Exhibit 99.1
CB&I Reports 2009 Fourth Quarter and Year-End Results
THE WOODLANDS, Texas--(BUSINESS WIRE)--February 22, 2010--CB&I (NYSE: CBI) today reported net income for full-year 2009 of $174.3 million, or $1.79 per diluted share. For the 12 months of 2009, CB&I’s consolidated revenue was $4.6 billion.
New awards for 2009 totaled $6.1 billion, including the $1.4 billion Reficar refinery project in Colombia, the $1.0 billion gas plant project in Papua New Guinea, the $550 million Gorgon LNG storage tank award in Australia and the $530 million Gasco tank contract in Abu Dhabi, bringing CB&I’s year-end backlog to $7.2 billion. Cash and cash equivalents were $326.0 million as of December 31, 2009.
Fourth quarter net income was $41.2 million, or $0.41 per diluted share, and fourth quarter revenue was $1.0 billion. New awards totaled $3.4 billion in the quarter, comprising more than 50% of CB&I’s full year new awards.
“We are pleased to report that with net income of $174.3 million, 2009 has been the highest earning period in CB&I’s history, reflecting strong project execution worldwide,” said Philip K. Asherman, President and CEO. “Despite market uncertainty in the first half of 2009, we ended the year in a strong position with more than $300 million in cash and backlog of $7.2 billion, which includes a diverse mix of projects – more than 75% of which is outside the U.S. Looking ahead, we see improving stability in commodities and supply pricing and increasing momentum in our end markets, which gives us confidence going into 2010 and beyond.”
CB&I’s guidance for 2010 is as follows: | |||
New Awards: | $4.0 to $4.5 billion | ||
Revenue: | $3.9 to $4.2 billion | ||
Earnings per Share: | $1.60 to $1.85 |
Earnings Conference Call
CB&I will host a webcast, including a slide presentation, at 4:00 p.m. CST (5:00 p.m. EST) February 22 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 designs, engineers and constructs some of the world’s largest energy infrastructure projects, providing a full spectrum of EPC solutions and proven process technologies. Drawing upon more than a century of experience and the expertise of approximately 16,000 employees worldwide, CB&I safely and reliably executes more than 600 projects a year through its three business sectors: CB&I Lummus builds upstream and downstream oil & gas projects, LNG liquefaction and regasification terminals, and a wide range of other energy related projects; CB&I Steel Plate Structures designs, fabricates and constructs storage tanks and containment vessels and their associated systems for the oil & gas, water & wastewater, mining and nuclear industries; Lummus Technology capitalizes on more than 1,500 patents and patent applications to provide process technologies, catalysts and specialty equipment for petrochemical facilities, oil refineries and gas processing plants. For more information, visit www.CBI.com or access technical details at Lummus Technology Fact Sheets. If you would like to be added to CB&I’s news release email distribution list, visit www.cbi.com/ir/news.htm.
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, 2009, 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. AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Three Months | Twelve Months | |||||||||||||||
Ended December 31, | Ended December 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenue | $ | 1,038,013 | $ | 1,513,387 | $ | 4,556,503 | $ | 5,944,981 | ||||||||
Cost of revenue | 909,856 | 1,349,011 | 4,033,783 | 5,711,831 | ||||||||||||
Gross profit | 128,157 | 164,376 | 522,720 | 233,150 | ||||||||||||
% of Revenue | 12.3 | % | 10.9 | % | 11.5 | % | 3.9 | % | ||||||||
Selling and administrative expenses | 46,133 | 44,493 | 204,911 | 215,457 | ||||||||||||
% of Revenue | 4.4 | % | 2.9 | % | 4.5 | % | 3.6 | % | ||||||||
Intangibles amortization | 5,773 | 6,360 | 23,326 | 24,039 | ||||||||||||
Other operating expense (income), net | 5,449 | (508 | ) | 15,324 | (464 | ) | ||||||||||
Equity earnings | (6,288 | ) | (6,859 | ) | (35,064 | ) | (41,092 | ) | ||||||||
Income from operations | 77,090 | 120,890 | 314,223 | 35,210 | ||||||||||||
% of Revenue | 7.4 | % | 8.0 | % | 6.9 | % | 0.6 | % | ||||||||
Interest expense | (5,364 | ) | (6,580 | ) | (21,383 | ) | (21,109 | ) | ||||||||
Interest income | 627 | 1,249 | 1,817 | 8,426 | ||||||||||||
Income before taxes | 72,353 | 115,559 | 294,657 | 22,527 | ||||||||||||
Income tax expense | (29,606 | ) | (46,058 | ) | (114,917 | ) | (37,470 | ) | ||||||||
Net income (loss) | 42,747 | 69,501 | 179,740 | (14,943 | ) | |||||||||||
Less: Net income attributable to noncontrolling interests | (1,517 | ) | (920 | ) | (5,451 | ) | (6,203 | ) | ||||||||
Net income (loss) attributable to CB&I | $ | 41,230 | $ | 68,581 | $ | 174,289 | $ | (21,146 | ) | |||||||
Net income (loss) attributable to CB&I per share | ||||||||||||||||
Basic | $ | 0.42 | $ | 0.73 | $ | 1.82 | $ | (0.22 | ) | |||||||
Diluted | $ | 0.41 | $ | 0.72 | $ | 1.79 | $ | (0.22 | ) | |||||||
Weighted average shares outstanding | ||||||||||||||||
Basic | 97,695 | 94,354 | 95,832 | 95,402 | ||||||||||||
Diluted | 99,996 | 94,643 | 97,245 | 95,402 | ||||||||||||
CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES | |||||||||||||||||||||||||
SEGMENT INFORMATION | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | ||||||||||||||||||||||
% of | % of | % of | % of | ||||||||||||||||||||||
NEW AWARDS* | Total | Total | Total | Total | |||||||||||||||||||||
CB&I Steel Plate Structures | $ | 252,534 | 7 | % | $ | 758,739 | 71 | % | $ | 2,216,246 | 36 | % | $ | 2,562,599 | 60 | % | |||||||||
CB&I Lummus | 3,094,127 | 90 | % | 282,716 | 26 | % | 3,585,741 | 59 | % | 1,218,990 | 28 | % | |||||||||||||
Lummus Technology | 86,824 | 3 | % | 28,437 | 3 | % | 311,599 | 5 | % | 505,203 | 12 | % | |||||||||||||
Total | $ | 3,433,485 | $ | 1,069,892 | $ | 6,113,586 | $ | 4,286,792 | |||||||||||||||||
% of | % of | % of | % of | ||||||||||||||||||||||
REVENUE | Total | Total | Total | Total | |||||||||||||||||||||
CB&I Steel Plate Structures | $ | 388,813 | 37 | % | $ | 551,436 | 36 | % | $ | 1,650,271 | 36 | % | $ | 2,011,911 | 34 | % | |||||||||
CB&I Lummus | 547,840 | 53 | % | 859,413 | 57 | % | 2,542,834 | 56 | % | 3,494,398 | 59 | % | |||||||||||||
Lummus Technology | 101,360 | 10 | % | 102,538 | 7 | % | 363,398 | 8 | % | 438,672 | 7 | % | |||||||||||||
Total | $ | 1,038,013 | $ | 1,513,387 | $ | 4,556,503 | $ | 5,944,981 | |||||||||||||||||
% of | % of | % of | % of | ||||||||||||||||||||||
INCOME (LOSS) FROM OPERATIONS | Revenue | Revenue | Revenue | Revenue | |||||||||||||||||||||
CB&I Steel Plate Structures | $ | 42,145 | 10.8 | % | $ | 56,624 | 10.3 | % | $ | 147,194 | 8.9 | % | $ | 214,386 | 10.7 | % | |||||||||
CB&I Lummus | 11,032 | 2.0 | % | 36,365 | 4.2 | % | 86,127 | 3.4 | % | (289,935 | ) | (8.3 | %) | ||||||||||||
Lummus Technology | 23,913 | 23.6 | % | 27,901 | 27.2 | % | 80,902 | 22.3 | % | 110,759 | 25.2 | % | |||||||||||||
Total | $ | 77,090 | 7.4 | % | $ | 120,890 | 8.0 | % | $ | 314,223 | 6.9 | % | $ | 35,210 | 0.6 | % | |||||||||
* New awards represents the value of new project commitments received by the Company during a given period. | |||||||||||||||||||||||||
CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands) | ||||||||
December 31, | December 31, | |||||||
2009 | 2008 | |||||||
ASSETS | ||||||||
Current assets | $ | 1,195,578 | $ | 1,191,115 | ||||
Equity investments | 132,258 | 130,031 | ||||||
Property and equipment, net | 316,112 | 336,093 | ||||||
Goodwill and other intangibles, net | 1,179,600 | 1,198,674 | ||||||
Other non-current assets | 193,219 | 144,805 | ||||||
Total assets | $ | 3,016,767 | $ | 3,000,718 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Revolver borrowings and notes payable | $ | 709 | $ | 523 | ||||
Current maturity of long-term debt | 40,000 | 40,000 | ||||||
Other current liabilities | 1,639,166 | 1,947,602 | ||||||
Long-term debt | 80,000 | 120,000 | ||||||
Other non-current liabilities | 359,602 | 318,740 | ||||||
Shareholders' equity | 897,290 | 573,853 | ||||||
Total liabilities and shareholders' equity | $ | 3,016,767 | $ | 3,000,718 | ||||
CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND OTHER FINANCIAL DATA | ||||||||
(in thousands) | ||||||||
Twelve Months | ||||||||
Ended December 31, | ||||||||
2009 | 2008 | |||||||
CASH FLOWS | ||||||||
Cash flows from operating activities | $ | 247,413 | $ | 26,309 | ||||
Cash flows from investing activities | (22,366 | ) | (121,249 | ) | ||||
Cash flows from financing activities | 12,732 | (122,716 | ) | |||||
Increase (decrease) in cash and cash equivalents | 237,779 | (217,656 | ) | |||||
Cash and cash equivalents, beginning of the year | 88,221 | 305,877 | ||||||
Cash and cash equivalents, end of the year | $ | 326,000 | $ | 88,221 | ||||
OTHER FINANCIAL DATA | ||||||||
Decrease in receivables, net | $ | 117,787 | $ | 44,947 | ||||
Change in contracts in progress, net | 37,101 | (130,044 | ) | |||||
(Increase) decrease in non-current contract retentions | (5,173 | ) | 1,416 | |||||
(Decrease) increase in accounts payable | (220,098 | ) | 137,256 | |||||
Change in contract capital | $ | (70,383 | ) | $ | 53,575 | |||
Depreciation and amortization expense | $ | 79,531 | $ | 78,244 | ||||
Capital expenditures | $ | 47,839 | $ | 124,595 | ||||
Backlog * | $ | 7,199,462 | $ | 5,681,008 | ||||
* Backlog includes the value of new award commitments until work is performed and revenue is recognized or until cancellation. Backlog may fluctuate with currency movements. | ||||||||
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CONTACT:
CB&I
Media: Jan Sieving, +1 832 513 1111
Investors: Mark Coscio, +1 832 513 1200