Exhibit 99.1
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| 1111 South Arroyo Parkway 7084 | | Press Release |
| P.O. Box 7084 | |
| Pasadena, California 91105-7084 U.S.A. | | |
| 1.626.578.3500 Fax 1.626.578.6916 | | |
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| FOR IMMEDIATE RELEASE | | July 25, 2005 |
For additional information contact:
John W. Prosser, Jr.
Executive Vice President, Finance and Administration
626.578.6803
Jacobs Engineering Group Inc.
Financial Results for the Third Quarter of Fiscal 2005
PASADENA, CALIF. — Jacobs Engineering Group Inc. (NYSE: JEC) —
Third Quarter Highlights:
| | • | | Backlog increases 19.7% from June 30, 2004 to $8.4 billion |
| | • | | Revenues increase 29.4% from the third quarter of fiscal 2004 to $1.4 billion |
| | • | | Fiscal 2005 EPS guidance is $2.52 to $2.58 |
Jacobs announced today net earnings of $40.1 million, or $0.68 per diluted share, on revenues of $1.4 billion for the third quarter of fiscal 2005 ended June 30, 2005. This compares to net earnings of $29.9 million, or $0.52 per diluted share, on revenues of $1.1 billion for the third quarter of fiscal 2004.
Commenting on the results for the third quarter, Jacobs Chairman and CEO Noel G. Watson stated, “The third quarter of fiscal 2005 was a very good quarter for the Company. Revenues and earnings were up significantly from last year, driven by strength across a number of the markets in which our clients operate.”
For the nine months ended June 30, 2005, Jacobs reported net earnings of $108.2 million, or $1.85 per diluted share, on revenues of $4.1 billion. This compares to net earnings of $98.5 million, or $1.72 per diluted share, on revenues of $3.4 billion for the same period in fiscal 2004.
Jacobs also announced backlog at June 30, 2005, totaling $8.4 billion, including a technical professional services component of $4.2 billion. This compares to total backlog and technical professional services backlog of $7.0 billion and $3.6 billion, respectively, at June 30, 2004.
Jacobs Engineering Group Inc.
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Commenting on the Company’s earnings outlook for the fourth quarter of fiscal 2005, Jacobs Chief Financial Officer John W. Prosser, Jr. stated, “We are narrowing our earnings per share guidance for fiscal 2005 to a range of $2.52 to $2.58.”
Jacobs is hosting a conference call at 11:00 a.m. Eastern time on Tuesday, July 26, 2005, which they are webcasting live at www.jacobs.com. The taped teleconference is accessible from any touch-tone phone and will be available 24 hours a day through August 2, 2005. The dial-in number for the audio replay is 706.645.9291 (reference code 7618798).
Jacobs, with over 35,000 employees and revenues exceeding $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 2004 Annual Report on Form 10-K.
[ MORE ]
Jacobs Engineering Group Inc.
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Results of Operations (in thousands, except per-share data)
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| | | Three Months Ended June 30
| | | Nine Months Ended June 30
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| | | 2005
| | | 2004
| | | 2005
| | | 2004
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Revenues | | $ | 1,449,047 | | | $ | 1,119,536 | | | $ | 4,115,542 | | | $ | 3,378,549 | |
Costs and Expenses: | | | | | | | | | | | | | | | | |
Direct costs of contracts | | | (1,240,170 | ) | | | (960,418 | ) | | | (3,516,451 | ) | | | (2,889,257 | ) |
Selling, general and administrative expenses | | | (145,104 | ) | | | (112,487 | ) | | | (424,960 | ) | | | (337,458 | ) |
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Operating Profit | | | 63,773 | | | | 46,631 | | | | 174,131 | | | | 151,834 | |
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Other Income (Expense): | | | | | | | | | | | | | | | | |
Interest income | | | 1,114 | | | | 573 | | | | 2,901 | | | | 2,117 | |
Interest expense | | | (1,486 | ) | | | (649 | ) | | | (5,028 | ) | | | (2,221 | ) |
Miscellaneous expense, net | | | (825 | ) | | | (509 | ) | | | (2,878 | ) | | | (184 | ) |
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Total other expense, net | | | (1,197 | ) | | | (585 | ) | | | (5,005 | ) | | | (288 | ) |
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Earnings Before Taxes | | | 62,576 | | | | 46,046 | | | | 169,126 | | | | 151,546 | |
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Income Tax Expense | | | (22,526 | ) | | | (16,116 | ) | | | (60,886 | ) | | | (53,041 | ) |
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Net Earnings | | $ | 40,050 | | | $ | 29,930 | | | $ | 108,240 | | | $ | 98,505 | |
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Earnings Per Share: | | | | | | | | | | | | | | | | |
Basic | | $ | 0.70 | | | $ | 0.53 | | | $ | 1.90 | | | $ | 1.76 | |
Diluted | | | 0.68 | | | | 0.52 | | | | 1.85 | | | | 1.72 | |
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Weighted Average Shares Used to | | | | | | | | | | | | | | | | |
Calculate Earnings Per Share: | | | | | | | | | | | | | | | | |
Basic | | | 57,447 | | | | 56,274 | | | | 57,038 | | | | 56,037 | |
Diluted | | | 58,882 | | | | 57,555 | | | | 58,427 | | | | 57,414 | |
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Jacobs Engineering Group Inc.
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Other Operational Information (in thousands)
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| | | Three Months Ended June 30
| | Nine Months Ended June 30
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| | | 2005
| | 2004
| | 2005
| | 2004
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Revenues by Major Component: | | | | | | | | | | | | |
Technical professional services | | $ | 741,716 | | $ | 549,283 | | $ | 2,114,723 | | $ | 1,688,796 |
Field services | | | 707,331 | | | 570,253 | | | 2,000,818 | | | 1,689,753 |
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Total | | $ | 1,449,047 | | $ | 1,119,536 | | $ | 4,115,541 | | $ | 3,378,549 |
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Depreciation Before Taxes | | $ | 9,447 | | $ | 8,217 | | $ | 28,512 | | $ | 25,442 |
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Capital Expenditures | | $ | 10,607 | | $ | 8,975 | | $ | 33,490 | | $ | 24,596 |
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Selected Balance Sheet and Backlog Information (in thousands):
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| | | At June 30,
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| | | 2005
| | 2004
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Balance Sheet Information: | | | | | | |
Cash and cash equivalents | | $ | 201,740 | | $ | 173,302 |
Working capital | | | 542,780 | | | 473,659 |
Total debt | | | 114,573 | | | 26,903 |
Stockholders’ equity | | | 1,140,112 | | | 957,035 |
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Backlog Information(1): | | | | | | |
Technical professional services | | $ | 4,198,800 | | $ | 3,648,100 |
Field services | | | 4,204,500 | | | 3,374,500 |
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Total | | $ | 8,403,300 | | $ | 7,022,600 |
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| (1) | During the quarter ended June 30, 2005, in connection with our periodic review of the realization of capacity within our public sector task order type projects, we removed approximately $150 million of technical professional services from previously reported backlog. Additionally, we have reclassified approximately $250 million of previously reported backlog from technical professional services to field services. |
Jacobs Engineering Group Inc.
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