Exhibit 99.1
CB&I Reports Second Quarter 2011 Results
Earnings up 30% over Q2 2010
THE WOODLANDS, Texas--(BUSINESS WIRE)--July 21, 2011--CB&I (NYSE: CBI) today reported net income of $61.9 million, or $0.62 per diluted share, for the second quarter of 2011. Revenue for the quarter was $1.1 billion.
New awards for the second quarter totaled $1.2 billion, including a gas processing plant in the northeastern U.S., an engineering contract for an offshore platform in the North Sea, and storage tank projects in the Canadian oil sands and the Bahamas. Backlog as of June 30 was $7.3 billion.
Last week, CB&I announced a $2.3 billion contract for the mechanical, electrical and instrumentation work on the Gorgon LNG project in Western Australia, and today, the company announced a $500 million contract for two LNG storage tanks on another Australian LNG project. These awards are not reflected in second quarter results and will be included in the third quarter earnings report.
“We are very pleased with the magnitude of new awards we have announced so far this year,” said Philip K. Asherman, President and CEO. “This reflects both the growing momentum in our end markets and ongoing client confidence in our capabilities. Additionally, our operational execution and financial performance have been very strong, providing us with greater visibility into the full year. As a result we are adjusting our 2011 full-year guidance.”
CB&I’s guidance for 2011 is:
| New Awards: | $6.8 - $7.2 billion | ||
| Revenue: | $4.3 - $4.7 billion | ||
| Earnings per Share: | $2.35 - $2.45 |
During the first half of 2011, the Company returned $99.3 million to shareholders, which included $89.4 million of stock repurchases and $9.9 million through the quarterly cash dividends. Cash and cash equivalents as of June 30, 2011 were $375.9 million.
Earnings Conference Call
CB&I will host a webcast on July 21 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, 2010, 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, | ||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||
| Revenue | $ | 1,085,705 | $ | 916,044 | $ | 2,039,976 | $ | 1,785,368 | |||||||||
| Cost of revenue | 945,612 | 795,742 | 1,763,167 | 1,542,785 | |||||||||||||
| Gross profit | 140,093 | 120,302 | 276,809 | 242,583 | |||||||||||||
| % of Revenue | 12.9 | % | 13.1 | % | 13.6 | % | 13.6 | % | |||||||||
| Selling and administrative expenses | 48,475 | 46,342 | 106,140 | 97,590 | |||||||||||||
| % of Revenue | 4.5 | % | 5.1 | % | 5.2 | % | 5.5 | % | |||||||||
| Intangibles amortization | 6,372 | 5,812 | 12,664 | 11,760 | |||||||||||||
| Other operating expense (income), net | 54 | 779 | (844 | ) | 852 | ||||||||||||
| Equity earnings | (3,204 | ) | (3,533 | ) | (4,550 | ) | (7,042 | ) | |||||||||
| Income from operations | 88,396 | 70,902 | 163,399 | 139,423 | |||||||||||||
| % of Revenue | 8.1 | % | 7.7 | % | 8.0 | % | 7.8 | % | |||||||||
| Interest expense | (3,538 | ) | (3,079 | ) | (6,595 | ) | (6,799 | ) | |||||||||
| Interest income | 1,743 | 1,055 | 3,115 | 2,291 | |||||||||||||
| Income before taxes | 86,601 | 68,878 | 159,919 | 134,915 | |||||||||||||
| Income tax expense | (24,898 | ) | (19,994 | ) | (46,652 | ) | (41,126 | ) | |||||||||
| Net income | 61,703 | 48,884 | 113,267 | 93,789 | |||||||||||||
| Less: Net loss (income) attributable to noncontrolling interests | 191 | (1,557 | ) | (867 | ) | (4,271 | ) | ||||||||||
| Net income attributable to CB&I | $ | 61,894 | $ | 47,327 | $ | 112,400 | $ | 89,518 | |||||||||
| Net income attributable to CB&I per share: | |||||||||||||||||
| Basic | $ | 0.63 | $ | 0.48 | $ | 1.14 | $ | 0.91 | |||||||||
| Diluted | $ | 0.62 | $ | 0.47 | $ | 1.12 | $ | 0.89 | |||||||||
| Weighted average shares outstanding: | |||||||||||||||||
| Basic | 98,449 | 98,951 | 98,494 | 98,840 | |||||||||||||
| Diluted | 100,163 | 100,641 | 100,503 | 100,796 | |||||||||||||
| Cash dividends on shares: | |||||||||||||||||
| Amount | $ | 4,930 | $ | - | $ | 9,920 | $ | - | |||||||||
| Per Share | $ | 0.05 | $ | - | $ | 0.10 | $ | - | |||||||||
| CHICAGO BRIDGE & IRON COMPANY N.V. | |||||||||||||||||||||||||||||||||
| SEGMENT INFORMATION | |||||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||||||||||
| % of | % of | % of | % of | ||||||||||||||||||||||||||||||
| NEW AWARDS* | Total | Total | Total | Total | |||||||||||||||||||||||||||||
| CB&I Steel Plate Structures | $ | 370,541 | 31 | % | $ | 286,651 | 31 | % | $ | 662,085 | 30 | % | $ | 474,081 | 32 | % | |||||||||||||||||
| CB&I Lummus | 767,388 | 63 | % | 546,027 | 60 | % | 1,354,091 | 61 | % | 819,737 | 56 | % | |||||||||||||||||||||
| Lummus Technology | 77,660 | 6 | % | 83,117 | 9 | % | 210,976 | 9 | % | 182,217 | 12 | % | |||||||||||||||||||||
| Total | $ | 1,215,589 | $ | 915,795 | $ | 2,227,152 | $ | 1,476,035 | |||||||||||||||||||||||||
| % of | % of | % of | % of | ||||||||||||||||||||||||||||||
| REVENUE | Total | Total | Total | Total | |||||||||||||||||||||||||||||
| CB&I Steel Plate Structures | $ | 456,357 | 42 | % | $ | 360,261 | 39 | % | $ | 825,065 | 41 | % | $ | 695,169 | 39 | % | |||||||||||||||||
| CB&I Lummus | 541,647 | 50 | % | 505,847 | 55 | % | 1,006,217 | 49 | % | 971,949 | 54 | % | |||||||||||||||||||||
| Lummus Technology | 87,701 | 8 | % | 49,936 | 6 | % | 208,694 | 10 | % | 118,250 | 7 | % | |||||||||||||||||||||
| Total | $ | 1,085,705 | $ | 916,044 | $ | 2,039,976 | $ | 1,785,368 | |||||||||||||||||||||||||
| % of | % of | % of | % of | ||||||||||||||||||||||||||||||
| INCOME FROM OPERATIONS | Revenue | Revenue | Revenue | Revenue | |||||||||||||||||||||||||||||
| CB&I Steel Plate Structures | $ | 47,489 | 10.4 | % | $ | 32,545 | 9.0 | % | $ | 84,413 | 10.2 | % | $ | 64,638 | 9.3 | % | |||||||||||||||||
| CB&I Lummus | 24,476 | 4.5 | % | 25,264 | 5.0 | % | 39,491 | 3.9 | % | 44,552 | 4.6 | % | |||||||||||||||||||||
| Lummus Technology | 16,431 | 18.7 | % | 13,093 | 26.2 | % | 39,495 | 18.9 | % | 30,233 | 25.6 | % | |||||||||||||||||||||
| Total | $ | 88,396 | 8.1 | % | $ | 70,902 | 7.7 | % | $ | 163,399 | 8.0 | % | $ | 139,423 | 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) | ||||||||
| June 30, | December 31, | |||||||
| 2011 | 2010 | |||||||
| ASSETS | ||||||||
| Current assets | $ | 1,389,572 | $ | 1,206,648 | ||||
| Equity investments | 95,547 | 92,400 | ||||||
| Property and equipment, net | 277,953 | 290,206 | ||||||
| Goodwill and other intangibles, net | 1,163,950 | 1,154,256 | ||||||
| Other non-current assets | 151,984 | 166,024 | ||||||
| Total assets | $ | 3,079,006 | $ | 2,909,534 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Notes payable | $ | 574 | $ | 334 | ||||
| Current maturity of long-term debt | 40,000 | 40,000 | ||||||
| Other current liabilities | 1,497,180 | 1,400,299 | ||||||
| Long-term debt | 40,000 | 40,000 | ||||||
| Other non-current liabilities | 335,468 | 345,056 | ||||||
| Shareholders' equity | 1,165,784 | 1,083,845 | ||||||
| Total liabilities and shareholders' equity | $ | 3,079,006 | $ | 2,909,534 | ||||
| CHICAGO BRIDGE & IRON COMPANY N.V. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND OTHER FINANCIAL DATA | ||||||||
| (in thousands) | ||||||||
| Six Months | ||||||||
| Ended June 30, | ||||||||
| 2011 | 2010 | |||||||
| CASH FLOWS | ||||||||
| Cash flows from operating activities | $ | (34,443 | ) | $ | 40,823 | |||
| Cash flows from investing activities | (13,262 | ) | (5,723 | ) | ||||
| Cash flows from financing activities | (83,737 | ) | (40,362 | ) | ||||
| Effect of exchange rate changes on cash | 25,582 | (20,282 | ) | |||||
| Decrease in cash and cash equivalents | (105,860 | ) | (25,544 | ) | ||||
| Cash and cash equivalents, beginning of the year | 481,738 | 326,000 | ||||||
| Cash and cash equivalents, end of the period | $ | 375,878 | $ | 300,456 | ||||
| OTHER FINANCIAL DATA | ||||||||
| (Increase) decrease in receivables, net | $ | (216,547 | ) | $ | 79,194 | |||
| Change in contracts in progress, net | (19,596 | ) | (56,664 | ) | ||||
| Increase (decrease) in accounts payable | 87,101 | (104,594 | ) | |||||
| Change in contract capital | $ | (149,042 | ) | $ | (82,064 | ) | ||
| Depreciation and amortization | $ | 34,545 | $ | 38,323 | ||||
| Capital expenditures | $ | 15,763 | $ | 9,250 | ||||
| Backlog * | $ | 7,257,390 | $ | 6,777,751 | ||||
* 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. | ||||||||
| ||||||||
CONTACT:
CB&I
Media: Jan Sieving, +1 832 513 1111
or
Investors: Christi Thoms, +1 832 513 1200