THE WOODLANDS, Texas, May 8, 2017 /PRNewswire/ — CB&I (NYSE:CBI) today reported net income of $25 million, or $0.24 per diluted share, for the first quarter of 2017, as compared to $107 million, or $1.01 per diluted share, for the first quarter of 2016. First quarter 2017 revenue was $2.4 billion, as compared to $2.7 billion in the first quarter of 2016.

New awards for the first quarter were $3.3 billion, as compared to $1.2 billion for the first quarter of 2016. The company’s backlog at the end of the first quarter of 2017 was $19.3 billion.

«Each of our operating groups reported solid earnings for the quarter with the exception of Engineering & Construction, which was negatively impacted by underperformance on two union construction projects. Overall, new awards exceeded our expectations, indicating the rebound of opportunities in our end markets, specifically in the United States, Middle East and China,» said Philip K. Asherman, CB&I’s President and Chief Executive Officer. «I’m especially proud of our outstanding safety record, having performed more than 51 million work hours with zero lost-time incidents in the past six months.»

New awards for the quarter include an engineering, procurement and construction contract valued at $1.3 billion with Total Petrochemicals & Refining USA for an ethane cracker project in Texas, CB&I’s fourth new ethane construction project on the U.S. Gulf Coast; a $600 million contract by a leading integrated energy company for the engineering, procurement, construction and commissioning of a combined-cycle power plant in the southern United States; and multiple multi-technology and licensing awards in China.

The company is adjusting its 2017 guidance as follows:

  • Revenue: $9.5 billion – $10.5 billion (no change)
  • Earnings Per Share (diluted): $3.50 – $4.00

Earnings Conference Call
CB&I will host a webcast on May 8 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, 2016, 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 the presentation of our financial results, consolidated statements of operations and segment data, excluding the impact of the classification of our Capital Services operations as a discontinued operation. These non-GAAP financial measures are presented to provide a better indication of our operating results prior to the sale of our Capital Services operations.

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 Segment Data,» «Non-GAAP Supplemental Adjusted Financial Data,»  «Reconciliation of Non-GAAP Supplemental Adjusted Segment Data» and «Reconciliation of Non-GAAP Supplemental Adjusted Financial Data,» which are included in this release.

Investors: Scott Lamb, +1 832 513 1068, [email protected] 
Media: Gentry Brann, +1 832 513 1031, [email protected]  

Chicago Bridge & Iron Company N.V.

Non-GAAP Supplemental Adjusted Segment Data

(amounts adjusted to exclude impact of classifying our Capital Services Operations as a discontinued operation) (1)

(in thousands)

Three Months Ended March 31,

2017

2016

NEW AWARDS

% of

% of

Total

Total

Engineering & Construction

$

2,239,799

68%

$

323,418

27%

Fabrication Services

446,260

13%

373,689

31%

Technology

160,354

5%

83,620

7%

Capital Services

468,732

14%

416,672

35%

Total

$

3,315,145

$

1,197,399

REVENUE

% of

% of

Total

Total

Engineering & Construction

$

1,285,589

54%

$

1,516,328

57%

Fabrication Services

476,580

20%

517,576

19%

Technology

68,027

3%

64,562

3%

Capital Services

534,209

23%

569,267

21%

Total

$

2,364,405

$

2,667,733

INCOME FROM OPERATIONS

% of

% of

Revenue

Revenue

Engineering & Construction

$

9,676

0.8%

$

111,920

7.4%

Fabrication Services

53,861

11.3%

38,249

7.4%

Technology

21,740

32.0%

26,281

40.7%

Capital Services

12,755

2.4%

11,490

2.0%

Total

$

98,032

4.1%

$

187,940

7.0%

BACKLOG

March 31,

% of

December 31,

% of

2017

Total

2016

Total

Engineering & Construction

$

10,824,815

56%

$

9,916,948

54%

Fabrication Services

2,058,874

11%

2,114,550

11%

Technology

1,095,801

6%

1,025,723

6%

Capital Services

5,296,059

27%

5,398,012

29%

Total

$

19,275,549

$

18,455,233

(1)

New awards, revenue, and income from operations for the three months ended March 31, 2017 and 2016, and backlog at March 31, 2017 and December 31, 2016, are presented excluding the impact of the classification of our Capital Services Operations as a discontinued operation.  This presentation is considered a non-GAAP financial measure, which we believe provides a better indication of our operating results prior to the sale of our Capital Services Operations. See «Reconciliation of Non-GAAP Supplemental Adjusted Segment Data».

 

Chicago Bridge & Iron Company N.V.

Segment Information

(in thousands)

Three Months Ended March 31,

2017

2016

NEW AWARDS (1)

% of

% of

Total

Total

Engineering & Construction

$

2,236,173

79%

$

341,665

43%

Fabrication Services

446,260

16%

374,139

47%

Technology

160,354

5%

83,620

10%

Total

$

2,842,787

$

799,424

REVENUE

% of

% of

Total

Total

Engineering & Construction

$

1,280,753

70%

$

1,536,361

72%

Fabrication Services

478,572

26%

533,706

25%

Technology

68,027

4%

64,562

3%

Total

$

1,827,352

$

2,134,629

INCOME FROM OPERATIONS

% of

% of

Revenue

Revenue

Engineering & Construction

$

5,414

0.4%

$

108,073

7.0%

Fabrication Services

52,059

10.9%

37,110

7.0%

Technology

21,515

31.6%

26,149

40.5%

Total

$

78,988

4.3%

$

171,332

8.0%

BACKLOG (1)

March 31,

% of

December 31,

% of

2017

Total

2016

Total

Engineering & Construction

$

10,792,597

77%

$

9,871,208

76%

Fabrication Services

2,060,384

15%

2,117,567

16%

Technology

1,095,801

8%

1,025,723

8%

Total

$

13,948,782

$

13,014,498

(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.  Backlog includes the value of new awards until work is performed and revenue is recognized or until cancellation. Backlog may fluctuate with currency movements.

 

Chicago Bridge & Iron Company N.V.

Non-GAAP Supplemental Adjusted Financial Data

(amounts adjusted to exclude impact of classifying our Capital Services Operations as a discontinued operation) (1)

(in thousands, except per share data)

Three Months

Ended March 31,

2017

2016

Revenue

$

2,364,405

$

2,667,733

Cost of revenue

2,179,194

2,380,128

Gross profit

185,211

287,605

% of Revenue

7.8

%

10.8

%

Selling and administrative expense

86,095

92,597

% of Revenue

3.6

%

3.5

%

Intangibles amortization

9,036

11,277

Equity earnings

(7,875)

(3,990)

Other operating income, net

(77)

(219)

Income from operations

98,032

187,940

% of Revenue

4.1

%

7.0

%

Interest expense

(30,964)

(25,898)

Interest income

1,237

2,489

Income before taxes

68,305

164,531

Income tax expense

(16,400)

(44,569)

Net income

51,905

119,962

Less: Net income attributable to noncontrolling interests

(27,250)

(13,037)

Net income attributable to CB&I

$

24,655

$

106,925

Net income attributable to CB&I per share:

Basic

$

0.25

$

1.02

Diluted

$

0.24

$

1.01

Weighted average shares outstanding:

Basic

100,451

104,803

Diluted

101,360

105,785

(1)

The three months ended March 31, 2017 and 2016 are presented excluding the impact of the classification of our Capital Services Operations as a discontinued operation. This presentation is considered a non-GAAP financial measure, which we believe provides a better indication of our operating results prior to the sale of our Capital Services Operations. See «Reconciliation of Non-GAAP Supplemental Adjusted Financial Data».

 

Chicago Bridge & Iron Company N.V.

Consolidated Statements of Operations

(in thousands, except per share data)

Three Months

Ended March 31,

2017

2016

Revenue

$

1,827,352

$

2,134,629

Cost of revenue

1,676,401

1,879,059

Gross profit

150,951

255,570

% of Revenue

8.3

%

12.0

%

Selling and administrative expense

73,057

80,946

% of Revenue

4.0

%

3.8

%

Intangibles amortization

6,486

7,077

Equity earnings

(7,611)

(3,605)

Other operating expense (income), net

31

(180)

Operating Income from continuing operations

78,988

171,332

% of Revenue

4.3

%

8.0

%

Interest expense

(24,101)

(20,065)

Interest income

1,228

2,180

Income from continuing operations before taxes

56,115

153,447

Income tax expense

(13,704)

(39,524)

Net income from continuing operations

42,411

113,923

Net income from discontinued operations

9,494

6,039

Net income

51,905

119,962

Less: Net income attributable to noncontrolling interests

($413 and $448 related to discontinued operations)

(27,250)

(13,037)

Net income attributable to CB&I

$

24,655

$

106,925

Net income attributable to CB&I per share (Basic):

Continuing operations

$

0.16

$

0.97

Discontinued operations

0.09

0.05

Total

$

0.25

$

1.02

Net income attributable to CB&I per share (Diluted):

Continuing operations

$

0.15

$

0.96

Discontinued operations

0.09

0.05

Total

$

0.24

$

1.01

Weighted average shares outstanding:

Basic

100,451

104,803

Diluted

101,360

105,785

 

Chicago Bridge & Iron Company N.V.

Condensed Consolidated Balance Sheets

(in thousands)

March 31,

December 31,

2017

2016

ASSETS

Current assets

$

2,316,459

$

2,127,020

Equity investments

171,605

165,256

Property and equipment, net

500,187

505,944

Goodwill and other intangibles, net

3,029,439

3,033,212

Assets of discontinued operations

915,324

876,876

Other non-current assets

1,130,957

1,131,112

Total assets

$

8,063,971

$

7,839,420

LIABILITIES AND SHAREHOLDERS’ EQUITY

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

$

1,141,329

$

911,410

Other current liabilities

3,334,470

3,377,370

Long-term debt, net

1,266,027

1,287,923

Liabilities of discontinued operations

258,817

252,857

Other non-current liabilities

445,576

448,523

Shareholders’ equity

1,617,752

1,561,337

Total liabilities and shareholders’ equity

$

8,063,971

$

7,839,420

Condensed Consolidated Statements of Cash Flows and Other Financial Data

(in thousands)

Three Months

Ended March 31,

2017

2016

CASH FLOWS

Cash flows from operating activities

$

(290,682)

$

141,850

Cash flows from investing activities

(43,296)

(47,499)

Cash flows from financing activities

227,585

(11,392)

Effect of exchange rate changes on cash and cash equivalents

21,316

8,305

(Decrease) increase in cash and cash equivalents

(85,077)

91,264

Cash and cash equivalents, beginning of the year

505,156

550,221

Cash and cash equivalents, end of the period

420,079

641,485

Cash and cash equivalents, end of period – discontinued operations

(17,782)

(20,563)

Cash and cash equivalents, end of period – continuing operations

$

402,297

$

620,922

OTHER FINANCIAL DATA

Increase in receivables, net

$

(217,122)

$

(57,207)

Change in contracts in progress, net

(6,057)

58,361

(Increase) decrease in inventory

(12,346)

27,477

Decrease in accounts payable

(95,117)

(87,753)

Change in contract capital

$

(330,642)

$

(59,122)

Depreciation and amortization

$

26,264

$

31,801

Capital expenditures

$

12,274

$

11,180

 

Chicago Bridge & Iron Company N.V.

Reconciliation of Non-GAAP Supplemental Adjusted Segment Data

(in thousands)

Three Months Ended March 31,

2017

2016

As Reported

Adjustment

Adjusted (1)

As Reported

Adjustment

Adjusted (1)

NEW AWARDS

Engineering & Construction

$

2,236,173

$

3,626

$

2,239,799

$

341,665

$

(18,247)

$

323,418

Fabrication Services

446,260

446,260

374,139

(450)

373,689

Technology

160,354

160,354

83,620

83,620

Capital Services

468,732

468,732

416,672

416,672

Total

$

2,842,787

$

472,358

$

3,315,145

$

799,424

$

397,975

$

1,197,399

REVENUE

Engineering & Construction

$

1,280,753

$

4,836

$

1,285,589

$

1,536,361

$

(20,033)

$

1,516,328

Fabrication Services

478,572

(1,992)

476,580

533,706

(16,130)

517,576

Technology

68,027

68,027

64,562

64,562

Capital Services

534,209

534,209

569,267

569,267

Total

$

1,827,352

$

537,053

$

2,364,405

$

2,134,629

$

533,104

$

2,667,733

INCOME FROM OPERATIONS

Engineering & Construction

$

5,414

$

4,262

$

9,676

$

108,073

$

3,847

$

111,920

Fabrication Services

52,059

1,802

53,861

37,110

1,139

38,249

Technology

21,515

225

21,740

26,149

132

26,281

Capital Services

12,755

12,755

11,490

11,490

Total

$

78,988

$

19,044

$

98,032

$

171,332

$

16,608

$

187,940

March 31, 2017

December 31, 2016

As Reported

Adjustment

Adjusted(1)

As Reported

Adjustment

Adjusted(1)

BACKLOG

Engineering & Construction

$

10,792,597

$

32,218

$

10,824,815

$

9,871,208

$

45,740

$

9,916,948

Fabrication Services

2,060,384

(1,510)

2,058,874

2,117,567

(3,017)

2,114,550

Technology

1,095,801

1,095,801

1,025,723

1,025,723

Capital Services

5,296,059

5,296,059

5,398,012

5,398,012

Total

$

13,948,782

$

5,326,767

$

19,275,549

$

13,014,498

$

5,440,735

$

18,455,233

(1)

The summary unaudited adjusted segment data is presented excluding the impact of the classification of our Capital Services Operations as a discontinued operation. This presentation is considered a non-GAAP financial measure, which we believe provides a better indication of our operating results prior to the sale of our Capital Services Operations.

 

Chicago Bridge & Iron Company N.V.

Reconciliation of Non-GAAP Supplemental Adjusted Financial Data

(in thousands, except per share data)

Three Months Ended March 31,

2017

2016

As Reported

Adjustment

Adjusted (1)

As Reported

Adjustment

Adjusted (1)

Revenue

$

1,827,352

$

537,053

$

2,364,405

$

2,134,629

$

533,104

$

2,667,733

Cost of revenue

1,676,401

502,793

2,179,194

1,879,059

501,069

2,380,128

Gross profit

150,951

34,260

185,211

255,570

32,035

287,605

% of Revenue

8.3

%

7.8

%

12.0

%

10.8

%

Selling and administrative expense

73,057

13,038

86,095

80,946

11,651

92,597

% of Revenue

4.0

%

3.6

%

3.8

%

3.5

%

Intangibles amortization

6,486

2,550

9,036

7,077

4,200

11,277

Equity earnings

(7,611)

(264)

(7,875)

(3,605)

(385)

(3,990)

Other operating expense (income), net

31

(108)

(77)

(180)

(39)

(219)

Income from operations

78,988

19,044

98,032

171,332

16,608

187,940

% of Revenue

4.3

%

4.1

%

8.0

%

7.0

%

Interest expense

(24,101)

(6,863)

(30,964)

(20,065)

(5,833)

(25,898)

Interest income

1,228

9

1,237

2,180

309

2,489

Income before taxes

56,115

12,190

68,305

153,447

11,084

164,531

Income tax expense

(13,704)

(2,696)

(16,400)

(39,524)

(5,045)

(44,569)

Net income from continuing operations

42,411

9,494

51,905

113,923

6,039

119,962

Net income from discontinued operations

9,494

(9,494)

6,039

(6,039)

Net income

51,905

51,905

119,962

119,962

Less: Net income attributable to
noncontrolling interests ($413 and $448
related to discontinued operations)

(27,250)

(27,250)

(13,037)

(13,037)

Net income attributable to CB&I

$

24,655

$

$

24,655

$

106,925

$

$

106,925

Net income attributable to CB&I per share (Basic):

Continuing operations

$

0.16

$

0.09

$

0.25

$

0.97

$

0.05

$

1.02

Discontinued operations

0.09

(0.09)

0.05

(0.05)

Total

$

0.25

$

$

0.25

$

1.02

$

$

1.02

Net income attributable to CB&I per share (Diluted):

Continuing operations

$

0.15

$

0.09

$

0.24

$

0.96

$

0.05

$

1.01

Discontinued operations

0.09

(0.09)

0.05

(0.05)

Total

$

0.24

$

$

0.24

$

1.01

$

$

1.01

Weighted average shares outstanding:

Basic

100,451

100,451

104,803

104,803

Diluted

101,360

101,360

105,785

105,785

(1)

The summary unaudited adjusted financial data is presented excluding the impact of the classification of our Capital Services Operations as a discontinued operation. This presentation is considered a non-GAAP financial measure, which we believe provides a better indication of our operating results prior to the sale of our Capital Services Operations.

 

For more information, visit  www.cbi.com (http:// www.cbi.com ). (PRNewsFoto/CB&I)

 

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SOURCE CB&I