Exhibit 99.1
CB&I Reports Growth in First Quarter Results;
Revenue Up 38%; Net Income and Backlog Up 14%
THE WOODLANDS, Texas--(BUSINESS WIRE)--April 29, 2004--CB&I
(NYSE:CBI) today reported net income increased 14% to $14.6 million or
$0.30 per diluted share for the first quarter ended March 31, 2004,
compared with $12.8 million or $0.28 per diluted share for the
comparable period in 2003.
For the quarter ended March 31, 2004, new business taken increased
7% to $348 million, compared with $325 million in 2003. The Company
continues to anticipate full-year 2004 new business taken in the range
of $1.8 billion to $1.9 billion. New business during the quarter
included the previously announced LNG storage terminal in Equatorial
Guinea, large storage tank projects in Australia and the Middle East,
and process-related work in North America. Backlog at March 31, 2004,
increased 14% to $1.5 billion, compared with $1.3 billion at the end
of the year-earlier period.
"We're pleased to report that first quarter EPS exceeded our
expectations, which has given us a solid start to 2004," said Gerald
M. Glenn, CB&I's Chairman, President and CEO. "With record backlog
going into the year, we anticipate continually improving revenue and
earnings performance for the year, and we expect the pace of new
business awards to increase."
Revenue for the first quarter of 2004 increased 38% to $443.6
million from $322.3 million in the first quarter of 2003. The increase
in revenue was attributable to the strong backlog going into 2004,
which produced significant revenue growth as projects moved into the
field construction phase. Revenue grew 26% in North America, including
a higher volume of process-related work. Revenue increased 80% in the
Company's Europe, Africa, Middle East (EAME) segment, which includes
revenue from CB&I John Brown acquired May 30, 2003, and revenue grew
43% in the Asia Pacific (AP) segment, due primarily to large projects
now under way in China and Australia. Revenue grew 21% in the Central
and South America (CSA) segment, as projects sold in 2003 moved into
the field construction phase.
First quarter 2004 gross profit was $46.8 million, up 18% compared
with $39.7 million in the comparable 2003 period. Gross profit as a
percentage of revenue was lower compared with the prior-year period.
This was partially attributable to the mix and timing of work and to
the recognition of costs for work performed on certain projects for
which the Company is contractually obligated without the benefit of
immediate owner approval. As these costs are approved, associated
revenue will be recognized. Excluding the impact of this work, the
gross profit percentage for the quarter would have been comparable to
the prior quarter.
Income from operations in the first quarter of 2004 increased 12%
to $22.4 million, compared with $20.0 million in the year-earlier
period. Higher revenue and continued control of overhead costs and
administrative expenses led to better results in the North America and
AP segments, while operating income in the EAME segment declined
slightly. Operating income declined in the CSA segment as a result of
project mix.
At March 31, 2004, the Company had cash and cash equivalents of
$81.8 million, compared with $98.8 million at the end of the first
quarter 2003. Capital expenditures for the first quarter were $2.7
million, compared with $8.5 million in the year-earlier period. CB&I
had cash in excess of debt of $6.3 million at March 31, 2004.
"CB&I's operations continue to grow and to perform well, and we
are tracking increasingly abundant opportunities in our key markets
worldwide, especially in clean fuels and LNG," Glenn added. "We
continue to maintain a solid balance sheet, so that CB&I will be well
positioned to pursue targeted acquisitions that will fit our culture
and complement or extend our existing business lines. We are confident
our outstanding corps of employees worldwide will continue to produce
growth in value for our shareholders and investors."
Any statements made in this release that are not based on
historical fact are forward-looking statements and represent
management's best judgment as to what may occur in the future. The
actual outcome and results are not guaranteed, are subject to risks,
uncertainties and assumptions and may differ materially from what is
expressed. A variety of factors could cause business conditions and
results to differ materially from what is contained in the
forward-looking statements including, but not limited to, the
Company's ability to realize cost savings from its expected execution
performance of contracts; the uncertain timing and the funding of new
contract awards, and project cancellations and operating risks; cost
overruns on fixed priced contracts; changes in the costs of or
delivery schedule for components and materials; increased competition;
fluctuating revenues resulting from a number of factors, including the
cyclic nature of the individual markets in which the Company's
customers operate; lower than expected activity in the hydrocarbon
industry, demand from which is the largest component of the Company's
revenue, or lower than expected growth in the Company's other primary
end markets; the Company's ability to integrate and successfully
operate acquired businesses and the risks associated with those
businesses; and the ultimate outcome or effect of the pending FTC
proceeding on the Company's business, financial condition and results
of operations. Additional factors which could cause actual results to
differ from such forward-looking statements are set forth in the
Company's Form S-3 filed with the SEC on April 6, 2004. The Company
does not undertake to update any forward-looking statements contained
herein, whether as a result of new information, future events or
otherwise.
CB&I is one of the world's leading engineering, procurement and
construction companies, specializing in lump-sum turnkey projects for
customers that produce, process, store and distribute the earth's
natural resources. With more than 60 locations and approximately
10,000 employees throughout the world, CB&I capitalizes on its global
expertise and local knowledge to safely and reliably deliver projects
virtually anywhere. Information about CB&I is available at
www.CBIepc.com.
CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
Three Months
Ended March 31,
2004 2003
Revenue $443,553 $322,309
Cost of revenue 396,790 282,648
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Gross profit 46,763 39,661
% of Revenue 10.5% 12.3%
Selling and
administrative
expenses 23,847 19,198
% of Revenue 5.4% 6.0%
Intangibles
amortization 506 638
Other operating
income, net (23) (136)
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Income from
operations 22,433 19,961
% of Revenue 5.1% 6.2%
Interest expense (1,726) (1,687)
Interest income 206 466
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Income before
taxes and
minority interest 20,913 18,740
Income tax expense (6,692) (5,611)
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Income before
minority interest 14,221 13,129
Minority interest in
loss (income) 383 (365)
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Net income $ 14,604 $ 12,764
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Net income per share
Basic $ 0.31 $ 0.29
Diluted $ 0.30 $ 0.28
Weighted average shares
outstanding
Basic 47,021 44,394
Diluted 49,315 46,248
CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
SEGMENT INFORMATION
(in thousands)
Three Months Ended
March 31, March 31,
2004 2003
NEW BUSINESS TAKEN(a) % of % of
Total Total
North America $167,472 48% $231,584 71%
Europe/Africa/Middle East 97,239 28% 46,931 15%
Asia Pacific 65,015 19% 28,566 9%
Central & South America 18,006 5% 17,663 5%
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Total $347,732 $324,744
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REVENUE % of % of
Total Total
North America $257,050 58% $204,150 63%
Europe/Africa/Middle East 105,912 24% 58,953 18%
Asia Pacific 58,638 13% 41,032 13%
Central & South America 21,953 5% 18,174 6%
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Total $443,553 $322,309
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INCOME FROM OPERATIONS % of % of
Revenues Revenues
North America $ 14,700 5.7% $ 11,500 5.6%
Europe/Africa/Middle East 3,451 3.3% 3,560 6.0%
Asia Pacific 1,680 2.9% 1,313 3.2%
Central & South America 2,602 11.9% 3,588 19.7%
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Total $ 22,433 5.1% $ 19,961 6.2%
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(a) New business taken represents the value of new project
commitments received by the Company during a given period.
These commitments are included in backlog until work is
performed and revenue is recognized or until cancellation.
Backlog may also fluctuate with currency movements.
CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, Dec. 31,
2004 2003
ASSETS
Current assets $513,291 $512,427
Property and equipment, net 122,324 124,505
Goodwill and other intangibles, net 253,452 249,982
Other non-current assets 37,130 45,448
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Total assets $926,197 $932,362
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $353,452 $376,252
Long-term debt 75,000 75,000
Other non-current liabilities 91,646 91,946
Shareholders' equity 406,099 389,164
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Total liabilities
and shareholders' equity $926,197 $932,362
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CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
AND OTHER FINANCIAL DATA
(in thousands)
Three Months
Ended March 31,
2004 2003
CASH FLOWS
Cash flows from operating activities $(27,547) $ 5,627
Cash flows from investing activities (2,914) (8,618)
Cash flows from financing activities (663) (705)
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Decrease in cash and cash
equivalents (31,124) (3,696)
Cash and cash equivalents,
beginning of the year 112,918 102,536
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Cash and cash equivalents,
end of the period $ 81,794 $ 98,840
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OTHER FINANCIAL DATA
Depreciation and amortization expense $ 5,292 $ 4,855
Capital expenditures 2,748 8,539
(Increase)/decrease in receivables, net (52,195) 17,323
Decrease/(increase) in contracts in
progress, net 14,326 (9,675)
Decrease in non-current contract
retentions 3,211 1,924
Decrease in accounts payable (14,217) (7,127)
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Change in contract capital $(48,875) $ 2,445
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CONTACT: CB&I, The Woodlands
Media: Bruce Steimle, 832-513-1111
or
Analysts: Marty Spake, 832-513-1245