CB&I Reports 2012 Fourth Quarter and Full-Year Results

Earnings per Share up 30% over Q4 2011, 2012 New Awards of $7.3 billion

THE WOODLANDS, Texas--()--CB&I (NYSE: CBI) today reported net income for the fourth quarter of $89.6 million, or $0.91 per diluted share, versus $70.5 million or $0.70 per diluted share in the fourth quarter of 2011. Revenue for the quarter was $1.5 billion, with new awards of $2.9 billion.

For the full-year, net income was $301.7 million, or $3.07 per diluted share, up 20% in earnings per share year-over-year. CB&I’s consolidated 2012 revenue was $5.5 billion, up 21% from the prior year. Cash and cash equivalents as of December 31, 2012 were $643.4 million.

“I am extremely pleased that CB&I has delivered another year of strong new awards and outstanding performance, resulting in double-digit backlog growth and earnings per share exceeding the top end of our expectations for 2012,” said Philip K. Asherman, President and CEO. “I am particularly proud that we continue to achieve exceptional safety performance around the world. On nearly 71 million work-hours at year-end and with one of our businesses having executed more than 39 million work-hours with zero lost time incidents, CB&I remains in the top tier of safest companies in the industry. Our relentless focus on safety provides the company with not only a tremendous competitive advantage, but also drives recruiting, retention, and client confidence, and most importantly it’s the right thing to do for our employees.”

New Awards for 2012 totaled $7.3 billion, reflecting the company’s ability to capitalize on its global end markets across each of its business sectors. Noteworthy 2012 awards included FEED contracts for Freeport LNG in the U.S. and Andarko’s Mozambique LNG project, an Oil Sands award for the Kearl Expansion in Canada, Gas Processing projects in Australia and Denmark, an Offshore contract for the Mariner Topsides project in the North Sea, a Paraxylene technology award by Reliance for the world’s largest aromatics complex, as well as numerous additional strategic Petrochemical and Refining technology licensing awards.

Earnings Conference Call

CB&I will host a webcast on February 27 at 4:00 p.m. CST (5:00 p.m. EST) 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) 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 50,000 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.

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, 2012, 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,
  2012     2011     2012     2011  
 
Revenue $ 1,537,468 $ 1,255,222 $ 5,485,206 $ 4,550,542
Cost of revenue 1,339,800 1,108,607 4,786,499 3,980,306
       
Gross profit 197,668 146,615 698,707 570,236
% of Revenue 12.9 % 11.7 % 12.7 % 12.5 %
 
Selling and administrative expense 59,464 49,661 227,948 205,550
% of Revenue 3.9 % 4.0 % 4.2 % 4.5 %
 
Intangibles amortization 4,488 7,229 22,613 26,302
Other operating expense, net 6,618 304 10,434 74
Equity earnings (11,416 ) (9,649 ) (17,931 ) (16,887 )
       
Income from operations 138,514 99,070 455,643 355,197
% of Revenue 9.0 % 7.9 % 8.3 % 7.8 %
 
Interest expense (7,837 ) (3,330 ) (19,606 ) (11,030 )
Interest income 1,592 2,300 8,029 7,796
       
Income before taxes 132,269 98,040 444,066 351,963
 
Income tax expense (35,277 ) (27,512 ) (127,003 ) (96,765 )
       
Net income 96,992 70,528 317,063 255,198
 
Less: Net income attributable to noncontrolling interests   (7,375 )   (60 )   (15,408 )   (166 )
 
Net income attributable to CB&I $ 89,617   $ 70,468   $ 301,655   $ 255,032  
 
Net income attributable to CB&I per share:
Basic $ 0.93 $ 0.72 $ 3.12 $ 2.60
Diluted $ 0.91 $ 0.70 $ 3.07 $ 2.55
 
Weighted average shares outstanding:
Basic 96,479 97,343 96,633 98,022
Diluted 98,230 100,008 98,231 100,205
 
Cash dividends on shares:
Amount $ 4,841 $ 4,881 $ 19,394 $ 19,722
Per Share $ 0.05 $ 0.05 $ 0.20 $ 0.20
 

               
CHICAGO BRIDGE & IRON COMPANY N.V.
SEGMENT INFORMATION
(in thousands)
   
Three Months Ended December 31,   Twelve Months Ended December 31,  
2012 2011   2012 2011
 
% of % of % of % of
NEW AWARDS* Total Total Total Total
Steel Plate Structures $ 921,344 32 % $ 281,822 36 % $ 2,495,358 34 % $ 4,079,599 60 %
Project Engineering and Construction 1,785,141 63 % 337,135 44 % 4,083,891 56 % 2,190,272 32 %
Lummus Technology   144,251 5 %   153,450 20 %   726,721 10 %   537,844 8 %
Total $ 2,850,736 $ 772,407 $ 7,305,970 $ 6,807,715
 
 
% of % of % of % of
REVENUE Total Total Total Total
Steel Plate Structures $ 541,644 35 % $ 475,739 38 % $ 1,957,681 36 % $ 1,812,180 40 %
Project Engineering and Construction 847,729 55 % 653,561 52 % 3,040,229 55 % 2,289,788 50 %
Lummus Technology   148,095 10 %   125,922 10 %   487,296 9 %   448,574 10 %
Total $ 1,537,468 $ 1,255,222 $ 5,485,206 $ 4,550,542
 
 
% of % of % of % of
INCOME FROM OPERATIONS Revenue Revenue Revenue Revenue
Steel Plate Structures $ 54,649 10.1 % $ 39,586 8.3 % $ 192,593 9.8 % $ 167,283 9.2 %
Project Engineering and Construction 42,945 5.1 % 29,484 4.5 % 136,689 4.5 % 91,576 4.0 %
Lummus Technology   40,920 27.6 %   30,000 23.8 %   126,361 25.9 %   96,338 21.5 %
Total $ 138,514 9.0 % $ 99,070 7.9 % $ 455,643 8.3 % $ 355,197 7.8 %
 
 
* 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,
2012 2011 *
ASSETS
 
Current assets $ 2,721,555 $ 1,653,096
Equity investments 97,267 95,687
Property and equipment, net 285,871 262,003
Goodwill and other intangibles, net 1,093,019 1,114,512
Other non-current assets 131,963 154,051
   
Total assets $ 4,329,675 $ 3,279,349
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
Current maturity of long-term debt $ - $ 40,000
Other current liabilities 1,772,522 1,716,879
Long-term debt 800,000 -
Other non-current liabilities 360,843 326,040
 
Shareholders' equity 1,396,310 1,196,430
   
Total liabilities and shareholders' equity $ 4,329,675 $ 3,279,349
 
* Certain December 31, 2011 income tax payable, income tax receivable and deferred tax asset and liability balances have been reclassified to conform to our December 31, 2012 presentation.
 

 
CHICAGO BRIDGE & IRON COMPANY N.V.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND OTHER FINANCIAL DATA
(in thousands)
   
Twelve Months
Ended December 31,
  2012     2011  
CASH FLOWS
 
Cash flows from operating activities $ 202,504 $ 413,155
Cash flows from investing activities (66,785 ) (32,753 )
Cash flows from financing activities (174,111 ) (178,795 )
Effect of exchange rate changes on cash and cash equivalents 9,976 (11,534 )
   
(Decrease) increase in cash and cash equivalents (28,416 ) 190,073
Cash and cash equivalents, beginning of the year   671,811     481,738  
Cash and cash equivalents, end of the year $ 643,395   $ 671,811  
 
OTHER FINANCIAL DATA
 
Increase in receivables, net $ (258,132 ) $ (130,192 )
Change in contracts in progress, net (222,133 ) 16,419
Increase in accounts payable   135,755     159,524  
Change in contract capital $ (344,510 ) $ 45,751  
 
Depreciation and amortization $ 66,421 $ 70,184
Capital expenditures $ 72,279 $ 40,945
 
Backlog ** $ 10,928,818 $ 8,968,206
 
 
** 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
Investors: Christi Thoms, +1 832-513-1200
Media: www.CBI.com

Release Summary

CB&I REPORTS 2012 FOURTH QUARTER AND FULL-YEAR RESULTS Earnings per Share up 30% over Q4 2011, 2012 New Awards of $7.3 billion

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Contacts

CB&I
Investors: Christi Thoms, +1 832-513-1200
Media: www.CBI.com