Jacobs Engineering Group Inc. Reports Record Earnings and Backlog for the Third Quarter of Fiscal 2008

PASADENA, Calif., July 21 /PRNewswire-FirstCall/ -- Jacobs Engineering Group Inc. (NYSE: JEC) announced today its financial results for the third quarter of fiscal 2008 ended June 30, 2008.

Third Quarter Fiscal 2008 Highlights:

-- Diluted EPS for the third quarter grew to $0.87, a 42.6% increase over the corresponding quarter last year

-- Diluted EPS for the nine months ended June 30, 2008 grew to $2.46, a 47.3% increase over the corresponding period last year

-- Net earnings for the third quarter rose to $108.7 million, a 45.4% increase over the corresponding quarter last year

-- Net earnings for the nine months ended June 30, 2008 rose to $306.4 million, a 50.7% increase over the corresponding period last year

-- Backlog increased $7.3 billion, or 65.8%, from June 30, 2007 to $18.3 billion

Jacobs reported today record net earnings of $108.7 million, or $0.87 per diluted share, on revenues of $2.9 billion for its third quarter of fiscal 2008 ended June 30, 2008. This compares to net earnings of $74.8 million, or $0.61 per diluted share, on revenues of $2.1 billion for the same period last year.

For the nine months ended June 30, 2008, Jacobs reported net earnings of $306.4 million, or $2.46 per diluted share, on revenues of $8.1 billion. This compares to net earnings of $203.2 million, or $1.67 per diluted share, on revenues of $6.2 billion for the same period in fiscal 2007.

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 of its interest in a company that provides specialized operations and maintenance services. The gain was recognized in the first quarter of fiscal 2008.

Jacobs also announced backlog totaling $18.3 billion at June 30, 2008, including a technical professional services component of $8.0 billion. This compares to total backlog and technical professional services backlog of $11.0 billion and $5.9 billion, respectively, at June 30, 2007. Contributing to the increase in backlog during the quarter was approximately $1.0 billion relating to a significant increase in scope of services for an upstream oil and gas project being performed in North America.

Commenting on the results for the third quarter, Jacobs President and CEO Craig L. Martin stated, "Our business continues to be very good. Our company performed well in the third quarter and our backlog reached a new, record level. Most of our markets remain strong, so the outlook for the fourth quarter and beyond is also good."

Also commenting on the results for the third quarter and on the Company's earnings outlook for the remainder of fiscal 2008, Jacobs Chief Financial Officer John W. Prosser, Jr. stated, "Considering the strong quarter we just completed and the growth in backlog, we are increasing our earnings per share guidance for fiscal 2008 to a range of $3.15 to $3.40, inclusive of the one-time gain recognized in the first quarter."

Jacobs is hosting a conference call at 11:00 a.m. Eastern time on Tuesday, July 22, 2008, which they are webcasting live on the Internet at http://www.jacobs.com. The taped teleconference is accessible from any touch-tone phone and will be available 24 hours a day through July 29, 2008. The dial-in number for the audio replay is 706.645.9291 (confirmation code 54660972).

Jacobs, with over 55,000 employees and revenues exceeding $10.0 billion, provides technical, professional, and construction services globally.

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 2007 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 30                 June 30
                                    2008        2007        2008       2007
    Revenues                   $2,918,927  $2,083,689  $8,055,538  $6,193,901
    Costs and Expenses:
      Direct costs of
       contracts               (2,467,283) (1,767,073) (6,781,330) (5,315,011)
      Selling, general, and
       administrative expenses   (282,773)   (200,912)   (809,929)   (566,323)

    Operating Profit              168,871     115,704     464,279     312,567

    Other Income (Expense):
      Interest income               3,359       4,590      11,237      14,123
      Interest expense               (987)     (2,175)     (2,857)     (5,723)
      Miscellaneous income
       (expense), net              (1,436)     (1,256)      6,027      (3,340)
         Total other income, net      936       1,159      14,407       5,060

    Earnings Before Taxes         169,807     116,863     478,686     317,627

    Income Tax Expense            (61,130)    (42,113)   (172,327)   (114,389)

    Net Earnings                 $108,677     $74,750    $306,359    $203,238

    Earnings Per Share ("EPS"):
      Basic                         $0.89       $0.63       $2.54       $1.72
      Diluted                       $0.87       $0.61       $2.46       $1.67

    Weighted Average Shares Used
     to Calculate EPS:
      Basic                       121,474     118,961     120,833     118,258
      Diluted                     124,624     122,501     124,304     121,912



    Other Operational Information (in thousands):

                                  Three Months Ended        Nine Months Ended
                                        June 30                  June 30
                                    2008        2007        2008         2007
    Revenues by Major Component:
        Technical professional
         services               $1,545,603  $1,146,406  $4,349,957  $3,203,766
        Field services           1,373,324     937,283   3,705,581   2,990,135
        Total                   $2,918,927  $2,083,689  $8,055,538  $6,193,901

    Depreciation (pre-tax)         $17,047     $13,298     $46,384     $36,637

    Capital Expenditures           $43,169     $13,522     $87,031     $48,066



    Selected Balance Sheet and Backlog Information (in thousands):

                                                          At June 30
                                                    2008              2007
    Balance Sheet Information:
        Cash and cash equivalents                 $536,223          $473,114
        Working capital                          1,096,775           919,591
        Total debt                                  39,418            65,602
        Stockholders' equity                     2,232,811         1,674,579

    Backlog Information:
        Technical professional services         $7,991,100        $5,909,600
        Field services                          10,291,600         5,118,100
        Total                                  $18,282,700       $11,027,700

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