Jacobs Engineering Group Inc. (NYSE:JEC) today announced its
financial results for the first quarter of fiscal 2016 ended
January 1, 2016.
First Quarter Fiscal 2016 Highlights:
- U.S. GAAP net earnings and EPS of $47
million and $0.38, respectively;
- Adjusted net earnings of $95
million;
- Adjusted EPS of $0.78;
- Backlog at January 1, 2016 of
$18.2 billion;
- 2015 Restructuring (focused on cost
effectiveness) - delivering strong results - now targeting annual
savings of $180-200 million;
- 1.0 million shares of common stock
repurchased during the first quarter of fiscal 2016 for $42
million;
Jacobs reported today adjusted net earnings of $95 million, or
$0.78 per diluted share, on revenues of $2.8 billion for its
first quarter of fiscal 2016 ended January 1, 2016 (U.S. GAAP
net earnings and EPS were $47 million and $0.38, respectively).
This compares to net earnings of $100 million, or $0.77 per diluted
share, on revenues of $3.2 billion for the first quarter of fiscal
2015 ended December 26, 2014. Included in the Company's first
quarter adjusted net earnings is a $11 million, or $0.09 per share,
tax benefit related to an international tax matter.
The Company's adjusted net earnings for the first quarter of
fiscal 2016 exclude the after-tax costs related to certain
restructuring activities that began during fiscal 2015 (the "2015
Restructuring") totaling $48 million, or $0.40 per diluted
share.
Jacobs also announced total backlog of $18.2 billion at
January 1, 2016, including a technical professional services
component of $11.4 billion.
Commenting on the results for the first quarter of fiscal 2016,
Jacobs President and CEO Steve Demetriou stated, “Despite strong
headwinds in certain sectors and a challenging macro-economic
environment, we delivered results aligned with our expectations.
This performance was due to our diverse portfolio of customers,
geographic footprint and improvements in project delivery
execution. Our performance was also supported by our efforts to
realign our business and streamline operations, which continues to
benefit the Company and right-sizes it in light of current economic
conditions."
Commenting on the Company’s reorganization and its earnings
outlook, Jacobs Chief Financial Officer Kevin Berryman stated, “The
Company remains on track to implement revised segment reporting for
our Q2 results, given that the company has begun managing its
operations during Q2 along the previously announced four lines of
business: Petroleum & Chemicals, Building & Infrastructure,
Aerospace & Technology, and Industrial. Regarding our outlook,
although the Company met expectations in the quarter, continuing
challenges in certain end-markets require us to remain cautious as
to our near-term outlook. Considering the benefits we're realizing
from our recent restructuring activities, we are confirming our
fiscal 2016 adjusted EPS range of $2.80 to $3.30, including the
discrete international tax item."
Jacobs is hosting a conference call at 11:00 a.m. Eastern Time
on Wednesday, February 3, 2016, 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 October 2,
2015, 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
January 1,2016
December 26,2014
Revenues $ 2,847,934 $ 3,187,005 Costs and Expenses:
Direct costs of contracts (2,407,460 ) (2,667,559 ) Selling,
general, and administrative expenses (381,024 )
(361,223 ) Operating Profit 59,450 158,223 Other
Income (Expense): Interest income 2,220 2,276 Interest expense
(3,543 ) (5,318 ) Miscellaneous income (expense), net
(340 ) (486 ) Total other income (expense), net
(1,663 ) (3,528 ) Earnings Before Taxes
57,787 154,695 Income Tax Benefit (Expense) (7,481 )
(48,500 ) Net Earnings of the Group
50,306 106,195
Net Earnings Attributable to
Noncontrolling Interests
(3,792 ) (6,116 ) Net Earnings
Attributable to Jacobs $ 46,514
$ 100,079 Earnings Per Share (“EPS”): Basic $ 0.38 $ 0.78
Diluted $ 0.38 $ 0.77
Weighted Average Shares Used to Calculate EPS: Basic 120,888
128,652 Diluted 121,959
129,973
Other Operational Information (in
thousands):
Three Months Ended
January 1,2016
December 26,2014
Revenues by Major Component: Technical professional
services $ 1,646,590 $ 1,932,524 Field services
1,201,344 1,254,481 Total
$ 2,847,934 $ 3,187,005
Depreciation (pre-tax) $ 22,167
$ 26,006 Amortization of Intangibles (pre-tax)
$ 11,726 $ 12,981 Pass-Through Costs
Included in Revenues $ 670,331 $
706,830 Capital Expenditures $ (15,987 )
$ (33,775 )
Balance Sheet (in
thousands):
January 1,2016
October 2,2015
(Unaudited)
ASSETS Current Assets: Cash and cash equivalents
$ 443,725 $ 460,859 Receivables 2,424,447 2,548,743 Deferred income
taxes 139,720 160,298 Prepaid expenses and other 104,404
113,076 Total current assets 3,112,296 3,282,976
Property, Equipment and Improvements, Net 361,006
381,238 Other Noncurrent Assets: Goodwill 3,059,279
3,048,778 Intangibles 345,770 353,419 Miscellaneous 737,500
719,515 Total other non-current assets 4,142,549
4,121,712 $ 7,615,851 $ 7,785,926
LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities:
Notes payable $ 2,833 $ 13,364 Accounts payable 421,206 566,866
Accrued liabilities 1,033,906 1,090,985 Billings in excess of costs
327,031 309,951 Total current liabilities 1,784,976
1,981,166 Long-term Debt 621,899 584,434
Other Deferred Liabilities 838,717 863,868
Commitments and Contingencies Stockholders’ Equity: Capital stock:
Preferred stock, $1 par value, authorized - 1,000,000 shares;
issued and outstanding - none — — Common stock, $1 par value,
authorized - 240,000,000 shares; issued and outstanding—122,776,878
shares and 123,152,966 shares, respectively 122,777 123,153
Additional paid-in capital 1,142,010 1,137,144 Retained earnings
3,511,197 3,496,212 Accumulated other comprehensive loss (470,476 )
(464,764 ) Total Jacobs stockholders’ equity 4,305,508 4,291,745
Noncontrolling interests 64,751 64,713 Total Group
stockholders’ equity 4,370,259 4,356,458 $ 7,615,851
$ 7,785,926
Backlog (in thousands):
January 1,2016
December 26,2014
Backlog Information: Technical
professional services $ 11,421,400 $ 13,222,400 Field services
6,801,000 5,885,000 Total
$ 18,222,400 $ 19,107,400
Non-U.S. GAAP Financial
Measures:
The following tables reconcile the U.S. GAAP values of certain
elements of the Company's results of operations to the
corresponding "adjusted" amounts. For fiscal 2016, such adjustments consist of amounts incurred
in connection with the 2015 Restructuring. For the first quarter of fiscal 2015, there were no such adjustments. Although
such adjusted amounts are non-GAAP in nature, they are 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. Amounts are shown in thousands,
except for per-share data:
U.S. GAAP Reconciliation for the first
quarter fiscal 2016:
U.S. GAAP
Effects of 2015Restructuring
Without 2015Restructuring
Consolidated pre-tax earnings $ 57,787 $ (68,383 ) $ 126,170 Tax
expense (7,481 ) 20,247 (27,728 ) Net earnings of the Group
50,306 (48,136 ) 98,442 Non-controlling interests (3,792 ) —
(3,792 ) Net earnings of Jacobs $ 46,514 $ (48,136 ) $
94,650 Diluted earnings per share $ 0.38 $ (0.40 ) $
0.78
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version on businesswire.com: http://www.businesswire.com/news/home/20160203005556/en/
Jacobs Engineering Group Inc.Kevin C. Berryman,
626-578-3505Executive Vice President and Chief Financial
Officer
Jacobs Engineering (NYSE:JEC)
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