DALLAS, May 7, 2019 /PRNewswire/ -- Jacobs
Engineering Group Inc. (NYSE: JEC) today announced its financial
results for the fiscal second quarter ended March 29,
2019.
Q2 2019 Highlights:
- Revenue of $3.1
billion1 grew 7.7% year-over-year and 8.7% on net
revenue basis
- Operating profit up double-digit year-over-year; OP margin up
more than 120 bps
- EPS from continuing operations of $0.82, affected by CH2M related restructuring and
ECR divestiture costs
- Adjusted EPS from continuing operations of $1.19, up 37% year-over-year
- Backlog increased $1.5 billion,
or 8% year-over-year to $20.7
billion
- Increasing fiscal 2019 adjusted pro forma EPS outlook to
$4.45 - $4.85 (excluding full year ECR)2
Jacobs' Chair and CEO Steve
Demetriou commented, "Our strong second quarter results
include significant net revenue and operating profit growth versus
the year-ago quarter, resulting in our adjusted operating profit
margin increasing to 9% for the quarter. These results provide
momentum to achieve our fiscal 2019 outlook. We view an
ambitious strategic vision, consistent execution and disciplined
capital allocation as paramount to driving continued shareholder
value. We are creating a company like no other that is rooted
in a culture of innovation focused on solving the world's most
complex challenges."
Jacobs' CFO Kevin Berryman added,
"Our second quarter results were solid across both lines of
business resulting in strong overall revenue and profit growth. The
CH2M integration is near complete and revenue synergies are
accelerating in backlog, which is up 8% year-over-year. Our
transformed portfolio is well aligned to long-term secular growth
trends with an efficient cost structure that will drive enhanced
operating leverage. We continue to expect $920 million to $1
billion in adjusted EBITDA3 for fiscal 2019 and
we are raising our fiscal 2019 adjusted pro forma EPS outlook to
$4.45 - $4.85."
The company announced the pending acquisition of The KeyW
Holding Corporation on April 22, 2019
and closed the sale of its Energy, Chemicals and Resources (ECR)
business on April 26, 2019.
1Reflects continuing operations as reported in
accordance with GAAP.
2Reconciliation of the adjusted EPS 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, including with respect to
the costs and charges relating to transaction expenses,
restructuring and integration to be incurred in fiscal 2019.
3Reconciliation 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, including with respect to
the costs and charges relating to transaction expenses,
restructuring and integration to be incurred in fiscal 2019.
|
Second Quarter
Review
|
|
|
Fiscal 2Q
2019
|
Fiscal 2Q
2018
|
Change
|
|
Revenue
|
$3.1
billion
|
$2.9
billion
|
$0.2
billion
|
|
Net
Revenue
|
$2.5
billion
|
$2.3
billion
|
$0.2
billion
|
|
GAAP Net Earnings
from Continuing Operations
|
$115
million
|
-$6
million
|
$121
million
|
|
GAAP Earnings Per
Diluted Share (EPS) from Continuing Operations
|
$0.82
|
-$0.04
|
$0.86
|
|
Adjusted Net
Earnings from Continuing Operations
|
$166
million
|
$124
million
|
$42
million
|
|
Adjusted EPS from
Continuing Operations
|
$1.19
|
$0.87
|
$0.32
|
The company's adjusted net earnings from continuing operations
and adjusted EPS from continuing operations for the second quarter
of fiscal 2019 and fiscal 2018 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 2Q
2019
|
Fiscal 2Q
2018
|
|
After-tax
restructuring and other charges
|
$55 million ($0.39
per share)
|
$57 million ($0.40
per share)
|
|
After-tax transaction
costs incurred in connection with the closing of the CH2M
acquisition and the sale of the ECR business
|
$0.4 million ($0.00
per share)
|
$4 million ($0.02 per
share)
|
|
Other adjustments
include:
(a) addback of
amortization of intangible assets of $18.7 million and $18.2
million in the 2019 and 2018 periods, respectively,
(b) the
allocation to discontinued operations of estimated stranded
corporate costs of $6.4 million in the 2019 and 2018 periods that
will be reimbursed or otherwise eliminated in connection with the
sale of the ECR business,
(c) the
allocation to discontinued operations of estimated interest expense
amounts in 2019 and 2018 related to long-term debt that has been
paid down in connection with the sale of the ECR business of $18.4
million and $14.4 million, respectively,
(d) the
exclusion of a $37 million one-time favorable adjustment in the
2019 period associated with reduction of deferred income taxes for
permanently reinvested earnings from non-U.S. subsidiaries in
connection with the sale of the ECR business,
(e) the
add-back of charges resulting from the revaluation of certain
deferred tax assets/liabilities in connection with U.S. tax reform
of $40.6 million in the 2018 period and
(f) associated
income tax expense adjustments for the above pre-tax adjustment
items.
|
-$5 million (-$0.03
per share)
|
$70 million ($0.49
per share)
|
|
Adjusted EPS from
Continuing Operations
|
$166 million ($1.19
per share)
|
$124 million ($0.87
per share)
|
|
|
(note: earnings
per share amounts may not add due to rounding)
|
Fiscal second quarter 2019 earnings from continuing operations
include an adjusted effective tax rate of 23% excluding the ECR
sale related tax adjustment mentioned above. Additionally, fiscal
second quarter 2019 earnings include pre-tax charges for the award
and recovery of costs, estimated related interest and attorneys'
fees in the amount of $147.0 million
for a legal matter. Such charges relate to discontinued operations
and therefore are not included in earnings from continuing
operations.
Jacobs is hosting a conference call at 10:00 A.M. ET on Tuesday May 7, 2019, which it is
webcasting live at www.jacobs.com.
Energy, Chemicals and Resources (ECR) Sale to
WorleyParsons
On April 26, 2019, Jacobs
completed the previously announced sale of the Jacobs' ECR business
to WorleyParsons Limited.
KeyW Acquisition
On April 21, 2019, Jacobs
entered into an Agreement and Plan of Merger (the "Merger
Agreement") with The KeyW Holding Corporation, a Maryland corporation ("KeyW"), and Atom
Acquisition Sub, Inc., a Maryland
corporation and a wholly owned indirect subsidiary of Jacobs
("Merger Sub"). Pursuant to and subject to the terms and conditions
of the Merger Agreement, Merger Sub will commence an all-cash
tender offer within fifteen business days after the date of the
Merger Agreement to acquire all of KeyW's issued and outstanding
shares of common stock at a price per share of $11.25, payable net to the seller in cash,
without interest, and subject to any required withholding taxes.
Jacobs expects to finance the transaction through a combination of
cash on hand and its existing credit facility. The acquisition is
subject to the satisfaction of customary closing conditions,
including regulatory approvals and is expected to be completed by
August 31, 2019.
About Jacobs
Jacobs leads the global professional services sector delivering
solutions for a more connected, sustainable world. With
approximately $12 billion in revenue
and a talent force of more than 50,000, 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 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, and our
Quarterly Report on Form 10-Q for the quarter ended March 29,
2019, and in particular the discussions contained under Part I,
Item 2 - Management's Discussion and Analysis of Financial
Condition and Results of Operations; Part II, Item 1 - Legal
Proceedings; and Part II, Item 1A - Risk Factors, 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 Six Months
Ended
|
|
March 29,
2019
|
|
March 30,
2018
|
|
March 29,
2019
|
|
March 30,
2018
|
|
Revenues
|
$
|
3,091,596
|
|
|
$
|
2,870,295
|
|
|
$
|
6,175,384
|
|
|
$
|
4,654,294
|
|
|
Direct cost of
contracts
|
(2,474,755)
|
|
|
(2,268,667)
|
|
|
(4,990,023)
|
|
|
(3,710,572)
|
|
|
Gross profit
|
616,841
|
|
|
601,628
|
|
|
1,185,361
|
|
|
943,722
|
|
|
Selling, general and
administrative expenses
|
(514,160)
|
|
|
(532,873)
|
|
|
(969,551)
|
|
|
(879,637)
|
|
|
Operating
Profit
|
102,681
|
|
|
68,755
|
|
|
215,810
|
|
|
64,085
|
|
|
Other Income
(Expense):
|
|
|
|
|
|
|
|
|
Interest
income
|
1,670
|
|
|
1,785
|
|
|
3,774
|
|
|
5,619
|
|
|
Interest
expense
|
(29,423)
|
|
|
(19,228)
|
|
|
(54,749)
|
|
|
(26,320)
|
|
|
Miscellaneous income
(expense), net
|
36,904
|
|
|
(2,661)
|
|
|
39,186
|
|
|
(1,436)
|
|
|
Total other (expense)
income, net
|
9,151
|
|
|
(20,104)
|
|
|
(11,789)
|
|
|
(22,137)
|
|
|
Earnings from
Continuing Operations Before Taxes
|
111,832
|
|
|
48,651
|
|
|
204,021
|
|
|
41,948
|
|
|
Income Tax Benefit
(Expense) for Continuing Operations
|
7,947
|
|
|
(51,856)
|
|
|
(14,811)
|
|
|
(79,056)
|
|
|
Net Earnings (Loss) of
the Group from Continuing Operations
|
119,779
|
|
|
(3,205)
|
|
|
189,210
|
|
|
(37,108)
|
|
|
Net Earnings (Loss) of
the Group from Discontinued Operations
|
(57,006)
|
|
|
55,137
|
|
|
3,153
|
|
|
91,601
|
|
|
Net Earnings of the
Group
|
62,773
|
|
|
51,932
|
|
|
192,363
|
|
|
54,493
|
|
|
Net Earnings
Attributable to Noncontrolling Interests from Continuing
Operations
|
(5,024)
|
|
|
(3,085)
|
|
|
(9,562)
|
|
|
(3,416)
|
|
|
Net Earnings (Loss)
Attributable to Jacobs from Continuing Operations
|
114,755
|
|
|
(6,290)
|
|
|
179,648
|
|
|
(40,524)
|
|
|
Net Earnings
Attributable to Noncontrolling Interests from Discontinued
Operations
|
(832)
|
|
|
(260)
|
|
|
(1,588)
|
|
|
(327)
|
|
|
Net Earnings (Loss)
Attributable to Jacobs from Discontinued Operations
|
$
|
(57,838)
|
|
|
$
|
54,877
|
|
|
$
|
1,565
|
|
|
$
|
91,274
|
|
|
Net Earnings
Attributable to Jacobs
|
$
|
56,917
|
|
|
$
|
48,587
|
|
|
$
|
181,213
|
|
|
$
|
50,750
|
|
|
Net Earnings Per
Share:
|
|
|
|
|
|
|
|
|
Basic Net Earnings
from Continuing Operations Per Share
|
$
|
0.83
|
|
|
$
|
(0.04)
|
|
|
$
|
1.28
|
|
|
$
|
(0.30)
|
|
|
Basic Net Earnings
from Discontinued Operations Per Share
|
$
|
(0.42)
|
|
|
$
|
0.39
|
|
|
$
|
0.01
|
|
|
$
|
0.68
|
|
|
Basic Earnings Per
Share
|
$
|
0.41
|
|
|
$
|
0.34
|
|
|
$
|
1.29
|
|
|
$
|
0.38
|
|
|
|
|
|
|
|
|
|
|
Diluted Net Earnings
from Continuing Operations Per Share
|
$
|
0.82
|
|
|
$
|
(0.04)
|
|
|
$
|
1.27
|
|
|
$
|
(0.30)
|
|
|
Diluted Net Earnings
from Discontinued Operations Per Share
|
$
|
(0.41)
|
|
|
$
|
0.39
|
|
|
$
|
0.01
|
|
|
$
|
0.68
|
|
|
Diluted Earnings Per
Share
|
$
|
0.41
|
|
|
$
|
0.34
|
|
|
$
|
1.28
|
|
|
$
|
0.38
|
|
|
|
|
|
|
|
|
|
|
Segment
Information (in thousands):
|
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
March 29,
2019
|
|
March 30,
2018
|
|
March 29,
2019
|
|
March 30,
2018
|
|
Revenues from External
Customers:
|
|
|
|
|
|
|
|
|
Aerospace, Technology
and Nuclear
|
$
|
1,059,508
|
|
|
$
|
923,905
|
|
|
$
|
2,094,537
|
|
|
$
|
1,634,780
|
|
|
Buildings,
Infrastructure and Advanced Facilities
|
2,032,088
|
|
|
1,946,390
|
|
|
4,080,847
|
|
|
3,019,514
|
|
|
Pass Through
Revenue
|
(632,359)
|
|
|
(608,720)
|
|
|
(1,306,637)
|
|
|
(1,020,507)
|
|
|
Buildings,
Infrastructure and Advanced Facilities Net Revenue
|
$
|
1,399,729
|
|
|
$
|
1,337,670
|
|
|
$
|
2,774,210
|
|
|
$
|
1,999,007
|
|
|
Total
Revenue
|
$
|
3,091,596
|
|
|
$
|
2,870,295
|
|
|
$
|
6,175,384
|
|
|
$
|
4,654,294
|
|
|
Net Revenue
|
$
|
2,459,237
|
|
|
$
|
2,261,575
|
|
|
$
|
4,868,747
|
|
|
$
|
3,633,787
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
March 29,
2019
|
|
March 30,
2018
|
|
March 29,
2019
|
|
March 30,
2018
|
|
Segment Operating
Profit:
|
|
|
|
|
|
|
|
|
Aerospace, Technology
and Nuclear
|
$
|
73,831
|
|
|
$
|
52,458
|
|
|
$
|
145,982
|
|
|
$
|
113,524
|
|
|
Buildings,
Infrastructure and Advanced Facilities
|
172,689
|
|
|
144,755
|
|
|
332,148
|
|
|
211,615
|
|
|
Total Segment Operating
Profit
|
246,520
|
|
|
197,213
|
|
|
478,130
|
|
|
325,139
|
|
|
Other Corporate
Expenses (1)
|
(49,901)
|
|
|
(47,133)
|
|
|
(121,149)
|
|
|
(96,361)
|
|
|
Restructuring and Other
Charges
|
(93,938)
|
|
|
(76,473)
|
|
|
(141,171)
|
|
|
(92,200)
|
|
|
Transaction
Costs
|
—
|
|
|
(4,852)
|
|
|
—
|
|
|
(72,493)
|
|
|
Total U.S. GAAP
Operating Profit
|
102,681
|
|
|
68,755
|
|
|
215,810
|
|
|
64,085
|
|
|
Total Other (Expense)
Income, net (2)
|
9,151
|
|
|
(20,104)
|
|
|
(11,789)
|
|
|
(22,137)
|
|
|
Earnings from
Continuing Operations Before Taxes
|
$
|
111,832
|
|
|
$
|
48,651
|
|
|
$
|
204,021
|
|
|
$
|
41,948
|
|
|
|
|
(1)
|
Other corporate
expenses include costs that were previously allocated to the ECR
segment prior to discontinued operations presentation in connection
with the ECR sale in the approximate amounts of $6.4 million for
the three-month periods ended March 29, 2019 and March 30, 2018,
respectively, and $12.8 million for the six-month periods ended
March 29, 2019 and March 30, 2018, respectively. Other corporate
expenses also include intangibles amortization of $18.7 million and
$18.2 million for the three-month periods ended March 29, 2019 and
March 30, 2018, respectively and $37.3 million and $29.8 million
for the six-month periods ended March 29, 2019 and March 30, 2018,
respectively.
|
|
|
|
(2)
|
Includes gain on the
settlement of the CH2M retiree medical plans of $32.4 million and
$34.6 million and the amortization of deferred financing fees
related to the CH2M acquisition of $0.5 million and $1.0 million
for the three- and six-month periods ended March 29, 2019 as
well as amortization of deferred financing fees related to
the CH2M acquisition of $0.5 million and $0.7 million for the
three- and six-month periods ended March 30, 2018.
|
|
Other
Operational Information (in thousands):
|
|
|
For the Six Months
Ended
|
|
Continuing
Operations
|
March 29,
2019
|
|
March 30,
2018
|
|
Depreciation
(pre-tax)
|
$
|
41,702
|
|
$
|
45,240
|
|
Amortization of
Intangibles (pre-tax)
|
$
|
37,349
|
|
$
|
29,752
|
|
Pass-Through Costs
Included in Revenues
|
$
|
1,306,637
|
|
$
|
1,020,507
|
|
Capital
Expenditures
|
$
|
58,909
|
|
$
|
33,499
|
|
Balance Sheet
(in thousands):
|
|
|
Unaudited
|
March 29,
2019
|
|
September 28,
2018
|
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
674,548
|
|
|
$
|
634,870
|
|
|
Receivables and
contract assets
|
2,747,172
|
|
|
2,513,934
|
|
|
Prepaid expenses and
other
|
127,320
|
|
|
171,096
|
|
|
Current assets held for
sale
|
1,297,430
|
|
|
1,236,684
|
|
|
Total current
assets
|
4,846,470
|
|
|
4,556,584
|
|
|
Property, Equipment and
Improvements, net
|
268,800
|
|
|
257,859
|
|
|
Other Noncurrent
Assets:
|
|
|
|
|
Goodwill
|
4,774,849
|
|
|
4,795,856
|
|
|
Intangibles,
net
|
533,638
|
|
|
572,952
|
|
|
Miscellaneous
|
847,076
|
|
|
760,854
|
|
|
Noncurrent assets held
for sale
|
1,675,012
|
|
|
1,701,690
|
|
|
Total other noncurrent
assets
|
7,830,575
|
|
|
7,831,352
|
|
|
$
|
12,945,845
|
|
|
$
|
12,645,795
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Notes
payable
|
$
|
24
|
|
|
$
|
3,172
|
|
|
Accounts
payable
|
828,522
|
|
|
776,189
|
|
|
Accrued
liabilities
|
1,177,632
|
|
|
1,167,002
|
|
|
Contract
liabilities
|
450,864
|
|
|
442,760
|
|
|
Current liabilities
held for sale
|
731,158
|
|
|
756,570
|
|
|
Total current
liabilities
|
3,188,200
|
|
|
3,145,693
|
|
|
Long-term
Debt
|
2,841,536
|
|
|
2,144,167
|
|
|
Other Deferred
Liabilities
|
1,237,535
|
|
|
1,260,977
|
|
|
Noncurrent liabilities
held for sale
|
122,993
|
|
|
150,604
|
|
|
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—136,432,304 shares and
142,217,933 shares as of March 29, 2019 and September 28, 2018,
respectively
|
136,432
|
|
|
142,218
|
|
|
Additional paid-in
capital
|
2,568,809
|
|
|
2,708,839
|
|
|
Retained
earnings
|
3,620,873
|
|
|
3,809,991
|
|
|
Accumulated other
comprehensive loss
|
(860,260)
|
|
|
(806,703)
|
|
|
Total Jacobs
stockholders' equity
|
5,465,854
|
|
|
5,854,345
|
|
|
Noncontrolling
interests
|
89,727
|
|
|
90,009
|
|
|
Total Group
stockholders' equity
|
5,555,581
|
|
|
5,944,354
|
|
|
$
|
12,945,845
|
|
|
$
|
12,645,795
|
|
|
Statement of
Cash Flow (in thousands):
|
|
|
For the Six Months
Ended
|
|
March 29,
2019
|
|
March 30,
2018
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
Net earnings
attributable to the Group
|
$
|
192,363
|
|
|
$
|
54,493
|
|
|
Adjustments to
reconcile net earnings to net cash flows provided by
operations:
|
|
|
|
|
Depreciation and
amortization:
|
|
|
|
|
Property, equipment
and improvements
|
43,812
|
|
|
59,139
|
|
|
Intangible
assets
|
37,963
|
|
|
36,048
|
|
|
(Gain) Loss on
disposal of businesses and investments
|
—
|
|
|
(444)
|
|
|
Stock based
compensation
|
28,916
|
|
|
47,189
|
|
|
Equity in earnings of
operating ventures, net
|
(5,325)
|
|
|
787
|
|
|
(Gain) Losses on
disposals of assets, net
|
3,730
|
|
|
3,917
|
|
|
Loss (Gain) on
pension and retiree medical plan changes
|
(34,621)
|
|
|
3,819
|
|
|
Deferred income
taxes
|
(31,008)
|
|
|
6,799
|
|
|
Changes in assets and
liabilities, excluding the effects of businesses
acquired:
|
|
|
|
|
Receivables and
contract assets
|
(252,731)
|
|
|
(171,912)
|
|
|
Prepaid expenses and
other current assets
|
47,733
|
|
|
(2,361)
|
|
|
Accounts
payable
|
(6,754)
|
|
|
17,972
|
|
|
Accrued
liabilities
|
(57,763)
|
|
|
(20,625)
|
|
|
Contract
liabilities
|
57,881
|
|
|
33,599
|
|
|
Other deferred
liabilities
|
(48,761)
|
|
|
(17,420)
|
|
|
Other, net
|
(30,667)
|
|
|
3,204
|
|
|
Net cash (used for) provided by operating activities
|
(55,232)
|
|
|
54,204
|
|
|
Cash Flows Used for
Investing Activities:
|
|
|
|
|
Additions to property
and equipment
|
(61,480)
|
|
|
(44,845)
|
|
|
Disposals of property
and equipment and other assets
|
7,240
|
|
|
428
|
|
|
Distributions of
capital from (contributions to) equity investees
|
(3,904)
|
|
|
(7,696)
|
|
|
Acquisitions of
businesses, net of cash acquired
|
—
|
|
|
(1,484,817)
|
|
|
Proceeds (payments)
related to sales of businesses
|
—
|
|
|
3,403
|
|
|
Purchases of
noncontrolling interests
|
(1,113)
|
|
|
—
|
|
|
Net cash used for investing activities
|
(59,257)
|
|
|
(1,533,527)
|
|
|
Cash Flows Provided by
Financing Activities:
|
|
|
|
|
Net proceeds from
borrowings
|
695,571
|
|
|
1,562,201
|
|
|
Debt issuance
costs
|
(3,741)
|
|
|
—
|
|
|
Proceeds from
issuances of common stock
|
25,945
|
|
|
26,636
|
|
|
Common stock
repurchases
|
(488,435)
|
|
|
(2,951)
|
|
|
Taxes paid on vested
restricted stock
|
(20,317)
|
|
|
(17,140)
|
|
|
Cash dividends,
including to noncontrolling interests
|
(56,390)
|
|
|
(44,233)
|
|
|
Net cash provided by
(used for) financing activities
|
152,633
|
|
|
1,524,513
|
|
|
Effect of Exchange Rate
Changes
|
19,136
|
|
|
16,074
|
|
|
Net Increase in Cash
and Cash Equivalents
|
57,280
|
|
|
61,264
|
|
|
Cash and Cash
Equivalents at the Beginning of the Period
|
793,358
|
|
|
774,151
|
|
|
Cash and Cash
Equivalents at the End of the Period
|
850,638
|
|
|
835,415
|
|
|
Less Cash and Cash
Equivalents included in Assets held for Sale
|
(176,090)
|
|
|
(164,612)
|
|
|
Cash and Cash
Equivalents of Continuing Operations at the End of the
Period
|
$
|
674,548
|
|
|
$
|
670,803
|
|
|
Backlog (in
millions):
|
|
|
March 29,
2019
|
|
March 30,
2018
|
|
Aerospace, Technology
and Nuclear
|
$
|
7,285
|
|
|
$
|
7,174
|
|
|
Buildings,
Infrastructure and Advanced Facilities
|
13,428
|
|
|
12,088
|
|
|
Total
|
$
|
20,713
|
|
|
$
|
19,262
|
|
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 net revenue, adjusted
net earnings from continuing operations, adjusted EPS from
continuing operations, adjusted operating profit margin and
adjusted EBITDA.
Adjusted net earnings from continuing operations, adjusted EPS
from continuing operations, and adjusted operating profit margin
are non-GAAP financial measures that are calculated by (i)
excluding 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) excluding costs and other
charges associated with restructuring activities implemented in
connection with the CH2M acquisition and the ECR divestiture, which
included involuntary terminations, costs associated with
co-locating Jacobs and CH2M offices, separating physical locations
of ECR and continuing operations, costs and expenses of the
Integration Management Office and Separation 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,
expenses relating to certain commitments and contingencies relating
to discontinued operations of the CH2M business, and similar costs
and expenses (collectively referred to as the "Restructuring and
other charges"); (iii) excluding transaction costs and other
charges incurred in connection with closing of the CH2M acquisition
and sale of the ECR business, including advisor fees, change in
control payments, costs and expenses relating to the registration
and listing of Jacobs stock issued in connection with the CH2M
acquisition, and similar transaction costs and expenses
(collectively referred to as "transaction costs"); (iv) excluding
charges resulting from the revaluation of certain deferred tax
assets/liabilities in connection with U.S. tax reform; (v) adding
back depreciation and amortization relating to the ECR business of
the Company that was ceased as a result of the application of
held-for-sale accounting; (vi) adding back amortization of
intangible assets; (vii) allocating to discontinued operations
estimated stranded corporate costs that will be reimbursed or
otherwise eliminated in connection with the sale of the ECR
business; (viii) allocating to discontinued operations estimated
interest expense relating to long-term debt that was paid down with
the proceeds of the ECR sale; and (ix) the exclusion of a one-time
favorable adjustment in the fiscal 2019 period associated with a
reduction of deferred income taxes for permanently reinvested
earnings from non-U.S. subsidiaries in connection with the sale of
the ECR business. Adjustments to derive adjusted net earnings from
continuing operations, adjusted EPS from continuing operations are
calculated on an after-tax basis. Net revenue is calculated by
excluding pass-through revenues of the BIAF line of business.
We believe that net revenue, adjusted net earnings from continuing
operations, adjusted EPS from continuing operations, 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 or adding back the effects
of the items described above, the inclusion or exclusion of which
can obscure underlying trends. Additionally, management uses net
revenue, adjusted net earnings from continuing operations, adjusted
EPS from continuing operations, 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 revenue, net earnings from continuing operations, EPS from
continuing operations, 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). Reconciliation of the
adjusted EPS and 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.
|
U.S. GAAP
Reconciliation for the second quarter of fiscal 2019 and
2018
|
|
|
Three Months
Ended
|
|
March 29,
2019
|
|
U.S.
GAAP
|
|
Effects of
Restructuring
and Other
Charges
|
|
Effects of
Transaction
Costs (1)
|
|
Other
Adjustments
(2)
|
|
Adjusted
|
|
Revenues
|
$
|
3,091,596
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,091,596
|
|
|
Pass through
revenue
|
—
|
|
|
—
|
|
|
—
|
|
|
(632,359)
|
|
|
$
|
(632,359)
|
|
|
Net
revenue
|
3,091,596
|
|
|
—
|
|
|
—
|
|
|
(632,359)
|
|
|
2,459,237
|
|
|
Direct cost of
contracts
|
(2,474,755)
|
|
|
(3,383)
|
|
|
—
|
|
|
632,359
|
|
|
(1,845,779)
|
|
|
Gross
profit
|
616,841
|
|
|
(3,383)
|
|
|
—
|
|
|
—
|
|
|
613,458
|
|
|
Selling, general and
administrative expenses
|
(514,160)
|
|
|
$
|
97,321
|
|
|
$
|
—
|
|
|
$
|
25,078
|
|
|
$
|
(391,761)
|
|
|
Operating
Profit
|
102,681
|
|
|
93,938
|
|
|
—
|
|
|
25,078
|
|
|
221,697
|
|
|
Total other (expense)
income, net
|
9,151
|
|
|
(27,117)
|
|
|
515
|
|
|
18,403
|
|
|
952
|
|
|
Earnings from
Continuing Operations Before Taxes
|
111,832
|
|
|
66,821
|
|
|
515
|
|
|
43,481
|
|
|
222,649
|
|
|
Income Tax Benefit
(Expense) for Continuing Operations
|
7,947
|
|
|
(11,824)
|
|
|
(125)
|
|
|
(48,097)
|
|
|
(52,099)
|
|
|
Net Earnings (Loss)
of the Group from Continuing Operations
|
119,779
|
|
|
54,997
|
|
|
390
|
|
|
(4,616)
|
|
|
170,550
|
|
|
Net Earnings
Attributable to Noncontrolling Interests from Continuing
Operations
|
(5,024)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,024)
|
|
|
Net Earnings from
Continuing Operations attributable to Jacobs
|
114,755
|
|
|
54,997
|
|
|
390
|
|
|
(4,616)
|
|
|
165,526
|
|
|
Net Earnings
Attributable to Discontinued Operations
|
(57,838)
|
|
|
2,078
|
|
|
1,705
|
|
|
(24,489)
|
|
|
(78,544)
|
|
|
Net earnings
attributable to Jacobs
|
$
|
56,917
|
|
|
$
|
57,075
|
|
|
$
|
2,095
|
|
|
$
|
(29,105)
|
|
|
$
|
86,982
|
|
|
Diluted Net Earnings
from Continuing Operations Per Share
|
$
|
0.82
|
|
|
$
|
0.39
|
|
|
$
|
—
|
|
|
$
|
(0.03)
|
|
|
$
|
1.19
|
|
|
Diluted Net Earnings
from Discontinued Operations Per Share
|
$
|
(0.41)
|
|
|
$
|
0.01
|
|
|
$
|
0.01
|
|
|
$
|
(0.18)
|
|
|
$
|
(0.56)
|
|
|
Diluted Earnings Per
Share
|
$
|
0.41
|
|
|
$
|
0.41
|
|
|
$
|
0.02
|
|
|
$
|
(0.21)
|
|
|
$
|
0.62
|
|
|
Operating profit
margin
|
3.32
|
%
|
|
|
|
|
|
|
|
9.01
|
%
|
|
|
|
(1)
|
Includes after-tax
CH2M transaction costs and adjustments of $0.4 million as well as
after-tax transaction costs associated with the sale of our ECR
line of business of $1.7 million.
|
|
|
|
(2)
|
Includes (a) the
removal of pass through revenues and costs for the BIAF line of
business for the calculation of operating profit margin as a
percentage of net revenue of $632.4 million, (b) the removal of
amortization of intangible assets of $18.7 million, (c) the
allocation to discontinued operations of estimated stranded
corporate costs of $6.4 million that will be reimbursed under the
ECR transition services agreement (TSA) with Worley Parsons or
otherwise eliminated from the ongoing operations in connection with
the sale of the ECR business, (d) the allocation to discontinued
operations of estimated interest expense for the full period
related to long-term debt that has been paid down as a result of
the ECR sale of $18.4 million, (e) the exclusion of approximately
$37.0 million in one-time favorable income tax adjustment
associated with reduction of deferred income taxes for permanently
reinvested earnings from non-U.S. subsidiaries in connection with
the sale of the ECR business, (f) the add-back of depreciation
relating to the ECR business that was ceased as a result of the
application of held-for-sale accounting of $(5.8) million and (g)
associated income tax expense adjustments for all the above pre-tax
adjustment items.
|
|
Three Months
Ended
|
|
March 30,
2018
|
|
U.S.
GAAP
|
|
Effects of
Restructuring
and Other
Charges
|
|
Effects of
CH2M
Transaction
Costs
|
|
Other
Adjustments
(1)
|
|
Adjusted
|
|
Revenues
|
$
|
2,870,295
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,870,295
|
|
|
Pass through
revenue
|
—
|
|
|
—
|
|
|
—
|
|
|
(608,720)
|
|
|
(608,720)
|
|
|
Net
revenue
|
2,870,295
|
|
|
—
|
|
|
—
|
|
|
(608,720)
|
|
|
2,261,575
|
|
|
Direct cost of
contracts
|
(2,268,667)
|
|
|
—
|
|
|
—
|
|
|
608,720
|
|
|
(1,659,947)
|
|
|
Gross
profit
|
601,628
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
601,628
|
|
|
Selling, general and
administrative expenses
|
(532,873)
|
|
|
76,473
|
|
|
4,852
|
|
|
24,605
|
|
|
(426,943)
|
|
|
Operating
Profit
|
68,755
|
|
|
76,473
|
|
|
4,852
|
|
|
24,605
|
|
|
174,685
|
|
|
Total other (expense)
income, net
|
(20,104)
|
|
|
466
|
|
|
—
|
|
|
14,384
|
|
|
(5,254)
|
|
|
Earnings from
Continuing Operations Before Taxes
|
48,651
|
|
|
76,939
|
|
|
4,852
|
|
|
38,989
|
|
|
169,431
|
|
|
Income Tax Benefit
(Expense) for Continuing Operations
|
(51,856)
|
|
|
(20,104)
|
|
|
(1,344)
|
|
|
30,931
|
|
|
(42,373)
|
|
|
Net Earnings (Loss)
of the Group from Continuing Operations
|
(3,205)
|
|
|
56,835
|
|
|
3,508
|
|
|
69,920
|
|
|
127,058
|
|
|
Net Earnings
Attributable to Noncontrolling Interests from Continuing
Operations
|
(3,085)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,085)
|
|
|
Net Earnings from
Continuing Operations attributable to Jacobs
|
(6,290)
|
|
|
56,835
|
|
|
3,508
|
|
|
69,920
|
|
|
123,973
|
|
|
Net Earnings
Attributable to Discontinued Operations
|
54,877
|
|
|
(5,633)
|
|
|
—
|
|
|
(13,247)
|
|
|
35,997
|
|
|
Net earnings
attributable to Jacobs
|
$
|
48,587
|
|
|
$
|
51,202
|
|
|
$
|
3,508
|
|
|
$
|
56,673
|
|
|
$
|
159,970
|
|
|
Diluted Net Earnings
from Continuing Operations Per Share
|
$
|
(0.04)
|
|
|
$
|
0.40
|
|
|
$
|
0.02
|
|
|
$
|
0.49
|
|
|
$
|
0.87
|
|
|
Diluted Net Earnings
from Discontinued Operations Per Share
|
$
|
0.39
|
|
|
$
|
(0.04)
|
|
|
$
|
—
|
|
|
$
|
(0.09)
|
|
|
$
|
0.25
|
|
|
Diluted Earnings Per
Share
|
$
|
0.34
|
|
|
$
|
0.36
|
|
|
$
|
0.02
|
|
|
$
|
0.40
|
|
|
$
|
1.12
|
|
|
Operating profit
margin
|
2.40
|
%
|
|
|
|
|
|
|
|
7.72
|
%
|
|
|
(1) Includes (a) the
removal of pass through revenues and costs for the BIAF line of
business for the calculation of operating profit margin as a
percentage of net revenue of $608.7 million, (b) the removal of
amortization of intangible assets of $18.2 million, (c) the
allocation to discontinued operations of estimated stranded
corporate costs of $6.4 million that would have been reimbursed
under the ECR transition services agreement (TSA) with Worley
Parsons or otherwise eliminated from the ongoing operations in
connection with the sale of the ECR business, (d) estimated 2018
impacts of $21.0 million from overhead allocation realignments in
connection with the Company's CH2M business in the first quarter of
fiscal 2019 had those changes been put into effect in first quarter
of fiscal 2018 (the net impact of which was zero for consolidated
selling, general and administrative expenses), (e) the allocation
to discontinued operations of estimated interest expense for the
full period related to long-term debt that has been paid down as a
result of the ECR sale of $14.4 million, (f) the add-back of
charges resulting from the revaluation of certain deferred tax
assets/liabilities in connection with U.S. tax reform of $40.6
million and (g) associated income tax expense adjustments for all
the above pre-tax adjustment items.
|
|
Six Months
Ended
|
|
March 29,
2019
|
|
U.S.
GAAP
|
|
Effects of
Restructuring
and Other
Charges
|
|
Effects of
Transaction
Costs (1)
|
|
Other
Adjustments
(2)
|
|
Adjusted
|
|
Revenues
|
$
|
6,175,384
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,175,384
|
|
|
Pass through
revenue
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,306,637)
|
|
|
(1,306,637)
|
|
|
Net
revenue
|
6,175,384
|
|
|
—
|
|
|
—
|
|
|
(1,306,637)
|
|
|
4,868,747
|
|
|
Direct cost of
contracts
|
(4,990,023)
|
|
|
(512)
|
|
|
|
|
1,306,637
|
|
|
(3,683,898)
|
|
|
Gross
profit
|
1,185,361
|
|
|
(512)
|
|
|
—
|
|
|
—
|
|
|
1,184,849
|
|
|
Selling, general and
administrative expenses
|
(969,551)
|
|
|
141,683
|
|
|
—
|
|
|
50,149
|
|
|
(777,719)
|
|
|
Operating
Profit
|
215,810
|
|
|
141,171
|
|
|
—
|
|
|
50,149
|
|
|
407,130
|
|
|
Total other (expense)
income, net
|
(11,789)
|
|
|
(29,291)
|
|
|
1,029
|
|
|
36,470
|
|
|
(3,581)
|
|
|
Earnings from
Continuing Operations Before Taxes
|
204,021
|
|
|
111,880
|
|
|
1,029
|
|
|
86,619
|
|
|
403,549
|
|
|
Income Tax Expense for
Continuing Operations
|
(14,811)
|
|
|
(21,519)
|
|
|
(250)
|
|
|
(47,959)
|
|
|
(84,539)
|
|
|
Net Earnings of the
Group from Continuing Operations
|
189,210
|
|
|
90,361
|
|
|
779
|
|
|
38,660
|
|
|
319,010
|
|
|
Net (Earnings) Loss
Attributable to Noncontrolling Interests from Continuing
Operations
|
(9,562)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,562)
|
|
|
Net Earnings from
Continuing Operations attributable to Jacobs
|
179,648
|
|
|
90,361
|
|
|
779
|
|
|
38,660
|
|
|
309,448
|
|
|
Net Earnings
Attributable to Discontinued Operations
|
1,565
|
|
|
(2,645)
|
|
|
6,500
|
|
|
(47,799)
|
|
|
(42,379)
|
|
|
Net earnings
attributable to Jacobs
|
$
|
181,213
|
|
|
$
|
87,716
|
|
|
$
|
7,279
|
|
|
$
|
(9,139)
|
|
|
$
|
267,069
|
|
|
Diluted Net Earnings
from Continuing Operations Per Share
|
$
|
1.27
|
|
|
$
|
0.64
|
|
|
$
|
0.01
|
|
|
$
|
0.27
|
|
|
$
|
2.18
|
|
|
Diluted Net Earnings
from Discontinued Operations Per Share
|
$
|
0.01
|
|
|
$
|
(0.02)
|
|
|
$
|
0.05
|
|
|
$
|
(0.34)
|
|
|
$
|
(0.30)
|
|
|
Diluted Earnings Per
Share
|
$
|
1.28
|
|
|
$
|
0.62
|
|
|
$
|
0.05
|
|
|
$
|
(0.06)
|
|
|
$
|
1.88
|
|
|
Operating profit
margin
|
3.49
|
%
|
|
|
|
|
|
|
|
8.36
|
%
|
|
|
(1) Includes
after-tax CH2M transaction costs and adjustments of $1.0 million as
well as after-tax transaction costs associated with the sale of our
ECR line of business of $6.5 million.
|
|
|
(2) Includes (a) the
removal of pass through revenues and costs for the BIAF line of
business for the calculation of operating profit margin as a
percentage of net revenue of $1.31 billion, (b) the removal of
amortization of intangible assets of $37.3 million, (c) the
allocation to discontinued operations of estimated stranded
corporate costs of $12.8 million that will be reimbursed under the
ECR transition services agreement (TSA) with Worley Parsons
or otherwise eliminated from the ongoing operations in connection
with the sale of the ECR business, (d) the allocation to
discontinued operations of estimated interest expense for the full
period related to long-term debt that has been paid down as a
result of the ECR sale of $36.5 million, (e) the exclusion of
approximately $37.0 million in one-time favorable income tax
adjustment associated with reduction of deferred income taxes for
permanently reinvested earnings from non-U.S. subsidiaries in
connection with the sale of the ECR business, (f) the add-back of
charges resulting from the revaluation of certain deferred tax
assets/liabilities in connection with U.S. tax reform from the
first quarter of $11.0 million and (g) the add-back of depreciation
relating to the ECR business that was ceased as a result of the
application of held-for-sale accounting of $(11.0) million and (h)
associated income tax expense adjustments for all the above pre-tax
adjustment items.
|
|
Six Months
Ended
|
|
March 30,
2018
|
|
U.S.
GAAP
|
|
Effects of
Restructuring
and Other
Charges
|
|
Effects of
CH2M
Transaction
Costs
|
|
Other
Adjustments
(1)
|
|
Adjusted
|
|
Revenues
|
$
|
4,654,294
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,654,294
|
|
|
Pass through
revenue
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,020,507)
|
|
|
(1,020,507)
|
|
|
Net
revenue
|
4,654,294
|
|
|
—
|
|
|
—
|
|
|
(1,020,507)
|
|
|
3,633,787
|
|
|
Direct cost of
contracts
|
(3,710,572)
|
|
|
—
|
|
|
—
|
|
|
1,020,507
|
|
|
(2,690,065)
|
|
|
Gross
profit
|
943,722
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
943,722
|
|
|
Selling, general and
administrative expenses
|
(879,637)
|
|
|
92,200
|
|
|
72,493
|
|
|
42,552
|
|
|
(672,392)
|
|
|
Operating
Profit
|
64,085
|
|
|
92,200
|
|
|
72,493
|
|
|
42,552
|
|
|
271,330
|
|
|
Total other (expense)
income, net
|
(22,137)
|
|
|
466
|
|
|
256
|
|
|
17,137
|
|
|
(4,278)
|
|
|
Earnings from
Continuing Operations Before Taxes
|
41,948
|
|
|
92,666
|
|
|
72,749
|
|
|
59,689
|
|
|
267,052
|
|
|
Income Tax Expense for
Continuing Operations
|
(79,056)
|
|
|
(23,919)
|
|
|
(17,880)
|
|
|
54,689
|
|
|
(66,166)
|
|
|
Net Earnings of the
Group from Continuing Operations
|
(37,108)
|
|
|
68,747
|
|
|
54,869
|
|
|
114,378
|
|
|
200,886
|
|
|
Net (Earnings) Loss
Attributable to Noncontrolling Interests from Continuing
Operations
|
(3,416)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,416)
|
|
|
Net Earnings from
Continuing Operations attributable to Jacobs
|
(40,524)
|
|
|
68,747
|
|
|
54,869
|
|
|
114,378
|
|
|
197,470
|
|
|
Net Earnings
Attributable to Discontinued Operations
|
91,274
|
|
|
(2,889)
|
|
|
—
|
|
|
(17,807)
|
|
|
70,578
|
|
|
Net earnings
attributable to Jacobs
|
$
|
50,750
|
|
|
$
|
65,858
|
|
|
$
|
54,869
|
|
|
$
|
96,571
|
|
|
$
|
268,048
|
|
|
Diluted Net Earnings
from Continuing Operations Per Share
|
$
|
(0.30)
|
|
|
$
|
0.51
|
|
|
$
|
0.41
|
|
|
$
|
0.86
|
|
|
$
|
1.48
|
|
|
Diluted Net Earnings
from Discontinued Operations Per Share
|
$
|
0.68
|
|
|
$
|
(0.02)
|
|
|
$
|
—
|
|
|
$
|
(0.13)
|
|
|
$
|
0.53
|
|
|
Diluted Earnings Per
Share
|
$
|
0.38
|
|
|
$
|
0.49
|
|
|
$
|
0.41
|
|
|
$
|
0.72
|
|
|
$
|
2.00
|
|
|
Operating profit
margin
|
1.38
|
%
|
|
|
|
|
|
|
|
7.47
|
%
|
|
|
(1) Includes (a) the
removal of pass through revenues and costs for the BIAF line of
business for the calculation of operating profit margin as a
percentage of net revenue of $1.02 billion; (b) the removal of
amortization of intangible assets of $29.8 million, (c) the
allocation to discontinued operations of estimated stranded
corporate costs of $12.8 million that would have been reimbursed
under the ECR transition services agreement (TSA) with Worley
Parsons or otherwise eliminated from the ongoing operations in
connection with the sale of the ECR business, (d) estimated 2018
impacts of $32.0 million from overhead allocation realignments in
connection with the Company's CH2M business in the first quarter of
fiscal 2019 had those changes been put into effect in first quarter
of fiscal 2018 (the net impact of which was zero for consolidated
selling, general and administrative expenses), (e) the allocation
to discontinued operations of estimated interest expense for the
full period related to long-term debt that has been paid down as a
result of the ECR sale of $17.1 million, (f) the add-back of
charges resulting from the revaluation of certain deferred tax
assets/liabilities in connection with U.S. tax reform of $69.4
million and (g) associated income tax expense adjustments for all
the above pre-tax adjustment items.
|
|
Earnings Per
Share:
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
March 29,
2019
|
|
March 30,
2018
|
|
March 29,
2019
|
|
March 30,
2018
|
|
Numerator for
Basic and Diluted EPS:
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to Jacobs from continuing operations
|
$
|
114,755
|
|
|
$
|
(6,290)
|
|
|
$
|
179,648
|
|
|
$
|
(40,524)
|
|
|
Net earnings (loss)
from continuing operations allocated to participating
securities
|
(191)
|
|
|
33
|
|
|
(338)
|
|
|
247
|
|
|
Net earnings
(loss) from continuing operations allocated to common stock for EPS
calculation
|
$
|
114,564
|
|
|
$
|
(6,257)
|
|
|
$
|
179,310
|
|
|
$
|
(40,277)
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to Jacobs from discontinued operations
|
$
|
(57,838)
|
|
|
$
|
54,877
|
|
|
1,565
|
|
|
91,274
|
|
|
Net earnings (loss)
from discontinued operations allocated to participating
securities
|
96
|
|
|
(287)
|
|
|
(3)
|
|
|
(557)
|
|
|
Net earnings
(loss) from discontinued operations allocated to common stock for
EPS calculation
|
$
|
(57,742)
|
|
|
$
|
54,590
|
|
|
$
|
1,562
|
|
|
$
|
90,717
|
|
|
|
|
|
|
|
|
|
|
Net earnings
allocated to common stock for EPS calculation
|
$
|
56,822
|
|
|
$
|
48,333
|
|
|
$
|
180,872
|
|
|
$
|
50,440
|
|
|
|
|
|
|
|
|
|
|
Denominator for
Basic and Diluted EPS:
|
|
|
|
|
|
|
|
|
Weighted average
basic shares
|
138,566
|
|
|
142,531
|
|
|
140,509
|
|
|
133,770
|
|
|
Shares allocated to
participating securities
|
(231)
|
|
|
(746)
|
|
|
(264)
|
|
|
(816)
|
|
|
Shares used for
calculating basic EPS attributable to common stock
|
138,335
|
|
|
141,785
|
|
|
140,245
|
|
|
132,954
|
|
|
|
|
|
|
|
|
|
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
Stock compensation
plans
|
981
|
|
|
—
|
|
|
1,202
|
|
|
—
|
|
|
Shares used for
calculating diluted EPS attributable to common stock
|
139,316
|
|
|
141,785
|
|
|
141,447
|
|
|
132,954
|
|
|
|
|
|
|
|
|
|
|
Net Earnings Per
Share:
|
|
|
|
|
|
|
|
|
Basic Net Earnings
from Continuing Operations Per Share
|
$
|
0.83
|
|
|
$
|
(0.04)
|
|
|
$
|
1.28
|
|
|
$
|
(0.30)
|
|
|
Basic Net Earnings
from Discontinued Operations Per Share
|
$
|
(0.42)
|
|
|
$
|
0.39
|
|
|
$
|
0.01
|
|
|
$
|
0.68
|
|
|
Basic
EPS
|
$
|
0.41
|
|
|
$
|
0.34
|
|
|
$
|
1.29
|
|
|
$
|
0.38
|
|
|
Diluted Net Earnings
from Continuing Operations Per Share
|
$
|
0.82
|
|
|
$
|
(0.04)
|
|
|
$
|
1.27
|
|
|
$
|
(0.30)
|
|
|
Diluted Net Earnings
from Discontinued Operations Per Share
|
$
|
(0.41)
|
|
|
$
|
0.39
|
|
|
$
|
0.01
|
|
|
$
|
0.68
|
|
|
Diluted
EPS
|
$
|
0.41
|
|
|
$
|
0.34
|
|
|
$
|
1.28
|
|
|
$
|
0.38
|
|
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