Press Release Nov 18, 2013

Jacobs Reports Record Net Earnings for Fiscal 2013

Solid Performance Drives Double Digit Profit Growth

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PASADENA, Calif.--(BUSINESS WIRE)-- Jacobs Engineering Group Inc. (NYSE:JEC) announced today its financial results for the fiscal year and fourth quarter ended September 27, 2013.

Fiscal 2013 and Fourth Quarter Fiscal 2013 Highlights:

  • Net earnings for fiscal 2013 of $423.1 million;
  • Diluted EPS for fiscal 2013 of $3.23;
  • Net earnings for the fourth quarter of fiscal 2013 of $110.8 million;
  • Diluted EPS for the fourth quarter of fiscal 2013 of $0.84; and,
  • Backlog at September 27, 2013 of $17.2 billion.

Jacobs reported net earnings of $423.1 million, or $3.23 per diluted share, on revenues of $11.8 billion for its fiscal year ended September 27, 2013. This compares to net earnings of $379 million, or $2.94 per diluted share ($375 million, or $2.91 per diluted share excluding a one-time gain), on revenues of $10.89 billion for fiscal 2012.

For the fourth quarter of fiscal 2013, Jacobs reported net earnings of $110.8 million, or $0.84 per diluted share, on revenues of $3.14 billion. This rose from net earnings of $107.4 million, or $0.83 per diluted share ($103.4 million, or $0.80 per diluted share excluding a one-time gain), on revenues of $2.79 billion for the same period in fiscal 2012.

Included in the Company's results for the fiscal year and quarter ended September 28, 2012 was a one-time, after-tax gain of $4.0 million, or $0.03 per diluted share, related to the sale of the Company's intellectual property for iron ore pelletizing and other related assets.

Jacobs also announced that backlog grew by 8.2%, totaling $17.2 billion at September 27, 2013, including a technical professional services component of $11.1 billion. This compares to total backlog and technical professional services backlog of $15.9 billion and $10.3 billion, respectively, at September 28, 2012.

Commenting on the results for the year, Jacobs President and CEO Craig L. Martin stated, “It was a record year for net earnings at Jacobs. We grew organically by ten percent and both our business and our opportunities continue to grow. We’re discovering new and innovative ways to add sustainable value to our clients’ projects around the world. Our backlog is good, and we’re positive about FY2014.”

Adding to the discussion on the Company's earnings outlook for fiscal 2014, Jacobs Chief Financial Officer John W. Prosser, Jr. stated, “While we expect some weakness in our first quarter, our initial guidance for fiscal 2014 earnings per share is a range of $3.35 to $3.90. The guidance includes the anticipated contribution from the SKM transaction which is projected to close in December 2013.”

Jacobs is hosting a conference call at 11:00 a.m. Eastern Time on Tuesday, November 19, 2013, 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 release that are not based on historical fact are forward-looking statements. We base these forward-looking statements on management’s current expectations as well as currently available competitive, financial and economic data. Forward-looking statements, however, are inherently uncertain and you should not place undue reliance on them. There are a variety of factors that could cause business conditions and actual results to differ materially from these forward-looking statements. For a description of some of the factors that may occur that could cause actual conditions and results to differ from these forward-looking statements please refer to our 2012 Form 10-K, and in particular the discussions contained under Items 1 - Business, 1A - Risk Factors, 3 - Legal Proceedings, and 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations. The statements regarding the transaction with Sinclair Knight Merz are also forward-looking statements and there is no certainty that the transaction will close or that the expected results will occur. 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 27,
2013		       September 28,
2012		           September 27,
2013		       September 28,
2012
Revenues       $ 3,142,656         $ 2,786,285             $ 11,818,376         $ 10,893,778  
Costs and Expenses:                                    
Direct costs of contracts       (2,667,965 )       (2,339,623 )           (9,976,057 )       (9,166,789 )
Selling, general, and administrative expenses       (299,543 )       (279,045 )           (1,173,340 )       (1,130,916 )
Operating Profit       175,148         167,617             668,979         596,073  
Other Income (Expense):                                    
Interest income       1,874         766             5,395         6,049  
Interest expense       (3,391 )       (2,538 )           (12,906 )       (11,686 )
Gain on sale of intellectual property, net       —         6,292             —         6,292  
Miscellaneous income (expense), net       1,275         (2,041 )           80         (3,392 )
Total other income (expense), net       (242 )       2,479             (7,431 )       (2,737 )
Earnings Before Taxes       174,906         170,096             661,548         593,336  
Income Tax Expense       (58,425 )       (59,014 )           (221,366 )       (202,382 )
Net Earnings of the Group       116,481         111,082             440,182         390,954  

Net Earnings Attributable to Noncontrolling Interests

       (5,670 )       (3,671 )           (17,089 )       (12,000 )
Net Earnings Attributable to Jacobs       $ 110,811         $ 107,411             $ 423,093         $ 378,954  
Earnings Per Share (“EPS”):                                    
Basic       $ 0.85         $ 0.84             $ 3.27         $ 2.97  
Diluted       $ 0.84         $ 0.83             $ 3.23         $ 2.94  
                                     
Weighted Average Shares Used to Calculate EPS:                                    
Basic       129,896         128,338             129,288         127,644  
Diluted       132,013         129,252             130,945         128,692  
                                             
                                             
                     

Other Operational Information (in thousands):
                     
        Three Months Ended           Year Ended
        September 27,
2013		       September 28,
2012		           September 27,
2013		       September 28,
2012
Revenues by Major Component:                                    
Technical professional services       $ 1,657,577         $ 1,632,514             $ 6,683,611         $ 6,465,450
Field services       1,485,079         1,153,771             5,134,765         4,428,328
Total       $ 3,142,656         $ 2,786,285             $ 11,818,376         $ 10,893,778
                                     
Depreciation (pre-tax)       $ 20,061         $ 15,867             $ 69,889         $ 58,890
Amortization of Intangibles (pre-tax)       $ 6,658         $ 9,776             $ 28,985         $ 41,934
Pass-Through Costs Included in Revenues       $ 830,090         $ 629,213             $ 2,624,838         $ 2,328,401
                                     
Capital Expenditures       $ 35,750         $ 32,269             $ 127,270         $ 102,574
                                                   
                                                   
                                     

Selected Balance Sheet and Backlog Information (in thousands):
                                     
                  September 27,
2013		                 September 28,
2012
          Balance Sheet Information:                          
          Cash and cash equivalents       $ 1,256,405                   $ 1,032,457
          Working capital       2,151,939                   1,865,025
          Total debt       437,868                   528,260
          Total Jacobs stockholders' equity       4,213,097                   3,722,473
                                     
          Backlog Information:                          
          Technical professional services       $ 11,118,400                   $ 10,266,500
          Field services       6,099,500                   5,643,200
          Total       $ 17,217,900                   $ 15,909,700
                                           

 

Source: Jacobs Engineering Group Inc.

Jacobs Engineering Group Inc.

John W. Prosser, Jr.

Executive Vice President, Finance and Administration

626.578.6803