Jacobs Engineering Group Inc. (NYSE:JEC) announced today its
financial results for the third quarter of fiscal 2014 ended
June 27, 2014.
Third Quarter Fiscal 2014 Highlights:
- Net earnings for the quarter of $64.8
million;
- Diluted EPS for the quarter of $0.49;
and
- Backlog at June 27, 2014 of $18.5
billion.
Jacobs reported today net earnings of $64.8 million, or $0.49
per diluted share, on revenues of $3.2 billion for its third
quarter of fiscal 2014 ended June 27, 2014. This compares to
net earnings of $108.9 million, or $0.83 per diluted share, on
revenues of $3.1 billion for the third quarter of fiscal 2013 ended
June 28, 2013.
Included in the company’s results for the quarter ended
June 27, 2014 is an aggregate after tax negative impact of
$47.0 million or $0.35 per diluted share related to restructuring
efforts.
Jacobs also announced total backlog of $18.5 billion at
June 27, 2014, including a technical professional services
component of $12.3 billion. This is up approximately 7.5% from
total backlog and up approximately 11.2% from technical
professional services backlog of $17.2 billion and $11.1 billion,
respectively, at June 28, 2013.
Commenting on the results for the third quarter, Jacobs
President and CEO Craig Martin stated, “Third quarter results
reflect good underlying performance by the business. In spite of
delays in investment decisions in a number of markets, we were able
to continue to build backlog. Our control of SG&A costs was
also good. Our customers' capital expenditure forecasts remain
robust and our prospect list is good. Our outlook for the fourth
quarter and for FY15 continues to be positive.”
Commenting on the Company’s earnings outlook for the remainder
of fiscal 2014, Jacobs Chief Financial Officer John W. Prosser, Jr.
stated, “We’re making good progress with the restructuring and
expect it to be complete by the end of FY14. Excluding the unusual
adjustments in the first half and the net impact of restructuring
in the second, we expect our EPS for the year to be slightly below
the midpoint of Q2 guidance which was $3.15 to $3.55 per
share.”
Jacobs is hosting a conference call at 11:00 a.m. Eastern Time
on Tuesday, July 29, 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 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
27, 2013, 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 27, 2014
June 28, 2013 June 27,
2014 June 28, 2013 Revenues $ 3,231,791
$ 3,080,995 $ 9,476,715 $
8,675,720 Costs and Expenses: Direct costs of contracts (2,670,052
) (2,613,991 ) (7,944,731 ) (7,308,092 ) Selling, general, and
administrative expenses (437,802 )
(298,645 ) (1,140,565 )
(873,797 ) Operating Profit 123,937 168,359 391,419
493,831 Other Income (Expense): Interest income 2,624 1,332 7,425
3,521 Interest expense (5,565 ) (2,786 ) (10,490 ) (9,515 ) Gain on
sale of intellectual property, net — — 12,147 — Miscellaneous
expense, net (2,950 )
1,518 (3,139 )
(1,195 ) Total other income (expense), net
(5,891 ) 64 5,943
(7,189 ) Earnings Before Taxes 118,046
168,423 397,362 486,642 Income Tax Expense
(46,737 ) (56,334 )
(136,304 ) (162,941 ) Net Earnings of the
Group 71,309
112,089 261,058
323,701
Net Earnings Attributable to
Noncontrolling Interests
(6,467 ) (3,218 )
(19,024 ) (11,419 ) Net Earnings
Attributable to Jacobs $ 64,842
$ 108,871 $ 242,034
$ 312,282 Earnings Per Share
(“EPS”): Basic $ 0.50 $ 0.84 $ 1.86 $ 2.42 Diluted
$ 0.49 $ 0.83
$ 1.83 $ 2.39
Weighted Average Shares Used to Calculate EPS: Basic 130,738
129,536
130,417 129,094 Diluted
132,611 131,295
132,460 130,590
Other Operational Information (in
thousands):
Three Months Ended
Nine Months Ended June 27, 2014
June 28, 2013 June 27,
2014 June 28, 2013 Revenues by Major
Component:
Technical professional services $ 1,893,095 $ 1,719,986 $
5,437,593 $ 5,026,034 Field services 1,338,696
1,361,009
4,039,122 3,649,686 Total
$ 3,231,791 $ 3,080,995
$ 9,476,715
$ 8,675,720 Depreciation (pre-tax)
$ 25,684 $ 17,737
$ 70,701 $ 49,828
Amortization of Intangibles (pre-tax) $ 13,641
$ 6,646 $
35,329 $ 22,327 Pass-Through
Costs Included in Revenues $ 700,294
$ 674,715 $
2,152,875 $ 1,794,748
Capital Expenditures $ (25,081 )
$ (27,035 ) $ (92,033 )
$ (91,520 )
Selected Balance Sheet and
Backlog Information (in
thousands):
June
27, 2014 June 28, 2013
Balance Sheet Information:
Cash and cash equivalents $ 772,613 $
1,295,517 Working capital 1,583,178 2,066,934 Total debt 830,767
444,976 Total Jacobs stockholders' equity
4,501,027
4,091,606 Backlog Information: Technical professional
services $ 12,324,244 $ 11,087,100 Field services
6,162,976
6,108,500 Total $ 18,487,220
$ 17,195,600
Non-U.S. GAAP Financial
Measures:
The following table reconciles certain elements of the Company's
results of operations excluding the 2014 Restructuring to its U.S.
GAAP results of operations. Although such information is non-GAAP
in nature, it is 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.
Without 2014
Restructuring
Effects of 2014
Restructuring
U.S. GAAP Consolidated pre-tax earnings (loss) $ 174,701 $ (56,654
) $ 118,047 Tax (expense) benefit (56,440 ) 9,702 (46,738 )
Net earnings of the Group 118,261 (46,952 ) 71,309 Non-controlling
interests (6,467 ) — (6,467 ) Net earnings of Jacobs $
111,794 $ (46,952 ) $ 64,842 Diluted earnings (loss)
per share $ 0.84 $ (0.35 ) $ 0.49
Jacobs Engineering Group Inc.John W. Prosser, Jr.Executive Vice
President, Finance and Administration626.578.6803
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