EX-99.1 2 a4874182ex991.txt EXHIBIT 99.1 Exhibit 99.1 CB&I First Quarter 2005 Earnings Increase 8% THE WOODLANDS, Texas--(BUSINESS WIRE)--April 27, 2005-- New Business Tops $1.4 Billion; Revenue Up 8%; Backlog Doubles CB&I (NYSE:CBI) today reported net income increased 8% to $15.8 million or $0.16 per diluted share for the first quarter ended March 31, 2005, compared with $14.6 million or $0.15 per diluted share for the comparable period in 2004. Per share numbers have been adjusted for the two-for-one stock split which took effect March 31, 2005. For the quarter ended March 31, 2005, new business more than tripled to $1.4 billion, compared with $348 million in 2004. New business during the quarter included the previously announced LNG import terminal in the U.K., the second phase award for an LNG import terminal in Wales and significant clean fuels awards in North America. Backlog at March 31, 2005, increased 118% to $3.3 billion, compared with $1.5 billion at the end of the year-earlier period. "We're pleased to report that CB&I is off to a great start for 2005," said Gerald M. Glenn, CB&I's Chairman, President and CEO. "With record backlog going into the year, another very strong quarter for new business, and with earnings and revenue on target for the quarter, we anticipate the Company's performance will continue to improve." Revenue for the first quarter of 2005 increased 8% to $478.8 million from $443.6 million in the first quarter of 2004. Revenue grew 18% in the North America segment as a result of higher backlog going into the year, progress on U.S. LNG projects and turnaround work. Revenue increased 14% in the Company's Europe, Africa, Middle East (EAME) segment, due mainly to the ramp-up of LNG work in the U.K. Revenue declined 36% in the Asia Pacific (AP) segment, as several major projects in Australia wound up in 2004, and was 21% lower in the Central and South America (CSA) segment. Income from operations in the first quarter of 2005 increased 12% to $25.1 million, compared with $22.4 million in the year-earlier period, due to higher volume, project mix and a lack of significant project cost provisions as experienced in 2004. CB&I had $154.9 million of cash in excess of debt at March 31, 2005. The Company had cash and cash equivalents of $237.4 million at the end of the first quarter of 2005, compared with $81.8 million at the end of the first quarter of 2004. Capital expenditures for the first quarter were $5.7 million, compared with $2.7 million in the year-earlier period. "Continued international growth in natural gas demand is providing us with abundant opportunities in the worldwide LNG market," Glenn added. "In addition, refiners are spending capital to comply with stricter environmental regulations for transportation fuels, and also to upgrade and revamp their process capabilities to meet growing demand and handle heavier and more sour grades of crude oil. Our comprehensive EPC capabilities and proven technologies have positioned us well to respond to these market drivers and meet the needs of our customers worldwide." Any statements made in this release that are not based on historical fact are forward-looking statements and represent management's best judgment as to what may occur in the future. The actual outcome and results are not guaranteed, are subject to risks, uncertainties and assumptions and may differ materially from what is expressed. A variety of factors could cause business conditions and results to differ materially from what is contained in the forward-looking statements including, but not limited to, the Company's ability to realize cost savings from its expected execution performance of contracts; the uncertain timing and the funding of new contract awards, and project cancellations and operating risks; cost overruns on fixed priced contracts; changes in the costs or availability of or delivery schedule for components, materials and labor; increased competition; fluctuating revenues resulting from a number of factors, including the cyclical nature of the individual markets in which the Company's customers operate; lower than expected activity in the hydrocarbon industry -- including but not limited to LNG and clean fuels projects -- demand from which is the largest component of the Company's revenue, or lower than expected growth in the Company's other primary end markets; a downturn in the economy in general; political and economic conditions including, but not limited to, war, conflict or civil or economic unrest in countries in which we operate; the Company's ability to integrate and successfully operate acquired businesses and the risks associated with those businesses; and the ultimate outcome or effect of the pending FTC proceeding on the Company's business, financial condition and results of operations. Additional factors which could cause actual results to differ from such forward-looking statements are set forth in the Company's Form 10-K filed with the SEC for the year ended December 31, 2004. The Company does not undertake to update any forward-looking statements contained herein, whether as a result of new information, future events or otherwise. CB&I is one of the world's leading engineering, procurement and construction (EPC) companies, specializing in lump-sum turnkey projects for customers that produce, process, store and distribute the world's natural resources. With more than 60 locations and approximately 11,000 employees throughout the world, CB&I capitalizes on its global expertise and local knowledge to safely and reliably deliver projects virtually anywhere. Information about CB&I is available at www.CBI.com. ---------------------------------------------------------------------- CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) Three Months Ended March 31, 2005 2004 Revenue $478,783 $443,553 Cost of revenue 427,920 396,790 Selling and administrative expenses 25,517 23,847 % of Revenue 5.3% 5.4% Intangibles amortization 386 506 Other operating income, net (102) (23) ------- ------- Income from operations 25,062 22,433 % of Revenue 5.2% 5.1% Interest expense (2,232) (1,726) Interest income 1,365 206 ------- ------- Income before taxes and minority interest 24,195 20,913 Income tax expense (8,105) (6,692) ------- ------- Income before minority interest 16,090 14,221 Minority interest in (income) loss (340) 383 ------- ------- Net income $ 15,750 $ 14,604 ======= ======= Net income per share Basic $ 0.16 $ 0.16 Diluted $ 0.16 $ 0.15 Weighted average shares outstanding Basic 96,779 94,042 Diluted 99,998 98,630 ---------------------------------------------------------------------- CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES SEGMENT INFORMATION (in thousands) Three Months Ended March 31, March 31, 2005 2004 NEW BUSINESS TAKEN(a) % of % of Total Total North America $ 470,227 33% $ 167,472 48% Europe/Africa/Middle East 837,463 60% 97,239 28% Asia Pacific 70,777 5% 65,015 19% Central & South America 27,897 2% 18,006 5% --------- --------- Total $1,406,364 $ 347,732 ========= ========= REVENUE % of % of Total Total North America $ 303,204 63% $ 257,050 58% Europe/Africa/Middle East 120,547 25% 105,912 24% Asia Pacific 37,736 8% 58,638 13% Central & South America 17,296 4% 21,953 5% --------- --------- Total $ 478,783 $ 443,553 ========= ========= INCOME FROM OPERATIONS % of % of Revenue Revenue North America $ 21,885 7.2% $ 14,700 5.7% Europe/Africa/Middle East 687 0.6% 3,451 3.3% Asia Pacific 1,938 5.1% 1,680 2.9% Central & South America 552 3.2% 2,602 11.9% --------- --------- Total $ 25,062 5.2% $ 22,433 5.1% ========= ========= (a) New business taken represents the value of new project commitments received by the Company during a given period. These commitments are included in backlog until work is performed and revenue is recognized or until cancellation. Backlog may also fluctuate with currency movements. ---------------------------------------------------------------------- CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) March 31, Dec. 31, 2005 2004 ASSETS Current assets $ 710,438 $ 685,279 Property and equipment, net 119,868 119,474 Goodwill and other intangibles, net 261,672 262,732 Other non-current assets 39,284 35,233 --------- --------- Total assets $1,131,262 $1,102,718 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities $ 487,574 $ 481,190 Long-term debt 50,000 50,000 Other non-current liabilities 108,650 102,290 Shareholders' equity 485,038 469,238 --------- --------- Total liabilities and shareholders' equity $1,131,262 $1,102,718 ========= ========= ---------------------------------------------------------------------- CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND OTHER FINANCIAL DATA (in thousands) Three Months Ended March 31, 2005 2004 CASH FLOWS Cash flows from operating activities $ 6,642 $ (27,547) Cash flows from investing activities (5,250) (4,339) Cash flows from financing activities (355) 762 ------- ------- Increase/(decrease) in cash and cash equivalents 1,037 (31,124) Cash and cash equivalents, beginning of the year 236,390 112,918 ------- ------- Cash and cash equivalents, end of the period $ 237,427 $ 81,794 ======= ======= OTHER FINANCIAL DATA Depreciation and amortization expense $ 5,594 $ 5,292 Capital expenditures $ 5,653 $ 2,748 (Increase)in receivables, net $ (3,407) $ (52,195) (Increase)/decrease in contracts in progress, net (575) 14,326 (Increase)/decrease in non-current contract retentions (1,177) 3,211 (Decrease) in accounts payable (8,650) (14,217) ------- ------- Change $ (13,809) $ (48,875) ======= ======= CONTACT: CB&I, The Woodlands Media: Bruce Steimle, 832-513-1111 or Analysts: Marty Spake, 832-513-1245