This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

KBR Announces Fourth Quarter And Full Year 2012 Results

KBR’s Annual Report on Form 10-K dated February 20, 2013, recent Current Reports on Forms 8-K, and other Securities and Exchange Commission filings discuss some of the important risk factors that KBR has identified that may affect the business, results of operations and financial condition. KBR undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

     
KBR, Inc.: Condensed Consolidated Statements of Income
(Millions, except per share data) (Unaudited)

 

 
Three Months Ended
December 31, December 31, September 30,
  2012     2011     2012  
Revenue:
Hydrocarbons $ 943 $ 989 $ 1,119
Infrastructure, Government and Power 462 707 433
Services 441 378 419
Ventures 14 17 18
Other     6       5       3  
Total revenue     1,866       2,096       1,992  
Business group income (loss):
Hydrocarbons 174 99 191
Infrastructure, Government and Power (22 ) 55 (149 )
Services (44 ) 15 -
Ventures 7 12 13
Other     35       3       (2 )
Total business group income     150       184       53  
Unallocated costs:
Labor cost absorption (22 ) 3 (8 )
General and administrative     (59 )     (51 )     (56 )
Operating income (loss)     69       136       (11 )
Interest expense, net (1 ) (5 ) (2 )
Foreign currency losses, net (2 ) (1 ) (2 )
Other non-operating expense     (1 )     -       -  
Income (loss) before income taxes and noncontrolling interests 65 130 (15 )
Provision for income taxes     (13 )     (25 )     (45 )
Net income (loss) 52 105 (60 )
Net income attributable to noncontrolling interests     (22 )     (15 )     (21 )
Net income (loss) attributable to KBR   $ 30     $ 90     $ (81 )
 
Net income (loss) attributable to KBR per share:
Basic $ 0.20 $ 0.60 $ (0.55 )
Diluted 0.20 0.60 (0.55 )
 
Basic weighted average shares outstanding 147 149 147
Diluted weighted average shares outstanding 148 150 147
 
Cash dividends declared per share $ 0.13 $ 0.05 $ 0.05

 

   
KBR, Inc.: Condensed Consolidated Statements of Income
(Millions, except per share data) (Unaudited)
 
Twelve Months Ended
December 31,
  2012     2011  
Revenue:
Hydrocarbons $ 4,300 $ 4,258
Infrastructure, Government and Power 1,904 3,328
Services 1,633 1,590
Ventures 61 65
Other     23       20  
Total revenue     7,921       9,261  
Business group income (loss):
Hydrocarbons 601 408
Infrastructure, Government and Power (104 ) 266
Services (16 ) 58
Ventures 37 42
Other     38       9  
Total business group income     556       783  
Unallocated costs:
Labor cost absorption (35 ) 18
General and administrative     (222 )     (214 )
Operating income     299       587  
Interest expense, net (7 ) (18 )
Foreign currency gains (losses), net (2 ) 3
Other non-operating expense     (2 )     -  
Income before income taxes and noncontrolling interests 288 572
Provision for income taxes     (86 )     (32 )
Net income 202 540
Net income attributable to noncontrolling interests     (58 )     (60 )
Net income attributable to KBR   $ 144     $ 480  
 
Net income attributable to KBR per share:
Basic $ 0.97 $ 3.18
Diluted 0.97 3.16
 
Basic weighted average shares outstanding 148 150
Diluted weighted average shares outstanding 149 151
 
Cash dividends declared per share $ 0.28 $ 0.20

 

   
KBR, Inc.: Condensed Consolidated Balance Sheets
(Millions) (Unaudited)
 
December 31, December 31,
      2012       2011  
Assets
Current assets:
Cash and equivalents $ 1,053 $ 966
Receivables:
Accounts receivable, net of allowance for bad debts of $15 and $24 1,196 1,200
Unbilled receivables on uncompleted contracts     704       454  
Total receivables 1,900 1,654
Current Deferred income taxes 251 297
Other current assets     464       518  
Total current assets 3,668 3,435
Property, plant and equipment, net of accumulated
depreciation of $356 and $364 390

384

Goodwill 779 951
Intangible assets, net 99 113
Equity in and advances to related companies 217 190
Noncurrent deferred tax asset 203 128
Noncurrent unbilled receivables on uncompleted contracts 294 313
Other noncurrent assets     117       152  
Total assets   $ 5,767     $ 5,666  
 
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 756 $ 761
Due to former parent, net 49 53
Advanced billings on uncompleted contracts 536 618
Reserve for estimated losses on uncompleted contracts 56 22
Employee compensation and benefits 242 226
Current non-recourse project-finance debt of a variable interest entity 10 10
Other current liabilities     628       587  
Total current liabilities 2,277 2,277
Noncurrent employee compensation and benefits 511 470
Noncurrent non-recourse project-finance debt of a variable interest entity 84 88
Other noncurrent liabilities 217 177
Noncurrent income tax payable 90 141
Noncurrent deferred tax liability     77       71  
Total liabilities     3,256       3,224  
KBR shareholders' equity
Preferred stock - -
Common stock - -
Paid-in-capital in excess of par 2,049 2,005
Accumulated other comprehensive loss (610 ) (548 )
Retained earnings 1,709 1,607
Treasury stock     (606 )     (569 )
Total KBR shareholders' equity 2,542 2,495
Noncontrolling interests     (31 )     (53 )
Total shareholders' equity     2,511       2,442  
Total liabilities and shareholders' equity   $ 5,767     $ 5,666  

 

   
KBR, Inc.: Condensed Consolidated Statements of Cash Flows
(Millions) (Unaudited)
 
Twelve Months Ended
December 31,
      2012       2011  
Cash flows from operating activities:
Net income $ 202 $ 540
Adjustments to reconcile net income to net cash provided by (used in) operations:
Depreciation and amortization 65 71
Equity earnings of unconsolidated affiliates (151 ) (158 )
Deferred income tax expense (benefit) 18 (173 )
Gain on sale of assets, net (32 ) (3 )
Impairment of goodwill & long-lived assets 180 -
Other 35 17
Changes in operating assets and liabilities:
Receivables (9 ) 265
Unbilled receivables on uncompleted contracts (238 ) (32 )
Accounts payable (14 ) (110 )
Advanced billings on uncompleted contracts (93 ) 61
Accrued employee compensation and benefits (8 ) 31
Reserve for loss on uncompleted contracts 34 (4 )
Collection (repayment) of advances from (to) unconsolidated affiliates, net (6 ) 14
Distribution of earnings from unconsolidated affiliates 108 182
Other, net     51       (51 )
Total cash flows provided by operating activities     142       650  
Cash flows from investing activities:
Capital expenditures (75 ) (83 )
Acquisition of business, net of cash acquired (3 ) -
Proceeds from sale of assets and investments 127 6
(Investment in) / return of capital from equity method joint ventures     3       (11 )
Total cash flows provided by (used in) investing activities     52       (88 )
Cash flows from financing activities:
Acquisition of noncontrolling interest - (178 )
Payments to reacquire common stock (40 ) (118 )
Distributions to noncontrolling interests, net (36 ) (63 )
Payments of dividends to shareholders (37 ) (30 )
Net proceeds from issuance of stock 7 7
Payments on long-term borrowings (14 ) (15 )
Excess tax benefits from stock-based compensation 4 3
Return of cash collateral on letters of credit, net     -       17  
Total cash flows used in financing activities     (116 )     (377 )
Effect of exchange rate changes on cash 9 (5 )
Increase in cash and equivalents     87       180  
Cash and equivalents at beginning of period     966       786  
Cash and equivalents at end of period   $ 1,053     $ 966  
   

KBR, Inc.: Revenue and Operating Results by Business Unit

(Millions)(Unaudited)

 
Three Months Ended
December 31, December 31, September 30,
Revenue:     2012       2011       2012  
Hydrocarbons:
Gas Monetization $ 618 $ 687 $ 808
Oil and Gas 109 116 118
Downstream 166 139 137
Technology     50       47       56  
Total Hydrocarbons     943       989       1,119  
Infrastructure, Government and Power
North American Government and Logistics 187 409 156
International Government, Defence and Support Services 85 118 84
Infrastructure 58 58 65
Minerals 18 59 49
Power and Industrial     114       63       79  
Total Infrastructure, Government and Power     462       707       433  
Services 441 378 419
Ventures 14 17 18
Other     6       5       3  
Total revenue   $ 1,866     $ 2,096     $ 1,992  
 
Business group income (loss):
Hydrocarbons:
Gas Monetization $ 125 $ 65 $ 147
Oil and Gas 25 23 29
Downstream 35 19 13
Technology     25       22       30  
Total job income 210 129 219
Loss on sales of assets - (1 ) -
Divisional overhead     (36 )     (29 )     (28 )
Total Hydrocarbons     174       99       191  
 
Infrastructure, Government and Power:
North American Government and Logistics 28 45 19
International Government, Defence and Support Services 26 50 25
Infrastructure 13 12 15
Minerals (57 ) (19 ) (4 )
Power and Industrial     7       6       7  
Total job income 17 94 62
Impairment of goodwill - - (178 )
Loss on sales of assets (3 ) - -
Divisional overhead     (36 )     (39 )     (33 )
Total Infrastructure, Government and Power     (22 )     55       (149 )
 
Services:
Job income (30 ) 30 15
Gain on sales of assets - 1 -
Divisional overhead     (14 )     (16 )     (15 )
Total Services     (44 )     15       -  
 
Ventures:
Job income 8 13 14
Divisional overhead     (1 )     (1 )     (1 )
Total Ventures     7       12       13  
 
Other:
Job income 5 4 1
Gain on sales of assets 33 1 -
Impairment of long-lived assets - - (2 )
Divisional overhead     (3 )     (2 )     (1 )
Total Other     35       3       (2 )
Total business group income   $ 150     $ 184     $ 53  
   

KBR, Inc.: Revenue and Operating Results by Business Unit (Millions) (Unaudited)

 

Twelve Months Ended
December 31,
Revenue:     2012       2011  
Hydrocarbons:
Gas Monetization $ 3,040 $ 3,044
Oil and Gas 483 488
Downstream 575 557
Technology     202       169  
Total Hydrocarbons     4,300       4,258  
Infrastructure, Government and Power
North America Government and Logistics 725 2,198
International Government, Defence and Support Services 360 378
Infrastructure 255 246
Minerals 192 264
Power and Industrial     372       242  
Total Infrastructure, Government and Power     1,904       3,328  
Services 1,633 1,590
Ventures 61 65
Other     23       20  
Total revenue   $ 7,921     $ 9,261  
 
Business group income (loss):
Hydrocarbons:
Gas Monetization $ 445 $ 257
Oil and Gas 115 104
Downstream 75 77
Technology     94       75  
Total job income 729 513
Gain on sales of assets - 1
Division overhead     (128 )     (106 )
Total Hydrocarbons     601       408  
 
Infrastructure, Government and Power:
North America Government and Logistics 67 212
International Government, Defence and Support Services 113 128
Infrastructure 59 62
Minerals (56 ) (2 )
Power and Industrial     34       29  
Total job income 217 429
Impairment of goodwill (178 ) -
Loss on sales of assets (1 ) (1 )
Division overhead     (142 )     (162 )
Total Infrastructure, Government and Power     (104 )     266  
 
Services:
Job income 42 124
Gain on sales of assets - 1
Division overhead     (58 )     (67 )
Total Services     (16 )     58  
 
Ventures:
Job income 40 45
Gain on sales of assets - 1
Division overhead     (3 )     (4 )
Total Ventures     37       42  
 
Other:
Job income 15 16
Impairment of long-lived assets (2 ) -
Gain on sales of assets 33 1
Division overhead     (8 )     (8 )
Total Other     38       9  
Total business group income   $ 556     $ 783  
     

KBR, Inc.: Backlog Information (a)

(Millions) (Unaudited)
 
 
December 31, September 30, December 31,
      2012     2012     2011
Hydrocarbons:
Gas Monetization $ 7,745 $ 8,333 $ 3,880
Oil and Gas 215 193 289
Downstream 740 832 546
Technology     399     235     258
Total Hydrocarbons     9,099     9,593     4,973
 
Infrastructure, Government and Power:
North American Government and Logistics 645 458 899
International Government, Defence and Support Services 975 915 1,086
Infrastructure 205 228 265
Minerals 131 103 237
Power and Industrial     868     510     777
Total Infrastructure, Government and Power     2,824     2,214     3,264
 
Services 2,025 2,033 1,766
Ventures     983     982     928
Total backlog (b)   $ 14,931   $ 14,822   $ 10,931
 

(a) Backlog is presented differently depending on whether the contract is consolidated by KBR or is accounted for under the equity method of accounting. Backlog related to consolidated projects is presented as 100% of the expected revenue from the project. Backlog generally includes total expected revenue in backlog when a contract is awarded and/or the scope is definitized. Where contract duration is indefinite, projects included in backlog are limited to the estimated amount of expected revenue within the following twelve months. Certain contracts provide maximum dollar limits, with actual authorization to perform work under the contract being agreed upon on a periodic basis with the customer. In these arrangements, only the amounts authorized are included in backlog. For projects where KBR acts solely in a project management capacity, KBR only includes the management fee revenue of each project in backlog. For certain long-term service contracts with a defined contract term, such as those associated with privately financed projects, the amount included in backlog is limited to five years.

3 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,265.99 +109.14 0.64%
S&P 500 2,011.36 +9.79 0.49%
NASDAQ 4,593.4250 +31.2360 0.68%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs