CB&I Reports Third Quarter 2006 Results.Revenue Increases 55%; 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. Tops $4 Billion THE WOODLANDS Woodlands refers to several places:
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 of $32.4 million or $0.33 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 third quarter ended Sept. 30, 2006, compared with a net loss of $31.9 million or $0.33 per diluted share for the comparable period in 2005. "Backlog for the Company is performing well, and combined with very strong results in new orders for the quarter, we maintain our confidence in achieving the level of results expected by our shareholders," said Philip Philip, tetrarch of Ituraea Philip, d. A.D. 34, tetrarch of Ituraea, son of Herod the Great. He was perhaps the ablest of the Herod dynasty. He is mentioned in the Gospel of St. Luke. K. Asherman, CB&I's 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. . "This confidence is shared by our major stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. including customers, as evidenced by solid third quarter awards including the $1 billion Golden Pass LNG LNG (liquefied natural gas): see under natural gas. regasification terminal project in Texas; the financial community, which recently supported a substantial increase in our credit facility; and our employee base, which has increased to nearly 12,000 personnel worldwide. Our end markets in LNG, refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar , gas processing, storage tanks and the other major energy segments we serve are growing rapidly around the world, as producers continue to invest in the infrastructure needed to meet increasing global demand." Highlights of the Company's third quarter 2006 results include: [TABLE OMITTED] -- New Awards - New awards for the quarter were $1.95 billion, compared with $681.9 million in the third quarter of 2005. Significant awards during the quarter included the Golden Pass LNG terminal 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. , an LNG expansion project in 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. , and two hydrogen hydrogen (hī`drəjən) [Gr.,=water forming], gaseous chemical element; symbol H; at. no. 1; at. wt. 1.00794; m.p. −259.14°C;; b.p. −252.87°C;; density 0.08988 grams per liter at STP; valence usually +1. plants in the U.S. Backlog at Sept. 30, 2006, increased to $4.42 billion. -- Revenue - Revenue increased 55% to $861.0 million from $555.3 million in the third quarter of 2005. Geographically ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge , 51% of total revenue for the quarter was derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. 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. . Revenue increased 28% in North America due mainly to a larger volume of both process-related and storage work in the United States. Revenue in the 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 segment increased 165% due primarily to
progress on LNG work in the United Kingdom.
-- Cash and Cash Equivalents - The Company ended the quarter with cash and cash equivalents of $630.4 million, compared with $334.0 million at Dec. 31, 2005. CB&I is raising its full-year 2006 guidance for earnings, revenue and new awards. The Company anticipates that earnings per share will be in the range of $1.06 - $1.11, with revenue of $3.0 - $3.2 billion and new awards of $4.0 - $4.3 billion. 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 those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by any forward-looking statements. 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 performance of contracts; the uncertain timing and 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 price, target price or similar contracts; risks associated with percentage-of-completion accounting; the Company's ability to settle or negotiate unapproved un·ap·proved adj. Not approved or sanctioned: an unapproved vaccine; an unapproved protest march. change orders and claims; changes in the costs or availability of, or delivery schedule for, components, materials, labor or subcontractors; weather conditions that may affect performance and timeliness of completion, which could lead to increased costs and adversely affect the costs or availability of, or delivery schedule for, components, materials, labor or subcontractors; 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. revenue resulting from a number of factors, including the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. 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; lower than expected growth in the Company's primary end markets, including but not limited to LNG and clean fuels; risks inherent in the Company's acquisition strategy and its ability to obtain financing for proposed acquisitions; the Company's ability to integrate and successfully operate acquired businesses and the risks associated with those businesses; adverse outcomes of pending claims or litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. or the possibility of new claims or litigation, including but not limited to pending securities class action litigation, and the potential effect on the Company's business, financial condition and results of operations; the ultimate outcome or effect of the pending Federal Trade Commission order on the Company's business, financial condition and results of operations; two previously identified material weaknesses in the Company's internal control over financial reporting that could adversely affect the Company's ability to report its financial condition and results of operations accurately and on a timely basis; lack of necessary liquidity to finance expenditures prior to the receipt of payment for the performance of contracts and to provide bid and performance bonds and letters of credit securing the Company's obligations under its bids and contracts; proposed and actual revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to U.S. and non-U non-U adj. Chiefly British Not characteristic of the upper class, especially in language usage. [non- + U2. .S. tax laws, and interpretation of said laws, and U.S. tax treaties with non-U.S. countries (including The Netherlands Netherlands (nĕth`ərləndz), Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe. ), that seek to increase income taxes payable; political and economic conditions including, but not limited to, war, conflict or civil or economic unrest Unrest is a sociological phenomenon, for instance:
The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. or disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. in the economy in general. Additional factors which could cause actual results to differ materially from such forward-looking statements are described under "Risk Factors" as set forth in the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the SEC for the year ended Dec. 31, 2005. The Company does not undertake to update any forward-looking statements contained herein, whether as a result of new information, future events or otherwise. ABOUT CB&I CB&I executes on average more than 700 projects each year and 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. (EPC (1) (Entertainment PC) See HTPC.(2) (Electronic Product Code) A standard code for RFID tags administered by EPCglobal Inc. (www.epcglobalinc.org). ) companies, specializing in projects for customers that produce, process, store and distribute the world's natural resources. With more than 60 locations and approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 12,000 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.CBI.com.
CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
Three Months Nine Months
Ended Sept. 30, Ended Sept. 30,
2006 2005 2006 2005
Revenue $860,983 $555,337 $2,251,766 $1,582,895
Cost of revenue 784,639 569,032 2,042,504 1,493,573
------- ------- --------- ---------
Gross profit (loss) 76,344 (13,695) 209,262 89,322
% of Revenue 8.9% (2.5%) 9.3% 5.6%
Selling and
administrative
expenses 34,136 22,739 102,618 76,518
% of Revenue 4.0% 4.1% 4.6% 4.8%
Intangibles
amortization 133 385 1,444 1,157
Other operating
loss (income), net 175 (601) (259) (2,334)
------- ------- --------- ---------
Income (loss) from
operations 41,900 (36,218) 105,459 13,981
% of Revenue 4.9% (6.5%) 4.7% 0.9%
Interest expense (1,269) (1,781) (5,982) (6,694)
Interest income 5,717 1,589 12,705 4,393
------- ------- --------- ---------
Income (loss)
before taxes and
minority interest 46,348 (36,410) 112,182 11,680
Income tax (expense)
benefit (11,953) 5,870 (29,728) (10,251)
------- ------- --------- ---------
Income (loss) before
minority interest 34,395 (30,540) 82,454 1,429
Minority interest in
income (1,963) (1,340) (4,068) (2,614)
------- ------- --------- ---------
Net income (loss) $ 32,432 $(31,880) $ 78,386 $ (1,185)
======= ======= ========= =========
Net income (loss)
per share
Basic $ 0.34 $ (0.33) $ 0.81 $ (0.01)
Diluted $ 0.33 $ (0.33) $ 0.79 $ (0.01)
Weighted average shares
outstanding
Basic 96,581 97,754 97,059 97,496
Diluted 98,325 97,754 98,849 97,496
CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
SEGMENT INFORMATION
(in thousands)
Three Months Ended
Sept. 30, Sept. 30,
2006 2005
NEW AWARDS(a) % of % of
Total Total
North America $1,378,001 71% $ 368,152 54%
Europe/Africa/Middle East 304,088 16% 193,276 28%
Asia Pacific 237,892 12% 68,869 10%
Central & South America 27,348 1% 51,638 8%
------- -------
Total $1,947,329 $ 681,935
======= =======
Three Months Ended
Sept. 30, Sept. 30,
2006 2005
REVENUE % of % of
Total Total
North America $ 436,225 51% $ 340,127 61%
Europe/Africa/Middle East 341,568 40% 129,055 23%
Asia Pacific 53,021 6% 64,902 12%
Central & South America 30,169 3% 21,253 4%
------- -------
Total $ 860,983 $ 555,337
======= =======
INCOME (LOSS) FROM OPERATIONS % of % of
Revenue Revenue
North America $ 22,980 5.3% $ (17,059) (5.0%)
Europe/Africa/Middle East 14,689 4.3% (26,024) (20.2%)
Asia Pacific 4,210 7.9% 4,324 6.7%
Central & South America 21 0.1% 2,541 12.0%
------- -------
Total $ 41,900 4.9% $ (36,218) (6.5%)
======= =======
Nine Months Ended
Sept. 30, Sept. 30,
2006 2005
NEW AWARDS(a) % of % of
Total Total
North America $2,429,669 70% $1,147,675 44%
Europe/Africa/Middle East 620,054 18% 1,110,771 42%
Asia Pacific 307,302 9% 263,611 10%
Central & South America 99,558 3% 116,724 4%
--------- ---------
Total $3,456,583 $2,638,781
========= =========
Nine Months Ended
Sept. 30, Sept. 30,
2006 2005
REVENUE % of % of
Total Total
North America $1,201,932 53% $1,000,327 63%
Europe/Africa/Middle East 801,257 36% 370,874 23%
Asia Pacific 162,353 7% 153,817 10%
Central & South America 86,224 4% 57,877 4%
--------- ---------
Total $2,251,766 $1,582,895
========= =========
INCOME (LOSS) FROM OPERATIONS % of % of
Revenue Revenue
North America $ 47,343 3.9% $ 23,617 2.4%
Europe/Africa/Middle East 43,795 5.5% (22,074) (6.0%)
Asia Pacific 10,518 6.5% 7,050 4.6%
Central & South America 3,803 4.4% 5,388 9.3%
--------- ---------
Total $ 105,459 4.7% $ 13,981 0.9%
========= =========
(a) New awards represent the value of new project commitments
received by the Company during a given period. These
commitments are included in backlog until work is performed and
revenue is recognized or until cancellation. Backlog may also
fluctuate with currency movements.
CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Sept. 30, Dec. 31,
2006 2005
ASSETS
Current assets $1,362,636 $ 950,603
Property and equipment, net 180,168 137,718
Goodwill and other intangibles, net 256,031 257,991
Other non-current assets 37,708 31,507
--------- ---------
Total assets $1,836,543 $1,377,819
========= =========
LIABILITIES, REDEEMABLE COMMON
STOCK AND SHAREHOLDERS' EQUITY
Current liabilities $1,173,332 $ 758,643
Long-term debt -- 25,000
Other non-current liabilities 117,517 110,508
Redeemable common stock 38,107 --
Shareholders' equity 507,587 483,668
--------- ---------
Total liabilities, redeemable
common stock and shareholders'
equity $1,836,543 $1,377,819
========= =========
CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
AND OTHER FINANCIAL DATA
(in thousands)
Nine Months
Ended Sept. 30,
2006 2005
CASH FLOWS
Cash flows from operating activities $ 414,554 $ 49,880
Cash flows from investing activities (58,424) (24,034)
Cash flows from financing activities (59,734) (34,659)
------- -------
Increase/(decrease) in cash and
cash equivalents 296,396 (8,813)
Cash and cash equivalents,
beginning of the year 333,990 236,390
------- -------
Cash and cash equivalents,
end of the period $ 630,386 $ 227,577
======= =======
OTHER FINANCIAL DATA
Depreciation and amortization expense $ 20,245 $ 13,340
Capital expenditures $ 60,690 $ 26,066
Increase in receivables, net $(130,339) $(115,252)
Decrease in contracts in progress,
net 304,365 100,772
Increase in non-current
contract retentions (7,466) (1,789)
Increase in accounts payable 130,224 24,489
------- -------
Change $ 296,784 $ 8,220
======= =======
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