StockSelector.com
  Research, Select, & Monitor Sunday, October 21, 2018 4:47:45 PM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
CB&I$16.39$.271.67%

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 CB&I Announces Third Quarter 2017 Results
   Monday, October 30, 2017 4:15:00 PM ET

CB&I (CBI ) today announced financial results for the third quarter of 2017.

CB&I reported net income of $10 million, or $0.10 per diluted share, in the third quarter of 2017, compared to net income of $121.8 million, or $1.20 per diluted share, in the third quarter of 2016.

Net income for the third quarter of 2017 was impacted by restructuring charges of $27 million, or $0.17 per share, related to the company’s cost reduction program, and excess interest expense of $22 million, or $0.14 per share, due to accelerated amortization of debt issuance costs.

Continuing operations consist of CB&I’s Engineering & Construction (E&C) and Fabrication Services businesses. The results of the company’s Technology and former Engineered Products and Capital Services operations have been classified as discontinued operations for all periods presented.

"We have made significant progress on the decisive actions we announced last quarter, including our cost reduction program, the continued improvement of our project execution and risk management processes, and the intended sale of our Technology operations," said Patrick K. Mullen, President and Chief Executive Officer of CB&I. "Our cost reduction program is on track, with a positive impact on our financial performance already apparent. We are also extremely pleased with the sale process for our Technology operations and the interest from bidders on developing a long-term strategic alliance with CB&I.

"Our results this quarter were impacted by unusual items totaling $49 million, or $0.31 per share. We experienced continued cost pressure during the quarter, primarily on the IPL and Calpine power projects, with execution on our other projects continuing as planned. New awards were lower than expected, primarily within E&C, due to the delay of certain key projects. However, we have a significant pipeline and anticipate a strong fourth quarter and first half of 2018 for new awards."

Continuing Operations Revenue for the third quarter of 2017 was $1.7 billion, compared to revenue of $2.1 billion in the third quarter of 2016.

New awards in the third quarter of 2017 totaled $437 million, compared to $1.7 billion in the third quarter of last year. Backlog at September 30, 2017, was $10.7 billion, compared to backlog of $13.2 billion at September 30, 2016.

Engineering & Construction Operating Group E&C operating group revenue was $1.3 billion in the third quarter of 2017, compared to $1.7 billion in the year-ago quarter. The E&C group reported operating income of $13.1 million, compared to $126.8 million in the third quarter of 2016. Results were impacted by changes in estimated margins on two U.S. gas turbine power projects of $38 million and additional costs on U.S. LNG projects of approximately $16 million due in part to the direct effects of Hurricane Harvey. The E&C group’s new awards in the third quarter totaled $65.2 million, compared with $1.5 billion in the third quarter of 2016, and backlog as of September 30, 2017, was $9.2 billion.

Fabrication Services Operating Group Fabrication Services operating group revenue was $389.7 million compared to $467.0 million in the year-ago quarter. The Fabrication Services group reported operating income of $26.1 million compared to $27.8 million in the third quarter of 2016. The Fabrication Services group’s new awards in the third quarter were $371.8 million, compared with $215.3 million in the third quarter of 2016. Backlog as of September 30, 2017, was $1.5 billion.

Discontinued Operations The Technology operations revenue was $170.1 million, compared to $183.3 million in the year-ago quarter. Technology operations reported operating income of $61.2 million compared to $55.9 million in the third quarter of 2016.

Guidance The company currently expects revenue for the fourth quarter of 2017 to be between $1.8 and $2.0 billion and diluted earnings per share in the range of $0.50 to $0.60. The company’s updated guidance for the fourth quarter of 2017 includes continuing and discontinued operations but excludes the continuation of incremental interest expense and any additional restructuring charge that may be required. Guidance also excludes any significant benefits from the cost reduction program, which are expected to be fully realized in 2018.

Earnings Conference Call CB&I will host a conference call and webcast October 30, 2017, at 4:00 p.m. CDT (5:00 p.m. EDT) 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, and the conference call can be accessed by telephone at 1-800-301-8321 (U.S.) or 1-706-634-2259 (outside the U.S.) with conference ID # 6097289.

About CB&I CB&I (CBI ) is a leading provider of technology and infrastructure for the energy industry. With more than 125 years of experience, 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. The forward looking statements in this press release include: statements about CB&I’s new awards and backlog, to the extent these may be indicators of future revenue or profitability; the intended sale of the Technology operating group, including the timing with respect to the completion of that sale; the execution of activities on and completion of specific projects, including timing to complete, future productivity and cost to complete; estimates of percentage of completion and contract profits or losses.

When considering these and any other 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.

Investors: Scott Lamb, +1 832 513 1068, Scott.Lamb@CBI.com Media: Gentry Brann, +1 832 513 1031, Gentry.Brann@CBI.com

Chicago Bridge & Iron Company N.V.
Consolidated Statements of Operations
(in thousands, except per share data)
                                                                           Three Months                          Nine Months
                                                                           Ended September 30,                   Ended September 30,
                                                                           2017               2016               2017               2016
Revenue                                                                    $    1,737,764     $    2,137,877     $    4,668,690     $    6,200,713
Cost of revenue                                                            1,655,002          1,920,894          4,919,206          5,591,393
Gross profit (loss)                                                        82,762             216,983            (250,516)          609,320
% of Revenue                                                               4.8            %   10.1           %   (5.4)          %   9.8            %
Selling and administrative expense                                         51,458             62,913             173,594            190,207
% of Revenue                                                               3.0            %   2.9            %   3.7            %   3.1            %
Intangibles amortization                                                   1,891              1,937              5,771              6,451
Equity earnings                                                            (9,727)            (2,632)            (21,210)           (1,875)
Restructuring related costs                                                26,882             --                 30,882             --
Other operating (income) expense, net                                      (53)               189                (415)              1,112
Operating income (loss) from continuing operations                         12,311             154,576            (439,138)          413,425
% of Revenue                                                               0.7            %   7.2            %   (9.4)          %   6.7            %
Interest expense                                                           (5,288)            (1,586)            (9,036)            (4,666)
Interest income                                                            574                2,292              2,684              7,187
Income (loss) from continuing operations before taxes                      7,597              155,282            (445,490)          415,946
Income tax (expense) benefit                                               (3,112)            (22,206)           177,347            (83,280)
Net income (loss) from continuing operations                               4,485              133,076            (268,143)          332,666
Net income (loss) from discontinued operations                             7,061              35,343             (90,916)           88,263
Net income (loss)                                                          11,546             168,419            (359,059)          420,929
Less: Net income attributable to noncontrolling interests ($0, $930, $870  (1,507)            (46,659)           (31,666)           (68,405)
and $1,815 related to discontinued operations)
Net income (loss) attributable to CB&I                                     $    10,039        $    121,760       $    (390,725)     $    352,524
Net income (loss) attributable to CB&I per share (Basic):
Continuing operations                                                      $    0.03          $    0.86          $    (2.96)        $    2.57
Discontinued operations                                                    0.07               0.34               (0.91)             0.83
Total                                                                      $    0.10          $    1.20          $    (3.87)        $    3.40
Net income (loss) attributable to CB&I per share (Diluted):
Continuing operations                                                      $    0.03          $    0.86          $    (2.96)        $    2.54
Discontinued operations                                                    0.07               0.34               (0.91)             0.83
Total                                                                      $    0.10          $    1.20          $    (3.87)        $    3.37
Weighted average shares outstanding:
Basic                                                                      101,177            101,102            100,834            103,725
Diluted                                                                    101,736            101,863            100,834            104,555
Chicago Bridge & Iron Company N.V.
Segment Information
(in thousands)
                             Three Months Ended September 30,                   Nine Months Ended September 30,
                             2017                      2016                     2017                      2016
NEW AWARDS (1)                                % of                     % of                      % of                      % of
                                              Total                    Total                     Total                     Total
Engineering & Construction   $    65,181      15%      $   1,508,301   88%      $    2,787,690   71%      $    2,839,032   78%
Fabrication Services         371,769          85%      215,254         12%      1,121,137        29%      819,962          22%
Total                        $    436,950              $   1,723,555            $    3,908,827            $    3,658,994
REVENUE                                       % of                     % of                      % of                      % of
                                              Total                    Total                     Total                     Total
Engineering & Construction   $    1,348,033   78%      $   1,670,879   78%      $    3,409,081   73%      $    4,794,000   77%
Fabrication Services         389,731          22%      466,998         22%      1,259,609        27%      1,406,713        23%
Total                        $    1,737,764            $   2,137,877            $    4,668,690            $    6,200,713
OPERATING INCOME                              % of                     % of                      % of                      % of
(LOSS) FROM CONTINUING                        Revenue                  Revenue                   Revenue                   Revenue
OPERATIONS
Engineering & Construction   $    13,051      1.0%     $   126,824     7.6%     $    (505,855)   (14.8)%  $    323,891     6.8%
Fabrication Services         26,142           6.7%     27,752          5.9%     97,599           7.7%     89,534           6.4%
Total operating groups       39,193           2.3%     154,576         7.2%     (408,256)        (8.7)%   413,425          6.7%
Restructuring related costs  (26,882)                  --                       (30,882)                  --
Total                        $    12,311      0.7%     $   154,576     7.2%     $    (439,138)   (9.4)%   $    413,425     6.7%
BACKLOG (1)                  September 30, 2017        % of Total               December 31, 2016         % of Total
Engineering & Construction   $    9,190,401            86%                      $    9,998,322            85%
Fabrication Services         1,482,218                 14%                      1,818,963                 15%
Total                        $    10,672,619                                    $    11,817,285
(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.
Discontinued Operations Statements of Operations
(in thousands, except per share data)
                                               Three Months Ended September 30,
                                               2017                                                   2016
                                               Capital            Technology        Total             Capital            Technology        Total
                                               Services                                               Services
Revenue                                        $    --            $    170,143      $    170,143      $    530,912       $    183,321      $    714,233
Cost of revenue                                --                 103,345           103,345           490,758            113,890           604,648
Gross profit                                   --                 66,798            66,798            40,154             69,431            109,585
% of Revenue                                   --             %   39.3         %    39.3           %  7.6            %   37.9         %    15.3           %
Selling and administrative expense             --                 8,991             8,991             14,312             10,589            24,901
% of Revenue                                   --             %   5.3          %    5.3            %  2.7            %   5.8          %    3.5            %
Intangibles amortization                       --                 1,520             1,520             4,030              4,518             8,548
Equity earnings                                --                 (4,879)           (4,879)           --                 (1,609)           (1,609)
Other operating expense (income), net          --                 8                 8                 (1,201)            --                (1,201)
Operating income from discontinued             --                 61,158            61,158            23,013             55,933            78,946
operations
% of Revenue                                   --             %   35.9         %    35.9           %  4.3            %   30.5         %    11.1           %
Interest expense                               --                 (55,512)          (55,512)          (5,989)            (18,858)          (24,847)
Interest income                                --                 --                --                302                14                316
Income from discontinued operations            --                 5,646             5,646             17,326             37,089            54,415
before taxes
Income tax benefit (expense)                   5,166              (3,751)           1,415             (6,236)            (12,836)          (19,072)
Net income from discontinued operations        5,166              1,895             7,061             11,090             24,253            35,343
Less: Net income from discontinued operations  --                 --                --                (930)              --                (930)
attributable to noncontrolling interests
Net income from discontinued operations        $    5,166         $    1,895        $    7,061        $    10,160        $    24,253       $    34,413
attributable to CB&I
                                               Nine Months Ended September 30,
                                               2017                                                   2016
                                               Capital            Technology        Total             Capital            Technology        Total
                                               Services                                               Services
Revenue                                        $    1,114,655     $    454,840      $    1,569,495    $    1,655,583     $    491,858      $    2,147,441
Cost of revenue                                1,047,614          281,870           1,329,484         1,546,823          301,239           1,848,062
Gross profit                                   67,041             172,970           240,011           108,760            190,619           299,379
% of Revenue                                   6.0            %   38.0         %    15.3           %  6.6            %   38.8         %    13.9           %
Selling and administrative expense             29,541             27,079            56,620            39,499             33,436            72,935
% of Revenue                                   2.7            %   6.0          %    3.6            %  2.4            %   6.8          %    3.4            %
Intangibles amortization                       2,550              10,503            13,053            12,260             13,545            25,805
Equity earnings                                --                 (9,662)           (9,662)           --                 (8,030)           (8,030)
Loss on net assets sold                        64,817             --                64,817            --                 --                --
Other operating expense (income), net          504                38                542               (1,505)            4                 (1,501)
Operating (loss) income from discontinued      (30,371)           145,012           114,641           58,506             151,664           210,170
operations
% of Revenue                                   (2.7)          %   31.9         %    7.3            %  3.5            %   30.8         %    9.8            %
Interest expense                               (13,440)           (110,579)         (124,019)         (17,699)           (56,039)          (73,738)
Interest income                                16                 --                16                916                53                969
(Loss) income from discontinued                (43,795)           34,433            (9,362)           41,723             95,678            137,401
operations before taxes
Income tax expense                             (62,392)           (19,162)          (81,554)          (15,915)           (33,223)          (49,138)
Net (loss) income from discontinued            (106,187)          15,271            (90,916)          25,808             62,455            88,263
operations
Less: Net income from discontinued operations  (870)              --                (870)             (1,815)            --                (1,815)
attributable to noncontrolling interests
Net (loss) income from discontinued            $    (107,057)     $    15,271       $    (91,786)     $    23,993        $    62,455       $    86,448
operations attributable to CB&I
Chicago Bridge & Iron Company N.V.
Condensed Consolidated Balance Sheets
(in thousands)
                                                                    September 30,        December 31,
                                                                    2017                 2016
ASSETS
Current assets                                                      $        1,816,413   $        1,937,976
Equity investments                                                  66,164               35,541
Property and equipment, net                                         393,015              434,252
Goodwill and other intangibles, net                                 2,413,419            2,395,474
Assets of discontinued operations                                   1,103,888            1,986,480
Other non-current assets                                            1,284,114            1,049,697
Total assets                                                        $        7,077,013   $        7,839,420
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current maturities of long-term debt and other borrowings, net      $        2,079,913   $        911,410
Other current liabilities                                           2,981,531            3,062,222
Long-term debt, net                                                 --                   1,287,923
Liabilities of discontinued operations                              349,340              600,907
Other non-current liabilities                                       407,383              415,621
Shareholders’ equity                                                1,258,846            1,561,337
Total liabilities and shareholders’ equity                          $        7,077,013   $        7,839,420
Condensed Consolidated Statements of Cash Flows and Other Financial Data
(in thousands)
                                                                    Nine Months
                                                                    Ended September 30,
                                                                    2017                 2016
CASH FLOWS
Cash flows from operating activities                                $        (687,998)   $        495,041
Cash flows from investing activities                                747,038              (151,686)
Cash flows from financing activities                                (298,735)            (268,422)
Effect of exchange rate changes on cash and cash equivalents        76,408               (10,188)
(Decrease) increase in cash and cash equivalents                    (163,287)            64,745
Cash and cash equivalents, beginning of the year                    505,156              550,221
Cash and cash equivalents, end of the period                        341,869              614,966
Cash and cash equivalents, end of period - discontinued operations  --                   (16,412)
Cash and cash equivalents, end of period - continuing operations    $        341,869     $        598,554
OTHER FINANCIAL DATA
(Increase) decrease in receivables, net                             $        (197,532)   $        46,418
Change in contracts in progress, net                                34,994               (252,857)
Decrease in inventory                                               65,841               49,473
(Decrease) increase in accounts payable                             (48,801)             11,830
Change in contract capital                                          $        (145,498)   $        (145,136)
Depreciation and amortization                                       $        65,637      $        93,285
Capital expenditures                                                $        40,089      $        37,855

https://mma.prnewswire.com/media/592313/CB_I_LOGO.jpg

View original content with multimedia:http://www.prnewswire.com/news-releases/cbi-announces-third-quarter-2017-results-300545729.html

SOURCE CB&I

https://rt.prnewswire.com/rt.gif?NewsItemId=DA28280&Transmission_Id=201710301615PR_NEWS_USPR_____DA28280&DateId=20171030



Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2018 StockSelector.com. All rights reserved.