EX-99.1 2 a201412318-kex991.htm EXHIBIT 99.1 2014.12.31 8-K EX. 99.1


CB&I Reports Strong 2014 Fourth Quarter and Full-Year Results
New Bookings up 33%, Revenue up 17%, and Operating Income up 31% from 2013
THE WOODLANDS, Texas, Feb. 24, 2015 /PRNewswire/ -- CB&I (NYSE: CBI) today reported financial results for the fourth quarter and full-year 2014. Adjusted net income for 2014 was $568.7 million, or $5.21 per diluted share, excluding integration related costs of $25.1 million net of tax, or $0.23 per diluted share. For the year, GAAP net income was $543.6 million, or $4.98 per diluted share. CB&I’s consolidated 2014 revenue was $13.0 billion, up from $11.1 billion, a 17 percent increase from the prior year. New awards for the year totaled $16.3 billion, which resulted in a backlog of $30.4 billion.
For the fourth quarter, CB&I’s adjusted net income was $161.3 million, or $1.47 per diluted share, excluding acquisition and integration related costs of $10.9 million net of tax, or $0.10 per diluted share. GAAP net income for the quarter was $150.4 million, or $1.37 per diluted share. Revenue for the fourth quarter was $3.4 billion with new awards of $3.3 billion. Cash from operating activities for the fourth quarter was $613.3 million, resulting in $264.0 million for the year.
“We are pleased to deliver another year of strong safety, operational and financial performance. Our new awards and backlog are at record levels, and our prospect list for 2015 supports our outlook for sustained earnings growth,” said Philip K. Asherman, CB&I’s President and Chief Executive Officer. “Despite the uncertainty generated by lower oil prices, our customers continue to rely on us to deliver solutions for their major capital projects. Over the last two years we made great progress in reducing costs and generating efficiencies across the organization, and believe our cost discipline coupled with the benefits of our diversified integrated offerings will allow us to maintain our performance and provide solid returns for our shareholders.”
New awards of $16.3 billion for the year highlight the breadth and reach of our offerings across our end markets. Awards included strong bookings in the United States such as the engineering and construction of a three train LNG export terminal; two combined cycle gas turbine power projects; an ammonia storage tank; pipe fabrication for a propane dehydrogenation unit; nuclear and petrochemical facility maintenance work; as well as various decommissioning and decontamination, environmental remediation and government services awards. Globally, we booked noteworthy awards for engineering and procurement for a clean fuels project; structural, mechanical and piping construction for an LNG project; construction of petroleum storage tanks; licensing for a grassroots ethylene plant; engineered products for refining, petrochemicals and gas processing facilities; strategic technology licenses; and numerous additional steel plate storage and fabrication awards.

Commenting on CB&I’s outlook for 2015, Mr. Asherman stated, “We project less than 5 percent of our revenue from new bookings could be affected by timing risks associated with lower oil prices. Accordingly, we think it is prudent to marginally adjust our guidance to revenue of $14.4 billion - $15.2 billion and earnings per share of $5.55 - $6.05.”
Earnings Conference Call
CB&I will host a webcast on Feb. 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 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 54,000 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, 2014, 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,
 
 
2014
 
 
 
2013
 
2014
 
 
 
2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
3,371,686

 
 
 
$
3,000,257

 
$
12,974,930

 
 
 
$
11,094,527

Cost of revenue
 
2,981,048

 
 
 
2,661,051

 
11,508,521

 
 
 
9,895,517

Gross profit
 
390,638

 
 
 
339,206

 
1,466,409

 
 
 
1,199,010

% of Revenue
 
11.6
%
 
 
 
11.3
%
 
11.3
%
 
 
 
10.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Selling and administrative expense
 
95,425

 
 
 
98,921

 
405,208

 
 
 
379,485

% of Revenue
 
2.8
%
 
 
 
3.3
%
 
3.1
%
 
 
 
3.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Intangibles amortization
 
16,661

 
 
 
18,429

 
66,506

 
 
 
61,111

Equity earnings
 
(11,222
)
 
 
 
(7,337
)
 
(25,225
)
 
 
 
(23,474
)
Other operating (income) expense, net
 
(1,596
)
 
 
 
(493
)
 
(2,373
)
 
 
 
1,643

Acquisition and integration related costs
 
17,518

 
 
 
19,260

 
39,685

 
 
 
95,737

Income from operations
 
273,852

 
 
 
210,426

 
982,608

 
 
 
684,508

% of Revenue
 
8.1
%
 
 
 
7.0
%
 
7.6
%
 
 
 
6.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
(21,691
)
 
 
 
(21,506
)
 
(83,590
)
 
 
 
(87,578
)
Interest income
 
2,403

 
 
 
1,721

 
8,524

 
 
 
6,930

Income before taxes
 
254,564

 
 
 
190,641

 
907,542

 
 
 
603,860

 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax (expense) benefit
 
(72,141
)
 
 
 
26,414

 
(271,417
)
 
 
 
(91,270
)
Net income
 
182,423

 
 
 
217,055

 
636,125

 
 
 
512,590

 
 
 
 
 
 
 
 
 
 
 
 
 
Less: Net income attributable to noncontrolling interests
 
(32,013
)
 
 
 
(20,274
)
 
(92,518
)
 
 
 
(58,470
)
Net income attributable to CB&I
 
$
150,410

 
 
 
$
196,781

 
$
543,607

 
 
 
$
454,120

 
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to CB&I per share:
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
1.39

 
 
 
$
1.83

 
$
5.03

 
 
 
$
4.29

Diluted
 
$
1.37

 
 
 
$
1.80

 
$
4.98

 
 
 
$
4.23

 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
108,207

 
 
 
107,527

 
108,047

 
 
 
105,935

Diluted
 
109,466

 
 
 
109,168

 
109,122

 
 
 
107,452

 
 
 
 
 
 
 
 
 
 
 
 
 
Cash dividends on shares:
 
 
 
 
 
 
 
 
 
 
 
 
Amount
 
$
7,546

 
 
 
$
5,375

 
$
30,246

 
 
 
$
21,453

Per share
 
$
0.07

 
 
 
$
0.05

 
$
0.28

 
 
 
$
0.20

 
 
 
 
 
 
 
Non-GAAP Supplemental Information
(amounts adjusted to exclude Shaw acquisition and integration related costs) (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted income from operations
 
$
291,370

 
 
 
$
229,686

 
$
1,022,293

 
 
 
$
780,245

Adjusted % of Revenue
 
8.6
%
 
 
 
7.7
%
 
7.9
%
 
 
 
7.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted net income attributable to CB&I
 
$
161,270

 
 
 
$
208,915

 
$
568,695

 
 
 
$
527,436

Adjusted net income attributable to CB&I per share (diluted)
 
$
1.47

 
 
 
$
1.91

 
$
5.21

 
 
 
$
4.91

 
 
 
 
 
 
 
 
 
(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 December 31,
 
Twelve Months Ended December 31,
 
 
2014
 
2013
 
2014
 
2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
% of 
 
 
 
% of 
 
 
 
% of 
 
 
 
% of 
NEW AWARDS (1)
 
 
 
Total 
 
 
 
Total 
 
 
 
Total 
 
 
 
Total 
Engineering, Construction and Maintenance (2)
 
$
2,430,030

 
74%
 
$
4,035,993

 
76%
 
$
12,322,827

 
76%
 
$
8,131,206

 
66%
Fabrication Services
 
455,720

 
14%
 
799,681

 
15%
 
1,816,021

 
11%
 
2,681,886

 
22%
Technology
 
176,435

 
5%
 
233,784

 
5%
 
993,569

 
6%
 
633,690

 
5%
Environmental Solutions (2)
 
226,517

 
7%
 
225,590

 
4%
 
1,132,856

 
7%
 
806,188

 
7%
Total 
 
$
3,288,702

 
 
 
$
5,295,048

 
 
 
$
16,265,273

 
 
 
$
12,252,970

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
% of 
 
 
 
% of 
 
 
 
% of 
 
 
 
% of 
REVENUE
 
 
 
Total 
 
 
 
Total 
 
 
 
Total 
 
 
 
Total 
Engineering, Construction and Maintenance (2)
 
$
2,372,085

 
70%
 
$
1,961,360

 
66%
 
$
9,001,982

 
69%
 
$
7,165,739

 
65%
Fabrication Services
 
618,532

 
18%
 
698,052

 
23%
 
2,521,594

 
19%
 
2,575,597

 
23%
Technology
 
157,984

 
5%
 
130,472

 
4%
 
602,513

 
5%
 
599,195

 
5%
Environmental Solutions (2)
 
223,085

 
7%
 
210,373

 
7%
 
848,841

 
7%
 
753,996

 
7%
Total 
 
$
3,371,686

 
 
 
$
3,000,257

 
 
 
$
12,974,930

 
 
 
$
11,094,527

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
% of 
 
 
 
% of 
 
 
 
% of 
 
 
 
% of 
INCOME FROM OPERATIONS
 
 
 
Revenue 
 
 
 
Revenue 
 
 
 
Revenue 
 
 
 
Revenue 
Engineering, Construction and Maintenance (2)
 
$
163,152

 
6.9%
 
$
110,885

 
5.7%
 
$
560,563

 
6.2%
 
$
350,525

 
4.9%
Fabrication Services
 
66,179

 
10.7%
 
75,647

 
10.8%
 
234,884

 
9.3%
 
259,750

 
10.1%
Technology
 
52,494

 
33.2%
 
40,125

 
30.8%
 
187,385

 
31.1%
 
156,835

 
26.2%
Environmental Solutions (2)
 
9,545

 
4.3%
 
3,029

 
1.4%
 
39,461

 
4.6%
 
13,135

 
1.7%
Total operating groups
 
$
291,370

 
8.6%
 
$
229,686

 
7.7%
 
$
1,022,293

 
7.9%
 
$
780,245

 
7.0%
Acquisition and integration related costs
 
(17,518
)
 
 
 
(19,260
)
 
 
 
(39,685
)
 
 
 
(95,737
)
 
 
Total
 
$
273,852

 
8.1%
 
$
210,426

 
7.0%
 
$
982,608

 
7.6%
 
$
684,508

 
6.2%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)   New awards represents the value of new project commitments received by the Company during a given period, as well as scope growth on existing commitments.  
 
 
 
 
 
 
 
 
 
 
 
(2) The 2013 results for a large engineering, procurement and construction project in the U.S. that was previously reported within our Environmental Solutions operating group were 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)
 
 
 
 
 
 
 
December 31,
 
December 31,
 
 
2014
 
2013
ASSETS
 
 
 
 
 
 
 
 
 
Current assets
 
$
3,530,459

 
$
3,389,565

Equity investments
 
107,984

 
101,754

Property and equipment, net
 
771,651

 
788,797

Goodwill and other intangibles, net
 
4,751,685

 
4,854,191

Other non-current assets
 
219,252

 
255,286

Total assets
 
$
9,381,031

 
$
9,389,593

 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
Current maturities of long-term debt and other borrowings
 
$
270,738

 
$
215,000

Other current liabilities
 
4,051,492

 
4,582,624

Long-term debt
 
1,564,158

 
1,625,000

Other non-current liabilities
 
618,340

 
459,531

 
 
 
 
 
Shareholders' equity
 
2,876,303

 
2,507,438

Total liabilities and shareholders’ equity
 
$
9,381,031

 
$
9,389,593

 
Chicago Bridge & Iron Company N.V.
Condensed Consolidated Statements of Cash Flows and Other Financial Data
(in thousands)
 
 
 
 
 
Twelve Months
 
 
Ended December 31,
 
 
2014
 
2013
CASH FLOWS
 
 
 
 
 
 
 
 
 
Cash flows from operating activities
 
$
264,047

 
$
(112,836
)
Cash flows from investing activities
 
(182,277
)
 
(1,825,309
)
Cash flows from financing activities
 
(75,523
)
 
1,732,812

Effect of exchange rate changes on cash and cash equivalents
 
(75,426
)
 
(17,560
)
Decrease in cash and cash equivalents
 
(69,179
)
 
(222,893
)
Cash and cash equivalents, beginning of the year
 
420,502

 
643,395

Cash and cash equivalents, end of the year
 
$
351,323

 
$
420,502

 
 
 
 
 
OTHER FINANCIAL DATA
 
 
 
 
 
 
 
 
 
Decrease (increase) in receivables, net
 
$
78,881

 
$
(154,143
)
Change in contracts in progress, net
 
(942,689
)
 
(619,336
)
Decrease in inventory
 
16,832

 
1,504

Increase (decrease) in accounts payable
 
99,376

 
(43,491
)
Change in contract capital
 
$
(747,600
)
 
$
(815,466
)
 
 
 
 
 
Depreciation and amortization
 
$
181,398

 
$
180,026

Capital expenditures
 
$
117,624

 
$
90,492

 
 
 
 
 
 
 
December 31, 2014
 
December 31, 2013
Backlog (1)
 
$
30,363,269

 
$
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
 
Twelve Months
 
 
Ended December 31,
 
Ended December 31,
 
 
2014
 
2013
 
2014
 
2013
 
 
 
 
 
 
 
 
 
Adjusted income from operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from operations
 
$
273,852

 
$
210,426

 
$
982,608

 
$
684,508

Acquisition and integration related costs
 
17,518

 
19,260

 
39,685

 
95,737

Adjusted income from operations
 
$
291,370

 
$
229,686

 
$
1,022,293

 
$
780,245

Adjusted % of Revenue
 
8.6
%
 
7.7
%
 
7.9
%
 
7.0
%
 
 
 
 
 
 
 
 
 
Adjusted net income attributable to CB&I
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to CB&I
 
$
150,410

 
$
196,781

 
$
543,607

 
$
454,120

Acquisition and integration related costs, net of tax (1)
 
10,860

 
12,134

 
25,088

 
73,316

Adjusted net income attributable to CB&I
 
$
161,270

 
$
208,915

 
$
568,695

 
$
527,436

 
 
 
 
 
 
 
 
 
Adjusted net income attributable to CB&I per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to CB&I
 
$
1.37

 
$
1.80

 
$
4.98

 
$
4.23

Acquisition and integration related costs, net of tax (1)
 
0.10

 
0.11

 
0.23

 
0.68

Adjusted net income attributable to CB&I
 
$
1.47

 
$
1.91

 
$
5.21

 
$
4.91

 
 
 
 
 
 
 
(1) The three and twelve month periods ended December 31, 2014 include $17,518 and $39,685, respectively, of integration related costs, less the tax impact of $6,658 and $14,597, respectively. The per share amounts for the three and twelve month periods are based upon diluted weighted average shares of 109,466 and 109,122, respectively.
 
 
 
 
 
 
 
The three and twelve month periods ended December 31, 2013 include $19,260 and $95,737, respectively, of acquisition and integration related costs, 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 2013). 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.



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