CB&I Reports 2012 Fourth Quarter and Full-Year Results

Wed Feb 27, 2013 4:46pm EST

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Earnings per Share up 30% over Q4 2011, 2012 New Awards of $7.3 billion
THE WOODLANDS, Texas--(Business Wire)--
CB&I (NYSE: CBI) today reported net income for the fourth quarter of $89.6
million, or $0.91 per diluted share, versus $70.5 million or $0.70 per diluted
share in the fourth quarter of 2011. Revenue for the quarter was $1.5 billion,
with new awards of $2.9 billion. 

For the full-year, net income was $301.7 million, or $3.07 per diluted share, up
20% in earnings per share year-over-year. CB&I`s consolidated 2012 revenue was
$5.5 billion, up 21% from the prior year. Cash and cash equivalents as of
December 31, 2012 were $643.4 million. 

"I am extremely pleased that CB&I has delivered another year of strong new
awards and outstanding performance, resulting in double-digit backlog growth and
earnings per share exceeding the top end of our expectations for 2012," said
Philip K. Asherman, President and CEO. "I am particularly proud that we continue
to achieve exceptional safety performance around the world. On nearly 71 million
work-hours at year-end and with one of our businesses having executed more than
39 million work-hours with zero lost time incidents, CB&I remains in the top
tier of safest companies in the industry. Our relentless focus on safety
provides the company with not only a tremendous competitive advantage, but also
drives recruiting, retention, and client confidence, and most importantly it`s
the right thing to do for our employees." 

New Awards for 2012 totaled $7.3 billion, reflecting the company`s ability to
capitalize on its global end markets across each of its business sectors.
Noteworthy 2012 awards included FEED contracts for Freeport LNG in the U.S. and
Andarko`s Mozambique LNG project, an Oil Sands award for the Kearl Expansion in
Canada, Gas Processing projects in Australia and Denmark, an Offshore contract
for the Mariner Topsides project in the North Sea, a Paraxylene technology award
by Reliance for the world`s largest aromatics complex, as well as numerous
additional strategic Petrochemical and Refining technology licensing awards. 

Earnings Conference Call

CB&I will host a webcast on February 27 at 4:00 p.m. CST (5:00 p.m. EST) to
discuss financial and operating results, and answer questions from investors.
The webcast is available at www.CBI.comInvestor Relations.

About CB&I

CB&I (NYSE: CBI) is the most complete energy infrastructure focused company in
the world and a major provider of government services. Drawing upon more than a
century of experience and the expertise of approximately 50,000 employees, CB&I
provides reliable solutions while maintaining a relentless focus on safety and
an uncompromising standard of quality. 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, 2012, 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.                                                                                                                                       
 CONSOLIDATED STATEMENTS OF OPERATIONS                                                                                                                                    
 (in thousands, except per share data)                                                                                                                                    
                                                                                                                                                                          
                                                                                                                                                                          
                                                              Three Months                                            Twelve Months                                       
                                                              Ended December 31,                                      Ended December 31,                                  
                                                                   2012                           2011                     2012                           2011            
                                                                                                                                                                          
 Revenue                                                      $    1,537,468                 $    1,255,222           $    5,485,206                 $    4,550,542       
 Cost of revenue                                                   1,339,800                      1,108,607                4,786,499                      3,980,306       
                                                                                                                                                                          
 Gross profit                                                      197,668                        146,615                  698,707                        570,236         
 % of Revenue                                                      12.9       %                   11.7       %             12.7       %                   12.5       %    
                                                                                                                                                                          
 Selling and administrative expense                                59,464                         49,661                   227,948                        205,550         
 % of Revenue                                                      3.9        %                   4.0        %             4.2        %                   4.5        %    
                                                                                                                                                                          
 Intangibles amortization                                          4,488                          7,229                    22,613                         26,302          
 Other operating expense, net                                      6,618                          304                      10,434                         74              
 Equity earnings                                                   (11,416    )                   (9,649     )             (17,931    )                   (16,887    )    
                                                                                                                                                                          
 Income from operations                                            138,514                        99,070                   455,643                        355,197         
 % of Revenue                                                      9.0        %                   7.9        %             8.3        %                   7.8        %    
                                                                                                                                                                          
 Interest expense                                                  (7,837     )                   (3,330     )             (19,606    )                   (11,030    )    
 Interest income                                                   1,592                          2,300                    8,029                          7,796           
                                                                                                                                                                          
 Income before taxes                                               132,269                        98,040                   444,066                        351,963         
                                                                                                                                                                          
 Income tax expense                                                (35,277    )                   (27,512    )             (127,003   )                   (96,765    )    
                                                                                                                                                                          
 Net income                                                        96,992                         70,528                   317,063                        255,198         
                                                                                                                                                                          
 Less: Net income attributable to noncontrolling interests         (7,375     )                   (60        )             (15,408    )                   (166       )    
                                                                                                                                                                          
 Net income attributable to CB&I                              $    89,617                    $    70,468              $    301,655                   $    255,032         
                                                                                                                                                                          
 Net income attributable to CB&I per share:                                                                                                                               
 Basic                                                        $    0.93                      $    0.72                $    3.12                      $    2.60            
 Diluted                                                      $    0.91                      $    0.70                $    3.07                      $    2.55            
                                                                                                                                                                          
 Weighted average shares outstanding:                                                                                                                                     
 Basic                                                             96,479                         97,343                   96,633                         98,022          
 Diluted                                                           98,230                         100,008                  98,231                         100,205         
                                                                                                                                                                          
 Cash dividends on shares:                                                                                                                                                
 Amount                                                       $    4,841                     $    4,881               $    19,394                    $    19,722          
 Per Share                                                    $    0.05                      $    0.05                $    0.20                      $    0.20            
                                                                                                                                                                          


                                                                                                                                                                                                                          
 CHICAGO BRIDGE & IRON COMPANY N.V.                                                                                                                                                                                       
 SEGMENT INFORMATION                                                                                                                                                                                                      
 (in thousands)                                                                                                                                                                                                           
                                                                                                                                                                                                                          
                                               Three Months Ended December 31,                                                         Twelve Months Ended December 31,                                                   
                                               2012                                                 2011                               2012                                                  2011                         
                                                                                                                                                                                                                          
                                                                            % of                                     % of                                         % of                                        % of        
 NEW AWARDS*                                                                Total                                    Total                                        Total                                       Total       
 Steel Plate Structures                        $        921,344             32       %              $  281,822       36    %           $       2,495,358          34      %                  $  4,079,599     60    %     
 Project Engineering and Construction                   1,785,141           63       %                 337,135       44    %                   4,083,891          56      %                     2,190,272     32    %     
 Lummus Technology                                      144,251             5        %                 153,450       20    %                   726,721            10      %                     537,844       8     %     
 Total                                         $        2,850,736                                   $  772,407                         $       7,305,970                                     $  6,807,715                 
                                                                                                                                                                                                                          
                                                                                                                                                                                                                          
                                                                            % of                                     % of                                         % of                                        % of        
 REVENUE                                                                    Total                                    Total                                        Total                                       Total       
 Steel Plate Structures                        $        541,644             35       %              $  475,739       38    %           $       1,957,681          36      %                  $  1,812,180     40    %     
 Project Engineering and Construction                   847,729             55       %                 653,561       52    %                   3,040,229          55      %                     2,289,788     50    %     
 Lummus Technology                                      148,095             10       %                 125,922       10    %                   487,296            9       %                     448,574       10    %     
 Total                                         $        1,537,468                                   $  1,255,222                       $       5,485,206                                     $  4,550,542                 
                                                                                                                                                                                                                          
                                                                                                                                                                                                                          
                                                                            % of                                     % of                                         % of                                        % of        
 INCOME FROM OPERATIONS                                                     Revenue                                  Revenue                                      Revenue                                     Revenue     
 Steel Plate Structures                        $        54,649              10.1     %              $  39,586        8.3   %           $       192,593            9.8     %                  $  167,283       9.2   %     
 Project Engineering and Construction                   42,945              5.1      %                 29,484        4.5   %                   136,689            4.5     %                     91,576        4.0   %     
 Lummus Technology                                      40,920              27.6     %                 30,000        23.8  %                   126,361            25.9    %                     96,338        21.5  %     
 Total                                         $        138,514             9.0      %              $  99,070        7.9   %           $       455,643            8.3     %                  $  355,197       7.8   %     
                                                                                                                                                                                                                          
                                                                                                                                                                                                                          
 * New awards represents the value of new project commitments received by the Company during a given period.                                                                                                              
                                                                                                                                                                                                                          


                                                                                     
 CHICAGO BRIDGE & IRON COMPANY N.V.                                                  
 CONDENSED CONSOLIDATED BALANCE SHEETS                                               
 (in thousands)                                                                      
                                                                                     
                                                                                     
                                               December 31,                          
                                               2012                 2011 *           
 ASSETS                                                                              
                                                                                     
 Current assets                                $    2,721,555       $     1,653,096  
 Equity investments                                 97,267                95,687     
 Property and equipment, net                        285,871               262,003    
 Goodwill and other intangibles, net                1,093,019             1,114,512  
 Other non-current assets                           131,963               154,051    
                                                                                     
 Total assets                                  $    4,329,675       $     3,279,349  
                                                                                     
                                                                                     
 LIABILITIES AND SHAREHOLDERS' EQUITY                                                
                                                                                     
 Current maturity of long-term debt            $    -               $     40,000     
 Other current liabilities                          1,772,522             1,716,879  
 Long-term debt                                     800,000               -          
 Other non-current liabilities                      360,843               326,040    
                                                                                     
 Shareholders' equity                               1,396,310             1,196,430  
                                                                                     
 Total liabilities and shareholders' equity    $    4,329,675       $     3,279,349  
                                                                                     
 * Certain December 31, 2011 income tax payable, income tax receivable and deferred tax asset and liability balances have been reclassified to conform to our December 31, 2012 presentation. 
                                                                                     


                                                                                                                 
 CHICAGO BRIDGE & IRON COMPANY N.V.                                                                              
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND OTHER FINANCIAL DATA                                        
 (in thousands)                                                                                                  
                                                                                                                 
                                                                 Twelve Months                                   
                                                                 Ended December 31,                              
                                                                      2012                       2011            
 CASH FLOWS                                                                                                      
                                                                                                                 
 Cash flows from operating activities                            $    202,504               $    413,155         
 Cash flows from investing activities                                 (66,785     )              (32,753    )    
 Cash flows from financing activities                                 (174,111    )              (178,795   )    
 Effect of exchange rate changes on cash and cash equivalents         9,976                      (11,534    )    
                                                                                                                 
 (Decrease) increase in cash and cash equivalents                     (28,416     )              190,073         
 Cash and cash equivalents, beginning of the year                     671,811                    481,738         
 Cash and cash equivalents, end of the year                      $    643,395               $    671,811         
                                                                                                                 
 OTHER FINANCIAL DATA                                                                                            
                                                                                                                 
 Increase in receivables, net                                    $    (258,132    )         $    (130,192   )    
 Change in contracts in progress, net                                 (222,133    )              16,419          
 Increase in accounts payable                                         135,755                    159,524         
 Change in contract capital                                      $    (344,510    )         $    45,751          
                                                                                                                 
 Depreciation and amortization                                   $    66,421                $    70,184          
 Capital expenditures                                            $    72,279                $    40,945          
                                                                                                                 
 Backlog **                                                      $    10,928,818            $    8,968,206       
                                                                                                                 
                                                                                                                 
 ** 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. 
                                                                                                                 


CB&I
Investors:Christi Thoms, +1 832-513-1200
Media:www.CBI.com



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