CB&I (NYSE: CBI) today reported net income of $47.3 million, or $0.47 per diluted share, for the second quarter of 2010. Revenue for the quarter was $916 million, up from $869 million in the first quarter of 2010.
New awards totaled $916 million for the quarter, including a new gas processing plant in California, an olefins technology license in China, a gas storage tank project in Abu Dhabi and a concept development award for an LNG liquefaction project in Russia. As of June 30, CB&I’s total backlog was $6.8 billion and cash and cash equivalents totaled $300 million.
During the quarter, CB&I repurchased approximately 2.2 million shares of common stock for $40.7 million. CB&I also recently completed a 4-year, $1.1 billion, committed and unsecured revolving credit facility. The amended credit facility provides liquidity for working capital, mergers and acquisitions, as well as letters of credit in support of project awards.
“It was a very good quarter with solid earnings and strong operating results across all sectors,” said Philip K. Asherman, President and CEO. “Based on the quality of our backlog and our continuing confidence in the global markets we serve, we are raising our 2010 full year earnings guidance to $1.75 to $1.90 per share.”
Earnings Conference Call
CB&I will host a webcast on July 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.comInvestor Relations/Investor Highlights.
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 16,000 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, catalysts and specialty equipment for petrochemical facilities, oil refineries and gas processing plants. For more information, visit www.CBI.com. If you would like to be added to CB&I’s news release email distribution list, visit www.cbi.com/news.
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, 2009, 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 | Six Months | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Revenue | $ | 916,044 | $ | 1,212,157 | $ | 1,785,368 | $ | 2,508,089 | ||||||||
| Cost of revenue | 795,742 | 1,079,286 | 1,542,785 | 2,231,061 | ||||||||||||
| Gross profit | 120,302 | 132,871 | 242,583 | 277,028 | ||||||||||||
| % of Revenue | 13.1 | % | 11.0 | % | 13.6 | % | 11.0 | % | ||||||||
| Selling and administrative expenses | 46,342 | 51,255 | 97,590 | 110,486 | ||||||||||||
| % of Revenue | 5.1 | % | 4.2 | % | 5.5 | % | 4.4 | % | ||||||||
| Intangibles amortization | 5,812 | 5,866 | 11,760 | 11,473 | ||||||||||||
| Other operating expense, net | 779 | 5,434 | 852 | 11,336 | ||||||||||||
| Equity earnings | (3,533 | ) | (11,998 | ) | (7,042 | ) | (18,924 | ) | ||||||||
| Income from operations | 70,902 | 82,314 | 139,423 | 162,657 | ||||||||||||
| % of Revenue | 7.7 | % | 6.8 | % | 7.8 | % | 6.5 | % | ||||||||
| Interest expense | (3,079 | ) | (5,557 | ) | (6,799 | ) | (11,103 | ) | ||||||||
| Interest income | 1,055 | 344 | 2,291 | 792 | ||||||||||||
| Income before taxes | 68,878 | 77,101 | 134,915 | 152,346 | ||||||||||||
| Income tax expense | (19,994 | ) | (32,061 | ) | (41,126 | ) | (57,241 | ) | ||||||||
| Net income | 48,884 | 45,040 | 93,789 | 95,105 | ||||||||||||
Less: Net income attributable to noncontrolling interests | (1,557 | ) | (1,616 | ) | (4,271 | ) | (2,869 | ) | ||||||||
| Net income attributable to CB&I | $ | 47,327 | $ | 43,424 | $ | 89,518 | $ | 92,236 | ||||||||
| Net income attributable to CB&I per share: | ||||||||||||||||
| Basic | $ | 0.48 | $ | 0.46 | $ | 0.91 | $ | 0.97 | ||||||||
| Diluted | $ | 0.47 | $ | 0.45 | $ | 0.89 | $ | 0.96 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 98,951 | 95,108 | 98,840 | 94,939 | ||||||||||||
| Diluted | 100,641 | 96,211 | 100,796 | 95,682 | ||||||||||||
| CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES SEGMENT INFORMATION (in thousands) | |||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
| June 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | ||||||||||||||||||||||
| % of | % of | % of | % of | ||||||||||||||||||||||
| NEW AWARDS* | Total | Total | Total | Total | |||||||||||||||||||||
| CB&I Steel Plate Structures | $ | 286,651 | 31 | % | $ | 209,054 | 49 | % | $ | 474,081 | 32 | % | $ | 530,329 | 51 | % | |||||||||
| CB&I Lummus | 546,027 | 60 | % | 152,779 | 35 | % | 819,737 | 56 | % | 381,936 | 37 | % | |||||||||||||
| Lummus Technology | 83,117 | 9 | % | 67,071 | 16 | % | 182,217 | 12 | % | 127,455 | 12 | % | |||||||||||||
| Total | $ | 915,795 | $ | 428,904 | $ | 1,476,035 | $ | 1,039,720 | |||||||||||||||||
| % of | % of | % of | % of | ||||||||||||||||||||||
| REVENUE | Total | Total | Total | Total | |||||||||||||||||||||
| CB&I Steel Plate Structures | $ | 360,261 | 39 | % | $ | 457,766 | 38 | % | $ | 695,169 | 39 | % | $ | 878,005 | 35 | % | |||||||||
| CB&I Lummus | 505,847 | 55 | % | 671,214 | 55 | % | 971,949 | 54 | % | 1,466,647 | 58 | % | |||||||||||||
| Lummus Technology | 49,936 | 6 | % | 83,177 | 7 | % | 118,250 | 7 | % | 163,437 | 7 | % | |||||||||||||
| Total | $ | 916,044 | $ | 1,212,157 | $ | 1,785,368 | $ | 2,508,089 | |||||||||||||||||
| % of | % of | % of | % of | ||||||||||||||||||||||
| INCOME FROM OPERATIONS | Revenue | Revenue | Revenue | Revenue | |||||||||||||||||||||
| CB&I Steel Plate Structures | $ | 32,545 | 9.0 | % | $ | 42,340 | 9.2 | % | $ | 64,638 | 9.3 | % | $ | 70,765 | 8.1 | % | |||||||||
| CB&I Lummus | 25,264 | 5.0 | % | 22,122 | 3.3 | % | 44,552 | 4.6 | % | 56,544 | 3.9 | % | |||||||||||||
| Lummus Technology | 13,093 | 26.2 | % | 17,852 | 21.5 | % | 30,233 | 25.6 | % | 35,348 | 21.6 | % | |||||||||||||
| Total | $ | 70,902 | 7.7 | % | $ | 82,314 | 6.8 | % | $ | 139,423 | 7.8 | % | $ | 162,657 | 6.5 | % | |||||||||
| * 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) | |||||||||
| June 30, | December 31, | ||||||||
| 2010 | 2009 | ||||||||
| ASSETS | |||||||||
| Current assets | $ | 1,044,922 | $ | 1,195,578 | |||||
| Equity investments | 124,699 | 132,258 | |||||||
| Property and equipment, net | 290,976 | 316,112 | |||||||
| Goodwill and other intangibles, net | 1,115,015 | 1,179,600 | |||||||
| Other non-current assets | 191,919 | 193,219 | |||||||
| Total assets | $ | 2,767,531 | $ | 3,016,767 | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
| Notes payable | $ | 679 | $ | 709 | |||||
| Current maturity of long-term debt | 40,000 | 40,000 | |||||||
| Other current liabilities | 1,377,887 | 1,639,166 | |||||||
| Long-term debt | 80,000 | 80,000 | |||||||
| Other non-current liabilities | 341,585 | 359,602 | |||||||
| Shareholders' equity | 927,380 | 897,290 | |||||||
| Total liabilities and shareholders' equity | $ | 2,767,531 | $ | 3,016,767 | |||||
| CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND OTHER FINANCIAL DATA (in thousands) | |||||||||
| Six Months Ended June 30, | |||||||||
| 2010 | 2009 | ||||||||
| CASH FLOWS | |||||||||
| Cash flows from operating activities | $ | 40,823 | $ | 50,078 | |||||
| Cash flows from investing activities | (5,723 | ) | (29,066 | ) | |||||
| Cash flows from financing activities | (40,362 | ) | 4,130 | ||||||
| Effect of exchange rate changes on cash | (20,282 | ) | 2,623 | ||||||
| (Decrease) increase in cash and cash equivalents | (25,544 | ) | 27,765 | ||||||
| Cash and cash equivalents, beginning of the year | 326,000 | 88,221 | |||||||
| Cash and cash equivalents, end of the period | $ | 300,456 | $ | 115,986 | |||||
| OTHER FINANCIAL DATA | |||||||||
| Decrease in receivables, net | $ | 75,273 | $ | 77,237 | |||||
| Change in contracts in progress, net | (56,664 | ) | (145,876 | ) | |||||
| Decrease (increase) in non-current contract retentions | 3,921 | (1,321 | ) | ||||||
| Decrease in accounts payable | (104,594 | ) | (45,821 | ) | |||||
| Change in contract capital | $ | (82,064 | ) | $ | (115,781 | ) | |||
| Depreciation and amortization expense | $ | 38,323 | $ | 39,056 | |||||
| Capital expenditures | $ | 9,250 | $ | 31,197 | |||||
| Backlog * | $ | 6,777,751 | $ | 4,179,709 | |||||
| * 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. | |||||||||
Media: Jan Sieving, +1 832 513 1111
or
Investors:Mark Coscio, +1 832 513 1200