 | NEWS RELEASE | |
For Immediate Release: | For Further Information Contact: | |
April 23, 2015 | Media: www.CBI.com | |
Investors: Christi Thoms-Knox +1 832 513 1200 | ||
CB&I Reports 2015 First Quarter Results
Significant year-over-year growth in revenue and earnings
THE WOODLANDS, Texas, Apr. 23, 2015 /PRNewswire/ -- CB&I (NYSE: CBI) today reported net income for the first quarter of $132.2 million, or $1.21 per diluted share, an increase of 40 percent against adjusted net income for the comparable period. Revenues for the first quarter were $3.1 billion, up from $2.9 billion, or 7 percent from the first quarter 2014. New awards for the first quarter totaled $3 billion, which resulted in a backlog of approximately $30 billion.
“CB&I delivered solid first quarter operational and financial performance,” said Philip K. Asherman, CB&I's President and Chief Executive Officer. “Revenues experienced some headwinds due to the effects of the strong dollar on our international work, which comprised nearly 40 percent of our revenues this quarter. We maintain confidence in our guidance for the year supported by the continuing development of LNG projects in North America, petrochemical developments on the Gulf Coast, combined cycle power plants in the U.S., and consistent margin performance from our operating groups.”
CB&I's earnings for the first quarter include stock-based compensation expense of approximately $32 million, or $0.20 per diluted share. Stock-based compensation expense for the remainder of 2015 is expected to be approximately $14 million, or $0.09 per diluted share, per quarter.
CB&I's first quarter results reflect the company’s ability to convert prospects into bookings across its global end markets for each of its business sectors. Noteworthy awards include a third LNG train for the Freeport LNG export terminal, additional fabrication services for our U.S. LNG export facility projects, plant services for a refinery in Texas, a polypropylene technology contract and storage awards for petrochemical developments in the Middle East, storage tanks in South America and Canada, technology and FEED contracts for a delayed coker unit for a refinery in Europe, scope increases from our LNG mechanical erection project in Australia and a variety of technology and fabrication awards globally.
Earnings Conference Call
CB&I will host a webcast on Apr. 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 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 | |||||||||||||||||
Ended March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Revenue | $ | 3,125,745 | $ | 2,928,132 | |||||||||||||
Cost of revenue | 2,755,574 | 2,626,730 | |||||||||||||||
Gross profit | 370,171 | 301,402 | |||||||||||||||
% of Revenue | 11.8 | % | 10.3 | % | |||||||||||||
Selling and administrative expense | 109,101 | 119,167 | |||||||||||||||
% of Revenue | 3.5 | % | 4.1 | % | |||||||||||||
Intangibles amortization | 15,652 | 16,234 | |||||||||||||||
Equity earnings | (4,202 | ) | (4,165 | ) | |||||||||||||
Other operating expense (income), net | 2,822 | (384 | ) | ||||||||||||||
Integration related costs | — | 8,067 | |||||||||||||||
Income from operations | 246,798 | 162,483 | |||||||||||||||
% of Revenue | 7.9 | % | 5.5 | % | |||||||||||||
Interest expense | (22,286 | ) | (18,887 | ) | |||||||||||||
Interest income | 2,048 | 2,060 | |||||||||||||||
Income before taxes | 226,560 | 145,656 | |||||||||||||||
Income tax expense | (69,811 | ) | (42,910 | ) | |||||||||||||
Net income | 156,749 | 102,746 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | (24,521 | ) | (13,795 | ) | |||||||||||||
Net income attributable to CB&I | $ | 132,228 | $ | 88,951 | |||||||||||||
Net income attributable to CB&I per share: | |||||||||||||||||
Basic | $ | 1.22 | $ | 0.83 | |||||||||||||
Diluted | $ | 1.21 | $ | 0.82 | |||||||||||||
Weighted average shares outstanding: | |||||||||||||||||
Basic | 108,197 | 107,677 | |||||||||||||||
Diluted | 109,261 | 109,113 | |||||||||||||||
Cash dividends on shares: | |||||||||||||||||
Amount | $ | 7,597 | $ | 7,559 | |||||||||||||
Per share | $ | 0.07 | $ | 0.07 | |||||||||||||
Non-GAAP Supplemental Information | |||||||||||||||||
(amounts adjusted to exclude integration related costs) (1) | |||||||||||||||||
Adjusted income from operations | $ | 170,550 | |||||||||||||||
Adjusted % of Revenue | 5.8 | % | |||||||||||||||
Adjusted net income attributable to CB&I | $ | 94,437 | |||||||||||||||
Adjusted net income attributable to CB&I per share (diluted) | $ | 0.87 | |||||||||||||||
(1) The exclusion of 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 March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
% of | % of | ||||||||||||||||
NEW AWARDS (1), (2) | Total | Total | |||||||||||||||
Engineering & Construction | $ | 1,209,407 | 40% | $ | 4,494,837 | 78% | |||||||||||
Fabrication Services | 927,374 | 31% | 516,729 | 9% | |||||||||||||
Technology | 77,022 | 2% | 77,446 | 1% | |||||||||||||
Capital Services | 817,380 | 27% | 708,477 | 12% | |||||||||||||
Total | $ | 3,031,183 | $ | 5,797,489 | |||||||||||||
% of | % of | ||||||||||||||||
REVENUE (2) | Total | Total | |||||||||||||||
Engineering & Construction | $ | 1,818,586 | 58% | $ | 1,686,181 | 58% | |||||||||||
Fabrication Services | 637,809 | 21% | 671,911 | 23% | |||||||||||||
Technology | 99,361 | 3% | 102,573 | 3% | |||||||||||||
Capital Services | 569,989 | 18% | 467,467 | 16% | |||||||||||||
Total | $ | 3,125,745 | $ | 2,928,132 | |||||||||||||
% of | % of | ||||||||||||||||
INCOME FROM OPERATIONS (2) | Revenue | Revenue | |||||||||||||||
Engineering & Construction | $ | 136,418 | 7.5% | $ | 84,636 | 5.0% | |||||||||||
Fabrication Services | 52,399 | 8.2% | 46,915 | 7.0% | |||||||||||||
Technology | 48,024 | 48.3% | 34,669 | 33.8% | |||||||||||||
Capital Services | 9,957 | 1.7% | 4,330 | 0.9% | |||||||||||||
Total operating groups | $ | 246,798 | 7.9% | $ | 170,550 | 5.8% | |||||||||||
Integration related costs | — | (8,067 | ) | ||||||||||||||
Total | $ | 246,798 | 7.9% | $ | 162,483 | 5.5% | |||||||||||
(1) New awards represent the value of new project commitments received by the Company during a given period, as well as scope growth on existing commitments. | |||||||||||||||||
(2) During the three months ended March 31, 2015, we realigned our reportable segments to reflect the present management oversight of our operations. Our maintenance business that was previously reported within our Engineering & Construction operating group (formerly Engineering, Construction & Maintenance) is now reported within our Capital Services operating group (formerly Environmental Solutions), and our engineered products business that was previously reported within our Technology operating group is now reported within our Fabrication Services operating group. Our 2014 segment results were reclassified to reflect the reportable segment realignment. | |||||||||||||||||
Chicago Bridge & Iron Company N.V. | ||||||||||
Condensed Consolidated Balance Sheets | ||||||||||
(in thousands) | ||||||||||
March 31, | December 31, | |||||||||
2015 | 2014 | |||||||||
ASSETS | ||||||||||
Current assets | $ | 3,898,210 | $ | 3,530,459 | ||||||
Equity investments | 137,379 | 107,984 | ||||||||
Property and equipment, net | 750,563 | 771,651 | ||||||||
Goodwill and other intangibles, net | 4,701,384 | 4,751,685 | ||||||||
Other non-current assets | 230,705 | 219,252 | ||||||||
Total assets | $ | 9,718,241 | $ | 9,381,031 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
Current maturities of long-term debt and other borrowings | $ | 749,286 | $ | 270,738 | ||||||
Other current liabilities | 3,838,249 | 4,051,492 | ||||||||
Long-term debt | 1,525,128 | 1,564,158 | ||||||||
Other non-current liabilities | 619,572 | 618,340 | ||||||||
Shareholders' equity | 2,986,006 | 2,876,303 | ||||||||
Total liabilities and shareholders’ equity | $ | 9,718,241 | $ | 9,381,031 | ||||||
Chicago Bridge & Iron Company N.V. | ||||||||||
Condensed Consolidated Statements of Cash Flows and Other Financial Data | ||||||||||
(in thousands) | ||||||||||
Three Months | ||||||||||
Ended March 31, | ||||||||||
2015 | 2014 | |||||||||
CASH FLOWS | ||||||||||
Cash flows from operating activities | $ | (289,871 | ) | $ | (145,752 | ) | ||||
Cash flows from investing activities | (56,879 | ) | (22,026 | ) | ||||||
Cash flows from financing activities | 403,409 | 152,250 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (60,965 | ) | 15,189 | |||||||
Decrease in cash and cash equivalents | (4,306 | ) | (339 | ) | ||||||
Cash and cash equivalents, beginning of the year | 351,323 | 420,502 | ||||||||
Cash and cash equivalents, end of the period | $ | 347,017 | $ | 420,163 | ||||||
OTHER FINANCIAL DATA | ||||||||||
(Increase) decrease in receivables, net | $ | (41,175 | ) | $ | 111,885 | |||||
Change in contracts in progress, net | (330,345 | ) | (422,510 | ) | ||||||
Decrease in inventory | 2,803 | 10,968 | ||||||||
Decrease in accounts payable | (230,152 | ) | (838 | ) | ||||||
Change in contract capital | $ | (598,869 | ) | $ | (300,495 | ) | ||||
Depreciation and amortization | $ | 44,309 | $ | 45,625 | ||||||
Capital expenditures | $ | 28,978 | $ | 26,485 | ||||||
March 31, 2015 | December 31, 2014 | |||||||||
Backlog (1) | $ | 29,934,182 | $ | 30,363,269 | ||||||
(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 | ||||||
Ended March 31, | ||||||
2014 | ||||||
Adjusted income from operations | ||||||
Income from operations | $ | 162,483 | ||||
Integration related costs | 8,067 | |||||
Adjusted income from operations | $ | 170,550 | ||||
Adjusted % of Revenue | 5.8 | % | ||||
Adjusted net income attributable to CB&I | ||||||
Net income attributable to CB&I | $ | 88,951 | ||||
Integration related costs, net of tax (1) | 5,486 | |||||
Adjusted net income attributable to CB&I | $ | 94,437 | ||||
Adjusted net income attributable to CB&I per share | ||||||
Net income attributable to CB&I | $ | 0.82 | ||||
Integration related costs, net of tax (1) | 0.05 | |||||
Adjusted net income attributable to CB&I | $ | 0.87 | ||||
(1) The three month period ended March 31, 2014 includes $8,067 of integration related costs, less the tax impact of $2,581. The per share amount for the three month period is based upon diluted weighted average shares of 109,113. | ||||||
CONTACT: Media, www.cbi.com, Investors, Christi Thoms-Knox, +1 832 513 1200