July 27, 2016 - 4:15 PM EDT
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CB&I Reports Second-Quarter 2016 Financial Results

86% Increase in Net Cash from Operating Activities Versus Year-Ago Quarter

THE WOODLANDS, Texas, July 27, 2016 /PRNewswire/ -- CB&I (NYSE: CBI) today reported net income of $123.8 million, or $1.17 per diluted share, for the second quarter of 2016, as compared to $169.5 million, or $1.55 per diluted share for the second quarter of 2015. On an adjusted basis, net income for the second quarter of 2015 was $125.7 million, or $1.15 per diluted share.

Revenues for the second quarter of 2016 were $2.7 billion, as compared to $3.2 billion in the second quarter of 2015, or $2.6 billion on an adjusted basis.

Net cash provided by operating activities during the second quarter of 2016 increased by 86 percent, to $177 million, as compared to $95 million of net cash provided by operating activities in the second quarter of 2015.

At the end of the second quarter of 2016, the company's total debt was $2.3 billion, down 10 percent from the end of 2015.

New awards for the second quarter of 2016 totaled $1.8 billion, as compared to $2.8 billion for the second quarter of 2015, or $2.3 billion on an adjusted basis. The company's backlog at the end of the second quarter of 2016 was $19.6 billion.

"Our sound performance for the second quarter was highlighted by impressive cash flow, solid earnings, reduced debt and continued progress in lowering our effective tax rate," said Philip K. Asherman, CB&I's President and Chief Executive Officer. "We also resumed our stock repurchase program earlier this month and to date have purchased approximately 3.6 million shares, and we will continue to be active in the market until we reach our $200 million limit.

"Despite ongoing market uncertainty delaying the timing of final investment decisions, we were encouraged to see a meaningful rebound in new awards in our Technology operating group, which is often a leading indicator for subsequent EPC awards," said Mr. Asherman.

Although CB&I's unique business model and backlog position the company well for the long term, energy customers continue to defer the timing of new projects. As a result, the company is lowering its 2016 guidance as follows:

Revenue:  $10.6 - $11.0 billion

Earnings Per Diluted Share:  $4.70 - $5.00

Earnings Conference Call
CB&I will host a webcast on July 27 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 (NYSE: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.

Non-GAAP Financial Measures

To supplement CB&I's consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures, including: adjusted revenue, adjusted income from operations, adjusted net income attributable to CB&I, adjusted net income attributable to CB&I per share (diluted), and adjusted operating cash flows. These non-GAAP financial measures exclude the results of CB&I's nuclear operations and non-cash charges related to the disposition of such operations. These non-GAAP financial measures are presented to enhance investors' understanding of the results of CB&I's core business operations. CB&I considers these non-GAAP financial measures to be useful measures of the operating performance of the company, because they contain adjustments for unusual events or factors that do not directly affect what management considers to be CB&I's core operating performance, and are used by the company's management for that purpose. Management also believes that these non-GAAP financial measures allow for a better evaluation of the company's performance by facilitating a meaningful comparison of the company's core operating results in a given period to those in prior and future periods.  In addition, investors often use similar measures to evaluate the operating performance of a company.

Non-GAAP financial measures are presented for supplemental informational purposes only to aid an understanding of the company's operating results. The presentation of these non-GAAP financial measures and key metrics is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP financial measures presented by other companies. For more information on these non-GAAP financial measures and key metrics, please see the tables captioned "Non-GAAP Supplemental Adjusted Financial Data", "Non-GAAP Supplemental Adjusted Segment Information" and "Reconciliation of Non-GAAP Supplemental Adjusted Segment Information to GAAP Information" which are included at the end of this release.



Chicago Bridge & Iron Company N.V.

Segment Information

(in thousands)














Three Months Ended June 30,


Six Months Ended June 30,



2016


2015


2016


2015


















NEW AWARDS (1)




% of




% of




% of




% of




Total




Total




Total




Total

Engineering & Construction


$

963,391


55%


$

1,305,951


46%


$

1,286,809


44%


$

2,515,358


43%

Fabrication Services


252,978


14%


844,715


30%


626,667


21%


1,772,089


30%

Technology


107,769


6%


81,087


3%


191,389


6%


158,109


3%

Capital Services


434,701


25%


612,763


21%


851,373


29%


1,430,143


24%

Total


$

1,758,839




$

2,844,516




$

2,956,238




$

5,875,699




















REVENUE




% of




% of




% of




% of




Total




Total




Total




Total

Engineering & Construction


$

1,543,126


57%


$

1,916,122


60%


$

3,059,454


57%


$

3,734,708


59%

Fabrication Services


526,624


20%


611,330


19%


1,044,200


20%


1,249,139


20%

Technology


64,512


2%


92,975


3%


129,074


2%


192,336


3%

Capital Services


561,353


21%


586,686


18%


1,130,620


21%


1,156,675


18%

Total


$

2,695,615




$

3,207,113




$

5,363,348




$

6,332,858




















INCOME FROM OPERATIONS




% of




% of




% of




% of




Revenue




Revenue




Revenue




Revenue

Engineering & Construction


$

95,638


6.2%


$

176,467


9.2%


$

207,558


6.8%


$

312,885


8.4%

Fabrication Services


66,853


12.7%


55,937


9.2%


105,102


10.1%


108,336


8.7%

Technology


23,127


35.8%


36,741


39.5%


49,408


38.3%


84,765


44.1%

Capital Services


16,515


2.9%


14,962


2.6%


28,005


2.5%


24,919


2.2%

Total


$

202,133


7.5%


$

284,107


8.9%


$

390,073


7.3%


$

530,905


8.4%


















BACKLOG (2)



June 30, 2016


% of Total


December 31, 2015


% of Total

Engineering & Construction


$

11,159,593



57%


$

12,892,804



57%

Fabrication Services


2,606,646



13%


3,107,500



14%

Technology


977,125



5%


963,058



4%

Capital Services


4,892,596



25%


5,680,577



25%

Total


$

19,635,960







$

22,643,939







(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.



















(2)   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.

Consolidated Statements of Operations

(in thousands, except per share data)










Three Months


Six Months



Ended June 30,


Ended June 30,



2016


2015


2016


2015










Revenue


$

2,695,615


$

3,207,113


$

5,363,348


$

6,332,858

Cost of revenue


2,401,089


2,823,990


4,781,217


5,579,564

Gross profit


294,526


383,123


582,131


753,294

% of Revenue


10.9%


11.9%


10.9%


11.9%










Selling and administrative expense


82,731


85,153


175,328


194,254

% of Revenue


3.1%


2.7%


3.3%


3.1%










Intangibles amortization


10,494


14,942


21,771


30,594

Equity earnings


(1,985)


(394)


(5,975)


(4,596)

Other operating expense (income), net


1,153


(685)


934


2,137

Income from operations


202,133


284,107


390,073


530,905

% of Revenue


7.5%


8.9%


7.3%


8.4%










Interest expense


(26,073)


(21,114)


(51,971)


(43,400)

Interest income


3,059


2,184


5,548


4,232

Income before taxes


179,119


265,177


343,650


491,737










Income tax expense


(46,571)


(79,289)


(91,140)


(149,100)

Net income


132,548


185,888


252,510


342,637










Less: Net income attributable to noncontrolling interests


(8,709)


(16,373)


(21,746)


(40,894)

Net income attributable to CB&I


$

123,839


$

169,515


$

230,764


$

301,743










Net income attributable to CB&I per share:









Basic


$

1.18


$

1.56


$

2.20


$

2.78

Diluted


$

1.17


$

1.55


$

2.18


$

2.76










Weighted average shares outstanding:









Basic


105,298


108,700


105,051


108,450

Diluted


106,091


109,533


105,925


109,386










Cash dividends on shares:









Amount


$

7,372


$

7,610


$

14,731


$

15,207

Per share


$

0.07


$

0.07


$

0.14


$

0.14

 


Chicago Bridge & Iron Company N.V.

Condensed Consolidated Balance Sheets

(in thousands)








June 30,


December 31,



2016


2015

ASSETS










Current assets


$

3,649,294


$

3,367,299

Equity investments


149,043


136,845

Property and equipment, net


587,059


604,043

Goodwill and other intangibles, net


4,101,555


4,122,455

Other non-current assets


895,547


961,418

Total assets


$

9,382,498


$

9,192,060






LIABILITIES AND SHAREHOLDERS' EQUITY










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


$

863,270


$

800,871

Other current liabilities


4,272,183


4,056,077

Long-term debt, net


1,474,498


1,791,832

Other non-current liabilities


382,584


379,690






Shareholders' equity


2,389,963


2,163,590

Total liabilities and shareholders' equity


$

9,382,498


$

9,192,060



Condensed Consolidated Statements of Cash Flows and Other Financial Data

(in thousands)






Six Months



Ended June 30,



2016


2015

CASH FLOWS










Cash flows from operating activities


$

319,264


$

(194,704)

Cash flows from investing activities


(115,668)


(189,644)

Cash flows from financing activities


(137,736)


422,223

Effect of exchange rate changes on cash and cash equivalents


(13,169)


(34,110)

Increase in cash and cash equivalents


52,691


3,765

Cash and cash equivalents, beginning of the year


550,221


351,323

Cash and cash equivalents, end of the period


$

602,912


$

355,088






OTHER FINANCIAL DATA










Increase in receivables, net


$

(113,662)


$

(20,291)

Change in contracts in progress, net


87,405


(626,450)

Decrease (increase) in inventory


15,334


(6,089)

Decrease in accounts payable


(53,637)


(77,798)

Change in contract capital


$

(64,560)


$

(730,628)






Depreciation and amortization


$

62,853


$

86,699

Capital expenditures


$

25,276


$

33,717

 


Chicago Bridge & Iron Company N.V.

Non-GAAP Supplemental Adjusted 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





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 adjusted 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 Adjusted 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 adjusted 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 Adjusted Segment Information to GAAP Information" table.

 

Chicago Bridge & Iron Company N.V.

Reconciliation of Non-GAAP Supplemental Adjusted 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




% of




% of




% of




% of




Revenue




Revenue




Revenue




Revenue




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, [email protected]
Media: Gentry Brann, +1 832 513 1031, [email protected]

For more information, visit www.cbi.com (http://www.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-second-quarter-2016-financial-results-300304960.html

SOURCE CB&I


Source: PR Newswire (July 27, 2016 - 4:15 PM EDT)

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