Jacobs Engineering Group Inc. (NYSE:JEC) announced today its
financial results for the second quarter of fiscal 2015 ended
March 27, 2015.
Second Quarter Fiscal 2015 Highlights:
- Net earnings of $82.0 million, and
adjusted net earnings of $91.6 million (adjusted to exclude the
impact of the restructuring activities discussed below);
- Diluted EPS of $0.64, adjusted diluted
EPS of $0.72;
- Backlog at March 27, 2015 of $18.9
billion; and,
- Repurchase of 3.3 million shares of
common stock for $140.5 million.
Jacobs reported today GAAP net earnings of $82.0 million, or
$0.64 per diluted share, on revenues of $2.9 billion for its
second quarter of fiscal 2015 ended March 27, 2015. This
compares to net earnings of $83.5 million, or $0.63 per diluted
share, on revenues of $3.2 billion for the second quarter of fiscal
2014 ended March 28, 2014.
Included in the company's results of operations for the second
quarter of fiscal 2015 are the after tax costs and expenses related
to certain restructuring activities totaling $9.6 million, or
$0.08 per diluted share.
Jacobs also announced continued strength in total backlog of
$18.9 billion at March 27, 2015, including a technical
professional services component of $12.6 billion. This is up
approximately 2.5% from total backlog and up approximately 0.4%
from technical professional services backlog of $18.4 billion and
$12.6 billion, respectively, at March 28, 2014.
Commenting on the results for the second quarter, Jacobs
Executive Chairman Noel Watson stated, “Strong sales in our second
quarter are reflected in our backlog, which remains at near record
levels. Our diversification remains a clear benefit: many of our
end-markets continue to be robust, offsetting the current headwinds
caused by energy and commodity prices. We continue to be cautious
in our short-term outlook and remain confident in the long-term
growth potential of our global business.”
Mr. Watson added, “Our strong executive leadership team is fully
committed to delivering value to our customers and our
shareholders.”
Commenting on the Company’s earnings outlook for the remainder
of fiscal 2015, Jacobs Chief Financial Officer Kevin Berryman
stated, “Continued headwinds in certain end-markets cause us to
remain cautious in our outlook. Our updated guidance for adjusted
EPS is now a range of $2.90 to $3.20 for fiscal year 2015. Included
in our outlook is our restructuring effort which is critical to
drive continued improvements in our cost effectiveness, so that we
are able to deliver strong profitable growth as our backlog
converts to future revenue growth.”
Jacobs is hosting a conference call at 11:00 a.m. Eastern Time
on Tuesday, April 28, 2015, 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
26, 2014, 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 Six Months Ended
March 27, 2015
March 28, 2014 March 27, 2015
March 28, 2014 Revenues $ 2,903,332 $
3,176,033 $ 6,090,337 $
6,244,924 Costs and Expenses: Direct costs of contracts (2,412,388
) (2,659,480 ) (5,079,947 ) (5,274,678 ) Selling, general, and
administrative expenses (357,899 )
(394,119 ) (719,122 )
(702,764 ) Operating Profit 133,045 122,434 291,268
267,482 Other Income (Expense): Interest income 1,580 3,004 3,856
4,801 Interest expense (4,548 ) (5,116 ) (9,866 ) (4,925 ) Gain on
sale of intellectual property, net — 12,147 — 12,147 Miscellaneous
expense, net (1,115 ) (75
) (1,601 ) (190 ) Total
other income (expense), net (4,083 )
9,960 (7,611 )
11,833 Earnings Before Taxes 128,962 132,394
283,657 279,315 Income Tax Expense (40,852 )
(41,594 ) (89,352 )
(89,565 ) Net Earnings of the Group
88,110 90,800
194,305 189,750
Net Earnings Attributable to
Noncontrolling Interests
(6,143 ) (7,340 )
(12,259 ) (12,558 ) Net Earnings
Attributable to Jacobs $ 81,967
$ 83,460 $ 182,046
$ 177,192 Earnings Per Share (“EPS”):
Basic $ 0.65 $ 0.64 $ 1.43 $ 1.36 Diluted $
0.64 $ 0.63
$ 1.42 $ 1.34 Weighted
Average Shares Used to Calculate EPS: Basic 125,992
130,384 127,283
130,254 Diluted
127,166 132,579
128,530 132,382
Other Operational Information (in
thousands):
Three
Months Ended Six Months Ended
March 27, 2015
March 28, 2014 March 27, 2015
March 28, 2014 Revenues by Major Component:
Technical
professional services $ 1,862,068 $ 1,871,087 $ 3,794,592 $
3,544,498 Field services 1,041,264
1,304,946
2,295,745 2,700,426 Total
$ 2,903,332 $ 3,176,033
$ 6,090,337
$ 6,244,924 Depreciation (pre-tax)
$ 25,149 $ 25,368
$ 51,155 $ 45,017
Amortization of Intangibles (pre-tax) $ 12,554
$ 13,051 $
25,535 $ 21,688 Pass-Through
Costs Included in Revenues $ 615,336
$ 700,558 $
1,322,166 $ 1,452,581
Capital Expenditures $ (25,402 )
$ (29,004 ) $ (59,177 )
$ (66,952 )
Selected Balance Sheet and
Backlog Information (in
thousands):
March 27, 2015
March 28, 2014 Balance Sheet Information:
Cash and cash
equivalents $ 464,950 $ 691,256 Working capital 1,411,412 1,665,970
Total debt 755,426 996,337 Total Jacobs stockholders' equity
$ 4,368,638
$ 4,419,479 Backlog Information: Technical
professional services $ 12,601,211 $ 12,554,921 Field services
6,265,784
5,857,692 Total $
18,866,995
$ 18,412,613
Non-U.S. GAAP Financial
Measures:
The first table below reconciles certain elements of the
Company's results of operations excluding the 2015 Restructuring,
to its U.S. GAAP results of operations, for the second quarter of
fiscal 2015. The second table below reconciles certain elements of
the Company's results of operations excluding certain project
issues in Europe, unusual impacts of holidays and weather events,
SKM related items, and the gain associated with the sale of VCM
technology assets for the second quarter of fiscal 2014. 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.
U.S. GAAP
Effects of 2015
Restructuring
Without 2015
Restructuring
Consolidated pre-tax earnings (loss) $ 128,962 $ (14,038 ) $
143,000 Tax (expense) benefit (40,852 ) 4,422 (45,274 ) Net
earnings of the Group 88,110 (9,616 ) 97,726
Noncontrolling interests
(6,143 ) — (6,143 ) Net earnings of Jacobs $ 81,967 $
(9,616 ) $ 91,583 Diluted earnings (loss) per share $ 0.64
$ (0.08 ) $ 0.72 U.S. GAAP
Effects of 2014
Events
Without 2014
Events
Consolidated pre-tax earnings (loss) $ 132,394 $ (38,573 ) $
170,967 Tax (expense) benefit (41,594 ) 12,699 (54,293 ) Net
earnings of the Group 90,800 (25,874 ) 116,674
Noncontrolling interests
(7,340 ) — (7,340 ) Net earnings of Jacobs 83,460
(25,874 ) 109,334 Diluted earnings (loss) per share $ 0.63
$ (0.19 ) $ 0.82
Jacobs Engineering Group Inc.Kevin C. BerrymanExecutive Vice
President and Chief Financial Officer626-578-3505
Jacobs Engineering (NYSE:JEC)
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