Press Release Nov 12, 2012

Jacobs Engineering Group Inc. Reports Earnings for Fiscal 2012

Solid Performance Across Markets Contributes to Double Digit Profit Growth

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PASADENA, Calif. -- (BUSINESS WIRE) -- Nov. 12, 2012 -- Jacobs Engineering Group Inc. (NYSE:JEC) announced today its financial results for the fiscal year and fourth quarter ended September 28, 2012.

Fiscal 2012 and Fourth Quarter Fiscal 2012 Highlights (including a one-time gain):

  • Net earnings for fiscal 2012 of $379 million;
  • Diluted EPS for fiscal 2012 of $2.94;
  • Net earnings for the fourth quarter of fiscal 2012 of $107.4 million;
  • Diluted EPS for the fourth quarter of fiscal 2012 of $0.83; and,
  • Backlog at September 28, 2012 of $15.9 billion.

Jacobs reported 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 its fiscal year ended September 28, 2012. This compares to net earnings of $331 million, or $2.60 per diluted share, on revenues of $10.38 billion for fiscal 2011.

For the fourth quarter of fiscal 2012, Jacobs reported 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. This rose from net earnings of $94.3 million, or $0.74 per diluted share, on revenues of $2.72 billion for the same period in fiscal 2011.

Included in the Company's results for the fiscal year and quarter ended September 28, 2012 is 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 11.3%, totaling $15.9 billion at September 28, 2012, including a technical professional services component of $10.3 billion. This compares to total backlog and technical professional services backlog of $14.3 billion and $9.1 billion, respectively, at September 30, 2011.

Commenting on the results for the year, Jacobs President and CEO Craig L. Martin stated, "Fiscal 2012 was a good year. Our business grew across most markets, demonstrating that our diversification strategy and core client focus gives us the ability to excel even in challenging economic times. Earnings grew by over 13%, and fiscal 2013 looks promising."

Commenting on the Company's earnings outlook for fiscal 2013, Jacobs Chief Financial Officer John W. Prosser, Jr. stated, "Based on our strong backlog and the increasing opportunities we see as we finish calendar 2012, we are initiating guidance for fiscal 2013 earnings per share within a range of $3.00 to $3.50."

Jacobs is hosting a conference call at 11:00 a.m. Eastern Time on Tuesday, November 13, 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   Year Ended
      September 28,
2012		   September 30,
2011		   September 28,
2012		   September 30,
2011
Revenues     $ 2,786,285     $ 2,723,295     $ 10,893,778     $ 10,381,664  
Costs and Expenses:                  
Direct costs of contracts     (2,339,623 )   (2,296,733 )   (9,166,789 )   (8,822,171 )
Selling, general, and administrative expenses     (279,045 )   (278,658 )   (1,130,916 )   (1,040,575 )
Operating Profit     167,617     147,904     596,073     518,918  
Other Income (Expense):                  
Interest income     766     1,527     6,049     4,917  
Interest expense     (2,538 )   (2,684 )   (11,686 )   (8,799 )
Gain on sale of intellectual property, net     6,292     -     6,292     -  
Miscellaneous income (expense), net     (2,041 )   (1,591 )   (3,392 )   1,625  
Total other income (expense), net     2,479     (2,748 )   (2,737 )   (2,257 )
Earnings Before Taxes     170,096     145,156     593,336     516,661  
Income Tax Expense     (59,014 )   (49,909 )   (202,382 )   (181,440 )
Net Earnings of the Group     111,082     95,247     390,954     335,221  

Net Earnings Attributable to

Noncontrolling Interests

     (3,671 )   (967 )   (12,000 )   (4,192 )
Net Earnings Attributable to Jacobs     $ 107,411     $ 94,280     $ 378,954     $ 331,029  
Earnings Per Share ("EPS"):                  
Basic     $ 0.84     $ 0.75     $ 2.97     $ 2.63  
Diluted     $ 0.83     $ 0.74     $ 2.94     $ 2.60  
                   
Weighted Average Shares Used to Calculate EPS:                  
Basic     128,338     126,463     127,644     125,686  
Diluted     129,252     127,537     128,692     127,235  
                           
                           
           

Other Operational Information (in thousands):
           
           
      Three Months Ended   Year Ended
      September 28,
2012		   September 30,
2011		   September 28,
2012		   September 30,
2011
Revenues by Major Component:                  
Technical professional services     $ 1,632,514     $ 1,596,593     $ 6,465,450     $ 5,886,136
Field services     1,153,771     1,126,702     4,428,328     4,495,528
Total     $ 2,786,285     $ 2,723,295     $ 10,893,778     $ 10,381,664
                   
Depreciation (pre-tax)     $ 15,867     $ 14,970     $ 58,890     $ 57,620
Amortization of Intangibles (pre-tax)     $ 9,776     $ 11,257     $ 41,934     $ 37,750
Pass-Through Costs Included in Revenues     $ 629,213     $ 556,672     $ 2,328,401     $ 2,118,530
                   
Capital Expenditures     $ 32,269     $ 15,178     $ 102,574     $ 98,749
                                 
                         

Selected Balance Sheet and Backlog Information (in thousands):
                         
                         
                    September 28,
2012		   September 30,
2011(1)
              Balance Sheet Information:          
              Cash and cash equivalents     $ 1,032,457     $ 905,633
              Working capital     1,865,025     1,011,565
              Total debt     528,260     568,073
              Total Jacobs stockholders' equity     3,722,473     3,312,988
                         
              Backlog Information:          
              Technical professional services     $ 10,266,500     $ 9,100,100
              Field services     5,643,200     5,189,700
              Total     $ 15,909,700     $ 14,289,800
                               
     
                   

(1) The September 30, 2011 Consolidated Balance Sheet has been revised to reflect certain purchase price adjustments identified during the measurement period and recorded after the balance sheet date.

 

Source: Jacobs Engineering Group Inc.

Jacobs Engineering Group Inc.
John W. Prosser, Jr.
Executive Vice President, Finance and Administration
626.578.6803