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

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

Earnings per Share up 30% over Q4 2011, 2012 New Awards of $7.3 billion

THE WOODLANDS, Texas--(BUSINESS WIRE)-- CB&I (NYS: 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 (NYS: 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."

(in thousands, except per share data)
Three MonthsTwelve Months
Ended December 31,Ended December 31,
 2012  2011  2012  2011 
Cost of revenue1,339,8001,108,6074,786,4993,980,306
Gross profit197,668146,615698,707570,236
% of Revenue12.9%11.7%12.7%12.5%
Selling and administrative expense59,46449,661227,948205,550
% of Revenue3.9%4.0%4.2%4.5%
Intangibles amortization4,4887,22922,61326,302
Other operating expense, net6,61830410,43474
Equity earnings(11,416)(9,649)(17,931)(16,887)
Income from operations138,51499,070455,643355,197
% of Revenue9.0%7.9%8.3%7.8%
Interest expense(7,837)(3,330)(19,606)(11,030)
Interest income1,5922,3008,0297,796
Income before taxes132,26998,040444,066351,963
Income tax expense(35,277)(27,512)(127,003)(96,765)
Net income96,99270,528317,063255,198
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:
Weighted average shares outstanding:
Cash dividends on shares:
Per Share$0.05$0.05$0.20$0.20

(in thousands)
Three Months Ended December 31, Twelve Months Ended December 31, 
20122011 20122011
% of% of% of% of
NEW AWARDS*TotalTotalTotalTotal
Steel Plate Structures$921,34432%$281,82236%$2,495,35834%$4,079,59960%
Project Engineering and Construction1,785,14163%337,13544%4,083,89156%2,190,27232%
Lummus Technology 144,2515% 153,45020% 726,72110% 537,8448%
% of% of% of% of
Steel Plate Structures$541,64435%$475,73938%$1,957,68136%$1,812,18040%
Project Engineering and Construction847,72955%653,56152%3,040,22955%2,289,78850%
Lummus Technology 148,09510% 125,92210% 487,2969% 448,57410%
% of% of% of% of
INCOME FROM OPERATIONSRevenueRevenueRevenueRevenue
Steel Plate Structures$54,64910.1%$39,5868.3%$192,5939.8%$167,2839.2%
Project Engineering and Construction42,9455.1%29,4844.5%136,6894.5%91,5764.0%
Lummus Technology 40,92027.6% 30,000