PASADENA, Calif.--(BUSINESS WIRE)--
Jacobs Engineering Group Inc. (NYSE:JEC) announced today its financial
results for the third quarter of fiscal 2015 ended June 26, 2015.
Third Quarter Fiscal 2015 Highlights:
-
Announced the new President and CEO Steven J. Demetriou;
-
U.S.-GAAP net earnings and EPS of $91.1 million and $0.73,
respectively; up 40% and 49%, respectively, from a year-ago;
-
Adjusted net earnings of $121.2 million (adjusted to exclude the
impact of the restructuring activities discussed below); up 8.4%
versus adjusted net earnings of a year-ago;
-
Adjusted EPS of $0.97; up 15.5% versus adjusted EPS of a year-ago;
-
Near record backlog at June 26, 2015 of $18.8 billion;
-
Announcing a formal restructuring effort focused on business
simplification and cost effectiveness; total costs expected to
approximate $165-$205 million with projected annual savings in the
range of $130-$160 million;
-
Repurchase of 2.7 million shares of common stock for $118.7 million
during the third quarter of fiscal 2015; and,
-
Board of Directors reauthorizes an additional $500 million share
buyback program with a term of three years.
Jacobs reported today adjusted net earnings of $121.2 million, or $0.97
per diluted share, on revenues of $2.9 billion for its third quarter of
fiscal 2015 ended June 26, 2015. This compares to adjusted net earnings
of $111.8 million, or $0.84 per diluted share, on revenues of $3.2
billion for the third quarter of fiscal 2014 ended June 27, 2014.
Included in the Company's third quarter adjusted net earnings is a $23.1
million, or $0.19 per share, tax benefit related to the refinancing of
certain acquisition debt.
For the nine months ended June 26, 2015, Jacobs reported today adjusted
net earnings of $312.8 million, or $2.46 per diluted share, on revenues
of $9.0 billion. This compares to adjusted net earnings of $320.8
million, or $2.42 per diluted share, on revenues of $9.5 billion for the
nine months ended June 27, 2014. The Company's adjusted net earnings for
the nine months ended June 26, 2015 also includes the $23.1 million, or
$0.19 per share, tax benefit mentioned above.
The Company's adjusted net earnings for the third quarter of fiscal 2015
exclude the after-tax costs related to certain restructuring activities
(the "2015 Restructuring") totaling $30.1 million, or $0.24 per diluted
share. Adjusted net earnings for the nine months ended June 26, 2015
exclude 2015 Restructuring costs totaling $39.7 million after-tax, or
$0.31 per diluted share. Management's focus in the restructuring efforts
is to position Jacobs to better support and enhance profitable growth in
the future.
Jacobs also announced continued strength in total backlog of $18.8
billion at June 26, 2015, including a technical professional services
component of $12.2 billion.
Commenting on the results for the third quarter, Jacobs Executive
Chairman Noel Watson stated, “We saw good sales progress in our third
quarter resulting in near-record backlog. Consistent with our views from
last quarter, we continue to be cautious in our short-term outlook and
remain confident in the long-term growth potential of our global
business.”
Commenting on the Company’s earnings outlook for the future, Jacobs
Chief Financial Officer Kevin Berryman stated, “We are seeing some of
the early benefits of our restructuring plan as we are driving out costs
that reflect ongoing savings, aggressively aligning our global
operations with the market environment, simplifying our global business
in the process and therefore positioning Jacobs to deliver
industry-leading growth and profitability over the longer term.”
Mr. Berryman also added, “We expect to see much of the benefit of this
year’s restructuring in FY 2016, although some benefits are being
realized in FY 2015, as indicated by our lower G&A figures during the
quarter. Finally, given our performance through the first three
quarters, we have raised our full year EPS guidance to a range of $3.11
to $3.31.”
Jacobs is hosting a conference call at 11:00 a.m. Eastern Time on
Tuesday, July 28, 2015, which it is webcasting live on the internet at www.jacobs.com.
Jacobs is one of the world's largest and most diverse providers of
technical professional and construction services.
Statements made in this press release that are not based on historical
fact are forward-looking statements. Although such statements are based
on management's current estimates and expectations, and currently
available competitive, financial, and economic data, forward-looking
statements are inherently uncertain, and you should not place undue
reliance on such statements as actual results may differ materially. We
caution the reader that there are a variety of risks, uncertainties and
other factors that could cause actual results to differ materially from
what is contained, projected or implied by our forward-looking
statements. For a description of some of the factors that may occur that
could cause actual results to differ from our forward-looking statements
see our Annual Report on Form 10-K for the period ended September 26,
2014, and in particular the discussions contained under Item 1 - Business;
Item 1A - Risk Factors; Item 3 - Legal Proceedings;
and Item 7 - Management's Discussion and Analysis of
Financial Condition and Results of Operations, as well as the
Company’s other filings with the Securities and Exchange Commission. We
also caution the readers of this release that we do not undertake to
update any forward-looking statements made herein.
Financial Highlights:
|
Results of Operations (in thousands,
except per-share data):
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
June 26, 2015
|
|
|
June 27, 2014
|
|
|
June 26, 2015
|
|
|
June 27, 2014
|
|
Revenues
|
|
|
$
|
2,907,541
|
|
|
|
$
|
3,231,791
|
|
|
|
$
|
8,997,878
|
|
|
|
$
|
9,476,715
|
|
|
Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct costs of contracts
|
|
|
(2,422,944
|
)
|
|
|
(2,670,052
|
)
|
|
|
(7,502,891
|
)
|
|
|
(7,944,731
|
)
|
|
Selling, general, and administrative expenses
|
|
|
(384,163
|
)
|
|
|
(437,802
|
)
|
|
|
(1,103,286
|
)
|
|
|
(1,140,565
|
)
|
|
Operating Profit
|
|
|
100,434
|
|
|
|
123,937
|
|
|
|
391,701
|
|
|
|
391,419
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
1,697
|
|
|
|
2,624
|
|
|
|
5,553
|
|
|
|
7,425
|
|
|
Interest expense
|
|
|
(5,509
|
)
|
|
|
(5,565
|
)
|
|
|
(15,374
|
)
|
|
|
(10,490
|
)
|
|
Gain on sale of intellectual property, net
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
12,147
|
|
|
Miscellaneous income (expense), net
|
|
|
566
|
|
|
|
(2,950
|
)
|
|
|
(1,034
|
)
|
|
|
(3,139
|
)
|
|
Total other income (expense), net
|
|
|
(3,246
|
)
|
|
|
(5,891
|
)
|
|
|
(10,855
|
)
|
|
|
5,943
|
|
|
Earnings Before Taxes
|
|
|
97,188
|
|
|
|
118,046
|
|
|
|
380,846
|
|
|
|
397,362
|
|
|
Income Tax Benefit (Expense)
|
|
|
120
|
|
|
|
(46,737
|
)
|
|
|
(89,233
|
)
|
|
|
(136,304
|
)
|
|
Net Earnings of the Group
|
|
|
97,308
|
|
|
|
71,309
|
|
|
|
291,613
|
|
|
|
261,058
|
|
|
Net Earnings Attributable to Noncontrolling Interests
|
|
|
(6,246
|
)
|
|
|
(6,467
|
)
|
|
|
(18,505
|
)
|
|
|
(19,024
|
)
|
|
Net Earnings Attributable to Jacobs
|
|
|
$
|
91,062
|
|
|
|
$
|
64,842
|
|
|
|
$
|
273,108
|
|
|
|
$
|
242,034
|
|
|
Earnings Per Share (“EPS”):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.74
|
|
|
|
$
|
0.50
|
|
|
|
$
|
2.17
|
|
|
|
$
|
1.86
|
|
|
Diluted
|
|
|
$
|
0.73
|
|
|
|
$
|
0.49
|
|
|
|
$
|
2.15
|
|
|
|
$
|
1.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares Used to Calculate EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
123,392
|
|
|
|
130,738
|
|
|
|
126,004
|
|
|
|
130,417
|
|
|
Diluted
|
|
|
124,601
|
|
|
|
132,611
|
|
|
|
127,239
|
|
|
|
132,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operational Information (in
thousands):
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
June 26, 2015
|
|
|
June 27, 2014
|
|
|
June 26, 2015
|
|
|
June 27, 2014
|
|
Revenues by Major Component:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technical professional services
|
|
|
$
|
1,798,789
|
|
|
|
$
|
1,893,095
|
|
|
|
$
|
5,593,381
|
|
|
|
$
|
5,437,593
|
|
|
Field services
|
|
|
1,108,752
|
|
|
|
1,338,696
|
|
|
|
3,404,497
|
|
|
|
4,039,122
|
|
|
Total
|
|
|
$
|
2,907,541
|
|
|
|
$
|
3,231,791
|
|
|
|
$
|
8,997,878
|
|
|
|
$
|
9,476,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation (pre-tax)
|
|
|
$
|
24,563
|
|
|
|
$
|
25,684
|
|
|
|
$
|
75,718
|
|
|
|
$
|
70,701
|
|
|
Amortization of Intangibles (pre-tax)
|
|
|
$
|
12,555
|
|
|
|
$
|
13,641
|
|
|
|
$
|
38,090
|
|
|
|
$
|
35,329
|
|
|
Pass-Through Costs Included in Revenues
|
|
|
$
|
574,350
|
|
|
|
$
|
700,294
|
|
|
|
$
|
1,896,516
|
|
|
|
$
|
2,152,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
|
|
|
$
|
(10,120
|
)
|
|
|
$
|
(25,081
|
)
|
|
|
$
|
(69,297
|
)
|
|
|
$
|
(92,033
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Balance Sheet and Backlog
Information (in thousands):
|
|
|
|
`
|
|
|
June 26, 2015
|
|
|
June 27, 2014
|
|
Balance Sheet Information:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
553,561
|
|
|
|
$
|
772,613
|
|
Working capital
|
|
|
1,381,203
|
|
|
|
1,583,178
|
|
Total debt
|
|
|
684,750
|
|
|
|
830,767
|
|
Total Jacobs stockholders' equity
|
|
|
$
|
4,352,987
|
|
|
|
$
|
4,501,027
|
|
|
|
|
|
|
|
|
|
Backlog Information:
|
|
|
|
|
|
|
|
Technical professional services
|
|
|
$
|
12,189,183
|
|
|
|
$
|
12,324,244
|
|
Field services
|
|
|
6,624,012
|
|
|
|
6,162,976
|
|
Total
|
|
|
$
|
18,813,195
|
|
|
|
$
|
18,487,220
|
|
|
|
|
|
|
|
|
|
|
|
Non-U.S. GAAP Financial Measures:
The following tables reconcile the U.S. GAAP values of certain elements
of the Company's results of operations to the corresponding "adjusted"
amounts. For fiscal 2015, such adjustments consist of amounts incurred
in connection with the 2015 Restructuring. For the third quarter of
fiscal 2014, such adjustments relate to amounts incurred in connection
with the 2014 Restructuring. For the nine months ended June 27, 2014,
such amounts relate to amounts incurred in connection with the 2014
Restructuring as well as to certain other matters (specifically, project
issues in Europe, unusual impacts of holidays and weather events, SKM
related items, and the gain associated with the sale of VCM technology).
Although such adjusted amounts are non-GAAP in nature, they are
presented because management believes it provides a better view of the
Company’s operating results to investors to assess the Company’s
performance and operating trends. Amounts are shown in thousands, except
for per-share data:
|
Results for third quarter fiscal 2015 as
compared to fiscal 2014:
|
|
|
|
|
|
|
U.S. GAAP
|
|
|
Effects of 2015
Restructuring
|
|
|
Without 2015
Restructuring
|
|
Consolidated pre-tax earnings (loss)
|
|
|
$
|
97,188
|
|
|
|
$
|
(43,622
|
)
|
|
|
$
|
140,810
|
|
|
Tax (expense) benefit
|
|
|
120
|
|
|
|
13,521
|
|
|
|
(13,401
|
)
|
|
Net earnings of the Group
|
|
|
97,308
|
|
|
|
(30,101
|
)
|
|
|
127,409
|
|
|
Non-controlling interests
|
|
|
(6,246
|
)
|
|
|
—
|
|
|
|
(6,246
|
)
|
|
Net earnings of Jacobs
|
|
|
$
|
91,062
|
|
|
|
$
|
(30,101
|
)
|
|
|
$
|
121,163
|
|
|
Diluted earnings (loss) per share
|
|
|
$
|
0.73
|
|
|
|
$
|
(0.24
|
)
|
|
|
$
|
0.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP
|
|
|
Effects of 2014
Events
|
|
|
Without 2014
Events
|
|
Consolidated pre-tax earnings (loss)
|
|
|
$
|
118,046
|
|
|
|
$
|
(56,654
|
)
|
|
|
$
|
174,700
|
|
|
Tax (expense) benefit
|
|
|
(46,737
|
)
|
|
|
9,702
|
|
|
|
(56,439
|
)
|
|
Net earnings of the Group
|
|
|
71,309
|
|
|
|
(46,952
|
)
|
|
|
118,261
|
|
|
Non-controlling interests
|
|
|
(6,467
|
)
|
|
|
—
|
|
|
|
(6,467
|
)
|
|
Net earnings of Jacobs
|
|
|
64,842
|
|
|
|
(46,952
|
)
|
|
|
111,794
|
|
|
Diluted earnings (loss) per share
|
|
|
$
|
0.49
|
|
|
|
$
|
(0.35
|
)
|
|
|
$
|
0.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results for the nine months ended June 26,
2015 as compared to fiscal 2014:
|
|
|
|
|
|
|
U.S. GAAP
|
|
|
Effects of 2015
Restructuring
|
|
|
Without 2015
Restructuring
|
|
Consolidated pre-tax earnings (loss)
|
|
|
$
|
380,845
|
|
|
|
$
|
(57,660
|
)
|
|
|
$
|
438,505
|
|
|
Tax (expense) benefit
|
|
|
(89,232
|
)
|
|
|
17,943
|
|
|
|
(107,175
|
)
|
|
Net earnings of the Group
|
|
|
291,613
|
|
|
|
(39,717
|
)
|
|
|
331,330
|
|
|
Non-controlling interests
|
|
|
(18,505
|
)
|
|
|
—
|
|
|
|
(18,505
|
)
|
|
Net earnings of Jacobs
|
|
|
$
|
273,108
|
|
|
|
$
|
(39,717
|
)
|
|
|
$
|
312,825
|
|
|
Diluted earnings (loss) per share
|
|
|
$
|
2.15
|
|
|
|
$
|
(0.31
|
)
|
|
|
$
|
2.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP
|
|
|
Effects of 2014
Events
|
|
|
Without 2014
Events
|
|
Consolidated pre-tax earnings (loss)
|
|
|
$
|
397,362
|
|
|
|
$
|
(104,865
|
)
|
|
|
$
|
502,227
|
|
|
Tax (expense) benefit
|
|
|
(136,304
|
)
|
|
|
26,112
|
|
|
|
(162,416
|
)
|
|
Net earnings of the Group
|
|
|
261,058
|
|
|
|
(78,753
|
)
|
|
|
339,811
|
|
|
Non-controlling interests
|
|
|
(19,024
|
)
|
|
|
—
|
|
|
|
(19,024
|
)
|
|
Net earnings of Jacobs
|
|
|
$
|
242,034
|
|
|
|
(78,753
|
)
|
|
|
$
|
320,787
|
|
|
Diluted earnings (loss) per share
|
|
|
$
|
1.83
|
|
|
|
$
|
(0.59
|
)
|
|
|
$
|
2.42
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150728005662/en/
Source: Jacobs Engineering Group Inc.