DALLAS, Aug. 3, 2021 /PRNewswire/ -- Jacobs Engineering
Group Inc. (NYSE: J) today announced its financial results for the
fiscal third quarter ended July 2, 2021.
Q3 2021 Highlights:
- Revenue of $3.6
billion1 grew 9.7% year-over-year and net revenue
up 10.6% year-over-year
- EPS from continuing operations of $0.82, impacted by $(0.44) related to an updated non-cash valuation
allocation between PA Consulting preferred and common shares, with
no impact to the original consideration2
- Adjusted EPS from continuing operations of $1.64
- Backlog increased $1.8 billion to
$25.4 billion, up 7%
year-over-year
- Cash flow from operations of $173
million; expecting to exceed FY21 cash conversion
target
- Increases fiscal 2021 adjusted EBITDA and adjusted EPS
outlook3
Jacobs' Chair and CEO Steve
Demetriou commented, "We believe we are entering an
attractive growth period for Jacobs, driven by strong global trends
in infrastructure modernization, energy transition, national
security and a potential super-cycle in global supply chain
investments. We see these opportunities leading to an increasing
and robust sales pipeline developing in FY22 and into FY23."
Demetriou continued, "We are confident that our strong culture,
deep domain knowledge and investments in the latest enabled
solutions have positioned us as the leader in helping our clients
solve these complex global challenges."
Jacobs' President and CFO Kevin
Berryman added, "Our people continue to execute against our
strategic and financial goals, leading to another quarter of strong
results across our lines of business with PA Consulting continuing
to outperform our initial expectations. Cash flow from operations
was robust as we maintained our focus on efficient use of working
capital. This disciplined execution throughout the fiscal year has
again resulted in our ability to raise our full-year outlook.
Looking into fiscal 2022 we are well-positioned to achieve
double-digit adjusted EBITDA growth3, driven by our
alignment to long-term secular trends."
Financial Outlook
The company now expects fiscal 2021 adjusted EBITDA of
$1,210 million to $1,275 million and adjusted EPS of $6.15 to $6.35 from
its previous outlook of adjusted EBITDA of $1,200 million to $1,270
million and adjusted EPS of $6.00 to $6.30.3
The company is also increasing the expected adjusted EPS net
accretion from PA Consulting to $0.35
to $0.37 from $0.32 to $0.34; net
of 35% non-controlling interest and incremental interest costs
required to fund the company's investment
consideration.3
2PA Consulting
The company closed its strategic investment in PA Consulting on
March 2, 2021. Per U.S. GAAP,
$267 million (pre-tax and before
non-controlling interest portion) of the estimated aggregate
consideration for PA Consulting was required to be treated as
post-completion compensation expense in the second fiscal quarter
2021 given retention related requirements applicable to the
distribution of such funds to PA Consulting employees. This
$267 million impact relative to
the announced investment consideration was reflected in Q2 GAAP
SG&A and excluded from adjusted results. The total
consideration for PA Consulting remained consistent at 1.4 billion
pounds.
Of the total price consideration, $261 million in final
consideration amounts (net of forfeitures during the quarter) has
been reflected in fiscal third quarter cash flows from operations
as the net payment given the compensation accounting treatment
noted above.
Additionally, the fiscal third quarter earnings per share
reflect $(57.3) million or
$(0.44) related to an updated
non-cash valuation allocation between PA Consulting preferred and
common shares, with no impact to the original consideration.
See quarterly report on Form 10-Q for discussion of accounting
implications of the PA Consulting transaction.
1Reflects
continuing operations as reported in accordance with GAAP.
3Reconciliation of the adjusted EPS outlook and adjusted
EBITDA outlook for the full fiscal 2021 year and fiscal 2022 to the
most directly comparable GAAP measure is not available without
unreasonable efforts because the Company cannot predict with
sufficient certainty all the components required to provide such
reconciliation, including with respect to the costs and charges
relating to transaction expenses, restructuring and integration to
be incurred in fiscal 2021 and 2022.
|
Third Quarter Review
|
Fiscal Q3
2021
|
Fiscal Q3
2020
|
Change
|
Revenue
|
$3.6
billion
|
$3.3
billion
|
$0.3
billion
|
Net
Revenue
|
$3.0
billion
|
$2.7
billion
|
$0.3
billion
|
GAAP Net Earnings
from Continuing Operations
|
$165
million
|
$227
million
|
($62
million)
|
GAAP Earnings Per
Diluted Share (EPS) from Continuing
Operations
|
$0.82
|
$1.73
|
($0.91)
|
Adjusted Net
Earnings from Continuing Operations
|
$216
million
|
$165
million
|
$51
million
|
Adjusted EPS from
Continuing Operations
|
$1.64
|
$1.26
|
$0.38
|
The company's adjusted net earnings from continuing operations
and adjusted EPS from continuing operations for the third quarter
of fiscal 2021 and fiscal 2020 exclude the adjustments set forth in
the table below. For additional information regarding these
adjustments and a reconciliation of adjusted net earnings and
adjusted EPS to net earnings and EPS, respectively, as well as a
reconciliation of net revenue to revenue, refer to the section
entitled "Non-GAAP Financial Measures" at the end of this
release.
|
Fiscal Q3
2021
|
Fiscal Q3
2020
|
GAAP Net Earnings
from Continuing Operations and Diluted Earnings Per Share
(EPS)
|
$165 million ($0.82
per
share)
|
$227 million ($1.73
per
share)
|
An adjustment to add
back after-tax restructuring, transaction costs and other
charges ($7.6 million and $20.5 million for the
fiscal 2021 and 2020 periods,
respectively before income taxes). Also includes $(57.3) million,
or $(0.44) per
share, in EPS numerator adjustments relating to PA preference
shares redemption
value, which does not affect net earnings.
|
$4 million ($0.47
per
share)
|
$14 million
($0.11 per
share)
|
Other adjustments are
comprised mainly of:
(a) add-back of
amortization of intangible assets of $49.6 million and
$23.1 million
in the 2021 and 2020 periods, respectively,
(b) the
reclassification of revenues under the Company's Transition
Services
Agreement (TSA) with Worley of $1.0 million in fiscal
2020,
(c) the removal
of $38.7 million and $123.1 million in fair value adjustments
related to our investment in Worley stock and certain foreign
currency revaluations
relating to the ECR sale in the 2021 and 2020 periods,
respectively,
(d) the removal of
the fair value adjustment for the Company's investment in
C3.ai,
Inc. ("C3") of $1.0 million in the 2021 period,
(e) the removal
of $30.8 million in additional income tax expense attributable
to
tax rate increases in the UK during in 2021,
(f) associated
noncontrolling interest impacts for the above adjustment items
and
(g) income tax
expense adjustments for the above pre-tax adjustment
items.
|
$46 million
($0.35 per
share)
|
$(76) million
($(0.58)
per share)
|
Adjusted Net Earnings
from Continuing Operations and Adjusted EPS from
Continuing Operations
|
$216 million
($1.64 per
share)
|
$165 million
($1.26 per
share)
|
(note: earnings
per share amounts may not add due to rounding)
|
The Company's U.S. GAAP effective tax rate for continuing
operations is 38.5% for the fiscal third quarter 2021 and includes
a $30.8 million impact from an
increase in UK statutory income tax rates during the period. Fiscal
third quarter 2021 adjusted earnings per share from continuing
operations reflects a 20% adjusted effective tax rate to adjust for
a change in the company's estimated annual adjusted effective tax
rate to 22.5% from 23.8%. The change in estimated tax
rate resulted in an 8 cents per
share tax benefit during the third quarter.
Jacobs is hosting a conference call at 10:00 A.M. ET on Tuesday August 3, 2021, which it
is webcasting live at www.jacobs.com.
About Jacobs
At Jacobs, we're challenging today to
reinvent tomorrow by solving the world's most critical problems for
thriving cities, resilient environments, mission-critical outcomes,
operational advancement, scientific discovery and cutting-edge
manufacturing, turning abstract ideas into realities that transform
the world for good. With $14 billion
in annual revenue and a talent force of approximately 55,000,
Jacobs provides a full spectrum of professional services including
consulting, technical, scientific and project delivery for the
government and private sectors. Visit jacobs.com and connect with
Jacobs on LinkedIn, Twitter, Facebook and Instagram.
Forward-Looking Statements
Certain statements
contained in this press release constitute forward-looking
statements as such term is defined in Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended, and such statements are intended to be
covered by the safe harbor provided by the same. Statements made in
this press release that are not based on historical fact are
forward-looking statements. Examples of forward-looking statements
include, but are not limited to, statements regarding our
expectations as to our future growth, prospects, financial outlook
and business strategy for fiscal 2021 or future fiscal years and
statements regarding our expectations as to accretion from our PA
Consulting investment and the anticipated benefits of that
strategic investment, which are based, in part, on estimates and
assumptions regarding the potential continued effects of the
COVID-19 pandemic on our business, financial condition and results
of operations. 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. Such factors include the
magnitude, timing, duration and ultimate impact of the COVID-19
pandemic, including the emergence and spread of variants of
COVID-19, and any resulting economic downturn on our results,
prospects and opportunities, the timeline for easing or removing
"shelter-in-place", "stay-at-home", social distancing, travel
restrictions and similar orders, measures or restrictions imposed
by governments and health officials in response to the pandemic, or
if such orders, measures or restrictions are re-imposed after being
lifted or eased, including as a result of increases in cases of
COVID-19; the development, effectiveness and distribution of
vaccines or treatments for COVID-19; the timing and scope of any
government stimulus programs enacted in response to the impacts of
the COVID-19 pandemic, including, but not limited to, any proposed
infrastructure-related stimulus programs; and the impact of such
matters includes, but is not limited to, the possible reduction in
demand for certain of our services and the delay or abandonment of
ongoing or anticipated projects due to the financial condition of
our clients and suppliers or to governmental budget constraints or
changes to governmental budgetary priorities; the inability of our
clients to meet their payment obligations in a timely manner or at
all; potential issues and risks related to a significant portion of
our employees working remotely; illness, travel restrictions and
other workforce disruptions that could negatively affect our supply
chain and our ability to timely and satisfactorily complete our
clients' projects; difficulties associated with hiring additional
employees or replacing any furloughed employees; increased
volatility in the capital markets that may affect our ability to
access sources of liquidity on acceptable pricing or borrowing
terms or at all; and the inability of governments in certain of the
countries in which we operate to effectively mitigate the financial
or other impacts of the COVID-19 pandemic on their economies and
workforces and our operations therein. The foregoing factors and
potential future developments are inherently uncertain,
unpredictable and, in many cases, beyond our control. For a
description of these and additional 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 year ended
October 2, 2020, and in particular
the discussions contained therein 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, and our Quarterly Report on Form 10-Q for
the quarter ended July 2, 2021, and
in particular the discussions contained under Part I, Item 2 -
Management's Discussion and Analysis of Financial Condition and
Results of Operations; Part II, Item 1 - Legal Proceedings; and
Part II, Item 1A - Risk Factors, as well as the Company's other
filings with the Securities and Exchange Commission. The Company is
not under any duty to update any of the forward-looking statements
after the date of this press release to conform to actual results,
except as required by applicable law.
Financial Highlights:
Results of
Operations (in thousands, except per-share
data):
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
Unaudited
|
July 2,
2021
|
|
June 26,
2020
|
|
July 2,
2021
|
|
June 26,
2020
|
Revenues
|
$
|
3,576,436
|
|
|
$
|
3,260,057
|
|
|
$
|
10,506,144
|
|
|
$
|
10,047,286
|
|
Direct cost of
contracts
|
(2,759,501)
|
|
|
(2,631,031)
|
|
|
(8,290,137)
|
|
|
(8,125,554)
|
|
Gross
profit
|
816,935
|
|
|
629,026
|
|
|
2,216,007
|
|
|
1,921,732
|
|
Selling, general and
administrative expenses
|
(553,189)
|
|
|
(434,650)
|
|
|
(1,779,435)
|
|
|
(1,408,232)
|
|
Operating
Profit
|
263,746
|
|
|
194,376
|
|
|
436,572
|
|
|
513,500
|
|
Other Income
(Expense):
|
|
|
|
|
|
|
|
Interest
income
|
1,001
|
|
|
1,249
|
|
|
2,733
|
|
|
3,180
|
|
Interest
expense
|
(20,011)
|
|
|
(18,193)
|
|
|
(52,788)
|
|
|
(48,163)
|
|
Miscellaneous income
(expense), net
|
38,658
|
|
|
126,249
|
|
|
138,705
|
|
|
(87,470)
|
|
Total other income
(expense), net
|
19,648
|
|
|
109,305
|
|
|
88,650
|
|
|
(132,453)
|
|
Earnings from
Continuing Operations Before Taxes
|
283,394
|
|
|
303,681
|
|
|
525,222
|
|
|
381,047
|
|
Income Tax Expense
from Continuing Operations
|
(109,186)
|
|
|
(67,674)
|
|
|
(175,437)
|
|
|
(75,041)
|
|
Net Earnings of the
Group from Continuing Operations
|
174,208
|
|
|
236,007
|
|
|
349,785
|
|
|
306,006
|
|
Net Earnings of the
Group from Discontinued Operations
|
384
|
|
|
18,043
|
|
|
11,690
|
|
|
125,511
|
|
Net Earnings of the
Group
|
174,592
|
|
|
254,050
|
|
|
361,475
|
|
|
431,517
|
|
Net Earnings
Attributable to Noncontrolling Interests
from Continuing Operations
|
(9,182)
|
|
|
(9,121)
|
|
|
(29,366)
|
|
|
(21,662)
|
|
Net Loss Attributable
to Redeemable Noncontrolling
interests
|
384
|
|
|
—
|
|
|
101,776
|
|
|
—
|
|
Net Earnings
Attributable to Jacobs from Continuing
Operations
|
165,410
|
|
|
226,886
|
|
|
422,195
|
|
|
284,344
|
|
Net Earnings
Attributable to Jacobs
|
$
|
165,794
|
|
|
$
|
244,929
|
|
|
$
|
433,885
|
|
|
$
|
409,855
|
|
Net Earnings Per
Share:
|
|
|
|
|
|
|
|
Basic Net Earnings
from Continuing Operations Per
Share
|
$
|
0.83
|
|
|
$
|
1.74
|
|
|
$
|
2.80
|
|
|
$
|
2.15
|
|
Basic Net Earnings
from Discontinued Operations Per
Share
|
$
|
—
|
|
|
$
|
0.14
|
|
|
$
|
0.09
|
|
|
$
|
0.95
|
|
Basic Earnings Per
Share
|
$
|
0.83
|
|
|
$
|
1.88
|
|
|
$
|
2.89
|
|
|
$
|
3.11
|
|
|
|
|
|
|
|
|
|
Diluted Net Earnings
from Continuing Operations Per
Share
|
$
|
0.82
|
|
|
$
|
1.73
|
|
|
$
|
2.78
|
|
|
$
|
2.13
|
|
Diluted Net Earnings
from Discontinued Operations
Per Share
|
$
|
—
|
|
|
$
|
0.14
|
|
|
$
|
0.09
|
|
|
$
|
0.94
|
|
Diluted Earnings Per
Share
|
$
|
0.83
|
|
|
$
|
1.87
|
|
|
$
|
2.87
|
|
|
$
|
3.08
|
|
|
|
|
|
|
|
|
|
Segment
Information (in thousands):
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
Unaudited
|
July 2,
2021
|
|
June 26,
2020
|
|
July 2,
2021
|
|
June 26,
2020
|
Revenues from
External Customers:
|
|
|
|
|
|
|
|
Critical Mission
Solutions
|
$
|
1,218,089
|
|
|
$
|
1,211,143
|
|
|
$
|
3,822,949
|
|
|
$
|
3,636,978
|
|
People & Places
Solutions
|
2,102,550
|
|
|
2,048,914
|
|
|
6,329,088
|
|
|
6,410,308
|
|
Pass Through
Revenue
|
(612,045)
|
|
|
(578,717)
|
|
|
(1,837,350)
|
|
|
(1,921,863)
|
|
People & Places
Solutions Net Revenue
|
$
|
1,490,505
|
|
|
$
|
1,470,197
|
|
|
$
|
4,491,738
|
|
|
$
|
4,488,445
|
|
PA
Consulting
|
$
|
255,797
|
|
|
$
|
—
|
|
|
$
|
354,107
|
|
|
$
|
—
|
|
Total
Revenue
|
$
|
3,576,436
|
|
|
$
|
3,260,057
|
|
|
$
|
10,506,144
|
|
|
$
|
10,047,286
|
|
Net Revenue
|
$
|
2,964,391
|
|
|
$
|
2,681,340
|
|
|
$
|
8,668,794
|
|
|
$
|
8,125,423
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
July 2,
2021
|
|
June 26,
2020
|
|
July 2,
2021
|
|
June 26,
2020
|
Segment Operating
Profit:
|
|
|
|
|
|
|
|
Critical Mission
Solutions
|
$
|
108,131
|
|
|
$
|
89,608
|
|
|
$
|
332,133
|
|
|
$
|
264,323
|
|
People & Places
Solutions
|
205,324
|
|
|
190,453
|
|
|
603,654
|
|
|
557,864
|
|
PA
Consulting
|
56,791
|
|
|
—
|
|
|
84,708
|
|
|
—
|
|
Total Segment
Operating Profit
|
370,246
|
|
|
280,061
|
|
|
1,020,495
|
|
|
822,187
|
|
Other Corporate
Expenses (1)
|
(104,532)
|
|
|
(65,213)
|
|
|
(238,198)
|
|
|
(193,148)
|
|
Restructuring,
Transaction and Other Charges (2)
|
(1,968)
|
|
|
(20,472)
|
|
|
(345,725)
|
|
|
(115,539)
|
|
Total U.S. GAAP
Operating Profit
|
263,746
|
|
|
194,376
|
|
|
436,572
|
|
|
513,500
|
|
Total Other Income
(Expense), net (3)
|
19,648
|
|
|
109,305
|
|
|
88,650
|
|
|
(132,453)
|
|
Earnings from
Continuing Operations Before Taxes
|
$
|
283,394
|
|
|
$
|
303,681
|
|
|
$
|
525,222
|
|
|
$
|
381,047
|
|
|
|
(1)
|
Other corporate
expenses also include intangibles amortization of $49.6 million and
$23.1 million for the three months ended July 2, 2021 and
June 26, 2020, respectively, and $103.3 million and $67.1
million for the nine months ended July 2, 2021 and
June 26, 2020, respectively.
|
(2)
|
Included in the three
and nine months ended July 2, 2021 are $(2.8) million and
$297.4 million, respectively, of costs incurred in connection with
the investment in PA Consulting, in part classified as compensation
costs.
|
(3)
|
The three and nine
months ended July 2, 2021 include $38.7 million and
$102.2 million, respectively, in fair value adjustments
related to our investment in Worley stock (net of Worley stock
dividend) and certain foreign currency revaluations relating to the
ECR sale, $1.0 million and $49.6 million, respectively, in fair
value adjustments related to our investment in C3 stock. The nine
months ended July 2, 2021 also includes $(38.9) million
related to impairment of our AWE Management Ltd. investment. The
three and nine months ended June 26, 2020 include revenues
under the Company's TSA with Worley of $1.0 million and $15.2
million, respectively, and $123.1 million and $(119.0) million,
respectively, in fair value adjustments related to our investment
in Worley stock (net of Worley stock dividend) and certain foreign
currency revaluations relating to the ECR sale.
|
Balance Sheet
(in thousands):
|
|
Unaudited
|
July 2,
2021
|
|
October 2,
2020
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
966,146
|
|
|
$
|
862,424
|
|
Receivables and
contract assets
|
3,188,950
|
|
|
3,167,310
|
|
Prepaid expenses and
other
|
137,072
|
|
|
162,355
|
|
Investment in equity
securities
|
450,113
|
|
|
347,510
|
|
Total current
assets
|
4,742,281
|
|
|
4,539,599
|
|
Property, Equipment
and Improvements, net
|
355,252
|
|
|
319,371
|
|
Other Noncurrent
Assets:
|
|
|
|
Goodwill
|
7,232,270
|
|
|
5,639,091
|
|
Intangibles,
net
|
1,635,221
|
|
|
658,340
|
|
Deferred income tax
assets
|
178,901
|
|
|
211,047
|
|
Operating lease
right-of-use assets
|
671,867
|
|
|
576,915
|
|
Miscellaneous
|
393,492
|
|
|
409,990
|
|
Total other noncurrent
assets
|
10,111,751
|
|
|
7,495,383
|
|
|
$
|
15,209,284
|
|
|
$
|
12,354,353
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Short-term
debt
|
$
|
53,813
|
|
|
$
|
—
|
|
Accounts
payable
|
923,265
|
|
|
1,061,754
|
|
Accrued
liabilities
|
1,525,987
|
|
|
1,249,883
|
|
Operating lease
liability
|
174,698
|
|
|
164,312
|
|
Contract
liabilities
|
565,457
|
|
|
465,648
|
|
Total current
liabilities
|
3,243,220
|
|
|
2,941,597
|
|
Long-term
Debt
|
3,067,745
|
|
|
1,676,941
|
|
Liabilities relating
to defined benefit pension and retirement plans
|
537,240
|
|
|
568,176
|
|
Deferred income tax
liabilities
|
204,262
|
|
|
3,366
|
|
Long-term operating
lease liability
|
792,602
|
|
|
735,202
|
|
Other deferred
liabilities
|
576,423
|
|
|
573,404
|
|
Commitments and
Contingencies
|
|
|
|
Redeemable
Noncontrolling interests
|
601,175
|
|
|
—
|
|
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
-
130,293,392 shares and 129,747,783 shares as of July 2, 2021
and October 2, 2020,
respectively
|
130,293
|
|
|
129,748
|
|
Additional paid-in
capital
|
2,646,851
|
|
|
2,598,446
|
|
Retained
earnings
|
4,246,173
|
|
|
4,020,575
|
|
Accumulated other
comprehensive loss
|
(870,411)
|
|
|
(933,057)
|
|
Total Jacobs
stockholders' equity
|
6,152,906
|
|
|
5,815,712
|
|
Noncontrolling
interests
|
33,711
|
|
|
39,955
|
|
Total Group
stockholders' equity
|
6,186,617
|
|
|
5,855,667
|
|
|
$
|
15,209,284
|
|
|
$
|
12,354,353
|
|
Statement of
Cash Flow (in thousands):
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
Unaudited
|
July 2,
2021
|
|
June 26,
2020
|
|
July 2,
2021
|
|
June 26,
2020
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
Net earnings
attributable to the Group
|
$
|
174,592
|
|
|
$
|
254,050
|
|
|
$
|
361,475
|
|
|
$
|
431,517
|
|
Adjustments to
reconcile net earnings to net cash flows provided by
operations:
|
|
|
|
|
|
|
|
Depreciation and
amortization:
|
|
|
|
|
|
|
|
Property, equipment
and improvements
|
26,405
|
|
|
22,276
|
|
|
74,484
|
|
|
66,994
|
|
Intangible
assets
|
49,555
|
|
|
23,135
|
|
|
103,308
|
|
|
67,074
|
|
Gain on sale of ECR
business
|
—
|
|
|
(31,456)
|
|
|
(15,608)
|
|
|
(113,366)
|
|
(Gain) loss on
investment in equity securities
|
(37,702)
|
|
|
(131,350)
|
|
|
(152,145)
|
|
|
138,875
|
|
Stock based
compensation
|
14,542
|
|
|
12,373
|
|
|
41,519
|
|
|
36,208
|
|
Equity in earnings of
operating ventures, net of return on capital
distributions
|
(3,092)
|
|
|
(1,924)
|
|
|
3,261
|
|
|
(1,689)
|
|
Loss (gain) on
disposals of assets, net
|
396
|
|
|
(54)
|
|
|
749
|
|
|
(301)
|
|
Impairment of equity
method investment and other long term assets
|
6,941
|
|
|
—
|
|
|
40,138
|
|
|
—
|
|
Loss on pension and
retiree medical plan changes
|
—
|
|
|
—
|
|
|
—
|
|
|
2,651
|
|
Deferred income
taxes
|
(2,644)
|
|
|
(10,967)
|
|
|
38,419
|
|
|
62,473
|
|
Changes in assets and
liabilities, excluding the effects of businesses
acquired:
|
|
|
|
|
|
|
|
Receivables and
contract assets, net of contract liabilities
|
158,450
|
|
|
78,070
|
|
|
231,992
|
|
|
(135,615)
|
|
Prepaid expenses and
other current assets
|
32,681
|
|
|
28,679
|
|
|
47,202
|
|
|
19,902
|
|
Miscellaneous other
assets
|
31,510
|
|
|
9,094
|
|
|
107,911
|
|
|
77,524
|
|
Accounts
payable
|
2,014
|
|
|
37,585
|
|
|
(150,736)
|
|
|
(115,080)
|
|
Accrued
liabilities
|
(257,970)
|
|
|
(25,296)
|
|
|
(158,772)
|
|
|
(78,863)
|
|
Other deferred
liabilities
|
(22,495)
|
|
|
97,082
|
|
|
(44,985)
|
|
|
(56,426)
|
|
Other, net
|
158
|
|
|
(1,789)
|
|
|
(4,639)
|
|
|
(27,402)
|
|
Net cash provided by operating activities
|
173,341
|
|
|
359,508
|
|
|
523,573
|
|
|
374,476
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
Additions to property
and equipment
|
(20,617)
|
|
|
(27,484)
|
|
|
(65,670)
|
|
|
(88,821)
|
|
Disposals of property
and equipment and other assets
|
41
|
|
|
58
|
|
|
468
|
|
|
96
|
|
Capital contributions
to equity investees, net of return of capital
distributions
|
—
|
|
|
—
|
|
|
(4,193)
|
|
|
(12,358)
|
|
Acquisitions of
businesses, net of cash acquired
|
—
|
|
|
—
|
|
|
(1,741,062)
|
|
|
(286,534)
|
|
Disposal of investment
in equity securities
|
38,994
|
|
|
—
|
|
|
52,021
|
|
|
—
|
|
Proceeds (payments)
related to sales of businesses
|
—
|
|
|
—
|
|
|
36,360
|
|
|
(5,061)
|
|
Net cash provided by (used for) investing activities
|
18,418
|
|
|
(27,426)
|
|
|
(1,722,076)
|
|
|
(392,678)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
Net (repayments)
proceeds from borrowings
|
(358,503)
|
|
|
(954,863)
|
|
|
1,423,854
|
|
|
756,508
|
|
Debt issuance
costs
|
(50)
|
|
|
—
|
|
|
(2,747)
|
|
|
(1,807)
|
|
Proceeds from
issuances of common stock
|
11,130
|
|
|
9,873
|
|
|
29,715
|
|
|
28,793
|
|
Common stock
repurchases
|
—
|
|
|
—
|
|
|
(24,949)
|
|
|
(285,822)
|
|
Taxes paid on vested
restricted stock
|
(154)
|
|
|
(2,913)
|
|
|
(25,796)
|
|
|
(27,655)
|
|
Cash dividends,
including to noncontrolling interests
|
(38,004)
|
|
|
(33,991)
|
|
|
(119,884)
|
|
|
(97,521)
|
|
Net cash (used for) provided by financing activities
|
(385,581)
|
|
|
(981,894)
|
|
|
1,280,193
|
|
|
372,496
|
|
Effect of Exchange Rate
Changes
|
5,699
|
|
|
18,743
|
|
|
34,617
|
|
|
39,448
|
|
Net (Decrease) Increase
in Cash and Cash Equivalents and Restricted Cash
|
(188,123)
|
|
|
(631,069)
|
|
|
116,307
|
|
|
393,742
|
|
Cash and Cash
Equivalents, including Restricted Cash, at the Beginning of the
Period
|
1,166,854
|
|
|
1,655,879
|
|
|
862,424
|
|
|
631,068
|
|
Cash and Cash
Equivalents, including Restricted Cash, at the End of the
Period
|
$
|
978,731
|
|
|
$
|
1,024,810
|
|
|
$
|
978,731
|
|
|
$
|
1,024,810
|
|
Backlog (in
millions):
|
|
|
July 2,
2021
|
|
June 26,
2020
|
Critical Mission
Solutions
|
$
|
9,565
|
|
|
$
|
9,066
|
|
People & Places
Solutions
|
15,557
|
|
|
14,608
|
|
PA
Consulting
|
314
|
|
|
—
|
|
Total
|
$
|
25,436
|
|
|
$
|
23,674
|
|
Non-GAAP Financial Measures:
In this press release, the Company has included certain non-GAAP
financial measures as defined in Regulation G promulgated under the
Securities Exchange Act of 1934, as amended. The non-GAAP financial
measures included in this press release are net revenue, adjusted
net earnings from continuing operations, adjusted EPS from
continuing operations, adjusted EBITDA outlook, adjusted EPS
accretion outlook and adjusted effective tax rate.
Net revenue is calculated excluding pass-through revenue of the
Company's People & Places Solutions segment from the Company's
revenue from continuing operations. Adjusted net earnings from
continuing operations and adjusted EPS from continuing operations
are calculated by (i) excluding the costs related to our 2015
restructuring activities, which included involuntary terminations,
the abandonment of certain leased offices, combining operational
organizations and the co-location of employees into other existing
offices; and charges associated with our Europe, U.K. and Middle East region, which included write-offs
on contract accounts receivable and charges for statutory
redundancy and severance costs; (ii) excluding costs and other
charges associated with restructuring activities implemented in
connection with the acquisitions of The KeyW Holding Corporation
("KeyW"), CH2M, John Wood Group nuclear business and Buffalo Group,
and the strategic investment in PA Consulting, the sale of the ECR
business and other related cost reduction initiatives, which
included involuntary terminations, costs associated with
co-locating Jacobs, KeyW and CH2M offices, separating physical
locations of ECR and continuing operations, professional services
and personnel costs, costs and charges associated with the
divestiture of joint venture interests to resolve potential
conflicts arising from the CH2M acquisition, expenses relating to
certain commitments and contingencies relating to discontinued
operations of the CH2M business, charges associated with certain
operations in India, which
included write-offs on contract accounts receivable and other
accruals, and similar costs and expenses; (iii) excluding the costs
and other charges associated with our Focus 2023 transformation
initiatives commenced in the fourth quarter of fiscal 2020, which
included costs and charges associated with the re-scaling and
repurposing of physical office space, voluntary employee
separations, contractual termination fees and related expenses (the
amounts referred in (i), (ii) and (iii) are collectively referred
to as the "Restructuring and other charges"); (iv) excluding
transaction costs and other charges incurred in connection with
closing of the KeyW, CH2M, John Wood Group nuclear business and
Buffalo Group acquisitions and the strategic investment in PA
Consulting, including advisor fees, change in control payments,
costs and expenses relating to the registration and listing of
Jacobs stock issued in connection with the CH2M
acquisition, certain consideration amounts for PA Consulting
that were required to be treated as post-completion compensation
expense given retention related requirements applicable to the
distribution of such funds to PA Consulting employees, and impacts
resulting from the non-cash purchase accounting adjustment related
to the investment in PA Consulting to reflect a change in the
preliminary purchase price allocation for the redeemable
non-controlling interests , the impact of the third quarter
adjustment to the estimated future payout of contingent
consideration to the sellers in the Buffalo Group acquisition, and
similar transaction costs and expenses (collectively referred to as
"transaction costs"); (v) adding back amortization of intangible
assets; (vi) the reclassification of revenue under the Company's
transition services agreement (TSA) with Worley included in other
income for U.S. GAAP reporting purposes to SG&A and the
exclusion of remaining unreimbursed costs associated with the TSA;
(vii) the removal of fair value adjustments and dividend income
related to the Company's investments in Worley and C3 stock and
certain foreign currency revaluations relating to ECR sale
proceeds; (viii) excluding charges resulting from the revaluation
of certain deferred tax assets/liabilities in connection with U.S.
tax reform and tax rate increases in the United Kingdom during fiscal 2021; (ix)
charges associated with the impairment of our investment in AWE;
(x) certain non-routine income tax adjustments for the
purposes of calculating the Company's annual non-GAAP
effective tax rate to facilitate a more meaningful evaluation of
the Company's current operating performance and comparisons to the
Company's operating performance in other periods and (xi)
other income tax adjustments associated with the pre-tax income
adjustments above. Adjustments to derive adjusted net earnings from
continuing operations and adjusted EPS from continuing operations
are calculated on an after-tax basis.
For fiscal 2021 outlook, the Company calculated adjusted EBITDA
by adding income tax expense, depreciation expense and interest
expense, and deducting interest income from adjusted net earnings
from continuing operations.
We believe that net revenue, adjusted net earnings from
continuing operations, adjusted EPS from continuing operations,
adjusted EBITDA and adjusted effective tax rate are useful to
management, investors and other users of our financial information
in evaluating the Company's operating results and understanding the
Company's operating trends by excluding or adding back the effects
of the items described above and below, the inclusion or exclusion
of which can obscure underlying trends. Additionally, management
uses such measures in its own evaluation of the Company's
performance, particularly when comparing performance to past
periods, and believes these measures are useful for investors
because they facilitate a comparison of our financial results from
period to period.
The Company provides non-GAAP measures to supplement U.S. GAAP
measures, as they provide additional insight into the Company's
financial results. However, non-GAAP measures have limitations as
analytical tools and should not be considered in isolation and are
not in accordance with, or a substitute for, U.S. GAAP measures. In
addition, other companies may define non-GAAP measures differently,
which limits the ability of investors to compare non-GAAP measures
of the Company to those used by our peer companies.
The following tables reconcile the components and values of U.S.
GAAP net earnings from continuing operations and EPS from
continuing operations to the corresponding "adjusted" amounts and
revenue from continuing operations to net revenue. For the
comparable periods presented below, such adjustments consist of
amounts incurred in connection with the items described above.
Amounts are shown in thousands, except for per-share data.
Reconciliation of the adjusted EPS and adjusted EBITDA outlook and
adjusted EPS accretion outlook for fiscal 2021 and 2020 to
the most directly comparable GAAP measure is not available without
unreasonable efforts because the Company cannot predict with
sufficient certainty all the components required to provide such
reconciliation (note: earnings per share amounts may not add across
due to rounding).
U.S. GAAP
Reconciliation for the third quarter of fiscal 2021 and
2020
|
|
|
Three Months
Ended
|
|
July 2,
2021
|
Unaudited
|
U.S.
GAAP
|
|
Effects of
Restructuring,
Transaction
and Other
Charges (1)
|
|
Other
Adjustments
(2)
|
|
Adjusted
|
Revenues
|
$
|
3,576,436
|
|
$
|
—
|
|
$
|
—
|
|
$
|
3,576,436
|
Pass through
revenue
|
—
|
|
—
|
|
(612,045)
|
|
(612,045)
|
Net
revenue
|
3,576,436
|
|
—
|
|
(612,045)
|
|
2,964,391
|
Direct cost of
contracts
|
(2,759,501)
|
|
(3)
|
|
612,045
|
|
(2,147,459)
|
Gross
profit
|
816,935
|
|
(3)
|
|
—
|
|
816,932
|
Selling, general and
administrative expenses
|
(553,189)
|
|
1,971
|
|
49,555
|
|
(501,663)
|
Operating
Profit
|
263,746
|
|
1,968
|
|
49,555
|
|
315,269
|
Total other income
(expense), net
|
19,648
|
|
5,674
|
|
(39,693)
|
|
(14,371)
|
Earnings from
Continuing Operations Before Taxes
|
283,394
|
|
7,642
|
|
9,862
|
|
300,898
|
Income Tax Expense
from Continuing Operations
|
(109,186)
|
|
(7,287)
|
|
56,107
|
|
(60,366)
|
Net Earnings of the
Group from Continuing Operations
|
174,208
|
|
355
|
|
65,969
|
|
240,532
|
Net Earnings
Attributable to Noncontrolling Interests from
Continuing Operations
|
(9,182)
|
|
—
|
|
—
|
|
(9,182)
|
Net Loss Attributable
to Redeemable Noncontrolling interests
|
384
|
|
3,553
|
|
(19,614)
|
|
(15,677)
|
Net Earnings
Attributable to Jacobs from Continuing Operations
|
165,410
|
|
3,908
|
|
46,355
|
|
215,673
|
Net Earnings
Attributable to Discontinued Operations
|
384
|
|
—
|
|
—
|
|
384
|
Net Earnings
attributable to Jacobs
|
$
|
165,794
|
|
$
|
3,908
|
|
$
|
46,355
|
|
$
|
216,057
|
Preferred Redeemable
Noncontrolling interests redemption
value adjustment
|
(57,307)
|
|
57,307
|
|
—
|
|
—
|
Net earnings from
continuing operations
allocated to common stock for EPS calculation
|
$
|
108,103
|
|
$
|
61,215
|
|
$
|
46,355
|
|
$
|
215,673
|
Diluted Net Earnings
from Continuing Operations Per Share
|
$
|
0.82
|
|
$
|
0.47
|
|
$
|
0.35
|
|
$
|
1.64
|
Diluted Net Earnings
from Discontinued Operations Per
Share
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
Diluted Earnings Per
Share
|
$
|
0.83
|
|
$
|
0.47
|
|
$
|
0.35
|
|
$
|
1.64
|
Operating profit
margin
|
7.4 %
|
|
|
|
|
|
10.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes charges
associated with various restructuring, transaction and other
related activity costs associated with Company transformation and
acquisition related programs. Also includes $(57.3) million or
$(0.44) per share in EPS numerator adjustments relating to the PA
preference shares redemption value, which does not affect net
earnings.
|
|
|
(2)
Includes mainly (a) the removal of pass
through revenues and costs for the People & Places Solutions
line of business for the calculation of operating profit margin as
a percentage of net revenue of $612.0 million, (b) the removal of
amortization of intangible assets of $49.6 million, (c) the removal
of $38.7 million in fair value adjustments related to our
investment in Worley stock and certain foreign currency
revaluations relating to the ECR sale, (d) the removal of the fair
value adjustment of the Company's investment in C3 of $1.0 million,
(e) the exclusion of impacts on the Company's effective tax rates
associated with revised estimates on US taxation of certain foreign
earnings, certain tax return filing adjustments and the removal of
$30.8 million in additional income tax expense attributable to tax
rate increases in the UK during in 2021, (f) associated
noncontrolling interest impacts for the above adjustment items and
(g) income tax expense adjustments for the above pre-tax adjustment
items.
|
|
Three Months
Ended
|
|
June 26,
2020
|
Unaudited
|
U.S.
GAAP
|
|
Effects of
Restructuring,
Transaction
and Other
Charges
|
|
Other
Adjustments (1)
|
|
Adjusted
|
Revenues
|
$
|
3,260,057
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
3,260,057
|
Pass through
revenue
|
—
|
|
—
|
|
(578,717)
|
|
|
(578,717)
|
Net
revenue
|
3,260,057
|
|
—
|
|
(578,717)
|
|
|
2,681,340
|
Direct cost of
contracts
|
(2,631,031)
|
|
1,841
|
|
578,717
|
|
|
(2,050,473)
|
Gross
profit
|
629,026
|
|
1,841
|
|
—
|
|
|
630,867
|
Selling, general and
administrative expenses
|
(434,650)
|
|
18,631
|
|
24,083
|
|
|
(391,936)
|
Operating
Profit
|
194,376
|
|
20,472
|
|
24,083
|
|
|
238,931
|
Total other income
(expense), net
|
109,305
|
|
—
|
|
(123,971)
|
|
|
(14,666)
|
Earnings from
Continuing Operations Before Taxes
|
303,681
|
|
20,472
|
|
(99,888)
|
|
|
224,265
|
Income Tax Expense
from Continuing Operations
|
(67,674)
|
|
(6,351)
|
|
24,125
|
|
|
(49,900)
|
Net Earnings of the
Group from Continuing Operations
|
236,007
|
|
14,121
|
|
(75,763)
|
|
|
174,365
|
Net Earnings
Attributable to Noncontrolling Interests from
Continuing Operations
|
(9,121)
|
|
—
|
|
—
|
|
|
(9,121)
|
Net Earnings from
Continuing Operations attributable to Jacobs
|
226,886
|
|
14,121
|
|
(75,763)
|
|
|
165,244
|
Net Earnings
Attributable to Discontinued Operations
|
18,043
|
|
—
|
|
—
|
|
|
18,043
|
Net Earnings
attributable to Jacobs
|
$
|
244,929
|
|
$
|
14,121
|
|
$
|
(75,763)
|
|
|
$
|
183,287
|
Diluted Net Earnings
from Continuing Operations Per Share
|
$
|
1.73
|
|
$
|
0.11
|
|
$
|
(0.58)
|
|
|
$
|
1.26
|
Diluted Net Earnings
from Discontinued Operations Per Share
|
$
|
0.14
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
0.14
|
Diluted Earnings Per
Share
|
$
|
1.87
|
|
$
|
0.11
|
|
$
|
(0.58)
|
|
|
$
|
1.40
|
Operating profit
margin
|
6.0 %
|
|
|
|
|
|
8.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes (a) the
removal of pass through revenues and costs for the People &
Places Solutions line of business for the calculation of operating
profit margin as a percentage of net revenue of $578.7 million, (b)
the removal of amortization of intangible assets of $23.1 million,
(c) the reclassification of revenues under the Company's TSA of
$1.0 million included in other income for U.S. GAAP reporting
purposes to SG&A, (d) the removal of $123.1 million in fair
value adjustments related to our investment in Worley stock (net of
Worley stock dividend) and certain foreign currency revaluations
relating to the ECR sale and (e) associated income tax expense
adjustments for the above pre-tax adjustment items.
|
|
Nine Months
Ended
|
|
July 2,
2021
|
Unaudited
|
U.S.
GAAP
|
|
Effects of
Restructuring,
Transaction
and Other
Charges (1)
|
|
Other
Adjustments (2)
|
|
Adjusted
|
Revenues
|
$
|
10,506,144
|
|
$
|
—
|
|
$
|
—
|
|
$
|
10,506,144
|
Pass through
revenue
|
—
|
|
—
|
|
(1,837,350)
|
|
(1,837,350)
|
Net
revenue
|
10,506,144
|
|
—
|
|
(1,837,350)
|
|
8,668,794
|
Direct cost of
contracts
|
(8,290,137)
|
|
283
|
|
1,837,350
|
|
(6,452,504)
|
Gross
profit
|
2,216,007
|
|
283
|
|
—
|
|
2,216,290
|
Selling, general and
administrative expenses
|
(1,779,435)
|
|
345,442
|
|
103,282
|
|
(1,330,711)
|
Operating
Profit
|
436,572
|
|
345,725
|
|
103,282
|
|
885,579
|
Total other income
(expense), net
|
88,650
|
|
42,871
|
|
(151,992)
|
|
(20,471)
|
Earnings from
Continuing Operations Before Taxes
|
525,222
|
|
388,596
|
|
(48,710)
|
|
865,108
|
Income Tax Expense
from Continuing Operations
|
(175,437)
|
|
(29,398)
|
|
10,186
|
|
(194,649)
|
Net Earnings of the
Group from Continuing Operations
|
349,785
|
|
359,198
|
|
(38,524)
|
|
670,459
|
Net Earnings
Attributable to Noncontrolling Interests from
Continuing Operations
|
(29,366)
|
|
—
|
|
—
|
|
(29,366)
|
Net Loss Attributable
to Redeemable Noncontrolling
interests
|
101,776
|
|
(103,480)
|
|
(20,981)
|
|
(22,685)
|
Net Earnings
Attributable to Jacobs from Continuing
Operations
|
422,195
|
|
255,718
|
|
(59,505)
|
|
618,408
|
Net Earnings
Attributable to Discontinued Operations
|
11,690
|
|
—
|
|
—
|
|
11,690
|
Net Earnings
attributable to Jacobs
|
$
|
433,885
|
|
$
|
255,718
|
|
$
|
(59,505)
|
|
$
|
630,098
|
Preferred Redeemable
Noncontrolling interests
redemption value adjustment
|
(57,307)
|
|
57,307
|
|
—
|
|
—
|
Net earnings from
continuing operations
allocated to common stock for EPS calculation
|
$
|
364,888
|
|
$
|
313,025
|
|
$
|
(59,505)
|
|
$
|
618,408
|
Diluted Net Earnings
from Continuing Operations
Per Share
|
$
|
2.78
|
|
$
|
2.39
|
|
$
|
(0.45)
|
|
$
|
4.71
|
Diluted Net Earnings
from Discontinued Operations Per
Share
|
$
|
0.09
|
|
$
|
—
|
|
$
|
—
|
|
$
|
0.09
|
Diluted Earnings Per
Share
|
$
|
2.87
|
|
$
|
2.39
|
|
$
|
(0.45)
|
|
$
|
4.80
|
Operating profit
margin
|
4.2 %
|
|
|
|
|
|
10.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes charges
associated with various restructuring, transaction and other
related activity costs associated with Company transformation and
acquisition related programs, impairment charges relating to our
investment in AWE, along with after-tax $287.2 million in PA
Consulting deal related costs and associated noncontrolling
interest impacts for the above adjustment items . Also includes
$(57.3) million or $(0.44) per share in EPS numerator adjustments
relating to the PA preference shares redemption value, which
does not affect net earnings.
|
|
(2) Includes mainly
(a) the removal of pass through revenues and costs for the People
& Places Solutions line of business for the calculation of
operating profit margin as a percentage of net revenue of $1.8
billion, (b) the removal of amortization of intangible assets of
$103.3 million, (c) the removal of $102.2 million in fair value
adjustments related to our investment in Worley stock (net of
Worley stock dividend) and certain foreign currency revaluations
relating to the ECR sale, (d) the removal of the fair value
adjustment of the Company's investment in C3 of $49.6 million, (e)
the exclusion of impacts on the Company's effective tax rates
associated with revised estimates on US taxation of certain foreign
earnings, certain tax return filing adjustments and the removal of
$30.8 million in additional income tax expense attributable to tax
rate increases in the UK during in 2021, (f) associated
noncontrolling interest impacts for the above adjustment items and
(g) income tax expense adjustments for the above pre-tax adjustment
items.
|
|
Nine Months
Ended
|
|
June 26,
2020
|
Unaudited
|
U.S.
GAAP
|
|
Effects of
Restructuring,
Transaction
and Other
Charges
|
|
Other
Adjustments (1)
|
|
Adjusted
|
Revenues
|
$
|
10,047,286
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,047,286
|
Pass through
revenue
|
—
|
|
—
|
|
|
(1,921,863)
|
|
|
(1,921,863)
|
Net
revenue
|
10,047,286
|
|
—
|
|
|
(1,921,863)
|
|
|
8,125,423
|
Direct cost of
contracts
|
(8,125,554)
|
|
1,841
|
|
|
1,921,863
|
|
|
(6,201,850)
|
Gross
profit
|
1,921,732
|
|
1,841
|
|
|
—
|
|
|
1,923,573
|
Selling, general and
administrative expenses
|
(1,408,232)
|
|
113,698
|
|
|
82,962
|
|
|
(1,211,572)
|
Operating
Profit
|
513,500
|
|
115,539
|
|
|
82,962
|
|
|
712,001
|
Total other (expense)
income, net
|
(132,453)
|
|
2,799
|
|
103,720
|
|
|
(25,934)
|
Earnings from
Continuing Operations Before Taxes
|
381,047
|
|
118,338
|
|
|
186,682
|
|
|
686,067
|
Income Tax Expense
from Continuing Operations
|
(75,041)
|
|
(31,133)
|
|
|
(45,069)
|
|
|
(151,243)
|
Net Earnings of the
Group from Continuing Operations
|
306,006
|
|
87,205
|
|
|
141,613
|
|
|
534,824
|
Net Earnings
Attributable to Noncontrolling Interests from
Continuing Operations
|
(21,662)
|
|
—
|
|
|
—
|
|
|
(21,662)
|
Net Earnings from
Continuing Operations attributable to Jacobs
|
284,344
|
|
87,205
|
|
|
141,613
|
|
|
513,162
|
Net Earnings
Attributable to Discontinued Operations
|
125,511
|
|
—
|
|
|
—
|
|
|
125,511
|
Net Earnings
attributable to Jacobs
|
$
|
409,855
|
|
$
|
87,205
|
|
|
$
|
141,613
|
|
|
$
|
638,673
|
Diluted Net Earnings
from Continuing Operations Per Share
|
$
|
2.13
|
|
$
|
0.65
|
|
|
$
|
1.06
|
|
|
$
|
3.85
|
Diluted Net Earnings
from Discontinued Operations Per Share
|
$
|
0.94
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.94
|
Diluted Earnings Per
Share
|
$
|
3.08
|
|
$
|
0.65
|
|
|
$
|
1.06
|
|
|
$
|
4.80
|
Operating profit
margin
|
5.11 %
|
|
|
|
|
|
8.76 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes (a) the
removal of pass through revenues and costs for the People &
Places Solutions line of business for the calculation of operating
profit margin as a percentage of net revenue of $1.9 billion, (b)
the removal of amortization of intangible assets of $67.1 million,
(c) the reclassification of revenues under the TSA of $15.2 million
included in other income for U.S. GAAP reporting purposes to
SG&A, (d) the removal of$119.0 million in fair value
adjustments related to our investment in Worley stock (net of
Worley stock dividend) and certain foreign currency revaluations
relating to the ECR sale and (e) associated income tax expense
adjustments for the above pre-tax adjustment items.
|
Earnings Per
Share:
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
Unaudited
|
July 2,
2021
|
|
June 26,
2020
|
|
July 2,
2021
|
|
June 26,
2020
|
Numerator for
Basic and Diluted EPS:
|
|
|
|
|
|
|
|
Net earnings
attributable to Jacobs from continuing operations
|
$
|
165,410
|
|
|
$
|
226,886
|
|
|
$
|
422,195
|
|
|
$
|
284,344
|
|
Preferred Redeemable
Noncontrolling interests redemption value
adjustment
|
(57,307)
|
|
|
—
|
|
|
(57,307)
|
|
|
—
|
|
Net earnings from
continuing operations allocated to participating
securities
|
—
|
|
|
(24)
|
|
|
—
|
|
|
(77)
|
|
Net earnings from
continuing operations allocated to common
stock for EPS calculation
|
$
|
108,103
|
|
|
$
|
226,862
|
|
|
$
|
364,888
|
|
|
$
|
284,267
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Jacobs from discontinued operations
|
$
|
384
|
|
|
$
|
18,043
|
|
|
$
|
11,690
|
|
|
$
|
125,511
|
|
Net earnings from
discontinued operations allocated to participating
securities
|
—
|
|
|
(2)
|
|
|
—
|
|
|
(34)
|
|
Net earnings from
discontinued operations allocated to common
stock for EPS calculation
|
$
|
384
|
|
|
$
|
18,041
|
|
|
$
|
11,690
|
|
|
$
|
125,477
|
|
|
|
|
|
|
|
|
|
Net earnings
allocated to common stock for EPS calculation
|
$
|
108,487
|
|
|
$
|
244,903
|
|
|
$
|
376,578
|
|
|
$
|
409,744
|
|
|
|
|
|
|
|
|
|
Denominator for
Basic and Diluted EPS:
|
|
|
|
|
|
|
|
Weighted average
basic shares
|
130,385
|
|
|
130,229
|
|
|
130,205
|
|
|
131,995
|
|
Shares allocated to
participating securities
|
—
|
|
|
(14)
|
|
|
—
|
|
|
(36)
|
|
Shares used for
calculating basic EPS attributable to common stock
|
130,385
|
|
|
130,215
|
|
|
130,205
|
|
|
131,959
|
|
|
|
|
|
|
|
|
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
Stock compensation
plans
|
1,035
|
|
|
1,048
|
|
|
1,040
|
|
|
1,188
|
|
Shares used for
calculating diluted EPS attributable to common
stock
|
131,420
|
|
|
131,263
|
|
|
131,245
|
|
|
133,147
|
|
|
|
|
|
|
|
|
|
Net Earnings Per
Share:
|
|
|
|
|
|
|
|
Basic Net Earnings
from Continuing Operations Per Share
|
$
|
0.83
|
|
|
$
|
1.74
|
|
|
$
|
2.80
|
|
|
$
|
2.15
|
|
Basic Net Earnings
from Discontinued Operations Per Share
|
$
|
—
|
|
|
$
|
0.14
|
|
|
$
|
0.09
|
|
|
$
|
0.95
|
|
Basic Earnings Per
Share
|
$
|
0.83
|
|
|
$
|
1.88
|
|
|
$
|
2.89
|
|
|
$
|
3.11
|
|
Diluted Net Earnings
from Continuing Operations Per Share
|
$
|
0.82
|
|
|
$
|
1.73
|
|
|
$
|
2.78
|
|
|
$
|
2.13
|
|
Diluted Net Earnings
from Discontinued Operations Per Share
|
$
|
—
|
|
|
$
|
0.14
|
|
|
$
|
0.09
|
|
|
$
|
0.94
|
|
Diluted Earnings
Per Share
|
$
|
0.83
|
|
|
$
|
1.87
|
|
|
$
|
2.87
|
|
|
$
|
3.08
|
|
For additional information contact:
Investors:
Jonathan Doros, 214-583-8596
jonathan.doros@jacobs.com
Media:
Marietta Hannigan, 214-920-8035
marietta.hannigan@jacobs.com
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SOURCE Jacobs