THE WOODLANDS, Texas,
July 23, 2015 /PRNewswire/ --
CB&I (NYSE: CBI) today reported the second quarter resulted in
strong earnings, improved cash flow and consistent operating
performance. Net income for the second quarter was $169.5 million, or $1.55 per diluted share, an increase of 14
percent from adjusted net income for the comparable period in 2014.
Revenues were $3.2 billion, including
a $240 million negative impact
attributable to the translation effect of the strong dollar. Net
cash provided by operating activities during the second quarter was
$95 million. New awards for the
second quarter totaled $2.8 billion,
and new awards for the first six months totaled $5.9 billion. Backlog remained fairly constant at
nearly $29.4 billion, including an
adverse foreign exchange impact of $270
million year to date.
During the quarter, CB&I and its joint venture partners
Chiyoda Corporation and Saipem were selected by Anadarko Petroleum
Corporation to design and construct process and ancillary
infrastructure associated with its LNG development program in
Mozambique. CB&I expects to
book its share of the initial phase of the project in the fourth
quarter.
"We continue to deliver solid performance despite a volatile
commodity market and geopolitical issues that create instability in
many of the traditional international energy markets," said
Philip K. Asherman, CB&I's
President and Chief Executive Officer. "The U.S. remains a great
opportunity for us particularly in LNG, petrochemicals and fossil
power generation markets. East
Africa will be a source of solid backlog for many years as
Anadarko and other owners develop these tremendous assets.
Additionally, we continue to produce significant profitability from
not only our insourcing capabilities but also the diverse portfolio
of new opportunities in our facilities maintenance, engineered
products, steel plate storage, pipe fabrication, technology
licensing and catalyst businesses."
Other significant awards for the second quarter include a
combined-cycle gas turbine power project in the U.S., multiple
maintenance services awards in North and South America, engineered products in
Russia and Mexico, scope increases for our large nuclear
projects in the U.S., and a variety of technology and fabrication
awards globally.
Earnings Conference Call
CB&I will host a webcast on July
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. 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
|
|
Six
Months
|
|
|
Ended June
30,
|
|
Ended June
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
3,207,113
|
|
|
$
|
3,294,379
|
|
|
$
|
6,332,858
|
|
|
$
|
6,222,511
|
|
Cost of
revenue
|
|
2,823,990
|
|
|
2,913,204
|
|
|
5,579,564
|
|
|
5,539,934
|
|
Gross
profit
|
|
383,123
|
|
|
381,175
|
|
|
753,294
|
|
|
682,577
|
|
% of
Revenue
|
|
11.9
|
%
|
|
11.6
|
%
|
|
11.9
|
%
|
|
11.0
|
%
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expense
|
|
85,153
|
|
|
98,031
|
|
|
194,254
|
|
|
217,198
|
|
% of
Revenue
|
|
2.7
|
%
|
|
3.0
|
%
|
|
3.1
|
%
|
|
3.5
|
%
|
|
|
|
|
|
|
|
|
|
Intangibles
amortization
|
|
14,942
|
|
|
16,822
|
|
|
30,594
|
|
|
33,056
|
|
Equity
earnings
|
|
(394)
|
|
|
(3,165)
|
|
|
(4,596)
|
|
|
(7,330)
|
|
Other operating
(income) expense, net
|
|
(685)
|
|
|
(261)
|
|
|
2,137
|
|
|
(645)
|
|
Integration related
costs
|
|
—
|
|
|
9,537
|
|
|
—
|
|
|
17,604
|
|
Income from
operations
|
|
284,107
|
|
|
260,211
|
|
|
530,905
|
|
|
422,694
|
|
% of
Revenue
|
|
8.9
|
%
|
|
7.9
|
%
|
|
8.4
|
%
|
|
6.8
|
%
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(21,114)
|
|
|
(21,675)
|
|
|
(43,400)
|
|
|
(40,562)
|
|
Interest
income
|
|
2,184
|
|
|
1,477
|
|
|
4,232
|
|
|
3,537
|
|
Income before
taxes
|
|
265,177
|
|
|
240,013
|
|
|
491,737
|
|
|
385,669
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(79,289)
|
|
|
(72,947)
|
|
|
(149,100)
|
|
|
(115,857)
|
|
Net income
|
|
185,888
|
|
|
167,066
|
|
|
342,637
|
|
|
269,812
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to noncontrolling interests
|
|
(16,373)
|
|
|
(24,662)
|
|
|
(40,894)
|
|
|
(38,457)
|
|
Net income
attributable to CB&I
|
|
$
|
169,515
|
|
|
$
|
142,404
|
|
|
$
|
301,743
|
|
|
$
|
231,355
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to CB&I per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.56
|
|
|
$
|
1.32
|
|
|
$
|
2.78
|
|
|
$
|
2.14
|
|
Diluted
|
|
$
|
1.55
|
|
|
$
|
1.31
|
|
|
$
|
2.76
|
|
|
$
|
2.12
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
108,700
|
|
|
108,096
|
|
|
108,450
|
|
|
107,888
|
|
Diluted
|
|
109,533
|
|
|
109,110
|
|
|
109,386
|
|
|
109,058
|
|
|
|
|
|
|
|
|
|
|
Cash dividends on
shares:
|
|
|
|
|
|
|
|
|
Amount
|
|
$
|
7,610
|
|
|
$
|
7,567
|
|
|
$
|
15,207
|
|
|
$
|
15,126
|
|
Per share
|
|
$
|
0.07
|
|
|
$
|
0.07
|
|
|
$
|
0.14
|
|
|
$
|
0.14
|
|
|
|
|
|
|
Non-GAAP
Supplemental Information
|
(amounts adjusted
to exclude integration related costs) (1)
|
|
|
|
|
|
|
|
|
|
Adjusted income from
operations
|
|
|
|
$
|
269,748
|
|
|
|
|
$
|
440,298
|
|
Adjusted % of
Revenue
|
|
|
|
8.2
|
%
|
|
|
|
7.1
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to CB&I
|
|
|
|
$
|
148,317
|
|
|
|
|
$
|
242,754
|
|
Adjusted net income
attributable to CB&I per share (diluted)
|
|
|
|
$
|
1.36
|
|
|
|
|
$
|
2.23
|
|
|
|
|
|
|
|
|
(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
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
of
|
|
|
|
%
of
|
|
|
|
%
of
|
|
|
|
%
of
|
NEW AWARDS
(1), (2)
|
|
|
|
Total
|
|
|
|
Total
|
|
|
|
Total
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineering &
Construction
|
|
$
|
1,305,951
|
|
|
46%
|
|
$
|
2,056,812
|
|
|
49%
|
|
$
|
2,515,358
|
|
|
43%
|
|
$
|
6,551,649
|
|
|
66%
|
Fabrication
Services
|
|
844,715
|
|
|
30%
|
|
564,388
|
|
|
13%
|
|
1,772,089
|
|
|
30%
|
|
1,081,117
|
|
|
11%
|
Technology
|
|
81,087
|
|
|
3%
|
|
152,397
|
|
|
4%
|
|
158,109
|
|
|
3%
|
|
229,843
|
|
|
2%
|
Capital
Services
|
|
612,763
|
|
|
21%
|
|
1,429,480
|
|
|
34%
|
|
1,430,143
|
|
|
24%
|
|
2,137,957
|
|
|
21%
|
Total
|
|
$
|
2,844,516
|
|
|
|
|
$
|
4,203,077
|
|
|
|
|
$
|
5,875,699
|
|
|
|
|
$
|
10,000,566
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
of
|
|
|
|
%
of
|
|
|
|
%
of
|
|
|
|
%
of
|
REVENUE
(2)
|
|
|
|
Total
|
|
|
|
Total
|
|
|
|
Total
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineering &
Construction
|
|
$
|
1,916,122
|
|
|
60%
|
|
$
|
1,939,898
|
|
|
59%
|
|
$
|
3,734,708
|
|
|
59%
|
|
$
|
3,626,079
|
|
|
58%
|
Fabrication
Services
|
|
611,330
|
|
|
19%
|
|
694,295
|
|
|
21%
|
|
1,249,139
|
|
|
20%
|
|
1,366,206
|
|
|
22%
|
Technology
|
|
92,975
|
|
|
3%
|
|
102,387
|
|
|
3%
|
|
192,336
|
|
|
3%
|
|
204,960
|
|
|
3%
|
Capital
Services
|
|
586,686
|
|
|
18%
|
|
557,799
|
|
|
17%
|
|
1,156,675
|
|
|
18%
|
|
1,025,266
|
|
|
17%
|
Total
|
|
$
|
3,207,113
|
|
|
|
|
$
|
3,294,379
|
|
|
|
|
$
|
6,332,858
|
|
|
|
|
$
|
6,222,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS (2)
|
|
|
|
%
of
|
|
|
|
%
of
|
|
|
|
%
of
|
|
|
|
%
of
|
|
|
|
Revenue
|
|
|
|
Revenue
|
|
|
|
Revenue
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineering &
Construction
|
|
$
|
176,467
|
|
|
9.2%
|
|
$
|
132,648
|
|
|
6.8%
|
|
$
|
312,885
|
|
|
8.4%
|
|
$
|
217,284
|
|
|
6.0%
|
Fabrication
Services
|
|
55,937
|
|
|
9.2%
|
|
78,267
|
|
|
11.3%
|
|
108,336
|
|
|
8.7%
|
|
125,182
|
|
|
9.2%
|
Technology
|
|
36,741
|
|
|
39.5%
|
|
37,242
|
|
|
36.4%
|
|
84,765
|
|
|
44.1%
|
|
71,911
|
|
|
35.1%
|
Capital
Services
|
|
14,962
|
|
|
2.6%
|
|
21,591
|
|
|
3.9%
|
|
24,919
|
|
|
2.2%
|
|
25,921
|
|
|
2.5%
|
Total operating
groups
|
|
$
|
284,107
|
|
|
8.9%
|
|
$
|
269,748
|
|
|
8.2%
|
|
$
|
530,905
|
|
|
8.4%
|
|
$
|
440,298
|
|
|
7.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integration
related costs
|
|
—
|
|
|
|
|
(9,537)
|
|
|
|
|
—
|
|
|
|
|
(17,604)
|
|
|
|
Total
|
|
$
|
284,107
|
|
|
8.9%
|
|
$
|
260,211
|
|
|
7.9%
|
|
$
|
530,905
|
|
|
8.4%
|
|
$
|
422,694
|
|
|
6.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
segment results for the three and six months ended June 30, 2014
were reclassified to reflect the reportable segment
realignment.
|
Chicago Bridge
& Iron Company N.V.
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2015
|
|
2014
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
$
|
4,477,485
|
|
|
$
|
3,530,459
|
|
Equity
investments
|
|
132,480
|
|
|
107,984
|
|
Property and
equipment, net
|
|
741,469
|
|
|
771,651
|
|
Goodwill and other
intangibles, net
|
|
4,694,842
|
|
|
4,751,685
|
|
Other non-current
assets
|
|
240,586
|
|
|
219,252
|
|
Total
assets
|
|
$
|
10,286,862
|
|
|
$
|
9,381,031
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current maturities of
long-term debt and other borrowings
|
|
$
|
727,836
|
|
|
$
|
270,738
|
|
Other current
liabilities
|
|
4,247,719
|
|
|
4,051,492
|
|
Long-term
debt
|
|
1,486,085
|
|
|
1,564,158
|
|
Other non-current
liabilities
|
|
641,832
|
|
|
618,340
|
|
|
|
|
|
|
Shareholders'
equity
|
|
3,183,390
|
|
|
2,876,303
|
|
Total liabilities and
shareholders' equity
|
|
$
|
10,286,862
|
|
|
$
|
9,381,031
|
|
|
Chicago Bridge
& Iron Company N.V.
|
Condensed
Consolidated Statements of Cash Flows and Other Financial
Data
|
(in
thousands)
|
|
|
|
|
|
Six
Months
|
|
|
Ended June
30,
|
|
|
2015
|
|
2014
|
CASH
FLOWS
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
$
|
(194,704)
|
|
|
$
|
(374,363)
|
|
Cash flows from
investing activities
|
|
(189,644)
|
|
|
(49,148)
|
|
Cash flows from
financing activities
|
|
422,223
|
|
|
357,283
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(34,110)
|
|
|
20,039
|
|
Increase (decrease)
in cash and cash equivalents
|
|
3,765
|
|
|
(46,189)
|
|
Cash and cash
equivalents, beginning of the year
|
|
351,323
|
|
|
420,502
|
|
Cash and cash
equivalents, end of the period
|
|
$
|
355,088
|
|
|
$
|
374,313
|
|
|
|
|
|
|
OTHER FINANCIAL
DATA
|
|
|
|
|
|
|
|
|
|
Increase in
receivables, net
|
|
$
|
(20,291)
|
|
|
$
|
(121,013)
|
|
Change in contracts
in progress, net
|
|
(626,450)
|
|
|
(797,126)
|
|
(Increase) decrease
in inventory
|
|
(6,089)
|
|
|
10,897
|
|
(Decrease) increase
in accounts payable
|
|
(77,798)
|
|
|
95,955
|
|
Change in contract
capital
|
|
$
|
(730,628)
|
|
|
$
|
(811,287)
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
$
|
86,699
|
|
|
$
|
89,870
|
|
Capital
expenditures
|
|
$
|
63,717
|
|
|
$
|
58,179
|
|
|
|
|
|
|
|
|
June 30,
2015
|
|
December 31,
2014
|
Backlog
(1)
|
|
$
|
29,432,933
|
|
|
$
|
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
|
|
Six
Months
|
|
|
Ended June
30,
|
|
Ended June
30,
|
|
|
2014
|
|
2014
|
|
|
|
|
|
Adjusted income
from operations
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
$
|
260,211
|
|
|
$
|
422,694
|
|
Integration related
costs
|
|
|
9,537
|
|
|
|
17,604
|
|
Adjusted income from
operations
|
|
$
|
269,748
|
|
|
$
|
440,298
|
|
Adjusted % of
Revenue
|
|
8.2
|
%
|
|
7.1
|
%
|
|
|
|
|
|
Adjusted net
income attributable to CB&I
|
|
|
|
|
|
|
|
|
|
Net income
attributable to CB&I
|
|
$
|
142,404
|
|
|
$
|
231,355
|
|
Integration related
costs, net of tax (1)
|
|
5,913
|
|
|
11,399
|
|
Adjusted net income
attributable to CB&I
|
|
$
|
148,317
|
|
|
$
|
242,754
|
|
|
|
|
|
|
Adjusted net
income attributable to CB&I per share
|
|
|
|
|
|
|
|
|
|
Net income
attributable to CB&I
|
|
$
|
1.31
|
|
|
$
|
2.12
|
|
Integration related
costs, net of tax (1)
|
|
0.05
|
|
|
0.11
|
|
Adjusted net income
attributable to CB&I
|
|
$
|
1.36
|
|
|
$
|
2.23
|
|
|
|
|
(1) The
three and six month periods ended June 30, 2014 include $9,537 and
$17,604, respectively, of integration related costs, less the tax
impact of $3,624 and $6,205, respectively. The per share amount for
the three and six month periods are based upon diluted weighted
average shares of 109,110 and 109,058, respectively.
|
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SOURCE CB&I