Exhibit 99.1
FOR IMMEDIATE RELEASE | November 3, 2004 |
For additional information contact:
John W. Prosser, Jr.
Executive Vice President, Finance and Administration
626.578.6803
Jacobs Engineering Group Inc. Reports Fiscal 2004 Earnings
PASADENA, CALIF. - Jacobs Engineering Group Inc. (NYSE: JEC) today announced net earnings of $129.0 million, or $2.25 per diluted share, on revenues of $4.6 billion for its fiscal year ended September 30, 2004. This compares to net earnings of $128.0 million, or $2.27 per diluted share, on revenues of $4.6 billion for fiscal 2003.
For the fourth quarter of fiscal 2004, Jacobs reported net earnings of $30.5 million, or $0.53 per diluted share, on revenues of $1.2 billion. This compares to net earnings of $33.5 million, or $0.59 per diluted share, on revenues of $1.1 billion for the fourth quarter of fiscal 2003.
Jacobs also announced backlog at September 30, 2004, totaling $7.5 billion, including a technical professional services component of $4.0 billion. This compares to total backlog and technical professional services backlog of $7.0 billion and $3.4 billion, respectively, at September 30, 2003.
Commenting on the results for the year, Jacobs Chairman and CEO Noel G. Watson stated, “Fiscal 2004 was a disappointing year for us with essentially flat profits on a year over year basis. Looking ahead, our backlog is at record levels, prospects and sales results are strong, and we look forward to renewed growth in 2005.”
In commenting on the earnings outlook for fiscal 2005, Chief Financial Officer John W. Prosser, Jr. stated, “For the coming year, we are maintaining our guidance in the range of $2.40 to $2.70 per share. Our guidance for the first quarter of fiscal 2005 ending December 31, 2004, is a range of $0.52 to $0.58 per share.”
Jacobs will host a conference call at 11:00 a.m. Eastern time on Thursday, November 4, 2004, which will be webcast live on the Internet on www.jacobs.com. The taped teleconference is accessible from any touch-tone phone and will be available 24 hours a day through November 11, 2004. The dial-in number for the audio replay is 719.457.0820, confirmation code 933605.
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Jacobs, with over 35,000 employees and revenues approaching $5.0 billion, provides technical, professional, and construction services globally.
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 September 30 | Twelve Months Ended September 30 | |||||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Revenues | $ | 1,215,686 | $ | 1,063,210 | $ | 4,594,235 | $ | 4,615,601 | ||||||||
Costs and Expenses: | ||||||||||||||||
Direct costs of contracts | (1,040,303 | ) | (905,344 | ) | (3,929,560 | ) | (3,989,714 | ) | ||||||||
Selling, general and administrative expenses | (128,951 | ) | (106,658 | ) | (466,409 | ) | (428,772 | ) | ||||||||
Operating Profit | 46,432 | 51,208 | 198,266 | 197,115 | ||||||||||||
Other Income (Expense): | ||||||||||||||||
Interest income | 948 | 573 | 3,065 | 1,356 | ||||||||||||
Interest expense | (1,344 | ) | (687 | ) | (3,565 | ) | (3,252 | ) | ||||||||
Miscellaneous income, net | 842 | 491 | 658 | 1,720 | ||||||||||||
Total other income (expense), net | 446 | 377 | 158 | (176 | ) | |||||||||||
Earnings Before Taxes | 46,878 | 51,585 | 198,424 | 196,939 | ||||||||||||
Income Tax Expense | (16,408 | ) | (18,055 | ) | (69,449 | ) | (68,929 | ) | ||||||||
Net Earnings | $ | 30,470 | $ | 33,530 | $ | 128,975 | $ | 128,010 | ||||||||
Earnings Per Share: | ||||||||||||||||
Basic | $ | 0.54 | $ | 0.60 | $ | 2.30 | $ | 2.32 | ||||||||
Diluted | 0.53 | 0.59 | 2.25 | 2.27 | ||||||||||||
Weighted Average Shares Used to Calculate Earnings Per Share: | ||||||||||||||||
Basic | 56,421 | 55,538 | 56,134 | 55,145 | ||||||||||||
Diluted | 57,476 | 56,981 | 57,433 | 56,392 | ||||||||||||
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Other Operational Information (in thousands)
Three Months Ended September 30 | Twelve Months Ended September 30 | |||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||
Revenues by Major Component: | ||||||||||||
Technical professional services | $ | 620,210 | $ | 514,114 | $ | 2,309,006 | $ | 2,120,632 | ||||
Field services | 595,476 | 549,096 | 2,285,229 | 2,494,969 | ||||||||
Total | $ | 1,215,686 | $ | 1,063,210 | $ | 4,594,235 | $ | 4,615,601 | ||||
Depreciation Before Taxes | $ | 8,712 | $ | 8,681 | $ | 34,154 | $ | 35,350 | ||||
Capital Expenditures | $ | 12,514 | $ | 5,012 | $ | 37,110 | $ | 25,804 | ||||
Selected Balance Sheet and Backlog Information (in thousands):
At September 30, | ||||||
2004 | 2003 | |||||
Balance Sheet Information: | ||||||
Cash and cash equivalents | $ | 100,075 | $ | 126,155 | ||
Total debt | 80,015 | 18,273 | ||||
Stockholders’ equity | 1,005,027 | 842,083 | ||||
Backlog Information: | ||||||
Technical professional services | $ | 3,989,000 | $ | 3,383,200 | ||
Field services | 3,463,000 | 3,657,800 | ||||
Total | $ | 7,452,000 | $ | 7,041,000 | ||
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