PASADENA, Calif., Nov. 15, 2010 /PRNewswire-FirstCall/ -- Jacobs
Engineering Group Inc. (NYSE: JEC) announced today its financial
results for the fiscal year and fourth quarter ended October 1, 2010.
Fiscal 2010 and Fourth Quarter Fiscal 2010 Highlights:
- Net earnings for fiscal 2010 of $246.0 million;
- Diluted EPS for fiscal 2010 of $1.96;
- Annual results include an after-tax litigation charge of
$60.3 million, or $0.48 per diluted share, and an after-tax
restructuring charge of $5.8 million,
or $0.04 per diluted share;
- Net earnings for the fourth quarter of fiscal 2010 of
$77.0 million;
- Diluted EPS for the fourth quarter of fiscal 2010 of
$0.61; and,
- Backlog of $13.2 billion.
Jacobs reported today net earnings of $246.0 million, or $1.96 per diluted share, on revenues of
$9.9 billion for its fiscal year
ended October 1, 2010. Excluding the effects of the
litigation and restructuring charge discussed below, net earnings
and earnings per diluted share were $312.1 million and $2.48, respectively. These results compare
to net earnings of $399.9 million, or $3.21 per diluted share, on revenues of
$11.5 billion for fiscal
2009.
For the fourth quarter of fiscal 2010, Jacobs reported net
earnings of $77.0 million, or
$0.61 per diluted share, on revenues
of $2.3 billion. This
compares to net earnings of $79.3 million, or $0.63 per diluted share, on revenues of
$2.6 billion for the fourth
quarter of fiscal 2009.
During the first quarter of fiscal 2010, the Company recorded an
$11.4 million pre-tax charge
relating to the Company ceasing use of one of its offices located
in Houston, Texas, and entering
into a sublease for the entire property. Net of the effects
on the Company's incentive bonus plan and income taxes, the
restructured lease resulted in a net, after-tax charge to earnings
of $5.8 million, or $0.04 per diluted share.
During the third quarter of fiscal 2010, the Company recorded a
$93.3 million pre-tax charge
because of an unfavorable court judgment it received relating to a
waste incineration project in France for the SIVOM de Mulhousienne
("SIVOM"). The SIVOM project was performed by a consortium of
contractors that was led by one of Jacobs' subsidiaries under a
contract that was entered into in 1996, prior to the acquisition of
that subsidiary by Jacobs. Net of the effects on the
Company's incentive bonus plan and income taxes, the judgment
resulted in a net, after-tax charge to earnings in fiscal 2010 of
$60.3 million, or $0.48 per diluted share. The Company has
filed an appeal of the judgment against it.
Jacobs also announced backlog totaling $13.2 billion at October 1, 2010, including a technical
professional services component of $7.6 billion. This compares to total
backlog and technical professional services backlog of $15.2 billion and $8.2 billion, respectively, at October 2, 2009. During the fourth quarter,
adjustments were made to a variety of extended term, task order,
indefinite quantity, and other contracts where it became apparent
that the full capacity of previously recorded backlog would not be
realized. These adjustments totaled approximately
$390 million, all of which related to technical professional
services.
Commenting on the results for the year, Jacobs President and CEO
Craig L. Martin stated, "This
quarter was a decent finish to a difficult year. Our team did
a good job of controlling costs and executing projects well.
In addition, our client survey scores are at record levels.
When you set aside our backlog adjustments, we are beginning
to see some growth in backlog, particularly in technical
professional services. We are looking forward to FY11 with
some optimism."
Commenting on the Company's earnings outlook for fiscal 2011,
Jacobs Chief Financial Officer John W.
Prosser, Jr. stated, "Based on our current view of our
markets, we are initiating guidance for fiscal 2011 earnings per
share within a range of $2.30 to
$2.80."
Jacobs is hosting a conference call at 11:00 a.m. Eastern Time on Tuesday, November 16, 2010, which they are
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.
We caution the reader that there are a variety of factors
that could cause business conditions and results to differ
materially from what is contained in our forward-looking
statements. For a description of some of the factors which
may occur that could cause actual results to differ from our
forward-looking statements please refer to our 2009 Form 10-K, 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. 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
|
Year
Ended
|
|
|
October
1,
2010
|
October
2,
2009
|
October
1,
2010
|
October
2,
2009
|
|
Revenues
|
$ 2,343,033
|
$ 2,552,547
|
$ 9,915,517
|
$ 11,467,376
|
|
Costs and
Expenses:
|
|
|
|
|
|
Direct costs
of contracts
|
(1,995,006)
|
(2,204,570)
|
(8,582,912)
|
(9,906,493)
|
|
Selling, general,
and
administrative
expenses
|
(228,512)
|
(225,834)
|
(932,522)
|
(940,310)
|
|
|
|
|
|
|
|
Operating
Profit
|
119,515
|
122,143
|
400,083
|
620,573
|
|
|
|
|
|
|
|
Other Income
(Expense):
|
|
|
|
|
|
Interest
income
|
1,183
|
3,489
|
4,791
|
13,145
|
|
Interest
expense
|
(383)
|
(488)
|
(9,874)
|
(2,916)
|
|
Miscellaneous,
net
|
72
|
(1,288)
|
(3,066)
|
(6,670)
|
|
Total other
income
(expense),
net
|
872
|
1,713
|
(8,149)
|
3,559
|
|
|
|
|
|
|
|
Earnings Before
Taxes
|
120,387
|
123,856
|
391,934
|
624,132
|
|
|
|
|
|
|
|
Income Tax
Expense
|
(43,308)
|
(44,616)
|
(145,647)
|
(224,919)
|
|
|
|
|
|
|
|
Net Earnings of the
Group
|
77,079
|
79,240
|
246,287
|
399,213
|
|
Net (Income) Loss Attributable
to
Noncontrolling
Interests
|
(85)
|
77
|
(313)
|
641
|
|
Net Earnings Attributable
to Jacobs
|
$ 76,994
|
$ 79,317
|
$ 245,974
|
$ 399,854
|
|
|
|
|
|
|
|
Earnings Per Share
("EPS"):
|
|
|
|
|
|
Basic
|
$ 0.62
|
$ 0.64
|
$ 1.98
|
$ 3.26
|
|
Diluted
|
$ 0.61
|
$ 0.63
|
$ 1.96
|
$ 3.21
|
|
|
|
|
|
|
|
Weighted Average Shares
Used to Calculate EPS:
|
|
|
|
|
|
Basic
|
124,669
|
123,309
|
124,134
|
122,772
|
|
Diluted
|
126,067
|
125,116
|
125,790
|
124,534
|
|
|
|
|
|
|
The financial statement
presentation above for fiscal 2009 has been modified to reflect net
earnings (loss) attributable to the Company and the noncontrolling
interests in its consolidated subsidiaries as required by FASB
Accounting Standards Codification 810-10-45-19 through 20 which
became effective for the Company October 3, 2009.
|
|
|
Other
Operational Information (in
thousands):
|
|
|
Three Months
Ended
|
Year
Ended
|
|
|
October
1,
2010
|
October
2,
2009
|
October
1,
2010
|
October
2,
2009
|
|
Revenues by Major
Component:
|
|
|
|
|
|
Technical
professional services
|
$
1,268,403
|
$
1,272,052
|
$
5,113,303
|
$
5,538,489
|
|
Field
services
|
1,074,630
|
1,280,495
|
4,802,214
|
5,928,887
|
|
Total
|
$
2,343,033
|
$
2,552,547
|
$
9,915,517
|
$
11,467,376
|
|
|
|
|
|
|
|
Depreciation
(pre-tax)
|
$ 16,245
|
$ 18,589
|
$ 64,447
|
$ 68,670
|
|
Amortization of
Intangibles (pre-tax)
|
6,536
|
11,110
|
24,048
|
17,672
|
|
Pass-Through Costs included in
Revenues
|
568,748
|
774,004
|
2,723,295
|
4,016,999
|
|
|
|
|
|
|
|
Capital
Expenditures
|
$ 7,846
|
$ 8,750
|
$ 49,075
|
$ 55,528
|
|
|
|
|
|
|
|
|
Selected Balance Sheet and
Backlog Information (in thousands):
|
|
|
October
1,
2010
|
October
2,
2009
|
|
Balance Sheet
Information:
|
|
|
|
Cash and
cash equivalents
|
$ 938,842
|
$ 1,033,619
|
|
Working
capital
|
1,527,589
|
1,522,548
|
|
Total
debt
|
79,908
|
18,232
|
|
Stockholders' equity
|
2,864,928
|
2,631,475
|
|
|
|
|
|
Backlog
Information:
|
|
|
|
Technical
professional services
|
$ 7,588,900
|
$ 8,209,300
|
|
Field
services
|
5,613,100
|
7,010,100
|
|
Total
|
$ 13,202,000
|
$ 15,219,400
|
|
|
|
|
Stockholders' equity at October
2, 2009 has been adjusted to reflect the inclusion of
noncontrolling interests in equity as required by FASB Accounting
Standards Codification 810-10-45-16 which became effective for the
Company October 3, 2009.
|
|
|
We discuss and analyze the Company's results of operations for
fiscal 2010 before the effects of the Houston Sublease and the
SIVOM Judgment. Although such information is non-U.S. GAAP in
nature, it is presented because Management believes it provides a
better view of the Company's operating results.
The following table presents (i) the Company's consolidated
results of operations for fiscal 2010 before the effects of the
Houston Sublease and the SIVOM Judgment (which is non-U.S. GAAP);
(ii) the effects of the Houston Sublease and the SIVOM Litigation;
and (iii) the Company's consolidated results of operations for
fiscal 2010 in accordance with U.S. GAAP (in thousands, except
earnings per share):
|
|
|
Fiscal 2010
Consolidated
Results of
Operations
Before
the Effects of
the Houston
Sublease and
the SIVOM
Judgment
|
Effects of
the Houston
Sublease and
the SIVOM
Judgment
|
Fiscal 2010
Consolidated
Results of
Operations
(U.S.
GAAP)
|
|
Revenues
|
$
9,941,411
|
$
(25,894)
|
$
9,915,517
|
|
Costs and Expenses:
|
|
|
|
|
Direct costs of
contracts
|
(8,524,271)
|
(58,641)
|
(8,582,912)
|
|
Selling, general and
administrative expenses
|
(929,785)
|
(2,737)
|
(932,522)
|
|
Operating Profit
|
487,355
|
(87,272)
|
400,083
|
|
Other Income
(Expense):
|
|
|
|
|
Interest income
|
3,647
|
1,144
|
4,791
|
|
Interest
expense
|
(5)
|
(9,869)
|
(9,874)
|
|
Miscellaneous expense,
net
|
(3,066)
|
—
|
(3,066)
|
|
Total other
income (expense), net
|
576
|
(8,725)
|
(8,149)
|
|
Earnings (Loss) Before
Taxes
|
487,931
|
(95,997)
|
391,934
|
|
Income Tax (Expense)
Benefit
|
(175,543)
|
29,896
|
(145,647)
|
|
Net Earnings (Loss) of the
Group
|
312,388
|
(66,101)
|
246,287
|
|
Net (Income) Attributable to
Noncontrolling Interests
|
(313)
|
—
|
(313)
|
|
Net Earnings (Loss) Attributable
to Jacobs
|
$
312,075
|
$
(66,101)
|
$
245,974
|
|
Net Earnings (Loss) per Share —
Diluted
|
$
2.48
|
$
(0.52)
|
$
1.96
|
|
|
|
|
|
The $25.9 million
adjustment to revenues was reflected as a reduction in Field
Services revenues. "GAAP" means those accounting principles
generally accepted in the United States.
|
|
|
For additional information
contact:
|
|
|
John W. Prosser, Jr.
|
|
|
Executive Vice President,
Finance and Administration
|
|
|
626.578.6803
|
|
|
|
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SOURCE Jacobs Engineering Group Inc.