DALLAS, Nov. 20, 2018 /PRNewswire/ -- Jacobs
(NYSE:JEC) today announced its financial results for the fiscal
fourth quarter and fiscal year ended September 28, 2018.
Highlights:
- Q4 2018 revenue of $4.1 billion
grew 56% year-over-year, up 7% on a pro forma basis
- Q4 2018 operating profit margin and adjusted operating
profit margin up over 130 bps
year-over-year
- Q4 2018 EPS of $(0.16) and fiscal
2018 EPS of $1.28, impacted by tax
reform and CH2M acquisition related charges
- Q4 2018 adjusted EPS of $1.31 up
34% year-over-year, fiscal 2018 adjusted EPS of $4.47 up 38%
- Q4 gross debt declined a further $194
million versus Q3, reducing gross debt to adjusted EBITDA to
1.7x
- Portfolio transformation accelerated with announced
$3.3 billion sale of Energy,
Chemicals and Resources business
- Fiscal 2019 expectation reaffirmed for $920 million to $1
billion of adjusted EBITDA1, excluding ECR
results
"This was an exciting year at Jacobs. We accelerated our
profitable growth strategy with the acquisition of CH2M and
continued to transform the portfolio with the announced sale of our
ECR business, all while delivering strong financial results across
each segment," said Jacobs' Chair and CEO, Steve Demetriou. "We continued our relentless
focus on a culture of accountability, strong operational execution
and profitable growth. Our emphasis on driving performance
excellence resulted in fiscal 2018 pro forma revenue growth of over
9% and adjusted operating profit margin of 6.0% - achieving our
2019 strategic profit margin objective one year early. Looking
forward, our active portfolio management has positioned the company
to deliver higher-value sustainable and digitally-enabled solutions
for our infrastructure and government clients worldwide."
The company further reduced gross debt by nearly $200 million during the quarter to $2.2 billion, which resulted in a gross debt
leverage ratio of 1.7x adjusted EBITDA, well in line with its
communicated target of under 2x. On a pro forma basis which adjusts
for the sale of ECR, the company's net cash would be $1.2 billion with gross debt to adjusted EBITDA
of 0.5x.
Jacobs' CFO, Kevin Berryman,
added, "Our fourth quarter and fiscal 2018 results showed continued
disciplined execution against our strategy on growing in higher
margin less cyclical markets. We delivered strong revenue growth
and gross and operating profit margin percentage increases over 130
basis points year-over-year in the
quarter. Our fourth quarter adjusted cash flow from operations
continued to be healthy at over $250
million, when excluding a $50
million voluntary pension payment." Berryman also confirmed
the company's fiscal 2019 outlook. "Following our strong
performance in 2018, we continue to expect $920 million to $1
billion in adjusted EBITDA, excluding the ECR results for
fiscal 2019."
1Reconciliation of the
adjusted EBITDA outlook for the full fiscal year to the most
directly comparable GAAP measure is not available without
unreasonable efforts because the Company cannot predict with
sufficient certainty all the components required to provide such
reconciliation.
|
Fourth Quarter
Review
|
|
|
Fiscal 4Q
2018
|
Fiscal 4Q
2017
|
Change
|
Revenue
|
$4.1
billion
|
$2.7
billion
|
$1.5
billion
|
GAAP Net
Earnings
|
-$23
million
|
$94
million
|
-$117
million
|
GAAP Earnings Per
Diluted Share (EPS)
|
-$0.16
|
$0.78
|
-$0.94
|
Adjusted Net
Earnings
|
$188
million
|
$118
million
|
$70
million
|
Adjusted
EPS
|
$1.31
|
$0.98
|
$0.33
|
The company's adjusted net earnings and adjusted EPS for the
fourth quarter of fiscal 2018 and fiscal 2017 exclude the charges
and costs set forth in the table below. For additional information
regarding these adjustments and a reconciliation of adjusted net
earnings and adjusted EPS to net earnings and EPS, respectively,
refer to the section entitled "Non-GAAP Financial Measures" at the
end of this release.
Included within fiscal fourth quarter after-tax restructuring
and other charges is a $21.0 million
predominately non-cash loss on the sale of the Company's ownership
interest in its Brazilian joint venture.
|
Fiscal 4Q
2018
|
Fiscal 4Q
2017
|
After-tax
restructuring and other charges
|
$39 million ($0.27
per diluted share)
|
$14 million ($0.11
per diluted share)
|
After-tax transaction
costs incurred in connection with the closing of the CH2M
acquisition and the sale of the ECR segment
|
$2 million ($0.01 per
diluted share)
|
$11 million ($0.09
per diluted share)
|
Charge resulting from
the revaluation of certain deferred tax assets/liabilities in
connection with U.S. tax reform
|
$169 million ($1.18
per diluted share)
|
N/A
|
Adjusted Earnings
(EPS)
|
$188 million ($1.31
per diluted share)
|
$118 million ($0.98
per diluted share)
|
|
(note: earnings
per share amounts may not add due to rounding)
|
The fiscal fourth quarter 2018 effective tax rate was 25%
excluding the U.S. tax reform adjustment mentioned above.
Fiscal 2018
Review
|
|
|
Fiscal
2018
|
Fiscal
2017
|
Change
|
Revenue
|
$15.0
billion
|
$10.0
billion
|
$5.0
billion
|
GAAP Net
Earnings
|
$178
million
|
$294
million
|
-$115
million
|
GAAP Earnings Per
Diluted Share (EPS)
|
$1.28
|
$2.42
|
-$1.14
|
Adjusted Net
Earnings
|
$623
million
|
$392
million
|
$231
million
|
Adjusted
EPS
|
$4.47
|
$3.24
|
$1.23
|
The company's adjusted net earnings and adjusted EPS for fiscal
2018 and fiscal 2017 exclude the charges and costs set forth in the
table below. For additional information regarding these adjustments
and a reconciliation of adjusted net earnings and adjusted EPS to
net earnings and EPS, respectively, refer to the section entitled
"Non-GAAP Financial Measures" at the end of this release.
|
Fiscal
2018
|
Fiscal
2017
|
After-tax
restructuring and other charges
|
$140 million ($1.01
per diluted share)
|
$88 million ($0.73
per diluted share)
|
After-tax transaction
costs incurred in connection with the closing of the CH2M
acquisition and the sale of the ECR segment
|
$61 million ($0.44
per diluted share)
|
$11 million ($0.09
per diluted share)
|
Charge resulting from
the revaluation of certain deferred tax assets/liabilities in
connection with U.S. tax reform
|
$244 million ($1.75
per diluted share)
|
NA
|
Adjusted Earnings
(EPS)
|
$623 million ($4.47
per diluted share)
|
$392 million ($3.24
per diluted share)
|
|
(note: earnings
per share amounts may not add due to rounding)
|
For fiscal year 2018, the effective tax rate was 23% excluding
the U.S. tax reform adjustment mentioned above.
Jacobs is hosting a conference call at 10:00 A.M. ET on
Tuesday November 20, 2018, which it
is webcasting live at www.jacobs.com.
Energy, Chemicals and Resources (ECR) Sale to
WorleyParsons
On October 21, 2018, WorleyParsons
entered into a Stock and Asset Purchase Agreement to acquire the
Jacobs' ECR business for a purchase price of $3.3 billion consisting of (i) $2.6 billion in cash plus (ii) ordinary shares of
the Buyer equal to $700 million,
subject to adjustments for changes in working capital and certain
other items (the "Transaction"). The Transaction, which has been
approved by the boards of directors of the company and
WorleyParsons, is expected to close in the first half of calendar
year 2019.
About Jacobs
Jacobs leads the global professional services sector delivering
solutions for a more connected, sustainable world. With
$15 billion in fiscal 2018 revenue
and a talent force of more than 80,000, Jacobs provides a full
spectrum of services including scientific, technical, professional
and construction- and program-management for business, industrial,
commercial, government and infrastructure sectors. For more
information, visit www.jacobs.com, and connect with Jacobs on
LinkedIn, Twitter, Facebook and Instagram.
Forward-Looking Statements
Certain statements contained in this press release constitute
forward-looking statements as such term is defined in Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and such statements
are intended to be covered by the safe harbor provided by the
same. 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 additional 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 year ended
September 29, 2017 and our subsequent
Quarterly Report on Form 10-Q for the first fiscal quarter of 2018,
and when filed with the Securities and Exchange Commission (the
"SEC"), our Annual Report on Form 10-K for the year ended
September 28, 2018, 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. The Company is not under
any duty to update any of the forward-looking statements after the
date of this press release to conform to actual results, except as
required by applicable law.
Financial
Highlights:
|
|
Results of
Operations (in thousands, except per-share
data):
|
|
|
For the Three Months
Ended
|
|
For the Years
Ended
|
|
September 28,
2018
|
|
September 29,
2017
|
|
September 28,
2018
|
|
September 29,
2017
|
Revenues
|
$
|
4,142,644
|
|
|
$
|
2,653,865
|
|
|
$
|
14,984,646
|
|
|
$
|
10,022,788
|
|
Direct cost of
contracts
|
(3,351,228)
|
|
|
(2,179,575)
|
|
|
(12,156,276)
|
|
|
(8,250,536)
|
|
Gross profit
|
791,416
|
|
|
474,290
|
|
|
2,828,370
|
|
|
1,772,252
|
|
Selling, general and
administrative expenses
|
(550,104)
|
|
|
(367,298)
|
|
|
(2,180,399)
|
|
|
(1,379,983)
|
|
Operating
Profit
|
241,312
|
|
|
106,992
|
|
|
647,971
|
|
|
392,269
|
|
Other Income
(Expense):
|
|
|
|
|
|
|
|
Interest
income
|
2,088
|
|
|
3,051
|
|
|
8,984
|
|
|
8,748
|
|
Interest
expense
|
(26,652)
|
|
|
(708)
|
|
|
(76,760)
|
|
|
(12,035)
|
|
Gain (Loss) on
disposal of business and investments
|
(21,171)
|
|
|
10,880
|
|
|
(20,967)
|
|
|
10,880
|
|
Miscellaneous income
(expense), net
|
2,262
|
|
|
(766)
|
|
|
(4,523)
|
|
|
(6,645)
|
|
Total other (expense)
income, net
|
(43,473)
|
|
|
12,457
|
|
|
(93,266)
|
|
|
948
|
|
Earnings Before
Taxes
|
197,839
|
|
|
119,449
|
|
|
554,705
|
|
|
393,217
|
|
Income Tax
Expense
|
(214,261)
|
|
|
(26,021)
|
|
|
(366,563)
|
|
|
(105,842)
|
|
Net Earnings of the
Group
|
(16,422)
|
|
|
93,428
|
|
|
188,142
|
|
|
287,375
|
|
Net (Earnings) Loss
Attributable to Noncontrolling Interests
|
(6,119)
|
|
|
714
|
|
|
(9,711)
|
|
|
6,352
|
|
Net Earnings
Attributable to Jacobs
|
$
|
(22,541)
|
|
|
$
|
94,142
|
|
|
$
|
178,431
|
|
|
$
|
293,727
|
|
Net Earnings Per
Share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.16)
|
|
|
$
|
0.78
|
|
|
$
|
1.29
|
|
|
$
|
2.43
|
|
Diluted
|
$
|
(0.16)
|
|
|
$
|
0.78
|
|
|
$
|
1.28
|
|
|
$
|
2.42
|
|
Segment
Information (in thousands):
|
|
|
For the Three Months
Ended
|
|
For the Years
Ended
|
|
September 28,
2018
|
|
September 29,
2017
|
|
September 28,
2018
|
|
September 29,
2017
|
Revenues from External
Customers:
|
|
|
|
|
|
|
|
Aerospace, Technology,
Environmental and Nuclear
|
$
|
1,299,108
|
|
|
$
|
648,491
|
|
|
$
|
4,372,008
|
|
|
$
|
2,464,363
|
|
Buildings,
Infrastructure and Advanced Facilities
|
1,687,633
|
|
|
1,006,814
|
|
|
6,184,883
|
|
|
3,830,697
|
|
Energy, Chemicals and
Resources
|
1,155,903
|
|
|
998,560
|
|
|
4,427,755
|
|
|
3,727,728
|
|
Total
|
$
|
4,142,644
|
|
|
$
|
2,653,865
|
|
|
$
|
14,984,646
|
|
|
$
|
10,022,788
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Years
Ended
|
|
September 28,
2018
|
|
September 29,
2017
|
|
September 28,
2018
|
|
September 29,
2017
|
Segment Operating
Profit:
|
|
|
|
|
|
|
|
Aerospace, Technology,
Environmental and Nuclear (1)
|
$
|
94,868
|
|
|
$
|
56,400
|
|
|
$
|
311,871
|
|
|
$
|
200,179
|
|
Buildings,
Infrastructure and Advanced Facilities (2)
|
134,390
|
|
|
72,000
|
|
|
482,277
|
|
|
263,679
|
|
Energy, Chemicals and
Resources
|
53,350
|
|
|
41,206
|
|
|
218,109
|
|
|
161,312
|
|
Total Segment Operating
Profit
|
282,608
|
|
|
169,606
|
|
|
1,012,257
|
|
|
625,170
|
|
Other Corporate
Expenses
|
(2,784)
|
|
|
(25,975)
|
|
|
(113,702)
|
|
|
(81,595)
|
|
Restructuring and Other
Charges
|
(34,991)
|
|
|
(19,539)
|
|
|
(170,148)
|
|
|
(134,206)
|
|
Transaction
Costs
|
(3,521)
|
|
|
(17,100)
|
|
|
(80,436)
|
|
|
(17,100)
|
|
Total U.S. GAAP
Operating Profit
|
241,312
|
|
|
106,992
|
|
|
647,971
|
|
|
392,269
|
|
Gain (Loss) on
disposal of business and investments
|
(21,171)
|
|
|
10,880
|
|
|
(20,967)
|
|
|
10,880
|
|
Total Other (Expense)
Income, net (3)
|
(22,302)
|
|
|
1,577
|
|
|
(72,299)
|
|
|
(9,932)
|
|
Earnings Before
Taxes
|
$
|
197,839
|
|
|
$
|
119,449
|
|
|
$
|
554,705
|
|
|
$
|
393,217
|
|
|
|
(1)
|
Includes $15.0
million in charges during the year ended September 28, 2018
associated with a legal matter.
|
|
|
(2)
|
Excludes $23.8 in
restructuring and other charges for the year ended
September 29, 2017. See Note 8, Restructuring and Other
Charges in the Form 10-K for the fiscal year ended
September 28, 2018.
|
|
|
(3)
|
Includes amortization
of deferred financing fees related to the CH2M acquisition of $1.8
million for the year ended September 28, 2018. Also, includes
$1.2 million and $277 thousand of restructuring and other charges
for the years ended September 29, 2017 and September 30,
2016, respectively.
|
Other
Operational Information (in thousands):
|
|
|
For the Three Months
Ended
|
|
For the Years
Ended
|
|
September 28,
2018
|
|
September 29,
2017
|
|
September 28,
2018
|
|
September 29,
2017
|
Depreciation
(pre-tax)
|
$
|
29,141
|
|
|
$
|
23,700
|
|
|
$
|
117,856
|
|
|
$
|
76,418
|
|
Amortization of
Intangibles (pre-tax)
|
$
|
22,236
|
|
|
$
|
11,204
|
|
|
$
|
80,731
|
|
|
$
|
46,095
|
|
Pass-Through Costs
Included in Revenues
|
$
|
860,394
|
|
|
$
|
677,698
|
|
|
$
|
3,058,591
|
|
|
$
|
2,539,311
|
|
Capital
Expenditures
|
$
|
31,476
|
|
|
$
|
44,508
|
|
|
$
|
94,884
|
|
|
$
|
118,060
|
|
Balance Sheet
(in thousands):
|
|
|
September 28,
2018
|
|
September 29,
2017
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
793,358
|
|
|
$
|
774,151
|
|
Receivables
|
3,573,630
|
|
|
2,102,543
|
|
Prepaid expenses and
other
|
208,296
|
|
|
119,486
|
|
Total current
assets
|
4,575,284
|
|
|
2,996,180
|
|
Property, Equipment and
Improvements, net
|
457,706
|
|
|
349,911
|
|
Other Noncurrent
Assets:
|
|
|
|
Goodwill
|
6,107,856
|
|
|
3,009,826
|
|
Intangibles,
net
|
655,957
|
|
|
332,920
|
|
Miscellaneous
|
863,992
|
|
|
692,022
|
|
Total other noncurrent
assets
|
7,627,805
|
|
|
4,034,768
|
|
|
$
|
12,660,795
|
|
|
$
|
7,380,859
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Notes
payable
|
$
|
4,954
|
|
|
$
|
3,071
|
|
Accounts
payable
|
1,127,671
|
|
|
683,605
|
|
Accrued
liabilities
|
1,488,629
|
|
|
939,687
|
|
Billings in excess of
costs
|
524,439
|
|
|
299,864
|
|
Total current
liabilities
|
3,145,693
|
|
|
1,926,227
|
|
Long-term
Debt
|
2,146,877
|
|
|
235,000
|
|
Other Deferred
Liabilities
|
1,408,871
|
|
|
732,281
|
|
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—142,217,933 shares and 120,385,544 shares as of
September 28, 2018 and September 29, 2017, respectively
|
142,218
|
|
|
120,386
|
|
Additional paid-in
capital
|
2,708,839
|
|
|
1,239,782
|
|
Retained
earnings
|
3,824,991
|
|
|
3,721,698
|
|
Accumulated other
comprehensive loss
|
(806,703)
|
|
|
(653,514)
|
|
Total Jacobs
stockholders' equity
|
5,869,345
|
|
|
4,428,352
|
|
Noncontrolling
interests
|
90,009
|
|
|
58,999
|
|
Total Group
stockholders' equity
|
5,959,354
|
|
|
4,487,351
|
|
|
$
|
12,660,795
|
|
|
$
|
7,380,859
|
|
Backlog (in
millions):
|
|
|
September 28,
2018
|
|
September 29,
2017
|
Aerospace, Technology,
Environmental and Nuclear
|
$
|
8,857,066
|
|
|
$
|
6,358,467
|
|
Buildings,
Infrastructure and Advanced Facilities
|
11,375,597
|
|
|
6,788,564
|
|
Energy, Chemicals and
Resources
|
7,065,951
|
|
|
6,641,582
|
|
Total
|
$
|
27,298,614
|
|
|
$
|
19,788,613
|
|
Other Information
In the fourth quarter of 2018, the Company updated certain
provisional amounts reflected in the preliminary purchase price
allocation for the CH2M acquisition, including with respect to
certain pre-acquisition legal matters. Accrued liabilities
and other deferred liabilities in the preliminary purchase
price allocation include approximately $385.3 million at September 28, 2018 for provisional estimates
related to various CH2M legal and other pre-acquisition contingent
liabilities accounted for under ASC 450.
Pro Forma
Figures
In this press release, comparisons of current quarter results to
the historical results of Jacobs and CH2M on a pro forma basis for
fiscal year 2017 were calculated by using revenue and backlog of
the combined Jacobs and CH2M entities as if the acquisition of CH2M
had occurred prior to the historical period, as adjusted for (i)
the exclusion of restructuring and other
related charges; (ii) the deconsolidation of CH2M's
investment in Chalk River as if deconsolidated on October 1, 2016 and (iii) the exclusion of the revenue and
operating results associated with CH2M's MOPAC project. We
believe this information helps provide additional insight into the
underlying trends of our business when comparing current
performance against prior periods. Readers should consider
this information together with a comparison to Jacobs' historical
financial results as reported in Jacobs' filings with the SEC,
which reflect Jacobs-only performance for periods prior to the
closing of the CH2M acquisition on December
15, 2017, and CH2M's historical financial results as
reported in CH2M's filings with the SEC.
Non-GAAP Financial Measures:
In this press release, the Company has included certain non-GAAP
financial measures as defined in Regulation G promulgated under the
Securities Exchange Act of 1934, as amended. The non-GAAP
financial measures included in this press release are adjusted net
earnings, adjusted EPS, adjusted operating profit margin and adjusted EBITDA.
Adjusted net earnings, adjusted EPS and adjusted operating
profit margin are non-GAAP
financial measures that are calculated by excluding (i) the costs
related to the 2015 restructuring activities, which included
involuntary terminations, the abandonment of certain leased
offices, combining operational organizations and the co-location of
employees into other existing offices; and charges associated with
our Europe, U.K. and Middle East region, which included write-offs
on contract accounts receivable and charges for statutory
redundancy and severance costs (collectively, the "2015
Restructuring and other items"); (ii) costs and other charges
associated with restructuring activities implemented in connection
with the CH2M acquisition, which include involuntary terminations,
costs associated with co-locating Jacobs and CH2M offices, costs
and expenses of the Integration Management Office, including
professional services and personnel costs, costs and charges
associated with the divestiture of joint venture interests to
resolve potential conflicts arising from the CH2M acquisition, and
similar costs and expenses (collectively referred to as the "CH2M
Restructuring and other charges"); (iii) transaction costs and
other charges incurred in connection with closing of the CH2M
acquisition, including advisor fees, change in control payments,
costs and expenses relating to the registration and listing of
Jacobs stock issued in connection with the acquisition, and similar
transaction costs and expenses (collectively referred to as "CH2M
transaction costs"); (iv) charges resulting from the revaluation of
certain deferred tax assets/liabilities in connection with U.S. tax
reform and (v) transaction costs and expenses incurred in
connection with the pending sale of the ECR business of the
Company. Adjustments to derive adjusted net earnings and adjusted
EPS are calculated on an after-tax basis. Adjusted EBITDA is
calculated in accordance with the Company's existing credit
facilities. We believe that adjusted net earnings, adjusted
EPS, adjusted operating profit margin and adjusted EBITDA are
useful to management, investors and other users of our financial
information in evaluating the Company's operating results and
understanding the Company's operating trends by excluding the
effects of the items described above, which can obscure underlying
trends. Additionally, management uses adjusted net earnings,
adjusted EPS, adjusted operating profit margin and adjusted EBITDA in
its own evaluation of the Company's performance, particularly when
comparing performance to past periods, and believes these measures
are useful for investors because they facilitate a comparison of
our financial results from period to period.
The Company provides non-GAAP measures to supplement U.S. GAAP
measures, as they provide additional insight into the Company's
financial results. However, non-GAAP measures have
limitations as analytical tools and should not be considered in
isolation and are not in accordance with, or a substitute for, U.S.
GAAP measures. In addition, other companies may define
non-GAAP measures differently, which limits the ability of
investors to compare non-GAAP measures of the Company to those used
by our peer companies.
The following tables reconcile the components and values of U.S.
GAAP net earnings, EPS and operating profit margin to the corresponding
"adjusted" amounts. For the comparable periods presented below,
such adjustments consist of amounts incurred in connection with the
items described above. Amounts are shown in thousands, except for
per-share data: (note: earnings per share amounts may not add
across due to rounding)
U.S. GAAP
Reconciliation for the fourth quarter of fiscal 2018 and
2017
|
|
|
For the Three Months
Ended
|
|
September 28,
2018
|
|
U.S.
GAAP
|
|
Effects of
Restructuring and Other Charges
|
|
Effects of
Transaction Costs (1)
|
|
Other
Adjustments
|
|
Adjusted
|
Revenue
|
$
|
4,142,644
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,142,644
|
|
Direct cost of
contracts
|
(3,351,228)
|
|
|
4,374
|
|
|
—
|
|
|
—
|
|
|
(3,346,854)
|
|
Gross profit
|
791,416
|
|
|
4,374
|
|
|
—
|
|
|
—
|
|
|
795,790
|
|
Selling, general and
administrative expenses
|
(550,104)
|
|
|
30,617
|
|
|
3,521
|
|
|
—
|
|
|
(515,966)
|
|
Operating
Profit
|
241,312
|
|
|
34,991
|
|
|
3,521
|
|
|
—
|
|
|
279,824
|
|
Total other (expense)
income, net
|
(43,473)
|
|
|
20,658
|
|
|
585
|
|
|
—
|
|
|
(22,230)
|
|
Earnings before
taxes
|
197,839
|
|
|
55,649
|
|
|
4,106
|
|
|
—
|
|
|
257,594
|
|
Income Tax (Expense)
Benefit
|
(214,261)
|
|
|
(16,191)
|
|
|
(2,125)
|
|
|
169,458
|
|
|
(63,119)
|
|
Net earnings of the
Group
|
(16,422)
|
|
|
39,458
|
|
|
1,981
|
|
|
169,458
|
|
|
194,475
|
|
Net earnings
attributable to non-controlling interests
|
(6,119)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,119)
|
|
Net earnings
attributable to Jacobs
|
$
|
(22,541)
|
|
|
$
|
39,458
|
|
|
$
|
1,981
|
|
|
$
|
169,458
|
|
|
$
|
188,356
|
|
Diluted earnings per
share (2)
|
$
|
(0.16)
|
|
|
$
|
0.27
|
|
|
$
|
0.01
|
|
|
$
|
1.18
|
|
|
$
|
1.31
|
|
Operating profit
margin
|
5.8
|
%
|
|
0.8
|
%
|
|
0.1
|
%
|
|
—
|
|
|
6.8
|
%
|
|
|
(1)
|
Includes pre-tax CH2M
transaction costs and adjustments of $(0.4 million) as well as
transaction costs associated with the recently announced sale of
our ECR line of business of $4.5 million
|
|
|
(2)
|
For the three months
ended September 28, 2018, the Company's diluted common shares for
purposes of calculating U.S. GAAP diluted EPS exclude the effects
of dilutive securities as they would be antidilutive due to the net
loss position for the quarter. However, these dilutive
securities are included in the diluted common share amounts for
calculating total Adjusted EPS due to the Adjusted net income
amounts reported for the quarter, which is consistent with the
calculation of Adjusted EPS for prior periods.
|
|
For the Three Months
Ended
|
|
September 29,
2017
|
|
U.S.
GAAP
|
|
Effects of
Restructuring and Other Charges
|
|
Effects of CH2M
professional fees and integration costs
|
|
Adjusted
|
Revenue
|
$
|
2,653,865
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,653,865
|
|
Direct cost of
contracts
|
(2,179,575)
|
|
|
—
|
|
|
—
|
|
|
(2,179,575)
|
|
Gross profit
|
474,290
|
|
|
—
|
|
|
|
|
474,290
|
|
Selling, general and
administrative expenses
|
(367,298)
|
|
|
19,539
|
|
|
17,100
|
|
|
(330,659)
|
|
Operating
Profit
|
106,992
|
|
|
19,539
|
|
|
17,100
|
|
|
143,631
|
|
Total other (expense)
income, net
|
12,457
|
|
|
—
|
|
|
—
|
|
|
12,457
|
|
Earnings before
taxes
|
119,449
|
|
|
19,539
|
|
|
17,100
|
|
|
156,088
|
|
Income Tax (Expense)
Benefit
|
(26,021)
|
|
|
(5,980)
|
|
|
(6,498)
|
|
|
(38,499)
|
|
Net earnings of the
Group
|
93,428
|
|
|
13,559
|
|
|
10,602
|
|
|
117,589
|
|
Net earnings
attributable to non-controlling interests
|
714
|
|
|
—
|
|
|
—
|
|
|
714
|
|
Net earnings
attributable to Jacobs
|
$
|
94,142
|
|
|
$
|
13,559
|
|
|
$
|
10,602
|
|
|
$
|
118,303
|
|
Diluted earnings per
share
|
$
|
0.78
|
|
|
$
|
0.11
|
|
|
$
|
0.09
|
|
|
$
|
0.98
|
|
Operating profit
margin
|
4.0
|
%
|
|
0.7
|
%
|
|
0.6
|
%
|
|
5.4
|
%
|
U.S. GAAP
Reconciliation for fiscal years 2018 and 2017
|
|
|
For the Year
Ended
|
|
September 28,
2018
|
|
U.S.
GAAP
|
|
Effects of
Restructuring and Other Charges
|
|
Effects of
Transaction Costs (1)
|
|
Other
Adjustments
|
|
Adjusted
|
Revenue
|
$
|
14,984,646
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,984,646
|
|
Direct cost of
contracts
|
(12,156,276)
|
|
|
6,950
|
|
|
—
|
|
|
—
|
|
|
(12,149,326)
|
|
Gross profit
|
2,828,370
|
|
|
6,950
|
|
|
—
|
|
|
—
|
|
|
2,835,320
|
|
Selling, general and
administrative expenses
|
(2,180,399)
|
|
|
163,198
|
|
|
80,436
|
|
|
—
|
|
|
(1,936,765)
|
|
Operating
Profit
|
647,971
|
|
|
170,148
|
|
|
80,436
|
|
|
—
|
|
|
898,555
|
|
Total other (expense)
income, net
|
(93,266)
|
|
|
20,658
|
|
|
1,774
|
|
|
—
|
|
|
(70,834)
|
|
Earnings before
taxes
|
554,705
|
|
|
190,806
|
|
|
82,210
|
|
|
—
|
|
|
827,721
|
|
Income Tax (Expense)
Benefit
|
(366,563)
|
|
|
(50,161)
|
|
|
(21,488)
|
|
|
244,196
|
|
|
(194,016)
|
|
Net earnings of the
Group
|
188,142
|
|
|
140,645
|
|
|
60,722
|
|
|
244,196
|
|
|
633,705
|
|
Net earnings
attributable to non-controlling interests
|
(9,711)
|
|
|
(577)
|
|
|
—
|
|
|
—
|
|
|
(10,288)
|
|
Net earnings
attributable to Jacobs
|
$
|
178,431
|
|
|
$
|
140,068
|
|
|
$
|
60,722
|
|
|
$
|
244,196
|
|
|
$
|
623,417
|
|
Diluted earnings per
share
|
$
|
1.28
|
|
|
$
|
1.01
|
|
|
$
|
0.44
|
|
|
$
|
1.75
|
|
|
$
|
4.47
|
|
Operating profit
margin
|
4.3
|
%
|
|
1.1
|
%
|
|
0.5
|
%
|
|
—
|
|
|
6.0
|
%
|
|
|
(1)
|
Includes pre-tax CH2M
transaction costs and adjustments of $77.7 million as well as
transaction costs associated with the recently announced sale of
our ECR line of business of $4.5 million.
|
|
For the Year
Ended
|
|
September 29,
2017
|
|
U.S.
GAAP
|
|
Effects of
Restructuring and Other Charges
|
|
Effects of CH2M
professional fees and integration costs
|
|
Adjusted
|
Revenue
|
$
|
10,022,788
|
|
|
$
|
17,526
|
|
|
$
|
—
|
|
|
$
|
10,040,314
|
|
Direct cost of
contracts
|
(8,250,536)
|
|
|
4,913
|
|
|
—
|
|
|
(8,245,623)
|
|
Gross profit
|
1,772,252
|
|
|
22,439
|
|
|
—
|
|
|
1,794,691
|
|
Selling, general and
administrative expenses
|
(1,379,983)
|
|
|
111,767
|
|
|
17,100
|
|
|
(1,251,116)
|
|
Operating
Profit
|
392,269
|
|
|
134,206
|
|
|
17,100
|
|
|
543,575
|
|
Total other (expense)
income, net
|
948
|
|
|
1,233
|
|
|
—
|
|
|
2,181
|
|
Earnings before
taxes
|
393,217
|
|
|
135,439
|
|
|
17,100
|
|
|
545,756
|
|
Income Tax (Expense)
Benefit
|
(105,842)
|
|
|
(42,663)
|
|
|
(6,498)
|
|
|
(155,003)
|
|
Net earnings of the
Group
|
287,375
|
|
|
92,776
|
|
|
10,602
|
|
|
390,753
|
|
Net earnings
attributable to non-controlling interests
|
6,352
|
|
|
(4,913)
|
|
|
—
|
|
|
1,439
|
|
Net earnings
attributable to Jacobs
|
$
|
293,727
|
|
|
$
|
87,863
|
|
|
$
|
10,602
|
|
|
$
|
392,192
|
|
Diluted earnings per
share
|
$
|
2.42
|
|
|
$
|
0.73
|
|
|
$
|
0.09
|
|
|
$
|
3.24
|
|
Operating profit
margin
|
3.9
|
%
|
|
1.3
|
%
|
|
0.2
|
%
|
|
5.4
|
%
|
Earnings Per
Share:
|
|
|
For the Three
Months Ended
|
|
For the Years
Ended
|
|
September 28,
2018
|
|
September 29,
2017
|
|
September 28,
2018
|
|
September 29,
2017
|
Numerator for
Basic and Diluted EPS:
|
|
|
|
|
|
|
|
Net income
|
$
|
(22,541)
|
|
|
$
|
94,142
|
|
|
$
|
178,431
|
|
|
$
|
293,727
|
|
Net income allocated
to participating securities
|
60
|
|
|
(796)
|
|
|
(828)
|
|
|
(3,077)
|
|
Net income
allocated to common stock for EPS calculation
|
$
|
(22,481)
|
|
|
$
|
93,346
|
|
|
$
|
177,603
|
|
|
$
|
290,650
|
|
|
|
|
|
|
|
|
|
Denominator for
Basic and Diluted EPS:
|
|
|
|
|
|
|
|
Weighted average
basic shares
|
142,575
|
|
|
120,392
|
|
|
138,182
|
|
|
120,689
|
|
Shares allocated to
participating securities
|
(379)
|
|
|
(1,018)
|
|
|
(646)
|
|
|
(1,319)
|
|
Shares used for
calculating basic EPS attributable to common stock
|
142,196
|
|
|
119,374
|
|
|
137,536
|
|
|
119,370
|
|
|
|
|
|
|
|
|
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
Stock compensation
plans
|
—
|
|
|
726
|
|
|
1,176
|
|
|
777
|
|
Shares used for
calculating diluted EPS attributable to common stock
|
142,196
|
|
|
120,100
|
|
|
138,712
|
|
|
120,147
|
|
|
|
|
|
|
|
|
|
Basic
EPS
|
$
|
(0.16)
|
|
|
$
|
0.78
|
|
|
$
|
1.29
|
|
|
$
|
2.43
|
|
Diluted
EPS
|
$
|
(0.16)
|
|
|
$
|
0.78
|
|
|
$
|
1.28
|
|
|
$
|
2.42
|
|
For additional information contact:
Investors:
Jonathan Doros, 214-583-8596
jonathan.doros@jacobs.com
Media:
Marietta Hannigan, 214-920-8035
marietta.hannigan@jacobs.com
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SOURCE Jacobs Engineering Group Inc.