Press Release
Jul 27, 2009
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PASADENA, Calif., July 27 /PRNewswire-FirstCall/ -- Jacobs Engineering Group Inc. (NYSE: JEC) announced today its financial results for the third quarter of fiscal 2009 ended June 30, 2009.
Third Quarter Fiscal 2009 Highlights:
- Net earnings for the quarter of $94.9 million;
- Diluted EPS for the quarter of $0.76;
- Net earnings for the nine months ended June 30, 2009 of $320.5 million;
- Diluted EPS for the nine months ended June 30, 2009 of $2.58, and
- Backlog of $15.8 billion
Jacobs reported today net earnings of $94.9 million, or $0.76 per diluted share, on revenues of $2.7 billion for its third quarter of fiscal 2009 ended June 30, 2009. This compares to net earnings of $108.7 million, or $0.87 per diluted share, on revenues of $2.9 billion for the corresponding period last year.
For the nine months ended June 30, 2009, Jacobs reported net earnings of $320.5 million, or $2.58 per diluted share, on revenues of $8.9 billion. This compares to net earnings of $306.4 million, or $2.46 per diluted share, on revenues of $8.1 billion for the same period in fiscal 2008.
Included in the Company's results of operations for the nine months ended June 30, 2008 is an after-tax gain of $5.4 million, or $0.04 per diluted share, from the sale, in the first quarter of fiscal 2008, of its interest in a company that provides specialized operations and maintenance services.
Jacobs also announced backlog totaling $15.8 billion at June 30, 2009, including a technical professional services component of $8.4 billion. This compares to total backlog and technical professional services backlog of $16.6 billion and $8.1 billion, respectively, at the end of last quarter. During the quarter ended June 30, 2009, approximately $665 million was removed from backlog as a result of project cancellations ($300 million) and a shift of pass-through costs to the owners' responsibility ($365 million). All but $20 million of the reduction came out of field services backlog.
Commenting on the results for the third quarter, Jacobs President and CEO Craig L. Martin stated, "While our public sector markets - led by national government programs - remain good, our growth there was insufficient to offset declines in our private sector markets. Consequently, our results for the quarter were disappointing. The market remains uncertain, with economic conditions, oil prices, and business confidence reflecting that uncertainty. Our business model positions us well in challenging times, so we expect to capitalize on the opportunities these times create."
Commenting on the Company's earnings outlook for the remainder of fiscal 2009, Jacobs Chief Financial Officer John W. Prosser, Jr. stated, "As we approach our year-end we are narrowing our guidance for fiscal 2009 to a range of $3.10 to $3.35 which is within the lower portion of our previously issued guidance of $3.10 to $3.50."
Jacobs is hosting a conference call at 11:00 a.m. Eastern time on Tuesday, July 28, 2009, which they are webcasting live on the Internet at www.jacobs.com. The taped teleconference is accessible from any touch-tone phone and will be available 24 hours a day through August 5, 2009. The dial-in number for the audio replay is 706.645.9291 (ID 18940259).
Jacobs, with annual revenues exceeding $12 billion, 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 2008 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.
For additional information contact:
John W. Prosser, Jr.
Executive Vice President, Finance and Administration
626.578.6803
Financial Highlights:
Results of Operations (in thousands, except per-share data):
Three Months Ended Nine Months Ended
June 30 June 30
------- -------
2009 2008 2009 2008
---- ---- ---- ----
Revenues $2,706,724 $2,918,927 $8,914,829 $8,055,538
Costs and Expenses:
Direct costs of
contracts (2,334,861) (2,467,283) (7,701,923) (6,781,330)
Selling, general,
and administrative
expenses (225,189) (282,773) (714,476) (809,929)
------------------ -------- -------- -------- --------
Operating Profit 146,674 168,871 498,430 464,279
Other (Expense) Income:
Interest income 2,465 3,359 9,656 11,237
Interest expense (402) (987) (2,428) (2,857)
Miscellaneous (expense)
income, net (456) (1,436) (4,818) 6,027
----------------------- ---- ------ ------ -----
Total other income, net 1,607 936 2,410 14,407
----------------------- ----- --- ----- ------
Earnings Before Taxes 148,281 169,807 500,840 478,686
Income Tax Expense (53,381) (61,130) (180,303) (172,327)
------------------ ------- ------- -------- --------
Net Earnings $94,900 $108,677 $320,537 $306,359
============ ======= ======== ======== ========
Earnings Per Share ("EPS"):
Basic $0.77 $0.89 $2.61 $2.54
Diluted $0.76 $0.87 $2.58 $2.46
======= ===== ===== ===== =====
Weighted Average Shares
Used to Calculate EPS:
Basic 122,953 121,474 122,593 120,833
Diluted 124,748 124,624 124,359 124,304
======= ======= ======= ======= =======
Other Operational Information (in thousands):
Three Months Ended Nine Months Ended
June 30 June 30
------- -------
2009 2008 2009 2008
---- ---- ---- ----
Revenues by Major
Component:
Technical
professional
services $1,346,100 $1,545,603 $4,266,437 $4,349,957
Field services 1,360,624 1,373,324 4,648,392 3,705,581
-------------- --------- --------- --------- ---------
Total $2,706,724 $2,918,927 $8,914,829 $8,055,538
===== ========== ========== ========== ==========
Depreciation
(pre-tax) $16,911 $17,047 $50,081 $46,384
============= ======= ======= ======= =======
Capital Expenditures $10,469 $43,169 $46,778 $87,031
==================== ======= ======= ======= =======
Selected Balance Sheet Information (in thousands):
At June 30
----------
2009 2008
---- ----
Balance Sheet Information:
Cash and cash equivalents $1,059,470 $536,223
Working capital 1,466,729 1,096,775
Total debt 47,804 39,418
Stockholders' equity 2,614,650 2,232,811
==================== ========= =========
Selected Backlog Information (in thousands):
June 30, 2009 March 31, 2009
------------- --------------
Backlog Information:
Technical professional services $8,390,200 $8,116,800
Field services 7,413,500 8,515,100
-------------- --------- ---------
Total $15,803,700 $16,631,900
===== =========== ===========
(Logo: http://www.newscom.com/cgi-bin/prnh/20090109/JACOBSEGLOGO)
SOURCE: Jacobs Engineering Group Inc.
CONTACT:
John W. Prosser, Jr.,
Executive Vice President, Finance and Administration of Jacobs Engineering Group Inc.,
+1-626-578-6803
Web Site: http://www.jacobs.com