CB&I Reports Strong 2013 Fourth Quarter and Full-Year Results - WDRB 41 Louisville News

CB&I Reports Strong 2013 Fourth Quarter and Full-Year Results

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SOURCE CB&I

THE WOODLANDS, Texas, Feb. 25, 2014 /PRNewswire/ -- CB&I (NYSE: CBI) today announced financial results for the fourth quarter and full-year 2013. Net income for 2013 was $454.1 million, or $4.23 per diluted share, including acquisition and integration related costs of $73.3 million, or $0.68 per diluted share. CB&I's consolidated 2013 revenue was $11.1 billion, up from $5.5 billion in the prior year. New awards for 2013 totaled $12.3 billion, resulting in a backlog of $27.8 billion as of December 31, 2013.

In the fourth quarter, CB&I's net income was $196.8 million, or $1.80 per diluted share, including acquisition and integration related costs of $12.1 million, or $0.11 per diluted share. Revenue for the fourth quarter was $3.0 billion with new awards of $5.3 billion.

"With record high new awards and revenue, 2013 was without a doubt the strongest year in the company's 125 year history. Our 2013 net income, excluding acquisition and integration related costs, exceeded half a billion dollars, resulting in adjusted earnings per share of $4.91," said Philip K. Asherman, President and Chief Executive Officer. "In addition to our financial results, I am very proud to report that we executed 145 million work-hours in 2013, with one of the best safety records in our industry. With this relentless focus and commitment to safety, our unique business model that delivers a more complete supply chain solution for our customers, nearly $30 billion in backlog and the assurance of long-term global energy demand, we expect CB&I to continue to deliver outstanding value to our shareholders."

CB&I's $12.3 billion in 2013 new awards demonstrates the company's ability to capitalize on its breadth of offerings across its growing end markets. Noteworthy awards and developments included a LNG contract for the first two trains at Freeport LNG, an award for an ethylene plant for Occidental in Texas, storage awards for LNG tanks in Asia and Australia, a propane terminal in Pennsylvania, a strategic partnership with China Power Investment Corporation (CPI) to jointly build nuclear power generation in China, a pipe fabrication award for a natural gas project in Australia, contracts for environmental remediation and Air Quality Control programs across the U.S., a plant services contract for Peru LNG, a paraxylene technology contract with GS Caltex, as well as numerous additional strategic petrochemical and refining technology licensing awards.

Earnings Conference Call

CB&I will host a webcast on February 25 at 4:00 p.m. CST (5:00 p.m. EST) 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. Drawing upon more than a century of experience and the expertise of approximately 55,000 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

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, 2013, 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


Twelve Months





Ended December 31,


Ended December 31,





2013


2012


2013


2012












Revenue


$  3,000,257


$  1,537,468


$  11,094,527


$  5,485,206

Cost of revenue


2,661,051


1,339,800


9,895,517


4,786,499



Gross profit


339,206


197,668


1,199,010


698,707



% of Revenue


11.3%


12.9%


10.8%


12.7%












Selling and administrative expense


98,921


59,464


379,485


227,948



% of Revenue


3.3%


3.9%


3.4%


4.2%












Intangibles amortization


18,429


4,488


61,111


22,613

Equity earnings


(7,337)


(11,416)


(23,474)


(17,931)

Other operating (income) expense, net


(493)


618


1,643


(566)

Acquisition and integration related costs


19,260


6,000


95,737


11,000



Income from operations


210,426


138,514


684,508


455,643



% of Revenue


7.0%


9.0%


6.2%


8.3%












Interest expense


(21,506)


(7,837)


(87,578)


(19,606)

Interest income 


1,721


1,592


6,930


8,029



Income before taxes


190,641


132,269


603,860


444,066












Income tax benefit (expense)  (1)


26,414


(35,277)


(91,270)


(127,003)



Net income


217,055


96,992


512,590


317,063












Less: Net income attributable to noncontrolling interests


(20,274)


(7,375)


(58,470)


(15,408)



Net income attributable to CB&I


$    196,781


$      89,617


$      454,120


$    301,655












Net income attributable to CB&I per share:











Basic


$          1.83


$          0.93


$            4.29


$          3.12



Diluted


$          1.80


$          0.91


$            4.23


$          3.07












Weighted average shares outstanding:











Basic


107,527


96,479


105,935


96,633



Diluted


109,168


98,230


107,452


98,231












Cash dividends on shares:











Amount


$        5,375


$        4,841


$        21,453


$      19,394



Per Share


$          0.05


$          0.05


$            0.20


$          0.20













(1)

The three and twelve month periods ended December 31, 2013 include a tax benefit of $77,800 ($0.72 per share) related to the recognition of the balance of our U.K. net operating loss tax asset and certain U.S. foreign tax credits.














Non-GAAP Supplemental Information

(amounts adjusted to exclude Shaw acquisition and integration related costs) (2)














Adjusted income from operations


$    229,686


$    144,514


$      780,245


$    466,643



Adjusted % of Revenue


7.7%


9.4%


7.0%


8.5%














Adjusted net income attributable to CB&I


$    208,915


$      93,517


$      527,436


$    308,798



Adjusted net income attributable to CB&I per share (diluted)


$           1.91


$          0.95


$            4.91


$          3.14













(2)

The exclusion of Shaw acquisition and 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 December 31,


Twelve Months Ended December 31,


2013


2012


2013


2012















 % of 



 % of 



 % of 



 % of 

NEW AWARDS (1)


 Total 



 Total 



 Total 



 Total 

    Engineering, Construction and Maintenance 

$   4,035,925

76%


$  2,258,963

79%


$  7,929,048

65%


$  5,115,271

70%

    Fabrication Services 

799,681

15%


447,522

16%


2,681,886

22%


1,463,978

20%

    Technology 

233,784

5%


144,251

5%


633,690

5%


726,721

10%

    Government Solutions 

225,658

4%


-

0%


1,008,346

8%


-

0%

   Total  

$   5,295,048



$  2,850,736



$ 12,252,970



$  7,305,970




























 % of 



 % of 



 % of 



 % of 

REVENUE


 Total 



 Total 



 Total 



 Total 

    Engineering, Construction and Maintenance 

$   1,882,794

63%


$     964,695

63%


$  6,724,567

61%


$  3,305,377

60%

    Fabrication Services 

698,052

23%


424,678

27%


2,575,597

23%


1,692,533

31%

    Technology 

130,472

4%


148,095

10%


599,195

5%


487,296

9%

    Government Solutions 

288,939

10%


-

0%


1,195,168

11%


-

0%

   Total

$   3,000,257



$  1,537,468



$ 11,094,527



$  5,485,206




























 % of 



 % of 



 % of 



 % of 

INCOME FROM OPERATIONS


 Revenue 



 Revenue 



 Revenue 



 Revenue 

    Engineering, Construction and Maintenance 

$     109,575

5.8%


$       59,612

6.2%


$     328,919

4.9%


$     168,467

5.1%

    Fabrication Services 

75,647

10.8%


43,398

10.2%


259,750

10.1%


170,780

10.1%

    Technology 

40,125

30.8%


41,504

28.0%


156,835

26.2%


127,396

26.1%

    Government Solutions 

4,339

1.5%


-

0.0%


34,741

2.9%


-

0.0%

    Total operating groups 

$     229,686

7.7%


$     144,514

9.4%


$     780,245

7.0%


$     466,643

8.5%

         Acquisition and integration related costs 

(19,260)



(6,000)



(95,737)



(11,000)


   Total 

$     210,426

7.0%


$     138,514

9.0%


$     684,508

6.2%


$     455,643

8.3%














(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)







December 31,


December 31,


2013


2012

ASSETS








Current assets

$               3,389,565


$               2,721,555

Equity investments

101,754


97,267

Property and equipment, net

788,797


285,871

Goodwill and other intangibles, net

4,854,191


1,093,019

Other non-current assets

264,296


131,963






Total assets

$               9,398,603


$               4,329,675









LIABILITIES AND SHAREHOLDERS' EQUITY








Current maturities of long-term debt and revolver borrowings

$                  215,000


$                          -

Other current liabilities

4,582,624


1,772,522

Long-term debt 

1,625,000


800,000

Other non-current liabilities

459,531


360,843





Shareholders' equity

2,516,448


1,396,310






Total liabilities and shareholders' equity

$               9,398,603


$               4,329,675









Chicago Bridge & Iron Company N.V.

Condensed Consolidated Statements of Cash Flows and Other Financial Data

(in thousands)



Twelve Months


Ended December 31,


2013


2012

CASH FLOWS








Cash flows from operating activities

$                 (112,836)


$                  202,504

Cash flows from investing activities

(1,825,309)


(66,785)

Cash flows from financing activities

1,732,812


(174,111)

Effect of exchange rate changes on cash and cash equivalents

(17,560)


9,976





Decrease in cash and cash equivalents

(222,893)


(28,416)

Cash and cash equivalents, beginning of the year

643,395


671,811

Cash and cash equivalents, end of the year

$                  420,502


$                  643,395





OTHER FINANCIAL DATA








Increase in receivables, net

$                 (158,851)


$                 (258,132)

Change in contracts in progress, net

(614,628)


(222,133)

Decrease in inventory

1,504


2,339

(Decrease) increase in accounts payable

(43,491)


135,755


Change in contract capital

$                 (815,466)


$                 (342,171)





Depreciation and amortization 

$                  180,026


$                    66,421

Capital expenditures

$                    90,492


$                    72,279






December 31, 2013


December 31, 2012

Backlog (1)

$             27,794,212


$             10,928,818









(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


Twelve Months




Ended December 31,


Ended December 31,




2013


2012


2013


2012











Adjusted income from operations




















Income from operations


$210,426


$138,514


$684,508


$455,643


Acquisition and integration related costs


19,260


6,000


95,737


11,000


Adjusted income from operations


$229,686


$144,514


$780,245


$466,643


Adjusted % of Revenue


7.7%


9.4%


7.0%


8.5%





















Adjusted net income attributable to CB&I




















Net income attributable to CB&I


$196,781


$  89,617


$454,120


$301,655


Acquisition and integration related costs, net of tax (1)


12,134


3,900


73,316


7,143


Adjusted net income attributable to CB&I


$208,915


$  93,517


$527,436


$308,798











Adjusted net income attributable to CB&I per share




















Net income attributable to CB&I


$     1.80


$     0.91


$     4.23


$     3.07


Acquisition and integration related costs, net of tax (1)


0.11


0.04


0.68


0.07


Adjusted net income attributable to CB&I


$     1.91


$     0.95


$     4.91


$     3.14













(1)

The three and twelve month periods ended December 31, 2013 include $19,260 and $95,737 of acquisition and integration related costs, respectively, and the twelve month period ended December 31, 2013 includes $10,517 of acquisition related pre-closing financing costs and one-time financial commitments (both included in interest expense and recorded in Q1). These costs total $19,260 and $106,254, less the tax impact of $7,126 and $32,938, respectively. The per share amounts for the three and twelve month periods are based upon diluted weighted average shares of 109,168 and 107,452, respectively.

 

The three and twelve month periods ended December 31, 2012 include $6,000 and $11,000 of acquisition and integration related costs, respectively, less the tax impacts of $2,100 and $3,857, respectively. The per share amounts for the three and twelve month periods are based upon diluted weighted average shares of 98,230 and 98,231, respectively.  

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