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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 23, 2007 |
For additional information contact:
John W. Prosser, Jr.
Executive Vice President, Finance and Administration
626.578.6803
Jacobs Engineering Group Inc. Reports Record Earnings
and Backlog for the Third Quarter of Fiscal 2007
PASADENA, CALIF.—Jacobs Engineering Group Inc. (NYSE:JEC) announced today its financial results for the third quarter of fiscal 2007 ended June 30, 2007.
Third Quarter Fiscal 2007 Highlights:
| | • | | Diluted EPS for the third quarter grew to $0.61, a 45.2% increase over the corresponding quarter last year |
| | • | | Diluted EPS for the nine months ended June 30, 2007 grew to $1.67, a 45.2% increase over the corresponding period last year |
| | • | | Net earnings for the third quarter rose to $74.8 million, a 47.6% increase over the corresponding quarter last year |
| | • | | Net earnings for the nine months ended June 30, 2007 rose to $203.2 million, a 47.1% increase over the corresponding period last year |
| | • | | Backlog increased $1.6 billion, or 17.0%, from June 30, 2006 to $11.0 billion |
Jacobs reported today record net earnings of $74.8 million, or $0.61 per diluted share, on revenues of $2.1 billion for its third quarter of fiscal 2007 ended June 30, 2007. This compares to net earnings of $50.6 million, or $0.42 per diluted share, on revenues of $1.9 billion for the same period last year.
For the nine months ended June 30, 2007, Jacobs reported net earnings of $203.2 million, or $1.67 per diluted share, on revenues of $6.2 billion. This compares to net earnings of $138.2 million, or $1.15 per diluted share, on revenues of $5.4 billion for the same period in fiscal 2006.
Jacobs also announced backlog totaling $11.0 billion at June 30, 2007, including a technical professional services component of $5.9 billion. This compares to total backlog and technical professional services backlog of $9.4 billion and $4.8 billion, respectively, at June 30, 2006.
Commenting on the results for the third quarter, Jacobs President and CEO Craig L. Martin stated, “Our third quarter performance was very good, whether compared to the same period last year or on a quarter-over-quarter basis. Backlog is up and our new business prospects remain strong. We see the outlook for fiscal year 2007 and beyond as positive.”
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Also commenting on the results for the third quarter and on the Company’s earnings outlook for the remainder of fiscal 2007, Jacobs Chief Financial Officer John W. Prosser, Jr. stated, “As a result of our continued strong growth in the third quarter, we are increasing our earnings per share guidance for fiscal 2007 to a range of $2.20 to $2.35.”
Jacobs is hosting a conference call at 11:00 a.m. Eastern time on Tuesday, July 24, 2007, which they are webcasting live on the Internet at www.jacobs.com. The taped teleconference is accessible from any touch-tone phone and will be available 24 hours a day through July 31, 2007. The dial-in number for the audio replay is 888.286.8010 (confirmation code 69812422).
Jacobs, with over 48,000 employees and revenues exceeding $8.0 billion, provides technical, professional, and construction services globally.
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 please refer to our 2006 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.
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Financial Highlights:
Results of Operations (in thousands, except per-share data):
| | | | | | | | | | | | | | | | |
| | | Three Months Ended June 30 | | | Nine Months Ended June 30 | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
Revenues | | $ | 2,083,689 | | | $ | 1,926,071 | | | $ | 6,193,901 | | | $ | 5,441,979 | |
Costs and Expenses: | | | | | | | | | | | | | | | | |
Direct costs of contracts | | | (1,767,073 | ) | | | (1,682,806 | ) | | | (5,315,011 | ) | | | (4,760,440 | ) |
Selling, general, and administrative expenses | | | (200,912 | ) | | | (163,694 | ) | | | (566,323 | ) | | | (465,115 | ) |
| | | | | | | | | | | | | | | | |
Operating Profit | | | 115,704 | | | | 79,571 | | | | 312,567 | | | | 216,424 | |
| | | | |
Other Income (Expense): | | | | | | | | | | | | | | | | |
Interest income | | | 4,590 | | | | 3,012 | | | | 14,123 | | | | 8,126 | |
Interest expense | | | (2,175 | ) | | | (1,951 | ) | | | (5,723 | ) | | | (5,338 | ) |
Miscellaneous expense, net | | | (1,256 | ) | | | (1,538 | ) | | | (3,340 | ) | | | (3,341 | ) |
| | | | | | | | | | | | | | | | |
Total other expense, net | | | 1,159 | | | | (477 | ) | | | 5,060 | | | | (553 | ) |
| | | | | | | | | | | | | | | | |
Earnings Before Taxes | | | 116,863 | | | | 79,094 | | | | 317,627 | | | | 215,871 | |
Income Tax Expense | | | (42,113 | ) | | | (28,462 | ) | | | (114,389 | ) | | | (77,714 | ) |
| | | | | | | | | | | | | | | | |
Net Earnings | | $ | 74,750 | | | $ | 50,632 | | | $ | 203,238 | | | $ | 138,157 | |
| | | | | | | | | | | | | | | | |
Earnings Per Share (“EPS”): | | | | | | | | | | | | | | | | |
Basic | | $ | 0.63 | | | $ | 0.43 | | | $ | 1.72 | | | $ | 1.19 | |
Diluted | | $ | 0.61 | | | $ | 0.42 | | | $ | 1.67 | | | $ | 1.15 | |
| | | | | | | | | | | | | | | | |
Weighted Average Shares Used to Calculate EPS: | | | | | | | | | | | | | | | | |
Basic | | | 118,961 | | | | 116,964 | | | | 118,258 | | | | 116,434 | |
Diluted | | | 122,501 | | | | 120,537 | | | | 121,912 | | | | 120,037 | |
| | | | | | | | | | | | | | | | |
EPS and weighted average shares outstanding for the three and nine months ended June 30, 2006 have been adjusted to reflect the 2-for-1 stock split on March 15, 2007.
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Other Operational Information (in thousands):
| | | | | | | | | | | | |
| | | Three Months Ended
June 30 | | Nine Months Ended June 30 |
| | | 2007 | | 2006 | | 2007 | | 2006 |
Revenues by Major Component: | | | | | | | | | | | | |
Technical professional services | | $ | 1,146,405 | | $ | 871,997 | | $ | 3,203,766 | | $ | 2,453,384 |
Field services | | | 937,283 | | | 1,054,074 | | | 2,990,135 | | | 2,988,595 |
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Total | | $ | 2,083,688 | | $ | 1,926,071 | | $ | 6,193,901 | | $ | 5,441,979 |
| | | | | | | | | | | | |
Depreciation (pre-tax) | | $ | 13,298 | | $ | 10,152 | | $ | 36,637 | | $ | 29,966 |
| | | | | | | | | | | | |
Capital Expenditures | | $ | 13,522 | | $ | 15,279 | | $ | 48,066 | | $ | 39,716 |
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Selected Balance Sheet and Backlog Information (in thousands):
| | | | | | |
| | | At June 30 |
| | | 2007 | | 2006 |
Balance Sheet Information: | | | | | | |
Cash and cash equivalents | | $ | 473,114 | | $ | 339,551 |
Working capital | | | 919,591 | | | 735,301 |
Total debt | | | 65,602 | | | 108,513 |
Stockholders’ equity | | | 1,674,579 | | | 1,330,837 |
| | | | | | |
Backlog Information: | | | | | | |
Technical professional services | | $ | 5,909,600 | | $ | 4,820,400 |
Field services | | | 5,118,100 | | | 4,601,100 |
| | | | | | |
Total | | $ | 11,027,700 | | $ | 9,421,500 |
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