UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant to
Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): July 24, 2012
CHICAGO
BRIDGE & IRON COMPANY N.V.
(Exact
name of registrant as specified in its charter)
The
Netherlands
(State or other
jurisdiction of incorporation)
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1-12815 |
N.A. |
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(Commission File Number) |
(IRS Employer Identification No.) |
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Oostduinlaan 75 |
N.A. |
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(Address of principal executive offices) |
(Zip Code) |
Registrant’s
telephone number, including area code: 31-70-373-2010
N.A.
(Former
name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2 below):
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
(a) On July 24, 2012, Chicago Bridge & Iron Company N.V. issued a press release announcing financial results for the quarter ended June 30, 2012. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
99.1 – Press Release dated July 24, 2012
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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CHICAGO BRIDGE & IRON COMPANY N.V. |
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By: |
Chicago Bridge & Iron Company B.V. |
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Its: |
Managing Director |
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| Date: | July 24, 2012 |
By: |
/s/ Ronald A. Ballschmiede |
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Ronald A. Ballschmiede |
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Managing Director |
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(Principal Financial Officer) |
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EXHIBIT INDEX
| Exhibit Number | Exhibit Description |
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99.1 |
Press release dated July 24, 2012 |
Exhibit 99.1
CB&I Reports Second Quarter 2012 Results
Earnings per Share up 19% over Q2 2011
THE WOODLANDS, Texas--(BUSINESS WIRE)--July 24, 2012--CB&I (NYSE: CBI) today reported net income of $72.3 million, or $0.74 per diluted share, for the second quarter of 2012, compared with $61.9 million, or $0.62 per diluted share, in the second quarter of 2011. Revenue for the quarter was $1.3 billion versus $1.1 billion in the comparable period. New awards totaled $1.8 billion compared with $1.2 billion, increasing the company’s backlog to over $10.0 billion.
During the quarter, the company returned $23.4 million to shareholders, which included $18.6 million of stock repurchases and $4.8 million through quarterly cash dividends. Cash and cash equivalents as of June 30 were $552.8 million.
“I am extremely pleased to report that each of our business sectors, Lummus Technology, Project Engineering and Construction and Steel Plate Structures had a very strong quarter, leading to record levels of backlog and net income for our company,” said Philip K. Asherman, President and CEO. “Our market momentum, operational execution and financial performance have been trending as expected, providing us with greater visibility and confidence into the full year. As a result we are adjusting our 2012 full-year guidance.”
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CB&I’s updated guidance for 2012 is: |
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| New Awards: | $5.5 - $7.0 billion | |||
| Revenue: | $5.4 - $5.6 billion | |||
| Earnings per Share: | $2.85 - $3.05 | |||
Earnings Conference Call
CB&I will host a webcast on July 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 is available at www.CBI.com Investor Relations.
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, 2011, 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.
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CHICAGO BRIDGE & IRON COMPANY N.V. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) |
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| Three Months | Six Months | ||||||||||||||||
| Ended June 30, | Ended June 30, | ||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||||||
| Revenue | $ | 1,299,529 | $ | 1,085,705 | $ | 2,500,796 | $ | 2,039,976 | |||||||||
| Cost of revenue | 1,140,644 | 945,612 | 2,188,647 | 1,763,167 | |||||||||||||
| Gross profit | 158,885 | 140,093 | 312,149 | 276,809 | |||||||||||||
| % of Revenue | 12.2 | % | 12.9 | % | 12.5 | % | 13.6 | % | |||||||||
| Selling and administrative expense | 52,392 | 48,475 | 115,624 | 106,140 | |||||||||||||
| % of Revenue | 4.0 | % | 4.5 | % | 4.6 | % | 5.2 | % | |||||||||
| Intangibles amortization | 6,037 | 6,372 | 12,129 | 12,664 | |||||||||||||
| Other operating expense (income), net | 1,327 | 54 | 1,262 | (844 | ) | ||||||||||||
| Equity earnings | (4,010 | ) | (3,204 | ) | (5,810 | ) | (4,550 | ) | |||||||||
| Income from operations | 103,139 | 88,396 | 188,944 | 163,399 | |||||||||||||
| % of Revenue | 7.9 | % | 8.1 | % | 7.6 | % | 8.0 | % | |||||||||
| Interest expense | (2,831 | ) | (3,538 | ) | (4,943 | ) | (6,595 | ) | |||||||||
| Interest income | 2,288 | 1,743 | 4,475 | 3,115 | |||||||||||||
| Income before taxes | 102,596 | 86,601 | 188,476 | 159,919 | |||||||||||||
| Income tax expense | (29,752 | ) | (24,898 | ) | (54,658 | ) | (46,652 | ) | |||||||||
| Net income | 72,844 | 61,703 | 133,818 | 113,267 | |||||||||||||
| Less: Net (income) loss attributable to noncontrolling interests | (524 | ) | 191 | (2,011 | ) | (867 | ) | ||||||||||
| Net income attributable to CB&I | $ | 72,320 | $ | 61,894 | $ | 131,807 | $ | 112,400 | |||||||||
| Net income attributable to CB&I per share: | |||||||||||||||||
| Basic | $ | 0.75 | $ | 0.63 | $ | 1.36 | $ | 1.14 | |||||||||
| Diluted | $ | 0.74 | $ | 0.62 | $ | 1.34 | $ | 1.12 | |||||||||
| Weighted average shares outstanding: | |||||||||||||||||
| Basic | 96,401 | 98,449 | 96,829 | 98,494 | |||||||||||||
| Diluted | 97,632 | 100,163 | 98,442 | 100,503 | |||||||||||||
| Cash dividends on shares: | |||||||||||||||||
| Amount | $ | 4,832 | $ | 4,930 | $ | 9,717 | $ | 9,920 | |||||||||
| Per Share | $ | 0.05 | $ | 0.05 | $ | 0.10 | $ | 0.10 | |||||||||
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CHICAGO BRIDGE & IRON COMPANY N.V. SEGMENT INFORMATION (in thousands) |
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| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||
| % of | % of | % of | % of | |||||||||||||||||||||||
| NEW AWARDS* | Total | Total | Total | Total | ||||||||||||||||||||||
| Steel Plate Structures | $ | 725,725 | 40 | % | $ | 370,541 | 31 | % | $ | 1,136,648 | 32 | % | $ | 662,085 | 30 | % | ||||||||||
| Project Engineering and Construction | 792,543 | 43 | % | 767,388 | 63 | % | 1,947,938 | 55 | % | 1,354,091 | 61 | % | ||||||||||||||
| Lummus Technology | 311,493 | 17 | % | 77,660 | 6 | % | 440,536 | 13 | % | 210,976 | 9 | % | ||||||||||||||
| Total | $ | 1,829,761 | $ | 1,215,589 | $ | 3,525,122 | $ | 2,227,152 | ||||||||||||||||||
| % of | % of | % of | % of | |||||||||||||||||||||||
| REVENUE | Total | Total | Total | Total | ||||||||||||||||||||||
| Steel Plate Structures | $ | 499,530 | 38 | % | $ | 456,357 | 42 | % | $ | 919,461 | 37 | % | $ | 825,065 | 41 | % | ||||||||||
| Project Engineering and Construction | 711,349 | 55 | % | 541,647 | 50 | % | 1,392,632 | 56 | % | 1,006,217 | 49 | % | ||||||||||||||
| Lummus Technology | 88,650 | 7 | % | 87,701 | 8 | % | 188,703 | 7 | % | 208,694 | 10 | % | ||||||||||||||
| Total | $ | 1,299,529 | $ | 1,085,705 | $ | 2,500,796 | $ | 2,039,976 | ||||||||||||||||||
| % of | % of | % of | % of | |||||||||||||||||||||||
| INCOME FROM OPERATIONS | Revenue | Revenue | Revenue | Revenue | ||||||||||||||||||||||
| Steel Plate Structures | $ | 48,421 | 9.7 | % | $ | 47,489 | 10.4 | % | $ | 86,717 | 9.4 | % | $ | 84,413 | 10.2 | % | ||||||||||
| Project Engineering and Construction | 32,620 | 4.6 | % | 24,476 | 4.5 | % | 57,530 | 4.1 | % | 39,491 | 3.9 | % | ||||||||||||||
| Lummus Technology | 22,098 | 24.9 | % | 16,431 | 18.7 | % | 44,697 | 23.7 | % | 39,495 | 18.9 | % | ||||||||||||||
| Total | $ | 103,139 | 7.9 | % | $ | 88,396 | 8.1 | % | $ | 188,944 | 7.6 | % | $ | 163,399 | 8.0 | % | ||||||||||
| * New awards represents the value of new project commitments received by the Company during a given period. | ||||||||||||||||||||||||||
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CHICAGO BRIDGE & IRON COMPANY N.V. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) |
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| June 30, | December 31, | ||||||
| 2012 | 2011 | ||||||
| ASSETS | |||||||
| Current assets | $ | 1,649,855 | $ | 1,661,321 | |||
| Equity investments | 85,515 | 95,687 | |||||
| Property and equipment, net | 274,120 | 262,003 | |||||
| Goodwill and other intangibles, net | 1,093,572 | 1,114,512 | |||||
| Other non-current assets | 145,285 | 158,460 | |||||
| Total assets | $ | 3,248,347 | $ | 3,291,983 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| Current maturity of long-term debt | $ | 40,000 | $ | 40,000 | |||
| Other current liabilities | 1,630,128 | 1,703,424 | |||||
| Other non-current liabilities | 333,828 | 352,129 | |||||
| Shareholders' equity | 1,244,391 | 1,196,430 | |||||
| Total liabilities and shareholders' equity | $ | 3,248,347 | $ | 3,291,983 | |||
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CHICAGO BRIDGE & IRON COMPANY N.V. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND OTHER FINANCIAL DATA (in thousands) |
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| Six Months | |||||||||
| Ended June 30, | |||||||||
| 2012 | 2011 | ||||||||
| CASH FLOWS | |||||||||
| Cash flows from operating activities | $ | 28,794 | $ | (34,443 | ) | ||||
| Cash flows from investing activities | (33,050 | ) | (13,262 | ) | |||||
| Cash flows from financing activities | (111,813 | ) | (83,737 | ) | |||||
| Effect of exchange rate changes on cash and cash equivalents | (2,914 | ) | 25,582 | ||||||
| Decrease in cash and cash equivalents | (118,983 | ) | (105,860 | ) | |||||
| Cash and cash equivalents, beginning of the year | 671,811 | 481,738 | |||||||
| Cash and cash equivalents, end of the period | $ | 552,828 | $ | 375,878 | |||||
| OTHER FINANCIAL DATA | |||||||||
| Increase in receivables, net | $ | (127,796 | ) | $ | (216,547 | ) | |||
| Change in contracts in progress, net |
(66,746 |
) | (19,596 | ) | |||||
| Increase in accounts payable | 33,159 | 87,101 | |||||||
| Change in contract capital | $ |
(161,383 |
) | $ | (149,042 | ) | |||
| Depreciation and amortization | $ | 33,403 | $ | 34,545 | |||||
| Capital expenditures | $ | 34,187 | $ | 15,763 | |||||
| Backlog * | $ | 10,014,147 | $ | 7,257,390 | |||||
| * 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: www.CBI.com
Investors:
Christi Thoms, +1 832 513 1200