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Last updated on April 19, 2014 at 7:50 EDT

Jacobs Engineering Group Inc. Reports Earnings for the Second Quarter of Fiscal 2012

April 30, 2012

PASADENA, Calif., April 30, 2012 /PRNewswire/ — Jacobs Engineering Group Inc. (NYSE:JEC) announced today its financial results for the second quarter of fiscal 2012 ended March 30, 2012.

Second Quarter Fiscal 2012 Highlights:

  • Net earnings for the quarter of $83.9 million;
  • Diluted EPS for the quarter of $0.65;
  • Net earnings for the six months ended March 30, 2012 of $173.6 million;
  • Diluted EPS for the six months ended March 30, 2012 of $1.35; and,
  • Backlog at March 30, 2012 of $15.1 billion.

Jacobs reported today net earnings of $83.9 million, or $0.65 per diluted share, on revenues of $2.70 billion for its second quarter of fiscal 2012 ended March 30, 2012. This compares to net earnings of $80.3 million, or $0.63 per diluted share, on revenues of $2.56 billion for the second quarter of fiscal 2011 ended April 1, 2011.

For the six months ended March 30, 2012, Jacobs reported net earnings of $173.6 million, or $1.35 per diluted share, on revenues of $5.33 billion. This compares to net earnings of $146.1 million, or $1.15 per diluted share, on revenues of $4.91 billion for the same period in fiscal 2011.

Jacobs also announced today backlog totaling $15.1 billion at March 30, 2012, including a technical professional services component of $9.9 billion. This compares to total backlog and technical professional services backlog of $14.0 billion and $8.7 billion, respectively, at April 1, 2011.

Commenting on the results for the second quarter, Jacobs President and CEO Craig L. Martin stated, “While this quarter’s earnings were disappointing, the outlook remains positive. Backlog is up 4.2% sequentially and up 7.8% year-over-year. Our prospects are strong and we anticipate a very good year from a sales perspective.”

Commenting on the Company’s earnings outlook for the remainder of fiscal 2012, Jacobs Chief Financial Officer John W. Prosser, Jr. stated, “Our second quarter results were below expectations. Three factors contributed to the results: first, our SG&A expenses were higher than expected; additionally, several planned turnarounds were deferred until FY13, reducing field services margins; lastly, professional services margins in March were lower than anticipated. As a result, we are revising our guidance for fiscal year 2012 to a range of $2.80 to $3.00 per share.”

Jacobs is hosting a conference call at 11:00 a.m. Eastern Time on Tuesday, May 1, 2012, 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 including those noted in our 2011 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.

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

                                                                                                                                                                                                                                                                                                                                                                                                              Three Months Ended                                                               Six
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Months
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Ended
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        ------------------    ---

                                                                                                                                                                                                                                                                                                                                                   March 30, 2012              April 1, 2011                 March 30, 2012     April 1, 2011
                                                                                                                                                                                                                                                                                                                                                   --------------              -------------                 --------------     -------------
    Revenues                                                                                                                                                                                                                                                                                                                                                       $2,702,851                    $2,558,016                                    $5,334,619        $4,914,191
    Costs and Expenses:
    Direct costs of contracts                                                                                                                                                                                                                                                                                                                          (2,276,647)                (2,168,835)                    (4,487,373)       (4,193,972)
     Selling,
     general,
     and
     administrative
     expenses                                                                                                                                                                                                                                                                                                                                            (293,066)                  (261,166)                      (572,156)         (488,585)
                                                                                                                                                                                                                                                                                                                                                         --------                        ---                            ---               ---
     Operating
     Profit                                                                                                                                                                                                                                                                                                                                               133,138                    128,015                        275,090           231,634
    Other Income (Expense):
    Interest income                                                                                                                                                                                                                                                                                                                                         1,563                      1,149                          2,958             2,073
     Interest
     expense                                                                                                                                                                                                                                                                                                                                               (2,496)                    (2,720)                        (6,158)           (3,547)
     Miscellaneous
     income
     (expense),
     net                                                                                                                                                                                                                                                                                                                                                      110                         37                            (21)               44
    -------                                                                                                                                                                                                                                                                                                                                                   ---                        ---                            ---               ---
    Total
     other
     expense,
     net                                                                                                                                                                                                                                                                                                                                                     (823)                    (1,534)                        (3,221)           (1,430)
    -------                                                                                                                                                                                                                                                                                                                                                  ----                        ---                            ---               ---
     Earnings
     Before
     Taxes                                                                                                                                                                                                                                                                                                                                                132,315                    126,481                        271,869           230,204
    Income
     Tax
     Expense                                                                                                                                                                                                                                                                                                                                              (44,869)                   (45,140)                       (92,987)          (82,166)
    Net
     Earnings
     of the
     Group                                                                                                                                                                                                                                                                                                                                                 87,446                     81,341                        178,882           148,038
    ---------                                                                                                                                                                                                                                                                                                                                              ------                        ---                            ---               ---
    Net
     Earnings
     Attributable
     to                                                                                                                                                                                                                                                                                                                                                    (3,513)                    (1,091)                        (5,239)           (1,965)
      Noncontrolling
       Interests
      --------------
    Net
     Earnings
     Attributable
     to
     Jacobs                                                                                                                                                                                                                                                                                                                                                           $83,933                       $80,250                                      $173,643          $146,073
    =============                                                                                                                                                                                                                                                                                                                                                     =======                       =======                                      ========          ========
    Earnings Per Share
     ("EPS"):
    Basic                                                                                                                                                                                                                                                                                                                                                               $0.66                         $0.64                                         $1.37             $1.17
    Diluted                                                                                                                                                                                                                                                                                                                                                             $0.65                         $0.63                                         $1.35             $1.15
    =======                                                                                                                                                                                                                                                                                                                                                             =====                         =====                                         =====             =====

    Weighted Average Shares Used to Calculate EPS:
    Basic                                                                                                                                                                                                                                                                                                                                                 127,412                    125,402                        127,171           125,198
    Diluted                                                                                                                                                                                                                                                                                                                                               128,726                    127,363                        128,347           127,044
    =======                                                                                                                                                                                                                                                                                                                                               =======                        ===                            ===               ===
    Other Operational Information (in thousands):
    ---------------------------------------------

                                                                                                                                                                                                                                                                                                                                                                         Three Months Ended                                                               Six
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Months
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Ended
                                                                                                                                                                                                                                                                                                                                                                                                                                   ------------------     --

                                                                                                                                                                                                                                                                                                              March 30, 2012              April 1, 2011                 March 30, 2012     April 1, 2011
                                                                                                                                                                                                                                                                                                              --------------              -------------                 --------------     -------------
    Revenues by Major Component:
    Technical professional services                                                                                                                                                                                                                                                                                           $1,654,744                    $1,491,214                                    $3,192,779        $2,696,027
    Field
     services                                                                                                                                                                                                                                                                                                      1,048,107                  1,066,802                      2,141,840         2,218,164
    ---------                                                                                                                                                                                                                                                                                                      ---------                         --                             --                --
    Total                                                                                                                                                                                                                                                                                                                     $2,702,851                    $2,558,016                                    $5,334,619        $4,914,191
    =====                                                                                                                                                                                                                                                                                                                     ==========                      ========                                    ==========          ========

    Depreciation (pre-tax)                                                                                                                                                                                                                                                                                                       $14,627                       $14,209                                       $28,488           $28,408
    =====================                                                                                                                                                                                                                                                                                                        =======                       =======                                       =======           =======
     Amortization
     of
     Intangibles
     (pre-
     tax)                                                                                                                                                                                                                                                                                                                        $10,645                        $9,525                                       $22,020           $15,559
     ============                                                                                                                                                                                                                                                                                                                =======                        ======                                       =======           =======
    Pass-
     Through
     Costs
     Included
     in
     Revenues                                                                                                                                                                                                                                                                                                                   $572,220                      $540,960                                    $1,116,052        $1,075,848
    =========                                                                                                                                                                                                                                                                                                                   ========                      ========                                    ==========          ========

    Capital Expenditures                                                                                                                                                                                                                                                                                                         $17,649                       $10,714                                       $37,751           $17,378
    ====================                                                                                                                                                                                                                                                                                                         =======                       =======                                       =======           =======
    Selected Balance Sheet and Backlog Information (in thousands):
    --------------------------------------------------------------

                                                                                                                                                                              March 30,                       April 1,
                                                                                                                                                                                                                2012      2011
                                                                                                                                                                                                                ----      ----
    Balance Sheet Information:
    Cash and cash equivalents                                                                                                                                        $921,507                   $747,911
    Working capital                                                                                                                                    1,436,251               1,447,190
    Total debt                                                                                                                                           541,163                 434,234
    Total Jacobs stockholders' equity                                                                                                                  3,545,414               3,049,454
    =================================                                                                                                                  =========               =========

    Backlog Information:
    Technical professional services                                                                                                                                $9,906,700                 $8,669,400
    Field services                                                                                                                                     5,189,100               5,336,500
    --------------                                                                                                                                     ---------               ---------
    Total                                                                                                                                                         $15,095,800                $14,005,900
    =====                                                                                                                                                         ===========                ===========

(Logo: http://photos.prnewswire.com/prnh/20110628/LA26838LOGO)

For additional information contact:
John W. Prosser, Jr.
Executive Vice President, Finance and Administration
626.578.6803

SOURCE Jacobs Engineering Group Inc.


Source: PR Newswire