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

July 30, 2012

PASADENA, Calif., July 30, 2012 /PRNewswire/ — Jacobs Engineering Group Inc. (NYSE:JEC) announced today its financial results for the third quarter of fiscal 2012 ended June 29, 2012.

Third Quarter Fiscal 2012 Highlights:

  • Net earnings for the quarter of $97.9 million;
  • Diluted EPS for the quarter of $0.76;
  • Net earnings for the nine months ended June 29, 2012 of $271.5 million;
  • Diluted EPS for the nine months ended June 29, 2012 of $2.11; and,
  • Backlog at June 29, 2012 of $15.6 billion.

Jacobs reported today net earnings of $97.9 million, or $0.76 per diluted share, on revenues of $2.77 billion for its third quarter of fiscal 2012 ended June 29, 2012. This compares to net earnings of $90.7 million, or $0.71 per diluted share, on revenues of $2.74 billion for the third quarter of fiscal 2011 ended July 1, 2011.

For the nine months ended June 29, 2012, Jacobs reported net earnings of $271.5 million, or $2.11 per diluted share, on revenues of $8.11 billion. This compares to net earnings of $236.7 million, or $1.86 per diluted share, on revenues of $7.66 billion for the same period in fiscal 2011.

Jacobs also announced today backlog totaling $15.6 billion at June 29, 2012, including a technical professional services component of $10.2 billion. This compares to total backlog and technical professional services backlog of $14.0 billion and $8.7 billion, respectively, at July 1, 2011.

Commenting on the results for the second quarter, Jacobs President and CEO Craig L. Martin stated, “The third quarter was very much in line with our expectations. Gross margins increased, we managed our SG&A very well, and backlog continues to grow. Our new business outlook is robust, so we remain positive about both our fourth quarter and fiscal 2013.”

Commenting on the Company’s earnings outlook for the remainder of fiscal 2012, Jacobs Chief Financial Officer John W. Prosser, Jr. stated, “Based on our third quarter results and the current business outlook, we are maintaining our guidance at $2.80 To $3.00 per share for fiscal 2012.”

Jacobs is hosting a conference call at 11:00 a.m. Eastern Time on Tuesday, July 31, 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                             Nine Months Ended
                                                       ------------------                             -----------------
                                               June 29,      July 1,                 June 29,   July 1,
                                                     2012         2011                    2012       2011
                                                     ----         ----                    ----       ----
    Revenues                                                $2,772,874                         $2,744,178                            $8,107,493 $7,658,369
    Costs and Expenses:
    Direct costs of contracts                 (2,339,793)               (2,331,466)                        (6,827,166)  (6,525,438)
    Selling, general, and
     administrative expenses                     (279,715)                 (273,332)                          (851,871)    (761,917)
                                                 --------                  --------                           --------     --------
    Operating Profit                              153,366                   139,380                            428,456      371,014
    Other Income (Expense):
    Interest income                                 2,325                     1,317                              5,283        3,390
    Interest expense                               (2,990)                   (2,568)                            (9,148)      (6,115)
    Miscellaneous income
     (expense), net                                (1,330)                    3,172                             (1,351)       3,216
    --------------------                           ------                     -----                             ------        -----
    Total other income
     (expense), net                                (1,995)                    1,921                             (5,216)         491
    ------------------                             ------                     -----                             ------          ---
    Earnings Before Taxes                         151,371                   141,301                            423,240      371,505
    Income Tax Expense                            (50,381)                  (49,365)                          (143,368)    (131,531)
    Net Earnings of the Group                     100,990                    91,936                            279,872      239,974
    -------------------------                     -------                    ------                            -------      -------
    Net Earnings Attributable
     to                                            (3,090)                   (1,260)                            (8,329)      (3,225)
      Noncontrolling Interests
      ------------------------
    Net Earnings Attributable
     to Jacobs                                                 $97,900                            $90,676                              $271,543   $236,749
    =========================                                  =======                            =======                              ========   ========
    Earnings Per Share ("EPS"):
    Basic                                                        $0.77                              $0.72                                 $2.13      $1.89
    Diluted                                                      $0.76                              $0.71                                 $2.11      $1.86
    =======                                                      =====                              =====                                 =====      =====

    Weighted Average Shares Used to Calculate
     EPS:
    Basic                                         127,922                   125,903                            127,422      125,438
    Diluted                                       128,820                   127,578                            128,504      127,230
    =======                                       =======                   =======                            =======      =======
    Other Operational Information (in thousands):
    ---------------------------------------------

                                                         Three Months Ended                       Nine Months Ended
                                                         ------------------                       -----------------
                                                  June 29,     July 1,             June 29,    July 1,
                                                       2012        2011                 2012       2011
                                                       ----        ----                 ----       ----
    Revenues by Major Component:
    Technical professional services                          $1,640,157                      $1,593,516                       $4,832,936 $4,289,543
    Field services                                1,132,717              1,150,662                       3,274,557  3,368,826
    --------------                                ---------              ---------                       ---------  ---------
    Total                                                    $2,772,874                      $2,744,178                       $8,107,493 $7,658,369
    =====                                                    ==========                      ==========                       ========== ==========

    Depreciation (pre-tax)                                      $14,535                         $14,242                          $43,023    $42,650
    =====================                                       =======                         =======                          =======    =======
    Amortization of Intangibles (pre-tax)                       $10,138                         $10,934                          $32,158    $26,493
    ====================================                        =======                         =======                          =======    =======
    Pass-Through Costs Included in Revenues                    $583,136                        $486,010                       $1,699,188 $1,561,858
    =======================================                    ========                        ========                       ========== ==========

    Capital Expenditures                                        $32,554                         $66,193                          $70,305    $83,571
    ====================                                        =======                         =======                          =======    =======

    Selected Balance Sheet and Backlog Information (in thousands):
    --------------------------------------------------------------

                                       June 29,     July 1,
                                            2012         2011
                                            ----         ----
    Balance Sheet
     Information:
    Cash and cash
     equivalents                                     $898,588               $773,819
    Working capital                    1,734,293                 994,911
    Total debt                           512,445                 551,198
    Total Jacobs
     stockholders' equity              3,656,686               3,141,843
    =====================              =========               =========

    Backlog Information:
    Technical professional
     services                                     $10,174,900             $8,666,300
    Field services                     5,426,200               5,335,600
    --------------                     ---------               ---------
    Total                                         $15,601,100            $14,001,900
    =====                                         ===========            ===========

(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