CB&I Reports 2011 Fourth Quarter and Full-Year Results

2011 Revenue and Net Income up 25%, New Awards of $6.8 billion

THE WOODLANDS, Texas--()--CB&I (NYSE: CBI) today reported net income for the fourth quarter of $70.5 million, or $0.70 per diluted share, versus $63.2 million or $0.63 per diluted share in 2010. Revenue for the quarter was $1.3 billion, with new awards of $772.4 million.

For the full-year, net income was $255.0 million, or $2.55 per diluted share. CB&I’s consolidated 2011 revenue was $4.6 billion, up 25% over 2010. Cash and cash equivalents as of December 31, 2011 were $671.8 million, versus $481.7 million as of December 31, 2010.

“I’m extremely proud of our employees for delivering another year of outstanding performance,” said Philip K. Asherman, President and CEO. “Looking to the future, we expect to continue to execute our healthy backlog, leverage our unique business model to capture growth opportunities, and help our clients meet the growing global demand for energy infrastructure, which gives us strong confidence in the future of CB&I.”

New Awards for 2011 totaled $6.8 billion, reflecting the company’s ability to capitalize on its global end markets across each of its business sectors. Noteworthy 2011 awards included a $2.3 billion contract in Australia for the Gorgon project, an Oil Sands contract for Kearl in Canada, a Gas Processing award in the U.S. for Dominion, an LNG storage project in the Asia Pacific region, an Offshore award for Nexen in the North Sea, a Refinery heater award in Russia, as well as various strategic Petrochemical and Refining technology licensing awards.

CB&I declared an interim dividend on common stock of $0.05 per share, payable March 30, 2012 to shareholders of record on March 16, 2012. As has been the company’s practice, it will continue to opportunistically capture value for shareholders through its share repurchase program.

Earnings Conference Call

CB&I will host a webcast on February 23 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, 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.

 
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,
2011 2010 2011 2010
 
Revenue $ 1,255,222 $ 947,851 $ 4,550,542 $ 3,642,318
 
Cost of revenue 1,108,607 818,239 3,980,306 3,150,255
       
Gross profit 146,615 129,612 570,236 492,063
% of Revenue 11.7 % 13.7 % 12.5 % 13.5 %
Selling and administrative expense 49,661 44,258 205,550 185,213
% of Revenue 4.0 % 4.7 % 4.5 % 5.1 %
Intangibles amortization 7,229 6,098 26,302 23,690
Other operating expense (income), net 304 (780 ) 74 (636 )
Equity earnings (9,649 ) (5,735 ) (16,887 ) (19,464 )
       
Income from operations 99,070 85,771 355,197 303,260
% of Revenue 7.9 % 9.0 % 7.8 % 8.3 %
Interest expense (3,330 ) (4,148 ) (11,030 ) (16,686 )
Interest income 2,300 1,392 7,796 4,955
       
Income before taxes 98,040 83,015 351,963 291,529
 
Income tax expense (27,512 ) (18,922 ) (96,765 ) (79,966 )
       
Net income 70,528 64,093 255,198 211,563
 
Less: Net income attributable to noncontrolling interests   (60 )   (896 )   (166 )   (7,004 )
 
Net income attributable to CB&I $ 70,468   $ 63,197   $ 255,032   $ 204,559  
 
Net income attributable to CB&I per share:
Basic $ 0.72 $ 0.65 $ 2.60 $ 2.08
Diluted $ 0.70 $ 0.63 $ 2.55 $ 2.04
 
Weighted average shares outstanding:
Basic 97,343 97,863 98,022 98,300
Diluted 100,008 100,498 100,205 100,459
 
Cash dividends on shares:
Amount $ 4,881 $ - $ 19,722 $ -
Per Share $ 0.05 $ - $ 0.20 $ -

               
CHICAGO BRIDGE & IRON COMPANY N.V.
SEGMENT INFORMATION
(in thousands)
 
Three Months Ended December 31, Twelve Months Ended December 31,
2011 2010 2011 2010
 
% of % of % of % of
NEW AWARDS* Total Total Total Total
Steel Plate Structures $ 281,822 36 % $ 364,799 37 % $ 4,079,599 60 % $ 1,303,930 39 %
Project Engineering and Construction** 337,135 44 % 476,961 48 % 2,190,272 32 % 1,634,683 49 %
Lummus Technology   153,450 20 %   150,200 15 %   537,844 8 %   422,514 12 %
Total $ 772,407 $ 991,960 $ 6,807,715 $ 3,361,127
 
 
% of % of % of % of
REVENUE Total Total Total Total
Steel Plate Structures $ 475,739 38 % $ 398,314 42 % $ 1,812,180 40 % $ 1,442,145 40 %
Project Engineering and Construction** 653,561 52 % 461,826 49 % 2,289,788 50 % 1,904,850 52 %
Lummus Technology   125,922 10 %   87,711 9 %   448,574 10 %   295,323 8 %
Total $ 1,255,222 $ 947,851 $ 4,550,542 $ 3,642,318
 
 
% of % of % of % of
INCOME FROM OPERATIONS Revenue Revenue Revenue Revenue
Steel Plate Structures $ 39,586 8.3 % $ 37,890 9.5 % $ 167,283 9.2 % $ 134,430 9.3 %
Project Engineering and Construction** 29,484 4.5 % 18,342 4.0 % 91,576 4.0 % 82,574 4.3 %
Lummus Technology   30,000 23.8 %   29,539 33.7 %   96,338 21.5 %   86,256 29.2 %
Total $ 99,070 7.9 % $ 85,771 9.0 % $ 355,197 7.8 % $ 303,260 8.3 %
 
 
* New awards represents the value of new project commitments received by the Company during a given period.
** Project Engineering and Construction (formerly CB&I Lummus)

 
CHICAGO BRIDGE & IRON COMPANY N.V.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
     
 
December 31,
2011 2010
ASSETS
 
Current assets $ 1,661,321 $ 1,206,648
Equity investments 95,687 92,400
Property and equipment, net 262,003 290,206
Goodwill and other intangibles, net 1,114,512 1,154,256
Other non-current assets 158,460 166,024
   
Total assets $ 3,291,983   $ 2,909,534  
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
Notes payable $ - $ 334
Current maturity of long-term debt 40,000 40,000
Other current liabilities 1,703,424 1,400,299
Long-term debt - 40,000
Other non-current liabilities 352,129 345,056
 
Shareholders' equity 1,196,430 1,083,845
   
Total liabilities and shareholders' equity $ 3,291,983   $ 2,909,534  
 
 
CHICAGO BRIDGE & IRON COMPANY N.V.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND OTHER FINANCIAL DATA
(in thousands)
 
Twelve Months
Ended December 31,
2011 2010
CASH FLOWS
 
Cash flows from operating activities $ 413,155 $ 288,406
Cash flows from investing activities (32,753 ) (58,376 )
Cash flows from financing activities (178,795 ) (86,343 )
Effect of exchange rate changes on cash and cash equivalents (11,534 ) 12,051
   
Increase in cash and cash equivalents 190,073 155,738
Cash and cash equivalents, beginning of the year   481,738     326,000  
Cash and cash equivalents, end of the year $ 671,811   $ 481,738  
 
OTHER FINANCIAL DATA
 
(Increase) decrease in receivables, net $ (130,192 ) $ 127,349
Change in contracts in progress, net 16,419 (37,017 )
Increase (decrease) in accounts payable   159,524     (112,558 )
Change in contract capital $ 45,751   $ (22,226 )
 
Depreciation and amortization $ 70,184 $ 72,885
Capital expenditures $ 40,945 $ 24,089
 
Backlog * $ 8,968,206 $ 6,906,633
 

* 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.

 

Contacts

CB&I
Christi Thoms, +1 832 513 1200
www.CBI.com

Release Summary

CB&I Reports 2011 Fourth Quarter and Full-Year Results 2011 Revenue and Net Income up 25%, New Awards of $6.8 billion

Contacts

CB&I
Christi Thoms, +1 832 513 1200
www.CBI.com