2011 Revenue and Net Income up 25%, New Awards of $6.8 billion
CB&I (NYSE: CBI) today reported net income for the fourth quarter of $70.5 million, or $0.70 per diluted share, versus $63.2 million or $0.63 per diluted share in 2010. Revenue for the quarter was $1.3 billion, with new awards of $772.4 million.
For the full-year, net income was $255.0 million, or $2.55 per diluted share. CB&I's consolidated 2011 revenue was $4.6 billion, up 25% over 2010. Cash and cash equivalents as of December 31, 2011 were $671.8 million, versus $481.7 million as of December 31, 2010.
"I'm extremely proud of our employees for delivering another year of outstanding performance," said Philip K. Asherman, President and CEO. "Looking to the future, we expect to continue to execute our healthy backlog, leverage our unique business model to capture growth opportunities, and help our clients meet the growing global demand for energy infrastructure, which gives us strong confidence in the future of CB&I."
New Awards for 2011 totaled $6.8 billion, reflecting the company's ability to capitalize on its global end markets across each of its business sectors. Noteworthy 2011 awards included a $2.3 billion contract in Australia for the Gorgon project, an Oil Sands contract for Kearl in Canada, a Gas Processing award in the U.S. for Dominion, an LNG storage project in the Asia Pacific region, an Offshore award for Nexen in the North Sea, a Refinery heater award in Russia, as well as various strategic Petrochemical and Refining technology licensing awards.
CB&I declared an interim dividend on common stock of $0.05 per share, payable March 30, 2012 to shareholders of record on March 16, 2012. As has been the company's practice, it will continue to opportunistically capture value for shareholders through its share repurchase program.
Earnings Conference Call
CB&I will host a webcast on February 23 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, 2011, 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.
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| CHICAGO BRIDGE & IRON COMPANY N.V. | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
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| Three Months | Twelve Months | |||||||||||||||
| Ended December 31, | Ended December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
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| Revenue | $ | 1,255,222 | $ | 947,851 | $ | 4,550,542 | $ | 3,642,318 | ||||||||
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| Cost of revenue | 1,108,607 | 818,239 | 3,980,306 | 3,150,255 | ||||||||||||
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| Gross profit | 146,615 | 129,612 | 570,236 | 492,063 | ||||||||||||
| % of Revenue | 11.7 | % | 13.7 | % | 12.5 | % | 13.5 | % | ||||||||
| Selling and administrative expense | 49,661 | 44,258 | 205,550 | 185,213 | ||||||||||||
| % of Revenue | 4.0 | % | 4.7 | % | 4.5 | % | 5.1 | % | ||||||||
| Intangibles amortization | 7,229 | 6,098 | 26,302 | 23,690 | ||||||||||||
| Other operating expense (income), net | 304 | (780 | ) | 74 | (636 | ) | ||||||||||
| Equity earnings | (9,649 | ) | (5,735 | ) | (16,887 | ) | (19,464 | ) | ||||||||
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| Income from operations | 99,070 | 85,771 | 355,197 | 303,260 | ||||||||||||
| % of Revenue | 7.9 | % | 9.0 | % | 7.8 | % | 8.3 | % | ||||||||
| Interest expense | (3,330 | ) | (4,148 | ) | (11,030 | ) | (16,686 | ) | ||||||||
| Interest income | 2,300 | 1,392 | 7,796 | 4,955 | ||||||||||||
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| Income before taxes | 98,040 | 83,015 | 351,963 | 291,529 | ||||||||||||
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| Income tax expense | (27,512 | ) | (18,922 | ) | (96,765 | ) | (79,966 | ) | ||||||||
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| Net income | 70,528 | 64,093 | 255,198 | 211,563 | ||||||||||||
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| Less: Net income attributable to noncontrolling interests | Â | (60 | ) | Â | (896 | ) | Â | (166 | ) | Â | (7,004 | ) | ||||
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| Net income attributable to CB&I | $ | 70,468 | Â | $ | 63,197 | Â | $ | 255,032 | Â | $ | 204,559 | Â | ||||
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| Net income attributable to CB&I per share: | ||||||||||||||||
| Basic | $ | 0.72 | $ | 0.65 | $ | 2.60 | $ | 2.08 | ||||||||
| Diluted | $ | 0.70 | $ | 0.63 | $ | 2.55 | $ | 2.04 | ||||||||
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| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 97,343 | 97,863 | 98,022 | 98,300 | ||||||||||||
| Diluted | 100,008 | 100,498 | 100,205 | 100,459 | ||||||||||||
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| Cash dividends on shares: | ||||||||||||||||
| Amount | $ | 4,881 | $ | - | $ | 19,722 | $ | - | ||||||||
| Per Share | $ | 0.05 | $ | - | $ | 0.20 | $ | - | ||||||||
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| CHICAGO BRIDGE & IRON COMPANY N.V. | ||||||||||||||||||||||||
| SEGMENT INFORMATION | ||||||||||||||||||||||||
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| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||
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| % of | % of | % of | % of | |||||||||||||||||||||
| NEW AWARDS* | Total | Total | Total | Total | ||||||||||||||||||||
| Steel Plate Structures | $ | 281,822 | 36 | % | $ | 364,799 | 37 | % | $ | 4,079,599 | 60 | % | $ | 1,303,930 | 39 | % | ||||||||
| Project Engineering and Construction** | 337,135 | 44 | % | 476,961 | 48 | % | 2,190,272 | 32 | % | 1,634,683 | 49 | % | ||||||||||||
| Lummus Technology | Â | 153,450 | 20 | % | Â | 150,200 | 15 | % | Â | 537,844 | 8 | % | Â | 422,514 | 12 | % | ||||||||
| Total | $ | 772,407 | $ | 991,960 | $ | 6,807,715 | $ | 3,361,127 | ||||||||||||||||
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| % of | % of | % of | % of | |||||||||||||||||||||
| REVENUE | Total | Total | Total | Total | ||||||||||||||||||||
| Steel Plate Structures | $ | 475,739 | 38 | % | $ | 398,314 | 42 | % | $ | 1,812,180 | 40 | % | $ | 1,442,145 | 40 | % | ||||||||
| Project Engineering and Construction** | 653,561 | 52 | % | 461,826 | 49 | % | 2,289,788 | 50 | % | 1,904,850 | 52 | % | ||||||||||||
| Lummus Technology | Â | 125,922 | 10 | % | Â | 87,711 | 9 | % | Â | 448,574 | 10 | % | Â | 295,323 | 8 | % | ||||||||
| Total | $ | 1,255,222 | $ | 947,851 | $ | 4,550,542 | $ | 3,642,318 | ||||||||||||||||
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| % of | % of | % of | % of | |||||||||||||||||||||
| INCOME FROM OPERATIONS | Revenue | Revenue | Revenue | Revenue | ||||||||||||||||||||
| Steel Plate Structures | $ | 39,586 | 8.3 | % | $ | 37,890 | 9.5 | % | $ | 167,283 | 9.2 | % | $ | 134,430 | 9.3 | % | ||||||||
| Project Engineering and Construction** | 29,484 | 4.5 | % | 18,342 | 4.0 | % | 91,576 | 4.0 | % | 82,574 | 4.3 | % | ||||||||||||
| Lummus Technology | Â | 30,000 | 23.8 | % | Â | 29,539 | 33.7 | % | Â | 96,338 | 21.5 | % | Â | 86,256 | 29.2 | % | ||||||||
| Total | $ | 99,070 | 7.9 | % | $ | 85,771 | 9.0 | % | $ | 355,197 | 7.8 | % | $ | 303,260 | 8.3 | % | ||||||||
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| * New awards represents the value of new project commitments received by the Company during a given period. | ||||||||||||||||||||||||
| ** Project Engineering and Construction (formerly CB&I Lummus) | ||||||||||||||||||||||||
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| CHICAGO BRIDGE & IRON COMPANY N.V. | |||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
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| December 31, | |||||||||||
| 2011 | 2010 | ||||||||||
| ASSETS | |||||||||||
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| Current assets | $ | 1,661,321 | $ | 1,206,648 | |||||||
| Equity investments | 95,687 | 92,400 | |||||||||
| Property and equipment, net | 262,003 | 290,206 | |||||||||
| Goodwill and other intangibles, net | 1,114,512 | 1,154,256 | |||||||||
| Other non-current assets | 158,460 | 166,024 | |||||||||
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| Total assets | $ | 3,291,983 | Â | $ | 2,909,534 | Â | |||||
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| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
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| Notes payable | $ | - | $ | 334 | |||||||
| Current maturity of long-term debt | 40,000 | 40,000 | |||||||||
| Other current liabilities | 1,703,424 | 1,400,299 | |||||||||
| Long-term debt | - | 40,000 | |||||||||
| Other non-current liabilities | 352,129 | 345,056 | |||||||||
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| Shareholders' equity | 1,196,430 | 1,083,845 | |||||||||
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| Total liabilities and shareholders' equity | $ | 3,291,983 | Â | $ | 2,909,534 | Â | |||||
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| CHICAGO BRIDGE & IRON COMPANY N.V. | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND OTHER FINANCIAL DATA | |||||||||||
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| Twelve Months | |||||||||||
| Ended December 31, | |||||||||||
| 2011 | 2010 | ||||||||||
| CASH FLOWS | |||||||||||
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| Cash flows from operating activities | $ | 413,155 | $ | 288,406 | |||||||
| Cash flows from investing activities | (32,753 | ) | (58,376 | ) | |||||||
| Cash flows from financing activities | (178,795 | ) | (86,343 | ) | |||||||
| Effect of exchange rate changes on cash and cash equivalents | (11,534 | ) | 12,051 | ||||||||
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| Increase in cash and cash equivalents | 190,073 | 155,738 | |||||||||
| Cash and cash equivalents, beginning of the year | Â | 481,738 | Â | Â | 326,000 | Â | |||||
| Cash and cash equivalents, end of the year | $ | 671,811 | Â | $ | 481,738 | Â | |||||
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| OTHER FINANCIAL DATA | |||||||||||
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| (Increase) decrease in receivables, net | $ | (130,192 | ) | $ | 127,349 | ||||||
| Change in contracts in progress, net | 16,419 | (37,017 | ) | ||||||||
| Increase (decrease) in accounts payable | Â | 159,524 | Â | Â | (112,558 | ) | |||||
| Change in contract capital | $ | 45,751 | Â | $ | (22,226 | ) | |||||
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| Depreciation and amortization | $ | 70,184 | $ | 72,885 | |||||||
| Capital expenditures | $ | 40,945 | $ | 24,089 | |||||||
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| Backlog * | $ | 8,968,206 | $ | 6,906,633 | |||||||
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* 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. | |||||||||||
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Contacts:
CB&I
Christi Thoms, +1 832 513 1200
www.CBI.com
