Chicago Bridge has a market cap of $4.26 billion; its shares were traded at around $43.64 with a P/E ratio of 16.9 and P/S ratio of 0.9. The dividend yield of Chicago Bridge stocks is 0.5%. Chicago Bridge had an annual average earning growth of 16.4% over the past 10 years. GuruFocus rated Chicago Bridge the business predictability rank of 2.5-star.
Highlight of Business Operations:Selling and Administrative ExpenseSelling and administrative expense was $63.2 million (5.3% of revenue) for the first quarter 2012, compared with $57.7 million (6.0% of revenue) for the corresponding 2011 period. The absolute dollar increase was attributable to increases associated with our incentive plans and global administrative support costs (approximately $3.4 million), with the remaining increase being predominantly inflationary in nature. As discussed above, our stock-based compensation costs, which are predominantly in selling and administrative expense, are higher in the first quarter of each year due to the immediate expensing of awards for those participants that are eligible to retire. First quarter stock-based compensation expense totaled $22.3 million and $20.0 million for 2012 and 2011, respectively, or 63% and 56% of estimated annual expense for each of the respective periods.
Equity EarningsEquity earnings were $1.8 million for the first quarter 2012, compared to $1.3 million for the corresponding 2011 period. The increase was due to higher earnings from our unconsolidated CLG joint venture.
Income from OperationsIncome from operations for the first quarter 2012 was $22.6 million (22.6% of revenue) versus $23.1 million (19.1% of revenue) for the corresponding 2011 period. The increase in income from operations as a percentage of revenue for 2012 compared to the prior year period was due to better margins realized on our 2012 licensing activity.
Operating ActivitiesDuring the first three months of 2012, cash provided by operations was $59.3 million, as cash generated from earnings and dividends received from our equity investments were offset by an overall increase in working capital levels. The increase in working capital was the result of an increase in accounts receivable ($65.3 million) primarily for major projects in Project Engineering and Construction. The increase in accounts receivable was partly offset by a decrease in net contracts in progress ($24.2 million) and an increase in accounts payable ($12.0 million) for various projects in Lummus Technology and major projects in Project Engineering and Construction, respectively.
31, 2012. The Revolving Facility also includes customary restrictions regarding subsidiary indebtedness, sales of assets, liens, investments, type of business conducted and mergers and acquisitions, as well as a trailing twelve-month limitation of $200.0 million for dividend payments and share repurchases, among other restrictions. At March 31, 2012, we had issued $354.2 million of letters of credit under the Revolving Facility. Such letters of credit are generally issued to customers in the ordinary course of business to support advance payments and performance guarantees, in lieu of retention on our contracts, or in certain cases, are issued in support of our insurance program. At March 31, 2012, we had $745.8 million of available capacity under the Revolving Facility.
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