CHICAGO BRIDGE & IRON CO N V - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - February 25, 2014

Attached files

file filename
8-K - FORM 8-K - CHICAGO BRIDGE & IRON CO N Vv369668_8k.htm

CB&I Reports Strong 2013 Fourth Quarter and Full-Year Results

THE WOODLANDS, Texas, Feb. 25, 2014 /PRNewswire/ -- CB&I (NYSE: CBI) today announced financial results for the fourth quarter and full-year 2013. Net income for 2013 was $454.1 million, or $4.23 per diluted share, including acquisition and integration related costs of $73.3 million, or $0.68 per diluted share. CB&I's consolidated 2013 revenue was $11.1 billion, up from $5.5 billion in the prior year. New awards for 2013 totaled $12.3 billion, resulting in a backlog of $27.8 billion as of December 31, 2013.

In the fourth quarter, CB&I's net income was $196.8 million, or $1.80 per diluted share, including acquisition and integration related costs of $12.1 million, or $0.11 per diluted share. Revenue for the fourth quarter was $3.0 billion with new awards of $5.3 billion.

"With record high new awards and revenue, 2013 was without a doubt the strongest year in the company's 125 year history. Our 2013 net income, excluding acquisition and integration related costs, exceeded half a billion dollars, resulting in adjusted earnings per share of $4.91," said Philip K. Asherman, President and Chief Executive Officer. "In addition to our financial results, I am very proud to report that we executed 145 million work-hours in 2013, with one of the best safety records in our industry. With this relentless focus and commitment to safety, our unique business model that delivers a more complete supply chain solution for our customers, nearly $30 billion in backlog and the assurance of long-term global energy demand, we expect CB&I to continue to deliver outstanding value to our shareholders."

CB&I's $12.3 billion in 2013 new awards demonstrates the company's ability to capitalize on its breadth of offerings across its growing end markets. Noteworthy awards and developments included a LNG contract for the first two trains at Freeport LNG, an award for an ethylene plant for Occidental in Texas, storage awards for LNG tanks in Asia and Australia, a propane terminal in Pennsylvania, a strategic partnership with China Power Investment Corporation (CPI) to jointly build nuclear power generation in China, a pipe fabrication award for a natural gas project in Australia, contracts for environmental remediation and Air Quality Control programs across the U.S., a plant services contract for Peru LNG, a paraxylene technology contract with GS Caltex, as well as numerous additional strategic petrochemical and refining technology licensing awards.

Earnings Conference Call

CB&I will host a webcast on February 25 at 4:00 p.m. CST (5:00 p.m. EST) 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. Drawing upon more than a century 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.

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

Twelve Months


Ended December 31,

Ended December 31,


2013

2012

2013

2012









Revenue

$  3,000,257

$  1,537,468

$  11,094,527

$  5,485,206

Cost of revenue

2,661,051

1,339,800

9,895,517

4,786,499

Gross profit

339,206

197,668

1,199,010

698,707

% of Revenue

11.3%

12.9%

10.8%

12.7%









Selling and administrative expense

98,921

59,464

379,485

227,948

% of Revenue

3.3%

3.9%

3.4%

4.2%









Intangibles amortization

18,429

4,488

61,111

22,613

Equity earnings

(7,337)

(11,416)

(23,474)

(17,931)

Other operating (income) expense, net

(493)

618

1,643

(566)

Acquisition and integration related costs

19,260

6,000

95,737

11,000

Income from operations

210,426

138,514

684,508

455,643

% of Revenue

7.0%

9.0%

6.2%

8.3%









Interest expense

(21,506)

(7,837)

(87,578)

(19,606)

Interest income 

1,721

1,592

6,930

8,029

Income before taxes

190,641

132,269

603,860

444,066









Income tax benefit (expense)  (1)

26,414

(35,277)

(91,270)

(127,003)

Net income

217,055

96,992

512,590

317,063









Less: Net income attributable to noncontrolling interests

(20,274)

(7,375)

(58,470)

(15,408)

Net income attributable to CB&I

$    196,781

$      89,617

$      454,120

$    301,655









Net income attributable to CB&I per share:









Basic

$          1.83

$          0.93

$            4.29

$          3.12

Diluted

$          1.80

$          0.91

$            4.23

$          3.07









Weighted average shares outstanding:









Basic

107,527

96,479

105,935

96,633

Diluted

109,168

98,230

107,452

98,231









Cash dividends on shares:









Amount

$        5,375

$        4,841

$        21,453

$      19,394

Per Share

$          0.05

$          0.05

$            0.20

$          0.20










(1)

The three and twelve month periods ended December 31, 2013 include a tax benefit of $77,800 ($0.72 per share) related to the recognition of the balance of our U.K. net operating loss tax asset and certain U.S. foreign tax credits.











Non-GAAP Supplemental Information

(amounts adjusted to exclude Shaw acquisition and integration related costs) (2)











Adjusted income from operations

$    229,686

$    144,514

$      780,245

$    466,643

Adjusted % of Revenue

7.7%

9.4%

7.0%

8.5%











Adjusted net income attributable to CB&I

$    208,915

$      93,517

$      527,436

$    308,798

Adjusted net income attributable to CB&I per share (diluted)

$           1.91

$          0.95

$            4.91

$          3.14










(2)

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 December 31,

Twelve Months Ended December 31,


2013

2012

2013

2012












 % of 

 % of 

 % of 

 % of 

NEW AWARDS (1)

 Total 

 Total 

 Total 

 Total 

    Engineering, Construction and Maintenance 

$   4,035,925

76%

$  2,258,963

79%

$  7,929,048

65%

$  5,115,271

70%

    Fabrication Services 

799,681

15%

447,522

16%

2,681,886

22%

1,463,978

20%

    Technology 

233,784

5%

144,251

5%

633,690

5%

726,721

10%

    Government Solutions 

225,658

4%

-

0%

1,008,346

8%

-

0%

   Total  

$   5,295,048

$  2,850,736

$ 12,252,970

$  7,305,970


























 % of 

 % of 

 % of 

 % of 

REVENUE

 Total 

 Total 

 Total 

 Total 

    Engineering, Construction and Maintenance 

$   1,882,794

63%

$     964,695

63%

$  6,724,567

61%

$  3,305,377

60%

    Fabrication Services 

698,052

23%

424,678

27%

2,575,597

23%

1,692,533

31%

    Technology 

130,472

4%

148,095

10%

599,195

5%

487,296

9%

    Government Solutions 

288,939

10%

-

0%

1,195,168

11%

-

0%

   Total

$   3,000,257

$  1,537,468

$ 11,094,527

$  5,485,206


























 % of 

 % of 

 % of 

 % of 

INCOME FROM OPERATIONS

 Revenue 

 Revenue 

 Revenue 

 Revenue 

    Engineering, Construction and Maintenance 

$     109,575

5.8%

$       59,612

6.2%

$     328,919

4.9%

$     168,467

5.1%

    Fabrication Services 

75,647

10.8%

43,398

10.2%

259,750

10.1%

170,780

10.1%

    Technology 

40,125

30.8%

41,504

28.0%

156,835

26.2%

127,396

26.1%

    Government Solutions 

4,339

1.5%

-

0.0%

34,741

2.9%

-

0.0%

    Total operating groups 

$     229,686

7.7%

$     144,514

9.4%

$     780,245

7.0%

$     466,643

8.5%

         Acquisition and integration related costs 

(19,260)

(6,000)

(95,737)

(11,000)

   Total 

$     210,426

7.0%

$     138,514

9.0%

$     684,508

6.2%

$     455,643

8.3%











(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)



December 31,

December 31,


2013

2012

ASSETS






Current assets

$               3,389,565

$               2,721,555

Equity investments

101,754

97,267

Property and equipment, net

788,797

285,871

Goodwill and other intangibles, net

4,854,191

1,093,019

Other non-current assets

264,296

131,963



Total assets

$               9,398,603

$               4,329,675






LIABILITIES AND SHAREHOLDERS' EQUITY






Current maturities of long-term debt and revolver borrowings

$                  215,000

$                          -

Other current liabilities

4,582,624

1,772,522

Long-term debt 

1,625,000

800,000

Other non-current liabilities

459,531

360,843


Shareholders' equity

2,516,448

1,396,310



Total liabilities and shareholders' equity

$               9,398,603

$               4,329,675






Chicago Bridge & Iron Company N.V.

Condensed Consolidated Statements of Cash Flows and Other Financial Data

(in thousands)



Twelve Months


Ended December 31,


2013

2012

CASH FLOWS






Cash flows from operating activities

$                 (112,836)

$                  202,504

Cash flows from investing activities

(1,825,309)

(66,785)

Cash flows from financing activities

1,732,812

(174,111)

Effect of exchange rate changes on cash and cash equivalents

(17,560)

9,976


Decrease in cash and cash equivalents

(222,893)

(28,416)

Cash and cash equivalents, beginning of the year

643,395

671,811

Cash and cash equivalents, end of the year

$                  420,502

$                  643,395


OTHER FINANCIAL DATA






Increase in receivables, net

$                 (158,851)

$                 (258,132)

Change in contracts in progress, net

(614,628)

(222,133)

Decrease in inventory

1,504

2,339

(Decrease) increase in accounts payable

(43,491)

135,755


Change in contract capital

$                 (815,466)

$                 (342,171)


Depreciation and amortization 

$                  180,026

$                    66,421

Capital expenditures

$                    90,492

$                    72,279



December 31, 2013

December 31, 2012

Backlog (1)

$             27,794,212

$             10,928,818






(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

Twelve Months

Ended December 31,

Ended December 31,

2013

2012

2013

2012








Adjusted income from operations


















Income from operations

$210,426

$138,514

$684,508

$455,643


Acquisition and integration related costs

19,260

6,000

95,737

11,000


Adjusted income from operations

$229,686

$144,514

$780,245

$466,643


Adjusted % of Revenue

7.7%

9.4%

7.0%

8.5%


















Adjusted net income attributable to CB&I


















Net income attributable to CB&I

$196,781

$  89,617

$454,120

$301,655


Acquisition and integration related costs, net of tax (1)

12,134

3,900

73,316

7,143


Adjusted net income attributable to CB&I

$208,915

$  93,517

$527,436

$308,798








Adjusted net income attributable to CB&I per share


















Net income attributable to CB&I

$     1.80

$     0.91

$     4.23

$     3.07


Acquisition and integration related costs, net of tax (1)

0.11

0.04

0.68

0.07


Adjusted net income attributable to CB&I

$     1.91

$     0.95

$     4.91

$     3.14










(1)

The three and twelve month periods ended December 31, 2013 include $19,260 and $95,737 of acquisition and integration related costs, respectively, and the twelve month period ended December 31, 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). These costs total $19,260 and $106,254, less the tax impact of $7,126 and $32,938, respectively. The per share amounts for the three and twelve month periods are based upon diluted weighted average shares of 109,168 and 107,452, respectively.

 

The three and twelve month periods ended December 31, 2012 include $6,000 and $11,000 of acquisition and integration related costs, respectively, less the tax impacts of $2,100 and $3,857, respectively. The per share amounts for the three and twelve month periods are based upon diluted weighted average shares of 98,230 and 98,231, respectively.  

(Logo: http://photos.prnewswire.com/prnh/20130430/DA04155LOGO)



CONTACT: Media: www.CBI.com, Investors: Christi Thoms, +1 832 513 1200

CHICAGO BRIDGE & IRON CO N V Reports