Jacobs Engineering Group Inc. (NYSE:JEC) today announced its
financial results for the second quarter of fiscal 2016 ended April
1, 2016.
Second Quarter Fiscal 2016 Highlights:
- U.S. GAAP net earnings and EPS of $65M
and $0.54, respectively;
- Adjusted net earnings and EPS of $91M
and $0.75, respectively;
- Backlog at April 1, 2016 of $18.2B,
steady at Q1 of fiscal 2016 level;
- Restructuring – cost reduction
initiative delivering strong results – now targeting annual savings
of $240M-$270M;
- Cash flow from operations of $238M; an
increase of $272M over the prior year;
- Repurchased 800 thousand shares of
common stock during the second quarter of fiscal 2016 for
$30M.
Jacobs reported today adjusted net earnings of $91 million, or
$0.75 per diluted share, on revenues of $2.8 billion for its
second quarter of fiscal 2016 ended April 1, 2016 (U.S. GAAP net
earnings and EPS were $65 million and $0.54, respectively). This
compares to adjusted net earnings of $92 million, or $0.72 per
diluted share, on revenues of $2.9 billion for the second quarter
of fiscal 2015 ended March 27, 2015 (U.S. GAAP net earnings and EPS
were $82 million and $0.64, respectively).
Included in the Company’s fiscal 2016 second quarter adjusted
net earnings is a net benefit of $0.03 per share related to several
items, including the release of a foreign tax reserve and a
one-time benefit in noncontrolling interests relating to certain
work performed by one of our partially owned subsidiaries;
partially off-set by the impact of a customer bankruptcy and a
litigation settlement. The Company's adjusted net earnings for the
second quarter of fiscal 2016 exclude the after-tax costs related
to certain restructuring activities that began during fiscal 2015
(the "2015 Restructuring") totaling $26 million, or $0.21 per
diluted share.
Jacobs also announced total backlog of $18.2 billion at April 1,
2016.
Commenting on the results for the second quarter of fiscal 2016,
Jacobs President and CEO Steve Demetriou stated, “I am pleased with
the strong operational execution during the quarter, allowing the
Company to mitigate challenges in certain end markets. The strength
of our diversity, our improved project delivery performance and
continued successful cost reduction efforts were key drivers in our
ability to perform in the current environment. The Company’s new
line of business organization and subsequent incremental reporting
is enhancing discipline and accountability, while providing
additional insight to our shareholders.”
Jacobs Chief Financial Officer Kevin Berryman added, “I would
also like to note the sizeable improvement in cash flow and working
capital for the quarter, both of which are indicative of a building
momentum to become more effective in our working capital
performance. Finally, our first half results give us greater
confidence to reach our objectives for the year, and as a result,
we are narrowing our guidance for the full year to an adjusted EPS
of $2.90-$3.20.”
Jacobs is hosting a conference call at 11:00 a.m. Eastern Time
on Thursday, May 5, 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):
For the Three Months Ended For the Six Months
Ended April 1, 2016 March 27, 2015 April 1, 2016
March 27, 2015 Revenues $ 2,781,763 $ 2,903,332 $ 5,629,697 $
6,090,337 Costs and Expenses: Direct cost of contracts (2,337,547 )
(2,412,388 ) (4,745,007 ) (5,079,947 ) Selling, general and
administrative expenses (357,435 ) (357,899 )
(738,459 ) (719,122 ) Operating Profit 86,781 133,045
146,231 291,268 Other Income (Expense): Interest income 2,264 1,580
4,484 3,856 Interest expense (2,200 ) (4,548 ) (5,743 ) (9,866 )
Miscellaneous income (expense), net 3,611 (1,115 )
3,271 (1,601 ) Total other income (expense), net
3,675 (4,083 ) 2,012 (7,611 ) Earnings
Before Taxes 90,456 128,962 148,243 283,657 Income Tax Expense
(27,067 ) (40,852 ) (34,548 ) (89,352 )
Net Earnings of the Group 63,389 88,110 113,695 194,305 Net Loss
(Earnings) Attributable to Noncontrolling Interests 1,861
(6,143 ) (1,931 ) (12,259 ) Net Earnings
Attributable to Jacobs $ 65,250 $ 81,967 $ 111,764 $ 182,046 Net
Earnings Per Share: Basic $ 0.54 $ 0.65 $ 0.93 $ 1.43 Diluted $
0.54 $ 0.64 $ 0.92 $ 1.42
Segment Information (in
thousands):
For the Three Months Ended For the Six Months
Ended
April 1, 2016
March 27, 2015
April 1, 2016
March 27, 2015
Revenues from External Customers: Petroleum & Chemicals $
866,615 $ 1,046,767 $ 1,808,928 $ 2,207,219 Aerospace &
Technology 669,464 701,115 1,339,655 1,435,342 Buildings &
Infrastructure 579,128 602,062 1,142,458 1,226,792 Industrial
666,556 553,388 1,338,656 1,220,984
Total $ 2,781,763 $ 2,903,332 $ 5,629,697 $ 6,090,337
For the Three Months Ended For the Six Months Ended
April 1, 2016
March 27, 2015
April 1, 2016
March 27, 2015
Operating Profit: Petroleum & Chemicals $ 30,945 $ 28,656 $
62,548 $ 63,755 Aerospace & Technology 55,121 53,072 103,120
103,033 Buildings & Infrastructure 42,463 42,428 82,915 80,392
Industrial 12,417 47,877 39,772 76,850
Total Segment Operating Profit 140,946 172,033 288,355 324,030
Other Corporate Expenses (18,797 ) (24,950 ) (38,373 ) (18,724 )
Restructuring Charges (35,368 ) (14,038 ) (103,751 ) (14,038 )
Total Other Income (Expense) 3,675 (4,083 )
2,012 (7,611 ) Earnings Before Taxes $ 90,456 $ 128,962 $
148,243 $ 283,657
Other Operational Information (in
thousands):
For the Three Months Ended For the Six
Months Ended April 1, 2016 March 27, 2015 April 1,
2016 March 27, 2015 Depreciation (pre-tax) $ 21,059 $
25,149 $ 43,226 $ 51,155 Amortization of Intangibles (pre-tax) $
11,725 $ 12,554 $ 23,451 $ 25,535 Pass-Through Costs Included in
Revenues $ 601,129 $ 615,336 $ 1,271,460 $ 1,322,166 Capital
Expenditures $ 13,322 $ 25,402 $ 29,309 $ 59,177
Balance Sheet (in
thousands):
April 1,2016(Unaudited)
October 2,2015
ASSETS Current Assets: Cash and cash equivalents $ 559,722 $
460,859 Receivables 2,415,092 2,548,743 Prepaid expenses and other
98,014 113,076 Total current assets 3,072,828
3,122,678 Property, Equipment and Improvements, Net 343,550
381,238 Other Noncurrent Assets: Goodwill 3,054,798 3,048,778
Intangibles 342,367 353,419 Deferred income taxes 375,244 374,064
Miscellaneous 528,018 505,749 Total other non-current
assets 4,300,427 4,282,010 $ 7,716,805 $ 7,785,926
LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities:
Notes payable $ 2,727 $ 13,364 Accounts payable 487,810 566,866
Accrued liabilities 1,054,229 1,090,985 Billings in excess of costs
373,649 309,951 Total current liabilities
1,918,415 1,981,166 Long-term Debt 530,000 584,434 Other
Deferred Liabilities 829,416 863,868 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—122,146,182 shares and
123,152,966 shares, respectively
122,146 123,153 Additional paid-in capital 1,149,777 1,137,144
Retained earnings 3,554,291 3,496,212 Accumulated other
comprehensive loss (450,196 ) (464,764 ) Total Jacobs
stockholders’ equity 4,376,018 4,291,745 Noncontrolling interests
62,956 64,713 Total Group stockholders’ equity
4,438,974 4,356,458 $ 7,716,805 $ 7,785,926
Backlog (in millions):
April 1, 2016 March 27, 2015 Backlog:
Petroleum & Chemicals $ 5,179.4 $
6,533.9
Aerospace & Technology 4,887.2 5,379.3 Buildings &
Infrastructure 4,838.9 4,639.2 Industrial 3,304.3
2,314.6
Total $ 18,209.8 $ 18,867.0
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 the comparable periods
presented below, such adjustments consist of amounts incurred in
connection with the 2015 Restructuring. 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 second
quarter fiscal 2016 and 2015:
Three Months Ended
April 1, 2016
Effects of 2015 Without 2015
U.S. GAAP
Restructuring Restructuring Consolidated pre-tax earnings $ 90,456
$ (35,368 ) $ 125,824 Tax expense (27,067 ) 9,668
(36,735 ) Net earnings of the Group 63,389 (25,700 ) 89,089
Non-controlling interests 1,861 — 1,861 Net
earnings of Jacobs $ 65,250 $ (25,700 ) $ 90,950 Diluted earnings
per share $ 0.54 $ (0.21 ) $ 0.75 Three Months Ended
March 27, 2015
Effects of 2015 Without 2015
U.S. GAAP
Restructuring Restructuring Consolidated pre-tax earnings $ 128,962
$ (14,038 ) $ 143,000 Tax expense (40,852 ) 4,422
(45,274 ) Net earnings of the Group 88,110 (9,616 ) 97,726
Non-controlling interests (6,143 ) — (6,143 )
Net earnings of Jacobs $ 81,967 $ (9,616 ) $ 91,583 Diluted
earnings per share $ 0.64 $ (0.08 ) $ 0.72
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version on businesswire.com: http://www.businesswire.com/news/home/20160505005583/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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