-
2013 EPS earnings guidance range revised to $2.55 to $2.90
-
Backlog book-to-bill of 1.1, excluding FX impact of $611 million
-
Job income up 8% and job income margins up 153 basis points,
year-over-year
-
Continued solid balance sheet with $800 million in cash and
equivalents
HOUSTON--(BUSINESS WIRE)--Jul. 25, 2013--
KBR (NYSE:KBR) announced today that second quarter 2013 net income
attributable to KBR was $90 million, or $0.61 per diluted share,
compared to net income attributable to KBR of $104 million, or $0.70 per
diluted share, in the second quarter of 2012.
Consolidated revenue in the second quarter of 2013 was $2.0 billion
compared to $2.1 billion in the second quarter of 2012. Operating income
in the second quarter of 2013 was $123 million compared to $129 million
in the prior year second quarter.
“KBR delivered solid project execution in the second quarter, driving
job income and job income margins up 8% and 153 basis points
year-over-year, respectively,” said
Bill Utt
, Chairman, President, and
Chief Executive Officer of KBR. “We also made strong progress on
bookings in North America, with key strategic wins in Downstream with
nearly $1 billion in EPC awards in ammonia and ethylene, with the
technology licenses awarded related to these downstream wins, and with a
North American FEED award for the Pacific Northwest LNG project in
Canada in our Gas Monetization business. These wins help to affirm KBR’s
position as a premiere North American contractor.”
Business Discussion (All comparisons are second quarter 2013
versus second quarter 2012, unless otherwise noted).
Hydrocarbons Results
Hydrocarbons revenue was $955 million, down $167 million, or 15%.
Hydrocarbons job income was $177 million, up $13 million, or 8%.
-
Gas Monetization job income was $101 million, up $7 million, or 7%,
primarily related to continued strong execution and increased volumes
at two LNG projects. Partially offsetting the increase was the
substantial completion of another LNG project.
-
Oil and Gas job income was $26 million, down $12 million, or 32%.
Increased work volumes on the Shah Deniz and GDF Suez Bonaparte
projects was more than offset by GVA license fees of $8 million booked
in the second quarter of 2012 for several semi-submersible hulls which
did not recur in the second quarter of 2013, as well as lower work
volumes from the completion or near completion of several offshore
projects.
-
Downstream job income was $22 million, up $9 million, or 69%,
primarily related to increased profits from an ethylene project in
Uzbekistan, a gasifier FEED in Saudi Arabia, increased work volumes at
the KBR-AMCDE entity in Saudi Arabia as well as the start of the new
Dyno Nobel
ammonia project and a new ethylene project in the United
States. Partially offsetting the increase was lower work volumes from
the completion or near completion of several projects in the United
States.
-
Technology job income was $28 million, up $9 million, or 47%,
primarily related to several new ammonia projects in the United
States, Bolivia, Nigeria, Indonesia, India and Hungary, as well as an
ethylene project in the United States and a propylene project in
China. Partially offsetting the increase was lower work volumes from
the completion of ammonia projects in Brazil and China and a VCC
project in Russia.
Infrastructure, Government and Power (IGP) Results
IGP revenue was $392 million, down $99 million, or 20%. IGP job income
was $62 million, down $1 million, or 2%.
-
North American Government and Logistics (NAGL) job income was $14
million, up $9 million, or 180%. The second quarter 2012 included a
net negative $18 million impact due to the adverse Tamimi Global
Company, Ltd. judgment and a gain for higher cost recoveries, both
related to the LogCAP III contract. Partially offsetting the increase
was reduced LogCAP III project close-out recoveries and lower work
volumes on the LogCAP IV contract.
-
International Government, Defence and Support Services (IGDSS) job
income was $31 million, up $5 million, or 19%, primarily related to
increased income on the Afghanistan ISP project and the new Joint
Operational Fuel System contract. Partially offsetting the increase
was the completion of the Temporary Deployable Accommodations project
in Afghanistan.
-
Infrastructure job income was $8 million, down $8 million, or 50%.
Higher activity on the Doha Expressway project in Qatar was more than
offset by lower work volumes on water, transportation and facilities
projects, primarily in Australia.
-
Power and Industrial (P&I) job income was $6 million, down $4 million,
or 40%. Higher activity on a waste-to-energy expansion project and
work performed on an emissions control EPC project was more than
offset by lower work volumes from the substantial completion of
engineering activities on a coal gasification project and the
completion of an industrial project in Louisiana.
-
Minerals job income was $3 million, down $3 million, or 50%, primarily
related to the completion of several minerals projects in the United
States and Australia as well as decreased activity on the Hope Downs 4
iron ore project in Australia.
Services Results
Services revenue was $622 million, up $197 million, or 46%. Services job
income was $38 million, up $9 million, or 31%, primarily related to
increased activity on several module fabrication and turnaround projects
in Canada as well as increased work activity in Industrial Services and
Building Group.
Ventures Results
Ventures job income was $12 million, up $2 million, or 20%, primarily
related to lower maintenance costs at a project in the United Kingdom.
Corporate
Corporate general and administrative expense, including $11 million
related to the company’s ERP implementation, was $63 million, up $11
million, or 21%.
Second quarter of 2013 labor cost absorption expense was $17 million,
which included approximately $5 million in expenses related to the
closure of an office. An additional $2 million in expenses associated
with the office closure was allocated to other overheads.
The effective tax rate for the second quarter 2013 was approximately 12%
primarily due to favorable tax rate differentials on foreign earnings
and tax reserve releases related to final negotiations of transfer
pricing agreements.
Total cash used in operating activities in the second quarter of 2013
was $4 million, which included approximately $108 million paid by KBR
for Pemex’s draw on performance bonds related to the EPC 1 dispute,
which KBR disclosed in a Form 8-K filing in June, 2013.
During the second quarter of 2013, KBR had capital expenditures of $20
million, pension contributions of $5 million, and quarterly dividend
payments of $12 million for total cash deployment of $37 million.
Updated Full Year 2013 Guidance
-
GAAP earnings per diluted share range revised to $2.55 to $2.90
(previously $2.45 to $2.90)
-
Corporate general and administrative expense range reduced to between
$230 million and $240 million (previous range of $230 million to $250
million)
-
Effective tax rate range for the second half of 2013 between 24% and
26%
Significant Achievements and Awards
-
KBR was awarded an approximately $600 million contract by Incitec
Pivot Limited’s U.S. business,
Dyno Nobel
, to provide engineering,
procurement and construction (EPC) services, as well as technology
licensing and equipment for an ammonia plant to be built in Waggaman,
Louisiana. The 800,000 metric tons of ammonia per annum facility will
be designed using KBR’s Purifier™ technology.
-
KBR was awarded an approximately $250 million EPC contract by an
undisclosed client for an ammonia plant to be constructed in North
America.
-
KBR was awarded an approximately $100 million EPC contract by an
undisclosed client for two new ethylene furnaces utilizing KBR’s
SCORE™ technology in North America.
-
KBR, partnered with JGC Corporation, was awarded a contract by Pacific
NorthWest LNG Ltd., a subsidiary of Malaysia’s state-owned oil company
(PETRONAS) and Japan Petroleum Exploration Co., Ltd. to execute
front-end engineering and design and early detailed engineering work
for a world-scale LNG export facility at Lelu Island near Prince
Rupert, British Columbia. The contract calls for FEED and early
detailed engineering work for a two-train LNG plant with a yearly
capacity of 12 million tons and associated shipping facilities,
including utilities, storage, loading, ship berthing and personnel
accommodation facilities.
-
KBR was awarded a contract by INVISTA, a global nylon producer, to
provide construction services for their next-generation manufacturing
technology production facility located in Orange, Texas. Under the
contract, KBR will provide pre-construction and multi-discipline
construction services for mechanical, equipment settings, structural
steel, electrical and instrumentation.
-
KBR was awarded a contract by the London Mayor’s Office for Policing
and Crime to provide facilities management integrator services to the
Metropolitan Police Service. The contract includes procuring, managing
and auditing the facilities management supply chain on behalf of the
Metropolitan Police Service. KBR will also design and manage a
building management system to reduce overall maintenance costs to the
metropolitan police and establish and manage a facilities management
call centre.
-
KBR was awarded in July, 2013 a $134 million contract by the U.S. Army
Corps of Engineers, Europe District to construct the facilities
necessary to support Europe’s first land-based ballistic missile
defense system at Romania’s Deveselu Air Base. Under this contract,
KBR will re-locate a four-story radar deckhouse structure from the
East Coast of the United States to Romania. In Romania, KBR will build
all of the various facilities and infrastructure required to support
the Aegis Ashore weapon system including roads, support buildings,
communications, security and utilities.
KBR is a global engineering, construction and services company
supporting the energy, hydrocarbons, power, industrial, civil
infrastructure, minerals, government services and commercial markets.
For more information, visit www.kbr.com.
NOTE: The statements in this press release that are not historical
statements, including statements regarding future financial performance
and backlog information, are forward-looking statements within the
meaning of the federal securities laws. These statements are subject to
numerous risks and uncertainties, many of which are beyond the company’s
control, that could cause actual results to differ materially from the
results expressed or implied by the statements. These risks and
uncertainties include, but are not limited to: the outcome of and the
publicity surrounding audits and investigations by domestic and foreign
government agencies and legislative bodies; potential adverse
proceedings by such agencies and potential adverse results and
consequences from such proceedings; the scope and enforceability of the
company’s indemnities from Halliburton Company; changes in capital
spending by the company’s customers; the company’s ability to obtain
contracts from existing and new customers and perform under those
contracts; structural changes in the industries in which the company
operates, escalating costs associated with and the performance of
fixed-fee projects and the company’s ability to control its cost under
its contracts; claims negotiations and contract disputes with the
company’s customers; changes in the demand for or price of oil and/or
natural gas; protection of intellectual property rights; compliance with
environmental laws; changes in government regulations and regulatory
requirements; compliance with laws related to income taxes; unsettled
political conditions, war and the effects of terrorism; foreign
operations and foreign exchange rates and controls; the development and
installation of financial systems; increased competition for employees;
the ability to successfully complete and integrate acquisitions; and
operations of joint ventures, including joint ventures that are not
controlled by the company.
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
|
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
Hydrocarbons
|
|
|
$
|
955
|
|
|
|
$
|
1,122
|
|
|
|
$
|
947
|
|
|
Infrastructure, Government and Power
|
|
|
|
392
|
|
|
|
|
491
|
|
|
|
|
407
|
|
|
Services
|
|
|
|
622
|
|
|
|
|
425
|
|
|
|
|
485
|
|
|
Ventures
|
|
|
|
19
|
|
|
|
|
15
|
|
|
|
|
14
|
|
|
Other
|
|
|
|
8
|
|
|
|
|
9
|
|
|
|
|
6
|
|
|
Total revenue
|
|
|
|
1,996
|
|
|
|
|
2,062
|
|
|
|
|
1,859
|
|
|
Business group income:
|
|
|
|
|
|
|
|
|
|
|
Hydrocarbons
|
|
|
|
141
|
|
|
|
|
131
|
|
|
|
|
148
|
|
|
Infrastructure, Government and Power
|
|
|
|
25
|
|
|
|
|
28
|
|
|
|
|
27
|
|
|
Services
|
|
|
|
23
|
|
|
|
|
16
|
|
|
|
|
18
|
|
|
Ventures
|
|
|
|
12
|
|
|
|
|
10
|
|
|
|
|
7
|
|
|
Other
|
|
|
|
2
|
|
|
|
|
2
|
|
|
|
|
-
|
|
|
Total business group income
|
|
|
|
203
|
|
|
|
|
187
|
|
|
|
|
200
|
|
|
Unallocated costs:
|
|
|
|
|
|
|
|
|
|
|
Labor cost absorption
|
|
|
|
(17
|
)
|
|
|
|
(6
|
)
|
|
|
|
(15
|
)
|
|
General and administrative
|
|
|
|
(63
|
)
|
|
|
|
(52
|
)
|
|
|
|
(52
|
)
|
|
Operating income
|
|
|
|
123
|
|
|
|
|
129
|
|
|
|
|
133
|
|
|
Interest expense, net
|
|
|
|
(1
|
)
|
|
|
|
(2
|
)
|
|
|
|
(1
|
)
|
|
Foreign currency gains (losses), net
|
|
|
|
4
|
|
|
|
|
3
|
|
|
|
|
(4
|
)
|
|
Other non-operating income (expense)
|
|
|
|
-
|
|
|
|
|
1
|
|
|
|
|
(1
|
)
|
|
Income before income taxes and noncontrolling interests
|
|
|
|
126
|
|
|
|
|
131
|
|
|
|
|
127
|
|
|
Provision for income taxes
|
|
|
|
(15
|
)
|
|
|
|
(19
|
)
|
|
|
|
(30
|
)
|
|
Net income
|
|
|
|
111
|
|
|
|
|
112
|
|
|
|
|
97
|
|
|
Net income attributable to noncontrolling interests
|
|
|
|
(21
|
)
|
|
|
|
(8
|
)
|
|
|
|
(9
|
)
|
|
Net income attributable to KBR
|
|
|
$
|
90
|
|
|
|
$
|
104
|
|
|
|
$
|
88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to KBR per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.61
|
|
|
|
$
|
0.70
|
|
|
|
$
|
0.59
|
|
|
Diluted
|
|
|
|
0.61
|
|
|
|
|
0.70
|
|
|
|
|
0.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding
|
|
|
|
147
|
|
|
|
|
148
|
|
|
|
|
147
|
|
|
Diluted weighted average shares outstanding
|
|
|
|
148
|
|
|
|
|
149
|
|
|
|
|
148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per share
|
|
|
$
|
0.08
|
|
|
|
$
|
0.05
|
|
|
|
$
|
-
|
|
|
|
|
KBR, Inc.: Condensed Consolidated Statements of Income
(Millions, except per share data) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
June 30,
|
|
|
|
|
|
2013
|
|
|
|
2012
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Hydrocarbons
|
|
|
|
$
|
1,902
|
|
|
|
|
$
|
2,238
|
|
|
Infrastructure, Government and Power
|
|
|
|
|
799
|
|
|
|
|
|
1,009
|
|
|
Services
|
|
|
|
|
1,107
|
|
|
|
|
|
773
|
|
|
Ventures
|
|
|
|
|
33
|
|
|
|
|
|
29
|
|
|
Other
|
|
|
|
|
14
|
|
|
|
|
|
14
|
|
|
Total revenue
|
|
|
|
|
3,855
|
|
|
|
|
|
4,063
|
|
|
Business group income:
|
|
|
|
|
|
|
|
|
|
Hydrocarbons
|
|
|
|
|
289
|
|
|
|
|
|
236
|
|
|
Infrastructure, Government and Power
|
|
|
|
|
52
|
|
|
|
|
|
67
|
|
|
Services
|
|
|
|
|
41
|
|
|
|
|
|
28
|
|
|
Ventures
|
|
|
|
|
19
|
|
|
|
|
|
17
|
|
|
Other
|
|
|
|
|
2
|
|
|
|
|
|
5
|
|
|
Total business group income
|
|
|
|
|
403
|
|
|
|
|
|
353
|
|
|
Unallocated costs:
|
|
|
|
|
|
|
|
|
|
Labor cost absorption
|
|
|
|
|
(32
|
)
|
|
|
|
|
(5
|
)
|
|
General and administrative
|
|
|
|
|
(115
|
)
|
|
|
|
|
(107
|
)
|
|
Operating income
|
|
|
|
|
256
|
|
|
|
|
|
241
|
|
|
Interest expense, net
|
|
|
|
|
(2
|
)
|
|
|
|
|
(4
|
)
|
|
Foreign currency gains, net
|
|
|
|
|
-
|
|
|
|
|
|
2
|
|
|
Other non-operating expense
|
|
|
|
|
(1
|
)
|
|
|
|
|
(1
|
)
|
|
Income before income taxes and noncontrolling interests
|
|
|
|
|
253
|
|
|
|
|
|
238
|
|
|
Provision for income taxes
|
|
|
|
|
(45
|
)
|
|
|
|
|
(28
|
)
|
|
Net income
|
|
|
|
|
208
|
|
|
|
|
|
210
|
|
|
Net income attributable to noncontrolling interests
|
|
|
|
|
(30
|
)
|
|
|
|
|
(15
|
)
|
|
Net income attributable to KBR
|
|
|
|
$
|
178
|
|
|
|
|
$
|
195
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to KBR per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
1.21
|
|
|
|
|
$
|
1.31
|
|
|
Diluted
|
|
|
|
|
1.20
|
|
|
|
|
|
1.31
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding
|
|
|
|
|
147
|
|
|
|
|
|
148
|
|
|
Diluted weighted average shares outstanding
|
|
|
|
|
148
|
|
|
|
|
|
149
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per share
|
|
|
|
$
|
0.08
|
|
|
|
|
$
|
0.10
|
|
|
|
|
|
|
|
|
KBR, Inc.: Condensed Consolidated Balance Sheets
(Millions) (Unaudited)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
2013
|
|
2012
|
|
Assets
|
|
Current assets:
|
|
|
|
|
|
Cash and equivalents
|
|
$
|
800
|
|
|
$
|
1,053
|
|
|
Receivables:
|
|
|
|
|
|
Accounts receivable, net of allowance for bad debts of $21 and $15
|
|
|
1,224
|
|
|
|
1,196
|
|
|
Unbilled receivables on uncompleted contracts
|
|
|
710
|
|
|
|
704
|
|
|
Total receivables
|
|
|
1,934
|
|
|
|
1,900
|
|
|
Deferred income taxes
|
|
|
171
|
|
|
|
251
|
|
|
Other current assets
|
|
|
288
|
|
|
|
464
|
|
|
Total current assets
|
|
|
3,193
|
|
|
|
3,668
|
|
|
Property, plant and equipment, net of accumulated
|
|
|
|
|
|
depreciation of $363 and $356
|
|
|
395
|
|
|
|
390
|
|
|
Goodwill
|
|
|
775
|
|
|
|
779
|
|
|
Intangible assets, net
|
|
|
91
|
|
|
|
99
|
|
|
Equity in and advances to related companies
|
|
|
179
|
|
|
|
217
|
|
|
Noncurrent deferred income taxes
|
|
|
247
|
|
|
|
203
|
|
|
Noncurrent unbilled receivables on uncompleted contracts
|
|
|
402
|
|
|
|
294
|
|
|
Other noncurrent assets
|
|
|
126
|
|
|
|
117
|
|
|
Total assets
|
|
$
|
5,408
|
|
|
$
|
5,767
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
701
|
|
|
$
|
756
|
|
|
Due to former parent, net
|
|
|
49
|
|
|
|
49
|
|
|
Advanced billings on uncompleted contracts
|
|
|
459
|
|
|
|
536
|
|
|
Reserve from estimated losses on uncompleted contracts
|
|
|
40
|
|
|
|
56
|
|
|
Employee compensation and benefits
|
|
|
233
|
|
|
|
242
|
|
|
Current non-recourse project-finance debt of a variable interest
entity
|
|
|
9
|
|
|
|
10
|
|
|
Other current liabilities
|
|
|
352
|
|
|
|
628
|
|
|
Total current liabilities
|
|
|
1,843
|
|
|
|
2,277
|
|
|
Noncurrent employee compensation and benefits
|
|
|
469
|
|
|
|
511
|
|
|
Noncurrent non-recourse project-finance debt of a variable interest
entity
|
|
|
75
|
|
|
|
84
|
|
|
Other noncurrent liabilities
|
|
|
214
|
|
|
|
217
|
|
|
Noncurrent income tax payable
|
|
|
80
|
|
|
|
90
|
|
|
Noncurrent deferred tax liability
|
|
|
86
|
|
|
|
77
|
|
|
Total liabilities
|
|
|
2,767
|
|
|
|
3,256
|
|
|
KBR shareholders' equity
|
|
|
|
|
|
Preferred stock
|
|
|
-
|
|
|
|
-
|
|
|
Common stock
|
|
|
-
|
|
|
|
-
|
|
|
Paid-in-capital in excess of par
|
|
|
2,064
|
|
|
|
2,049
|
|
|
Accumulated other comprehensive loss
|
|
|
(645
|
)
|
|
|
(610
|
)
|
|
Retained earnings
|
|
|
1,875
|
|
|
|
1,709
|
|
|
Treasury stock
|
|
|
(611
|
)
|
|
|
(606
|
)
|
|
Total KBR shareholders' equity
|
|
|
2,683
|
|
|
|
2,542
|
|
|
Noncontrolling interests
|
|
|
(42
|
)
|
|
|
(31
|
)
|
|
Total shareholders' equity
|
|
|
2,641
|
|
|
|
2,511
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
5,408
|
|
|
$
|
5,767
|
|
|
|
|
KBR, Inc.: Condensed Consolidated Statements of Cash Flows
(Millions) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
June 30,
|
|
|
|
|
|
2013
|
|
|
|
2012
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
208
|
|
|
|
|
$
|
210
|
|
|
Adjustments to reconcile net income to net cash provided by (used
in) operations:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
31
|
|
|
|
|
|
33
|
|
|
Equity earnings of unconsolidated affiliates
|
|
|
|
|
(76
|
)
|
|
|
|
|
(70
|
)
|
|
Deferred income tax benefit
|
|
|
|
|
103
|
|
|
|
|
|
57
|
|
|
Other adjustments
|
|
|
|
|
9
|
|
|
|
|
|
14
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
|
|
(58
|
)
|
|
|
|
|
44
|
|
|
Unbilled receivables on uncompleted contracts
|
|
|
|
|
(57
|
)
|
|
|
|
|
(286
|
)
|
|
Accounts payable
|
|
|
|
|
(31
|
)
|
|
|
|
|
52
|
|
|
Advanced billings on uncompleted contracts
|
|
|
|
|
(25
|
)
|
|
|
|
|
(110
|
)
|
|
Accrued employee compensation and benefits
|
|
|
|
|
(18
|
)
|
|
|
|
|
(53
|
)
|
|
Reserve for loss on uncompleted contracts
|
|
|
|
|
(16
|
)
|
|
|
|
|
(7
|
)
|
|
Collection (repayment) of advances from (to) unconsolidated
affiliates, net
|
|
|
|
|
6
|
|
|
|
|
|
(3
|
)
|
|
Distribution of earnings from unconsolidated affiliates
|
|
|
|
|
101
|
|
|
|
|
|
47
|
|
|
Payment on performance bonds
|
|
|
|
|
(108
|
)
|
|
|
|
|
-
|
|
|
Other, net
|
|
|
|
|
(166
|
)
|
|
|
|
|
17
|
|
|
Total cash flows used in operating activities
|
|
|
|
|
(97
|
)
|
|
|
|
|
(55
|
)
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
|
(40
|
)
|
|
|
|
|
(33
|
)
|
|
Acquisition of business, net
|
|
|
|
|
-
|
|
|
|
|
|
(2
|
)
|
|
Proceeds from sale of property, plant and equipment
|
|
|
|
|
6
|
|
|
|
|
|
-
|
|
|
Return of capital from equity method joint ventures
|
|
|
|
|
-
|
|
|
|
|
|
4
|
|
|
Total cash flows used in investing activities
|
|
|
|
|
(34
|
)
|
|
|
|
|
(31
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
Payments to reacquire common stock
|
|
|
|
|
(6
|
)
|
|
|
|
|
(25
|
)
|
|
Distributions to noncontrolling interests, net
|
|
|
|
|
(46
|
)
|
|
|
|
|
(7
|
)
|
|
Payments of dividends to shareholders
|
|
|
|
|
(12
|
)
|
|
|
|
|
(15
|
)
|
|
Net proceeds from issuance of stock
|
|
|
|
|
4
|
|
|
|
|
|
3
|
|
|
Payments on long-term borrowings
|
|
|
|
|
(9
|
)
|
|
|
|
|
(10
|
)
|
|
Excess tax benefits from stock-based compensation
|
|
|
|
|
-
|
|
|
|
|
|
4
|
|
|
Other financing activities
|
|
|
|
|
-
|
|
|
|
|
|
1
|
|
|
Total cash flows used in financing activities
|
|
|
|
|
(69
|
)
|
|
|
|
|
(49
|
)
|
|
Effect of exchange rate changes on cash
|
|
|
|
|
(53
|
)
|
|
|
|
|
(7
|
)
|
|
Decrease in cash and equivalents
|
|
|
|
|
(253
|
)
|
|
|
|
|
(142
|
)
|
|
Cash and equivalents at beginning of period
|
|
|
|
|
1,053
|
|
|
|
|
|
966
|
|
|
Cash and equivalents at end of period
|
|
|
|
$
|
800
|
|
|
|
|
$
|
824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KBR, Inc.: Revenue and Operating Results by Business Unit
(Millions)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
Revenue:
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
Hydrocarbons:
|
|
|
|
|
|
|
|
|
|
|
Gas Monetization
|
|
|
$
|
612
|
|
|
|
$
|
809
|
|
|
|
$
|
605
|
|
|
Oil and Gas
|
|
|
|
113
|
|
|
|
|
135
|
|
|
|
|
111
|
|
|
Downstream
|
|
|
|
174
|
|
|
|
|
131
|
|
|
|
|
178
|
|
|
Technology
|
|
|
|
56
|
|
|
|
|
47
|
|
|
|
|
53
|
|
|
Total Hydrocarbons
|
|
|
|
955
|
|
|
|
|
1,122
|
|
|
|
|
947
|
|
|
Infrastructure, Government and Power
|
|
|
|
|
|
|
|
|
|
|
North American Government and Logistics
|
|
|
|
139
|
|
|
|
|
173
|
|
|
|
|
159
|
|
|
International Government, Defence and Support Services
|
|
|
|
85
|
|
|
|
|
93
|
|
|
|
|
74
|
|
|
Infrastructure
|
|
|
|
49
|
|
|
|
|
68
|
|
|
|
|
51
|
|
|
Minerals
|
|
|
|
34
|
|
|
|
|
62
|
|
|
|
|
38
|
|
|
Power and Industrial
|
|
|
|
85
|
|
|
|
|
95
|
|
|
|
|
85
|
|
|
Total Infrastructure, Government and Power
|
|
|
|
392
|
|
|
|
|
491
|
|
|
|
|
407
|
|
|
Services
|
|
|
|
622
|
|
|
|
|
425
|
|
|
|
|
485
|
|
|
Ventures
|
|
|
|
19
|
|
|
|
|
15
|
|
|
|
|
14
|
|
|
Other
|
|
|
|
8
|
|
|
|
|
9
|
|
|
|
|
6
|
|
|
Total revenue
|
|
|
$
|
1,996
|
|
|
|
$
|
2,062
|
|
|
|
$
|
1,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business group income:
|
|
|
|
|
|
|
|
|
|
|
Hydrocarbons:
|
|
|
|
|
|
|
|
|
|
|
Gas Monetization
|
|
|
$
|
101
|
|
|
|
$
|
94
|
|
|
|
$
|
104
|
|
|
Oil and Gas
|
|
|
|
26
|
|
|
|
|
38
|
|
|
|
|
25
|
|
|
Downstream
|
|
|
|
22
|
|
|
|
|
13
|
|
|
|
|
26
|
|
|
Technology
|
|
|
|
28
|
|
|
|
|
19
|
|
|
|
|
25
|
|
|
Total job income
|
|
|
|
177
|
|
|
|
|
164
|
|
|
|
|
180
|
|
|
Divisional overhead
|
|
|
|
(36
|
)
|
|
|
|
(33
|
)
|
|
|
|
(32
|
)
|
|
Total Hydrocarbons
|
|
|
|
141
|
|
|
|
|
131
|
|
|
|
|
148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infrastructure, Government and Power:
|
|
|
|
|
|
|
|
|
|
|
North American Government and Logistics
|
|
|
|
14
|
|
|
|
|
5
|
|
|
|
|
20
|
|
|
International Government, Defence and Support Services
|
|
|
|
31
|
|
|
|
|
26
|
|
|
|
|
22
|
|
|
Infrastructure
|
|
|
|
8
|
|
|
|
|
16
|
|
|
|
|
10
|
|
|
Minerals
|
|
|
|
3
|
|
|
|
|
6
|
|
|
|
|
3
|
|
|
Power and Industrial
|
|
|
|
6
|
|
|
|
|
10
|
|
|
|
|
8
|
|
|
Total job income
|
|
|
|
62
|
|
|
|
|
63
|
|
|
|
|
63
|
|
|
Divisional overhead
|
|
|
|
(37
|
)
|
|
|
|
(35
|
)
|
|
|
|
(36
|
)
|
|
Total Infrastructure, Government and Power
|
|
|
|
25
|
|
|
|
|
28
|
|
|
|
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services:
|
|
|
|
|
|
|
|
|
|
|
Job income
|
|
|
|
38
|
|
|
|
|
29
|
|
|
|
|
31
|
|
|
Divisional overhead
|
|
|
|
(15
|
)
|
|
|
|
(13
|
)
|
|
|
|
(13
|
)
|
|
Total Services
|
|
|
|
23
|
|
|
|
|
16
|
|
|
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ventures:
|
|
|
|
|
|
|
|
|
|
|
Job income
|
|
|
|
12
|
|
|
|
|
10
|
|
|
|
|
8
|
|
|
Divisional overhead
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(1
|
)
|
|
Total Ventures
|
|
|
|
12
|
|
|
|
|
10
|
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
Job income
|
|
|
|
4
|
|
|
|
|
5
|
|
|
|
|
3
|
|
|
Loss on sales of assets
|
|
|
|
-
|
|
|
|
|
(2
|
)
|
|
|
|
(1
|
)
|
|
Divisional overhead
|
|
|
|
(2
|
)
|
|
|
|
(1
|
)
|
|
|
|
(2
|
)
|
|
Total Other
|
|
|
|
2
|
|
|
|
|
2
|
|
|
|
|
-
|
|
|
Total business group income
|
|
|
$
|
203
|
|
|
|
$
|
187
|
|
|
|
$
|
200
|
|
|
|
|
KBR, Inc.: Revenue and Operating Results by Business Unit
(Millions)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
June 30,
|
|
Revenue:
|
|
|
|
2013
|
|
|
2012
|
|
Hydrocarbons:
|
|
|
|
|
|
|
|
|
Gas Monetization
|
|
|
|
$
|
1,217
|
|
|
|
$
|
1,614
|
|
|
Oil and Gas
|
|
|
|
|
224
|
|
|
|
|
256
|
|
|
Downstream
|
|
|
|
|
352
|
|
|
|
|
272
|
|
|
Technology
|
|
|
|
|
109
|
|
|
|
|
96
|
|
|
Total Hydrocarbons
|
|
|
|
|
1,902
|
|
|
|
|
2,238
|
|
|
Infrastructure, Government and Power
|
|
|
|
|
|
|
|
|
North America Government and Logistics
|
|
|
|
|
298
|
|
|
|
|
382
|
|
|
International Government, Defence and Support Services
|
|
|
|
|
159
|
|
|
|
|
191
|
|
|
Infrastructure
|
|
|
|
|
100
|
|
|
|
|
132
|
|
|
Minerals
|
|
|
|
|
72
|
|
|
|
|
125
|
|
|
Power and Industrial
|
|
|
|
|
170
|
|
|
|
|
179
|
|
|
Total Infrastructure, Government and Power
|
|
|
|
|
799
|
|
|
|
|
1,009
|
|
|
Services
|
|
|
|
|
1,107
|
|
|
|
|
773
|
|
|
Ventures
|
|
|
|
|
33
|
|
|
|
|
29
|
|
|
Other
|
|
|
|
|
14
|
|
|
|
|
14
|
|
|
Total revenue
|
|
|
|
$
|
3,855
|
|
|
|
$
|
4,063
|
|
|
|
|
|
|
|
|
|
|
|
Business group income:
|
|
|
|
|
|
|
|
|
Hydrocarbons:
|
|
|
|
|
|
|
|
|
Gas Monetization
|
|
|
|
$
|
205
|
|
|
|
$
|
173
|
|
|
Oil and Gas
|
|
|
|
|
51
|
|
|
|
|
61
|
|
|
Downstream
|
|
|
|
|
48
|
|
|
|
|
27
|
|
|
Technology
|
|
|
|
|
53
|
|
|
|
|
39
|
|
|
Total job income
|
|
|
|
|
357
|
|
|
|
|
300
|
|
|
Division overhead
|
|
|
|
|
(68
|
)
|
|
|
|
(64
|
)
|
|
Total Hydrocarbons
|
|
|
|
|
289
|
|
|
|
|
236
|
|
|
|
|
|
|
|
|
|
|
|
Infrastructure, Government and Power:
|
|
|
|
|
|
|
|
|
North America Government and Logistics
|
|
|
|
|
34
|
|
|
|
|
20
|
|
|
International Government, Defence and Support Services
|
|
|
|
|
53
|
|
|
|
|
62
|
|
|
Infrastructure
|
|
|
|
|
18
|
|
|
|
|
31
|
|
|
Minerals
|
|
|
|
|
6
|
|
|
|
|
5
|
|
|
Power and Industrial
|
|
|
|
|
14
|
|
|
|
|
20
|
|
|
Total job income
|
|
|
|
|
125
|
|
|
|
|
138
|
|
|
Gain on sales of assets
|
|
|
|
|
-
|
|
|
|
|
2
|
|
|
Division overhead
|
|
|
|
|
(73
|
)
|
|
|
|
(73
|
)
|
|
Total Infrastructure, Government and Power
|
|
|
|
|
52
|
|
|
|
|
67
|
|
|
|
|
|
|
|
|
|
|
|
Services:
|
|
|
|
|
|
|
|
|
Job income
|
|
|
|
|
69
|
|
|
|
|
57
|
|
|
Division overhead
|
|
|
|
|
(28
|
)
|
|
|
|
(29
|
)
|
|
Total Services
|
|
|
|
|
41
|
|
|
|
|
28
|
|
|
|
|
|
|
|
|
|
|
|
Ventures:
|
|
|
|
|
|
|
|
|
Job income
|
|
|
|
|
20
|
|
|
|
|
18
|
|
|
Division overhead
|
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
Total Ventures
|
|
|
|
|
19
|
|
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
Other:
|
|
|
|
|
|
|
|
|
Job income
|
|
|
|
|
7
|
|
|
|
|
9
|
|
|
Loss on sale of assets
|
|
|
|
|
(1
|
)
|
|
|
|
-
|
|
|
Division overhead
|
|
|
|
|
(4
|
)
|
|
|
|
(4
|
)
|
|
Total Other
|
|
|
|
|
2
|
|
|
|
|
5
|
|
|
Total business group income
|
|
|
|
$
|
403
|
|
|
|
$
|
353
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KBR, Inc.: Backlog Information (a)
(Millions) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
|
March 31,
|
|
|
|
December 31,
|
|
|
|
|
|
|
2013
|
|
|
|
2013
|
|
|
|
2012
|
|
Hydrocarbons:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Monetization
|
|
|
|
|
$
|
6,672
|
|
|
|
$
|
7,425
|
|
|
|
$
|
7,745
|
|
Oil and Gas
|
|
|
|
|
|
126
|
|
|
|
|
168
|
|
|
|
|
215
|
|
Downstream
|
|
|
|
|
|
1,523
|
|
|
|
|
691
|
|
|
|
|
740
|
|
Technology
|
|
|
|
|
|
425
|
|
|
|
|
392
|
|
|
|
|
399
|
|
Total Hydrocarbons
|
|
|
|
|
|
8,746
|
|
|
|
|
8,676
|
|
|
|
|
9,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infrastructure, Government and Power:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North American Government and Logistics
|
|
|
|
|
|
419
|
|
|
|
|
559
|
|
|
|
|
645
|
|
International Government, Defence and Support Services
|
|
|
|
|
|
875
|
|
|
|
|
891
|
|
|
|
|
975
|
|
Infrastructure
|
|
|
|
|
|
176
|
|
|
|
|
184
|
|
|
|
|
205
|
|
Minerals
|
|
|
|
|
|
73
|
|
|
|
|
107
|
|
|
|
|
131
|
|
Power and Industrial
|
|
|
|
|
|
722
|
|
|
|
|
793
|
|
|
|
|
868
|
|
Total Infrastructure, Government and Power
|
|
|
|
|
|
2,265
|
|
|
|
|
2,534
|
|
|
|
|
2,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services
|
|
|
|
|
|
1,862
|
|
|
|
|
2,068
|
|
|
|
|
2,025
|
|
Ventures
|
|
|
|
|
|
931
|
|
|
|
|
937
|
|
|
|
|
983
|
|
Total backlog(b)
|
|
|
|
|
$
|
13,804
|
|
|
|
$
|
14,215
|
|
|
|
$
|
14,931
|
|
|
|
|
|
(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.
|
|
|
|
|
|
|
|
Backlog related to unconsolidated joint ventures is presented as
KBR’s percentage ownership of the joint venture’s estimated revenue.
However, because these projects are accounted for under the equity
method, only KBR’s share of future earnings from these projects will
be recorded in revenue. Our backlog for projects related to
unconsolidated joint ventures totaled $5.3 billion, $5.5 billion and
$5.8 billion at June 30, 2013, March 31, 2013, and December 31,
2012, respectively. Our backlog related to consolidated joint
ventures with noncontrolling interest totaled $1.8 billion, $2.3
billion and $2.1 billion at June 30, 2013, March 31, 2013, and
December 31, 2012, respectively.
|
|
|
|
|
|
|
|
As of June 30, 2013, 48% of our backlog was attributable to
fixed-price contracts and 52% was attributable to cost-reimbursable
contracts. For contracts that contain both fixed-price and
cost-reimbursable components, we classify the components as either
fixed-price or cost-reimbursable according to the composition of the
contract except for smaller contracts where we characterize the
entire contract based on the predominate component.
|
|
|
|
|
|
|
|
All backlog is attributable to firm orders as of June 30, 2013,
March 31, 2013, and December 31, 2012.
|
|
|
|
|
|
(b)
|
|
Backlog attributable to unfunded government orders was $0.1 billion,
$0.3 billion and $0.2 billion as of June 30, 2013, March 31, 2013,
and December 31, 2012, respectively.
|
Source: KBR
KBR
Zac Nagle, 713-753-5082
Vice President,
Investor
Relations and Communications
or
Rob Kukla, Jr., 713-753-5082
Director,
Investor Relations