CB&I Reports First Quarter Results

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Strong Cash Flow Highlights the Quarter

THE WOODLANDS, Texas, April 20, 2016 /PRNewswire/ -- CB&I CBI today announced first quarter 2016 net income of $107 million, or $1.01 per diluted share, compared to $132 million, or $1.21 per diluted share in the first quarter of 2015. Diluted earnings per share increased 5 percent in the first quarter of 2016 as compared to pro forma results for the comparable quarter in 2015, which exclude net income from the former nuclear construction business of $28 million, or $0.25 per diluted share. First quarter 2016 revenue of $2.7 billion compares to $3.1 billion in the first quarter of 2015, which included $488 million in revenue from the former nuclear business. On a pro forma basis, revenue increased slightly compared to 2015 first quarter results. New awards for the first quarter were $1.2 billion with a backlog of $21.2 billion.

Net cash provided by operating activities during the first quarter was $142 million, representing an increase of $432 million compared to the first quarter in 2015. Net operating cash flows combined with advance payments associated with equity-method joint ventures, which are reflected in cash flows from financing activities, totaled approximately $257 million during the first quarter 2016. At quarter end, cash and cash equivalents were $641 million, an increase of $294 million from the quarter-end balance for the first quarter 2015 and over $90 million from the year-end balance for 2015. In addition, during the quarter, total debt was reduced by $120 million from the year-end balance for 2015.

"Our cash generation in the first quarter reflects our ability to deliver on our capital allocation priorities of reducing leverage, returning capital to shareholders and investing in our business. Despite market uncertainty slowing the pace of new awards in the quarter, we maintained a healthy backlog and solid margins," said Philip K. Asherman, CB&I's President and Chief Executive Officer. "Earnings lagged this quarter due to underperformance from our Fabrication Services group and a continuing softness in the technology licensing market worldwide. However, as previously communicated, we expect our new awards, revenue and earnings to progressively improve during the year, and we remain on track to perform within our guided ranges for 2016."

New awards for the first quarter include scope increases for an LNG mechanical erection and instrumentation project in Australia, refinery maintenance work in the United States and Canada, crude oil storage in the Middle East and Canada, petrochemical licensing in the Asia Pacific region, catalyst awards in the Middle East, environmental remediation work for the U.S. Navy, and a variety of technology and fabrication awards globally.

The tables below include reconciliations of GAAP financial results to non-GAAP financial results for 2015, which exclude results of the former nuclear construction business and the impact of the sale.

Earnings Conference Call
CB&I will host a webcast on April 20 at 4:00 p.m. Central time (5:00 p.m. Eastern time) to discuss financial and operating results and answer questions from investors. The webcast will be available on the Investor Relations page of www.CBI.com.

About CB&I
CB&I CBI is a leading provider of technology and infrastructure for the energy industry. With over 125 years of experience and the expertise of more than 40,000 employees, CB&I provides reliable solutions to our customers around the world while maintaining a relentless focus on safety and an uncompromising standard of quality. For more information, visit www.CBI.com.

Important Information For Investors And Shareholders

Cautionary Statement Regarding Forward-Looking Statements

This press 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, 2015, 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.

Segment Information

(in thousands)












Three Months Ended March 31,



2016


2015










NEW AWARDS (1)




% of




% of




Total




Total

Engineering & Construction


$

323,418



27%


$

1,209,407



40%

Fabrication Services


373,689



31%


927,374



31%

Technology


83,620



7%


77,022



2%

Capital Services


416,672



35%


817,380



27%

Total


$

1,197,399





$

3,031,183













REVENUE




% of




% of




Total




Total

Engineering & Construction


$

1,516,328



57%


$

1,818,586



58%

Fabrication Services


517,576



19%


637,809



21%

Technology


64,562



3%


99,361



3%

Capital Services


569,267



21%


569,989



18%

Total


$

2,667,733





$

3,125,745













INCOME FROM OPERATIONS




% of




% of




Revenue




Revenue

Engineering & Construction


$

111,920



7.4%


$

136,418



7.5%

Fabrication Services


38,249



7.4%


52,399



8.2%

Technology


26,281



40.7%


48,024



48.3%

Capital Services


11,490



2.0%


9,957



1.7%

Total


$

187,940



7.0%


$

246,798



7.9%










(1)   New awards represent the value of new project commitments received by the Company during a given period, as well as scope growth on existing commitments.

 

Chicago Bridge & Iron Company N.V.

Consolidated Statements of Operations

(in thousands, except per share data)








Three Months



Ended March 31,



2016


2015






Revenue


$

2,667,733



$

3,125,745


Cost of revenue


2,380,128



2,755,574


Gross profit


287,605



370,171


% of Revenue


10.8

%


11.8

%






Selling and administrative expense


92,597



109,101


% of Revenue


3.5

%


3.5

%






Intangibles amortization


11,277



15,652


Equity earnings


(3,990)



(4,202)


Other operating (income) expense, net


(219)



2,822


Income from operations


187,940



246,798


% of Revenue


7.0

%


7.9

%






Interest expense


(25,898)



(22,286)


Interest income


2,489



2,048


Income before taxes


164,531



226,560







Income tax expense


(44,569)



(69,811)


Net income


119,962



156,749







Less: Net income attributable to noncontrolling interests


(13,037)



(24,521)


Net income attributable to CB&I


$

106,925



$

132,228







Net income attributable to CB&I per share:





Basic


$

1.02



$

1.22


Diluted


$

1.01



$

1.21







Weighted average shares outstanding:





Basic


104,803



108,197


Diluted


105,785



109,261







Cash dividends on shares:





Amount


$

7,359



$

7,597


Per share


$

0.07



$

0.07






 

Chicago Bridge & Iron Company N.V.

Condensed Consolidated Balance Sheets

(in thousands)








March 31,


December 31,



2016


2015

ASSETS










Current assets


$

3,688,030



$

3,367,299


Equity investments


137,895



136,845


Property and equipment, net


593,064



604,043


Goodwill and other intangibles, net


4,119,851



4,122,455


Other non-current assets


941,863



961,418


Total assets


$

9,480,703



$

9,192,060







LIABILITIES AND SHAREHOLDERS' EQUITY










Current maturities of long-term debt and other borrowings, net


$

980,671



$

800,871


Other current liabilities


4,333,739



4,056,077


Long-term debt, net


1,492,365



1,791,832


Other non-current liabilities


388,594



379,690







Shareholders' equity


2,285,334



2,163,590


Total liabilities and shareholders' equity


$

9,480,703



$

9,192,060




Condensed Consolidated Statements of Cash Flows and Other Financial Data

(in thousands)






Three Months



Ended March 31,



2016


2015

CASH FLOWS










Cash flows from operating activities


$

141,850



$

(289,871)


Cash flows from investing activities


(47,499)



(56,879)


Cash flows from financing activities


(11,392)



403,409


Effect of exchange rate changes on cash and cash equivalents


8,305



(60,965)


Increase (decrease) in cash and cash equivalents


91,264



(4,306)


Cash and cash equivalents, beginning of the year


550,221



351,323


Cash and cash equivalents, end of the period


$

641,485



$

347,017







OTHER FINANCIAL DATA










Increase in receivables, net


$

(57,207)



$

(41,175)


Change in contracts in progress, net


58,361



(330,345)


Decrease in inventory


27,477



2,803


Decrease in accounts payable


(87,753)



(230,152)


Change in contract capital


$

(59,122)



$

(598,869)







Depreciation and amortization


$

31,801



$

44,309


Capital expenditures


$

11,180



$

8,978









March 31, 2016


December 31, 2015

Backlog (1)


$

21,163,059



$

22,643,939







(1)     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.

 


Chicago Bridge & Iron Company N.V.

Non-GAAP Supplemental Pro Forma Financial Data

(amounts adjusted to exclude the results of our nuclear operations and non-cash charges related to the disposition of our nuclear operations)

(in thousands, except per share data)












Three Months Ended March 31, 2015 (1)



As Reported


Disposition Charges


Removal of Divested Business


Excluding Divested Business










Revenue


$

3,125,745



$



$

(488,259)



$

2,637,486


Income from operations


$

246,798



$



$

(45,600)



$

201,198


Net income attributable to CB&I


$

132,228



$



$

(27,816)



$

104,412


Net income attributable to CB&I per share (diluted) (2)


$

1.21



$



$

(0.25)



$

0.96


New Awards


$

3,031,183



$



$

(5,206)



$

3,025,977


Backlog


$

29,934,182



$



$

(8,193,792)



$

21,740,390


Operating Cash Flows


$

(289,871)



$



$

303,600



$

13,729





Three Months Ended June 30, 2015 (1)



As Reported


Disposition Charges


Removal of Divested Business


Excluding Divested Business










Revenue


$

3,207,113



$



$

(564,327)



$

2,642,786


Income from operations


$

284,107



$



$

(71,800)



$

212,307


Net income attributable to CB&I


$

169,515



$



$

(43,798)



$

125,717


Net income attributable to CB&I per share (diluted) (2)


$

1.55



$



$

(0.40)



$

1.15


New Awards


$

2,844,516



$



$

(574,719)



$

2,269,797


Backlog


$

29,432,933



$



$

(8,204,184)



$

21,228,749


Operating Cash Flows


$

95,167



$



$

271,200



$

366,367





Three Months Ended September 30, 2015 (1)



As Reported


Disposition Charges


Removal of Divested Business


Excluding Divested Business










Revenue


$

3,321,682



$



$

(502,922)



$

2,818,760


(Loss) income from operations


$

(889,962)



$

1,160,480



$

(45,715)



$

224,803


Net (loss) income attributable to CB&I


$

(740,433)



$

904,230



$

(27,886)



$

135,911


Net (loss) income attributable to CB&I per share (diluted)(3)


$

(7.02)



$

8.56



$

(0.26)



$

1.28


New Awards


$

4,000,302



$



$

(84,289)



$

3,916,013


Backlog


$

29,928,616



$



$

(7,785,551)



$

22,143,065


Operating Cash Flows


$

21,282



$



$

305,685



$

326,967





Three Months Ended December 31, 2015 (1)



As Reported


Disposition Charges


Removal of Divested Business


Excluding Divested Business










Revenue


$

3,274,964



$



$

(505,659)



$

2,769,305


(Loss) income from operations


$

(66,060)



$

345,371



$

(52,035)



$

227,276


Net (loss) income attributable to CB&I


$

(65,725)



$

230,910



$

(31,741)



$

133,444


Net (loss) income attributable to CB&I per share (diluted)(3)


$

(0.63)



$

2.19



$

(0.30)



$

1.26


New Awards


$

3,262,497



$



$

(8,151)



$

3,254,346


Backlog


$

22,643,939



$



$



$

22,643,939


Operating Cash Flows


$

117,208



$



$

252,865



$

370,073




Chicago Bridge & Iron Company N.V.

Non-GAAP Supplemental Pro Forma Financial Data

(amounts adjusted to exclude the results of our nuclear operations and non-cash charges related to the disposition of our nuclear operations)

(in thousands, except per share data)






Twelve Months Ended December 31, 2015 (1)



As Reported


Disposition Charges


Removal of Divested Business


Excluding Divested Business










Revenue


$

12,929,504



$



$

(2,061,167)



$

10,868,337


(Loss) income from operations


$

(425,117)



$

1,505,851



$

(215,150)



$

865,584


Net (loss) income attributable to CB&I


$

(504,415)



$

1,135,140



$

(131,241)



$

499,484


Net (loss) income attributable to CB&I per share (diluted)(3)


$

(4.72)



$

10.58



$

(1.22)



$

4.64


New Awards


$

13,138,498



$



$

(672,365)



$

12,466,133


Backlog


$

22,643,939



$



$



$

22,643,939


Operating Cash Flows


$

(56,214)



$



$

1,133,350



$

1,077,136




(1) 

The summary unaudited pro forma financial information presented in the tables above is for illustrative purposes only and is based on assumptions and estimates considered appropriate by CB&I management; however, it is not necessarily indicative of what CB&I's consolidated financial position or results of operations actually would have been assuming the transaction was completed on January 1, 2015, and does not purport to represent CB&I's consolidated financial position or results of operations for future periods. The above should be read together with the historical financial statements, including the related notes thereto, included in CB&I's Annual Report on Form 10-K for the year ended December 31, 2015, and its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2015, June 30, 2015, and September 30, 2015.













(2)  

The unadjusted and adjusted per share amounts for the three months ended March 31, 2015, and June 30, 2015, are based upon diluted weighted average shares of 109,261 and 109,533, respectively.













(3)  

The unadjusted per share amounts for the three months ended September 30, 2015, and December 31, 2015, and twelve months ended December 31, 2015, are based upon diluted weighted average shares that are equivalent to our basic weighted average shares of 105,454, 104,763 and 106,766, respectively, due to the net loss for the periods, and the adjusted per share amounts are based upon diluted weighted average shares of 106,322,105,926 and 107,719, respectively.













 


Chicago Bridge & Iron Company N.V.

Non-GAAP Supplemental Pro Forma Segment Information

(amounts adjusted to exclude the results of our nuclear operations and non-cash charges related to the disposition of our nuclear operations)

(in thousands)
























Three Months Ended


Twelve Months Ended



March 31, 2015 (1)


June 30, 2015 (1)


September 30, 2015 (1)


December 31, 2015 (1)


December 31, 2015 (1)






















NEW AWARDS




% of




% of




% of




% of




% of




Total




Total




Total




Total




Total

Engineering & Construction


$

1,204,201



40%


$

731,232



32%


$

2,323,546



60%


$

1,778,520



55%


$

6,037,499



48%

Fabrication Services


927,374



31%


844,715



37%


840,658



21%


493,816



15%


3,106,563



25%

Technology


77,022



2%


81,087



4%


97,539



2%


321,892



10%


577,540



5%

Capital Services


817,380



27%


612,763



27%


654,270



17%


660,118



20%


2,744,531



22%

Total


$

3,025,977





$

2,269,797





$

3,916,013





$

3,254,346





$

12,466,133

























REVENUE




% of




% of




% of




% of




% of




Total




Total




Total




Total




Total

Engineering & Construction


$

1,330,327



50%


$

1,351,795



51%


$

1,443,504



51%


$

1,510,891



55%


$

5,636,517



52%

Fabrication Services


637,809



24%


611,330



23%


640,201



23%


553,350



20%


2,442,690



22%

Technology


99,361



4%


92,975



4%


118,269



4%


88,494



3%


399,099



4%

Capital Services


569,989



22%


586,686



22%


616,786



22%


616,570



22%


2,390,031



22%

Total


$

2,637,486





$

2,642,786





$

2,818,760





$

2,769,305





$

10,868,337

























INCOME FROM OPERATIONS




% of




% of




% of




% of




% of




Revenue




Revenue




Revenue




Revenue




Revenue

Engineering & Construction


$

90,818



6.8%


$

104,667



7.7%


$

107,411



7.4%


$

112,484



7.4%


$

415,380



7.4%

Fabrication Services


52,399



8.2%


55,937



9.2%


61,408



9.6%


55,523



10.0%


225,267



9.2%

Technology


48,024



48.3%


36,741



39.5%


31,911



27.0%


34,201



38.6%


150,877



37.8%

Capital Services


9,957



1.7%


14,962



2.6%


24,073



3.9%


25,068



4.1%


74,060



3.1%

Total


$

201,198



7.6%


$

212,307



8.0%


$

224,803



8.0%


$

227,276



8.2%


$

865,584



8.0%



(1)  

The summary unaudited pro forma financial information reflects the removal of the results of our nuclear power construction business sold on December 31, 2015, and reflects the removal of the related disposition charges incurred as a result of the sale, as quantified below. The information presented in the tables above is for illustrative purposes only. The exclusion of our nuclear power construction business and the $1,160,480 and $345,371 of charges related to the disposition of our nuclear operations for the three months ended September 30, 2015, and December 31, 2015, respectively, are non-GAAP financial measures, which we believe provides users a better indication of our operating performance. See "Reconciliation of Non-GAAP Supplemental Pro Forma Segment Information to GAAP Information" table.
























































 

Chicago Bridge & Iron Company N.V.


Reconciliation of Non-GAAP Supplemental Pro Forma Segment Information to GAAP Information


(in thousands)
























Three Months Ended


Twelve Months Ended




March 31, 2015


June 30, 2015


September 30, 2015


December 31, 2015


December 31, 2015

NEW AWARDS
































Engineering & Construction

















Excluding Nuclear Operations


$

1,204,201




$

731,232




$

2,323,546




$

1,778,520




$

6,037,499




Nuclear Operations


5,206




574,719




84,289




8,151




672,365




Total



$

1,209,407




$

1,305,951




$

2,407,835




$

1,786,671




$

6,709,864






















CB&I


















Excluding Nuclear Operations


$

3,025,977




$

2,269,797




$

3,916,013




$

3,254,346




$

12,466,133




Nuclear Operations


5,206




574,719




84,289




8,151




672,365




Total



$

3,031,183




$

2,844,516




$

4,000,302




$

3,262,497




$

13,138,498






















REVENUE

































Engineering & Construction

















Excluding Nuclear Operations


$

1,330,327




$

1,351,795




$

1,443,504




$

1,510,891




$

5,636,517




Nuclear Operations


488,259




564,327




502,922




505,659




2,061,167




Total



$

1,818,586




$

1,916,122




$

1,946,426




$

2,016,550




$

7,697,684






















CB&I


















Excluding Nuclear Operations


$

2,637,486




$

2,642,786




$

2,818,760




$

2,769,305




$

10,868,337




Nuclear Operations


488,259




564,327




502,922




505,659




2,061,167




Total



$

3,125,745




$

3,207,113




$

3,321,682




$

3,274,964




$

12,929,504






















INCOME (LOSS) FROM OPERATIONS




















% of

Revenue



% of

Revenue



% of

Revenue



% of

Revenue



% of

Revenue

Engineering & Construction

















Excluding Nuclear Operations


$

90,818


6.8%


$

104,667


7.7%


$

107,411


7.4%


$

112,484


7.4%


$

415,380


7.4%


Nuclear Operations


45,600




71,800




(1,114,765)




(293,336)




(1,290,701)




Total



$

136,418


7.5%


$

176,467


9.2%


$

(1,007,354)


(51.8)%


$

(180,852)


(9.0)%


$

(875,321)


(11.4)%




















CB&I


















Excluding Nuclear Operations


$

201,198


7.6%


$

212,307


8.0%


$

224,803


8.0%


$

227,276


8.2%


$

865,584


8.0%


Nuclear Operations


45,600




71,800




(1,114,765)




(293,336)




(1,290,701)




Total



$

246,798


7.9%


$

284,107


8.9%


$

(889,962)


(26.8)%


$

(66,060)


(2.0)%


$

(425,117)


(3.3)%


 

Investors: Scott Lamb, +1 832 513 1068, Scott.Lamb@CBI.com
Media: Gentry Brann, +1 832 513 1031, Gentry.Brann@CBI.com

Logo - http://photos.prnewswire.com/prnh/20130430/DA04155LOGO

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cbi-reports-first-quarter-results-300254920.html

SOURCE CB&I

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