Jacobs Engineering Group Inc. (NYSE:JEC) announced today its
financial results for the first quarter of fiscal 2014 ended
December 27, 2013.
First Quarter Fiscal 2014 Highlights:
- Net earnings for the quarter of $93.7
million;
- Diluted EPS for the quarter of $0.71;
and,
- Backlog at December 27, 2013 of
$18.1 billion.
Jacobs reported today net earnings of $93.7 million, or $0.71
per diluted share, on revenues of $3.1 billion for its first
quarter of fiscal 2014 ended December 27, 2013. This compares
to net earnings of $99.0 million, or $0.76 per diluted share, on
revenues of $2.8 billion for the first quarter of fiscal 2013 ended
December 28, 2012.
As previously reported, on December 13, 2013 the Company
acquired Sinclair Knight Merz (SKM) for approximately $1.2 billion
in cash. The purchase price reflects an enterprise value of $1.1
billion plus adjustments for cash, debt and other items. The
Company's net earnings for the first quarter of fiscal 2014 include
revenues of $25.7 million and a net, after-tax loss of $12.8
million, or $0.10 per diluted share, associated with two weeks of
SKM operations and transaction-related expenses incurred during the
period. SKM's operating loss was expected due to a significant
holiday and vacation period. The Company expects the acquisition to
be accretive in future periods. In addition, Jacobs successfully
resolved a tax matter involving one of its international
subsidiaries, which resulted in an increase to net earnings of $6.8
million, or $0.05 per diluted share.
Jacobs also announced that total backlog grew by 11.5% totaling
$18.1 billion at December 27, 2013, including a technical
professional services component of $12.3 billion. This is up from
the total backlog and technical professional services backlog of
$16.2 billion and $10.4 billion, respectively, at December 28,
2012. The technical professional services component includes $0.8
billion from SKM.
Commenting on the results for the first quarter, Jacobs
President and CEO Craig L. Martin stated, “First quarter
performance was largely as we expected. Looking forward, we see
improving opportunities in our public sector markets, and our
private sector markets remain strong. We are very pleased to have
successfully closed the acquisition of SKM, the largest in the
history of the Company. We expect the acquisition to make
significant contributions to the business in the future. Our
outlook continues to be good.”
Commenting on the Company's earnings outlook for the remainder
of fiscal 2014, Jacobs Chief Financial Officer John W. Prosser, Jr.
stated, “With our first quarter results in line with our
expectations, we are continuing our guidance for fiscal year 2014
earnings per share to be in a range of $3.35 to $3.90.”
Jacobs is hosting a conference call at 11:00 a.m. Eastern Time
on Thursday, January 23, 2014, 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. 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
including those noted in our 2013 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
December 27,
2013
December 28,
2012
Revenues $ 3,068,891
$ 2,759,641 Costs and Expenses: Direct costs of contracts
(2,615,200 ) (2,323,918 ) Selling, general, and administrative
expenses
(308,644
) (275,454 )
Operating Profit 145,047 160,269 Other Income (Expense): Interest
income 1,796 1,090 Interest expense 191 (3,694 ) Miscellaneous
expense, net (113 )
(1,354 ) Total other income (expense),
net 1,874
(3,958 ) Earnings Before Taxes 146,921 156,311
Income Tax Expense (47,972 )
(51,788 ) Net Earnings of the
Group 98,949
104,523
Net Earnings Attributable to
Noncontrolling Interests
(5,217 )
(5,513 ) Net Earnings Attributable to Jacobs
$ 93,732
$ 99,010 Earnings Per Share (“EPS”): Basic $
0.72 $ 0.77 Diluted $ 0.71
$ 0.76
Weighted Average Shares Used to Calculate EPS: Basic 130,121
128,644 Diluted 132,180
129,669
Other Operational Information (in
thousands):
Three Months Ended
December 27,
2013
December 28,
2012
Revenues by Major Component:
Technical professional services $ 1,673,412 $
1,611,919 Field services 1,395,479
1,147,722
Total $ 3,068,891
$ 2,759,641 Depreciation
(pre-tax) 19,649
15,493 Amortization of
Intangibles (pre-tax) $ 8,637
$ 8,982
Pass-Through Costs Included in Revenues $
752,023 $
546,416 Capital Expenditures $
(37,948 ) $
(25,174 )
Selected Balance Sheet and
Backlog Information (in
thousands):
December 27,
2013
December 28,
2012
Balance Sheet Information:
Cash and cash equivalents $
1,011,236 $ 1,256,405 Working capital 1,782,125 2,151,939 Total
debt 1,094,555 437,869 Total Jacobs stockholders' equity
4,322,993
4,213,097 Backlog Information: Technical
professional services $ 12,279,700 $ 10,407,300 Field services
5,774,500
5,782,300 Total $
18,054,200
$ 16,189,600
Jacobs Engineering Group Inc.John W. Prosser, Jr.Executive Vice
President, Finance and Administration626.578.6803
Jacobs Engineering (NYSE:JEC)
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