PASADENA, Calif.--(BUSINESS WIRE)--
Jacobs
Engineering Group Inc. (NYSE:JEC) today announced its financial
results for the first quarter of fiscal 2016 ended January 1, 2016.
First Quarter Fiscal 2016 Highlights:
-
U.S. GAAP net earnings and EPS of $47 million and $0.38, respectively;
-
Adjusted net earnings of $95 million;
-
Adjusted EPS of $0.78;
-
Backlog at January 1, 2016 of $18.2 billion;
-
2015 Restructuring (focused on cost effectiveness) - delivering strong
results - now targeting annual savings of $180-200 million;
-
1.0 million shares of common stock repurchased during the first
quarter of fiscal 2016 for $42 million;
Jacobs reported today adjusted net earnings of $95 million, or $0.78 per
diluted share, on revenues of $2.8 billion for its first quarter of
fiscal 2016 ended January 1, 2016 (U.S. GAAP net earnings and EPS were
$47 million and $0.38, respectively). This compares to net earnings of
$100 million, or $0.77 per diluted share, on revenues of $3.2 billion
for the first quarter of fiscal 2015 ended December 26, 2014. Included
in the Company's first quarter adjusted net earnings is a $11 million,
or $0.09 per share, tax benefit related to an international tax matter.
The Company's adjusted net earnings for the first quarter of fiscal 2016
exclude the after-tax costs related to certain restructuring activities
that began during fiscal 2015 (the "2015 Restructuring") totaling $48
million, or $0.40 per diluted share.
Jacobs also announced total backlog of $18.2 billion at January 1, 2016,
including a technical professional services component of $11.4 billion.
Commenting on the results for the first quarter of fiscal 2016, Jacobs
President and CEO Steve Demetriou stated, “Despite strong headwinds in
certain sectors and a challenging macro-economic environment, we
delivered results aligned with our expectations. This performance was
due to our diverse portfolio of customers, geographic footprint and
improvements in project delivery execution. Our performance was also
supported by our efforts to realign our business and streamline
operations, which continues to benefit the Company and right-sizes it in
light of current economic conditions."
Commenting on the Company’s reorganization and its earnings outlook,
Jacobs Chief Financial Officer Kevin Berryman stated, “The Company
remains on track to implement revised segment reporting for our Q2
results, given that the company has begun managing its operations during
Q2 along the previously announced four lines of business: Petroleum &
Chemicals, Building & Infrastructure, Aerospace & Technology, and
Industrial. Regarding our outlook, although the Company met expectations
in the quarter, continuing challenges in certain end-markets require us
to remain cautious as to our near-term outlook. Considering the benefits
we're realizing from our recent restructuring activities, we are
confirming our fiscal 2016 adjusted EPS range of $2.80 to $3.30,
including the discrete international tax item."
Jacobs is hosting a conference call at 11:00 a.m. Eastern Time on
Wednesday, February 3, 2016, 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 October 2, 2015,
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
|
|
|
|
|
January 1,
2016
|
|
|
December 26,
2014
|
|
Revenues
|
|
|
$
|
2,847,934
|
|
|
|
$
|
3,187,005
|
|
|
Costs and Expenses:
|
|
|
|
|
|
|
|
Direct costs of contracts
|
|
|
(2,407,460
|
)
|
|
|
(2,667,559
|
)
|
|
Selling, general, and administrative expenses
|
|
|
(381,024
|
)
|
|
|
(361,223
|
)
|
|
Operating Profit
|
|
|
59,450
|
|
|
|
158,223
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
Interest income
|
|
|
2,220
|
|
|
|
2,276
|
|
|
Interest expense
|
|
|
(3,543
|
)
|
|
|
(5,318
|
)
|
|
Miscellaneous income (expense), net
|
|
|
(340
|
)
|
|
|
(486
|
)
|
|
Total other income (expense), net
|
|
|
(1,663
|
)
|
|
|
(3,528
|
)
|
|
Earnings Before Taxes
|
|
|
57,787
|
|
|
|
154,695
|
|
|
Income Tax Benefit (Expense)
|
|
|
(7,481
|
)
|
|
|
(48,500
|
)
|
|
Net Earnings of the Group
|
|
|
50,306
|
|
|
|
106,195
|
|
|
Net Earnings Attributable to Noncontrolling Interests
|
|
|
(3,792
|
)
|
|
|
(6,116
|
)
|
|
Net Earnings Attributable to Jacobs
|
|
|
$
|
46,514
|
|
|
|
$
|
100,079
|
|
|
Earnings Per Share (“EPS”):
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.38
|
|
|
|
$
|
0.78
|
|
|
Diluted
|
|
|
$
|
0.38
|
|
|
|
$
|
0.77
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares Used to Calculate EPS:
|
|
|
|
|
|
|
|
Basic
|
|
|
120,888
|
|
|
|
128,652
|
|
|
Diluted
|
|
|
121,959
|
|
|
|
129,973
|
|
|
|
|
|
|
|
|
|
|
|
Other Operational Information (in thousands):
|
|
|
|
Three Months Ended
|
|
|
|
|
January 1,
2016
|
|
|
December 26,
2014
|
|
Revenues by Major Component:
|
|
|
|
|
|
|
|
Technical professional services
|
|
|
$
|
1,646,590
|
|
|
|
$
|
1,932,524
|
|
|
Field services
|
|
|
1,201,344
|
|
|
|
1,254,481
|
|
|
Total
|
|
|
$
|
2,847,934
|
|
|
|
$
|
3,187,005
|
|
|
|
|
|
|
|
|
|
|
Depreciation (pre-tax)
|
|
|
$
|
22,167
|
|
|
|
$
|
26,006
|
|
|
Amortization of Intangibles (pre-tax)
|
|
|
$
|
11,726
|
|
|
|
$
|
12,981
|
|
|
Pass-Through Costs Included in Revenues
|
|
|
$
|
670,331
|
|
|
|
$
|
706,830
|
|
|
Capital Expenditures
|
|
|
$
|
(15,987
|
)
|
|
|
$
|
(33,775
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet (in thousands):
|
|
|
|
January 1,
2016
|
|
|
October 2,
2015
|
|
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
443,725
|
|
|
|
$
|
460,859
|
|
|
Receivables
|
|
|
2,424,447
|
|
|
|
2,548,743
|
|
|
Deferred income taxes
|
|
|
139,720
|
|
|
|
160,298
|
|
|
Prepaid expenses and other
|
|
|
104,404
|
|
|
|
113,076
|
|
|
Total current assets
|
|
|
3,112,296
|
|
|
|
3,282,976
|
|
|
Property, Equipment and Improvements, Net
|
|
|
361,006
|
|
|
|
381,238
|
|
|
Other Noncurrent Assets:
|
|
|
|
|
|
|
|
Goodwill
|
|
|
3,059,279
|
|
|
|
3,048,778
|
|
|
Intangibles
|
|
|
345,770
|
|
|
|
353,419
|
|
|
Miscellaneous
|
|
|
737,500
|
|
|
|
719,515
|
|
|
Total other non-current assets
|
|
|
4,142,549
|
|
|
|
4,121,712
|
|
|
|
|
|
$
|
7,615,851
|
|
|
|
$
|
7,785,926
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
Notes payable
|
|
|
$
|
2,833
|
|
|
|
$
|
13,364
|
|
|
Accounts payable
|
|
|
421,206
|
|
|
|
566,866
|
|
|
Accrued liabilities
|
|
|
1,033,906
|
|
|
|
1,090,985
|
|
|
Billings in excess of costs
|
|
|
327,031
|
|
|
|
309,951
|
|
|
Total current liabilities
|
|
|
1,784,976
|
|
|
|
1,981,166
|
|
|
Long-term Debt
|
|
|
621,899
|
|
|
|
584,434
|
|
|
Other Deferred Liabilities
|
|
|
838,717
|
|
|
|
863,868
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
Stockholders’ Equity:
|
|
|
|
|
|
|
|
Capital stock:
|
|
|
|
|
|
|
|
Preferred stock, $1 par value, authorized - 1,000,000 shares; issued
and outstanding - none
|
|
|
—
|
|
|
|
—
|
|
|
Common stock, $1 par value, authorized - 240,000,000 shares; issued
and outstanding—122,776,878 shares and 123,152,966 shares,
respectively
|
|
|
122,777
|
|
|
|
123,153
|
|
|
Additional paid-in capital
|
|
|
1,142,010
|
|
|
|
1,137,144
|
|
|
Retained earnings
|
|
|
3,511,197
|
|
|
|
3,496,212
|
|
|
Accumulated other comprehensive loss
|
|
|
(470,476
|
)
|
|
|
(464,764
|
)
|
|
Total Jacobs stockholders’ equity
|
|
|
4,305,508
|
|
|
|
4,291,745
|
|
|
Noncontrolling interests
|
|
|
64,751
|
|
|
|
64,713
|
|
|
Total Group stockholders’ equity
|
|
|
4,370,259
|
|
|
|
4,356,458
|
|
|
|
|
|
$
|
7,615,851
|
|
|
|
$
|
7,785,926
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog (in thousands):
|
|
|
|
January 1,
2016
|
|
|
December 26,
2014
|
|
Backlog Information:
|
|
|
|
|
|
|
|
Technical professional services
|
|
|
$
|
11,421,400
|
|
|
|
$
|
13,222,400
|
|
Field services
|
|
|
6,801,000
|
|
|
|
5,885,000
|
|
Total
|
|
|
$
|
18,222,400
|
|
|
|
$
|
19,107,400
|
|
|
|
|
|
|
|
|
|
|
|
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 2016, such adjustments
consist of amounts incurred in connection with the 2015 Restructuring.
For the first quarter of fiscal 2015,
there were no such adjustments. 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:
U.S. GAAP Reconciliation for the first quarter
fiscal 2016:
|
|
|
|
U.S. GAAP
|
|
|
Effects of 2015
Restructuring
|
|
|
Without 2015
Restructuring
|
|
Consolidated pre-tax earnings
|
|
|
$
|
57,787
|
|
|
|
$
|
(68,383
|
)
|
|
|
$
|
126,170
|
|
|
Tax expense
|
|
|
(7,481
|
)
|
|
|
20,247
|
|
|
|
(27,728
|
)
|
|
Net earnings of the Group
|
|
|
50,306
|
|
|
|
(48,136
|
)
|
|
|
98,442
|
|
|
Non-controlling interests
|
|
|
(3,792
|
)
|
|
|
—
|
|
|
|
(3,792
|
)
|
|
Net earnings of Jacobs
|
|
|
$
|
46,514
|
|
|
|
$
|
(48,136
|
)
|
|
|
$
|
94,650
|
|
|
Diluted earnings per share
|
|
|
$
|
0.38
|
|
|
|
$
|
(0.40
|
)
|
|
|
$
|
0.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160203005556/en/
Source: Jacobs Engineering Group Inc.