liabilities | 1,756,991 | 1,703,424 | ||||||||
| Other non-current liabilities | 346,144 | 352,129 | ||||||||
| Shareholders' equity | 1,195,873 | 1,196,430 | ||||||||
| Total liabilities and shareholders' equity | $ | 3,339,008 | $ | 3,291,983 | ||||||
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CHICAGO BRIDGE & IRON COMPANY N.V. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND OTHER FINANCIAL DATA (in thousands) |
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Three Months Ended March 31, |
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| 2012 | 2011 | ||||||||||
| CASH FLOWS | |||||||||||
| Cash flows from operating activities | $ | 59,334 | $ | (39,362 | ) | ||||||
| Cash flows from investing activities | (10,029 | ) | (2,416 | ) | |||||||
| Cash flows from financing activities | (90,688 | ) | (24,238 | ) | |||||||
| Effect of exchange rate changes on cash and cash equivalents | 9,383 | 14,535 | |||||||||
| Decrease in cash and cash equivalents | (32,000 | ) | (51,481 | ) | |||||||
| Cash and cash equivalents, beginning of the year | 671,811 | 481,738 | |||||||||
| Cash and cash equivalents, end of the period | $ | 639,811 | $ | 430,257 | |||||||
| OTHER FINANCIAL DATA | |||||||||||
| Increase in receivables, net | $ | (65,339 | ) | $ | (122,931 | ) | |||||
| Change in contracts in progress, net | 24,162 | (13,196 | ) | ||||||||
| Increase in accounts payable | 11,982 | 39,314 | |||||||||
| Change in contract capital | $ | (29,195 | ) | $ | (96,813 | ) | |||||
| Depreciation and amortization | $ | 16,646 | $ | 17,266 | |||||||
| Capital expenditures | $ | 10,695 | $ | 5,013 | |||||||
| March 31, 2012 | December 31, 2011 | ||||||||||
| Backlog * | $ | 9,552,572 | $ | 8,968,206 | |||||||
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* 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
Investors: Christi Thoms, +1
832 513 1200
Media: www.CBI.com