CB&I (NYSE: CBI) today reported net income of $40.8 million, or $0.42 per diluted share, for the third quarter of 2009, compared with $8.6 million, or $0.09 per diluted share, in the third quarter of 2008. Revenue for the quarter was $1.0 billion compared with third quarter 2008 revenue of $1.6 billion.
New awards for the third quarter totaled $1.6 billion, including CB&I’s $550 million Gorgon LNG contract in Australia and the $530 million GASCO award in Abu Dhabi.
Cash and cash equivalents increased to $212.0 million as of September 30, up from $88.2 million at year-end 2008.
"We are pleased with the third quarter results and the diverse number of new awards year to date, reaffirming our intent to capitalize on the major projects we have been pursuing in each business sector," said Philip K. Asherman, President and CEO. "We are very confident in our ability to convert major prospects into new backlog in the fourth quarter of 2009 and in 2010, while sustaining the margins in the end markets we serve."
CB&I will host a webcast, including a slide presentation, on October 27 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.
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 17,000 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 and catalysts 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, 2008, 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 | Nine Months | |||||||||||||||||
| Ended September 30, | Ended September 30, | |||||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||||
| Revenue | $ | 1,010,401 | $ | 1,563,709 | $ | 3,518,490 | $ | 4,431,594 | ||||||||||
| Cost of revenue | 892,866 | 1,462,984 | 3,123,927 | 4,362,820 | ||||||||||||||
| Gross profit | 117,535 | 100,725 | 394,563 | 68,774 | ||||||||||||||
| % of Revenue | 11.6 | % | 6.4 | % | 11.2 | % | 1.6 | % | ||||||||||
| Selling and administrative expenses | 48,292 | 54,854 | 158,778 | 170,964 | ||||||||||||||
| % of Revenue | 4.8 | % | 3.5 | % | 4.5 | % | 3.9 | % | ||||||||||
| Intangibles amortization | 6,080 | 5,894 | 17,553 | 17,679 | ||||||||||||||
| Other operating (income) expense, net | (1,461 | ) | 105 | 9,875 | 44 | |||||||||||||
| Equity earnings | (9,852 | ) | (11,950 | ) | (28,776 | ) | (34,233 | ) | ||||||||||
| Income (loss) from operations | 74,476 | 51,822 | 237,133 | (85,680 | ) | |||||||||||||
| % of Revenue | 7.4 | % | 3.3 | % | 6.7 | % | -1.9 | % | ||||||||||
| Interest expense | (4,916 | ) | (5,388 | ) | (16,019 | ) | (14,529 | ) | ||||||||||
| Interest income | 398 | 1,744 | 1,190 | 7,177 | ||||||||||||||
| Income (loss) before taxes | 69,958 | 48,178 | 222,304 | (93,032 | ) | |||||||||||||
| Income tax (expense) benefit | (28,070 | ) | (37,825 | ) | (85,311 | ) | 8,588 | |||||||||||
| Net income (loss) | 41,888 | 10,353 | 136,993 | (84,444 | ) | |||||||||||||
| Less: Net income attributable to noncontrolling interests | (1,065 | ) | (1,799 | ) | (3,934 | ) | (5,283 | ) | ||||||||||
| Net income (loss) attributable to CB&I | $ | 40,823 | $ | 8,554 | $ | 133,059 | $ | (89,727 | ) | |||||||||
| Net income (loss) attributable to CB&I per share: | ||||||||||||||||||
| Basic | $ | 0.43 | $ | 0.09 | $ | 1.40 | $ | (0.94 | ) | |||||||||
| Diluted | $ | 0.42 | $ | 0.09 | $ | 1.38 | $ | (0.94 | ) | |||||||||
| Weighted average shares outstanding: | ||||||||||||||||||
| Basic | 95,727 | 95,341 | 95,205 | 95,754 | ||||||||||||||
| Diluted | 97,489 | 96,086 | 96,318 | 95,754 | ||||||||||||||
| CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES | |||||||||||||||||||||||||||
| SEGMENT INFORMATION | |||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
| September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||
| 2009 | 2008 | 2009 | 2008 | ||||||||||||||||||||||||
| % of | % of | % of | % of | ||||||||||||||||||||||||
| NEW AWARDS* | Total | Total | Total | Total | |||||||||||||||||||||||
| CB&I Steel Plate Structures | $ | 1,433,383 | 87 | % | $ | 338,427 | 48 | % | $ | 1,963,712 | 73 | % | $ | 1,803,860 | 56 | % | |||||||||||
| CB&I Lummus | 109,678 | 7 | % | 220,335 | 31 | % | 491,614 | 18 | % | 936,274 | 29 | % | |||||||||||||||
| Lummus Technology | 97,320 | 6 | % | 144,918 | 21 | % | 224,775 | 9 | % | 476,766 | 15 | % | |||||||||||||||
| Total | $ | 1,640,381 | $ | 703,680 | $ | 2,680,101 | $ | 3,216,900 | |||||||||||||||||||
| % of | % of | % of | % of | ||||||||||||||||||||||||
| REVENUE | Total | Total | Total | Total | |||||||||||||||||||||||
| CB&I Steel Plate Structures | $ | 383,453 | 38 | % | $ | 500,489 | 32 | % | $ | 1,261,458 | 36 | % | $ | 1,460,475 | 33 | % | |||||||||||
| CB&I Lummus | 528,347 | 52 | % | 952,669 | 61 | % | 1,994,994 | 57 | % | 2,634,985 | 59 | % | |||||||||||||||
| Lummus Technology | 98,601 | 10 | % | 110,551 | 7 | % | 262,038 | 7 | % | 336,134 | 8 | % | |||||||||||||||
| Total | $ | 1,010,401 | $ | 1,563,709 | $ | 3,518,490 | $ | 4,431,594 | |||||||||||||||||||
| % of | % of | % of | % of | ||||||||||||||||||||||||
| INCOME (LOSS) FROM OPERATIONS | Revenue | Revenue | Revenue | Revenue | |||||||||||||||||||||||
| CB&I Steel Plate Structures | $ | 34,284 | 8.9 | % | $ | 54,108 | 10.8 | % | $ | 105,049 | 8.3 | % | $ | 157,762 | 10.8 | % | |||||||||||
| CB&I Lummus | 18,551 | 3.5 | % | (29,623 | ) | (3.1 | %) | 75,095 | 3.8 | % | (326,300 | ) | (12.4 | %) | |||||||||||||
| Lummus Technology | 21,641 | 21.9 | % | 27,337 | 24.7 | % | 56,989 | 21.7 | % | 82,858 | 24.7 | % | |||||||||||||||
| Total | $ | 74,476 | 7.4 | % | $ | 51,822 | 3.3 | % | $ | 237,133 | 6.7 | % | $ | (85,680 | ) | (1.9 | %) | ||||||||||
| * 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) | ||||||||
| September 30, | December 31, | |||||||
| 2009 | 2008 | |||||||
| ASSETS | ||||||||
| Current assets | $ | 1,188,900 | $ | 1,191,115 | ||||
| Equity investments | 132,084 | 130,031 | ||||||
| Property and equipment, net | 329,191 | 336,093 | ||||||
| Goodwill and other intangibles, net | 1,186,190 | 1,198,674 | ||||||
| Other non-current assets | 144,123 | 144,805 | ||||||
| Total assets | $ | 2,980,488 | $ | 3,000,718 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Revolver borrowings and notes payable | $ | 2,326 | $ | 523 | ||||
| Current maturity of long-term debt | 40,000 | 40,000 | ||||||
| Other current liabilities | 1,658,948 | 1,947,602 | ||||||
| Long-term debt | 120,000 | 120,000 | ||||||
| Other non-current liabilities | 348,579 | 318,740 | ||||||
Shareholders' equity | 810,635 | 573,853 | ||||||
Total liabilities and shareholders' equity | $ | 2,980,488 | $ | 3,000,718 | ||||
| CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND OTHER FINANCIAL DATA | ||||||||
| (in thousands) | ||||||||
| Nine Months | ||||||||
| Ended September 30, | ||||||||
| 2009 | 2008 | |||||||
| CASH FLOWS | ||||||||
| Cash flows from operating activities | $ | 107,845 | $ | 94,345 | ||||
| Cash flows from investing activities | (16,877 | ) | (80,693 | ) | ||||
| Cash flows from financing activities | 32,844 | (77,163 | ) | |||||
| Increase (decrease) in cash and cash equivalents | 123,812 | (63,511 | ) | |||||
| Cash and cash equivalents, beginning of the year | 88,221 | 305,877 | ||||||
| Cash and cash equivalents, end of the period | $ | 212,033 | $ | 242,366 | ||||
| OTHER FINANCIAL DATA | ||||||||
| Decrease in receivables, net | $ | 64,838 | $ | 66,867 | ||||
| Change in contracts in progress, net | (51,173 | ) | 45,085 | |||||
| Increase in non-current contract retentions | (3,438 | ) | (15 | ) | ||||
| (Decrease) increase in accounts payable | (160,403 | ) | 93,019 | |||||
| Change in contract capital | $ | (150,176 | ) | $ | 204,956 | |||
| Depreciation and amortization expense | $ | 59,941 | $ | 58,042 | ||||
| Capital expenditures | $ | 36,133 | $ | 82,057 | ||||
| Backlog * | $ | 4,866,422 | $ | 6,199,040 | ||||
| * 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:
Media: Jan Sieving, +1-832-513-1111
or
Analysts:Mark Coscio, +1-832-513-1200