DALLAS, Jan. 17, 2019 /PRNewswire/ -- The Jacobs
(NYSE:JEC) Board of Directors has approved a $1 billion incremental share repurchase
authorization and a 13 percent increase to its quarterly dividend
rate.
Jacobs Chair and CEO Steve
Demetriou said, "Our transformation to a higher-margin, less
cyclical business portfolio has improved our strategic and
financial profile. We view our current equity valuation as a unique
opportunity to create value for our shareholders, via share
repurchases. Furthermore, upon the closing of the Energy, Chemicals
and Resources sale, we will gain substantial balance sheet capacity
for meaningful capital deployment. In that regard, we will remain
disciplined to achieve risk-adjusted returns with the objective of
maximizing shareholder value."
CFO Kevin Berryman added, "Our
ability to execute against this new $1
billion authorization is expected to begin shortly following
our investor day on February 19 and
we will communicate additional repurchase details on or before that
time. Along with opportunistically repurchasing shares and
evaluating inorganic investment opportunities, growing our dividend
is also a key component of our capital return philosophy and
reinforces the stability of our free cash flow generation."
Since December 2018, the company
has repurchased approximately $184
million of the remaining $247
million authorization and is continuing to make repurchases
under its previously approved plan. The company's announced
$1 billion share repurchase program
has a 3-year maximum authorized duration.
Additionally, the Board of Directors increased the quarterly
cash dividend payable to shareholders to $0.17 per share of Jacobs common stock, up from
its previous quarterly dividend of $0.15. This dividend will be paid on March 15, 2019 to shareholders of record as of
the close of business on Feb. 15,
2019.
Jacobs continues to expect the sale of its Energy, Chemicals and
Resources business to close in the first half of calendar year
2019.
The company will host its investor day on February 19, 2019, in Miami. Chair and CEO Steve Demetriou, CFO Kevin Berryman, COO Buildings, Infrastructure
and Advanced Facilities Bob Pragada and COO Aerospace, Technology,
Environmental and Nuclear Terry Hagen, as well as other members of
management, will present from 12:30 to 5:00
p.m. ET, webcast live on the company's investor
relations site.
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.
Statements made in this release that are not based on historical
fact are forward-looking statements. We base these forward-looking
statements on management's current estimates and expectations as
well as currently available competitive, financial and economic
data. Forward-looking statements, however, are inherently
uncertain. There are a variety of factors that could cause
actual results to differ materially from our forward-looking
statements, including changes in market conditions and economic
circumstances, availability of investment opportunities,
uncertainties relating to the availability and costs of our
financing needs in the future, currency fluctuations, the timing,
method and amount of repurchases under the share repurchase
authorization, the market price of the Company's common stock, and
the suspension or discontinuation of the share repurchase
authorization, among others. For a description of additional
factors that could cause actual results to differ from our
forward-looking statements please refer to our Form 10-K for the
fiscal year ended September 28, 2018,
and in particular the discussions contained under Items 1 -
Business, 1A - Risk Factors, 3 - Legal Proceedings, and 7 -
Management's Discussion and Analysis of Financial Condition and
Results of Operations. We do not undertake to update any
forward-looking statements made herein.
For additional information contact:
Investors
Jonathan Doros, 817-239-3457
jonathan.doros@jacobs.com
Media
Marietta Hannigan, 214-920-8035
marietta.hannigan@jacobs.com
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SOURCE Jacobs