EX-99.1 2 d258582dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

LOGO   

1111 South Arroyo Parkway 91105

PO Box 7084

Pasadena, California 91109-7084

1.626.578.3500 Fax 1.626.568.7144

Press Release

 

FOR IMMEDIATE RELEASE   November 14, 2011

For additional information contact:

John W. Prosser, Jr.

Executive Vice President, Finance and Administration

626.578.6803

Jacobs Engineering Group Inc. Reports Earnings for Fiscal 2011

PASADENA, CALIF — Jacobs Engineering Group Inc. (NYSE:JEC) announced today its financial results for the fiscal year and fourth quarter ended September 30, 2011.

Fiscal 2011 and Fourth Quarter Fiscal 2011 Highlights:

 

   

Net earnings for fiscal 2011 of $331.0 million;

 

   

Diluted EPS for fiscal 2011 of $2.60;

 

   

Net earnings for the fourth quarter of fiscal 2011 of $94.3 million;

 

   

Diluted EPS for the fourth quarter of fiscal 2011 of $0.74; and,

 

   

Backlog of $14.3 billion.

Jacobs reported today net earnings of $331.0 million, or $2.60 per diluted share, on revenues of $10.4 billion for its fiscal year ended September 30, 2011. These results compare to net earnings of $246.0 million, or $1.96 per diluted share, on revenues of $9.9 billion for fiscal 2010. Excluding the effects of the SIVOM litigation discussed below, net earnings and earnings per diluted share for fiscal 2010 were $306.3 million and $2.44, respectively.

For the fourth quarter of fiscal 2011, Jacobs reported net earnings of $94.3 million, or $0.74 per diluted share, on revenues of $2.7 billion. This compares to net earnings of $77.0 million, or $0.61 per diluted share, on revenues of $2.3 billion for the fourth quarter of fiscal 2010.

During the third quarter of fiscal 2010, the Company recorded a $93.3 million pre-tax charge to earnings relating to an unfavorable court judgment it received pertaining to a waste incineration project in France for the SIVOM de Mulhousienne (“SIVOM”). Net of the effects on the Company’s incentive bonus plan and income taxes, the judgment resulted in a net, after-tax charge to earnings in fiscal 2010 of $60.3 million, or $0.48 per diluted share.

Jacobs also announced backlog totaling $14.3 billion at September 30, 2011, including a technical professional services component of $9.1 billion. This compares to total backlog and technical professional services backlog of $13.2 billion and $7.6 billion, respectively, at October 1, 2010.


Commenting on the results for the year, Jacobs President and CEO Craig L. Martin stated, “Fiscal 2011 was a nice improvement over fiscal 2010. Excluding the effects of the SIVOM matter, earnings grew 8% and EPS grew 7%. More importantly, our prospects for Fiscal 2012 are continuing to improve. While much depends on economic conditions and our sales success, we have a great opportunity to return to our traditional strong double digit growth.”

Commenting on the Company’s earnings outlook for fiscal 2012, Jacobs Chief Financial Officer John W. Prosser, Jr. stated, “With a solid backlog and improving prospects as we finish 2011, we are initiating guidance for fiscal 2012 earnings per share within a range of $2.80 to $3.20.”

Jacobs is hosting a conference call at 11:00 a.m. Eastern Time on Tuesday, November 15, 2011, which they are 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. We caution the reader that there are a variety of factors that could cause business conditions and results to differ materially from what is contained in our forward-looking statements. For a description of some of the factors which may occur that could cause actual results to differ from our forward-looking statements please refer to our 2010 Form 10-K, 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. We also caution the readers of this release that we do not undertake to update any forward-looking statements made herein.

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Financial Highlights:

Results of Operations (in thousands, except per-share data):                

 

     Three Months Ended     Year Ended  
     September 30,
2011
    October 1,
2010
    September 30,
2011
    October 1,
2010
 

Revenues

   $ 2,723,295      $ 2,343,033      $ 10,381,664      $ 9,915,517   

Costs and Expenses:

        

Direct costs of contracts

     (2,296,733     (1,995,006     (8,822,171     (8,582,912

Selling, general, and administrative expenses

     (278,658     (228,512     (1,040,575     (932,522
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Profit

     147,904        119,515        518,918        400,083   

Other Income (Expense):

        

Interest income

     1,527        1,183        4,917        4,791   

Interest expense

     (2,684     (383     (8,799     (9,874

Miscellaneous, net

     (1,591     72        1,625        (3,066
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense), net

     (2,748     872        (2,257     (8,149
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings Before Taxes

     145,156        120,387        516,661        391,934   

Income Tax Expense

     (49,909     (43,308     (181,440     (145,647
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Earnings of the Group

     95,247        77,079        335,221        246,287   

Net Income Attributable to Noncontrolling Interests

     (967     (85     (4,192     (313
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Earnings Attributable to Jacobs

   $ 94,280      $ 76,994      $ 331,029      $ 245,974   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings Per Share (“EPS”):

        

Basic

   $ 0.75      $ 0.62      $ 2.63      $ 1.98   

Diluted

   $ 0.74      $ 0.61      $ 2.60      $ 1.96   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted Average Shares Used to Calculate EPS:

        

Basic

     126,463        124,669        125,686        124,134   

Diluted

     127,537        126,067        127,235        125,790   
  

 

 

   

 

 

   

 

 

   

 

 

 

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Other Operational Information (in thousands):

 

     Three Months Ended      Year Ended  
     September 30,
2011
     October 1,
2010
     September 30,
2011
     October 1,
2010
 

Revenues by Major Component:

           

Technical professional services

   $ 1,596,593       $ 1,268,403       $ 5,886,136       $ 5,113,303   

Field services

     1,126,702         1,074,630         4,495,528         4,802,214   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 2,723,295       $ 2,343,033       $ 10,381,664       $ 9,915,517   
  

 

 

    

 

 

    

 

 

    

 

 

 

Depreciation (pre-tax)

   $ 14,970       $ 16,245       $ 57,620       $ 64,447   
  

 

 

    

 

 

    

 

 

    

 

 

 

Amortization of Intangibles (pre-tax)

     11,257         6,536         37,750         24,048   
  

 

 

    

 

 

    

 

 

    

 

 

 

Pass-through Costs included in Revenues

     556,672         568,748         2,118,530         2,723,295   
  

 

 

    

 

 

    

 

 

    

 

 

 

Capital Expenditures (1)

   $ 15,178       $ 7,846       $ 98,749       $ 49,075   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Capital expenditures for the year ended September 30, 2011 include $49.1 million related to the purchase of a certain office building located in Houston, Texas and the associated equipment and furniture.

Selected Balance Sheet and Backlog Information (in thousands):

 

     September 30,
2011
     October 1,
2010
 

Balance Sheet Information:

     

Cash and cash equivalents

   $ 905,633       $ 938,842   

Working capital (2)

     1,099,308         1,527,589   

Total debt

     568,073         79,908   

Stockholders’ equity

     3,323,385         2,864,928   
  

 

 

    

 

 

 

Backlog Information:

     

Technical professional services

   $ 9,100,100       $ 7,588,900   

Field services

     5,189,700         5,613,100   
  

 

 

    

 

 

 

Total

   $ 14,289,800       $ 13,202,000   
  

 

 

    

 

 

 

 

(2) Working capital in fiscal 2011 was affected by borrowings under our $290.0 million, unsecured, revolving credit facility classified previously as long-term debt becoming current during the fiscal year (the facility expires in the third quarter of fiscal 2012).

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The following table reconciles the Company’s fiscal 2010 consolidated results of operations presented in accordance with U.S. GAAP to its fiscal 2010 consolidated results of operations excluding the effects of the SIVOM Judgment (in thousands, except earns per share). Although any fiscal 2010 information that excludes the effects of the SIVOM Judgment is non-U.S. GAAP, it is presented because Management believes such information provides a better point of reference for assessing the Company’s current financial performance and operating trends:

 

Financial Statement Element:

   Results
as Presented
(U.S. GAAP)
    Effects of
the SIVOM
Judgment
    Results
Before the
Effects of
the SIVOM
Judgment
(non- U.S.
GAAP)
 

Revenues

   $ 9,915,517      $ (25,894   $ 9,941,411   

Direct costs of contracts

   $ (8,582,912   $ (58,641   $ (8,524,271

Selling, general, and administrative expenses

   $ (932,522   $ 6,363        (938,885

Net interest income (expense)

   $ (5,083   $ (8,725   $ 3,642   

Earnings (loss) before income taxes

   $ 391,934      $ (86,897   $ 478,831   

Income tax (expense) benefit

   $ (145,647   $ 26,620      $ (172,267

Net earnings (loss) attributable to Jacobs

   $ 245,974      $ (60,277   $ 306,251   

Diluted earnings (loss) per share

   $ 1.96      $ (0.48   $ 2.44   

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