Exhibit 99.1
CB&I Reports 2006 Results
New Awards Up 35%; Backlog Growth of 43%
THE WOODLANDS, Texas--(BUSINESS WIRE)--Feb. 27, 2007--CB&I
(NYSE:CBI) today reported results for the fiscal year ended Dec. 31,
2006.
New awards increased 35% to $4.4 billion, compared with $3.3
billion in 2005. Notable awards included a liquefied natural gas (LNG)
import terminal in North America, large natural gas processing plants
in North America and Africa, an LNG liquefaction train in Australia,
storage facilities for a GTL project in the Middle East, and refinery
expansion work in both North and South America. Backlog at Dec. 31,
2006, increased 43% to $4.6 billion, compared with $3.2 billion at the
end of 2005.
Revenue in 2006 increased 38% to $3.1 billion, compared with $2.3
billion in 2005, with growth reported in all geographic segments. In
North America, revenue grew 23%, primarily as a result of higher
backlog of process-related work coupled with the impact of a large LNG
award. Revenue growth of 89% in the Europe, Africa, Middle East region
primarily resulted from the significant LNG projects under way in the
UK. A 5% increase in the Asia Pacific segment was due mainly to steady
performance on a major LNG terminal in China, while a 22% increase in
Central and South America was a result of higher backlog.
Net income for 2006 was $117.0 million or $1.19 per diluted share,
compared with net income of $16.0 million or $0.16 per diluted share
for 2005.
During 2006, CB&I repurchased $106.7 million in stock. The Company
ended the year with cash and cash equivalents of $619 million,
compared with $334 million at the end of 2005.
CB&I is issuing the following guidance for 2007: new awards are
expected to be in a range of $5.0 - $5.5 billion; revenue is expected
to be in a range of $3.8 - $4.1 billion; and earnings per share are
expected to be in a range of $1.35 - $1.50.
CB&I will host a conference call at 9 a.m. Central time (10 a.m.
EST) Wednesday, Feb. 28, 2007, to discuss financial and operating
results, and answer questions from investors.
The conference call will be broadcast live over the Internet. To
access the webcast, go to www.shareholder.com/cbi/medialist.cfm and
select the conference call link. Please log on to this Web site at
least 15 minutes prior to the start of the call to register and to
download and install any necessary audio software. The webcast can
also be accessed from the investor relations section of CB&I's Web
site (www.CBI.com) by selecting "Presentations and Webcasts".
For those who are unable to participate in the live call, the
webcast of the conference call will be available at the Web sites
listed above following the event. In addition, a replay of the
conference call can be accessed by telephone at 1-800- 642-1687 (from
within the U.S.) or 1-706-645-9291 (from outside the U.S.), passcode
7634337. Both the archived webcast and telephone replay will be
available until close of business March 7, 2007.
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 those
expressed or implied by any forward- looking statements. 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 performance of contracts; the uncertain
timing and funding of new contract awards, and project cancellations
and operating risks; cost overruns on fixed price, target price or
similar contracts whether as the result of improper estimates or
otherwise; risks associated with percentage-of-completion accounting;
the Company's ability to settle or negotiate unapproved change orders
and claims; changes in the costs or availability of, or delivery
schedule for, equipment, components, materials, labor or
subcontractors; adverse impacts from weather conditions may affect the
Company's performance and timeliness of completion, which could lead
to increased costs and affect the costs or availability of, or
delivery schedule for, equipment, components, materials, labor or
subcontractors; increased competition; fluctuating revenue resulting
from a number of factors, including the cyclical 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; lower than expected
growth in Company's primary end markets, including but not limited to
LNG and clean fuels; risks inherent in acquisitions and the Company's
ability to obtain financing for proposed acquisitions; the Company's
ability to integrate and successfully operate acquired businesses and
the risks associated with those businesses; adverse outcomes of
pending claims or litigation or the possibility of new claims or
litigation, including but not limited to pending securities class
action litigation, and the potential effect on the Company's business,
financial condition and results of operations; the ultimate outcome or
effect of the pending Federal Trade Commission order on the Company's
business, financial condition and results of operations; lack of
necessary liquidity to finance expenditures prior to the receipt of
payment for the performance of contracts and to provide bid and
performance bonds and letters of credit securing the Company's
obligations under its bids and contracts; proposed and actual
revisions to U.S. and non-U.S. tax laws, and interpretation of said
laws, and U.S. tax treaties with non-U.S. countries (including The
Netherlands), that seek to increase income taxes payable; political
and economic conditions including, but not limited to, war, conflict
or civil or economic unrest in countries in which the Company
operates; and a downturn or disruption in the economy in general.
Additional factors which could cause actual results to differ
materially from such forward-looking statements are described under
"Risk Factors" as set forth in the Company's Form 10-K filed with the
SEC for the year ended Dec. 31, 2006. The Company does not undertake
to update any forward-looking statements contained herein, whether as
a result of new information, future events or otherwise.
ABOUT CB&I
CB&I executes more than 500 projects each year and is one of the
world's leading engineering, procurement and construction (EPC)
companies, specializing in projects for customers that produce,
process, store and distribute the world's natural resources. With more
than 60 locations and approximately 12,000 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.CBI.com.
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CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
Three Months Twelve Months
Ended Dec. 31, Ended Dec. 31,
2006 2005 2006 2005
Revenue $873,541 $674,622 $3,125,307 $2,257,517
Cost of revenue 801,050 615,540 2,843,554 2,109,113
------- ------- --------- ---------
Gross profit 72,491 59,082 281,753 148,404
% of Revenue 8.3% 8.8% 9.0% 6.6%
Selling and
administrative
expenses 31,151 30,419 133,769 106,937
% of Revenue 3.6% 4.5% 4.3% 4.7%
Intangibles
amortization 128 342 1,572 1,499
Other operating
loss (income), net 1,032 (7,933) 773 (10,267)
------- ------- --------- ---------
Income from
operations 40,180 36,254 145,639 50,235
% of Revenue 4.6% 5.4% 4.7% 2.2%
Interest expense 1,231 (2,164) (4,751) (8,858)
Interest income 7,715 2,188 20,420 6,511
------- ------- --------- ---------
Income before
taxes and minority
interest 49,126 36,208 161,308 47,888
Income tax expense (8,399) (18,128) (38,127) (28,379)
------- ------- --------- ---------
Income before
minority interest 40,727 18,080 123,181 19,509
Minority interest in
income (2,145) (918) (6,213) (3,532)
------- ------- --------- ---------
Net income $ 38,582 $ 17,162 $ 116,968 $ 15,977
======= ======= ========= =========
Net income per share
Basic $ 0.40 $ 0.18 $ 1.21 $ 0.16
Diluted $ 0.40 $ 0.17 $ 1.19 $ 0.16
Weighted average shares
outstanding
Basic 96,079 97,843 96,811 97,583
Diluted 97,496 99,638 98,509 99,766
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CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
SEGMENT INFORMATION
(in thousands)
Three Months Ended
Dec. 31, Dec. 31,
2006 2005
NEW AWARDS(a) % of % of
Total Total
North America $ 323,452 33% $ 370,642 58%
Europe/Africa/Middle East 523,887 54% 85,796 14%
Asia Pacific 17,143 2% 162,654 25%
Central & South America 108,218 11% 21,572 3%
------- -------
Total $ 972,700 $ 640,664
======= =======
REVENUE % of % of
Total Total
North America $ 474,762 54% $ 359,551 53%
Europe/Africa/Middle East 300,556 35% 212,044 32%
Asia Pacific 72,411 8% 68,903 10%
Central & South America 25,812 3% 34,124 5%
------- -------
Total $ 873,541 $ 674,622
======= =======
INCOME (LOSS) FROM OPERATIONS % of % of
Revenue Revenue
North America $ 31,821 6.7% $ 20,182 5.6%
Europe/Africa/Middle East 2,284 0.8% 10,105 4.8%
Asia Pacific 5,701 7.9% 1,848 2.7%
Central & South America 374 1.4% 4,119 12.1%
------- -------
Total $ 40,180 4.6% $ 36,254 5.4%
======= =======
Twelve Months Ended
Dec. 31, Dec. 31,
2006 2005
NEW AWARDS(a) % of % of
Total Total
North America $2,753,121 62% $1,518,317 46%
Europe/Africa/Middle East 1,143,941 26% 1,196,567 37%
Asia Pacific 324,445 7% 426,265 13%
Central & South America 207,776 5% 138,296 4%
--------- ---------
Total $4,429,283 $3,279,445
========= =========
REVENUE % of % of
Total Total
North America $1,676,694 53% $1,359,878 60%
Europe/Africa/Middle East 1,101,813 35% 582,918 26%
Asia Pacific 234,764 8% 222,720 10%
Central & South America 112,036 4% 92,001 4%
--------- ---------
Total $3,125,307 $2,257,517
========= =========
INCOME (LOSS) FROM OPERATIONS % of % of
Revenue Revenue
North America $ 79,164 4.7% $ 43,799 3.2%
Europe/Africa/Middle East 46,079 4.2% (11,969) (2.1%)
Asia Pacific 16,219 6.9% 8,898 4.0%
Central & South America 4,177 3.7% 9,507 10.3%
--------- ---------
Total $ 145,639 4.7% $ 50,235 2.2%
========= =========
(a) New awards represent 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.
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CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Dec. 31, Dec. 31,
2006 2005
ASSETS
Current assets $1,346,388 $ 950,603
Property and equipment, net 194,644 137,718
Goodwill and other intangibles, net 255,550 257,991
Other non-current assets 38,428 31,507
--------- ---------
Total assets $1,835,010 $1,377,819
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $1,187,758 $ 758,643
Long-term debt -- 25,000
Other non-current liabilities 104,817 110,508
Shareholders' equity 542,435 483,668
--------- ---------
Total liabilities and
shareholders' equity $1,835,010 $1,377,819
========= =========
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CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
AND OTHER FINANCIAL DATA
(in thousands)
Twelve Months
Ended Dec. 31,
2006 2005
CASH FLOWS
Cash flows from operating activities $ 476,129 $ 164,999
Cash flows from investing activities (78,599) (26,350)
Cash flows from financing activities (112,071) (41,049)
------- -------
Increase in cash and
cash equivalents 285,459 97,600
Cash and cash equivalents,
beginning of the year 333,990 236,390
------- -------
Cash and cash equivalents,
end of the year $ 619,449 $ 333,990
======= =======
OTHER FINANCIAL DATA
Depreciation and amortization expense $ 28,026 $ 18,216
Capital expenditures $ 80,352 $ 36,869
Increase in receivables, net $(109,964) $(126,667)
Change in contracts in progress, net 364,676 155,458
Increase in non-current
contract retentions (6,891) (4,779)
Increase in accounts payable 114,303 79,003
------- -------
Change $ 362,124 $ 103,015
======= =======
CONTACT: CB&I
Media: Bruce Steimle, +1 832 513 1111
or
Analysts: Marty Spake, +1 832 513 1245