Jacobs Engineering Group Inc. (NYSE:JEC) announced today its
financial results for fiscal year and the fourth quarter ended
September 26, 2014.
Fiscal 2014 and Fourth Quarter Fiscal 2014 Highlights:
- Net earnings for fiscal 2014 of $328.1
million, including $77.4 million impact of restructuring;
- Diluted EPS for fiscal 2014 of $2.48,
including $0.58 per share impact of restructuring;
- Net earnings for the fourth quarter of
2014 of $86.1 million, including $30.4 million impact of
restructuring;
- Diluted EPS for the fourth quarter of
2014 of $0.65, including $0.23 per share impact of
restructuring;
- Repurchases of 1.5 million shares of
its common stock during the fourth quarter of 2014 at a total cost
of $78.4 million; and
- Backlog at September 26, 2014 of
$18.4 billion.
Jacobs reported today net earnings of $328.1 million, or $2.48
per diluted share, on revenues of $12.7 billion for its fiscal
year ended September 26, 2014. This compares to net earnings
of $423.1 million, or $3.23 per diluted share, on revenues of $11.8
billion for fiscal 2013. Included in the Company’s results for the
fiscal year ended September 26, 2014 is an aggregate after-tax
negative impact of $77.4 million, or $0.58 per diluted share,
related to restructuring efforts. Also included in the results for
the fiscal year ended September 26, 2014 is an aggregate
after-tax negative impact of $31.8 million, or $0.24 per diluted
share, related to certain losses and events that occurred and were
reported in the first half of 2014.
For the fourth quarter of fiscal 2014, Jacobs reported net
earnings of $86.1 million, or $0.65 per diluted share, on revenues
of $3.2 billion. This decreased from net earnings of $110.8
million, or $0.84 per diluted share, on revenues of $3.1 billion
for the same period in fiscal 2013. Included in the Company’s
results for the quarter ended September 26, 2014 is an
aggregate after-tax negative impact of $30.4 million, or $0.23 per
diluted share, related to restructuring efforts. Consolidated tax
expense for the fourth quarter of fiscal 2014 was negatively
impacted by the effects of changing tax rates relating to certain
of the Company's international pension plans. This impact was
substantially offset by the positive effects relating to the
reassessment of certain international tax exposures and the
resulting reversal of approximately $4.0 million of accrued
interest expense.
Jacobs also announced total backlog of $18.4 billion at
September 26, 2014, including a technical professional
services component of $12.6 billion. This is up approximately 6.7%
from total backlog and up approximately 13.4% from technical
professional services backlog of $17.2 billion and $11.1 billion,
respectively, at September 27, 2013.
Commenting on the results for the year, Jacobs President and CEO
Craig Martin stated, “While FY14 presented a number of challenges,
new projects are contributing to our outlook for fiscal year 2015.
We completed an in-depth review of our costs and have further
strengthened our cost position. We streamlined offices and
repositioned personnel to win new business in our targeted markets.
We continue to expect to deliver profitable growth over the long
term that is in line with our longstanding 15 percent growth
goal.”
Adding to the discussion on the Company's earnings outlook for
fiscal 2015, Jacobs Chief Financial Officer John W. Prosser, Jr.
stated, “Initial guidance for fiscal 2015 diluted earnings per
share is a range of $3.35 to $3.85. As is historically typical, we
expect first quarter earnings per share to be down sequentially
from our last quarter.”
Jacobs is hosting a conference call at 11:00 a.m. Eastern Time
on Tuesday, November 18, 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
Year Ended
September 26,
2014
September 27,
2013
September 26,
2014
September 27,
2013
Revenues $ 3,218,442 $ 3,142,656
$ 12,695,157 $ 11,818,376 Costs and
Expenses: Direct costs of contracts (2,676,642 ) (2,667,965 )
(10,621,373 ) (9,976,057 ) Selling, general, and administrative
expenses (405,150 )
(299,543 ) (1,545,716 )
(1,173,340 ) Operating Profit 136,650 175,148 528,068 668,979 Other
Income (Expense): Interest income 2,268 1,874 9,693 5,395 Interest
expense (947 ) (3,391 ) (11,437 ) (12,906 ) Gain on sale of
intellectual property, net — — 12,147 — Miscellaneous income, net
6,834 1,275
3,695 80
Total other income (expense), net 8,155
(242 ) 14,098
(7,431 ) Earnings Before Taxes 144,805 174,906
542,166 661,548 Income Tax Expense (53,751 )
(58,425 ) (190,054 )
(221,366 ) Net Earnings of the Group
91,054 116,481
352,112 440,182
Net Earnings Attributable to
Noncontrolling Interests
(4,980 ) (5,670 )
(24,004 ) (17,089 ) Net Earnings
Attributable to Jacobs $ 86,074
$ 110,811 $ 328,108
$ 423,093 Earnings Per Share
(“EPS”): Basic $ 0.66 $ 0.85 $ 2.51 $ 3.27 Diluted
$ 0.65 $ 0.84
$ 2.48 $ 3.23
Weighted Average Shares Used to Calculate EPS: Basic 130,795
129,896
130,483 129,288 Diluted
132,217 132,013
132,371 130,945
Other Operational Information (in
thousands):
Three Months Ended
Year Ended
September 26,
2014
September 27,
2013
September 26,
2014
September 27,
2013
Revenues by Major Component:
Technical professional services $
1,897,368 $ 1,657,577 $ 7,334,961 $ 6,683,611 Field services
1,321,074 1,485,079
5,360,196
5,134,765 Total $ 3,218,442
$ 3,142,656 $
12,695,157 $ 11,818,376
Depreciation (pre-tax) $ 27,891
$ 20,061 $ 98,592
$ 69,889 Amortization of Intangibles
(pre-tax) $ 11,491
$ 6,658 $ 46,820
$ 28,985 Pass-Through Costs Included in Revenues
$ 801,983 $
830,090 $ 2,954,858
$ 2,624,838 Capital Expenditures
$ (40,113 ) $ (35,750 )
$ (132,146 ) $ (127,270 )
Selected Balance Sheet and
Backlog Information (in
thousands):
September 26,
2014
September 27,
2013
Balance Sheet Information:
Cash and cash equivalents $
732,647 $ 1,256,405 Working capital 1,542,225 2,151,939 Total debt
800,807 437,869 Total Jacobs stockholders' equity
4,469,255
4,213,097 Backlog Information: Technical professional
services $ 12,607,029 $ 11,118,400 Field services
5,773,005
6,099,500 Total $ 18,380,034
$ 17,217,900
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.
Three Months Ended Year
Ended September 26, 2014 September 26, 2014
Without 2014
Restructuring
Effects of
2014
Restructuring
U.S. GAAP
Without 2014
Restructuring
Effects of
2014
Restructuring
U.S. GAAP Consolidated pre-tax earnings (loss)
$ 181,481 $ (36,676 ) $ 144,805 $ 635,496 $ (93,330 ) $ 542,166 Tax
(expense) benefit (59,998 ) 6,247 (53,751 ) (206,003 )
15,949 (190,054 ) Net earnings of the Group 121,483 (30,429
) 91,054 429,493 (77,381 ) 352,112 Non-controlling interests (4,980
) — (4,980 ) (24,004 ) — (24,004 ) Net earnings of
Jacobs $ 116,503 $ (30,429 ) $ 86,074 $ 405,489
$ (77,381 ) $ 328,108 Diluted earnings (loss) per
share $ 0.88 $ (0.23 ) $ 0.65 $ 3.06 $ (0.58 )
$ 2.48
Jacobs Engineering Group Inc.John W. Prosser, Jr.Executive Vice
President, Finance and Administration626.578.6803
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