Press Release
Nov 3, 2008
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PASADENA, Calif., Nov. 3 /PRNewswire-FirstCall/ -- Jacobs Engineering Group Inc. (NYSE: JEC) announced today its financial results for the fiscal year and fourth quarter ended September 30, 2008.
Fiscal 2008 and Fourth Quarter Highlights:
- Backlog increased $3.1 billion, or 22.9%, from September 30, 2007 to $16.7 billion
- Fiscal 2008 net earnings increased $133.6 million, or 46.5%, from fiscal 2007 to $420.7 million
- Fiscal 2008 diluted EPS increased 43.8% to $3.38 per share
- Fourth quarter net earnings increased $30.5 million, or 36.3%, from last year to $114.4 million
- Fourth quarter diluted EPS increased 35.3% from last year to $0.92
Jacobs reported today record net earnings of $420.7 million, or $3.38 per diluted share, on revenues of $11.3 billion for its fiscal year ended September 30, 2008. This compares to net earnings of $287.1 million, or $2.35 per diluted share, on revenues of $8.5 billion for fiscal 2007.
Included in the Company's results of operations for the fiscal year ended September 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.
For the fourth quarter of fiscal 2008, Jacobs reported net earnings of $114.4 million, or $0.92 per diluted share, on revenues of $3.2 billion. This compares to net earnings of $83.9 million, or $0.68 per diluted share, on revenues of $2.3 billion for the fourth quarter of fiscal 2007.
Jacobs also announced backlog totaling $16.7 billion at September 30, 2008, including a technical professional services component of $8.1 billion. This compares to total backlog and technical professional services backlog of $13.6 billion and $6.2 billion, respectively, at September 30, 2007.
Commenting on the results for the year, Jacobs President and CEO Craig L. Martin stated, "In spite of significant challenges created by the recent hurricanes in the Gulf Coast, our team produced excellent results in the fourth quarter and for the year. Our one disappointment this quarter came from a breakdown in our relationship with a customer on a project in the Canadian oil sands. Because of the breakdown, the customer is transferring future phases of the project to other contractors. As a result, we removed $2.36 billion from our backlog for this project, which would have been performed over the next three fiscal years. Of this, $2.27 billion was in field services, substantially in the form of 'pass-thru' revenues. Our Canadian business remains healthy and we are working diligently to rebuild our relationship with this customer."
"Our sales in the fourth quarter remained strong. Our business is solid and prospect quality remains high. As we look ahead, FY09 looks like another good year."
Commenting on the Company's earnings outlook for fiscal 2009, Jacobs Chief Financial Officer John W. Prosser, Jr. stated, "The outlook for 2009 is good and should track inline with our long-term goals. Our initial guidance for 2009 earnings per share is a range of $3.55 to $4.05."
Jacobs is hosting a conference call at 11:00 a.m. Eastern time on Tuesday, November 4, 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 November 11, 2008. The dial-in number for the audio replay is 800.642.1687 or 706.645.9291 (ID 70369619).
Jacobs, with over 57,000 employees and revenues exceeding $11.0 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 Year Ended
September 30 September 30
2008 2007 2008 2007
Revenues $3,196,621 $2,280,069 $11,252,159 $8,473,970
Costs and Expenses:
Direct costs of
contracts (2,736,343) (1,947,610) (9,517,673) (7,262,621)
Selling, general,
and administrative
expenses (281,498) (203,070) (1,091,427) (769,393)
Operating Profit 178,780 129,389 643,059 441,956
Other Income (Expense):
Interest income 4,210 5,641 15,447 19,764
Interest expense (1,557) (2,296) (4,414) (8,019)
Miscellaneous income
(expense), net (2,708) (1,719) 3,319 (5,059)
Total other income
(expense), net (55) 1,626 14,352 6,686
Earnings Before Taxes 178,725 131,015 657,411 448,642
Income Tax Expense (64,342) (47,123) (236,669) (161,512)
Net Earnings $114,383 $83,892 $420,742 $287,130
Earnings Per Share ("EPS"):
Basic $0.94 $0.70 $3.47 $2.42
Diluted $0.92 $0.68 $3.38 $2.35
Weighted Average Shares
Used to Calculate EPS:
Basic 121,867 119,504 121,083 118,559
Diluted 124,559 123,194 124,357 122,226
Other Operational Information (in thousands):
Three Months Ended Year Ended
September 30 September 30
2008 2007 2008 2007
Revenues by Major Component:
Technical professional
services $1,548,722 $1,221,529 $5,898,679 $4,425,295
Field services 1,647,899 1,058,540 5,353,480 4,048,675
Total $3,196,621 $2,280,069 $11,252,159 $8,473,970
Depreciation (pre-tax) $17,341 $13,075 $63,725 $49,712
Capital Expenditures $27,755 $16,554 $114,786 $64,620
Selected Balance Sheet and Backlog Information (in thousands):
At September 30
2008 2007
Balance Sheet Information:
Cash and cash equivalents $604,420 $613,352
Working capital 1,173,238 1,001,644
Total debt 56,642 40,979
Stockholders' equity 2,245,147 1,843,662
Backlog Information:
Technical professional services $8,085,200 $6,188,500
Field services 8,611,400 7,397,300
Total $16,696,600 $13,585,800
(Logo: http://www.newscom.com/cgi-bin/prnh/20051021/LAJACOBSEGLOGO)
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