Attached files
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| 8-K - 8-K - JACOBS ENGINEERING GROUP INC /DE/ | jec-8k_20160505.htm |
Exhibit 99.1
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155 North Lake Avenue 91101 |
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PO Box 7084 |
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Pasadena, California 91109-7084 |
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1.626.578.3500 Fax 1.626.578.7144 |
Press Release
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FOR IMMEDIATE RELEASE |
May 5, 2016 |
For additional information contact:
Kevin C. Berryman
Executive Vice President and Chief Financial Officer
626.578.3505
Jacobs Engineering Group Inc. Reports Earnings for the Second Quarter of Fiscal 2016
PASADENA, CALIF - 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:
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U.S. GAAP net earnings and EPS of $65M and $0.54, respectively; |
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Adjusted net earnings and EPS of $91M and $0.75, respectively; |
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Backlog at April 1, 2016 of $18.2B, steady at Q1 of fiscal 2016 level; |
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Restructuring – cost reduction initiative delivering strong results - now targeting annual savings of $240M-$270M; |
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Cash flow from operations of $238M; an increase of $272M over the prior year; |
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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
1
Exhibit 99.1
business organization and subsequent incremental reporting is enhancing discipline and accountability, while providing additional insight to our shareholders.”
Kevin Berryman, Jacobs Chief Financial Officer, went on to say, “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.
[ MORE ]
2
Exhibit 99.1
Results of Operations (in thousands, except per-share data):
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For the Three Months Ended |
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For the Six Months Ended |
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April 1, 2016 |
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March 27, 2015 |
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April 1, 2016 |
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March 27, 2015 |
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Revenues |
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$ |
2,781,763 |
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$ |
2,903,332 |
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$ |
5,629,697 |
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$ |
6,090,337 |
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Costs and Expenses: |
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Direct cost of contracts |
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(2,337,547 |
) |
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(2,412,388 |
) |
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(4,745,007 |
) |
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(5,079,947 |
) |
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Selling, general and administrative expenses |
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(357,435 |
) |
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(357,899 |
) |
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(738,459 |
) |
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(719,122 |
) |
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Operating Profit |
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86,781 |
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133,045 |
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146,231 |
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291,268 |
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Other Income (Expense): |
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Interest income |
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2,264 |
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1,580 |
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4,484 |
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3,856 |
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Interest expense |
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(2,200 |
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(4,548 |
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(5,743 |
) |
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(9,866 |
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Miscellaneous income (expense), net |
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3,611 |
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(1,115 |
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3,271 |
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(1,601 |
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Total other income (expense), net |
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3,675 |
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(4,083 |
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2,012 |
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(7,611 |
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Earnings Before Taxes |
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90,456 |
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128,962 |
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148,243 |
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283,657 |
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Income Tax Expense |
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(27,067 |
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(40,852 |
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(34,548 |
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(89,352 |
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Net Earnings of the Group |
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63,389 |
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88,110 |
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113,695 |
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194,305 |
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Net Loss (Earnings) Attributable to Noncontrolling Interests |
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1,861 |
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(6,143 |
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(1,931 |
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(12,259 |
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Net Earnings Attributable to Jacobs |
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$ |
65,250 |
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$ |
81,967 |
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$ |
111,764 |
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$ |
182,046 |
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Net Earnings Per Share: |
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Basic |
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$ |
0.54 |
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$ |
0.65 |
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$ |
0.93 |
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$ |
1.43 |
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Diluted |
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$ |
0.54 |
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$ |
0.64 |
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$ |
0.92 |
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$ |
1.42 |
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Segment Information (in thousands):
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For the Three Months Ended |
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For the Six Months Ended |
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April 1, 2016 |
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March 27, 2015 |
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April 1, 2016 |
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March 27, 2015 |
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Revenues from External Customers: |
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Petroleum & Chemicals |
$ |
866,615 |
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$ |
1,046,767 |
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$ |
1,808,928 |
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$ |
2,207,219 |
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Aerospace & Technology |
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669,464 |
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701,115 |
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1,339,655 |
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1,435,342 |
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Buildings & Infrastructure |
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579,128 |
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602,062 |
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1,142,458 |
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1,226,792 |
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Industrial |
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666,556 |
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553,388 |
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1,338,656 |
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1,220,984 |
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Total |
$ |
2,781,763 |
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$ |
2,903,332 |
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$ |
5,629,697 |
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$ |
6,090,337 |
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For the Three Months Ended |
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For the Six Months Ended |
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April 1, 2016 |
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March 27, 2015 |
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April 1, 2016 |
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March 27, 2015 |
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Operating Profit: |
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Petroleum & Chemicals |
$ |
30,945 |
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$ |
28,656 |
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$ |
62,548 |
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$ |
63,755 |
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Aerospace & Technology |
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55,121 |
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53,072 |
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103,120 |
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103,033 |
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Buildings & Infrastructure |
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42,463 |
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42,428 |
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82,915 |
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80,392 |
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Industrial |
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12,417 |
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47,877 |
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39,772 |
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76,850 |
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Total Segment Operating Profit |
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140,946 |
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172,033 |
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288,355 |
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324,030 |
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Other Corporate Expenses |
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(18,797 |
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(24,950 |
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(38,373 |
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(18,724 |
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Restructuring Charges |
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(35,368 |
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(14,038 |
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(103,751 |
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(14,038 |
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Total Other Income (Expense) |
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3,675 |
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(4,083 |
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2,012 |
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(7,611 |
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Earnings Before Taxes |
$ |
90,456 |
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$ |
128,962 |
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$ |
148,243 |
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$ |
283,657 |
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[ MORE ]
3
Exhibit 99.1
Other Operational Information (in thousands):
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For the Three Months Ended |
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For the Six Months Ended |
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April 1, 2016 |
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March 27, 2015 |
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April 1, 2016 |
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March 27, 2015 |
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Depreciation (pre-tax) |
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$ |
21,059 |
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$ |
25,149 |
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$ |
43,226 |
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$ |
51,155 |
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Amortization of Intangibles (pre-tax) |
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$ |
11,725 |
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$ |
12,554 |
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$ |
23,451 |
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$ |
25,535 |
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Pass-Through Costs Included in Revenues |
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$ |
601,129 |
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$ |
615,336 |
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$ |
1,271,460 |
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$ |
1,322,166 |
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Capital Expenditures |
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$ |
13,322 |
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$ |
25,402 |
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$ |
29,309 |
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$ |
59,177 |
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4
Exhibit 99.1
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April 1, 2016 (Unaudited) |
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October 2, 2015 |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
559,722 |
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$ |
460,859 |
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Receivables |
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2,415,092 |
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2,548,743 |
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Prepaid expenses and other |
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98,014 |
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113,076 |
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Total current assets |
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3,072,828 |
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3,122,678 |
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Property, Equipment and Improvements, Net |
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343,550 |
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381,238 |
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Other Noncurrent Assets: |
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Goodwill |
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3,054,798 |
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3,048,778 |
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Intangibles |
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342,367 |
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353,419 |
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Deferred income taxes |
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375,244 |
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374,064 |
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Miscellaneous |
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528,018 |
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505,749 |
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Total other non-current assets |
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4,300,427 |
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4,282,010 |
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$ |
7,716,805 |
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$ |
7,785,926 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current Liabilities: |
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Notes payable |
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$ |
2,727 |
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$ |
13,364 |
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Accounts payable |
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487,810 |
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566,866 |
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Accrued liabilities |
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1,054,229 |
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1,090,985 |
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Billings in excess of costs |
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373,649 |
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309,951 |
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Total current liabilities |
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1,918,415 |
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1,981,166 |
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Long-term Debt |
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530,000 |
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584,434 |
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Other Deferred Liabilities |
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829,416 |
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863,868 |
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Commitments and Contingencies |
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Stockholders’ Equity: |
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Capital stock: |
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Preferred stock, $1 par value, authorized - 1,000,000 shares; issued and outstanding - none |
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— |
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— |
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Common stock, $1 par value, authorized - 240,000,000 shares; issued and outstanding—122,146,182 shares and 123,152,966 shares, respectively |
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122,146 |
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123,153 |
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Additional paid-in capital |
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1,149,777 |
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1,137,144 |
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Retained earnings |
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3,554,291 |
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3,496,212 |
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Accumulated other comprehensive loss |
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(450,196 |
) |
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(464,764 |
) |
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Total Jacobs stockholders’ equity |
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4,376,018 |
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4,291,745 |
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Noncontrolling interests |
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62,956 |
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64,713 |
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Total Group stockholders’ equity |
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4,438,974 |
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4,356,458 |
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$ |
7,716,805 |
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$ |
7,785,926 |
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5
Exhibit 99.1
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April 1, 2016 |
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March 27, 2015 |
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Backlog: |
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Petroleum & Chemicals |
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$ |
5,179.4 |
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$ |
6,533.9 |
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Aerospace & Technology |
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4,887.2 |
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5,379.3 |
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Buildings & Infrastructure |
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4,838.9 |
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4,639.2 |
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Industrial |
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3,304.3 |
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2,314.6 |
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Total |
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$ |
18,209.8 |
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$ |
18,867.0 |
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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:
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Three Months Ended |
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April 1, 2016 |
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U.S. GAAP |
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Effects of 2015 Restructuring |
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Without 2015 Restructuring |
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Consolidated pre-tax earnings |
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$ |
90,456 |
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$ |
(35,368 |
) |
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$ |
125,824 |
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Tax expense |
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|
(27,067 |
) |
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|
9,668 |
|
|
|
(36,735 |
) |
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Net earnings of the Group |
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63,389 |
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|
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(25,700 |
) |
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|
89,089 |
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Non-controlling interests |
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|
1,861 |
|
|
|
— |
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|
1,861 |
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Net earnings of Jacobs |
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$ |
65,250 |
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|
$ |
(25,700 |
) |
|
$ |
90,950 |
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Diluted earnings per share |
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$ |
0.54 |
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|
$ |
(0.21 |
) |
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$ |
0.75 |
|
|
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Three Months Ended |
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|||||||||
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|
March 27, 2015 |
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|||||||||
|
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U.S. GAAP |
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Effects of 2015 Restructuring |
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Without 2015 Restructuring |
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|||
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Consolidated pre-tax earnings |
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$ |
128,962 |
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|
$ |
(14,038 |
) |
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$ |
143,000 |
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Tax expense |
|
|
(40,852 |
) |
|
|
4,422 |
|
|
|
(45,274 |
) |
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Net earnings of the Group |
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|
88,110 |
|
|
|
(9,616 |
) |
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|
97,726 |
|
|
Non-controlling interests |
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|
(6,143 |
) |
|
|
— |
|
|
|
(6,143 |
) |
|
Net earnings of Jacobs |
|
$ |
81,967 |
|
|
$ |
(9,616 |
) |
|
$ |
91,583 |
|
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Diluted earnings per share |
|
$ |
0.64 |
|
|
$ |
(0.08 |
) |
|
$ |
0.72 |
|
[ END ]
6