CB&I Reports Record Results for 2003.Energy Editors/Business Editors THE WOODLANDS Woodlands refers to several places:
Revenues and Net Income Show Continued Growth; Backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. Increases 21% Year over Year CB&I (NYSE NYSE See: New York Stock Exchange : CBI CBI abbr. cumulative book index CBI Confederation of British Industry CBI n abbr (= Confederation of British Industry) → C.E.O.E. ) today reported net income increased 32% to $66.0 million or $1.39 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the year ended Dec. 31, 2003, compared with $50.1 million or $1.12 per diluted share for 2002. Net income for the fourth quarter of 2003 increased 31% to $18.7 million or $0.39 per diluted share, compared with $14.3 million or $0.31 per diluted share for the comparable 2002 period. For the year ended Dec. 31, 2003, new business taken reached a record $1.7 billion, compared with $1.6 billion in 2002. New business taken during the fourth quarter of 2003 grew 8% to $400 million, compared with $370 million in the year-earlier period. New business during the quarter included storage tank projects in China, the Middle East, the Caribbean and the Caspian region, and process-related work in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Backlog at Dec. 31, 2003, increased 21% to $1.6 billion, compared with $1.3 billion at the end of 2002. "We're we're Contraction of we are. we're we are extremely pleased with CB&I's results in 2003," said Gerald Gerald - ["Gerald: An Exceptional Lazy Functional Programming Language", A.C. Reeves et al, in Functional Programming, Glasgow 1989, K. Davis et al eds, Springer 1990]. M. Glenn, CB&I's Chairman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "The record backlog we had going into 2003 led to significant revenue growth as projects were put in place in the field, and another year of record sales means we've we've Contraction of we have. we've have entered 2004 in a similar strong position. We are delivering excellent project execution, keeping our people safe and maintaining a solid balance sheet." Revenues in 2003 grew 40% to $1.6 billion, compared with $1.1 billion in 2002. Revenues for the fourth quarter of 2003 increased 43% to $471.5 million from $328.7 million in the fourth quarter of 2002. The increase in revenues year over year was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the strong backlog going into 2003, which produced significant revenue growth as projects moved into the field construction phase. For the year, revenues grew 21% in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , including a higher volume of process-related work. Revenues increased nearly 150% in the Company's Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , Africa,
Middle East (EAME n. 1. Uncle. ) segment, and grew more than 125% in the Asia Pacific
(AP) segment, due primarily to large projects now under way in China and
Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , but declined 21% in the Central and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. (CSA (1) (Canadian Standards Association, Toronto, Ontario, www.csa.ca) A standards-defining organization founded in 1919. It is involved in many industries, including electronics, communications and information technology. )
segment as a result of fewer new awards in certain Latin Lat·in n. 1. a. The Indo-European language of the ancient Latins and Romans and the most important cultural language of western Europe until the end of the 17th century. b. American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of markets. Gross profit in 2003 of $196.6 million represented a $41.0 million increase over 2002. Fourth quarter 2003 gross profit was $56.0 million, compared with $44.1 million in the comparable 2002 period. Gross profit as a percentage of revenues for both the fourth quarter and full-year 2003 fell slightly as a result of the timing and mix of projects being executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. . Income from operations in 2003 increased 33% to $103.3 million, compared with $77.7 million in 2002. Fourth quarter 2003 operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 37% to $30.2 million, compared with $21.9 million in the year-earlier period. For the year, higher revenues and effective project execution led to significantly better operating income in the North America, EAME and AP segments. Operating income declined in the CSA segment due primarily to lower revenues. No special charges or exit costs were recorded in 2003. In 2002, the Company reported exit costs of $1.0 million in the fourth quarter and $4.0 million for the full year. The Company's overall effective tax rate was higher in the fourth quarter and full year as a larger portion of 2003 earnings were generated in the United States. CB&I ended 2003 with cash and cash equivalents of $112.9 million, compared with $102.5 million at Dec. 31, 2002. The Company used a portion of its cash during the fourth quarter to buy out the ownership of a minority interest which had been acquired in a December December: see month. 2000 transaction. Capital expenditures for 2003, including $15.6 million for the completion of the Company's administrative office in The Woodlands, Texas, were $31.3 million, compared with $23.9 million in 2002. CB&I had cash in excess of debt of $36.0 million at Dec. 31, 2003. "CB&I's management team and employees are making good on our strategy to achieve sustainable growth in revenues, profitability and shareholder value," Glenn added. "Our acquisitions have strengthened our ability to provide a broad range of services in production, processing, storage and distribution to the key markets we serve. We've got the right team with the right tools and processes to consistently and safely deliver superior project execution to our customers anywhere in the world. We're optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our prospects for 2004, as demand continues to grow in our major end markets. We continue to actively seek additional acquisitions that will enable us to expand our capacity and deliver more comprehensive solutions to our customers." The Company is issuing the following guidance for new business taken, revenues and earnings per share (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) for 2004: new business taken is expected to be in a range of $1.8-$1.9 billion for full-year 2004; revenues are expected to be in a range of $350-$400 million for the first quarter and $1.7-$1.8 billion for full-year 2004; and EPS is expected to be in a range of $0.25-$0.28 for the first quarter and $1.55-$1.60 for full-year 2004. Any statements made in this release that are not based on historical fact are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. and represent management's best judgment as to what may occur in the future. The actual outcome and results are not guaranteed, are subject to risks, uncertainties and assumptions and may differ materially from what is expressed. A variety of factors could cause business conditions and results to differ materially from what is contained in the forward-looking statements including, but not limited to, the Company's ability to realize cost savings from its expected execution performance of contracts; the uncertain timing and the funding of new contract awards, and project cancellations Project cancellation hits around half of U.S. software development projects, whether developed for in-house corporate use or for sale as retail software. When a project is cancelled early on, it has little financial impact but if project sponsors wait until the project has gone and operating risks Operating risk The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk. ; cost overruns Noun 1. cost overrun - excess of cost over budget; "the cost overrun necessitated an additional allocation of funds in the budget" cost - the total spent for goods or services including money and time and labor on fixed priced contracts; changes in the costs of or delivery schedule for components and materials; increased competition; fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. revenues resulting from a number of factors, including the cyclic cyclic /cyc·lic/ (sik´lik) pertaining to or occurring in a cycle or cycles; applied to chemical compounds containing a ring of atoms in the nucleus. cy·clic or cy·cli·cal adj. 1. nature of the individual markets in which the Company's customers operate; lower than expected activity in the hydrocarbon hydrocarbon (hī'drōkär`bən), any organic compound composed solely of the elements hydrogen and carbon. The hydrocarbons differ both in the total number of carbon and hydrogen atoms in their molecules and in the proportion of hydrogen industry, demand from which is the largest component of the Company's revenue, or lower than expected growth in the Company's other primary end markets; the Company's ability to integrate and successfully operate acquired businesses and the risks associated with those businesses; and the ultimate outcome or effect of the pending FTC FTC See Federal Trade Commission (FTC). proceeding on the Company's business, financial condition and results of operations. Additional factors which could cause actual results to differ from such forward-looking statements are set forth in the Company's Prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. filed on Form 424B3 with the SEC on Jan. 23, 2004. The Company does not undertake to update any forward-looking statements contained herein, whether as a result of new information, future events or otherwise. CB&I is one of the world's leading engineering, procurement and construction  The introduction to this article is vague. To comply with Wikipedia's guidelines, it should be improved. companies, specializing in lump-sum turnkey See turnkey system. projects for customers that produce, process, store and distribute the
world's natural resources. With more than 60 locations and 10,000
employees throughout the world, CB&I capitalizes on its global
expertise and local knowledge to safely and reliably deliver projects
virtually anywhere. Information about CB&I is available at
www.CBIepc.com.
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CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
Three Months Twelve Months
Ended Dec. 31, Ended Dec. 31,
2003 2002 2003 2002
Revenues $471,536 $328,689 $1,612,277 $1,148,478
Cost of revenues 415,503 284,633 1,415,715 992,927
------- ------- --------- ---------
Gross profit 56,033 44,056 196,562 155,551
% of Revenues 11.9% 13.4% 12.2% 13.5%
Selling and
administrative
expenses 25,371 21,503 93,506 73,155
% of Revenues 5.4% 6.5% 5.8% 6.4%
Intangibles
amortization 611 718 2,548 2,529
Other operating
income, net (103) (1,067) (2,833) (1,818)
Exit costs - 971 - 3,972
------- ------- --------- ---------
Income from
operations 30,154 21,931 103,341 77,713
% of Revenues 6.4% 6.7% 6.4% 6.8%
Interest expense (1,686) (1,658) (6,579) (7,114)
Interest income 239 551 1,300 1,595
------- ------- --------- ---------
Income before
taxes and
minority interest 28,707 20,824 98,062 72,194
Income tax expense (8,740) (5,849) (29,713) (20,233)
------- ------- --------- ---------
Income before
minority interest 19,967 14,975 68,349 51,961
Minority interest in
income (1,269) (652) (2,395) (1,812)
------- ------- --------- ---------
Net income $ 18,698 $ 14,323 $ 65,954 $ 50,149
======= ======= ========= =========
Net income per share
Basic $ 0.40 $ 0.32 $ 1.46 $ 1.16
Diluted $ 0.39 $ 0.31 $ 1.39 $ 1.12
Weighted average shares
outstanding
Basic 46,247 44,314 45,315 43,177
Diluted 48,441 45,812 47,527 44,737
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CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
SEGMENT INFORMATION
(in thousands)
Three Months Ended
Dec. 31, Dec. 31,
2003 2002
NEW BUSINESS TAKEN(1) % of % of
Total Total
North America $246,269 62% $208,544 56%
Europe/Africa/Middle East 104,863 26% 116,520 32%
Asia Pacific 32,258 8% 27,545 7%
Central & South America 16,756 4% 17,461 5%
------- -------
Total $400,146 $370,070
======= =======
REVENUES % of % of
Total Total
North America $271,433 58% $211,173 64%
Europe/Africa/Middle East 100,535 21% 43,606 13%
Asia Pacific 68,621 14% 40,362 13%
Central & South America 30,947 7% 33,548 10%
------- -------
Total $471,536 $328,689
======= =======
INCOME/(LOSS) FROM OPERATIONS % of % of
Excluding Exit Costs Revenues Revenues
North America $ 16,857 6.2% $ 14,722 7.0%
Europe/Africa/Middle East 8,790 8.7% 1,343 3.1%
Asia Pacific (302) (0.4%) 1,675 4.1%
Central & South America 4,809 15.5% 5,162 15.4%
------- -------
Total $ 30,154 6.4% $ 22,902 7.0%
======= =======
EXIT COSTS $ - $ 971
======= =======
INCOME/(LOSS) FROM OPERATIONS
North America $ 16,857 $ 14,081
Europe/Africa/Middle East 8,790 1,221
Asia Pacific (302) 1,556
Central & South America 4,809 5,073
------- -------
Total $ 30,154 $ 21,931
======= =======
Twelve Months Ended
Dec. 31, Dec. 31,
2003 2002
NEW BUSINESS TAKEN(1) % of % of
Total Total
North America $1,105,369 65% $1,014,375 62%
Europe/Africa/Middle East 380,493 22% 375,897 23%
Asia Pacific 147,238 9% 139,907 8%
Central & South America 75,110 4% 110,949 7%
------- -------
Total $1,708,210 $1,641,128
========= =========
REVENUES % of % of
Total Total
North America $ 970,851 60% $ 801,624 70%
Europe/Africa/Middle East 329,947 20% 132,853 12%
Asia Pacific 218,201 14% 95,935 8%
Central & South America 93,278 6% 118,066 10%
------- -------
Total $1,612,277 $1,148,478
========= =========
INCOME/(LOSS) FROM OPERATIONS % of % of
Excluding Exit Costs Revenues Revenues
North America $ 67,762 7.0% $ 52,100 6.5%
Europe/Africa/Middle East 17,384 5.3% 3,603 2.7%
Asia Pacific 6,000 2.7% 2,270 2.4%
Central & South America 12,195 13.1% 23,712 20.1%
------- -------
Total $103,341 6.4% $ 81,685 7.1%
======= =======
EXIT COSTS $ - $ 3,972
======= =======
INCOME/(LOSS) FROM OPERATIONS
North America $ 67,762 $ 49,413
Europe/Africa/Middle East 17,384 3,032
Asia Pacific 6,000 1,950
Central & South America 12,195 23,318
------- -------
Total $103,341 $ 77,713
======= =======
(1) New business taken represents the value of new project
commitments received by the Company during a given period. Such
commitments are included in backlog until work is performed and
revenue recognized or until cancellation. Backlog may also
fluctuate with currency movements.
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CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Dec. 31, Dec. 31,
2003 2002
ASSETS
Current assets $502,272 $382,423
Property and equipment, net 124,505 109,271
Goodwill and other intangibles, net 253,213 191,459
Other non-current assets 42,572 57,283
------- -------
Total assets $922,562 $740,436
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $370,893 $287,070
Long-term debt 75,000 75,000
Other non-current liabilities 87,505 96,219
Shareholders' equity 389,164 282,147
------- -------
Total liabilities
and shareholders' equity $922,562 $740,436
======= =======
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CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
AND OTHER FINANCIAL DATA
(in thousands)
Twelve Months
Ended Dec. 31,
2003 2002
CASH FLOWS
Cash flows from operating activities $ 90,366 $ 72,030
Cash flows from investing activities (102,030) (36,957)
Cash flows from financing activities 22,046 16,985
------- -------
Increase in cash and cash
equivalents 10,382 52,058
Cash and cash equivalents,
beginning of the year 102,536 50,478
------- -------
Cash and cash equivalents,
end of the year $112,918 $102,536
======= =======
OTHER FINANCIAL DATA
Depreciation and amortization expense $ 21,431 $ 19,661
Capital expenditures 31,286 23,927
(Decrease)/increase in receivables, net 21,746 (26,874)
(Increase)/decrease in contracts in
progress, net (96,478) 18,389
Increase in accounts payable 49,048 10,690
------- -------
Change in contract capital $(25,684) $ 2,205
======= =======
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