EX-99.1 2 a50042790ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

CB&I Reports Third Quarter 2011 Results

CB&I’s Quarterly New Awards and Net Income Hit Historic Highs

THE WOODLANDS, Texas--(BUSINESS WIRE)--October 25, 2011--CB&I (NYSE: CBI) today reported net income of $72.2 million, or $0.72 per diluted share, for the third quarter of 2011. Revenue for the quarter was $1.3 billion.

New awards for the third quarter exceeded $3.8 billion, including a $2.3 billion contract in Australia for the mechanical, electrical and instrumentation work on the Gorgon project; a $500 million contract for LNG storage tanks for an Australia LNG project; a project specification contract for the Arrow LNG project in Australia; and a $60 million storage tank contract in Saudi Arabia. Backlog as of September 30 was $9.3 billion, up from $6.9 billion at year-end 2010.

“I am pleased to report a very strong quarter on all fronts – strategically, operationally and financially,” said Philip K. Asherman, President and CEO. “CB&I is well positioned to capitalize on the increasing global demand for energy infrastructure, particularly in our LNG, gas processing and oil sands markets. Based on our financial strength, market momentum and operational performance, we are confident we will continue to meet expectations for the remainder of the year and into 2012.”

CB&I is adjusting its EPS guidance to $2.40 - $2.50. New Awards guidance is unchanged at $6.8 - $7.2 billion. Revenue guidance remains $4.3 - $4.7 billion.

In the first nine months of 2011, the company returned $115 million to shareholders, which included $100 million of stock repurchases and $15 million through the quarterly cash dividends. Cash and cash equivalents as of September 30 were $540 million.

Earnings Conference Call

CB&I will host a webcast on October 25 at 4:00 p.m. CDT (5:00 p.m. EDT) 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, 2010, 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 Nine Months
Ended September 30, Ended September 30,
2011 2010 2011 2010
 
Revenue $ 1,255,344 $ 909,099 $ 3,295,320 $ 2,694,467
 
Cost of revenue 1,108,532 789,231 2,871,699 2,332,016
       
Gross profit 146,812 119,868 423,621 362,451
% of Revenue 11.7 % 13.2 % 12.9 % 13.5 %
Selling and administrative expense 49,749 43,365 155,889 140,955
% of Revenue 4.0 % 4.8 % 4.7 % 5.2 %
Intangibles amortization 6,409 5,832 19,073 17,592
Other operating expense (income), net 614 (708 ) (230 ) 144
Equity earnings (2,688 ) (6,687 ) (7,238 ) (13,729 )
       
Income from operations 92,728 78,066 256,127 217,489
% of Revenue 7.4 % 8.6 % 7.8 % 8.1 %
Interest expense (1,105 ) (5,739 ) (7,700 ) (12,538 )
Interest income 2,381 1,272 5,496 3,563
       
Income before taxes 94,004 73,599 253,923 208,514
 
Income tax expense (22,601 ) (19,918 ) (69,253 ) (61,044 )
       
Net income 71,403 53,681 184,670 147,470
 
Less: Net loss (income) attributable to noncontrolling interests   761     (1,837 )   (106 )   (6,108 )
 
Net income attributable to CB&I $ 72,164   $ 51,844   $ 184,564   $ 141,362  
 
Net income attributable to CB&I per share:
Basic $ 0.74 $ 0.53 $ 1.88 $ 1.44
Diluted $ 0.72 $ 0.52 $ 1.84 $ 1.41
 
Weighted average shares outstanding:
Basic 97,772 97,675 98,251 98,448
Diluted 99,814 99,756 100,271 100,445
 
Cash dividends on shares:
Amount $ 4,921 $ - $ 14,841 $ -
Per Share $ 0.05 $ - $ 0.15 $ -
                 
CHICAGO BRIDGE & IRON COMPANY N.V.
SEGMENT INFORMATION
(in thousands)
 
Three Months Ended September 30, Nine Months Ended September 30,
2011 2010 2011 2010
 
% of % of % of % of
NEW AWARDS* Total Total Total Total
CB&I Steel Plate Structures $ 3,135,692 82 % $ 465,050 52 % $ 3,797,777 63 % $ 939,131 40 %
CB&I Lummus 499,046 13 % 337,985 38 % 1,853,137 31 % 1,157,722 49 %
Lummus Technology   173,418 5 %   90,097 10 %   384,394 6 %   272,314 11 %
Total $ 3,808,156 $ 893,132 $ 6,035,308 $ 2,369,167
 
 
% of % of % of % of
REVENUE Total Total Total Total
CB&I Steel Plate Structures $ 511,376 41 % $ 348,662 38 % $ 1,336,441 40 % $ 1,043,831 39 %
CB&I Lummus 630,010 50 % 471,075 52 % 1,636,227 50 % 1,443,024 53 %
Lummus Technology   113,958 9 %   89,362 10 %   322,652 10 %   207,612 8 %
Total $ 1,255,344 $ 909,099 $ 3,295,320 $ 2,694,467
 
 
% of % of % of % of
INCOME FROM OPERATIONS Revenue Revenue Revenue Revenue
CB&I Steel Plate Structures $ 43,284 8.5 % $ 31,902 9.1 % $ 127,697 9.6 % $ 96,540 9.2 %
CB&I Lummus 22,601 3.6 % 19,680 4.2 % 62,092 3.8 % 64,232 4.5 %
Lummus Technology   26,843 23.6 %   26,484 29.6 %   66,338 20.6 %   56,717 27.3 %
Total $ 92,728 7.4 % $ 78,066 8.6 % $ 256,127 7.8 % $ 217,489 8.1 %
 
 
* 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)
 
 
September 30, December 31,
2011 2010
ASSETS
 
Current assets $ 1,583,734 $ 1,206,648
Equity investments 94,170 92,400
Property and equipment, net 264,547 290,206
Goodwill and other intangibles, net 1,132,941 1,154,256
Other non-current assets 145,266 166,024
   
Total assets $ 3,220,658   $ 2,909,534  
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
Notes payable $ - $ 334
Current maturity of long-term debt 40,000 40,000
Other current liabilities 1,630,873 1,400,299
Long-term debt 40,000 40,000
Other non-current liabilities 321,767 345,056
 
Shareholders' equity 1,188,018 1,083,845
   
Total liabilities and shareholders' equity $ 3,220,658   $ 2,909,534  
 
 
 
CHICAGO BRIDGE & IRON COMPANY N.V.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND OTHER FINANCIAL DATA
(in thousands)
 
Nine Months
Ended September 30,
2011 2010
CASH FLOWS
 
Cash flows from operating activities $ 189,126 $ 87,219
Cash flows from investing activities (16,059 ) (14,200 )
Cash flows from financing activities (98,591 ) (48,554 )
Effect of exchange rate changes on cash (16,315 ) 10,406
   
Increase in cash and cash equivalents 58,161 34,871
Cash and cash equivalents, beginning of the year   481,738     326,000  
Cash and cash equivalents, end of the period $ 539,899   $ 360,871  
 
OTHER FINANCIAL DATA
 
(Increase) decrease in receivables, net $ (220,656 ) $ 71,027
Change in contracts in progress, net (15,665 ) (85,853 )
Increase (decrease) in accounts payable   148,185     (115,443 )
Change in contract capital $ (88,136 ) $ (130,269 )
 
Depreciation and amortization $ 52,037 $ 55,734
Capital expenditures $ 23,822 $ 16,386
 
Backlog * $ 9,272,683 $ 6,880,083
 
 

*

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
Media: Jan Sieving, +1 832 513 1111
or
Investors: Christi Thoms, +1 832 513 1200