EXHIBIT 99.1 | ||
1111 South Arroyo Parkway 7084 P.O. Box 7084 Pasadena, California 91105-7084 U.S.A. 1.626.578.3500 Fax 1.626.578.6916 | Press Release |
FOR IMMEDIATE RELEASE | January 21, 2004 |
For additional information contact:
John W. Prosser, Jr.
Senior Vice President, Finance and Administration
626.578.6803
Jacobs Engineering Group Inc. Reports Record Earnings
for the First Quarter of Fiscal 2004
PASADENA, CALIF. – Jacobs Engineering Group Inc. (NYSE: JEC) today announced record net earnings of $33.8 million, or $0.59 per diluted share, on revenues of $1.1 billion for the first quarter of fiscal 2004 ended December 31, 2003. This compares to net earnings of $30.1 million, or $0.54 per diluted share, on revenues of $1.2 billion for the first quarter of fiscal 2003.
Jacobs also announced backlog at December 31, 2003 totaling $7.1 billion, including a technical professional services component of $3.5 billion. This compares to total backlog and technical professional services backlog of $6.7 billion and $3.1 billion, respectively, at December 31, 2002.
Commenting on the results for the first quarter of fiscal 2004, Jacobs CEO Noel G. Watson stated, “Fiscal 2004 is off to a good start. Our net earnings were up 12.1% and our earnings per share were up 9.3% from the first quarter of fiscal 2003. Our cash flows remain strong as well. We had another good sales quarter, and the prospects remain strong.”
In commenting on the earnings outlook for fiscal 2004, Jacobs CFO John W. Prosser, Jr. stated, “The Company’s long-term, average growth rate target is 15% per year. However, our earnings guidance for fiscal 2004 is between $2.50 and $2.55 per share.”
Jacobs will host a conference call at 11:00 a.m. Eastern time on Thursday, January 22, 2004, which will be webcast live on the Internet onwww.jacobs.com. The taped teleconference is accessible from any touch-tone phone and will be available 24 hours a day through January 29, 2004. The dial-in number for the audio replay is 719.457.0820 (reference code 139298).
Jacobs, with over 35,000 employees and revenues approaching $5.0 billion, provides technical, professional, and construction services globally.
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Jacobs Engineering Group Inc.
JACOBS | Press Release (Continued)
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Any statements made in this release that are not based on historical fact are forward-looking statements. Any forward-looking statements made in this release represent management’s best judgement as to what may occur in the future. However, Jacobs’ actual outcome and results are not guaranteed and are subject to certain risks, uncertainties and assumptions (“Future Factors”), and may differ materially from what is expressed. For a description of Future Factors that could cause actual results to differ materially from such forward-looking statements, see the discussion under the section “Forward-Looking Statements” included in Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in the Company’s 2003 Annual Report on Form 10-K.
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Financial Highlights:
Results of Operations (in thousands, except per-share data)
Three Months Ended December 31 | ||||||||
2003 | 2002 | |||||||
Revenues | $ | 1,135,129 | $ | 1,218,680 | ||||
Costs and Expenses: | ||||||||
Direct costs of contracts | (972,867 | ) | (1,067,634 | ) | ||||
Selling, general and administrative expenses | (109,844 | ) | (104,203 | ) | ||||
Operating Profit | 52,418 | 46,843 | ||||||
Other (Expense) Income: | ||||||||
Interest income | 960 | 251 | ||||||
Interest expense | (816 | ) | (1,231 | ) | ||||
Miscellaneous (expense) income, net | (562 | ) | 506 | |||||
Total other expense, net | (418 | ) | (474 | ) | ||||
Earnings Before Taxes | 52,000 | 46,369 | ||||||
Income Tax Expense | (18,200 | ) | (16,229 | ) | ||||
Net Earnings | $ | 33,800 | $ | 30,140 | ||||
Earnings Per Share: | ||||||||
Basic | $ | 0.61 | $ | 0.55 | ||||
Diluted | $ | 0.59 | $ | 0.54 | ||||
Weighted Average Shares Used to Calculate Earnings Per Share: | ||||||||
Basic | 55,854 | 54,780 | ||||||
Diluted | 57,336 | 55,804 | ||||||
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Other Operational Information (in thousands)
Three Months Ended December 31 | ||||||
2003 | 2002 | |||||
Revenues by Major Component: | ||||||
Technical professional services | $ | 565,962 | $ | 524,366 | ||
Field services | 569,167 | 694,314 | ||||
Total | $ | 1,135,129 | $ | 1,218,680 | ||
Depreciation Before Taxes | $ | 8,620 | $ | 8,643 | ||
Capital Expenditures | $ | 7,605 | $ | 8,178 | ||
Selected Balance Sheet and Backlog Information (in thousands):
At December 31 | ||||||
2003 | 2002 | |||||
Balance Sheet Information: | ||||||
Cash and cash equivalents | $ | 160,592 | $ | 57,258 | ||
Net working capital | 407,311 | 270,845 | ||||
Total debt | 17,825 | 73,558 | ||||
Stockholders’ equity | 881,696 | 722,562 | ||||
Backlog Information: | ||||||
Technical professional services | $ | 3,509,200 | $ | 3,101,600 | ||
Field services | 3,635,700 | 3,574,300 | ||||
Total | $ | 7,144,900 | $ | 6,675,900 | ||