CB&I Reports Strong 2013 Fourth Quarter and Full-Year Results

        CB&I Reports Strong 2013 Fourth Quarter and Full-Year Results

PR Newswire

THE WOODLANDS, Texas, Feb. 25, 2014

THE WOODLANDS, Texas, Feb. 25, 2014 /PRNewswire/ -- CB&I (NYSE: CBI) today
announced financial results for the fourth quarter and full-year 2013. Net
income for 2013 was $454.1 million, or $4.23 per diluted share, including
acquisition and integration related costs of $73.3 million, or $0.68 per
diluted share. CB&I's consolidated 2013 revenue was $11.1 billion, up from
$5.5 billion in the prior year. New awards for 2013 totaled $12.3 billion,
resulting in a backlog of $27.8 billion as of December 31, 2013.

In the fourth quarter, CB&I's net income was $196.8 million, or $1.80 per
diluted share, including acquisition and integration related costs of $12.1
million, or $0.11 per diluted share. Revenue for the fourth quarter was $3.0
billion with new awards of $5.3 billion.

"With record high new awards and revenue, 2013 was without a doubt the
strongest year in the company's 125 year history. Our 2013 net income,
excluding acquisition and integration related costs, exceeded half a billion
dollars, resulting in adjusted earnings per share of $4.91," said Philip K.
Asherman, President and Chief Executive Officer. "In addition to our financial
results, I am very proud to report that we executed 145 million work-hours in
2013, with one of the best safety records in our industry. With this
relentless focus and commitment to safety, our unique business model that
delivers a more complete supply chain solution for our customers, nearly $30
billion in backlog and the assurance of long-term global energy demand, we
expect CB&I to continue to deliver outstanding value to our shareholders."

CB&I's $12.3 billion in 2013 new awards demonstrates the company's ability to
capitalize on its breadth of offerings across its growing end markets.
Noteworthy awards and developments included a LNG contract for the first two
trains at Freeport LNG, an award for an ethylene plant for Occidental in
Texas, storage awards for LNG tanks in Asia and Australia, a propane terminal
in Pennsylvania, a strategic partnership with China Power Investment
Corporation (CPI) to jointly build nuclear power generation in China, a pipe
fabrication award for a natural gas project in Australia, contracts for
environmental remediation and Air Quality Control programs across the U.S., a
plant services contract for Peru LNG, a paraxylene technology contract with GS
Caltex, as well as numerous additional strategic petrochemical and refining
technology licensing awards.

Earnings Conference Call

CB&I will host a webcast on February 25 at 4:00 p.m. CST (5:00 p.m. EST) 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 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 55,000 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.

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, 2013, 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,
                         2013           2012          2013          2012
Revenue                  $ 3,000,257   $             $             $
                                        1,537,468    11,094,527   5,485,206
Cost of revenue          2,661,051      1,339,800     9,895,517     4,786,499
      Gross profit       339,206        197,668       1,199,010     698,707
      % of Revenue       11.3%          12.9%         10.8%         12.7%
Selling and              98,921         59,464        379,485       227,948
administrative expense
      % of Revenue       3.3%           3.9%          3.4%          4.2%
Intangibles              18,429         4,488         61,111        22,613
amortization
Equity earnings          (7,337)        (11,416)      (23,474)      (17,931)
Other operating          (493)          618           1,643         (566)
(income) expense, net
Acquisition and
integration related      19,260         6,000         95,737        11,000
costs
      Income from        210,426        138,514       684,508       455,643
      operations
      % of Revenue       7.0%           9.0%          6.2%          8.3%
Interest expense         (21,506)       (7,837)       (87,578)      (19,606)
Interest income         1,721          1,592         6,930         8,029
      Income before      190,641        132,269       603,860       444,066
      taxes
Income tax benefit       26,414         (35,277)      (91,270)      (127,003)
(expense) ^(1)
      Net income         217,055        96,992        512,590       317,063
Less: Net income
attributable to          (20,274)       (7,375)       (58,470)      (15,408)
noncontrolling
interests
      Net income                        $           $           $ 
      attributable to    $  196,781   89,617       454,120      301,655
      CB&I
Net income
attributable to CB&I
per share:
      Basic              $          $         $        $    
                         1.83          0.93         4.29         3.12
      Diluted            $          $         $        $    
                         1.80          0.91         4.23         3.07
Weighted average
shares outstanding:
      Basic              107,527        96,479        105,935       96,633
      Diluted            109,168        98,230        107,452       98,231
Cash dividends on
shares:
      Amount             $           $          $          $  
                         5,375         4,841        21,453       19,394
      Per Share          $          $         $        $    
                         0.05          0.05         0.20         0.20
      The three and twelve month periods ended December 31, 2013 include a tax
 ^(1) benefit of $77,800 ($0.72 per share) related to the recognition of the
      balance of our U.K. net operating loss tax asset and certain U.S.
      foreign tax credits.
Non-GAAP Supplemental Information
(amounts adjusted to exclude Shaw acquisition and integration related costs)
(2)
      Adjusted income    $  229,686   $            $           $ 
      from operations                   144,514      780,245      466,643
      Adjusted % of      7.7%           9.4%          7.0%          8.5%
      Revenue
      Adjusted net
      income             $  208,915   $           $           $ 
      attributable to                   93,517       527,436      308,798
      CB&I
      Adjusted net
      income             $         $         $        $    
      attributable to    1.91           0.95         4.91         3.14
      CB&I per share
      (diluted)
      The exclusion of Shaw acquisition and integration related costs is a
 ^(2) non-GAAP financial measure, which we believe provides users a better
      indication of our operating performance. See Reconciliation of Non-GAAP
      Supplemental Information table.







Chicago Bridge & Iron Company N.V.
Segment Information
(in thousands)
              Three Months Ended December 31,            Twelve Months Ended December 31,
              2013                 2012                  2013                  2012
                        % of                % of                % of                % of
NEW AWARDS              Total               Total               Total               Total
^(1)

Engineering, $                   $                     $                     $
Construction  4,035,925 76%        2,258,963 79%        7,929,048 65%        5,115,271 70%
and
Maintenance

Fabrication  799,681   15%        447,522    16%        2,681,886  22%        1,463,978  20%
Services
            233,784   5%         144,251    5%         633,690    5%         726,721    10%
Technology

Government   225,658   4%         -          0%         1,008,346  8%         -          0%
Solutions
 Total    $                   $                     $                     $
              5,295,048            2,850,736            12,252,970            7,305,970
                        % of                % of                % of                % of
REVENUE                 Total               Total               Total               Total

Engineering, $                   $                   $                     $
Construction  1,882,794 63%        964,695    63%        6,724,567 61%        3,305,377 60%
and
Maintenance

Fabrication  698,052   23%        424,678    27%        2,575,597  23%        1,692,533  31%
Services
            130,472   4%         148,095    10%        599,195    5%         487,296    9%
Technology

Government   288,939   10%        -          0%         1,195,168  11%        -          0%
Solutions
 Total      $                   $                     $                     $
              3,000,257            1,537,468            11,094,527            5,485,206
                        % of                % of                % of                % of
INCOME FROM             Revenue             Revenue             Revenue             Revenue
OPERATIONS

Engineering, $                  $                  $                   $  
Construction  109,575   5.8%       59,612     6.2%       328,919    4.9%       168,467    5.1%
and
Maintenance

Fabrication  75,647    10.8%      43,398     10.2%      259,750    10.1%      170,780    10.1%
Services
            40,125    30.8%      41,504     28.0%      156,835    26.2%      127,396    26.1%
Technology

Government   4,339     1.5%       -          0.0%       34,741     2.9%       -          0.0%
Solutions
 Total     $                  $                   $                   $  
operating     229,686   7.7%       144,514    9.4%       780,245    7.0%       466,643    8.5%
groups
 
Acquisition
and           (19,260)             (6,000)               (95,737)              (11,000)
integration
related
costs
 Total     $       7.0%       $        9.0%       $        6.2%       $        8.3%
              210,426              138,514               684,508               455,643

(1) 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,         December 31,
                                      2013                 2012
ASSETS
Current assets                        $             $       
                                      3,389,565            2,721,555
Equity investments                    101,754              97,267
Property and equipment, net           788,797              285,871
Goodwill and other intangibles, net   4,854,191            1,093,019
Other non-current assets              264,296              131,963
     Total assets                     $             $       
                                      9,398,603            4,329,675
LIABILITIES AND SHAREHOLDERS' EQUITY
Current maturities of long-term debt  $            $         
and revolver borrowings               215,000                -
Other current liabilities             4,582,624            1,772,522
Long-term debt                       1,625,000            800,000
Other non-current liabilities         459,531              360,843
Shareholders' equity                  2,516,448            1,396,310
     Total liabilities and            $             $       
     shareholders' equity             9,398,603            4,329,675
Chicago Bridge & Iron Company N.V.
Condensed Consolidated Statements of Cash Flows and Other Financial Data
(in thousands)
                                      Twelve Months
                                      Ended December 31,
                                      2013                 2012
CASH FLOWS
Cash flows from operating activities  $            $        
                                      (112,836)            202,504
Cash flows from investing activities  (1,825,309)          (66,785)
Cash flows from financing activities  1,732,812            (174,111)
Effect of exchange rate changes on    (17,560)             9,976
cash and cash equivalents
Decrease in cash and cash equivalents (222,893)            (28,416)
Cash and cash equivalents, beginning  643,395              671,811
of the year
Cash and cash equivalents, end of the $            $        
year                                  420,502             643,395
OTHER FINANCIAL DATA
Increase in receivables, net          $            $        
                                      (158,851)            (258,132)
Change in contracts in progress, net  (614,628)            (222,133)
Decrease in inventory                 1,504                2,339
(Decrease) increase in accounts       (43,491)             135,755
payable
     Change in contract capital       $            $        
                                      (815,466)            (342,171)
Depreciation and amortization        $            $         
                                      180,026             66,421
Capital expenditures                  $           $         
                                      90,492              72,279
                                      December 31, 2013    December 31, 2012
Backlog ^(1)                          $              $      
                                      27,794,212           10,928,818

     Backlog includes the value of new award commitments until work is
^(1) performed and revenue is recognized or until cancellation.

     Backlog may also fluctuate with currency movements.







Chicago Bridge & Iron Company N.V.
Reconciliation of Non-GAAP Supplemental Information
(in thousands, except per share data)
                                Three Months            Twelve Months
                                Ended December 31,      Ended December 31,
                                2013        2012        2013        2012
Adjusted income from
operations
 Income from operations         $210,426    $138,514    $684,508    $455,643
 Acquisition and integration    19,260      6,000       95,737      11,000
 related costs
 Adjusted income from           $229,686    $144,514    $780,245    $466,643
 operations
 Adjusted % of Revenue          7.7%        9.4%        7.0%        8.5%
Adjusted net income
attributable to CB&I
 Net income attributable to     $196,781    $ 89,617   $454,120    $301,655
 CB&I
 Acquisition and integration    12,134      3,900       73,316      7,143
 related costs, net of tax (1)
 Adjusted net income            $208,915    $ 93,517   $527,436    $308,798
 attributable to CB&I
Adjusted net income
attributable to CB&I per share
 Net income attributable to     $   1.80  $   0.91  $   4.23  $   3.07
 CB&I
 Acquisition and integration    0.11        0.04        0.68        0.07
 related costs, net of tax (1)
 Adjusted net income            $   1.91  $   0.95  $   4.91  $   3.14
 attributable to CB&I

     The three and twelve month periods ended December 31, 2013 include
     $19,260 and $95,737 of acquisition and integration related costs,
     respectively, and the twelve month period ended December 31, 2013
     includes $10,517 of acquisition related pre-closing financing costs and
     one-time financial commitments (both included in interest expense and
     recorded in Q1). These costs total $19,260 and $106,254, less the tax
     impact of $7,126 and $32,938, respectively. The per share amounts for the
     three and twelve month periods are based upon diluted weighted average
^(1) shares of 109,168 and 107,452, respectively.

     

     The three and twelve month periods ended December 31, 2012 include $6,000
     and $11,000 of acquisition and integration related costs, respectively,
     less the tax impacts of $2,100 and $3,857, respectively. The per share
     amounts for the three and twelve month periods are based upon diluted
     weighted average shares of 98,230 and 98,231, respectively.

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SOURCE CB&I

Website: http://www.cbi.com
Contact: Media: www.CBI.com, Investors: Christi Thoms, +1 832 513 1200
 
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