EX-99.1 2 yearend2018earningsrelease.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1

exhibit991image1a03.jpg

 
 
 
1999 Bryan Street, Suite 1200
 
Dallas, Texas 75201
 
1.214.583.8500

Press Release

FOR IMMEDIATE RELEASE
November 20, 2018
Jacobs Reports Fiscal Fourth Quarter Earnings
Strong Execution Against Strategy to Transform to a Higher Margin Portfolio
DALLAS, TEXAS - 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 operating margin objective one year early. Looking forward, our active portfolio management

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.

1



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.”



2





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.



3



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.
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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

 

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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


8



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

9



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)


10



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
%

11



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
%

12



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


[END]

13